Merging payrolls
Discussion
Wondered if anyone knows the answer to what might be a really simple query:
our Company (ABC Limited) owns the shares of another Company (XYZ Limited) so the 2 companies are essentially completely separate.
In our HR department we use a shared services model so different areas of the business have their own HR Business Partner and then the HR Officer etc are shared throughout the business.
We'd like to make the payroll and HR department a shared service for Company XYZ too as they are currently outsourcing this to an external organization (they're a small Company; fewer than 10 employees). To do this in the easiest way possible, we'd actually move them on to our payroll and, therefore, change their employer tax reference number to ours.
So, questions:
Do we have to TUPE them across?
Can we just change the payroll and tax reference number simply?
our Company (ABC Limited) owns the shares of another Company (XYZ Limited) so the 2 companies are essentially completely separate.
In our HR department we use a shared services model so different areas of the business have their own HR Business Partner and then the HR Officer etc are shared throughout the business.
We'd like to make the payroll and HR department a shared service for Company XYZ too as they are currently outsourcing this to an external organization (they're a small Company; fewer than 10 employees). To do this in the easiest way possible, we'd actually move them on to our payroll and, therefore, change their employer tax reference number to ours.
So, questions:
Do we have to TUPE them across?
Can we just change the payroll and tax reference number simply?
I may be overthinking it, but this sounds more complex than you make out
Where will the money to pay the 10 employees come from, presumably from xyz company - how will this be transferred to abc company? How will this be shown in the accounts?
How will their employment contracts work if they are being paid by another company?
If you ever want to sell xyz company how would you account for the set up?
Easiest way to do it I would have thought would be for xyz company to pay a service fee to abc company for the Payroll service and keep them separated.
( this is the Internet however so feel free to ignore the above if I've got it wrong
)
Where will the money to pay the 10 employees come from, presumably from xyz company - how will this be transferred to abc company? How will this be shown in the accounts?
How will their employment contracts work if they are being paid by another company?
If you ever want to sell xyz company how would you account for the set up?
Easiest way to do it I would have thought would be for xyz company to pay a service fee to abc company for the Payroll service and keep them separated.
( this is the Internet however so feel free to ignore the above if I've got it wrong
) Burrow01 said:
I may be overthinking it, but this sounds more complex than you make out
Easiest way to do it I would have thought would be for xyz company to pay a service fee to abc company for the Payroll service and keep them separated.
( this is the Internet however so feel free to ignore the above if I've got it wrong )
As above.Easiest way to do it I would have thought would be for xyz company to pay a service fee to abc company for the Payroll service and keep them separated.
( this is the Internet however so feel free to ignore the above if I've got it wrong
) Your payroll software should be able to run different payrolls for different companies. Your payroll staff should also be capable of this. You can even make payments from different bank accounts.
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