Running a weekly payroll system is operationally very challenging. It requires you to follow strict deadlines to pay your employees on time. One of the main issues payroll managers encounter when running a weekly payroll schedule is to navigate around slow Bacs payment cycles of three days. We have explored the use of Faster Payments instead to gain flexibility around tight payroll deadlines.
To have people paid by Friday your payroll needs to be ready by Wednesday - be aware of bank cut-off times - which can be quite tight at times. Also, Bacs payments are cleared on weekdays only, which gives payroll managers even less time to process employees timesheets and submit payroll to HMRC.
“Accountants are on especially tight deadlines when hourly paid employees submit timesheets late, which unfortunately happens quite often. Telleroo buys us some extra time and provides more flexibility and breathing room!”
Chris Conway the Managing Director of Multiply Accountancy
The rise of temp staff workers in the country over the past few years has been yet another reason which has led accountants alike to rethink how payroll can be mapped to a set of different needs vs monthly payroll. The UK has already close to 1 million short term workers and this number is expected to go up even more over the coming years. This will put further steam into a changing payroll industry and will accelerate new models and suppliers.
One approach to cope with tighter weekly payroll deadlines is to simply replace slow Bacs payments with a quick & instant Faster Payments service instead. That buys you as much as three days, however, how can you take advantage of this?
Use the very same Bacs file that you would normally need to pass on to your bank or bureau and import to Telleroo - no reformatting necessary. Send multiple payments with one click via Faster Payments, instantly and around the clock. We also support other industry formats produced by accounting software such as Xero or Brightpay.
How long do Faster Payments take?
Funds take a few seconds to clear and are immediately visible in the recipients' bank account, unless the sending or receiving bank has limited access to Faster Payments which may cause delays. The system runs 24/7 including public holidays and weekends.
Watch out for heavy price tags on instant payments with banks as they do like to massively overcharge and some do even have lower Faster Payment limits than the service limit of 250,000 pounds.
We at Telleroo are committed to end this era of slow and expensive business payments to eventually level the playing field, and make business payments as effortless as consumer payments.