CIC Association

Serving Community Enterprise

Really new to all of this so sorry if this all seems obvious.
How do i set up paying the directors and how do i set wages. Is it better to set wages low for the first year and the raise them or have the company owe directors/ employees money.

How do I record what wages I am setting, is there a policy i should be writing? 

Should i pay through PAYE will that system take care of things like NI, tax, sic pay etc?

If the directors are also employees working on 0 hour contracts do i need several documents for the different roles each person may hold, and therefore different levels of NI, tax etc?

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Replies to This Discussion

Brendan
I would say that you need to set salaries at a reasonable level for the work to be performed. Setting them artificially low now simply stores up problems for later. Equally, saddling the balance sheet with debt is not good for financial health. It’s a tricky balance.
Yes you should record it, you will need contracts as a minimum. Not sure people would like it publically available in some sort of policy.
If the Directors are employees then yes pay through PAYE. If they are (genuinely) self-employed then you don’t need to.
If they are also performing roles for the CIC (zero hours contracts) then the chances are that they are employed and everything should be through PAYE. This would all be one variable salary - one payroll.
Hope that helps.

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