HOW TO PAY A TEMP MEMBER OF STAFF

[Rea]

Hi everyone, we have got a member of staff working with us, 10 hours a week just until July.

 

I'm quite happy to write a cheque each week for her wages, she doesnt have another job and pretty sure she doesnt claim benefits.

 

Our treasurer is worried we'll be breaking some laws by not using our payroll company to do her wages properly, but to be honest, we're in the process of changing them so I dont want to set her up with them for just a month!

 

Is it ok to pay her as temporary staff? The cheques will be signed by 2 people, the money will be declared as temporary staff and everything will go to our new accountant to comb through.

 

Any thoughts?

[Mouseketeer]

I wouldn't do that Rea, add her to your payroll and pay as casual staff, she will still be entitled to holiday pay, it could have insurance implications if she had an accident or an allegation was made against her and she wasn't employed correctly, even her tax position might not be straight forward, I know it's a hassle, especially in light of changing payroll but is it worth taking the risk ?

Edited January 26, 2016 by Mouseketeer

[BroadOaks]

Hmm What Mouse said.. that sounds like the best option..

 

OR - is she willing to go self employed for a few months? That way you simply pay her for her services and she will invoice you. To be honest as long as you declare the expenses you should be fine with the tax man. It is up to the worker to declare anything she earns if not employed by you. She would also need her own insurance i guess?

 

It would be pretty much like using a recruitment agency.. and no holiday pay

Edited January 27, 2016 by BroadOaks

[diesel10]

Add her to your payroll, she can't be self employed in the eyes of the taxman.

[Rea]

Thanks guys, I've sent the message ::1a

[BroadOaks]

Add her to your payroll, she can't be self employed in the eyes of the taxman.

 

I do not understand this? The taxman has nothing to do with how you employ staff? They are interesting in how much tax you owe and how much you pay. If this is a service or for wages makes no difference?

 

Unless you could explain what you mean please? It might help me understand, due to a self employed cleaner we use, ie a SERVICE we pay for...

[SueT]

Hi Broadoaks - just pulled this from the .gov website www.gov.uk/employment-status/selfemployed-contractor

 

"A person is self-employed if they run their business for themselves and take responsibility for its success or failure."

 

 

You have to be very careful about paying people on a self employed basis unfortunately, so I would advise this person is placed on your payroll.

 

Sorry!

[diesel10]

Hi Broadoaks.

 

If your cleaner can choose when they clean, can sub it out to someone else if they want to, and invoice you they are self employed. They would need to have their own insurance as well and possibly supply all their own equipment if someone was being really picky.

 

If none of this applies you need to employ them.

[BroadOaks]

Thank you for the information. i will give my interpretation below:

 

Self - employed - when you employ yourself and take care of your own business.. whatever that may be.

 

So if i want to offer my services as a self employed Childcare Practitioner, i would simply offer this service. I would be responsible for my own insurance of course, and i would invoice for the time and rate i agreed prior. I would take care of my own tax and NI. i would mutually agree holidays or time off, and even have this in writing in the form of a contract if required (although it isn't.) If i am not available for any reason, then i would be in breach of my contract and my services could be terminated.. depending on contract. this is not hard to set up.

 

Your company would be employing a service just like any other, like a Refuge Collection, or PHS services etc.. where you will have a contract and if they breach it, you can terminate, or vice versa. Your company would not deal with this services holidays or insurance etc..

 

 

So therefor in the eye's of the taxman, if all done correctly, they would not have a problem.

[BroadOaks]

Now that we have established that yes you could go down the self employed route, it is not the best option for all concerned. To employ somebody is the best option where employment laws are concerned although this also has it's drawbacks.

 

You would need to employ somebody on a temporary contract. The problem is a temporary contract does not actually exist in the eyes of the law. You would need to make sure you follow all the correct procedures when it comes to terminating this contract. trust me when i say it is not that simple! We use Peninsula and we have needed to use them a few times recently.. so i know what i am talking about regarding "temp contracts".. it would need to be made VERY clear and have GOOD reasons!

 

Remember we are all people and the government might set certain rules, this is primarily to protect the finances they receive and secondly to protect workers/people. it is much harder to regulate self employed people, and much easier to get everybody onto the payroll system and collect revenue.. thus employment is how it is and encouraged. It also protects businesses and workers by having employment laws in place in association with it. Although self employed people also could have the same protection. i say could because it depends on the contract.

 

Yes employment contracts and the system works well.. but it can be a nightmare for employers right!

 

Weigh up the positives and negatives yourself!

Edited January 29, 2016 by BroadOaks