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Wages paid into another persons bank account

Wages paid into another persons bank account

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Whilst working on a clients accounts and reconciling the net wages account I have noticed that a new employee has instructed our client to pay his wage into his another persons bank account (girlfriend) and this was done last month. I was wondering on other members thoughts on this and whether we should instruct our client that he should only pay the wages into a bank account in the employees name. 

 Thanks

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By pawncob
20th Aug 2014 12:39

Time was

When this wouldn't matter, but surely such an event must be covered by MLRs.

If client doesn't comply with request, it's time for a report.

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Replying to 0098087:
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By lionofludesch
20th Aug 2014 12:46

Report

pawncob wrote:

When this wouldn't matter, but surely such an event must be covered by MLRs.

If client doesn't comply with request, it's time for a report.

What would you say in this report ?

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By Carolynne
20th Aug 2014 12:42

No problem

I run many payrolls, and have couples for example who live together with different surnames.  If the person on the payslip is doing the work and is rightfully receiving the money, they can have it paid into any account they wish.  One of my clients is living with a friend at the moment, and has her wages paid into her friends account. 

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By lionofludesch
20th Aug 2014 12:45

Authority

Agree with Carolynne - but I'd want some written, signed authority from the bloke who's actually doing the work.

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By Kazmc
20th Aug 2014 13:31

Same

I pay a director who has a certain sum of his salary paid into his account and the balance paid into his wife's account.

Have signed authority from the director incase of an inspection.

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By Euan MacLennan
20th Aug 2014 13:36

Standard procedure

Most of our clients with more than just one or two employees have developed new starter forms on which the employee gives details of the bank account into which they want their money paid.  That is sufficient documentation.

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David Winch
By David Winch
20th Aug 2014 14:30

MLR (not)

On the face of it, if net wages which have been subject to PAYE are paid (at the employee's request) into a bank account which is held in the name of someone else (such as a girlfriend) I do not see any reason to consider a report under MLR 2007 / s330 PoCA 2002.

David

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By neiltonks
20th Aug 2014 15:21

Very common

The happens a lot, for perfectly innocent reasons.  For example, when my (then) future wife and I bought our house together, there was a period of time when the household bills were paid out of my current account, and both our salaries were being paid into that account.

We turned it into a joint account eventually but that was our choice and had we left it unchanged, we'd have been very miffed if her employer's accountant had reported us for suspected money laundering!

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By Democratus
20th Aug 2014 17:15

Caution

being generally pessimistic about peoples behaviour towards employers I tended to, in the past where this cropped up, got the employee and the recipient to sign an indemnity confirming that payment into the account of person B -not the wage earner, was sufficient to satisfy our obligation to pay person A, the wage earner, and that person B confirmed that they were responsible for ensuring person A received their wage.

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By Carolynne
21st Aug 2014 20:06

In Fact

In fact, when I came across this for the first time, about two years ago, I telephoned the PAYE Dpt at HMRC, and they confirmed it was quite acceptable to pay into another persons account, as far as they were concerned. 

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