orbital AGENCY GUIDE Payroll Group

Transcription

1 AGENCY GUIDE

2 COMMITMENT TO COMPLIANCE The Orbital Group has pro-actively gained a number of industry recognised accreditations and standards to prove to our clients and the workforce alike, that we are serious about operating to current legislation and protecting their interests. Professional Passport Professional Passport is an independent professional membership organisation working with all sectors of the flexible workers market. The Professional Passport stamp of approval is only given to companies that have passed a rigorous, compliance audit and likewise is used by many agencies as a benchmark when reviewing their payroll suppliers. Orbital has completed all the PP checks and is a fully approved member PRISM PRISM is a not for profit professional trade association that represents and promotes its members interests who all operate within the professional payment intermediaries sector. The sector covers providers who offer support to temporary workers and recruitment companies by providing payroll services, employing workers through an umbrella company structure, and accountancy services support to workers who operate through their own limited company, often referred to as a PSC. The members elect an Executive Committee, and this directs the Association s priorities and activities Orbital is a founding member of PRISM. Lawspeed SPA Audit Lawspeed have been operating as a legal compliance consultancy specialising in recruitment and employment law since Their SPA service is an industry recognised audit style system to confirm whether a service provider is compliant or not. Orbital passed the audit as being a low risk provider in all aspects, and a copy of the report can be requested from Lawspeed ARC Membership The Association of Recruitment Consultancies (ARC) is a trade membership organisation representing recruitment businesses from all sectors. It also a legal partner of Lawspeed, and due to our SPA status allows us to be an approved member alongside many recruitment agencies who know they can rely on our services P2 Orbital Agencies Guide 2015

3 SERVICES WE OFFER Umbrella PAYE Based around an on-the-books system, workers become employees of Orbital Umbrella engaged on an over-arching contract of employment, and have the ability to maximise their earnings by claiming tax relief on genuinely incurred expenses. HMRC audited umbrella product, with industry accreditations including Professional Passport, Lawspeed and ARC. HMRC Expenses dispensation active from April 2014, allows us to reimburse benchmark rates. Founding member of PRISM, the largest trade association body specifically for the Umbrella provider industry. Industry leading low-cost margins on a sliding scale, designed to be cost effective in any discipline. Full employment benefits include: sick pay, holiday pay and provision of a workplace pension. Suited to contractors who do not want to work as self employed/limited. CIS & Non-CIS Sole Trader Perfect for sub-contractors that work on a more freelance basis within construction (trades or technical) or other industries e.g. medical/healthcare, IT, engineering and education. Due to the introduction of the Agency Legislation in April 2014 and the subsequent reporting obligations that start in 2015, it is now important to establish whether Supervision, Direction or Control (or the right of) exists to each worker as to the manner of how they perform their duties. Unique Tax Reference number and proof of self employment is a requirement. Orbital invoices on your behalf to ensure regular income. CIS tax deducted at 20% (standard) or 30% (higher rate) after verification with HMRC. All sub contractors are engaged on a fully compliant contract for services, and are free to find their own assignments/work detail. Public liability and Personal Accident insurance cover as standard (if applicable). Weekly, self employed remittance to show earnings breakdown. Available on contractor s portal. Limited Company / PSC Best suited to long term freelance workers who require a standard level of accountancy and bookkeeping services from as little as 90 (+ VAT) per month. Orbital s service can look after the back-office aspect involved in running a company, and allow you to maximise your earnings and build a brand name. FREE Limited company incorporation and first month FREE. FREE registered office service (if required). 24/7 access to user friendly portal where you can manage your business on-the-go. Help with all HMRC registrations for tax, VAT (if required) etc. and related administration including returns. You have greater control of the contracts you accept and enter into. For industry recognised freelance insurance cover, we partner with KPSol (Kingsbridge Professional Solutions) info@orbitalservices.co.uk 03

