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There is nothing wrong with hiring subcontractors for your construction business. Having subcontractors makes the business faster and more efficient. However, despite the good things it brings, the payroll organization for your employees and subcontractors can be difficult. It requires a lot of time, calculation, and money to be able to create different payroll for different people.
To avoid problems with the different payroll, you should consider using CIS Payroll Solution software. . But what it really and what does it do?
The CIS Payroll Solution
The CIS payroll solution is the payroll solution that is utilized by the contractors and subcontractors registered under the CIS Payroll Scheme. With this, the payroll solution ensures that contractors and subcontractors are given the right salary per the CIS guidelines set by the HM Revenue and Customs.
With this, this payroll software automatically deducts the advanced amount needed for subcontractors as a form of payment for their taxes and national insurance. Aside from that it also helps contractors compute the accurate salary for all of their contractors with various rates.
Who are qualified to get the CIS Payroll Solutions?
Unlike the other payroll solutions in the market, CIS Payroll Solution is strictly for people working with construction companies and anything related to it. Before you can get a CIS payroll solution, make sure that you are already registered with the CIS.
How do I register with the CIS?
To register with the CIS, you need to go to the CIS website. From there, you can register as a contractor, a subcontractor, or even both.
To register under the category of “contractor”, you must have a construction business. However, if you don't have one, you will still be able to register with the CIS. Your company must have an accumulated expenditure of one million Euros with regards to construction for the last three years.
To register under the category “subcontractor”, you must have contracts and other important documents to signify that you have been working as a subcontractor for many construction firms.
Kinds of CIS Payroll Solutions
Self-Employed CIS Payroll Solution
The Self-employed CIS payroll is software used for subcontractors that already have their UTR 10 digit number. In this CIS Payroll, the contractors will do the invoice, salary payment, and the advanced payment for the taxes and the National Insurance. The self-employed CIS solution often deducts 20% of the subcontractor’s pay. However, they would be deducted with 30% if they fail to become fully verified subcontractors.
Employed CIS Payroll Solution
This CIS payroll solution is often offered to subcontractors who are not under the category of self-employed subcontractors. In this bracket, these subcontractors are considered “employed” under the contractor’s name. The CIS payroll software automatically deducts the fees for the taxes and the national insurances that are due for the subcontractors under this category. Aside from that, they are given some benefits like Statutory Sick Pay and Maternity Pay for their employed subcontractors.
Now that you have some of the basic facts of CIS Payroll Solutions, you should consider one for your business. That way, it would be easier for you to work with the salary computation for your subcontractors.
This is a post related to some Business News which is related to the cash-out refinance. Thank you
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Published on January 21, 2021
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