As a staffing agency owner, your biggest concern is making sure your employees get paid on time - always. In this article, we’ll discuss a tool that will help you get the funds to meet payroll every time. We’ll also talk about a financing tool that will let you take on new contracts, even those that you think are too big and can’t possibly afford to win. This financing tool is easy to qualify for (it’s NOT a business loan), can be set up in days and can give you all the necessary funding your staffing agency needs.
This tool is called invoice factoring, and also referred to as receivable factoring. This financing is not offered by a bank, but rather by a factoring company.
If you are like most agency owners, your problem is not lack of work or customers. I am sure you have plenty of both. Your biggest problem is that your customers take between 30 and 60 days to pay their invoices. But, your employees need to be paid weekly (or bi-weekly). And unless you have a fat bank account, the math does not work. Sooner or later, you’ll run out of money.
But what if you could eliminate slow paying clients? No, I don’t mean that you should stop doing business with them. I mean, what if you could turn them into quick paying clients? What would happen to your business if every client was guaranteed (yes, guaranteed!) to pay you in 2 business days? How many of those clients could you take?
Let me have a guess. You could take as many of those clients as you could get your hands on.
By factoring your staffing agency receivables, you can turn your slow paying invoices into quick paying invoices. The process is simple:
1. You do your work, as usual. You bill your customer but then submit a copy of the invoice to the factoring company for financing
2. The factoring company provides you an immediate advance on 90% of the invoice. You can use that money to meet payroll and pay expenses
3. The factoring company waits to get paid by your customer
4. Once they are paid, they rebate the remaining 10%, less their fees
The main requirement for factoring is that you do business with good paying customers. If your customers pay regularly (but slowly) you can almost always qualify. And as opposed to a business loan, your personal credit is usually not an issue.
So, if you own a growing staffing company, be sure to consider invoice factoring.
Image courtesy of Vichaya Kiatying-Angsulee at FreeDigitalPhotos.net
Source: Office for National Statistics
Job title + Salary
1. Chief executives and senior officials
3. Marketing and sales director
4. Aircraft pilots and flight engineers
5. Financial managers and directors
6. Production managers and directors in mining and energy
7. Legal professionals
8. Information technology and telecommunications directors
9. Financial institution managers and directors
10. Functional managers and directors
Brought to you by a payroll jobs consultant in Bisley.
The employment legislation (Employment Rights Act 1996, sections 13-16) sets out rules for the “protection of wages”. These statutory provisions apply to “workers”, defined as employees and anyone else who works under a contract, other than a person who is self-employed. The rules also, therefore, apply to agency staff, trainees, apprentices, fixed-term workers and contract workers. As a result, this article refers to “workers” rather than just “employees”.
The legislation prevents your employer from making deductions from your wages other than in certain defined circumstances. There are three specific situations where lawful deductions may be made. These are:
You will note that these situations all have two things in common:
Information about each of the different kinds of deductions is provided below. And, at the end, suggestions are made about what you can do if you think your employer has acted unlawfully or unreasonably.
The first deductions that your employer may make from your gross pay – assuming you have previously authorised the deductions in writing – are one or more of the following:
Then, your employer must calculate the income tax and National Insurance contributions (NICs) that are due on your earnings for the pay period. These deductions are permitted because they are required by law.
From what is left of your earnings after tax and NICs have been deducted, your employer must, if relevant to you, make the following deductions that are also required by law:
Voluntary regular deductions
Any further voluntary deductions may be regular, i.e. deducted every time you are paid, or one-off. In either case, to be lawful, any such deductions must be authorised by a provision of your employment contract or by a document that you have signed in advance.
Common examples of regular deductions are:
Under separate trade union legislation, it is unlawful for an employer to make a deduction of an amount that would be a contribution to a trade union’s political fund if the member has instructed the employer in writing not to make the deduction.
Deductions in retail employment
There are special rules that apply to deductions for stock deficiencies and till shortages in retail employment. The rules do not prohibit such deductions where there is provision in the employment contract for them to be made. Rather, the rules regulate the arrangement, requiring proper notice to be given of the amounts to be deducted and limiting the amount of the deductions.
One-off deductions may be voluntary or compulsory and are often linked to termination of employment. Again, they are only lawful if they are defined in your employment contract or if you have given your signed agreement to them. Examples are:
But note that deductions that are punitive in nature are only likely to be lawful if the amount of the penalty is a reasonable reflection of the actual loss to your employer. For example, if you should have given four week’s notice to leave your job and you only gave two week’s notice, and your employer deducted two weeks’ pay from your termination pay, that may not be lawful if the employer’s monetary loss caused by you leaving early was less than two week’s pay.
Your employer is also considered to have made a deduction from your wages if you are paid less than you are entitled to be paid under your contract. However, such a deduction would not be treated as unlawful if the underpayment was due only to an error made by the employer in calculating your gross pay.
The employment legislation also defines a number of kinds of deductions that fall outside of the statutory restrictions on deductions. In other words, your employer may make any of the following deductions without authorisation under your employment contract or without your written permission in advance:
There are other issues involved if your employer wishes to recover an over-payment of wages or expenses. See the FAQ – Can my employer recover an over-payment of wages from my next/future wages?
