Category Archives: Pay & Reward

Deel is acquiring payroll company PaySpace

News comes as Deel hits 500M+ in annual recurring revenue within five years

Global payroll and HR company Deel announced today that it is acquiring African-based payroll and HR company PaySpace for an undisclosed amount. It also announced that it has achieved $500M in annual recurring revenue (ARR) within five years of founding. The acquisition of PaySpace positions Deel as a market leader in global payroll, deepening Deel’s native infrastructure and coverage.

PaySpace has more than 20 years of payroll technology experience, providing payroll engines and HR services in 44 countries across Europe, Latin America, Middle East, and Africa for more than 14,000 customers. Its size, expertise, and proprietary disruptive payroll technology give it unrivaled scale and reach. Customers include multinationals across various industries such as Heineken, Coca-Cola Beverages, and Puma Sports.

By acquiring PaySpace, Deel will become the first global payroll & Employer of Record (EOR) with its own full-stack payroll engine localized in 50 countries and integrated into its offering. Deel has the ability to be the system of record for HR organizations worldwide and can give its customers a simple and single interface to manage their global teams. All of this results in greater efficiency and control for companies, faster payroll cycles, more localized compliance insights relevant to their workforce, plus the ability to make changes to their payroll at any time.

The news follows Deel’s acquisition of leading APAC payroll provider PayGroup. Deel now owns the full HR stack: entities, local teams (legal, HR, payroll), and local payroll engines across six continents. Its four-year ambition is to serve 100 countries with native payroll engines, and this acquisition is a significant step toward that goal.

 

Deel co-founder and CEO Alex Bouaziz said, “Global payroll is hard to do and critical to get right. As a company, you want assurances you can pay your teams on time, compliantly, anywhere in the world. PaySpace’s single-platform payroll expertise and breadth of coverage, particularly in Africa and the Middle East, combined with PayGroup’s presence in APAC, will give Deel customers the reach they need to grow their businesses globally. Our long-term vision is to be the most comprehensive payroll system in the world.”

Deel also announced today that it has achieved $500M+ in annual recurring revenue organically, outside of this acquisition. In under five years, the company has grown to 3,000+ team members in more than 100 countries. It has been EBITDA positive and consistently generating cash for a year and a half.

 

Last week, Deel announced its acquisition of Zavvy, a people-enablement platform. Zavvy offers a central hub that covers career development, performance management, and training programs. HR leaders can run performance and compensation analysis for top performers, provide a library of AI-backed L&D courses, and create bespoke career paths and planning modules for their teams. The move rounds out Deel’s HR suite of products, making it even more of a one-stop-shop for global teams.

 

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About Deel

Deel is an all-in-one HR solution for global teams. It helps companies simplify every aspect of managing an international workforce, from culture and onboarding, to local payroll, compliance and now, people management. It owns 120+ country entities and manages in-house, in-country payroll teams, in addition to offering Employer of Record, contractor, immigration and HRIS services worldwide.

 

About PaySpace

Cloud-native from inception, the PaySpace proprietary technology was developed to operate in a highly secure and operationally efficient manner. It was specifically designed to provide multi-country payroll and HR functionality with built-in compliance for organizations of all sizes and industry sectors. It provides a single truth for payroll and HR data – and the tools to make strategic decisions at every level. PaySpace has expanded into 40+ African countries as well as the Middle East, with an imminent launch in the United Kingdom (UK) and Brazil. It is scalable, configurable, highly secure, and easy-to-use allowing anytime, anywhere access to empower payroll and HR teams, driving organizational development.

Payroll teams prepare for new status nuances resulting from the Flexible Working Act

The Employment Relations (Flexible Working) Act 2023 successfully passed through Parliament and received Royal Assent in late July. While workers in the UK always had the ability to request flexible working conditions from their employers, the Act enshrines their rights into law, expected to go into effect at some point next year.

Employers in the UK will now have to contend with the repercussions of this law, and perhaps the biggest impact will land on payroll processing, an area already on the path to becoming more complex in the UK.

Changes to conditions of employment

Employees in the UK can now legally ask their employers for changes to working conditions after having been employed for 26 consecutive weeks. Employees can file two requests every 12 months, and employers must provide a valid reason if they deny the request.

