Payroll Bureau Charges

Stewart · Posted: Tue Sep 07, 2004 4:32 pm Post subject: Payroll Bureau Charges

As a bureau I was hoping to maybe get some feedback here from other bureaus regarding this question.

At present I ask our clients to pay there invoices within 30 days, Iam considering asking the clients to pay us by direct debit or bacs etc. As they seem to be slow payers when it comes to sending in cheques.
How do other bureaus collect there fees

Has anyone considered sending the charge of the payroll service invoice amount via the clients bacs thus paying the bureau charge when the employees get paid Exclamation

Any ideas?
Thanks Stew Rolling Eyes

Hugo Fair · PayPerShop Regular Joined: 22 Jul 2004 Posts: 73

Fairly obviously, this is a commercial policy issue for which there is not a single correct answer.

Most bureaux get around this issue by invoicing 'in advance', say for the estimated charges of the next quarter, and then on each subsequent invoice adding (or deducting if appropriate) a 'balancing charge' based on the actual charges due for the last quarter.

You should still have payment terms in your Agreement Conditions (and payment of invoices within 30 days is fairly standard). When combined with invoicing in advance, you will know if there is a 'timing' problem before it becomes an issue for you.

The key is to retain control (i.e. if you don't receive payment then payroll will not be processed)!

There are options such as the one you mentioned (i.e. "sending the charge of the payroll service invoice amount via the clients bacs thus paying the bureau charge when the employees get paid") - but these will only help if you are registered as a 'BACS Bureau' (i.e. you are actually paying the client's employees and then taking the amount direct from the employer via BACS).

There are of course many other permutations, as there are with any consideration of pricing and/or payment terms, but you need to work out the correct answers for your company (after taking into account your business model, competitive factors, etc).

keyur778 · PayPerShop Member Joined: 18 Jun 2007 Posts: 57

This is mainly depends upon client relation which mean how both of you fair to each other.

If client delay the payment every time then you can ask them to pay you by Standing Order (Direct credit in your bank account) every month same amount and settel the account every three month through the Invoice.

So you can have the amount regulary and client also will be happy to pya this way so he or she doesn't have to pay the money at one go which give them less burdon at the time of settle the account.

Make sure whatever the amount you get through standing order it is not too high so you have to pay them back or no too low so when you settle the account at that time its difficult to pay by client.

After all everything depends on mutual understanding.

Keyur Patel