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 where introduced 06/01/2001. 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. The prescribed legal minimum is currently £10m of cover against bodily injury, illness or disease sustained in the course of employment. This class of insurance is often packaged with Public Liability Insurance and all the big insurance companies can offer this cover.
This is one way to alleviate most of the responsibilities of an employer, but there are still some legal responsibilities to be aware of.
IR35 legislation has recently caused an impact on this area of employment / self- employment.
Whether you are a contractor or if you are starting a Personal Service Company (PSC), it is wise to find out how it could affect you, we can help offer advice and guide you through the different ways of employment.