CreDec here: the optimal solution, that avoids all the client money and security issues of having bank login details, is to use BACS Direct Credit or "RTI BACS".
There are no client money issues - money travels straight from the client's bank account to employees; there's no need to enter the payment instructions into banking software they're captured automatically from whatever payroll software you use - so no risk of keying the wrong numbers; and its ultra secure; it also provides clients and employees with the protections of RTI's data validation mechanism, the hash. (Ask for more info!!)
CreDec RTI BACS provides these solutions for typically £7.50 per client per month - at a fraction of the cost of having to become a full BACS Bureau. There's more information on our AccountingWEB supplier page: https://www.accountingweb.co.uk/credec
About BACS Hi mbee1, "Setting up a BACS payment option via the the bank so you can potentially upload it on their behalf" does allow you to offer a secure "payment" service without handling client funds. This is a CreDec direct BACS solution. Direct BACS means you're processing the client's instructions to pay and not their actual payment amounts, and for this reason it has no client monies issues. The difference between the client paying their staff via Internet Banking themselves and using direct BACS is that only direct BACS supports RTI BACS hash codes allowing you and your client to demonstrate RTI compliance by reference to the hash codes on their net payments to each employee.
These solutions are very streamlined and don't require any additional steps beyond generating the BACS payment file in payroll software.
If we can help further with any of these issues, please visit our AccountingWEB supplier page or get in touch directly. We hope this is helpful.
Some of the key considerations for practice payroll of offering a direct BACS (“RTI BACS”) payment service are compliance, additional revenue and capping payroll costs.
Direct BACS meets client monies regulations and having a direct BACS capability allows practice payroll to compete with the largest payroll bureaux and business process outsource providers with an in-house BACS bureau.
In the context of RTI, offering clients a direct BACS payment service allows practice to demonstrate to clients (and HMRC) the BACS hash audit trail, which confirms compliance with RTI reporting obligations and proves the correct operation of PAYE. Its value to practice is that it is the simplest way - at a fixed, known cost - of proving their payroll services and processes are robust and reliable, in the event that PAYE reconciliation issues arise etc.
If helpful, you can find further information about the value of BACS hashing on our (CreDec) supplier pages here on AccountingWEB.
CreDec's direct BACS or RTI BACS service provides a low cost direct BACS solution for practice payroll and offers significant growth potential for practice. If appropriate please get in touch.
CreDec's general payments service supports secure AP and payroll payments for all the UK banks using batch upload. It works with all accounting platforms including Xero. It's completely portable and very low cost. Hope this helps. If you'd like more information, please contact our Client Services team by email at [email protected].
Does anyone know if this means that HMRC can scrutinise ALL BACS payments regardless of whether they relate to RTI, or is it just those BACS transactions with the 64 character BACS/RTI cross reference.
.
No, it doesn't. Hashing is only present in direct BACS files generated by RTI payroll software for employee payment instructions. Hashing is only used in Standard BACS 18 file formats for RTI and nothing else. Also, it is worth noting that the hash code doesn't even include any reference to the Payee's bank account. This is not included in the hashed string. Only the Payee's bank sort code is included and theoretically available to HMRC. Let us know if you need more information.
My answers
CreDec here: the optimal solution, that avoids all the client money and security issues of having bank login details, is to use BACS Direct Credit or "RTI BACS".
There are no client money issues - money travels straight from the client's bank account to employees; there's no need to enter the payment instructions into banking software they're captured automatically from whatever payroll software you use - so no risk of keying the wrong numbers; and its ultra secure; it also provides clients and employees with the protections of RTI's data validation mechanism, the hash. (Ask for more info!!)
CreDec RTI BACS provides these solutions for typically £7.50 per client per month - at a fraction of the cost of having to become a full BACS Bureau. There's more information on our AccountingWEB supplier page: https://www.accountingweb.co.uk/credec
About BACS
Hi mbee1, "Setting up a BACS payment option via the the bank so you can potentially upload it on their behalf" does allow you to offer a secure "payment" service without handling client funds. This is a CreDec direct BACS solution. Direct BACS means you're processing the client's instructions to pay and not their actual payment amounts, and for this reason it has no client monies issues. The difference between the client paying their staff via Internet Banking themselves and using direct BACS is that only direct BACS supports RTI BACS hash codes allowing you and your client to demonstrate RTI compliance by reference to the hash codes on their net payments to each employee.
These solutions are very streamlined and don't require any additional steps beyond generating the BACS payment file in payroll software.
If we can help further with any of these issues, please visit our AccountingWEB supplier page or get in touch directly. We hope this is helpful.
Some of the key considerations for practice payroll of offering a direct BACS (“RTI BACS”) payment service are compliance, additional revenue and capping payroll costs.
Direct BACS meets client monies regulations and having a direct BACS capability allows practice payroll to compete with the largest payroll bureaux and business process outsource providers with an in-house BACS bureau.
In the context of RTI, offering clients a direct BACS payment service allows practice to demonstrate to clients (and HMRC) the BACS hash audit trail, which confirms compliance with RTI reporting obligations and proves the correct operation of PAYE. Its value to practice is that it is the simplest way - at a fixed, known cost - of proving their payroll services and processes are robust and reliable, in the event that PAYE reconciliation issues arise etc.
If helpful, you can find further information about the value of BACS hashing on our (CreDec) supplier pages here on AccountingWEB.
CreDec's direct BACS or RTI BACS service provides a low cost direct BACS solution for practice payroll and offers significant growth potential for practice. If appropriate please get in touch.
CreDec Client Services
Automated Payments
Hi,
CreDec's general payments service supports secure AP and payroll payments for all the UK banks using batch upload. It works with all accounting platforms including Xero. It's completely portable and very low cost. Hope this helps. If you'd like more information, please contact our Client Services team by email at [email protected].
CreDec Client Services
RE: RTI and BACS cross reference.
No, it doesn't. Hashing is only present in direct BACS files generated by RTI payroll software for employee payment instructions. Hashing is only used in Standard BACS 18 file formats for RTI and nothing else. Also, it is worth noting that the hash code doesn't even include any reference to the Payee's bank account. This is not included in the hashed string. Only the Payee's bank sort code is included and theoretically available to HMRC. Let us know if you need more information.
CreDec Client Services