Ensure your employees are paid on-time, everytime
A key part of running a payroll service is having an efficient , secure method of paying your employees. The RA Payroll team has many years of experience of running payrolls for clients is also a BACs Approved Payroll Bureau, which means that we can make secure electronic payroll transfers on your behalf.
What is BACs?
BACs stands for Bank Automated Clearing System and is a structured payment system that’s used to move money from one bank to another in the UK. As one of the UK’s favourite ways to pay staff and employees, it’s a system that’s been up and running for around 50 years, is made up of sixteen of the UKs major banks and building societies and is fast, safe and trusted.
What are the benefits?
- Time, cost and cashflow-saving aspect compared with paying staff by cash/cheque.
- Reduces time taken to administer and reconcile your payroll
- BACs removes the hassle of physically arranging payment.
- Helps us in preparing your payroll data
How do I use BACs?
There are two ways of using BACs: one is for taking money via Direct Debit and the other for paying it via Direct Credit. For paying wages, suppliers etc, you’ll use the Direct Credit system. For that, you’ll need the name of each payee’s bank, the amount to be paid, their bank account number and their sort code.
To access the system and send a payment you need to use approved software. You can buy this yourself or you can choose an approved bureau which already has a licence to access the system – such as RA Payroll.
Once the payment details are sent, the BACs system distributes the data to each bank ready for the money to be debited from your account and credited to the payees.
How long does BACs take?
Money usually takes around 3 days to work its way through the BACs system. Day 1 is when submissions are made; Day 2, the processing gets done and on Day 3 cleared payment is normally received.
Do I get reports regarding payments?
When you choose RA Payroll we’ll provide you with a report called BACs Arrangements, that shows all the payments that have been set up in the BACs system. Once the payment button has been pressed, you’ll get a report called BACs Issues, confirming that payments have been processed. You’ll get both of these delivered by your Payroll contact.
How secure is BACs?
BACs uses SSL encryption, is password protected, is constantly monitored and is only accessible via software pre-approved by BACs.
Find out more about RA Payroll services
RA Payroll is a BACs approved bureau and can provide a full range of payroll services. If you would like to find out more about our payroll and BACs capabilities, please get in touch with the Payroll Team.