Currently, employers must choose from one of eight statutory reasons for rejecting a request, and respond to their employee within two months of filing the request. While the Government hasn’t installed an appeal process, employers can offer one.

Workplace arrangements have been changing following the COVID-19 pandemic, and the Employment Relations Act reflects the realities of this evolution. It also stresses the importance of employee data management and electronification, another trend that gained pace during the pandemic.

Compliance errors cause needless expenses, and the change in worker statuses this Act creates might result in a wave of non-compliant filings. The biggest reason? Failing to account for and assign the right worker statuses.

Flexible work therefore makes payroll data management critical, and fast-growing companies that do not use automated payroll solutions will find this new law creating significant challenges. Pento, for example, is leading the way among UK payroll software solutions, with its new functionalities to support employers with flex workers and less conventional pay schedules.

Worker status implications

The Government has currently outlined eight types of flexible working situations. These are job sharing, working from home, part-time working, compressed hours, flexible hours, annualised hours, staggered hours, and phased retirement.

A worker switching from full-time to any of these roles will likely create significant tax implications for their employer. “If an employee requests flexible working but remains an employee, from a tax compliance perspective, it shouldn’t be an issue,” says Seb Maley, CEO of contractor insurance provider Qdos.

“But if a self-employed individual starts working in a manner akin to an employee, it can have a bearing on employment status compliance. In this scenario, businesses are on the hook for missing employment taxes.”

 

One way companies can mitigate this risk is by using the Government’s employment status for tax tool. While this tool will simplify employee tax filing codes, companies with growing workforces cannot manually enter information and transfer it.

The right move is to electronify and automate payroll management to account for these changes. Pento’s solution removes the chances of manual error creeping into the process by syncing with HR information systems and automating status filings at the click of a button.

 

Typically, companies outsource their payroll services when small, and those service providers are a good fit for companies that choose to remain small. However, growing companies face rapidly changing payroll landscapes and need flexibility.

For instance, a company may face a rapidly growing number of employees switching statuses, creating a need for HR to constantly reach out to the third-party provider. In this scenario, constant back-and-forth removes HR from offering salary and compensation data as inputs to the firm’s growth operations team, leading to an incomplete growth plan.

Adjusting to changes

Companies that approve the bare minimum do risk losing worker trust and damaging their chances of attracting top-tier talent. Offering flexible work is now a competitive advantage, with companies that accommodate such requests attracting better talent.

Pento’s solution seamlessly scales with growing companies, removing payroll complexity while ensuring all filing deadlines are met. Companies can create custom payroll workflows to account for all employee demands. By integrating with different platforms in a company, HR can offer payroll data insights, and companies can model the impact of changing payroll costs.

Moreover, HR managers can quickly assess the financial impact of an employee’s flexible work request by modelling the changes to the payroll structure and offering data-backed reasons for denying a request.

For instance, transforming workers in a department into compressed hour workers might offer the company tax advantages. Alternatively, accepting those requests might turn the department into a major cost centre. Either way, Pento can offer payroll data insights that give finance and HR teams data-backed reasons to approve or deny requests.

Flexible work is the future

Flexible work arrangements are here to stay, and companies must react proactively to the Act. Those that electronify their payroll workflows will generally have an easier time dealing with these changes.

Given its position as a significant business expense, increasing payroll efficiency certainly helps to keep companies compliant and ahead of the curve in the competitive marketplace.

 

 

(Pay)rolling into 2023: How fintech can help smooth the chaos of one of the busiest times of the year

Ann Juliano at Muse Finance explains why and how fintech can help with the traditional challenges faced by recruitment agencies at the start of the year

January and February are the most popular hiring months.

This is driven by two trends: firstly, businesses start searching for talent to help them meet their goals for the year ahead; and secondly, employees shake off any end-of-year inertia and begin looking for a better job.

It leaves recruitment firms inundated with demands from both ends of the job market – and means it’s more important than ever to ensure they don’t fall prey to cash flow issues caused by poor payment terms, unpaid invoices, and a general lack of visibility and control over their finances.

But how can they avoid those business-stifling troughs? Fintechs can make this busy period much easier.

 

New year, new recruits?

