I have a payroll client who pays monthly. I usually charge a monthly amount of £20.00.
But the client cant always pay a family member on the usual date due to cash flow. As I dont know when the family member will be paid I leave it and do a second payroll separately. Would you charge again for another pay run??
If they are experiencing a cash flow problem, the added expense of an additional payroll may become a problem. Let them know that for a limited time you will waiver your fee for this employee but you are doing so only to help out.
Of course we are all in the business to make money.... but also to maintain a good working relationship with our clients, so on that basis I would not make an addition charge.
Hi
A couple of things come to mind here as well as the issue of your fees. For example is the family member a genuinely employed member of staff? If so and they are not getting paid does the employer not then fall foul of minimum wage regulation. Or are they getting paid every month but it could just be a different date? If the latter is true I would run the payroll with this person on it, alongside the others as then there really is no need to run it separately is there? (On or before). But if you were to do another payroll then I would be charging at least something. Whilst I agree we wish to maintain a good working relationship, if I didnt charge all my clients who were having cash flow issues I wouldnt be earning much money at all. If anyone should be giving a 'freebie' it should be family rather than a professional providing quality services. We could be in danger of saying our services are of no value or looking like we are already overcharging for the one you do charge for and setting a precedent.
If you have to charge less - I would make it clear on each and every invoice - adding a clause to show its a short term measure and when you expect charging to be re-introduced fully.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
