Being paid cash/cheque and standing order

strawb_shortcake

Is it a little odd that an employer would pay staff a mix of cash and cheque (some months, employees would recieve both) and for staff with more fixed hours are paid by standing order definitely not BACS? 

The rationale for standing order is that those employees get the exact same money each month so as it never changes its the easiest way. 

The person I know that works under this system is part time and under all the NI/Tax thresholds, I have suggested they check the gateway account to see if any payments are being recorded and ensure it tallies with their payslip. 

I hope its all fine, but just seems a little bit unusual , is it? 

Many thanks 

pramsay13

It seems a little odd as it will make accounting a bit trickier using different payment methods, but nothing untoward. 

la531983

Their employer clearly has a cashflow issue. 

Marcon

la531983 said:

Their employer clearly has a cashflow issue. 

What makes you think that?

la531983

Marcon said:

la531983 said:

Their employer clearly has a cashflow issue. 

What makes you think that?

Paying by cheque. Gives them a day or so to get funds in to pay the staff.

Its the year 2024, the above is the only real reason they would be doing this.

strawb_shortcake

Thanks all,

The employee in question rejected a cheque last time and someone gave them cash, the manager had a moan to say it would have messed up the accounts and the accountant would need to do them again? 
They won't be working there much longer so not an issue for them much longer.

Brie

Does the money get counted out in front of them?  I wouldn't take it if it's in a sealed envelop and I have to trust that I've been paid the right amount.  

strawb_shortcake

Brie said:

Does the money get counted out in front of them?  I wouldn't take it if it's in a sealed envelop and I have to trust that I've been paid the right amount.  

I'm not sure, years ago that's how most people were paid in a sealed envelope 

General_Grant

annabanana82 said:

Brie said:

Does the money get counted out in front of them?  I wouldn't take it if it's in a sealed envelop and I have to trust that I've been paid the right amount.  

I'm not sure, years ago that's how most people were paid in a sealed envelope 

Yes, when I started work in 1964 the weekly staff were paid cash in sealed envelopes.  But I recall the notes (if there were any!) could be counted without unsealing the envelope because the corner of the envelope was open to the extent that the edges of notes could be checked.

And right now I know of an organisation with two salaried part-time employees who are paid by standing order (which is an FP/BACS payment).

Savvy_Sue

General_Grant said:

And right now I know of an organisation with two salaried part-time employees who are paid by standing order (which is an FP/BACS payment).

I suppose that could work OK for a part-time employee, except that if HMRC suddenly change their tax code and tax is due then that Standing Order may need to be changed! 

I'd hate to have anyone set up that way. Too easy to think "oh no change for Fred, and he's got a SO in place" and then find that there SHOULD have been a change for Fred!

Marcon

Savvy_Sue said:

General_Grant said:

And right now I know of an organisation with two salaried part-time employees who are paid by standing order (which is an FP/BACS payment).

I suppose that could work OK for a part-time employee, except that if HMRC suddenly change their tax code and tax is due then that Standing Order may need to be changed! 

I'd hate to have anyone set up that way. Too easy to think "oh no change for Fred, and he's got a SO in place" and then find that there SHOULD have been a change for Fred!

With two changes to NI in the last five months, a standing order is a daft way to do things.

la531983 said:

Marcon said:

la531983 said:

Their employer clearly has a cashflow issue. 

What makes you think that?

Paying by cheque. Gives them a day or so to get funds in to pay the staff.

Its the year 2024, the above is the only real reason they would be doing this.

Or they are in an area where most banks have closed and they can't readily access cash?