With the impending pension changes – the Government’s Automatic Enrolment scheme – in April, there’s no better time for recruitment agencies to switch to Calverton Finance’s PayFactory facility.
Did you know?
The contributions made by ALL employees and contractors, from 6th April 2018, will see contributions raise to 3%. This contribution will be taken directly from source, which means you, as an agency, will have to make the deduction.
Perhaps this wouldn’t be such an arduous task if it was a blanket 3% across all contractors, however it is far from straight forward. Not however, if you use the PayFactory facility.
Why? Well, that’s because our specialist recruitment agency PayFactory facility deals with all aspects of payroll – and that includes pension contributions.
An unmanageable beast?
The new regulations around deductions could prove to be an unmanageable beast to many SME businesses. That’s because each contractor can choose to increase their own contributions – some might opt for the standard 3%, others might go for, say 5%.
Then of course, some of your contractors are paid weekly, others monthly. Not to mention the fact that every contractor earns a different amount! PayFactory’s systems are fully operational to make a myriad of individual changes and amendments to varying pay.
What is PayFactory?
- PayFactory acts as your back office – it pays all your contractors via BACS, it distributes pay slips, produces P45s, managing sickness pay, annual leave and National Insurance contributions.
- PayFactory acts as your in-house credit control department – it raises client invoices (on your own headed paper and VAT number), it even advances you payment (up to 90% within 24hrs) on each and every invoice you issue, despite any late paying customers. It chases payment on your behalf and once received, issues you the balance of the invoice.
- PayFactory is compliant – it issues comprehensive reporting for your quality control procedures, all works are carried out in accordance with the very latest compliance regulations and any compliance and legislation updates are automatically applied.
Smaller businesses are expected to struggle with these new pension changes. Mostly it’s because a ‘one size’ does not ‘fit all’. However, by choosing our PayFactory facility this minefield of pension contributions will be a breeze!
This leaves you the time to focus on running your agency. Pitching for new business, winning new contracts, taking on additional contractors – in short, making your business run successfully and making a profit!
And don’t forget... this Automatic Enrolment scheme is set to change again in April 2019!