This article gives guidance on how to manage PAYE workers that you are putting through the Sonovate platform
Contents:
- Types of PAYE and getting set up
- Key timelines
- Setting up workers and assignments
- Billing and payments
- FAQs
Types of PAYE
There are two types of PAYE arrangement that Sonovate can support:
- Where we pay the gross worker payments to you, for you to do the deductions yourself
- Where we calculate the deductions on your behalf, pay the net pay to workers, and pass the deductions on to you
This article is primarily concerned with the latter
Getting set up
If you would like to run either type of PAYE through Sonovate, then you'll need to let us know so we can set you up.
Key timelines / SLAs
The following are important timings for payroll:
- Assignments - For payment in the same week, assignments must be set to live (i.e. timesheets sent to the worker) by Tuesday 11am
- Timesheets - For payment in the same week, timesheets must be fully approved by Wednesday 1pm
- Holiday pay / sick pay - For payment in the same week, any non-rate payments (such as holiday pay and sick pay) need to be requested by you via email, to paye@sonovate.com no later than 12pm on Tuesday
- Billing takes place at 2pm on a Wednesday
- Payments
- To you - margin will normally be paid on Thursday. Payroll deductions from your workers will be paid to you on Friday
- To your workers - payslips will be sent on Thursday; payments to workers will normally be made on a Friday
Setting up worker and assignments
To process PAYE on your behalf, we need some extra data about the workers. Broadly this is:
- Personal details such as NI number and date of birth
- Personal bank details
You can either provide these details via the assignment when you've got a job to process, or you can get your workers set up in advance - whatever is easier for you.
You won't be able to send out timesheets for a PAYE assignment until we have all the relevant details.
Holiday pay
When adding rates to the assignment, you will also need to tell us which of the rates, if any, accrue holiday pay, and how that holiday pay is to be paid.
- If the rate does not accrue holiday pay (e.g. an overtime rate) then select "no"
- If the rate does accrue holiday pay, then you have two options:
- Option 1 - the worker will get paid holiday pay when they claim it. To use this option, please note the following:
- You must request holiday pay by emailing paye@sonovate.com
- If enough holiday has been accrued from time worked, the holiday pay will be paid in the next payroll
- Example:
Emma requests 2 weeks of holiday pay from you. You email the PAYE team to request this. If she has accrued enough holiday pay, she will get paid her 2 weeks in the next payroll
- Option 2 - a holiday pay uplift has already been applied to the rate. To use this option, please note the following:
- Holiday pay will be included in the pay rate, so your worker will receive an element of holiday pay each time they submit a timesheet.
- Option 1 - the worker will get paid holiday pay when they claim it. To use this option, please note the following:
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- Your worker will not receive any additional holiday pay payment when they actually take leave, as the holiday pay is included in the pay rate.
- Example:
Jack's pay rate includes holiday pay, so every time he submits a timesheet, he receives his holiday pay included in his payment. He doesn't need to request it separately, and won't receive a separate holiday pay payment.
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Payroll frequency
NB - the timesheet frequency you select will determine the payroll frequency of the worker e.g. if you want them to be on a weekly payroll, then make sure they are on weekly timesheets. This is important because it determines how much tax allowance they will receive in a period.
Once the timesheet checklist above is all ticked, you can issue the timesheets to the worker.
Billing and payments
Once timesheets have been submitted and approved, they will be billed. Please note, PAYE timesheets can only be billed via an automated billing run at 2pm on Wednesdays. Other timesheets (e.g. for Ltd company contractors) can be billed at any time.
Once billed, the timesheets are awaiting deductions. We will reserve the gross worker payment off your availability, allowing you to be paid your margin the same day. This will appear as an adjustment on your account.
Once the PAYE deductions have been calculated, we will put the gross pay back onto your account, and remove the net pay, leaving you with the deductions, that will be paid out at the end of that day.
Payments to you and your workers will show on the Payments Out screen.
The normal timeframe for payment will be:
- Thursdays - margin payments to you
- Fridays - net payments to workers and deduction payments to you
FAQs
- How do I request holiday pay or sick pay? Any non-rate payments (such as holiday pay and sick pay) need to be requested by you via email, to paye@sonovate.com no later than 12pm on Tuesday
- How do I notify Sonovate that my worker is a leaver? All requests for leavers are to be emailed to paye@sonovate.com to be actioned.
- Do I need to fill in any additional forms when I have a new starter? No. everything is completed via the Sonovate Platform. See above for setting up workers and assignments.
- How do I process a bonus? To process a bonus or any other one-off transaction, please refer to our help article on this topic.