New employee

How to add a new employee to your FreeAgent payroll, enter payroll information and run a simple gross-to-net payroll for that person.

This article is only for payroll years prior to 2013/14. FreeAgent now uses a new payroll supporting RTI submissions to HMRC. Please see our 2013/14 payroll article, or guide to setting up payroll to get started.

To add a new employee to your payroll, you must first set them up as a user. Once you've done that, go to Payroll from the My Money drop-down.

my_money_payroll

Choose the new user from the drop-down menu, making sure you have the right employee and tax year.

Select 'Set Up Payroll'.

set_up_payroll

Enter the employee's details, including tax code, start date, and whether or not this person is a director for payroll (National Insurance) purposes. Please note, FreeAgent will set the National Insurance as Director or Employee here by default, depending on how you have set up the user, but you can edit that at the payslip level, see below.

Select 'Create Payroll'.

enter_payroll_info

My employee joined part way through the tax year. Where do I put his/her previous employment details?

Select 'Edit Self Assessment Details' for the employee and enter their Employment History information.

edit_sa_details

It's important to put in the previous employer's name as well as the income and tax in this employment.

employment_history

Viewing a payslip

Choosing a month's line on the payroll screen brings up the payslip for that month.

click_payslip

You can edit the month's information, save the payslip for printing as a .pdf, or even delete the payslip.

edit_pdf_delete_payslip

Editing a payslip

Selecting 'Edit' brings up a window that lets you make the following changes:

You can add additional payments such as overtime or statutory payments.

overtime_etc

You can include employee's and employer's pension contributions.

And you can opt to manually edit the PAYE and NI that FreeAgent calculates, or change the NI calculation basis from employee to director or vice versa.

manual_paye

Once you've finished editing the payslip, save your changes.

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