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Help for small firms

Help for small firms: Handling pay and wages

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 pay roll providers use this system to make these deductions from wages before they are paid. For more information, go to GOV.UK - Income Tax.

Remember, within two months of an employee starting work you must provide them with a Written Statement of Terms and Conditions of Employment. For more information, go to Written Statement - terms and conditions of employment.

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