CIS Payroll companies such as Centurion Payroll’s main aim is to make sure that your CIS payroll is completed accurately, on time, and is fully compliant with HMRC laws and regulations. CIS payroll is different to traditional payroll, in that an outsourced payroll company will take deductions from the wages of contractors and subcontractors as an advance on the tax and national insurance that needs to be paid at the end of the tax year, with the contractor or subcontractor deducting this advance from their tax contributions when it is time to file tax returns. While this can be done in house by agencies or contractors, it is often preferable to use an outsourced payroll company to make sure that this is done correctly and on time, allowing contractors and agencies more time to focus on their main areas of expertise.
While all agencies are different and work in different ways, the main role of a CIS payroll company is to complete payroll satisfactorily and accommodate the CIS payroll needs of the agency or contractor. Typically, an agency will send a payment schedule, which will also provide details of the worker that needs to be paid, such as their name, the amount of hours or days worked, and their rate of pay. A CIS payroll company will then issue an invoice for these payments including VAT. Each worker on the payroll schedule will be notified of the hours that have been approved by the agency, and advised when they are to receive their payment. Once the agency has paid their invoice, the payroll company will then make pay deductions relative to the CIS contributions each worker is to make (usually 20% if they have signed up to the construction industry scheme) and send these off to HMRC. A reliable payroll company will process these payments immediately after receiving them. At Centurion, we make payments using “faster payment”, meaning they will clear in the workers account almost immediately. The worker, upon payment, will also immediately be notified of the net amount paid, and the deductions and contributions they have made. Pay advice slips are also sent securely to the worker so they are able to keep records of all payments and deductions.
Choosing a CIS payroll company for outsourced payroll is a great step towards ensuring all workers are paid on time, correctly, and in full compliance of HMRC rules. Contact Centurion Payroll today to see how we could help you ensure your greatest assets, your workers, are alway happy.