Overview of Payee Records

A front office consultant cannot submit a job order to timesheet unless the candidate filled on the job order is linked to a payee record that belongs to the same pay company and is valid for the duration of the job order.
A payee is deemed unique when one or more of the following components differs to existing payee records for the same candidate:

• pay company

• tax type

• payee type

• employment start date

• employment end date

• supplier

The tax type defines the type of taxation that is applicable to the payee and can be one of the following:

• PAYE – applies to all payees who are employed as individual employees and are paid under the PAYE system.

• Contractor – applies to all payees who are classed as independent contractors for tax purposes or are paid via an umbrella company.

• CIS - applies to all payees who are working under the Construction Industry Scheme.
  
  

The payee type is used as a further categorisation within the tax type.

Where a payee has a tax type of Contractor, the payee type can either be Contractor or Umbrella depending on if the payees tax affairs are dealt with by an Umbrella company or are responsible for their own tax affairs.  

Where a payee has a tax type of PAYE, the payee type can either be PAYE or Deemed Contractor.  If a contractor is to be taxed as if they were an employee, a payee record with a payee type would need to be set up with Deemed Contractor.  This will allow the payee to be paid VAT as well as having tax and NI deducted.

Where a payee has a tax type of CIS, their payee type is always CIS.

The employment start and end dates define the period of employment with the pay company. A candidate cannot be linked to multiple payees who are employed by the same pay company and have the same tax type and payee type and supplier if the employment start and end dates of the payee records overlap.
 

 The following rules apply to creating payees:

• multiple payee records can exist for each candidate

• each payee record must have a unique payee number

• for a given candidate, multiple payee records cannot exist with the same pay company/tax type/payee type/supplier combination for the same period of employment