Paying for your wages?

daleyg75

Hi All,
Am very new to the site and never posted on a forum before. Last week my wife received letter from one of her employers informing her that as of Dec 1st her wage will not be paid direct from her employer but will be managed by a new payroll company called Priority Payroll Solutions Ltd . I have tried to Google all this but nothing comes up and their website is FAR from helpful. In the envelope there is also a letter from the new payroll company informing her that 'We charge an administration fee for the use of our service which is 4.5% of your gross income to a maximum of £21.00 each time we process your pay'. Employees are paid weekly with this employer. Am I reading this right? In the future is my wife going to have to PAY TO GET HER WAGES? Are people that work there full time going to have to pay £84 per month to get paid? This is over £1,000 per year just to recieve what you are entitled to. They promise my wife that she will be no worse off and that she is GUARANTEED to receive more money each week than through her employers current PAYE. It might be worth mentioning that she works 10 hours per week with this employer and is on a Basic Rate tax code as it's not her main job anymore. All help and understanding greatly received. Dale

tasha-debt

I think that you will find that the Employer will pay the 4.5% of the gross wages. We pay a % of gross salarys a month for our out sourced payroll.

Has your wife asked her employer, what have they said?

Thanks

daleyg75

Hi There,

Thanks for your response. My wife has called her employer and to be honest they are being extremely vague. She has also just this minute come off the phone from Priority Payroll Solutions who say that she wont have to pay because she works in the same city where her employers branch is while also vehemently saying she will be better off. Don't understand this. Am I right then in assuming that my wife (and all of her colleagues) shouldn't have received this letter? I do apologise if I appear ill informed but I am a self employed professional musician so don't have to deal with PAYE or anything like that so my knowledge is limited. Thanks in advance, Dale

DevilsAdvocate1

I think the company should be paying. We outsourced payroll at one company where I did the accounts, and it was the companies' money which paid the fees, not the employees. We did get the staff to start being paid monthly to help save us some money. The staff were happy to do this, so we were quite lucky.

I can't see why she would be better off though - surely she should be exactly the same as now?

daleyg75

Thanks Devils Advocate

This is what we couldn't understand (and why we were up 'til four this morning). Surely it is her company's responsibility to pay for payroll and not my wifes. When we get a proper response from her employer and the payroll company I will post what is said.
We also can't see how she will be better off (money wise) especially as my wife is on a BR tax code. Do Priority Payroll Solutions know a way of making BR a smaller percentage? I don't understand how they can say she will be paid more. She does get a mileage allowance at present of 35p per mile. PPS are saying she will be able to claim 45p per mile for the first 10,000 which I already know about from being self employed. Other than that I don't know.

tasha-debt

If your wife is on a BR tax vode I suspect that this new payroll company have reaslised this is a mistake and will be moving her to a proper tax code such as 747L (following receipt from the HMRC with the correct code), this may result with slightly less tax being deducted rom your wifes salary or maybe they have spotted another error on your wifes payslip.

I do not know of any payroll outsourcing compnaies who charge the employee, its always the employer who pays.

When is the first date she will be paid under the new scheme?

[Deleted User]

tasha-debt wrote: »

If your wife is on a BR tax vode I suspect that this new payroll company have reaslised this is a mistake and will be moving her to a proper tax code such as 747L (following receipt from the HMRC with the correct code), this may result with slightly less tax being deducted rom your wifes salary or maybe they have spotted another error on your wifes payslip.

I do not know of any payroll outsourcing compnaies who charge the employee, its always the employer who pays.

When is the first date she will be paid under the new scheme?

BR would be correct though as this is not her main employment.

4.5% Blimey need to put our prices up!!! :eek::eek::eek:

tasha-debt

Sorry, I missed that this was not her only job........ BR is correct.

LittleVoice

Sounds as though they are trying to use an umbrella company arrangement where the worker can be charged a fee for processing the payment.