Only looking at headlines, it looks as though the UK jobs market is cooling in the face of recession. Thousands of employees at tech giants like Amazon and Salesforce are facing redundancies. Goldman Sachs is offsetting falling profits by making job cuts. Two-fifths of small businesses are planning on restructuring or making redundancies this year.

But almost half (47%) of working people across the UK are still considering new jobs. This isn’t just due to new year’s resolutions. The current cost of living crisis is causing further job-hopping. In fact, the most popular reason for switching jobs in 2023 is the need for a higher salary.

All of this movement builds demand and creates exciting opportunities for recruitment specialists and agencies. However without the right operational or financial functions in place, this could lead to lost opportunity.

 

When cash doesn’t flow

All businesses will experience cash flow issues at some point. But recruitment agencies face a number of particularly tricky financial hurdles.

Slow payment of invoices is the most common reason for cash flow problems. Clients may have slow internal processes or could even be facing cash flow issues themselves. Plus, billing errors or client queries often cause more delays.

Even when invoices are technically paid on time, the nature of the recruitment process can leave agencies out of pocket for weeks or even months. Companies like Bulldog Resourcing and KBM Resourcing act as the payroll middle-man for hundreds of thousands of temporary workers each, who are often paid on a weekly basis. However if agencies fail to set up favourable enough terms, they could be waiting 30, 60 or even 90 days for payment from their client.

Any actual delays to this payroll can have serious implications for its hires, and the relationships held with its clients.

When it comes to permanent hires, late payment of introductory fees for permanent clients can also cause problems with cash flow if the agency has an agreement to replace unsuccessful hires within one to three months. Essentially, they can be forced to invest time and money in finding a new employee for their client before receiving payment for placing the original worker.

Many recruitment agencies still don’t have the software in place to have clear visibility of their finances, making it difficult to monitor invoices, expenses and other important metrics. Digitising these processes will give them a clearer view of their cash flow and allow them to react quickly to any potential problems.

 

Fintech can save recruitment agencies time and money

During this busy time, recruitment agencies need better visibility of their finances and the ability to automate as many processes as possible to prevent back office overwhelm.

Fintechs such as Muse Finance now offer cloud-based accounting platforms that will give agencies a real-time view of their cash position. They also make it easy to establish which clients are behind on payments and automate invoice chasing.

Access to new financing products will also help recruitment agencies keep a flexible cash flow in the face of long payment terms. Invoice financing, for example, will let agencies unlock necessary cash tied up in late invoices for use whenever they need it.

This will provide a lifeline for agencies looking to service their clients and find roles for as many workers as possible throughout the January job-hunting boom.

Which jobs pay men and women equally?

If you were to see two employees hired for the same role, you’d expect them to receive the same pay right? Unfortunately that’s still not always the case. 

Even in the modern age we’re in, women still have to fight for their right to receive equal pay for their efforts. Many industries haven’t yet got the memo, but not all, with a variety of professions now taking it into their hands to level the playing field, as far as salaries go. 

 

Are men and women still paid unequally?

According to Eurostat, statistics show that in the EU, women’s gross hourly earnings was on average 13% lower than that of men’s, according to the latest data pulled from 2020.

Even in modern day women are having to still campaign for pay equal to their male counterparts. 

 

Which jobs have the lowest pay gap?

Luckily, not all industries are like that, and there is a selection of professions out there that are actively working to further close the gender pay gap. Some of which may surprise you. 

 

Biological scientists

Being a primarily female-led industry, 54% of biological scientists are women. According to research, female biological scientists slightly out-earn men in this profession, earning 101% of what men earn for the same job, on average. 

 

Computer network architects

Although only 8% of network architects in the industry are female, women still earn a percentage of 105% what men earn within the same profession. 

It’s clear that this talent is recognised for both genders, but could improve in terms of the ratio of women hired for these jobs. 

 

Counsellors

These include anything from behavioural, educational and career counsellors. On average, women earn 100 to 107% the salary that men earn in the same profession. 

 

Event planners

This one shouldn’t come as a surprise, considering over 80% of people working in the event planning space are in fact women. In terms of ratio, women earn 110% the salary that men earn, for the same industry.

