Your business is getting bigger and bigger, and you got to a level where you can’t handle the demand on your own? Time to start employing!
This is what you need to do:
- You need to register with the Income Tax Office under the ETI Scheme. The best way to do this is by telephone on 01481 724711. Make sure you have the relevant tax reference numbers in hand (if sole trader you will need your personal tax number, if a company you will need the company’s tax number/ or incorporation name and date if recently incorporated). Don’t forget to ask the Returns Creator software (it is free). You should be receiving a new employer package from the Income Tax Office soon after.
- You will also need to register with the Social Security Department. The best way to do this is to download, print out and fill in the form and send it back to the Department. The form can be found under this link http://www.gov.gg/ccm/navigation/social-security/ssd-online-forms/ on the right hand side click on Employers Schedule application.pdf. Then the Social Security will provide you with the relevant information and your employers reference number.
From the 1 January 2009 all employers have to provide their employees with a payslip every time they are paid. The payslip needs to include the following information:
- Employer’s name, address, Tax reference and Social Security reference
- The employee’s name, address, Tax reference, Social Security reference, Gross wage, Benefits in kind, Deductions (Tax and Social Security), Net wage. And year to date figures for Gross wages, Tax deducted and Social Security deducted.
If you need help with setting up a payslip and basic payroll system, please phone Viola on 07781 447693.
About valuing Benefits in Kind the Tax Office has issued a helping guide which you can find here: http://www.gov.gg/ccm/treasury-and-resources/income-tax/website/publications/explanatory-guides/benefits-in-kind-statements-of-practice.en However if you need help, please phone Viola on 07781 447693 and she will be able to help you work out a good procedure and explain the principles.
You will need to fill in the figures in Returns Creator for every time you pay (be it weekly or monthly), and submit your returns to the Authorities every quarter. The quarters end in March, June, September and December, and the returns have to be submitted and paid by the 15th of the following month (e.g. March quarter needs submission and payment by the 15th of April). Not keeping to the deadlines will result in penalties and surcharges.
If you need help with getting started on the Returns Creator, please phone Viola on 07781 447693. She will be able to train you to use the software and explain all the background details.