offering payroll services

offering payroll services

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I am CCAB qualified, working in industry with payroll experience, and am looking to launch 'micro' business offering payroll (evenings, weekends). Have others done this?

I plan to use Moneysoft.

My main query is:

would you offer bacs service - if so how do you do this?

subsidiary questions:

any special letter of engagement comments (planning to use CIOT template)

would you send payslips out by email - data security etc,

thanks in advance,

Replies (7)

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By NeilSeekings
30th Mar 2010 06:53

MyPAYE online Payroll solution that links to KashFlow, Sage50, e

MyPAYE is worth looking at as an alternative, MyPAYE is an online payroll solution that has a free white label Partner Program  You choose how you want to run your MyPAYE account:- You can operate your clients' payrolls in different ways (and can charge different fees) depending on how much they need you to do for them. With links to top accounting packages updating pay results into accounts in a couple of clicks saves time too.

Some Key Features 

No software required, just register and beginNo updates or backups needed, we do it all for youAccess your payroll 24 / 7 from any browserNo contract or up-front costs - pay as you goFree online supportEmail or print payslipsIncludes HR with Training, Job History and Disciplinary recordsIncludes P9D and P11D Expenses and BenefitsAll this for £1 or less per employee per monthThe Benefits to you:Provide a modern HMRC accredited payroll system to your clientsEnjoy discounted costs based on the total number of all client employees entered into MyPAYEMatch the system design to your own websiteYour clients can enter the data and see the results - AND so can YOU, making it easy to resolve queries or correct errorsEasily monitor and ensure that your clients are complying with legal requirements

http://www.mypaye.co.uk/

We are just about to launch online BACS CHAPS and faster payments too. With one click make payments directly to client staff fom client bank once you have finished payroll hit pay now and MyPAYE gets authorisation from client electronically and then pays staff for just a few pence per transaction.

Hope this helps.

Neil Seekings

MyPAYE

[email protected]

 

 

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By User deleted
30th Mar 2010 11:59

To briefly answer your question:

BACS service - no

LOE - you need one, make sure it spells out what you are doing and what you expect your clients to do.

Payslips by email - yes (and P45's, P46's, P60's, P35's, P11D's, etc..)

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By User deleted
30th Mar 2010 12:51

Payroll

Shame the first reply was a sales plug.

Payroll in my opinion isnt something that will make you a fortune over night - everyone does it, and does it cheap.

If you want a small sideline business and you can structure it such that you can deal with it in the evenings (which TBH I doubt you'll manage) you might make a few pounds, but it can easily detract you from running a practice if thats what you want to do and where you'll really make your money.

Moneysoft is fantastic - you wont regret using it.

Email everything - post is too expensive and too slow.

BACS - I wouldnt bother, not worth the hassle.

LOE - A MUST!

 

 

 

 

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By User deleted
30th Mar 2010 12:55

An added thought

Dont forget you will need some way of dealing with payroll if you run this alone when you are sick or on holiday - thats when payroll becomes a PAIN!

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By occca
30th Mar 2010 15:21

Evenings and weekends !

I'm not sure how this will work TBH.  I run a few payrolls in my practise and clients need to be able to contact you and inevitably send the information on the day that they need the payroll (usually before 4 o'clock)

Agree with what others have said about it not making much money and being difficult if you're ill or on holiday

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By SimonLever
09th Apr 2010 12:34

Go for it..

As a sideline business it should make enough money to pay for the little luxuries in life but it will not provide you enough to make a living unless you gear yourself up and take on loads of payrolls.

LOE - a must (as other have said). Use a template and then adapt it for your own use as it will make sure you cover everything you need.

Things to watch out for:

- late provision of salary details by clients. Take this as a given and charge extra for preparing payrolls after 24th of the month.

- new employees and leavers. Clients will not tell you about these until after you have run the payroll. I have just dealt with a client who told me an employee left "some time ago". It took 2 months to find out the actual date of leaving. Have a clause in the LOE that payrolls that have to be re-run or amended will mean the client will incur additional charges. Make sure the client understands this as well.

- Have a clear idea of what it is you are providing. Clients tend to think that because you run payroll you will also give HR advice and sometimes other advice as well. Decide if this is for you or not and how you are going to charge for it.

- Bill monthly and get paid by standing order (if a flat monthly amount) or direct debit (if you can). This will ensure you get paid for your work.

- Do everything you can by e-mail. It is cheaper easier and clients can print their own copies. If you do not want to send sensitive data by e-mail set up a secure data storage area to exchange information. Make sure clients send you their data by e-mail as well. Use templates - it is easier to process.

- (not entirely sure about this one) If you are not in practice then you may have to register with HMRC for money laundering registration.

 

If you want to use BACS to pay your client's salaries then you are opening up a whole new can of worms. Items that sping to mind (in no particular order): client money accounts, BACS charges, what if the money is not there to pay the wages, it will ALWAYS be your fault, how do you keep updated with employees bank details, what if you do not have bank details for employee .........

 

Good luck with whatever you decide.

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By beverly chester
09th Apr 2010 18:04

Payroll can be costly

 I agree with the majority here. You will not make a decent living out of payroll. We offer it as a service to existing clients but would not take it on publicly. I am pretty sure you would need to register for money laundering and there is a cost - just under £100 per annum so that might rule out the part time idea on its own.

We have not had a problems with Bacs payments. We get clients to set this up via their own Bank, that way they are liable for all the costs, and we simply fax the details over to the Bank. From what I understand the bacs organisations will pay wages (even if the money is not there) but will then chase the client hard for the money. I do not see that as my problem as it is no different to the Bank chasing people because they are overdrawn. If the clients have asked us to do the wages for that week and they do not have the money they are bound to suffer the consequence I am afraid but I do always ask clients to confirm payments due by email even if they are consistently the same for this reason.

Personally I would NEVER send payslips out by email as they contain too much information. I either phone the client who writes out their own payslip or post them (at the client's expense). You can easily ask for 12/52 stamps in advance. I really do not like the casual attitude to sending stuff by emails even though it is supported by the Inland Revenue. There is too much Identity Theft and personally I would feel very responsible if it happened because I had sent confidential matter by email but that is just my opinion.  

I would suggest give separate rates for each aspect of the wage prep so that clients can calculate their likely cost. Some people have starters and leavers every few weeks and that adds a lot to the payroll costs and to the year end so don't give a fixed price per job, quote per individual.  

One thing nobody has mentioned is CIS. If you get involved with clients in the construction industry they would almost certainly want you to do their CIS monthly returns as well. Be warned they carry a penalty of £100 per time if they are late! Cover who pays this in your letter of engagement or stay well away. CIS is a steep learning curve and it can prove very expensive. I have all sorts of reminders set up but even so missed one month when I was too ill to care. HM are not very tolerant in such circumstances as they say it is the client's responsibility to get them in not ours and I ended up paying the fines. I agree with other comments that you would be asked for HR advice, if you get it wrong that could prove expensive so think about insurance - another cost. 

Are you getting the idea this is an expensive idea on its own? As part of a general practice it is OK or as a major investment to do it full time I suppose it works but you would need to have some of the overheads covered at least. If all the comments have not put you off then don't forget that you need to register as an agent for each business on the Inland Revenue's site if you need to use their software to do the basic year end submissions, P60's, etc. Easy enough to do and easy software to use but it takes time to register and fathom it out. CIS can be done by phone if you are short of time the first month you take on a new client though.  If you have anything due by May 19th this year and want to send it online for a practise run before it becomes compulsory you need to get a move on! I do not know the software you are planning on using but it may not contain the online submission facility. I use Iris but it is getting expensive now.

Good LUck

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