Employers are required to use HMRC’s PAYE Online service to submit Real Time Information (RTI), access tax codes, get alerts when your payments are late or appeal to a penalty.
What is PAYE?
The Pay as You Earn (PAYE) system is a type of payroll method that employers use to pay income tax and national insurance contributions. It is up to the employer to send their employees’ tax to HMRC after deducting it from wages. Every employee is given a tax code to help HMRC understand how much tax should be deducted from your pay.
Introduced in 2013, RTI requires all employers to notify HMRC of their PAYE liability at the same time as they pay their employees.
P45s
A P45 is a document passed on to an employee upon termination of their employment. It provides details such as their tax code, their gross pay and the overall amount of tax that they have paid for that year to date. It is then given to a subsequent employer or benefit agency. Employers are obliged to provide this document to everyone leaving their business.
P60s
Taxpayers receive a P60 statement at the end of the tax year, detailing the total taxable income and deductions made by PAYE throughout the year. Employees must keep their P60 certificates safe because they provide proof that your tax has been paid.
Payslip Distribution
Within every company, payslips must be distributed to each employee after they have been paid, detailing a breakdown of their tax deductions so that they can keep track of what they have paid and what they may still owe.
What Can GEM Do?
Using HMRC software, GEM will calculate PAYE and National Insurance deductions on behalf of clients, for businesses with 10 employees or fewer, and ensure your RTI is submitted on time. In addition, GEM can produce P45s and P60s as required and can even distribute payslips. Throughout the process, GEM guarantees your complete satisfaction and can deal with any questions you may have in a fast and efficient manner.