Watu and Paycircle Integration for Easier Payroll

Homepage image for Paycircle

Of all the features in Watu, payroll is one with many layers of capabilities which is fantastic for providing a complete software solution, though at the same time challenging for us to convey to clients all of its potential and how to best use it.

Even once we are able to communicate and encourage the use of all the sub-features – payroll adjustments, PAYE exports, expense allowance and approval, etc – you as the client end your payroll journey with an export data to process and pay a staff member. But now, our seamless connection with Paycircle can take this a step further and simplify the payroll process.

What is Paycircle?

Paycircle is a complete payroll solution for agencies working with temporary staff. Through their easy-to-use software interface, Paycircle can take care of your pay calculations including national insurance contributions, holiday pay and more, and also allows for staff to see their pay status and history.

Image of paycircle agency features

And if you want them to take it a step further, Paycircle can even pay your staff for you. Paycircle also links to all of the major workplace pension providers and manages everything to do with pensions, automatically, as part of the payroll process – and doesn’t change any extra for the privilege.

How do Watu and Paycircle connect?

The exports created in the Watu system fit perfectly into the Paycircle software, with matching columns which means once you export the CSV, it’s ready to send over or upload. Paycircle will take the ‘gross wage’ column and, whilst referring to the other data columns like tax status, calculate contributions, tax, holiday pay, final wages, and so on.


Image of Paycircle app for processing staffing payroll

Once this step is complete, finalising payroll is a simple as pressing a button and then all of the reports you need are available online. Your accounts team can view them to make all the necessary payments (employees, HMRC, pension etc) or you can make a single payment to Paycircle and they can make all the payments on your behalf – it’s up to you!

This seamless connection is the link to connect your Watu exports with accurate and easy payroll. Almost like an extension of our own software, Paycircle can provide agencies like yours the most efficient route for straightforward payroll meaning less headaches for managers, more clarity for staff, and extra hours in your week. Ready to give it a try? Reach out to Paycircle now to get started.

Holiday Pay for Temporary Staff

Holiday pay for temporary staff image of a relaxing beach

We’re going to be making some changes within UK clients’ Watu accounts with regards to the way holiday pay for temporary staff is displayed. These changes are based on the government’s guidelines and are coming into place so that we can best help our clients to stay within the recommended rules.

Currently, clients can only display the total wage for shifts. Although subsistence and expenses can be added on top, there is no space to add holiday pay. Our goal is to now rebuild this part of the software so that holiday pay can be shown in addition to the daily wage, as well as the grand total for the staff member. These changes will be reflected in the job build, adverts, confirmations and in payroll as well.

What are the rules surrounding holiday pay?

The government currently requires that temporary staff be paid holiday pay on top of their daily wage. This wage must be stated at the time of booking and on the payslip and must not be rolled into the daily wage; for example if your T&C’s state that a staff member’s daily wage includes the holiday pay, this is against the rules. As stated in the www.gov.uk website

“Holiday pay should be paid for the time when annual leave is taken. An employer cannot include an amount for holiday pay in the hourly rate (known as ‘rolled-up holiday pay’). If a current contract still includes rolled-up pay, it needs to be re-negotiated.”

Why has no one mentioned holiday pay before?

Most staff – and many managers as well – are not aware of the the details of the law, so agencies are not in a rush to separate the two. Things have been working so far, but this could change if someone raises an issue about how holiday pay should be laid out or alternatively if a government body looks into your specific agency

How has Watu calculated the holiday pay rate?

Using the ACAS site for guidance, we have based it on the following;

“If a member of staff works on a casual basis or very irregular hours, it is often easiest to calculate holiday entitlement that accrues as hours are worked. The holiday entitlement of 5.6 weeks is equivalent to 12.07 per cent of hours worked over a year. The 12.07 per cent figure is 5.6 weeks’ holiday, divided by 46.4 weeks (being 52 weeks – 5.6 weeks). The 5.6 weeks are excluded from the calculation as the worker would not be at work during those 5.6 weeks in order to accrue annual leave.”

So when a manager enters the total wage into the job build, Watu will automatically divide it into ‘daily wage’ and ‘holiday pay’, taking care of the 12.07% maths for you.

Automatic Implementation

This feature is an opt-out feature within Watu. What exactly does that mean? Once it’s live, it will automatically be applied to your account. If you do not want this change this affect your account, then you must opt-out once we announce that it’s been made live. This can be done in the general settings area of your account.

The subject of holiday pay is complex and has a lot of ‘grey area’. If you believe this feature can be improved or have any important feedback, please do let us know.



Photo by Olin Gilbert