Did you know, that from 6th April 2018 – the start of the new tax year - pension contributions made by employees and employers will increase?
This increase is part of the Government’s ‘Automatic Enrolment’ pension scheme.
This scheme has been in operation since October 2012 for employees aged 22 and above, up to state pension age, whose earnings are in excess of £10,000 per annum.
The increases will mean that employees (unless they have opted out of the scheme) will see 3% of their earnings deducted, from source, towards their pension. It will also see employers now contributing 2%. These contributions can, voluntarily, be increased by either party.
Many industry insiders are concerned that many smaller businesses will struggle with the changes - both taking and making the right contributions automatically from source.
This is where, Calverton Finance’s PayFactory facility can help. It is particularly suited to recruitment agencies who are juggling many contractors, with differing amounts of pay, some payable weekly whilst others are monthly. Not of course, forgetting the new pension contributions – which will differ from contractor to contractor. Not only because each contractor earns a different salary, so even the minimum contribution is difference, but also because both contractors and employers can increase what they contribute – this could see, for example, Contractor A sticking with the minimum 3%, Contractor B increasing theirs to 4% and Contractor C increasing theirs to 5%. Somewhat of a payroll minefield!
Not, however, with our PayFactory facility. It takes away any stress in managing not only payroll but also any deductions – NI, holiday and sickness; and most importantly it automatically manages any changes to the system, including of course, increases to pension contributions.
What PayFactory Offers... a complete Back Office service:
Our team operates an efficient, successful and cost effective back office services. PayFactory manages every part of your back office accounts...
- PayFactory pays your contractors via BACS
- PayFactory posts contractors’ payslips
- PayFactory will produce P45s
- PayFactory raises your invoices and sends them to your clients (using your company headed paper and VAT number)
- PayFactory advances you payment against each invoice raised so your cashflow and working capital is maintained
- PayFactory chases payment from your customers, discreetly, on your behalf
We have the time to manage this effectively on your behalf. As a result your contractors will be paid on time, every time! This leaves you to do what you do best, recruit!
We provide detailed reports for quality control and to keep you totally in the ‘loop’.
We have a team of highly trained and highly experienced personnel who work with you as if they were an extension to your own team.
All works are undertaken with compliance firmly in place.
We help you to manage your tax with all the differing payments coming in and wages going out.
We provide legislation updates and automatically apply those that affect your business so you are not penalised or fined from official authorities.
Take for example, the rise that will happen in 2019. Companies will also see a rise in both employee and employer contributions – rising in April 19 - to 5% for employees and 3% for employers.
With this many benefits to your business, isn’t it time you thought about PayFactory?