4 HMRC EMPLOYER COMPLIANCE REVIEW & DISPENSATION 2014 Our commitment to compliance and best practice was confirmed in April 2014 by a rigorous, on-site review of our company operations by members of HMRC s Specialist Investigations Team (Labour Providers). We welcomed the visit in order to prove our credentials as a reputable, modern umbrella company that embraces current legislation at a time where noncompliance is still a detriment to the industry The areas analysed were: National Minimum Wage and PAYE review. How we operate as an umbrella company and what deductions are made. How we process and calculate pay. Review of expense claims from workers. Review of contracts, expense policy, employee handbook, expense forms and timesheets. Evidence of random sampling exercises. Pay Day by Pay Day model review. HMRC inspector visited several contractors we paid to ensure they understood their employment status. The Results... We were given very helpful advice and received confirmation that all our processes and related paperwork were at the required level of HMRC legislation. In turn we were approved for an Expense Dispensation on 8th October 2014, and final closure was confirmed by letter on 31st October The officer who undertook the review commented: Finally, I would like to thank you for all the assistance provided during the review and please do not hesitate to contact me in the future to discuss the contents of this letter or other issues arising. HMRC Expense/P11 D Dispensation Issued by the Specialist Employer Compliance department in Glasgow, and tested against current legislative criteria. Benchmark assurance for agencies when deciding on their umbrella providers. Only issued when HMRC are satisfied that you have a no-risk model, and that all contracts, processes and other related procedures are compliant. Also confirms that we are not operating a Pay Day by Pay Day model. 04 P2 Orbital Agencies Guide 2015

5 1. Initial Contact Referral from agency. Orbital contact by phone, or SMS text message. Contractor contacts Orbital Independently or completes online registration form via website. sent to agency if the contractor is not returning calls etc. 2. On-boarding Process Confirm personal details. Discuss payment options and overview of how they work. Confirm contract details e.g. agency, pay rate, hours, potential expense claims etc. Pay Illustration to show potential take home pay and verify possible expense claims. Right to Work in UK documents e.g. passport, proof of address. Confirmation sent that includes: On-boarding details form, 8 Step Guide to Umbrella PAYE, Payslip Example, Expenses & Receipts Guide and Personal Accident Insurance cover. 3. Data into the system Employee reference number created when details are put onto our payroll software. Account is created that allows the contractors online portal registration. New starter confirmed to agency/ consultant. Any outstanding assignment details are also chased from agency. 4. Candidate is now live with Orbital Employment contract ed to operative via electronic signature service, Docusign. Activation sent for online portal registration, which also has an acceptance of terms and conditions on the first log in. 5. Payment Processed Payment instructions are sent across by agency, preferably by Excel spreadsheet. Invoice generated by relevant Orbital group company. Remittance/Self bill from agency. 6. Payment to Candidate Text message confirms take home amount to designated bank account. Payslips automatically upload to portal, or can be sent by post and . Advance payments made on request at no extra charge, and can be sent as late as Friday PM. 7. Online Portal Allows candidates to view new and historic payslips. Submit expense claims (including receipt upload). Read messages/send messages. Change and update personal details. Accept contract terms and updated Orbital guides. 8.Client & Contractor care Unlimited support. Payslip explained. Help with expense claims. Query handling. Best practice and compliant advice. Retention of business is our aim. THE REGISTRATION PROCESS info@orbitalservices.co.uk 05

