Payroll services for schools in the UK are provided by several different payroll service providers. These include the main payroll provider, the independent payroll services provider and the contract payroll services provider. While academies may be able to choose one of these providers, they may also need to consider the other two. In this article we will look at some of the different aspects of these payroll providers and what role they play in the UK schools sector.
The first thing to consider is the role that these payroll services play in the wider context of the education sector. Schools are not an exception to the rule that while working towards improving performance they must also save as much money as possible. Thus the need for these two types of payroll provider arises.
In a fully managed payroll system the schools would have a single point of contact where they would get all their information about their pay and tax liabilities. This would include not just their statutory deductions and other employee benefits but also their salaries. They would be able to submit their payroll electronically and have it reviewed and processed by the software. Once approved, the payroll would be submitted to the local authority for processing and the payment of its members. In the UK there are separate bodies for the processing of this payroll which include the Local Employment Service (LEAS) and the National Employers’ Association (NEA).
Payroll Services Provider
However, in the case of schools there are no provisions for a central administrative unit to handle their payroll. This is why the role of the schools’ payroll services provider is quite different from the fully managed option. In such a scenario there is need for a payroll services provider who can take care of the entire process. This is where the next roll of the payroll services for schools comes into play.
The first thing that schools will have to deal with is the creation of the framework agreement. This is a document which is designed and created to define the scope of the contract which the payroll services for schools will be offering. This is where the schools and the HR department will go through a detailed explanation of the services that are meant to be provided. There will also be a section that clearly discusses the payment mechanism, the deductions and other employee benefits that are applicable. In fact there are sections for each and every benefit that would be coming into the offer.
It is very important for the school to ensure that the entire framework agreement is reviewed well before signing the document. The details of the clauses and the benefits outlined shall be mentioned in the document along with the respective penalties that will be levied if any of the clauses are not properly understood or agree with the current accounting systems in place at the school. The entire document should then be put to vote and if it is found to be in compliance with the law then the payroll service provider will be legally liable for providing the payroll services for schools as well as the provision of statutory deductions and Sick leave.
Payroll Service Companies
The next part of the process is the creation of the payroll processing service contract. Here the details of the services provided by the payroll service provider will be discussed and the rates charged for each service will be negotiated. In fact the entire document will be put through a full edit and a few additions should be done here and there so as to ensure that the document is complete and void of any discrepancies.
The contract for payroll services for academies shall also be put through a full edit where all corrections that might be required shall be addressed. Once the entire payroll service contract has been put through, then the academies will start getting contributions from the various payroll service companies.
The final step involves the introduction of the payroll software and the payment system that will be used for the payroll services for schools. The software will be used to create the month wise and yearly report cards along with the statement of accounts. The user of the payroll software shall also be given the ability to manage the employees, their hours worked and also make necessary changes in the payroll records. The managed payroll service provider will be able to provide all this without any special technical knowledge. This will definitely simplify the whole process of running an institution of this nature.