Provision of Payroll Service
DD Payroll Services is a trading division of the Disability Syndicate Ltd. Registered Office 20 Royal Scot Road, Pride Park, Derby DE24 8AJ.
Limited Company Number: 08038048.
All profits generated from the service are used to support a charity – Disability Direct.
DD Payroll Services act in the capacity of ‘payroll agent’ for the client. The client is defined as the person employing staff. As payroll agent, DD Payroll Services is not party to any employment or other arrangements entered into between the client and employee and is therefore not responsible for fulfilling any statutory obligations or making any payment required by statute that may arise as a consequence of the relationship between the employer and employee.
The handling and processing of personal data by DD Payroll Services complies with the Data Protection Act 1998. The database holding client information is securely protected against unauthorised entry.
DD Payroll Services observes a strict duty of confidentiality and will not disclose information held by it to any person without the clients consent unless compelled to do so by law. However, information can be shared with the client’s Local authority, Her Majesty’s Revenue and Customs (HMRC), and those authorised to act on behalf/for the client.
DD Payroll Services will:
- Register as agents on your behalf with HMRC
- Provide you with payslips for your employees via email or post – duplicate payslips can be produced but may incur an additional fee.
- Calculate Tax and National Insurance contributions
- Ensure all other deductions have been made in accordance with statutory regulations e.g. student loans, CSA, fines, government deductions etc.
- Provide you with a payslip and envelope to submit payments for Tax and National Insurance contributions to HMRC
- Calculate annual leave entitlements for all employees
- Record annual leave and sickness (as informed)
- Provide all necessary documentation including p46’s, p60’s and p45’s
- Complete RTI tax returns as required by current HMRC legislation
- Submit monthly information to HMRC as required
- Make statutory payments when required e.g. Statutory Sick Pay, Statutory Maternity Pay, and Statutory Paternity Pay etc.
- Ensure minimum wage hourly rates (where selected) are increased in line with annual and age related increases
- Adhere to legal obligations and confidentially store records for up to 6 years
To enable a complete and accurate service to be provided, you will need to understand and accept the following responsibilities:
2. Submission of Hours
You must ensure the hours worked are submitted on time. All hours need to be reported before the pay date. The table below indicates the time periods for reporting purposes:
|Automatic Payrolls||Regular Payrolls||Nil Hours Worked|
|Only if any changes are required and at least 5 working days before the pay date||At least 5 working days before the pay date||If no contact is received by the client or their authorised nominee up to 5 working days prior to the pay date by DD Payroll, we will accept this as nil hours have been worked by the employee(s) and the relative submissions to HMRC will be made.|
Submission of hours should also include any holidays taken, sick absences, medical certificates where available, MATB1 forms for pregnant employees etc.
Where information is not submitted on time, it will not be processed until the following pay date where it will be combined with the information provided for that particular pay period. An additional charge of £10.00 will be incurred each time this happens. Alterations to the payroll information once submitted to DD Payroll, may also incur a charge of £10.00
Please be aware that if DD Payroll Services does not receive all payroll information required by the above timescales and consequently this is not submitted to HMRC by your payroll deadline, DD Payroll Services will not accept any liability for any penalties incurred as a result of this.
3. Automatic Payroll Runs
This is offered as an option, where the payroll will be run automatically for each pay period using the same information each time. This eliminates the need for you to make contact each time. You are however expected to make contact where there are any variations to the usual information. It is your responsibility to inform DD Payroll Services if you no longer require this service. Failure to do so will incur charges up to the date payrolls have been run and you will be liable for these charges.
If you do not make contact to inform DD Payroll Services of any variations, you remain liable to your employee for any underpayment or you have the responsibility to reclaim any overpayment from your employee, as the case may be. DD Payroll will not be liable for any over or under payments.
4. Pay Periods
You will need to select a pay period ie. How often you want your employees to be paid. The cost will increase with more frequent payroll runs. All pay periods administered are based upon calendar weeks or calendar months. An employee’s pay frequency can only be altered at the start of the new Tax Year. Please refer to www.ddpayroll.co.uk for further information on pay dates.
5. Number of Employees
You will need to provide details for each employee. You are able to have up to 4 employees at any one time without incurring further charges. An additional charge of £2 will be applied for each additional employee.
You will be notified of the payments due to the HMRC on a monthly or quarterly basis. It is your responsibility (unless you hold a managed account with us) as the employer to ensure that these payments are made and in a timely manner. DD Payroll Services will not bear any responsibility for HMRC penalties, interest charges or other costs arising from failing to make the payments on time or failing to provide DD Payroll Services with the hours on time, which then causes further delay impacting on HMRC payments.
