When you take on a new employee, you need to create an employee record for them in your software.

Before you do this, there are some important points you need to consider.

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Before you add a new employee

There are a few things to consider. Click each option below to learn more:

• Workplace pensions >

  When you set up a new employee, it's important that you handle their pension scheme correctly.

  • If you subscribe to the Pensions Module, you mustn't assign a pension scheme to the employee's record. Instead, simply run The Pension Assessment in each period you process. The Pensions Assessment automatically assigns your pension scheme when the employee becomes eligible for automatic enrolment
  • Using the Pensions Module, you can also send automatic enrolment pension letters to your employees. Find out how to automatically send the right letter at the right time How do I send pension correspondence? >
  • If you don't subscribe to the Pensions Module, you should assign the scheme in the employee record manually when the employee becomes eligible for automatic enrolment
  • If your employee is enrolled into your workplace pension scheme as part of their contract of employment, you can assign the scheme manually  
• RTI payroll ID >

  The RTI Payroll ID is a unique identifier that your software automatically creates when you add a new employee record. Your software includes the identifier on each FPS to help HMRC identify the employee. Don't amend this unless you've been advised to change it by Sage or HMRC.

• Starter form P45/P46 >

  Your employee should provide you with Parts 2 and 3 of their P45, from their previous employer. If your new employee can't provide a P45, you must ask them to complete a P46 starter checklist. When you receive the P46, enter the details from this form into your software.

  In some cases, you set an employee up with a P46 and process their pay, then the employee hands in their P45. If HMRC have already sent you a new tax code, you mustn't action all of the P45. If this happens HMRC require that you only action student loan details, if applicable, from the P45. 

• Right to work check >

  Complete a right to work check on new employees and keep a record of this. You can record your Right to work checks in the employee record.

• Gender selection >

  Due to HMRC requirements, you must select a gender of male or female. If you'd like to find out more, visit our can I set my employee's title to Mx? guide.

 NOTE: Is your new employee receiving a company car? If so, visit our P46 (Car) forms, cars and fuel guide to check if you'll need to submit a P46(Car) to HMRC. 

You can now add a new employee.