New Payroll Changes

Photo by Freddie Collins on Unsplash

Payroll has been undergoing a makeover recently and we’re really excited to release it shortly, in its simplified glory. Watu clients are soon to see two major changes to running payroll: one condensed pay export file and faster self-employed processing

Release date: September 15th 2017

One condensed payroll

Prior to the changes, Watu had three separate tabs for employee payment, expenses payment, and self-employed invoice batch payment:

image of watu payroll options

Managers could choose whether to run one, or all three, but they had to be exported separately.

We’ve taken this process and boiled it down to one export:

image of new watu payroll

Managers can still opt for running just one – or two – of the options, or they can opt for them all. This new toggle set up allows for a variety of combinations – wages exports for both employees and self-employed, just expenses exports, just employees, and so on. But best of all, it allows for all payment exports for all types of staff, into one document.

The exported document itself will remain the same apart from one additional column where it will state whether staff are self-employed or employees.

Bonus: For those of you using Paycircle this is great news – integrations will be even easier now so you can run payroll in a snap!

Faster self-employed processing

Another change applicable to those agencies with self-employed staff will be music to your ears.

Rather than the drawn out process of signing off shifts, clicking ‘new invoice received’, matching totals to shifts and adding an invoice date and number, then running an invoice batch…here is the new process:

sign off the shifts -> click into payroll and export the data

In other words, payroll processing for self-employed will now behave exactly as it does for employees. We listened to your feedback that the workflow had too many steps, and that oftentimes building the invoice in Watu was irrelevant, so this new process is the most efficient one whilst still keeping Watu payments factual, accurate and reliable.

The Watu Pipeline: Payroll in the spotlight

image of dollar sign to represent watu's payroll feature pipeline

Whilst quarter one brought us the release of holiday pay, an upgraded calendar, and other tweaks and improvements throughout the software, Watu’s quarter two plans are promising to be bigger and bolder. So what’s in the works for the upcoming quarter? A whole lot of payroll pizzazz.

Canadian Payroll

Canadian clients, we hear you loud and clear! We’ll soon be offering you, our maple leaf-waving friends, a customised payroll section for each staff member, meaning you can collect their bank details and tax information from directly within the system. Which takes us to the next feature updates…

Condensed Payroll

Condensed meetings, condensed milk, condensed…payroll? Well what with meetings and milk being so good, we’re confident condensed payroll will join the club.

Right now, when you run payroll, you run it separately for employees, for self-employed staff, and for employee expenses. Three separate documents, which we will be merging into one.

You will be able to select if you want to pay one, two, or all three of the categories and run the export in one go, creating a master spreadsheet of everyone who needs to be paid for the dates selected.

Faster self-employed payroll

When the ‘new invoice received’ section was built, it was created so that managers could check the data of invoices received against the shifts due to be paid. We thought we were helping with accuracy, but it turns out, we were creating inefficiency instead.

So now, once a shift has been signed off for a self-employed staff member, that data will go straight to payroll just like employees. Rather than the following steps:

  1. Sign off the shift/s
  2. Click new invoice received
  3. Enter the invoice number
  4. Select the dates
  5. Enter the total
  6. Select the shifts
  7. Save
  8. Run an invoice batch

You will instead do this:

  1. Sign off the shifts
  2. Select the dates in payroll
  3. Export the data

Turning inefficiency to efficiency and time-saving at its finest.

We would love to hear your thoughts on our upcoming plans so if you have questions, confusion or extreme joy relating to the above, leave a comment or drop us a line at info@watuapp.com

Updated HMRC Ruling: Promo staff must be PAYE

Promotional model Jennifer Su: https://flic.kr/p/aCmeJd

It has long been a grey area as to whether promotional staff should be self-employed or on PAYE. Are they employees or do they set their own schedules? Do you determine their work day, or do they do that on their own? Is their place of work determined by you, or by them?

A lot of these answers depend on a campaign itself, rather than being a sweeping ‘you’ or ‘them’, and this has given some freedom for agencies to choose whether to hire staff as self-employed, or employees.

However, just recently, HMRC has clarified these rules within the employment manual and refer specifically to brand ambassadors and similarly related roles.

First they tackle the fact that many promotional staff work as actors, singers or models, by explaining that these roles are exempt:

HMRC actors models singers except from PAYE

Having clarified that models, singers and actors working as models, singers and actors, do not have to be paid under PAYE, they then tackle the subject of models, singers, and actors working as promotional staff:

Promotional staff must be paid under PAYE

As above, HMRC specifically state that promo staff undertaking activities such as “carrying out demonstrations”, “keeping supermarket shelves stocked”, and “sales promotion on manufacturers’ stands…” is “therefore within the legislation”.

If you’re already using Watu as your software provider, making this switch is easy.