 

Mechanical engineers

Although this is a male-led industry, with over 90% of men working in this profession, the gender pay gap isn’t very large here. Women earn on average 99% of the salary men earn in the mechanical engineering field. 

 

Special education teachers

Another industry where women are leading in, with females taking up 75% of the workforce for this profession. Female special education teachers earn on average 102% what men earn for the same job. 

 

Social workers

On average, women take up 83% of social worker roles in the US. With that, the average pay they receive is equal to that of their male counterparts. 

 

TSA workers

Transportation security is fairly equivalent in terms of males and females working in the industry, with women making up 42% of the workforce. That being said, women earn 99.4% what men earn within the same profession. 

 

Tutors

In the US, 63% of the tutor workforce is made up of women. This same group also earns 97.9% of what men earn within the same industry. 

 

Voice overs 

In the world of voice over, women make up 41% of the total workforce. Statistics show that women earn 91% what men earn within the same industry. 

This is debatable depending on whether or not they’re working through a voice over platform, which tends to operate with fixed rates, making it so men and women are in fact paid equally. 

 

How to do your bit to close the gender pay gap

If you’re a business owner with a diverse set of employees, analyse how you’re paying them. 

Is there a disproportionate salary paid to men that women don’t see within your organisation? If so, see how you can make systematic changes to level the playing field. 

In terms of how you can help bridge the gap for employees that don’t yet exist, consider doing the following: shortlisting multiple women for your next role, encouraging salary negotiation by displaying a ranged salary offer, and using skill-based tasks in the recruitment process, to name a few things. 

With the workforce becoming more and more diverse as we move forward, we should be paying any one with the right skillset equally, with salaries ranging according to expertise, not gender politics. 

Unequal pay in the workplace is unacceptable, don’t be on the bad side of history and pay your workers what they’re due, regardless of sex. 

 

Leading with loyalty: how to get the most out of your team

When you own a business, you may be constantly finding ways to increase revenue while decreasing costs. Although this can be a good idea for some aspects of your work, you may want to think about how you can get more out of your employees. Even if you give them a fair salary, people may still want to know that they are respected and valued within the workplace. Finding different ways to reward them, as well as to help them go further, can make a large difference to your internal operations.

Use incentives

Ultimately, an employee probably comes to work to be able to pay their bills and survive. Some may have become disillusioned with working life, especially if they have had bad experiences in the past. To motivate your employees to try and achieve more, you might want to think about the use of incentives. This could involve a bonus at the end of each month depending on performance, or even the opportunity to do something special. Christmas gifts and a paid day off on their birthday, as well as acknowledging the anniversaries since each employee started, may also be well-received. One great idea could be to use hellotickets.co.uk to find some local, inexpensive events that you could send your best performers to. You may find that this makes people want to work harder.

Focus on the team

Each individual you employ may have a set role within the company. Depending on workload, this may not provide much opportunity for your team to really get to know one another, or know who to turn to if they need assistance. It could be a good idea to book your employees on a team building event, during a working day, so that they can bond and become more of a unit, rather than a group of individuals. The benefits of doing so can be numerous, for both the company and its staff, and you may also find that you get to know more about your team as well. This can allow all employees, regardless of whether they are the newest starter or the most senior manager, to engage with one another on an even platform.

Praise freely

Work doesn’t need to be innovative to be good. Whether an employee has gone the extra mile to meet a deadline, or closed a tricky sale, they may greatly appreciate hearing that they’ve done a good job. Studies have found that employees may be more motivated if there is some recognition from those in places of power within a company. Even a ‘great job today, see you tomorrow’ as an employee leaves for the evening could make them feel more positive about their job. This could also really help to retain your staff, and give them a sense of loyalty to the brand.

While some members of your team may leave the company for genuine reasons, you may want to prevent them from doing so because they have lost faith in their work. Showing them that you genuinely care could be a great way to gain mutual respect and get more out of your employees.

Employees and Employers are Missing Out on National Insurance Savings

Following April’s National Insurance (NI) contribution increase of 1.25%, the anticipated rush of businesses implementing a salary sacrifice arrangement as a more efficient way for employees to pay pension contributions and help offset the rise, has yet to materialise.

