CONDITION FOR SUPPLY OF PAYROLL SERVICES FOR NANNIES AND OTHER DOMESTIC EMPLOYEES
1. Terms and definitions
The Supplier Salix Payroll Services Ltd
Service Year One year from the commencement or anniversary of the start of the contract
2. Contract Date
This contract will commence on the date of receipt of payment.
3. Supplier’s responsibilities
3.1. General
The Supplier will be responsible for arranging with the Inland Revenue to act as agent for the Client.
The Supplier will arrange for Tax and NI to be paid to the Inland Revenue on a quarterly basis if selected on the Registration Form.
The Supplier will register the Client for online submission of year end tax returns to the Inland Revenue, if requested on the Registration Form.
The Supplier does not indemnify the Client against non-payment by the Inland Revenue of the incentives for online registration.
3.2. Payroll
The Supplier will run the Client’s payroll weekly or monthly as specified on the Registration Form.
The Supplier will run the payroll up to 5 days before the payment date.
Changes in Tax code will be implemented by the Supplier within 2 weeks of receipt of notification from the Inland Revenue
The Supplier will prepare P45s for leavers and deliver to the Client with the last payslip, for issue to the employee.
The Supplier will provide a P46 to any new employee without a P45, and liaise with the Inland Revenue regarding its submission.
The Supplier will prepare P60, P35 and P14s at year end and deliver them to the Inland Revenue by 19 May each Tax Year. A copy of the P60 will be forwarded to the Client with the next payslip after this date, for issue to the employee.
Payroll transactions provided include:
1) Starters
2) Leavers
3) Overtime
4) Bonuses
5) Pay increases
6) Redundancy payments
7) Dismissals
8) Changes of tax code
9) Changes of employee name, address
10) Statutory sick pay
11) Maternity pay
12) Under/Overpayments
13) Advances
14) Student loan deductions
15) Payroll Giving
16) Backdated salary increases
17) Pensions contributions – employees and employers
18) Contracted out NI
19) Attachments of earnings
20) Child Support payments
21) Tax credits
The Supplier will retain all historic data pertaining to the employee from the commencement of the service until the data is 7 years old, whether the contract continues or not.
The Supplier will be responsible for preparing and submitting P11Ds to the Inland Revenue if required.
4.1. Payroll
The Client will deliver all changes except overtime by email or FAX to the Supplier by at least 2 calendar weeks before earliest payroll run.
All overtime details are to be delivered 5 working days before earliest payroll run date. Any information received after this date, may need to be held forward until the next payroll processing date.
The Client will be responsible for drawing cheques and making the payment to each employee.
The Client will be responsible for making payments for PAYE and NI on the due date to the Inland Revenue. The Supplier will not be responsible for any penalties imposed by the Inland Revenue.
The Client will be responsible for making payments of deductions made to any third parties, eg pension scheme providers.
The Client will be responsible for any Inland Revenue penalties or interest charges arising for periods prior to the commencement of the service.
4.2. Benefits in kind
The Client will keep records of any benefits in kind paid to the employee.
The Client will submit these records to the Supplier by the 6th April for the previous tax year. If these records are submitted to the Supplier late, and the Supplier is late submitting the P11D to the Inland Revenue, the Supplier will not be responsible for any penalties or interest charges raised by the Inland Revenue.
4.3. Payment
The Client will pay to the Supplier £120 including VAT for 12 month’s Service for 1 monthly paid employee, or £180 including VAT for 1 weekly paid employee. This payment is payable in full at the commencement of the contract.
The Supplier will determine the price of the service for second and subsequent years and invoice the client at least 1 calendar month before the end of the Service Year.
If the Client fails to make the payment in full by the end of the Service Year, the Supplier will not process the Client’s payroll until the Payment has been made.
The director and employees of the Supplier undertake to take all reasonable endeavours to maintain the privacy of the payroll records of the Client's employees.
If the employee leaves, and is not replaced, the supplier will refund a part of the Fee, proportional to any unused pay periods, less £30 to cover the costs of year end filing. In this event, the Supplier will continue to prepare the P14, P35 and P60 at the end of the Tax Year
The Client may terminate the contract during the Service Year by giving 1 month’s notice in writing to the Supplier.
The Supplier may terminate the contract during the Service Year by giving 2 month’s notice in writing to the Client.
In the event of the contract being terminated by either party, the Supplier will provide the following information for each employee at least 2 weeks before the termination of the Service:
In the event of Termination of the Contract during a Tax year, by either party, except where the Client ceases to be an employer, the Supplier will NOT be responsible for completing P60s, P35s or P14s. for that Tax Year.
In the event of termination of the contract by either party during a Service Year, the Supplier will refund the unused portion of the Clients Payment for the Service Year.
The contract will be void in the event of Salix Payroll Services going bankrupt, calling in the receivers, or on the death of the director.
In the event of any conflicts between this contract and any information obtained from the Supplier’s website or any other source, this contract takes precedence.
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