Hiring a paid carer for yourself or a relative is a great way to ensure that you have the right person for the job, as well as the flexibility to determine what tasks need doing, at what times and how much it will cost. We have a detailed guide on how to hire a paid carer on the website, and one of those points is to know your responsibilities as an employer, especially when it comes to arranging payment and making the necessary deductions for tax and National Insurance.
It is this financial side of things that can put many people off of hiring a paid carer, choosing to use an agency instead so that the agency is responsible for payment and deductions. This is a good solution for many people, but it does mean that you lose some control over the care that you receive – you might find the carers that are sent have a limited time before their next appointment or that it’s not the same person every time.
Using a payroll service can be a good solution. This means that you can still be an employer with all the benefits that come with it, but they will do all of the calculations and liaising with HMRC on your behalf so you don’t have to worry about money matters.
How does a payroll service work?
A payroll service will help you to register as an employer with HMRC and will then act on your behalf to ensure that the relevant payments and deductions are made. You will supply details of your paid carer, including their personal information, the amount you are going to pay them, and how often you are going to pay them. At the end of the pay period, be that a week, four weeks or a month, you supply a timesheet to the payroll company which details the hours that your employee has worked (and any holiday/sickness taken). The payroll service will calculate how much you owe to the paid carer and how much is owed to HMRC, then they will issue a pay slip for your employee with all the details on. All you have to do is transfer the money. The payroll service will also supply P60s and P45s as needed.
What does it cost?
Of course, using a payroll service costs money, so you need to offset the amount against the benefits that it brings to you in terms of reduced administration. There are various payroll companies out there, and You’re the Boss offers a dedicated payroll service for employers of paid carers. It costs £10 to set up a new payroll per employee, and then £8 per payslip issued. As a guide, if you had one paid carer in your employ and you paid them on a monthly basis, then it would cost you a total of £127.20 for a year. You can find out more about costs and our payroll service here.
If you want to know more about this topic, then please feel free to get in touch with us using the Contact form.