Employee pension contributions get tax relief however both employees and employers pay NI on the pension contribution. Salary sacrifice for employee pension contributions is an agreement between an employee and their employer where the employer pays the employee’s pension contribution to the pension scheme in addition to their own and the employee’s wage is adjusted to reflect this. As the employer is paying the employee’s pension contribution, no NI is paid on this by either the employee or employer and hence both make a NI saving. The result is the employee benefits in a net increase to their take home pay.

Many employers do not allow employees to pay contributions via a salary sacrifice arrangement and this generally stems from a lack of understanding of how it works and the benefits it provides to most employees and employers.

Stuart Price, Partner and Actuary at employee benefit specialist Quantum Advisory, believes the pension industry needs to make employers aware of the benefits of a salary sacrifice arrangement for employee pension contributions and then support employers to help staff understand the system and the benefits to them. Stuart said: “As businesses and individuals feel the pinch with the increase to NI contributions and the impact of high inflation, salary sacrifice arrangements are an effective option requiring minimal effort to initiate.

“Adopting a salary sacrifice arrangement could make a real and noticeable difference for workers, in terms of take-home pay.

“For example, an employee on a salary of £30,000 paying a 5% pension contribution would see an increase in their annual take home pay of nearly £200.  For employers, the annual saving is compounded against all of their workforce; if an employer has 100 employees paying a 5% pension contribution with the average salary being £30,000 then the employer will save over £22,000 per annum.

“To help employees understand the concept, a simple communication that shows an individual’s payslips before and after salary sacrifice raises the awareness needed and provides workers with the facts, allowing them to see the financial benefits before making an informed decision about joining a salary sacrifice arrangement.”

For further information about salary sacrifice schemes and how your company can best utilise them, visit www.quantumadvisory.co.uk.

Kick start a career in the NHS by joining as a Clinical Support Worker – Open day at Maidstone and Tunbridge Wells NHS Trust on 11th June 2022

Clinical support workers assist healthcare professionals in the delivery of patient care, taking on tasks such as welcoming and preparing patients, explaining treatments and updating patient records[i]. The role is a great opportunity for anyone interested in working for the NHS to get their first step on the ladder.

Maidstone and Tunbridge Wells NHS Trust (MTW) is currently on a recruitment drive for clinical support workers and is hosting an open day on 11th June 2022 for people to find out more about what the role entails and what it’s like to work at the Trust.

People don’t need previous healthcare experience and joining as a clinical support worker could kick off a lifelong career in the NHS. It’s an opportunity to learn and develop acute care nursing skills, in a fast-paced, high patient turnover environment.

The Trust offers a supportive environment where staff members are given the chance to develop and progress their careers. New starters will attend the Trust’s Clinical Induction Programme which lasts for two weeks and involves travelling to both of the Trusts sites in Maidstone and Tunbridge, before starting work on the wards.

The open day takes place at the Reception Area, Main Entrance Tunbridge Wells Hospital, Tonbridge Road Royal Tunbridge Wells, TN2 4QJ on 11th June from 9am until 3pm. On the day there will be a presentation about the role and Trust, a tour of the hospital and the possibility of being interviewed for a specific role.

For more information on the recruitment event, job descriptions and main responsibilities– please click here – http://jobs.mtw.nhs.uk/job/UK/Kent/Maidstone_Tunbridge_Wells/Maidstone_Tunbridge_Wells_NHS_Trust/Tunbridge_Wells_Maidstone/Tunbridge_Wells_Maidstone-v4252681?_ts=1

MTW is a large acute hospital trust in Kent. The trust provides a full range of general services and some areas of complex care to around 760,000 people in the south part of West Kent and the north part of East Sussex.

MTW recently launched a major recruitment drive focused on clinical roles. This comes at an exciting time as the trust has invested in new facilities, service developments, training centres and digital transformations. To find out more about career opportunities, go to: Home – Maidstone and Tunbridge Wells NHS Trust (mtwcareers.com)

[i] https://www.healthcareers.nhs.uk/explore-roles/wider-healthcare-team/roles-wider-healthcare-team/clinical-support-staff#:~:text=Healthcare%20support%20wokers,dietetic%20assistant

[ii] https://www.mtw.nhs.uk/2021/10/mtw-hits-cancer-target-2-years-in-a-row-to-place-in-top-three-performing-uk-trusts/

[iii] https://www.england.nhs.uk/nhs-parliamentary-awards/

Important Tips to Choose the Right Payroll System for Your Business

So your business is on the ball, with payroll software already in place. But does it allow your team to handle the process with maximum efficiency? If you’re unsure, or simply haven’t thought about it for a while, it may be a good time to explore what else is out there. 

