Being paid cash/cheque and standing order

MattMattMattUK

Very odd that any company pays using cash or cheque these days.

Check your HMRC online account and see if your Income Tax and National Insurance have actually been paid to HMRC. I strongly suspect that you are being paid "off book". 

la531983

Marcon said:

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?

And again, paying in cash is as archaic as paying by cheque.

SiliconChip

annabanana82 said:

...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. 

Payment by SO isn't really an issue, the money is transferred to the recipient through the Faster Payments system and for a small employer it may be easier to organise than to get themselves set up as a BACS Direct Credit member. Payment of a fixed amount might suggest that those employees are under a Net Pay Agreement.

penners324

SiliconChip said:

annabanana82 said:

...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. 

Payment by SO isn't really an issue, the money is transferred to the recipient through the Faster Payments system and for a small employer it may be easier to organise than to get themselves set up as a BACS Direct Credit member. Payment of a fixed amount might suggest that those employees are under a Net Pay Agreement.

Employer doesn't have to pay by bacs. Many now pay by FP.

Considering there are payroll providers out there that will take all payroll, pension & paye liabilities from the company bank account in 1 payment then pay all the payments out automatically, paying by cash / cheque seems ludicrously archaic.

MeteredOut

If this is a cash handling business, they may be saving money by not having to pay "cashing drop off" fees to banks.

So long as staff are getting paid what they're due, and all Tax/NI is being paid, payslips are all ok, I can't see anything fundamentally wrong with getting paid by cheque/cash, but, as an employee, I'd be looking out for delayed payments and would always look to have alternative employment opportunities lined up, just in case. 

It's not the most professional look for a compay.