The benefits of choosing a Bacs Approved Payroll Bureau
When you are choosing your payroll provider, one thing to look out for is whether they have Bacs approval. A Bacs Approved Payroll Bureau will make your payroll a whole lot less stressful by making payments by electronic transfer on your behalf. Using the Bacs payment system, an approved bureau will be able to settle payments due to your employees, HMRC and any other third parties, for example Attachment of Earnings or Student loan payments. When you choose a Bacs Approved Payroll Bureau like Payplus, we will:
Make payments direct to your employees
Settle amounts due to third parties
Remove the need for online or cheque payments
What is Bacs?
Bacs is a payment system that’s used in the UK to directly move funds from one bank account to another. Operated and managed by Bacs Payment Schemes Limited, the system has been in place since the late 1960s. A company that is made up of 16 of the UKs leading banks and building societies, Bacs is fast, safe and secure.
Why use Bacs?Here are just some of the reasons why your business would benefit from using a Bacs Approved Bureau:
• Simple – easy to use.
• Fast – letting you hold on to your cash longer.
• Efficient – removing the risk of cheques getting lost.
• Secure –make payments with confidence.
• Flexible – enabling payments to be made by an approved bureau, so you don’t have to.
Direct Credit or Direct Debit? – solve the dilemma
Most business owners are familiar with direct debits. Used for the payment of utilities, credit cards and other day-to-day expenses, direct debits are accepted as being safe and convenient.
Direct credits on the other hand are less well known. Made via the Bacs system, direct credits allow employers to send money to their employees, HMRC and other third parties to pay their dues.
When you choose a Bacs Approved Payroll Bureau they can make payments directly from your account for the payroll payments you need to pay.
Can I use Bacs in my business?
You need your bank’s approval order to make Bacs payments. Bank sponsorship to the Bacs system isn’t particularly onerous, but will require you to have a good track record and to have kept your accounts in order.
What is a Service User Number (SUN)?
A Service User Number (SUN) is a number that Bacs issues to business owners who use their system. This is the number that identifies the business. When you choose a Bacs Approved Bureau, you’ll need to give your SUN number to them so they can make payments on your behalf.
How do I get a SUN for my business?
Obtaining your SUN is part of the approval process undertaken by your bank. When you have been approved for Bacs payments, your bank will provide you with an application for a SUN.
How long does it take?
In most cases, getting approval to make Bacs payments doesn’t take long. However, like most things in life, some banks take longer than others. The best way to get fast approval is to approach your bank in person and ask them to accompany you on your journey.
Is my bank part of the Bacs system?
All major UK banks based in the UK are part of the Bacs system. While not every bank is guaranteed to be part of the scheme, you will find that the majority are.
Will I get charged for using Bacs?Banks make a charge for setting businesses up on the Bacs system and then a small charge for transactions made. Prior to embarking on a Bacs application, your bank will give you details of the charges.
What is a Bacs approved bureau?
A Bacs Approved Bureau is a bureau that has been inspected by Bacs and accepted into their system. Initial inspection by Bacs is a rigorous process and even once you have approval, Bacs make regular audits that make sure that your procedures and security arrangements are squeaky clean. At the end of the day, a Bacs Approved Payroll Bureau is handling client money, so these checks are what you would expect.
When you choose a Bacs Approved Bureau like Payplus, you know that they can make payments safely on your behalf. Outsourcing this task not only saves you time and money, it means you can pass the stress to someone else.
How did Payplus become Bacs approved?
In order to achieve Bacs Approved Bureau status, Payplus went through the Bacs rigorous approval process as part of our Payplus payroll service. The first thing they look at is security. They make sure that our premises are secure as well as verifying the security of our systems. Thereafter all operations and procedures are checked for suitability. And of course they verify our software to make sure it meets their requirements.
Once they had approved us they do ongoing, regular audits to make sure that we remain worthy of that approval. This means that Payplus is now on the list of Bacs Approved Payroll Bureaux where you’ll find details of our parent company Virtual Business Source Limited in our listing.
How long do Bacs payments take to process?
Bacs payment cycles are typically 3 days long. On the first day, submissions are made. On day 2, those submissions are processed and on day 3, cleared payment is received.
What reports can I expect?
When you choose Payplus, you’ll get a report to confirm the payments that have been input into the Bacs system. Afterwards you’ll get a report to show that those payments have been processed. These reports are called Bacs arrangements and Bacs issues respectively and both will be delivered via our online portal.
Will I get help if there are problems?
Because you are advised in advance of payments being made, problems tend to be rare. However, if there are issues, Payplus will provide you with support and your bank will also help resolve any issues.