BACS is the company responsible for the clearing and settlement of automated payments from one bank account to another.
BACS – that’s ‘Banker’s Automated Clearing Services’ – is the most popular method for sending and receiving payments in the world. Since 1968 over 100 billion transactions have been cleared using the BACS system – a testament to its ease and security. In fact, 2015 saw the first time over 100 million transactions were processed in a single day.
The current record, from October 2016, saw 109.3 million transactions take place in a 24 hour period!
BACS is a quick and easy way to pay employees, and is perfect for SMEs who might need some assistance with making their payroll run smoother.
By using BACS and taking away the manual element of the process, it can remove any potential human errors and ensures your employees will get paid on time.
As a fully licensed BACS bureau in the South East, PayAssist offers BACS help as part of our comprehensive payroll services.
Moreover, we can give you a choice of two ways to submit payments.
The first is to pay the entire payroll amount in one transaction into your PayAssist client account.
This has the benefit of just leaving one payment on your company bank statement, and means that there’s no record on it of each individual staff members’ salary. This protects everyone’s particular pay records from being seen by unauthorised staff members.
Alternatively, if you have a BACS Service User Number (SUN) for your business, we can transmit payments via BACS on your behalf direct from your bank account. This involves instructing your bank to link your SUN with PayAssist’s bureau number. Unlike the first method, this will show up on your statement as multiple transactions.
Money sent using BACS will take three days to move between bank accounts. Payments will be submitted on day one, processed by the banks on day two, and finally transferred on the third day (which will be the designated payday for your organisation).
BACS can be used for paying salaries, PAYE and other tax, and pension contributions.
Paying employees by BACS is much cheaper than paying by cash or cheque and is a lot safer and more secure.
It’ll also save on in-house administration, and is much less time consuming than making individual bank transfers or writing out a cheque for each employee.
Moreover, using BACS will help to improve cash flow. You’ll always know when wages payments are made and will receive instant confirmation of payment.
Implementing BACS as part of an outsourced payroll service – such as that provided by PayAssist – allows handover of responsibility for the complete payroll process from start to finish.
If you’re not yet using BACS for your payroll and are interested in implementing it, contact PayAssist for further information. We can offer it as part of a full outsourced payroll service that takes care of all facets of payroll.
As well as BACS this can include: pension auto-enrolment, distribution of secure electronic payslips, compliance with the national minimum wage, and the generation of customised financial reports.
So give us a call today on 01825 746877 or fill in our form to receive a free, no-obligation quote for your business.