If you're paying an employee for the first time, you'll need to set up payroll. You need to take the following steps:
- Register as an employer with HM Revenue and Customs (HMRC) and get a login for PAYE Online.
- Choose payroll software to record employee's details, calculate pay and deductions, and report to HMRC.
- Collect and keep records.
- Tell HMRC about your employees.
- Record pay, make deductions and report to HMRC on or before the first payday.
- Pay HMRC the tax and National Insurance you owe.
<p>If you're paying an employee for the first time, you'll need to set up payroll. You need to take the following steps:<br></p><ol><li><a href="https://www.gov.uk/register-employer" target="_blank">Register as an employer</a> with HM Revenue and Customs (HMRC) and get a login for <a href="https://www.gov.uk/paye-online" target="_blank">PAYE Online</a>.</li><li><a href="https://www.gov.uk/payroll-software" target="_blank">Choose payroll software</a> to record employee's details, calculate pay and deductions, and report to HMRC.</li><li><a href="https://www.gov.uk/paye-for-employers/keeping-records" target="_blank">Collect and keep records</a>.</li><li><a href="https://www.gov.uk/new-employee/" target="_blank">Tell HMRC about your employees</a>.</li><li><a href="https://www.gov.uk/running-payroll/" target="_blank">Record pay, make deductions and report to HMRC</a> on or before the first payday.</li><li><a href="https://www.gov.uk/running-payroll/paying-hmrc" target="_blank">Pay HMRC</a> the tax and National Insurance you owe.<br></li></ol>