Payroll Service
We offer a payroll service for both direct payment recipients and those funding their own care.
Do I need to use a payroll service?
What information will Disability Derbyshire need to set up my payroll?
What information do I need to send to Disability Derbyshire?
What happens if my employee is off sick?
What happens at the end of the tax year?
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Do I need to use a payroll service?
You will need to register as an employer if any of the following apply:
• The employee already has another job
• They are receiving a state or occupational pension
• You're paying them at or above the PAYE threshold (details of the current threshold can be found if you click here)
• You're paying them at or above the National Insurance lower earnings limit (details of the current limit can be found if you click here)
If none of these apply then you don't need to register as an employer or register your employee with HM Revenue & Customs. You will still have to provide your employee with a payslip for each payment.
If any of the above do apply you will need to register. You can either use a payroll service or process the payroll yourself. If you would like to process the payroll yourself you can find support details from HM Revenue and Customs if you click here.
Disability Derbyshire offers a payroll service, the details of which can be found below. Paypacket is another payroll service processing direct payments payrolls. Paypackets website can be found if you click here.
What information will Disability Derbyshire need to set up my payroll?
We will need to know:
• Your contact details—name, address and telephone number
• The rate of pay - we can assist you to calculate this
• Number of employees
• Date employees started working
• You will also need to let us know if you are already registered as an employer with the Inland Revenue—if you are then we will ask for more information about this.
This information will need to be noted on the request for payroll service form which can be found below. In addition, a personal details form will be needed for each employee, and either a P45 or a P46 form for each employee. If the employee is a student, there is a special form to be used instead of a P46.
All forms can be found below or if you click here.
What happens next?
If you are already registered as an employer with the Inland Revenue, Disability Derbyshire will contact you to get details of your reference number, and to find out if you are registered online—in future all employers will have to be registered online.
If you are not already registered, we will ensure that all the required information is passed to the Inland Revenue to ensure that you are correctly registered online as an employer.
Each employee is required to fill in a timesheet. You will need to send the completed timesheets to us at the end of the 4 week period. When we receive time sheets, we will calculate the tax, national insurance, sick pay, holiday pay etc. for each employee. Unless we manage your direct payment monies the timesheets will be returned to you.
You will receive a payslip for each employee, a summary showing the details for each employee and if a payment is due an addressed envelope and paying in slip for the tax office. You should then:
• File the summary safely
• Include the timesheet with the paperwork you send to DCC at Matlock
• Give the payslip(s) to the employee(s), with a cheque for the net pay due
• Send a cheque to the tax office if instructed to do so
What costs are involved?
Every quarter you will receive an invoice from Disability Derbyshire for the payroll charges due - you will need to send a cheque to us to pay this from your direct payment account. There is a charge for the payroll service, please contact us for details of the current charges.
What about paying tax?
If there is any money due to the Inland Revenue (for tax and/or National Insurance) at the end of the quarter we will send a payment slip and pre addressed envelope for you to make the required payment.
The payment slip will note the amount you need to pay, simply write a cheque for the amount on the slip, put the slip (similar to a bank giro credit slip) in the pre-paid envelope with the cheque, and post. If there is no money due to the Inland Revenue we will send a slip to the Inland Revenue on your behalf.
What information do I need to send to Disability Derbyshire?
Every four weeks you will need to send a completed timesheet for each employee. Direct Payments, or the ILF should supply timesheets. If you do not have timesheets please telephone the Derbyshire County Council finance team on 01629 532 433 or 01629 532 412.
If an employee has been off sick, or on holiday, just write Sick, or Holiday on the appropriate day on the timesheet and fill in the usual number of hours that the employee should have worked.
If the employees personal details have changed (an employee has got married, or has moved house) the employee needs to fill in a change of details form, and you need to send this to us with the timesheet. This form can be found below.
If an employee has left, you need to tell us the date that the employee stopped working for you so that a P45 can be provided and so that holiday pay can be calculated.
If a new employee has started, you will need to have them fill in the personal details form, and this will need to be sent to us with a P45 or a P46. These forms can be found below.
What happens if my employee is off sick?
You need to mark days off sick on the timesheet. Your employee should give you a self-certification notice for the first 7 days off sick, and a fit note from the doctor for all subsequent days off sick. You should send these to us with the timesheet so that any statutory sick pay due can be calculated.
Unless you have made a special agreement with your employee, there is no occupational sick pay.
Your employee will receive no sick pay for the first 3 working days of sickness, and after that they will be paid statutory sick pay for up to 28 weeks. If your employee has been off sick for 28 weeks, they will need to make a claim for incapacity benefit.
If your employee is off sick for a week, but only usually works 3 days (or less) they would get no statutory sick pay, as it is only normal working days that count.
If your employee does not earn enough to pay National Insurance, they may not be entitled to Statutory Sick Pay.
A large proportion of statutory sick pay can be reclaimed from the Inland Revenue - we will take care of reclaiming this for you.
The rules regarding statutory sick pay and eligibility can be quite complex, so this guide only sets out the very bare bones. If you need more detailed information you will need to contact our payroll department to discuss your individual circumstances.
Further information can be found on the directgov website if you click here.
What happens at the end of the tax year?
At the end of the tax year we will file all required details online with the Inland Revenue. There will be a small charge for this service - this will be included with your next invoice from us.
We will send you a P60 for each employee - you should pass this on to your employee(s).
Contracts of Employment
Don't forget to provide contracts of employment for all new employees. If you live in the Derbyshire County Council area and receive a direct payment please contact the Direct Payments team on 01773 742 165 or direct.payments@dcil.org.uk and we will post or email you contracts which have been drafted specifically for direct payment employers and have been through independent legal scrutiny.
Contact us
If you live in the Derbyshire County Council area and receive a direct payment please telephone 01773 742 165 or email direct.payments@dcil.org.uk
If you live outside the Derbyshire County Council area or fund your own care please telephone the payroll department directly on 01773 746 651 or email payroll@dcil.org.uk
Forms
Select any of the options below to download the file.
New employee/change of details form
P46 - for the new employee to complete if they don't have a P45
Click here to download this page as a word document.
This page was last updated on 30 September 2011