You're right Peasie, the actual filing of the data is no extra time and it largely depends on the eventual penalty regime and on the circumstances of each particular client on how onerous RTI becomes and therefore how much fees will change.
Take Amanda's case. As there are 10 employees, the client is likely to need to contact her most weeks with some variation or other, so as a matter of course, there is an implied confirmation that the payroll will be reasonably accurate.
The new burden that I've bored everyone silly with is when there isn't such regular contact in place. Payroll in such circumstances can currently be done far more cheaply and accurately long after the event (when the quarterly books come in). To institute a penalty-driven weekly deadline may mean a meaningless exchange of email/texts/phone calls, in advance and you can bet apathy will set in and presumptions made.
Another scenario is, I regularly do two weeks at Christmas and summer holidays in advance and then make any adjustments when I get back. If there are say, 4, 5, 6 error weeks allowed, under the eventual penalty regime then no harm done.
My view basically though is that weekly employers and small employers should not be burdened more than monthly and larger ones.
Tim
Edit spelling.
-- Edited by Don Tax on Thursday 14th of February 2013 06:56:02 PM
I know this has been covered before but I can't find exactly what I am looking for. I am taken on a new client from April for PAyroll, and its weekly payroll for 10 employees. I am undecided how to charge as at the moment I only do Directors of small companies and they are all monthly. (I use 12 Pay).
Any help with this would be great as I have to send them a quote. (its mine anyway but like to do things properly).
Not answering your question, but I wouldn't mind knowing how much extra time submitting the extra information will take. I'm not talking about the set up info. But if the payroll is being prepared will it just be a case of clicking send and it taking a couple of minutes. In which case it isn't really going to be that much extra. I was thinking along the lines of quoting a price per payslip and then a percentage discount based on number of employees (into bands of 5 employees.....5-9, 10-14, 15-20, 20-24, over 25). There would be an upfront set up fee - originally I had intended building it into payslip price until RTI came along.
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Never buy black socks from a normal shop. They shaft you every time.
I too am worried about weekly payroll - I do one for a pub which has a Sunday as week ending and they send the pay details to me at the latest the following Thursday but it can come in any day, I don't currently know what day they pay but suspect different employees get paid on different days due to shift patterns. Also will have the holiday problem they've recently gone away for two weeks and estimated the hours. I did three payroll runs (two in advance) so I guess under RTI I would have to use backup and restore to file at the correct times. More difficult will be if I'm away without internet access.
I was considering advertising for small employers who I fear may have difficulty but have decided it would probably be more bother than its worth
I know what you mean about the holiday, at the moment I don't take my laptop with me, but I can see I may well have to, mind you last year we didn't have internet access so I don't know how that will work.
At the moment I only do a few directors payslips and they are the same every month so its no problem to deal with. But with a new weekly one god knows how its going to work, also some of he hours change as well.
What do you currently charge for payroll if you don't mind me asking? And are you adding some extra on when RTI comes into place?
Thanks for your help.
Regards,
PS I'm the same as you Sheila, I haven't advertised payroll for the reason above as I was wondering if it will be too much hassle.
Well what do I charge for payroll shall we say it depends - I do a monthly one for a hairdresser and I charge usual hourly rate because it's not straightforward due to also having to work out various different commission on top of monthly salary - I made a spreadsheet which originally took ages because the various levels of commission are based on individuals takings with different percentages and retail sales. For the pub I currently charge £1.50 per payslip they have 3 pubs so despite problems (getting employee details) it's easy money(I charge extra for original set up and I charged for year end on top). Even though the hours vary each week it only takes about 15 mins to enter and email payslips and reports. Others are done monthly with the book-keeping. Don't know what charges to make for the odd one or two though to make it worthwhile whilst affordable that's why decided against it.
Well I have now phoned uped HMRC as I am worried about the potential holidays etc and they said its okay to do to 2 weeks at the same time and if there are any alterations ie sickness then that can be altered on return from holiday on the next pay run. If this is the case then thats makes life abit easier regarding small companies payroll who have a few employees. Maybe I might push the payroll again?
Maybe someone else on here might want to phone HMRC to see if you get the same answer, you know what they are like giving different answers all the time!
Hi Amanda, you could prepare the payroll in advance in 2013/14 without filing a submission till you get back from holiday. Although the RTI rule is 'on or before' there is a breathing space with no late filing penalties till 6 April 2014.
There will be no change to the penalties for late filing of returns for the tax years 2012-13 and 2013-14..................
.........................To avoid a late filing penalty for 2012-13 and 2013-14, they must report the final payment made to an employee or pensioner by 19 May following the end of the relevant tax year................."
There are penalties for inaccuracies from 6 April 2013 though so it is almost better not to file until you are certain the payroll is 100% correct.
