Handling pay and wages - Step 3: Paying new staff

To help prevent any problems with a new worker's first payment of wages, you should:

  • Ensure they are aware of payment dates and method of payment.
  • Check they understand their pay rate, especially if it varies.
  • Check all necessary information is provided and correct. For example, bank details.
  • Ensure any requirements for income tax and National Insurance are followed correctly. Workers must pay tax on wages through a pay system called 'Pay As You Earn' (PAYE). Employers or their payroll providers use this system to make these deductions from wages before they are paid.
  • Remember, within two months of an employee starting work you must provide them with a Written Statement of Terms and Conditions of Employment.

For step 4 in the handling pay and wages series click here

Source: © ACAS

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