M13......Using the CIL Payroll System(2)

7/30/2019 M13......Using the CIL Payroll System(2)

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13. Using the C.I.L. PayrollSystem

When you use direct payments to pay personal assistants you will have to

abide by several important responsibilities.

Taking on personal assistants means you will become a smallemployer

in your own right. You will have to recognise 6 important principles in this

process as an employer.

1) You will need to demonstrate to your Local Authority that you are

using the money legitimately

2) Therefore you will have to show that your employees are actually

registered with the Inland Revenue.

3) This means that in the first instance you must register with the Inland

Revenue as an employer and thereby receive an employers reference

number.

4) You will have to provide your employees with a regular record of theirpay, in other words a payslip.

5) The money your personal assistants earn must be subject to any

statutory deductions which the Inland Revenue tell you to make

6) You will have to repay these deductions to the Inland Revenue on at

least four occasions throughout the financial year.

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What the C.I.L. can offer you

It has been understood for quite some time that many people who want to

use direct payments feel apprehensive about the issues involved withwages, income tax and national insurance. It is recognised that this can

pose a barrier to developing direct payments. However, an employment

situation will involve these issues. It is, therefore, reassuring for people

wanting to use direct payments if they know the right support is

established for this financial aspect of employing their own PA.s.

The C.I.L.s Direct Payments Support Scheme has a payroll service as an

integral part of its support package. We believe it is a vital element of theDirect Payments Support Scheme. The payroll service is offered to all

users of direct payments referred to the C.I.L.. It is a free service to all

direct payment users for you to take advantage. It will take away some of

the concern over calculating personal assistants pay and any statutory

deductions which have to be made to employees, and much more.

Setting-up as an Employer

Before offering anyone a job as a personal assistant you have to be in the2


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legal position as an employer. That means that your local Inland

Revenue (Tax Office) must be informed that you wish to register with

them as an employer.

When you use the payroll service as part of the Direct Payments Support

Scheme we will automatically contact your local tax office to register you.

You will then receive communication from that office, providing you with

your own employers reference number.

This reference number will be important in everything you do as an

employer. It will be on all your correspondence with the Inland Revenue.

It will be on your paying-in book for payments to them. It will be a number

the C.I.L. will need for its payroll service

Registering your employees

When you take on new personal assistants the job will either be their only

job, whether part-time or full-time, or it will be classed a second job in

addition to their other employment. The Inland Revenue must be

informed whatever the basis of the employment. You have to find out

some details of a new PAs recent work situation along with obtaining

their National Insurance number.

There is an established procedure for this. New employees are required

to either give you a form P45 from their last job for you to send it to the

Local Tax Office, or otherwise to fill in a formP46 which you can give

them, and then send it on to the Local Tax Office.

The C.I.L. carries out this procedure as part of the payroll service. We will

send the appropriate forms to your new employees for them to complete

and return to our office. When we have confirmed that we have the

details of both, you the PA employer, and the personal assistants then a

payroll number will be set against your name.

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P 45 P 46either / or


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Using the Payroll Service

Using the payroll service is very simple, but it does require you to follow a

set procedure every four weeks. The payroll service is provided four

weekly, therefore to use it you will have to pay your personal assistants

every four weeks.

Each working week is considered as being from Monday to Sunday. We

supply you with time sheets which are set out over a four week period.

You need to keep a time sheet for each personal assistant over each

period.

On the time sheet you must enter:

the dates

your name

the personal assistants name

the rate or rates of pay

the number of hours worked

signatures

The Direct Payments Support Scheme payroll is based on the submission

of timesheets to C.I.L.. You must send the time sheets to the C.I.L. at the

end of the pay period. When we receive the payslips we will processthem for you, usually within one working day.

The Timesheet

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After each timesheet is complete, you can send, fax or e-mail the time

sheets to us. We must have time sheets and not figures because weneed to keep records too. If there is any confusion, we have a written

record with which we can consult with you or your PAs.

Paying your PAs

After submitting the time sheets to the C.I.L., your individual payroll for

your personal assistants will be processed. By return post you will receive

your payroll. This will consist of:

A payslip for each PA for the hours they worked in the fortnight

Photocopies of the payslips for your records

Photocopies of the time sheets for your records

A payroll summary & report for your records

So, as the employer, you will

have the payslips to give to

your personal assistants. You

are the person responsible for

providing your employees with

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their pay.

The amount you pay each personal assistant will be the net pay on the

payslip unless

there are other expenses which

you owe your personal assistant

which have to be added to it.

The payslip is, of course, accompanied by the

actual pay which should be in the form of a

cheque or money transfer from the bank account

set aside for direct payments. You will need to becareful in recording the transactions on the

counterfoils of the cheque-book or on any other

space set aside in the cheque book. These details

are:

the date of payment

person whom you paid,

actual amount

tax week

any extra that might have been paid on top of the net pay. such

as expenses

Keeping Records

The material sent to you along with your personal assistants payslips are

given to you so that you have records and proof of how the money is

spent. By being careful and orderly you can easily keep these details

together as each pay period goes by. You can receive training and help

from the C.I.L. in keeping these records in a fashion which will satisfy the

Local Authority that you are managing your affairs properly.

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Net Pay
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Inland Revenue payments

Along with paying employees, you have the duty of making regular

payments (known as returns) to the Inland Revenue on any deductions

from employees.

When money is deducted from a personal assistants gross pay for tax or

national insurance by the payroll it indicates this on the payslip. However,

for your part, you are only concerned each payroll with paying employees

the net pay. Of course, the deductions from your employees pay stay in

your bank account. They accumulate each payroll but have to be paid to

the Inland Revenue from time to time.

As part of the C.I.L.s payroll service we will inform you when you are due

to make a payment to the Inland Revenue (usually four times a year) and

the amount that is due. It is then your responsibility to use the paying-in

book which they will have supplied you with to make that payment. A

cheque can be sent to them or it can be paid in via a post office, bank or

internet transaction.

Operating your payroll yourself

It is perfectly feasible to operate your own payroll. The Inland Revenue

offer all new employers a start-up packwhich contains all the tables that

might be needed to calculate the deductions which should be made from

pay.

Your local tax office will send one of their business support team to help

you to get started with such a pack, providing instruction and guidance,

They will also run occasional free courses which you can attend.

The advantage of being in complete control of the payroll is that you do

not have to send in timesheets and wait for payslips to be returned. The

disadvantage of adopting this method of course is the amount of work

involved and the extra form filling which will be down to you. It is a slower

method which demands concentration and careful attention to recording

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figures from the tables provided.

In Summary:

By using the payroll, you can be reassured that: You will be registered with the Inland Revenue You have access to a regular payroll system with payslips

printed for your employees

You will be sent payslips and payroll summaries for yourecords

You will be advised about inland revenue payments in duecourse

You and your personal assistants can seek advice orinformation on from us on any payroll matter which might

arise.

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M13......Using the CIL Payroll System(2)

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