6 THE REGISTRATION PROCESS 1. This is the start of the registration process where we require a full name, contact number and address (if possible). It is beneficial if the consultant has informed the operative that Orbital will be making contact and who we are. 2. Initial Contact On-boarding Process The aim of this part of the process is to check personal facts including bank details, NI number, home address etc. and give workers the maximum amount of information about the payment process through Orbital. Personal and Assignment Details To start building the consultation we would enquire if the operative has contracted through agencies or payroll providers previously. Other points to confirm would be: Full personal details. address and online service. Overview of Umbrella PAYE. Rate agreed with the agency. Hours of work. Site address. Intention to carry out work on multiple assignments. Expense Allowances To clarify if the candidate was able to claim any allowable expenses we would base it on the following information: How will you travel to work? How many hours are you away from home? Will you purchase food while you are at work? Are you likely to incur other expenses related to the job? E.g. accommodation, tools, workwear, phone costs. Receipts required and in what format. We would also clarify that if subsistence (food) was being claimed then receipts are to be saved for the workers records, and could be required as part of our weekly audit process. Pay Illustration The purpose of the individual pay illustration is to help candidates understand what their first payment could potentially look like, from us receiving the Gross agency funds, right through to the take-home pay. Components of this part of the process include: Confirming expense amount to be processed e.g. mileage claims would be verified by route planner. How reimbursed expenses work in line with the National Minimum Wage threshold for Tax and NI purposes. Standard deductions and employment costs e.g. Employers NI. Holiday pay (default position is rolled up each week). Payslip format. Comparisons between CIS, direct PAYE and Umbrella PAYE if required. Right to Work in UK As an employer, we have a duty to check that workers have the right to work in the UK and to meet the Statutory Excuse obligations where possible. We require clear copies of all documents before an operative starts work so these can be checked. It is also beneficial to liaise with agencies if the worker has sent them directly to the consultant. Documents required: Passport, or Birth certificate with driver s license, utility bill or bank statement. Work Permits and Visa s for non-eea residents. Confirmation All of the information gathered throughout the on-board consultation is confirmed in an attachment, along with: 8 step guide to Umbrella PAYE. Expenses & receipts guide. Now Pensions auto-enrolment information. Personal accident cover. Screenshot of pay illustration. 06 P2 Orbital Agencies Guide 2015

7 Data into the system Candidate is now live with Orbital Once the candidate s personal details have been set up in our payroll software, a unique employee reference number is generated which can then act as future pay detail confirmation. If a valid address has been entered, we also tick the online option which automatically sends an activation for the worker to set up their portal account. Payslip options can also be set to post and if requested. We also send a confirmation to the agency consultant to confirm registration. Contractual terms and conditions are ed via Docusign, which is an electronic signature service that allows workers to complete documents onthe-go and also to upload scanned copies of ID. The completed document then comes back to us by . Pensions As part of our auto enrolment obligations we use the services of NOW Pensions, and automatically defer all new workers for a 3 month period. If they are still with us after this period they are enrolled in to the scheme but can opt out, or even opt back in, at any time. Our weekly reports to NOW activate a starter/information letter from them about the options available. Details of how to opt-out are included in the joiner letter. To speak to NOW Pensions about this you can contact them on or members@nowpensions.com General information on Now Pensions Tel: or info@nowpensions.com info@orbitalservices.co.uk 07

8 5. Payment Processed Pay instructions are sent across by agencies on Tuesday and Wednesday for the majority, and are preferable in Excel spreadsheet format. We also deal with direct self-bill and remittances. To be flexible we operate payrolls on every day of the week to ensure that candidates don t have to wait for payments. 6. Payment to candidate Once payroll is processed daily, text messages are sent to confirm the take-home pay amount. If an operative has more than one payment within the week, then they would receive a message relating to each new amount. When pay-runs are updated each day, this automatically triggers online payslips to be uploaded to the contractor s portal or others to be generated for postal or choices. Advance payments can also be sent on request at no extra charge. 08 P2 Orbital Agencies Guide 2015

9 Our aim is to be a forward-thinking, independent payroll provider who believes that high levels of service can be supplied cost effectively, alongside industry accredited, compliance standards. 7. Online Portal Being paperless and as automated as possible is Orbital s preferred way of maintaining an efficient all-round service. Benefits include: 24/7 on-the-go access. Quickest way to view current and historic payslips. Fully automated expense claims allows you to keep tabs on what stage the claim is at e.g. submitted, processed, rejected. Update personal details. Allows contractors to accept and save contractual documents. Accounts can be reactivated if workers forget their login details. 8. Client & Contractor Compliant Attentive Responsive Everytime We are on hand to offer as much support as you need from explaining payslips to helping with expense claims. Any potential queries are dealt with as a priority, be it client or candidate, and all are treated with respect and the strictest confidentiality info@orbitalservices.co.uk 09