All invoices for our services are produced and sent on a quarterly basis. All invoices must be paid within 30 days of the invoice date. Failure to pay within the 30 days will result in the suspension of any services being provided. This may result in monetary fines being imposed by HMRC which the client is liable to pay. Unhonoured and bounced payments will incur an additional charge of £10.00 on each occasion.
8. Submission of Updates & Other Information
You must provide details of any new starters and leavers during the month. The correct paperwork must be requested and completed for new starters.
All changes in circumstance must be reported which affect either you or your employees e.g. name, address, contact number, reduction / increase in funding, reduction / increase in contracted hours, change in hourly rates etc. Any increase to authorised hours must be verified by the appropriate local funding provider (i.e your local authority) before they can be accepted.
DD Payroll services will not be liable for the recovery of any payments made to employees who have left your service if you have not notified us of their leaving date.
9. Issuing Payments, Payslips & Other Paperwork
As an employer you must ensure that anything sent to you to be passed on, is done so in a prompt manner. You will be advised of the payment to be paid to HMRC, if due and must ensure that this is paid promptly (unless you hold a managed account with us). You must issue your employee/s with the payslips provided to you, together with wages as indicated and again in a prompt manner.
You must also issue your employee/s with p60’s and p45’s when necessary. P60’s are sent on an annual basis and you will receive these at the end of each financial year. The P60 indicates the total income and deductions for the previous tax year. P45’s are created for employees that have left and are sent to you with their final payslip. These indicate their earnings and deductions under your employment in the current tax year up until their leaving date. If you have not received your employee’s p60’s when due, you must contact the office within 4 weeks of your final payslip of the tax year, as duplicate documents requested after this deadline will incur a separate charge of £5.00 per document.
10. Employer / Employee Disputes
In the event of a dispute arising between a client and client’s employee, DD Payroll Services will act on the client’s instructions. However factual payroll information will not be unreasonably withheld from the employees who have a statutory right to access their PAYE records. DD Payroll Services also reserves the right to advise a client where the clients proposed course of action is in breach of his statutory obligations as an employer and to refuse to carry out any such instructions in such cases.
11. Checking for Accuracies
All payslips will be sent directly to the employer or a person nominated to act on their behalf. Payslips should be checked before payments are made. Whilst you are not expected to understand Tax and NI calculations, some errors are obvious e.g. 16 hours misheard as 60 hours will make a great difference to the payment due. Duplicate payroll runs will be completed free of charge for any errors made by DD Payroll Services. Other re-runs will incur an additional charge of £10.00. It is wholly your responsibility to check this.
12. Leaving the Service
It is the client’s responsibility to inform DD Payroll Services if the service is no longer required. Failure to do so will incur charges up to the date the payrolls have been processed and/or including submissions to HMRC whichever is the most recent. The client will be liable for these charges.
Transfer of payroll services will incur an exit fee of £25.00. DD Payroll Services will not transfer payroll information to another provider until all outstanding monies for our services have been paid in full. A notification period of 14 days must be received in writing to DD Payroll in order for this request to be actioned.
13. Other Employer Obligations
As an employer you also have the following legal responsibilities:
- Provide a contract of employment (within 2 months of the start date) containing legally binding terms and conditions. This can be arranged through DD Payroll Services. Please contact us for further information.
- Provide a job description detailing all duties
- Adhere to employment law regulations
- Adhere to European Working Time Directive regulations
- Provide grievance and disciplinary procedures
- Adhere to Health and Safety regulations
- Ensure staff are fully covered with Employers and Public Liability Insurance. This can be arranged through DD Payroll Services. Please contact us for further information.
Other non-legal responsibilities can include:
- regular supervisions and appraisals
- appropriate training
- DBS checks (formerly CRB)
Support in these areas is not included in the Payroll charge, however the support is available at an additional cost. Please see the separate leaflet enclosed in the starter pack detailing the assistance available and the costs.
RIGHT TO WORK
BY SIGNING THIS DOCUMENT YOU ARE ALSO CONFIRMING THAT YOU HAVE PERFORMED THE RELEVANT “RIGHT TO WORK” CHECKS ON ALL OF YOUR EMPLOYEES.
I …………………………………………. agree to the Terms & Conditions outlined in this document and would like DD Payroll to act as my Payroll Agent.
The ideas and methodology used within this document are completely copyrighted to Disability Direct. Any use of such ideas &/or methodology without the written approval of the Chairperson & Chief Executive of Disability Direct will be a breach of Disability Direct’s rights under copyright law.
Ó Disability Direct 2016