From the questions you should be asking during this search right through to finding a compliance-friendly solution, this article offers tips to help you choose the right payroll system for your business. 

How to Choose the Right Payroll System

If you’re spending most of your time and energy developing your brand — as is the case for most business owners — the last thing you want to worry about is spending hours trying to find a new payroll system. The following considerations will help to streamline the process. 

Start with a few basic questions

To know what you’re looking for in a payroll system, take stock of the current needs of the business first. Doing so helps with gaining clarity, making it easier to whittle down your options later. Consider the following questions:

  • How many users work with the software now? This helps to get a sense of the types of packages you should be considering. Most options will be priced by number of users or frequency of use. 

  • Is the software used across one company or more? If you’re using it for multiple companies, you will need to find a software that is licensed for this. 
  • How many employees are on the payroll every month? Some providers may cap this number in a bid to entice you to upgrade your package. If you’re growing the team over the next 12 months, account for this as well. 
  • What types of payslips do you use? Consider how these are delivered every month, double checking that the providers on your shortlist can accommodate for this. 

 

Decide how deep you want to go

Payroll systems come in an array of different packages, each of which boasts its own share of unique features. Depending on your answers to the questions earlier, you may require either a low or high level of analysis of payroll costs. Decide upfront how deep you want (or need) to go in terms of features and access to analytics.

From there, settle on a budget range you’re comfortable with. Don’t be scared to spend a little bit more, in order to tick all the boxes. Your shortlist of options should be starting to get a lot shorter by now. 

 

Evaluate the potential for third-party integration

A reputable payroll software provider will see integration with third-party programmes as essential to automating as much of the process as possible. Providers like QuickBooks have long championed this in a bid to stop users from having to manually import data from unsupported sources every month. 

Check in with your potential new provider about whether they offer third-party integration, and specifically which programmes are compatible with their software. Ideally, data will flow naturally from a variety of avenues, ready to be drawn together in a compact document every time you need to pull up a report. 

 

Choose a software that is regularly updated

Things have a tendency to change rapidly in the modern working world, so your new provider should be updating its software as often as possible. This should be done in a bid to keep up with technological advancements, but more importantly, should adapt to changes in compliance as well. 

Keeping track of pension scheme changes (for example) can be tedious, or worse – lead to mistakes generating financial penalties down the line. Although there are plenty of resources available to manage business compliance on your own, it does make life easier if your payroll system provider already considers this as part of their offering. 

 

With these tips in mind, you’re ready to start exploring the best payroll system for your business. Some providers offer an option to “try before you buy”, which is ideal if you’re not under any time pressure to make the switch. You’ll be able to make a thorough evaluation about whether it is a good fit long before you have to sign on the dotted line. With this in place, it won’t be long before monthly payroll is seamless every time.

Employment Law Changes are coming in April – Here’s what you Need to Know

Significant employment law changes come into play at the start of April, and it’s important for employers to be prepared.

Alan Price, CEO at BrightHR, looks at the changes that are coming and they impact they will have on businesses.

The National Minimum Wage and National Living Wage will increase from the 1st of April. New rates will be:

  • Age 23+ from £8.91 to £9.50 (National Living Wage)
  • Age 21-22 from £8.36 to £9.18
  • Age 18 –20 from £6.56 to £6.83
  • Age 16-17 from £4.62 to £4.81
  • Apprentice rate from £4.30 to £4.81.

From 3 April, family friendly payments will increase to £156.66 per week from £151.97, including maternity, adoption, paternity, shared parental and parental bereavement pay.

Statutory Sick Pay will increase on 6 April from £96.35 to £99.35 per week as well as the Lower Earnings Limit, which is increasing for the first time in two years, from £120 to £123.

Another change is the increase to National Insurance by 1.25%. Whilst there is no legal requirement to amend pay slips until 2023, HMRC have asked employers to include a specific message on payslips issued between 6 April 2022 and 5 April 2023 to explain this.

