Frequently Asked Questions
Q: As an employer, what are my responsibilities?A: A number of responsibilities are deemed as essential when employing someone as a carer.
- Employees should, within two months from the start of their employment, be given a contract of employment.
- A payslip must be issued each time you pay your employee
- As an employer, you must ensure that your employees are paid at least the National Minimum Wage. You can of course pay above that amount depending on your available funding.
- It is essential to set up a PAYE Scheme with HMRC ensuring that the correct deductions for Tax and National Insurance are made from your employees’ Gross Pay and that these deductions along with any employers National Insurance contributions are paid on time and in full to HMRC. In addition, you must notify HMRC if your employees didn’t work during any tax periods to avoid fines or penalties for Real Time Reporting.
- All employers by law must have employer’s liability insurance cover of at least £5 million.
- An employer will need a basic knowledge of employment lawand statutory entitlements and have a good understanding of these.
DD Payroll can help with all of the above – and much more!
Q: Can I employ a carer who is self-employed?
A: It is quite possible that a carer acting in a self-employed capacity would not meet HMRC’s requirements for this situation. However, there are exceptions.
Q: What is best, a Net or Gross wage agreement?
A: The Gross wage is the amount of pay generated before tax and National Insurance contributions are deducted. The Net wage will be the amount your employee actually receives after Tax and National Insurance has been deducted.
We at DD Payroll would strongly recommend that employers make a Gross pay agreement with their employees to protect and manage the total employment costs.
Q: How do I calculate how much holiday my carer is entitled to?
A: A minimum of 5.6 weeks paid holiday per year is a statutory right for all employees in the UK.
Employees who work part-time are entitled to 5.6 weeks pro-rata.
For further assistance with calculating holiday entitlement, please refer to our holiday entitlement page where examples of calculations for part-time and temporary workers can be found
Q: How do I calculate their holiday entitlement for employees who work variable hours?
A: Please refer to our holiday entitlement page where examples of calculations for employees who work variable hours can be found.
In all cases, DD Payroll can assist you with calculating holiday entitlement for your employees.
Q: What do I do if my employee becomes pregnant?
A: Employers have a duty to administer Statutory Maternity Pay for their employees who become pregnant if they are eligible.
For further assistance with Statutory Maternity Pay entitlement, please refer to our Statutory Maternity Pay page.
DD Payroll will ensure that everything will proceed as smoothly as possible. We can submit a claim to HMRC on your behalf to recoup the monies paid to your employee for SMP to reimburse your funded account.
Q: Can my employee get sick pay if they are too ill to work?
A: An employee who earns above the Lower Earnings Limit (LEL) and has been off work for four or more days continuously is entitled to Statuary Sick Pay (SSP)
DD Payroll can submit a claim to HMRC on your behalf to recoup some or all the monies paid to your employee for SMP to reimburse your funded account if the amount is not offset against Tax and National insurance for your payroll.
Q: How can I find out more about Tax?
A: follow this link to HMRC website which will be able to answer all your questions about tax.