Using one of our payment service options can save time and worry; it is not always practical for some organisations to have additional internal authorised personnel available to make payments at the particular time(s) of the month when payroll-related payments need to be processed.
BACS Payment Services (3-day process)
Biznus Payroll has teamed up with a licensed BACS-Approved
Bureau (BAB), to provide this additional service to our
payroll clients. This means if you are a registered BACS Direct Credit
Scheme user we can transmit payments via BACS on your behalf.
BACS – formerly known as “Bankers’ Automated Clearing
Services”, is the process used for making payments directly from
one UK commercial bank account to another UK bank account.
How it works…
Following payroll processing you will receive a BACS report detailing the
amounts due to each employee contained in the electronic BACS submission file for you to review and approve.
Once you approve, we transmit the electronic file through the secure portal to BACS. On your defined payment date (Pay Day) the amounts will credit the employee and / or HMRC bank accounts.
Your designated Primary Security Contracts (PSC’s) registered with BACS will receive notifications confirming the payment transfers.
They may also receive notifications of payments that fail (ARUCS) and get returned or those that have been redirected due to a change of bank details for an individual who may have changed banks using a switching service (AWACS). These must not be ignored, and any updated information must be relayed back to payroll, ideally before the next payroll processing date.
There are many benefits to using BACS, here’s some good operational reasons to use BACS: –
◼ No secure access or irregular access to internet banking.
◼ No multiple payment or payment file import facility available via the existing bank system.
◼ Convenience, one less task to worry about each pay period.
◼ Availability of a trusted member of staff to input and make the bank payments.
◼ Removes the need to manually re-key payment data and the potential errors.
◼ Salary payments made via BACS include a “hash” cross-reference that links with the RTI payroll data submitted each pay period to HMRC, this is needed so that HMRC can match the payments individuals receive and provides additional verification about the amount paid to an individual to assist DWP’s administration of Universal Credit (UC).
Faster Payment Service (Same day process)
Biznus Payroll has teamed up with a 3rd party provider to be able to offer a faster payment service.
The big difference between BACS and Faster Payments is the time needed to process the payments, with the faster payments being able to be processed on the same day.
How it works…
You will need to register with our chosen 3rd party provider and essentially open a bank account with them, once approved your account will be live in our agent portal as well as your own unique client portal.
You will need to fund this account with the amount of money to cover the payroll costs, usually net pay total and HMRC’s liability for us to upload the list of payments to be made for your approval. Once you approve the payments in the account portal the payments are sent to credit on your chosen payment date, which can be the same day.
There are many benefits to using Faster Payments, here are some good operational reasons: –
◼ No secure access or irregular access to internet banking.
◼ No multiple payment or payment file import facility available via the existing bank system.
◼ Payments can be made on the same day as processing the request payments.
◼ Availability of a trusted member of staff to input and make the bank
◼ Removes the need to manually re-key payment data and the potential errors.
