A good way of recording the wage details of your employees is by using a wage book. Recording details of employees’ pay on cheque stubs is not sufficient.
The following are some helpful hints when using the wage book:
- Use a separate wage book for each tax year and give yourself space.
- As soon as an employee starts working for you, or when you are writing up the wage book for beginning of each tax year, use a fresh page in your wage book for each employee. Keep a separate page for each employee, even if he or she was only employed for one day.
- Make sure you get the employee’s details such as his or her ID and NIS number, and tax code.
- Summarize the details for each employee at the end of each PAYE deduction payment period (15th of each month) in your wage book. This will be monthly.
Keep a summary sheet (at the back of the book) which shows the total of each deduction period of:
- Gross wages
- PAYE deductions
- NIC deductions
- Any other deductions
This information will help you fill-in each TD5 for each employee and your end of year TD6 reconciliation.