Payroll help please

MILLY21

Hi all, need to pick some brain here please.

I currently run a sage payroll system. Four members of staff our paid on this system but are from a seperate company, effectively I guess we are acting as agents so we pay them then invoice their company for the cost of their wages ect.

Basically this company is in the hands of the receivers now. I have placed the employees on hold but now have to produce P45 for them, even though they have not been paid their week in hand, due to the collapse of the company.

The receivers are also asking for P35/P14/P11 but I am thinking this cannot be run off until year end due to the payroll being on our mains firms account if you like. I have contacted SAGE, awating a reply but wondered if anyway has had any similar experiences???

Due to office politics I cannot contact the receivers directly to ask for advise/instruction, have asked our MD and my request has fallen on deaf ears.

Thanks everyone

M

sloshed

Hi

Having read your details I think there could be a problem and it will depend on whether the four members of staff have a contractual relationship with the company in receivership or the other company.

Who is there contact of employment with?

payrollpro

I agree with Sloshed because in my view you cannot proceed until the issue of employee and employer is sorted out, however, the fact that the receivers are asking for the year end returns, to me, indicates they regard the payees as employees of the company which has gone into receivership.

They do have a need for the year end, even if there are further payments to be made because the company's final year end is as at the date of dissolution so you really have no choice but to comply.

This is an example of what happens when the problems are not detected and solved until it is too late because unless the system is set up right there may be difficulties in separating them off from the rest of the database for a year end which is not needed for everyone else.

Perhaps you'd care to let us have some more details about this.

Payrollpro

MILLY21

Hi

I havent been on the forums for some time now so i have not picked up your postings I'm afraid.

I have now issued P45 and P11 and have advised the receivers of the situation. Before any transactions took place a signed agreement that the main company would be acting as payroll agents only was in place. The receivers are now satisfied with this which is a great relief, I think I knew what I needed to do I was just seeking some input from the forums as to other peoples experiences. It was just a little difficult being kept out of the loop on this one with the receivers.

Thank you for taking the time to reply

Best regards

M