A Question

theblessedone

Is is illegal to pay someone via a Payroll, who does not carry out work in relation to the company?

Moreover, if this person is carrying out work for a fellow employee and that employee is having money deducted to cover the cost of the non-employee, is this correct?

I might be missing a key point here, but surely if an employee is carrying out duties which do not benefit the company in anyway and these duties relate to helping an employee of the company with their personal issues in their spare time, is that not breaching some form of employment law?

zugzwang

If it's illegal to be on the payroll and contribute nothing to a business whatsoever, I can think of a rather large number of long term offenders.

double_mummy

theblessedone wrote: »

Is is illegal to pay someone via a Payroll, who does not carry out work in relation to the company?

of course not what about people getting sick pay or maternity/paternity pay what work do they do in relation to the company?

When_the_going_gets_tough

It all sounds a bit backwards - if the company are paying this individual I would say there is a contract of employment between them and the person even if another person is paying separately for their work. Does it matter though? Who is being disadvantaged by this rather unorthodox arrangement?

theblessedone

The employer is paying costs such as employers NI and the individual would be subject to Auto Enrolment too, which means employers pension contributions would be due too, which in turn means the employer is at a disadvantage at this stage as we're paying costs for an "employee" who's only job is assisting an actual employee relating to personal matters.

What I can't understand, is why the employee who is actually working for the company, won't register as an employer as she has somebody working in her home? What possible reason would you avoid registering as an employer?

Takeaway_Addict

theblessedone wrote: »

The employer is paying costs such as employers NI and the individual would be subject to Auto Enrolment too, which means employers pension contributions would be due too, which in turn means the employer is at a disadvantage at this stage as we're paying costs for an "employee" who's only job is assisting an actual employee relating to personal matters.

What I can't understand, is why the employee who is actually working for the company, won't register as an employer as she has somebody working in her home? What possible reason would you avoid registering as an employer?

are you the employer?

What does it matter? The arrangement is made by those above (if that's not you).

cazziebo

Not that unusual in private companies to have people on the payroll who do no appear to work directly in the company. Some of the work I do is valuing businesses and I'll find business owners drawing relatively modest salaries, then find the spouse, offspring, paramour etc also on the payroll as "advisors",'business development directors" and all sorts of creative titles!

Until quite recently, MPs would employ families on expenses, even although the family member might be a full time student or employee elsewhere!

Quite legitimately, the company may employ someone with the responsibility for general welfare or career coaching or similar who appears detached to the business but in truth performs a valuable role for it.

colino

Since the Arctic Systems case you really need a better class of accountant to work around HMRC.