Running The Club’s Payroll
What Should the Club Deduct from the Employees Pay?
From the earlier information provided about Payroll software options, the club would have selected a system which is user friendly to them. This would have been based on how frequent the club operates the payroll system, how many employees the club has, amongst others.
As you have picked a user-friendly payroll software for your club it should be easy for the club to make the following deductions. Make sure you are considering the following amongst the others which the clubs payroll system outlines:
The payroll software used will work out the tax, national insurance and student loan repayments (where necessary) to deduct from the worker’s net pay. This is a lot of information here, but the clubs payroll system will make this a lot simpler and hence why it is important the system chosen is easy for you to use. Give it a go.
Income Tax PAYE Deduction:
- This is often referred to as tax as this is the term the public are most familiar with
- Most tax is paid through PAYE, the system used to take contributions before salary is paid
- More information on Income Tax can be found HERE.
National Insurance Contributions:
- This is paid to qualify people for certain benefits, such as state pension
- This is usually paid through PAYE
- More information on National Insurance can be found HERE
- The club may find out that deductions are to be made through the worker’s P45, the Starter Checklist, or from HMRC for SL1
- For detailed guidance on making student loan deductions, please visit HERE
We suggest you Watch the short HMRC video ‘What are Gross and Net Pay?’ (HMRC YouTube channel) HERE.
A new law means all employers will have to provide and pay into a workplace pension scheme for their employees – this is called ‘automatic enrolment’.
Make pension deductions after you take off National Insurance. You normally make pension deductions before you take off tax – check with your workplace pension provider.
You’ll also need to pay any employer contribution into your employee’s pension.
Even if your worker does not qualify for pension deductions, the club will have to be registered to report pensions.
NEST is a workplace pension scheme and more about this option can be found HERE.