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Payroll, pensions, and people

Understand what changes when you hire, run payroll, and take on employer responsibilities. This section covers payroll setup, workplace pensions, and the practical questions that often come up once a business starts paying staff or directors.

Getting started with payroll

Do I need to register for payroll before I pay someone for the first time?

Yes, in most cases you need to register as an employer before running payroll. That allows you to report pay, tax, and National Insurance to HMRC properly. It is best to get this in place before the first payment, rather than try to correct things afterwards.

Can I put one employee on payroll before the rest of the team is ready to join?

Yes, payroll can usually start with just one employee. You do not need to wait until the rest of the team is in place. The key is to make sure the person is set up correctly, with the right pay details, reporting, and records from the start.

What happens if I hire someone before my payroll setup is fully in place?

You should sort the payroll setup as soon as possible. Leaving it too late can make reporting harder and increase the risk of errors around pay, tax, and National Insurance. If someone has already started, it is important to get everything aligned properly before payroll falls behind.

Employer responsibilities

Does Sleek handle workplace pensions?

Yes. As part of our managed payroll service, we handle your Auto-enrolment obligations:

  • Assessment: We identify which employees must be enrolled (generally those aged 22+ earning over £10,000 per year).
  • Contributions: We calculate the legal minimum contributions (currently 8% total, with at least 3% from the employer).

Filing: we submit the contribution data to your pension provider (e.g., Nest or Smart Pension) every pay run.

Do I need to offer a workplace pension from the moment I hire my first employee?

Often, workplace pension duties start as soon as you become an employer, but what you need to do depends on the employee’s age and earnings. Even if someone is not automatically enrolled, you may still have duties. It is worth checking early so nothing is missed.

Can directors and employees be treated differently for payroll and pension purposes?

Yes, directors and employees can be treated differently in some payroll and pension situations. However, the exact position depends on how they are being paid and what role they hold in the business. It is important to handle this correctly so payroll reporting and pension duties stay accurate.

Running payroll in practice

If I only run payroll for one employee or a director, what records do I still need to keep?

Even if payroll is only for one person, you still need clear records of pay, deductions, reporting to HMRC, and any pension activity where relevant. Small payroll setups are still payroll setups, so keeping things organised from the start helps avoid mistakes and makes future compliance much easier.

What happens if I make a mistake in payroll after staff have already been paid?

Payroll mistakes can usually be corrected, but they should be dealt with promptly. The right fix depends on what went wrong, whether it affected tax or National Insurance, and whether HMRC has already been updated. Acting quickly helps reduce confusion for both the business and the employee.

Does Sleek provide business insurance?

Sleek focuses on accounting, tax, payroll, and compliance support rather than selling insurance directly. However, we can help point businesses in the right direction by flagging the types of cover that are commonly relevant, such as employer’s liability and exercise professional indemnity by pointing you towards providers that suit your specific business needs.
Hiring staff and not sure what payroll setup you need?

We can help you get payroll and pension duties in place properly from the start.

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