Adding employees to AccBooks AI payroll

Overview

Before you can run payroll for a new employee, you need to add them to AccBooks and enter their details. This article covers the full process from offer to first payslip.

Required information

Before you start, gather the following from your new employee:

• Full legal name
• National Insurance number
• Date of birth
• Home address
• Start date
• Whether they have a P45 from their previous employer (or a starter declaration if not)
• Bank account details for payment
• Any student loan or postgraduate loan plan

Adding an employee

1. Go to Payroll → Employees → Add employee.
2. Enter the employee’s personal details: name, NI number, date of birth, address, start date.
3. Under Employment details, enter:
   • Job title
   • Department (optional — useful for cost reporting)
   • Employment type: Full-time, Part-time, or Zero hours
   • PAYE scheme (if you run multiple payroll schemes)

Setting up pay

Under the Pay tab:

• Pay frequency: Weekly, fortnightly, four-weekly, or monthly.
• Salary or hourly rate: Enter the gross amount.
• Pay method: BACS, CHAPS, or cheque.
• Bank details: Account number and sort code for BACS payment.

Tax code and starter declaration

If the employee has a P45

Enter the tax code and previous pay/tax figures from the P45 under Tax & NI → P45 details. AccBooks uses these to calculate tax correctly for the current year.

If no P45 (starter declaration)

Ask the employee to complete the starter declaration:

• Statement A — this is their first job since 6 April and they haven’t claimed Jobseeker’s Allowance, Employment and Support Allowance or other state benefits.
• Statement B — this is now their only job but they have had another job or received state benefits since 6 April.
• Statement C — they have another job or receive a pension.

Based on their statement, AccBooks assigns the appropriate emergency tax code:

• Statement A → 1257L (cumulative)
• Statement B → 1257L W1/M1 (non-cumulative)
• Statement C → BR (basic rate, 20%)

AccBooks notifies HMRC of the new starter via FPS when you run the first payroll.

National Insurance

AccBooks automatically assigns the correct NI category letter:

• A — standard rate (most employees)
• M — under 21 (reduced employer NI)
• H — apprentice under 25 (reduced employer NI)
• C — above State Pension age (no employee NI)

Enter the category under Tax & NI → NI category.

Student and postgraduate loan deductions

If the employee has a student loan, select the plan:

• Plan 1 — started university before September 2012.
• Plan 2 — started university from September 2012 to July 2023.
• Plan 4 — Scottish universities (any date).
• Plan 5 — students who started from August 2023.
• Postgraduate Loan — separate deduction for postgraduate loans.

AccBooks calculates deductions automatically based on earnings above the plan’s threshold.

Saving and activating

Click Save employee. The employee appears in the payroll list with status Active. On the next payroll run, they’ll be included automatically.