Bacs Approval makes payroll a whole lot simpler
Not all payroll providers have Bacs approval. But does that really matter? At Perfect Payrolls we believe that Bacs approval and efficient payroll services go hand in hand. A Bacs Approved Payroll Bureau can save you a whole lot of stress and hassle by making electronic transfers on your behalf.
When you choose a Bacs Approved Payroll Bureau they will be able to make payments to your workforce, to HMRC or for Student Loans, taking away the need for cumbersome cheques or needing to call on someone in-house to make the payments.
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Bacs explained
Bacs stands for Bank Automated Clearing System and is a structured payment system that’s used to move money from one bank to another in the UK. A system that’s been up and running for around 50 years, is made up of sixteen of the UKs major banks and building societies and is fast, safe and trusted.
Why choose a Bacs Approved Payroll Bureau and what you’ll need to do
In a nutshell, when you work with a Bacs Approved Bureau your payroll becomes even simpler than it is if you just outsource your payroll. Making this choice makes your payments simple, fast, secure and flexible. To make it possible, you need your bank’s approval. Getting that isn’t difficult, but you will need to prove a good financial track record and demonstrate that you keep your accounts in order.
Direct Credits versus Direct Debits
Direct Debits are commonly used by businesses, but it’s Direct Credits that are processed through the Bacs system. Direct Credits are an ideal way for employers like you to send money to your employees, to HMRC and any other third parties. When you choose a Bacs Approved Payroll Bureau like Perfect Payrolls, you can enjoy the peace of mind that someone else is looking after your payments for you.
Service User Numbers (SUNs), why they matter and how to get one
If you’ve already heard about the Bacs system, then you may well have heard about SUN numbers. If you’re authorised to use the Bacs system, then you’ll have a SUN number. It’s a unique number that identifies your business. When you authorise a Bacs Approved Payroll Bureau to make payments on your behalf, you’ll need to provide them with your SUN number.
If you don’t have a SUN number, you can ask for one by contacting your bank and asking them for an application form.
Frequently Asked Questions (FAQs)
When you choose a Bacs Approved Payroll Bureau it means you relieve yourself of having to make payroll payments to your employees, to HMRC and to any other third parties to whom you’re due money. The bureau will make the payments for you, safely and securely.
Getting approved to make Bacs payments on behalf of our clients is a long and drawn out process. And quite rightly so. It involves checking security – both online and at our premises. The inspectors check our systems and procedures with a fine tooth comb as well as our software systems.
Once authorised, the checking isn’t over. There are then audits which make sure we’re doing things correctly on an ongoing basis.
The vast majority of major UK banks are in the system. But if you’re in any doubt, the best thing to do is contact your bank to ask, or ask us - we’re almost sure to know.
If you’re new to the Bacs system and have just asked for approval, you’ll be keen to know when you can pass over the responsibility for payments to your new bureau. Normally approval takes just a matter of days, but if you’re in a rush, you should let your bank know so they can do all they can to speed up the process for you.
Like most transactions, Bacs payments usually attract a small bank fee. There’s normally also a small fee for setting you up on Bacs. If you’re concerned about the possibility of high charges, you should check with your bank before proceeding with an application.
Money usually takes around 3 days to work its way through the Bacs system. Day 1 is when submissions are made; Day 2, the processing gets done and on Day 3 cleared payment is normally received.
When you choose Perfect Payrolls we’ll provide you with a report called Bacs Arrangements, that shows all the payments that have been set up in the Bacs system. Once the payment button has been pressed, you’ll get a report called Bacs Issues, confirming that payments have been processed. You’ll get both of these delivered online.
We do all we can both in the setting up of our systems and in our procedures to make sure problems are kept to a minimum. Also, with the Bacs Arrangements report, you get a chance to spot any problem ahead of time. Although problems are rare, they do happen and we’ll provide you with all the support you need to resolve them. Your bank will also normally help.