Firstly, within general>settings, you will see options relating to how you would like to allow your field staff to register with you:

Payroll settings watu

Simply keep only the option for “staffers to sign up as Employees” ticked, and this will be the only option moving forward for registering staff.

It’s worth noting that managers can always override this setting, so if you have a staff member who must be registered as self-employed, it’s possible for a manager to select this on behalf of the staff member.

And what about those staff who have been self-employed, but now need to switch to PAYE?

Watu can help out with this, as our developers can change some system settings to ‘sweep’ your account so-to-speak, and change everyone to PAYE. As these staff members wouldn’t have their payroll details entered already, it will set all these recently switched staffers to “payroll incomplete”, meaning they can’t be paid yet.

But again, there’s a solution for this! Within ‘payroll’ there is a section called ‘incomplete payroll’, and clicking there will bring you to this page:

incomplete payroll watu

See that little ‘request payroll data’ button? Click there, and that will send an email to everyone who needs to enter their details in order to be paid. It takes care of the guess work and manual typing, so all you have to do is click a button.

Bonus: A helpful – and little known – tip for those agencies using PAYE

Our system asks for the payroll data that is also required by HMRC. We stick to their mandatory/non-mandatory questions so that the software is aligned with government regulations, but sometimes you may find that the system asks for something which you just don’t need.

If you find that a staff member is marked as incomplete but you’d like to pay them anyway, here’s how to do a system override:

  1. Click into the staff member’s profile
  2. Click the menu (three lines) in the upper right corner
  3. Click ‘payroll’
  4. Click ‘edit’
  5. Click ‘Admin Information’
  6. Tick the little box stating ‘payroll data complete’

mark payroll data as complete in watu

We know that going through a payroll switch and all of its consequences can be daunting, and we would like to be here to help as much as possible. Whilst we cannot offer accounting or legal advice, we would be happy to offer suggestions and help you along the way as you make the switch.

When you’re ready to ask a question or get started, just click the ‘tech support’ button to reach out to the team.

Handling a lot of invoices, another problem solved

Our customers never cease to amaze us. We didn’t expect such a big volume of invoices. We heard your requests for a solution. Today Watu allows you to handle a batch of invoices all together.

You can use date filters as well as one-by-one selection to process only the invoices you want. Once you create a batch of invoices, you’ll be able to download three different CSVs with the details of what is going to be paid. And when it’s paid, with only one click, let your staffers know.

On a separate note, we are also helping you deal with tons of invoices by having several new filters and search tools to handle invoices, pending payments, staffers, etc.

filters and search

When looking at all the self-employed staffers that are pending payment, you can now quickly find them by name. You can also quickly search all the invoices sent by that staffer, both paid and unpaid.

Oh… one more thing, in our knowledge base you can now see a step by step description of how to enter invoices in Watu.

Payroll: Now for self-employed staffers too!

As we mentioned in our Payroll post, self-employed staffers have a completely different process than employees. For employees, you pro-actively decide how much you’ll pay them and just pay them. Self-employed staffers, however, need to invoice you. You still know exactly how much you need to pay them, but you do need to wait for the invoice. Once that invoice arrives, you want to do two things:

  • check that the amount is actually correct
  • mark the corresponding shifts as paid, so that for the next invoice we know they shouldn’t be included

Let’s look at the process, using our favorite Hollywood actors, as usual. We’ve been hiring Jesse Spencer through October to film a special episode of Dr House, and he just sent us an invoice for the first week of shooting, for £1,250.

To  enter this into watu, we first go to see all our self-employed staff inside the Payroll area:

We can see here that Jesse has £5000 in un-paid shifts. Clicking New Invoice lets us enter the details:

The idea here is to cross-check the invoice sent by the staffer with what watu knows we need to pay them, to make sure the invoice is correct. We do this by entering the invoice total, and selecting which shifts are getting paid in this invoice. watu will calculate the total amount of the selected shifts, and will only let you save the invoice if those totals match. If they don’t match, then there’s something wrong with the invoice which needs to be corrected before it can be entered into watu.

Once you enter the invoice total, watu tries to auto-select the shifts for you, starting from the oldest one we owe, until it “runs out of funds”. Even if the totals match, you should check that the shifts selected are the right ones. This will also help you notice things like past shifts a staffer forgot to invoice, or if the invoice includes a date that isn’t in the list of unpaid shifts, you can easily check previous invoices in watu to see if it was invoiced twice by mistake.

Whatever you do, and following our Payroll design ethos, watu will never let you pay for the same thing twice, and will make it very clear if something is being left un-paid.

After saving the invoice, you get a little “receipt” for it, so you can easily check a staffer’s invoices.

Next stop: Expenses!

And as always, we’d love to hear from you if you have any feedback.