The Direct Payments Team has its own Payroll Support Service available that will:
- Produce 4 weekly payslips for all of your employees
- Calculate and report your PAYE and National Insurance contributions
- Complete all year end returns to HM Revenue and Customs
- Regulate and report on your employer responsibilities for Workplace Pensions
The Payroll service is available to all Direct Payments recipients at no extra cost.
You can only make a payment to your employee once you receive a PAYSLIP from the Direct Payments Team.
The Direct Payment Team operates a 4-weekly payroll system; wages are paid to your employee for hours that they have worked in the 4 week period prior to the pay date. Please see the Payroll Schedule.
You must ensure that you inform the Payroll Team of any changes to your Employee’s contracted hours before the Payroll Schedule date.
The Direct Payments Team cannot authorise use of surplus funds in your direct payments account. If you are experiencing a change in circumstances and require advice about using additional support over and above your assessed needs you must discuss this with a Social Worker before using any surplus funds from your direct payments account.
It is your responsibility to inform Payroll of changes by emailing email@example.com or leave a message of the changes on 0151 288 6074. Due to the volume of contacts for the deadline date, the Payroll Team cannot reply to all individual notifications.
Everyone who employs at least one person has to put eligible employees in a workplace pension scheme.
As a recipient of Direct Payments, the Payroll Team will help to support you in registering your employee(s), provide all correspondence you will need to meet your legal responsibilities and monitor your payroll for changes in circumstances.
If you employ your personal assistants directly, then the Direct Payments Team can assist you with Auto Enrolment. As there are strict deadlines in completing the staging process, any letters that you receive from the Pensions Regulator must be sent to the Direct Payments Team immediately.
Whether your employee works full time or part time, you will have to enrol them in a workplace pension scheme if they:
- Earn more than £10,000 a year
- Are not already in a suitable workplace pension scheme
- Are at least 22 years old, but under State Pension age
- Work in the UK
The contributions you are required to make under automatic enrolment are a cost of employing someone. This is in the same way as National Insurance contributions on their earnings.
The Council has calculated that the rate that you currently receive to provide your support will cover the pensions contributions that you will be required to make if your employee qualifies, as long as you:
- Are not paying your employees above the maximum hourly rate, as advised by the Council of £9.50 per hour.
- Are not using more than your assessed hours as agreed in your Support Plan
For further information about NEST visit www.nestpensions.org.uk
Your Employees are legally entitled to receive the Minimum Wage rate. This will increase annually in April in line with Government legislation. If you are unsure if your employees are meeting the Minimum Wage rate then you must contact your Payroll Support for advice.
The difference in the hourly rate paid into your account by Sefton and the rate that you pay your employees is your allowance for employers 'on costs'.
The employers 'on costs' ensure that you have enough money to cover:
- Holiday payments to your employee and also for someone to cover their time off
- Double time for your employee if they work on an ‘official’ bank holiday
- Redundancy cost should your Direct Payment cease – This is applicable only if your employee qualifies, you have purchased the appropriate Employers insurance and if you have sufficient on cost monies available.
- Employer’s National Insurance contributions of up to 13.8% dependent on your employee’s earnings.
- Workplace pension contributions of 3%. Your Payroll Service will ensure that you are complying with the New Government legislation.
If your Personal Assistant notifies you that they are terminating their employment with you, then they should give you notice as per their contract of employment.
Once your Personal Assistant has given you notice, either verbally or in writing, you must notify the Payroll Team who in turn will calculate the final payslip including any holidays owed.
You will be asked to complete an Employee Declaration Form which will generate a P45 to be sent directly to your employee.
If you wish to terminate your employee’s contract of employment, we strongly advise you to contact your Insurance provider first for advice.
Your Personal Assistant is entitled to 5.6 weeks paid leave per year based on their contracted hours. For example, if your Personal Assistant is contracted for 10 hours per week, they would be entitled to 56 hours’ Holiday pay per annum.
Holiday pay is NOT in addition to hours worked, it is a payment for time taken off during the year.
You have provision in your Direct Payment monies to cover your employee’s time off and also pay for another employee to cover the hours. For example, if your employee has 56 hours per annum holidays due then there should be enough in your budget to cover someone else to work 56 hours. If you recruit someone new during this period then you need to provide the Payroll Team with their details.
The holiday year starts on 1st April to 31st March the following year; all leave MUST be used within the working year and cannot be carried over.
In the year that your Personal Assistant started working for you, they will be entitled to 1/12th of their leave for every full month that they work for you. The Payroll Team will calculate your employee’s leave entitlement for you.
You must notify the Payroll Team the number of hours they would have worked on their leave day(s) and provide the name of the employee who covered the time off.
Please ensure that your Personal Assistant(s) have used their leave entitlement for the year before the 31st March.
Statutory payments are a legal entitlement to a certain amount of pay if your employee has to take time off work due to the following:
- Maternity / Paternity / Adoption
For further information on statutory payments visit www.gov.uk/government/collections/statutory-pay
You are registered as an employer with HM Revenue and Customs (HMRC), as you employ staff through the Direct Payments Scheme. With that registration, you now have responsibilities as an employer to:
- Make sure that your employee(s) payments are made
- Ensure that PAYE and National Insurance deductions from your employees’ wages are paid to HMRC on time when notified by the Direct Payments Team
- Confirm that all employee information given to the Direct Payments Team is correct to enable accurate reporting to HMRC i.e. Correct name and address
The Payroll Support Team will safeguard that you comply with all reporting legislation to HM Revenue and Customs.
Your employee will have PAYE and National Insurance contributions deducted off their wages as identified on their 4 weekly payslip. Their wages will be NET pay.
The Direct Payments Team will write to you to advise you of the amount that needs to be paid and you must ensure that this payment is sent to HMRC on a quarterly basis to avoid penalties.
Payments are due to HM Revenue and Customs by the following dates:
- 5th January
- 5th April
- 5th July
- 5th October
To make a payment to HM Revenue and Customs, you need to follow the instructions on the back of the letter. Payments can be made by Prepaid Card, Online, by telephone or through the Post Office. See HMRC payment options.
The Direct Payments Team will register you with HM Revenue and Customs when you decide to become an employer.
You will complete a series of forms with your Advisor. We will need the following:
- Your full name and address
- National insurance number
- Contact Details
The Direct Payments Team will be set up as AGENTS to act on your behalf in administrating your Payroll.
The Payroll Team will be sent an Accounts Office Reference and a PAYE reference. If you require this information you must contact the team.
To register a new employer, you must complete the following:
You need to advise the Payroll Team of your employee’s start date, contracted hours of work and their rate of pay.
All forms must be returned to:
Direct Payments Team – Payroll
Sefton Carers Centre
27-37 South Road
If you do not return all the forms by the Payroll deadline date, then your employee will be paid for all hours worked on the next payroll schedule.
If your Personal Assistant is employed to look after a child, then they must be DBS cleared before employment commences. For further information please contact your Direct Payments Advisor or alternatively email firstname.lastname@example.org