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
- Setting up workers and assignments
- Billing and payments
- Other things to be aware of
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.
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.
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.
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
Other things to be aware of
- 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
- We are not currently able to support bonus payments. This will be supported some time in Q1 2025.