Last update: Wednesday, June 23, 2021
Your company is all set. Let's go and add some employees! 👨💼👩💼
Navigate to My Employees > Add an employee to add a new employee into PayFit. There are 5 stages to adding each employee and each stage is broken down in the table below, but note that not all stages apply to every employee.
We highly recommend this option:
Save time, your employee can complete the information themselves - this will e-mail a form to your employee that they can fill out. Once they have filled out the form, you will then need to input their contract details and previous payroll information.
We highly recommend that you prepare the following documents:
1. Previous month's payslips
2. Employees' P45's (dated 06/04/2020 or later) - only if available
3. Employee records - contract information / personal information
After you finish the first step, which is to add personal information, your employee will be set to in progress. Make sure that complete the next steps in order to finish setting up your employee.
Once the yellow In progress sign is gone, that means your employee is fully set on PayFit.
You will need to ask every new starter to fill in a starter declaration to know their tax code. https://www.gov.uk/government/publications/paye-starter-checklist
If they answer:
A - their tax code is 1257L
B - you will need to ask them for a P45, and it should contain their tax code and payroll figures. Make sure that this P45 is dated in the current tax year. If they don't have a P45, their tax code is 1257L M1
C - their tax code is BR
You can usually find these on the payslip (top-left side) but if you are running payroll for the first time, simply assign a number to your employee. Remember that 2 employees cannot have the same HMRC RTI ID even if one has already left the company.
For a lot of companies, the payroll ID is the same as the HMRC RTI ID, but please double-check to confirm.
The standard process for employees’ with no P45, but answered B in their starter declaration is to give them a 1250L M1 tax code and wait for the HMRC to give them an updated tax code based on their records. For more information:
The YTD page looks so complicated. How do I make sure I'm inputting the right numbers in the right places?
Here are some tips to help you out. First, you'll need to gather your most up-to-date (from the previous month) payslips, P11's, payroll reports - as much of the payroll documents that you can gather.
Taxable income and tax paid are the most important fields and you can normally find this in your payslips. These will affect your taxes. As long as you have these 2, your payslips should calculate properly.
Some of the fields are optional / situational. If you don't have these, please don't panic.
If you have limited data, please focus on taxable income (income subject to tax, tax paid, employee and employer national insurance, pensions and student loans if applicable)
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