Key Features of a Pay and Bill Solution: A Guide for Recruitment Agencies

1. Payroll and Invoicing Accuracy

An effective pay and bill solution ensures timely and accurate payments for all contractors and temporary workers. Here are the key considerations:

• Accurate Payroll Processing: Ensure workers are paid on time based on hours worked, with flexibility for various pay frequencies (weekly, fortnightly, monthly).

• Real-Time Information (RTI) Reporting: The system should automatically submit payroll data in compliance with HMRC’s RTI requirements, avoiding penalties.

• Payslip Transparency: Provide detailed, transparent payslips that include client and project information, helping workers understand their payments and deductions.

2. Compliance with HMRC Regulations

Compliance with UK tax laws is non-negotiable. Here’s what to look for:

• IR35 and Off-Payroll Working: Ensure the solution handles IR35 compliance, including proper tax and National Insurance deductions for PSCs.
• AWR (Agency Workers Regulations): The system must track and apply AWR to ensure workers get the correct pay and benefits after 12 weeks of assignment.
• Pension Contributions and Auto-Enrolment: The system should comply with auto-enrolment obligations and automatically handle pension contributions.

3. Timesheet Management

• An integrated, efficient timesheet system helps streamline operations:

• User-Friendly Online Portal: Enable contractors to submit timesheets electronically, with real-time approval from clients.Mobile Access: Ensure both workers and clients can access and approve timesheets on the go.
• Manual Timesheet Management: Support manual entries and integrate them with the billing system for accurate invoicing.

4. Umbrella and PSC Support

For agencies working with contractors through umbrella companies or PSCs, the solution must provide seamless integration:

• Umbrella Company Integration: Easily manage payments and tax reporting for contractors working via umbrella companies.
• PSC Billing: Facilitate payments to contractors working through their own PSCs, including handling IR35 deductions when necessary.