10 AGENCY BENEFITS Peace of mind Clients can rest assured that they are getting the best legislative advice and a service where our procedures have been reviewed on-site, by HMRC. Further to this we carry several of the most recognised compliance standards throughout the umbrella payroll industry to confirm that you are in safe hands. We are also a fully independent set up, and not owned or previously owned by any agencies which ensures no conflict of interest. We also have a transparent group company structure. Low-cost weekly margin Besides high levels of service, we have consistently offered industry leading, low-cost margins that are based on a sliding scale so as not to penalise lower-end earners. Advance payments This is a standard part of our service for late timesheets or if details have simply been missed off the normal weekly pay-run. All we need is the operatives details and a breakdown of their earnings, and we will pay them the same day, at no extra cost. Any payments owed can be settled up the following week. Jobs board As part of our employer obligations we offer a job board service that can assist the workforce when looking for their next assignment, and can also assist agencies that want to advertise their latest available roles. Personable service Although we have more than enough staff to cover all aspects of our operations, we are by no means a call-centre set up that gives you frustrating multiple phone options. We keep it simple, to the point and aim to offer the more personal touch with the backing of a reputable and established group structure. 10 P2 Orbital Agencies Guide 2015

11 CONTRACTOR BENEFITS Know you re in good hands There is more and more scrutiny these days on legislation surrounding contractor s payroll and the market still has many non-compliant providers giving out the wrong advice on areas like expense claims. At Orbital, we give you the best advice based on current HMRC guidelines and have this confirmed by our various accreditations. It is advisable that you operate through a compliant provider so that you don t put your financial affairs at risk. Consistently cost effective Right from day one we have always believed in a fair price for contractors using our services, and this is reflected in our industry leading margins. We operate a sliding scale basis which benefits lower-end earners but also doesn t penalise higher-end earners. Why not check our Orbital job board service which is packed full of the latest vacancies from the UK s leading agencies. Registration and aftercare We aim to give a more consultation based registration to help the broad range of candidates that we contact, to understand in full how the pay process works for them and what they can expect from Orbital. Our help doesn t stop there however, and we are hand for unlimited support via phone, or text message. Online services Our easy-to-use service makes payroll automated and ultimately more efficient by allowing operatives to submit expense claims at the touch of a button, besides managing their account at a time when it suits them. Payslips are far more accessible through the portal compared to waiting around for posted versions. Referral scheme If you like our services and take us to a new agency who we have not worked with before, we will give you a 25 Love 2 Shop voucher every time you do. Likewise, if you refer a friend who stays with us for at least 3 weeks, we will issue you with another 25 voucher info@orbitalservices.co.uk 11

12 PAYSLIP EXPLAINED The aim of our pay advice is to show an itemised but easy-to-understand breakdown, by providing a reconciliation statement besides a payslip to show the total flow of money from Gross to Net pay. Reconciliation Statement Section 1 This is the start of the Reconciliation Statement which confirms the workers name, employee number, processed pay date and NI number. It also shows the amount of hours and agreed agency pay rate/contract rate giving the total Gross funds. The monies at this point belong to the company, not the worker. An Umbrella company s only income is from what it s workers generate, and therefore the total Gross amount has to cover all employment related costs besides pay. 2 1 Section 2 The Gross funds are then subject to the standard company deductions which include, company overhead (margin), Employers NI, Holiday pay and any potential Pension contribution. Reimbursed Expenses (if claimed) can also be processed if there are available funds above the National Minimum Wage threshold for tax and NI purposes. 3 Section 3 Here we show Company Receipts (A) minus Company Costs (B) to give a new Gross taxable amount. For compliance, this amount is never below the NMW threshold based on the hours worked. Holiday pay is also shown as being rolled back into the wage or being accrued. 12 P2 Orbital Agencies Guide 2015

