Blog Post

UK Payroll Services for US and Global Teams

June 17, 2024

Written by:

Sophie THOMAS

COO & Co-founder

UK Payroll Services for US and Global Teams

If you're an overseas employer with employees in the UK, it's essential to work with experienced UK payroll providers who really know their stuff. This way, you can be sure that tax and National Insurance contributions are being correctly deducted from your employees' salaries.

 

Employers in the UK have multiple obligations that they must adhere to – here’s some key things that you need to know:

  • RTI - RTI, or 'Real Time Information', is a regulation requiring businesses to report payroll information to HMRC each time they process their employees' payments.

  • Workplace pension scheme - Employers must automatically enrol eligible employees into a workplace pension scheme and make contributions to their pension on each salary run.


  • Sick pay - Eligible employees who are too ill to work should receive a minimum of £116.75 per week as Statutory Sick Pay (SSP). The employer pays this for up to 28 weeks.


  • Holiday entitlement - Nearly everyone classed as a worker is legally entitled to 5.6 weeks of paid holiday per year, also known as statutory leave entitlement or annual leave. So employees who work a 5-day workweek must receive a minimum of 28 days of paid annual leave.


  • Benefits – Employee benefits, like a company car, private medical, gym membership etc., are a great way to attract talent but these must be declared to HMRC


  • Employer’s liability insurance - Employers' liability insurance can cover legal costs and compensation if an employee sues due to a work-related injury or illness. It's legally required for nearly all types of businesses to have this insurance.


  • Maternity/parental leave - Statutory Maternity Pay (SMP) or Statutory Shared Parental Pay (ShPP) is paid for up to 39 weeks and is paid out in the same manner as employee wages. Both tax and National Insurance will be deducted and employees must be checked for their eligibility before this is processed.


 

Here at OTG, we're pros at this. We help businesses from all over the world get to grips with the UK's complex PAYE system. This means we can take care of the whole process for you and offer a complete payroll solution. Our goal is to make the payroll process a breeze, so you can put your energy into running your business.

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