A first employee payroll checklist helps you turn an exciting hiring milestone into a well-run process. Before the first payday, make sure you understand your PAYE, pension and record-keeping responsibilities so your new starter is paid correctly and on time.
First employee payroll checklist: set up PAYE and pensions
Register as an employer with HMRC before you pay your first employee. Gather the information needed from the new starter, including their full name, address, date of birth, National Insurance number and starter declaration. Choose payroll software that can calculate tax and National Insurance, create payslips and submit the required information to HMRC.
Confirm the employee’s pay, payment date and working arrangements in writing. A clear employment contract helps set expectations for salary, hours, holiday and notice periods from day one.
Check workplace pension duties
Automatic enrolment is an essential part of a first employee payroll checklist. You must assess staff for eligibility, enrol eligible workers, make the correct pension contributions and keep records. Some employees may not qualify to be enrolled straight away, but your duties around assessment, communications and re-assessment can still apply.
First employee payroll checklist: run payroll accurately
Create a repeatable process for each pay run. Check approved hours, overtime, bonuses, deductions and any salary changes before payroll is finalised. Review PAYE and National Insurance calculations, pension contributions and the payment total, then issue payslips and make the payment on the agreed date.
Keep payroll records organised and retain the information required for statutory pay, year-end reporting and leavers. If an employee’s circumstances change, update their details promptly and make sure the next payroll reflects the change.
Get support before the first payday
Setting up payroll correctly at the start saves time and reduces the risk of missed deadlines. AA&R can help with payroll setup, routine processing, pension duties and payroll reporting, giving you more time to focus on welcoming your first employee.