13 Payslip Section 4 Payments section shows the hours worked at NMW to confirm that you are never paid below this rate, besides any Holiday pay taken and company Discretionary bonus (if applicable). The Basic Pay together with any DB total up to the Gross taxable amount. 4 Section 5 The Deductions section shows the Employee s NI and PAYE tax contributions based on their relevant percentages from the new Gross taxable amount figure. 5 6 Section 6 This section confirms the workers name and address, This Period figures including the tax code used, and Year to Date totals. Most importantly, it also shows the total take-home pay amount info@orbitalservices.co.uk 13

14 REPORTING OBLIGATIONS Following on from the Onshore Employment Intermediaries or Agency legislation that was passed in 2014, the statutory reporting obligations came into force from April 2015 with the first submitted report due in August It is the AGENCY intermediaries responsibility to report on a quarterly basis to HMRC about individuals supplied to hirers if no employment taxes (PAYE/NICs) have been deducted on payments. How we can help you Submitting the report doesn t have to be stressful, as our fully automated payroll software does all the hard work by exporting compliant information ready to be uploaded. Benefits include: Reports produced to the required HMRC guidelines and correct format (Excel/csv. file). All required information included in the relevant columns. Reporting can be segmented into quarterly, monthly or weekly payment dates. Know that you are getting assistance from a confirmed, compliant provider. Hassle-free, time saving way to collate required data. Category of workers (Gross payments to payroll intermediary) Employment Umbrella Is the umbrella operating PAYE and submitting Real Time Information (RTI) to HMRC? Yes = then obtain a document confirming this no need to submit full report details for the employment umbrella s workers. PSC PSC worker supplied through an intermediary = he/she has to be included in the report. PSC working direct for hirer does not need to submit a report to HMRC if they only support one worker. Sole Traders Self-Employed CIS (Construction Industry Scheme)/ Non-CIS individuals already registered with HMRC and submitting Self-Assessment, have to be included and Column M on report must include workers Unique Taxpayer Reference (UTR). 14 P2 Orbital Agencies Guide 2015

15 Codes that define worker status in Column L Column L: reason why the worker is not paid PAYE: A worker is self-employed B worker is in a partnership C worker is in a limited liability partnership D worker operates through a limited company E the engagement of the worker is non-uk engagement F the worker is paid PAYE by another party What does the agency have to do? Register with HMRC Submit report online on HMRC template Send a report to HMRC by the deadline Keep record of information submitted Reporting periods (every 3 months in arrears) Reporting period Deadline date Date you can replace a report by 6 April to 5 July August 5 November 6 July to 5 October 5 November 5 February 6 October to 5 January 5 February 5 May 6 January to 5 April 5 May 5 August PREFERRED & APPROVED SUPPLIER STATUS A PPR O V ED O R PREFERRE D S U PPLIER S Orbital works with many reputable UK agencies as part of their approved or preferred supplier procedures, and this area is becoming more important to ensure that you are not being exposed by non-compliant payroll providers, which can sometimes be led by the workforce unknowingly. Because of the commitment to compliance we have pursued through our various industry accreditations, we believe we have all the right credentials that will benefit agencies of any size, and in any sector. If your supply list is coming up for review, why not give us a chance to show how our reliable and cost effective services could help you and your workforce. Please contact us on: agency@orbitalservices.co.uk info@orbitalservices.co.uk 15

16 Please feel free to call or us any time, regarding any matter, and we will only be too happy to help. Likewise if you re in our area, why not call into our offices and pay us a visit for a quick chat and a cuppa. We are also on hand to visit your office if required, to offer advice on our products or even specific training with consultants. We won t however drop-in frequently or uninvited To help deal with your enquiry more quickly, and to the right department, we also have specific address contacts: General enquiries or queries: info@orbitalservices.co.uk Invoice requests and payment information: payroll@orbitalservices.co.uk Agency specific enquiries: agency@orbitalservices.co.uk New registrations and related enquiries: register@orbitalservices.co.uk