Employer/Employee

Employer

I`m about to employ my first employee!!
What are the steps I need to follow to get everything above board taxwise??
He was previously self-employed if that makes any difference.

maddogcollins

Assuming you are already registered as self employed/ a company you need to fill out a form TR1/TR2 (Section D is for registering as an employer).

Revenue have a good amount of information on this. Hope you find this helpful:

http://www.revenue.ie/en/business/paye/guide/index.html

mickbyrne

This is a big step and it is where the headaches can begin.

Firstly I would recommend an employment contract. The small firms assocciation and other provide a template version, but I would recommend going to a solicitor.

Following this you need to register as an employer with the tax office. (Your accountant can do all this for you) Form PREMreg downloadable from the revenue website needs to be submitted to your local tax office.

As your new employee has been previously self employed he will not have a P45. A form P46 can be submitted in this case. When you have your employer reg sorted out, it may be as easy for him to contact the PAYE revenue helpline and tell them about his new employment. They will process it over the phone and the credits etc will be sent out quicker.

Following this you need to calculate their taxes etc. I would recommend a payroll package for this. Collsoft (preferred) Thesaurus or Sage are commonplace.

Regards,
Michael
www.perspective.ie