You pay employees' tax, National Insurance contributions (NICs) and any student loan repayments due by setting up a PAYE (Pay As You Earn) system.
It's worth explaining National Insurance payments in a bit more detail here, so you can understand what's going on when you come to work them out:
What happens about sick pay?
If an employee is off sick for more than four days in a row, you might have to pay them Statutory Sick Pay (SSP). Find out more in this guide from HMRC.
Smarta Tax Services - the perfect solution for start-ups or Sole Traders in need of tax and accounting support. Get a personal experience with a dedicated Accountant that will ensure you keep track of day to day operations of your business, and you've completed all areas required to comply with HMRC and Companies House. Our trusted accountancy software allows transparency and you'll have 24/7 access online, so you can keep track of your business performance.