The payroll cycle

Step 8: BACS or faster payments

While its not required, you can choose to pay employees by BACS.

You need to ensure BACS is enabled with your bank.

Faster Payments

Faster Payments, enabled by the UK’s real-time payments infrastructure, allows funds to be transferred from one bank to another within seconds as opposed to days with the combination of your RIS payroll software and our service partner Modulr™.

Faster payments are simple to set up and offer a real alternative to using the BACS system.

The immediacy of payroll payments allows for a less stressful payroll window, it eliminates the 3-day payment time typical of BACS and reduces the overall time required to process payroll.

Bureaus can control payments on behalf of their customers saving time and money with each pay run.

To use the Faster Payments module, you must create an account with our partner, Modulr™.

Find out more on Faster Payments

BACS

You can create the following BACS files and reports directly from the payroll software:

  • HMRC – a single payment to HMRC for the monthly PAYE liability.

  • Pensions – to pay a pension provider, a single payment per pension fund.

  • AEOs – to pay AEO agencies a single payment per employee, per AEO.

  • Other - to pay other deductions such as GAYE or Union Fees, a single payment per deduction.

  • Multiple – contains multiple entries, such as GAYE and AEO.

This section describes configuring these BACS files and how to create each one when needed. Please note: you can only use the process with the BACS layouts RTI BACS, RTI BACS Bottomline and RTI BACS with SUN (same as RTI BACS but including Service User Number at the end of each payment row).

Find out more on Pay HMRC (and others) by BACS