Making a complaint
Before making a complaint, check carefully whether or not your employer is entitled to make the deduction that you are concerned about. In particular, you should look to see if there is a provision in your terms and conditions of employment that allows your employer to make the deduction. Such a provision might appear in:
If there is a specific written contractual provision that allows your employer to make the deduction, the deduction is lawful.
If you still believe that a deduction was unlawful, unless it is one of the exempt deductions listed above, you are entitled to make a complaint to an employment tribunal. Before making a complaint, you should endeavor to resolve the problem by following the stages of the your employer’s grievance procedure, including making an appeal if your employer does not accept your grievance. If you have not followed the relevant stages of the grievance procedure, the employment tribunal may take that into consideration when determining the amount of any award.
A complaint to an employment tribunal must be made within three months of the date that the deduction was made or within three months of the last of a series of deductions, unless it was not reasonably practicable for it to be made within that period of time. You do not have to have worked for the employer for a minimum period of time, and you do not have to be under a certain age. An employment tribunal may not award more than the amount of the deduction(s), although future changes in the legislation will allow tribunals to award compensation for any financial loss you may have incurred as a result of the unlawful deduction.
If you are aggrieved about a deduction that is one of the exempt deductions listed above, you cannot make a complaint to an employment tribunal. A tribunal will refuse to hear any case that is brought for one of the exempt deductions, even if your complaint is not against the fact of the deduction but, for example, against the manner in which the deduction was handled.
Your only recourse in the case of an exempt deduction is to sue your employer in the civil courts, e.g. the small claims court. You should take proper advice before taking such action, e.g. by visiting your local Citizen’s Advice Bureau (CAB). Information about the advice services offered by CAB are available at www.citizensadvice.org.uk.
Unemployment in the United Kingdom fell by 60,000 between October and December to 1.69 million, according to the Office for National Statistics.
The rate of unemployment did not change from a month ago at 5.1%, maintaining a 10-year low rate.
More than 31.4 million people are in work, the highest figure since records began in 1971.
Pay increased by 2.0% during the period, very similar to the growth rate between September to November 2014 and September to November 2015, which was 1.9%.
The number of Britons in work increased by 278,000 in the three months to the end of December, to 28.28 million, while for non-UK nationals, the figure rose by 254,000 to 3.22 million.
Wales, the North East and North West recorded the largest drops in the rate of unemployment, all falling more than half a percentage point. The North East still has the highest rate, at 8.1%, and the South West the lowest, at 3.7%.
There were 5.35 million people employed in the public sector in September 2015, according to ONS, down 59,000 on a year earlier. It is the lowest figure since comparable records began in 1999, the ONS says.
Last month, Bank of England governor Mark Carney signalled that a rise in interest rates won't be imminent as global economic growth slowed.
Unemployment in the EU dropped in December to its lowest rate in more than four years, despite worries about the global economy.
Eurostat, the EU's statistical agency, said the jobless rate in the 19 country eurozone had fallen to 10.4% from 10.5% in November.
News source: bbc.com.
A lot of companies have been questioning if payroll outsourcing services is right for their business. Firstly, you have to know about payroll outsourcing before you try and hire an outsourcing company to do the payroll for you.
First of all, you first have to know what payroll outsourcing is. Payroll outsourcing services are outsourcing companies that will calculate your company’s payroll, print and deliver checks to your company, adhere to the latest tax obligations, and also provide management reports.
So, why not just hire your own controller and manage your company’s payroll? Why hire a payroll outsourcing company to do this for you?
There are so many factors that you should consider on why you should hire payroll outsourcing services for your company. First of all, if your company is rather large, it will be recommended that you should hire a company that offers payroll outsourcing services.
The first thing you have to ask yourself is if either you can handle all the calculations and details of your payroll with precision, on time, and accurate. If you are not confident making the payroll, you will need to hire a company that offers payroll outsourcing services.
The second thing you have to consider is the size of your company. Since making a payroll means that you have to make individual computations for your employees, a company that has a particularly large numbers of employees (more than 20 people) will need to hire a payroll outsourcing services. Besides, you don’t want to burden yourself with computing the amount that each of your employees will receive.
You also have to understand all of the details involved in a filing your payroll taxes as a company and for each of your employees. If you don’t understand the details, you better get payroll outsourcing services. You don’t want to get in to trouble related to taxes and you definitely don’t want yourself and your company be investigated by the IRS.
Payrolls are what employees look forward to every month. If you can’t handle making the payroll on time, it is wise that you should hire a payroll outsourcing company. You definitely don’t want a group of disgruntled employees outside your door asking when their paychecks will arrive. By hiring a payroll outsourcing company, you can be sure that you and your employee’s paychecks will arrive on time.
By outsourcing your payroll, you will be sure that the computations will be precise, accurate and on time. You’ll never have to worry about late payments for your employee and never worry about computation problems again that may get you into trouble.
There are a lot of payroll outsourcing companies offering their services today. You have to choose a company that offers great quality in their work and offers it at a very reasonable price. It is also important that the company should provide maximum security in dealings.
These are some of the reasons on why you should hire a payroll outsourcing services. With this, you will be able to focus more on your role in the company and you will also be confident that the payroll you will have will be precise, on time and accurate. So, if you have a particularly large company, and you don’t understand how a payroll works, you should consider hiring a payroll outsourcing services.
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