# How to set up a new off-payroll worker on payroll?

Off payroll workers should be added to the payroll like any other new starter.
If you are a "deemed employer" / "fee payer", you must follow the steps below to
add a new off-payroll worker.



Please follow the Road Map below:-



Step 1:Click on Employee big button on the Tasking Zone at the top -> Select the
menu "Add New Employee".


Step 2:Select "Yes" from the "Off-Payroll Worker" drop-down.

 * By selecting "Yes", the RTI Data Item #208 "Off-Payroll Worker subject to the
   rules" flag / marker / indicator for deemed employees will be set for each
   payroll run and subsequently included in the Full Payment Submission ( FPS )
   on a submission by submission basis to be reported to HMRC.
   

 * Please note that this Off-Payroll Worker Indicator should only be used by the
   "deemed employer" / "fee payer".
   

 * The off-payroll worker's own intermediary ( usually a limited company or
   Personal Service Company - PSC or partnership ) should not use this
   Indicator. Intermediaries leave it to default setting - "No".
   
   

 * Deemed Employers can use HMRC's Check Employment Status for Tax ( CEST ) tool
   when deciding whether the off-payroll working rules apply to an engagement or
   for assessing the employment status of the workers.

Step 3:Fill in other relevant / mandatory information.


Step 4:Click on "Continue".


Step 5:Choose option "Enter Starter Checklist Details" in the NI & Tax Details
section and click on "Continue".


Step 6:Select "Statement C" from the "Employee Selected Statement" drop-down.

 * Off-payroll workers will be primarily employed by the Intermediaries. Hence
   "Statement C" should be selected.
   
   

 * Selecting "Statement C" will set the Tax Code to "BR".
   
   

 * If the off-payroll worker does not return the Starter Checklist, "0T" tax
   code operated on week 1 / month 1 basis would apply. HMRC can then issue
   another tax code if required.
   
   

 * Devolved powers that affect tax codes are applied as normal - for e.g. Welsh
   or Scottish rates of income tax.

Step 7:Select option "No" from the "Student Loan Deduction" & "Postgraduate
Loan" drop-downs.

 * "Deemed Employer" / "Fee Payer" is not required to make or report "Student
   Loan" / "Postgraduate Loan Deductions" on behalf of off-payroll workers.
   
   

 * The student loan / postgraduate loan repayments are expected to be made
   through Self-Assessment.

Step 8:Click on "Continue".


Step 9:In the Pension section, select option "No" from the "Subject to Auto
Enrolment Pension" drop-down.

 * Off-payroll workers are not employees of the "fee payer" / "deemed employer".
   Hence they are not automatically enrolled into a pension.
   

 * They are also not entitled to statutory payments.
   
   

 * The worker's entitlement to statutory payments comes through their employment
   with their intermediary. They can also contribute to a pension as an employee
   of their intermediary.

 * Workers providing services through intermediaries are also not entitled to
   employment rights from the "fee payer" / "deemed employer", such as holiday
   pay.

Step 10:Click on "Continue".


Step 11:Complete the "Optional Details" & "Upload Photo" sections and Click on
"Finish" to add the new "Off-payroll Worker".


('Employee's the button positioned in the tasking zone menu at the top. It is
the second button from the left)