Taking On New Employees: A Guide for Employers

A good employee is one of a company’s most valuable assets. With the right knowledge and experience, that employee can increase the efficiency and the profitability of the company. That new employee can really benefit the company and can become a great addition to your team.

However, taking on a new employee can be a daunting experience for any employer if you do not have the right paperwork in place.

 

Preparing for a New Employee

As an employer, you have an obligation to gather various important from the new employee before their start date. 

Thanks to the development of technology, getting everything you need is a lot easier! You can create a standard new starter template or form can streamline this process, ensuring that everything is completed efficiently and accurately.

 

The Importance of a New Starter Form

A well-designed new starter form provides peace of mind for both you and your employee. It ensures that you have met your responsibilities as an employer and that the employee’s set-up is correct from the beginning.

 

Key Sections of a New Starter Form

Your new starter form should contain the following sections:

 

Personal Information

  • Full name
  • Date of birth
  • Full address including postcode
  • National insurance number
  • Employee start date

 

Employment Status

A tick box to confirm if they have another job

A tick box to confirm if they receive payments from state or private pension schemes

A tick box to confirm if they have received payments from another job, job seekers allowance, employment and support allowance or incapacity benefits since 6 April. It might be helpful if you include a note section so they employee can enter any amounts they have received

 

Loan Information

A tick box to confirm if they have a student or postgraduate loan with a section to indicate the plan type

 

Emergency Contact Details

  • Name
  • Relationship to the employee
  • Phone number

 

Declaration

A section for the new employee to sign and date, confirming that they have filled out the new starter declaration accurately and honestly

Here’s a new starter form you can download and use as a template.

 

Additional Information

When sending the new starter declaration, it would also be an opportune moment to ask the employee for the following documents:

  • Proof of ID, either a passport or driver’s licence
  • The P45 from their last employer
  • Any coding notices from HMRC since their last employment
  • Bank details for their wage payments
  • Proof of qualifications (if applicable)

 

Avoiding Financial and Legal Issues

Getting the right information is crucial. Incorrect information can lead to financial issues, such as paying incorrect PAYE or pension contributions, affecting your business’s progress and performance.

Employers are required to report and pay tax and NIC on an employee’s earnings. Errors can lead to miscalculated taxes, affecting both the employee’s income and the employer’s tax due. Correcting these mistakes can be time-consuming.

 

Additional Checks

In addition to receiving a completed and signed new starter declaration and the required documents from the employee, consider carrying out a DBS check or a Right to Work check to ensure the safety of clients and other employees.

By implementing these steps, you can make the process of hiring new employees smoother and more efficient. If you need assistance with adding an employee to your payroll, please get in touch with us.