PEO payroll for healthcare recruiters

Have you looked at PEO payroll for healthcare? If not, now that IR35 applies to the private sector you’ll definitely want to take a look. The impact of the latest IR35 extension may already be affecting your business. Things like margin erosion, ballooning ‘in-house’ payroll admin cost, financial, reputational and legal risk can become a distinct competitive disadvantage.

But we do have the answer.

People PEO has been reviewed and recognised by HMRC. It’s the compliant, transparent and cash-efficient way to sort your IR35 headache, build your brand and keep end clients and contractors loyal. Particularly beneficial to those operating in VAT sensitive sectors such as healthcare. Protect your business with PEO payroll for healthcare recruiters.

Act now

If you’d like to find out more about how we can help you, fill in our contact form below or select one of the below options.

What is PEO?

PEO generally describes a payroll product or service (rather than a business). It is one of a handful of payroll options available to recruitment agencies to outsource their payroll function. It’s based on PAYE, and provides a partnership approach to employing workers, which ultimately benefits all parties.

Why consider PEO for your agency?

PEO is perfect for Healthcare workers.

With Private Sector Off Payroll (IR35) a reality the chances are we’ll be seeing more exotic umbrella schemes appear. Just recently HMRC agreed that the 2017 Off Payroll legislation increased the amount of non-compliant providers taking advantage of unwitting contractors. PEO payroll offers a fully transparent and safe alternative to umbrella payroll with distinct advantages for contractors and agencies.

Contractors are on full PAYE, they don’t pay a fee and there are no employer deductions on their pay slips. Given the choice our contractors say they’d rather work with a recruitment agency that offers PEO.

Since using PEO:

  • 70% reported that revenues had increased

  • 66% reported that profits had increased

  • 98% would recommend PEO

National Association of Professional Employment Organisations study 2017

What are the options with IR35 legislation a reality?

Some think that the only options are internal PAYE or an Umbrella. But neither of these are ideal and they both carry their own risks:

Significant and unnecessary margin erosion if you convert contractors to VAT charging umbrella companies

Ballooning ‘in-house’ payroll admin cost, more staff, additional time and statutory cost exposure

Financial and legal risk if you allow use of exotic intermediary solutions and with direct responsibility if run ‘in-house’

Competitive disadvantage once you factor the increasing costs into your charge and pay rates

Did you know that based on over 15 million payslips, in-house PAYE typically costs in excess of 18.5%* on top of their stated rate (gross plus holiday)?

The hidden costs of in-house payroll

* This percentage includes Employers NIC (13.8%), Apprenticeship Levy (0.50%), Employers Pension (3.00%) (all after thresholds), Payroll Staff wages with associated employment costs, Average Statutory Pay (SSP, SMP & SAP), Insurances, Lighting, Heating, Postage, Bank Charges, Legal & Tribunal, Stationery, Software Licences and all other office related costs

What are the benefits of PEO?

1. Protection

Protect your business now and into the future and have complete faith in your supply chain. With 3000 additional enforcement officers being recruited by HMRC, now is a good time to review your payroll and processes. People Group’s PEO payroll is the most transparent and straightforward, compliant option available today and the only PEO product that has been fully reviewed and agreed by HMRC.

2. Cash flow

A feature of PEO is joint-employment, the benefit being that VAT is not due on disbursements billed between joint-employers. With 99% of our PEO invoice disbursed (salary, PAYE, NI, Pension etc.) only 1% of our invoice to agencies attracts VAT. Helping to improve cash flow, liquidity and materially reducing the cost of finance (when using invoice financing solutions). Guide to Joint Employment

3. Brand Reputation

When you’ve invested in your brand and built up your reputation, it’s important to maintain this across every touchpoint within your business. And it’s never more important to get it right than when processing your contractors pay. Our recruitment agency partners that have already switched to PEO have seen candidate satisfaction increase, payroll enquiries decrease and an overall improvement in brand perception.

“People Group protect our brand by providing transparent and efficient solutions like PEO, where no questions need to be asked.”  MD, Educated Recruitment

4. Business Efficiencies

In recent years we’ve seen recruitment businesses and risk averse end clients shift away from umbrella to ‘in-house’ PAYE, particularly following 2017 Public Sector Off-payroll. While this approach does remove some of the risk, it doesn’t necessarily represent the best option when it comes to efficiencies. And for some end clients in particular the need to cap headcount can sometimes leave this option redundant.

When you delve deep into all of the costs associated with running in-house payroll you begin to understand the merits of partnering with a PEO payroll expert like People Group.

Request a payroll comparison

How can we get set up?

Our set up process is tried and tested over the past 15 years. We can handle communications on your behalf and onboard groups of contractors in days, not weeks. Our experienced team of payroll and compliance professionals will support candidates through the process while your account manager works with you to ensure the changeover is simple and efficient for all. Send us some details using the form and we’ll get back to you at your preferred time.

Interested? Watch our video to discover more.

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