As your business grows there will come a point when you will need help in order to maintain your level of client service. Recruiting and working with someone new to the business will be a big change for the business owner so that is why it is usual for the new employer to work with either a family member or someone who is known to them already. But irrespective of how you know your new member of staff you need to bear in mind the following:
The price of people - if you are considering employing staff on a Pay As You Earn basis (PAYE) bear in mind that you will be taking on a whole host of responsibilities. Generally, as a rule, you can estimate the cost of employing a member of staff by taking their salary and doubling it! This accounts for holiday pay, sick pay, Bank Holidays, Christmas, National Insurance Contributions, accountancy fees etc.
Stakeholder Pensions - Stakeholder pensions where introduced in 2001. At present these new regulations only affect businesses which employ 5 members of staff or more.
Employers Liability Insurance. - Once one employee is taken on it is required by law that the company takes out Employers Liability Insurance. This class of insurance is often packaged with Public Liability Insurance.
Subcontracting.- This is one way to alleviate most of the responsibilities of an employer, but there are still some legal responsibilities to be aware of, for example IR35 legislation has recently caused an impact on this area of employment / self- employment.
So if you are not sure whether your business needs extra help and whether that help should be an employee or not then please give us a call at Dare Accountancy and we can help.
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