The increase to statutory rates comes at a time when many are already struggling with soaring costs and record-high starting salaries, as well as the ending of the SSP Rebate scheme which provided a lifeline for SMEs in the midst of Covid-related absences.

However, it’s important to remember that employers must meet these statutory rates; failure to do so could lead to damaged employee relations and tribunal claims being raised. Your business is also at risk of ending up on the Government’s Name and Shame list if you fail to meet NMW payments, which can cause significant reputational damage.

The right to work checking process is changing for individuals who hold a biometric residence card, biometric residence permit or frontier worker permit; these checks can currently be completed manually but, from 6 April, will have to be done through the Home Office online checking service.

Whilst undertaking right to work checks is a legal requirement of businesses, they must ensure they do so in a fair and non-discriminatory way. Employers must not make assumptions about a person’s right to work in the UK, or their immigration status in general, based on their nationality, race, accent, surname, or length of UK residence.

Job applicants can raise claims of discrimination to the employment tribunal if they feel the recruitment process discriminated against them, or if they were overlooked for a job opportunity due to incorrect perceptions of their right to work status.

And finally, gender pay gap reporting deadlines are also fast approaching. Large businesses (250+ employees) must report on their gender pay gap by 30 March for the public sector and 4 April for those in the private sector.

 

What You Need To Know About Paying Someone Who Isn’t On Your Regular Payroll System

Running a business can come with many problems, especially when it comes to outsourcing work and paying employees that aren’t on your typical payroll system. Setting up payroll can be difficult enough, but paying people outside of it can be a completely different problem. In this article, we will be looking at what a payroll system is, examples of people who may not be on your payroll and how you can pay these individuals in a secure and fast way.

What Is a Payroll System?

A payroll system is the way that you pay your regular employees who are contracted to work for you or your business. Once you are fully employing someone, you will need a system in place to keep track of their working hours, how much tax they owe and other financial information. As payroll software holds employees vital information, such as their full name, date of birth, how much they get paid and bank details, it’s vital that your system is secure.

However, when you run a business, you may find that you work with people on a one-off or even a monthly basis, which are part of your workforce. As these people aren’t technically employed by you or your company, you don’t need to have them on your regular payroll. However, you will still need to find a way to pay them, in the same secure way that you pay your contracted employees.

 

Examples of People Who May Not Be On Your Payroll

So, what are some examples of people who may not be on your payroll, yet you work with them regularly? A good example that falls into this category is medical or market research organisations which need to reimburse their research participants. Organisations such as this, or in fact, any that use volunteers on a regular basis, may find themselves having to reimburse them for their travel, food or accommodation expenses. This is typically done by the volunteers providing proof of purchase, such as receipts.

Another example would be freelancers, if your business regularly outsources some of your work to self-employed individuals, then again, you will have to pay them in a secure way, once they have invoiced your company. These freelancers could be working for your business on a regular basis, but not often enough that they require being on your payroll, nor they could be working on a more ad-hoc basis. 

Guest speakers can also fall into this category. If you work for a university, a place of education or a business which regularly invites guest speakers to talk at events, then you may find that these individuals charge for their time. Whether that be in expenses alone or through an invoice.

 

How To Pay Someone Who Isn’t On Your Payroll

Paying people who aren’t on your payroll can be a tricky task and with all our new technology surrounding payroll systems, you would think there would be an innovative way to do this. However, you will find that a lot of businesses are still paying people who aren’t on their payroll in the same, old-fashioned way. Whilst regular employees are being paid in a secure and efficient manner, typically freelancers, volunteers and contractors are not. 

Typically, a business will keep the names and bank information of the person not in their payroll in a spreadsheet or in a document, which is not completely secure, leaving the person’s details at risk. Furthermore, if the details are incorrect, one of your employees will then have to spend their time getting in contact with the individual to chase down the correct information. 

Until platforms such as vHelp, there was no better method for this. Now, as a business, you can reimburse anyone who works for you on an adhoc basis and who is not on your payroll, no matter who they are and what service they are providing! Through getting them to claim using reimbursement service such as vHelp you can pay them within 24 hours  in a secure way and reduce your payment processing admin time by as much as 88%.