Step 2: Add new employees and make permanent changes
Step by step guide to running a payroll
If there are no new employees to add or permanent changes to make, skip this step and go to Step 3: Add employees who have opted in or joined the pension scheme.
Before running a payroll for the first time, all employees due to be paid must have been added.
For future payrolls, if permanent changes are needed for current employees, such as changes to address, salary, hourly rate, or hours worked, make these changes directly on the employee record. For changes that are only needed for a few periods, make temporary changes instead.
Add new employees
New employee details can be added by completing each section manually or by using the wizard. If adding employees for the first time as part of set up, their details can be imported from a previous payroll system.
Employees who do not provide a P45 A P45 is a document issued by an employer to an employee when they leave a job. It shows details about the's employment, including their start and end dates, how much they were paid, and how much tax they paid during their employment. The is made up of four parts: Part 1 is sent to HM Revenue & Customs (HMRC), Part 1A is kept by the employer, and Parts 2 and 3 are to the employee as a record of their earnings and tax paid. The P45 is an important document that employees need to give to their new employer when they start a new job as it provides information about their tax code and previous earnings, which helps the employer calculate their tax and National Insurance contributions. before the first pay run must complete a starter checklist External website PDF . A starter checklist is based on the older P46 A P46 has been replaced by the New Starter Declarations. It is still commonly called a P46. form, and the two names are sometimes used interchangeably (a P46 Car is a different, unrelated form).
- Go to Employees.
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Select Add an Employee or if one employee is already set up, select + Add New.
To enter all the details manually, select or create without the wizard on Add an Employee.
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Enter the relevant details.
The Payroll Code is automatically set to a default standard number. If required, change it to match a previous payroll or HR system code your company uses.
- To save, select Create Employee.
- Select the relevant Declaration.
- Enter any other relevant details.
- To save, select Update.
- The employee record displays, with tabs to enter information for different things, such as pay options, leave, pensions, and so on. Work through the tabs and enter and select any relevant details.
- To save further changes, select Update Employee.
GOV.UK guidance: Employing staff for the first time External website , and Tell HMRC about a new employee External website .
Step 3: Add employees who have opted in or joined the pension scheme.