How do you pay staff?

[Mayron]

We currently pay our staff by cheque on the last friday of every month. They have asked if they could have their pay, paid direct into their bank account. Our treasurer has suggested having an online bank account and doing the transfers this way. Just wondering how it works in other settings?

Interesting this one. When I took other as Treasurer in September we were paying the staff by cheque on the last day of the month. I wanted to pay them online to make it easier for me and for the staff but our account is joint signatures over £500 and the bank (Lloydstsb) said I couldn't have on-line banking. However I just went on line (after a nod and a wink!) and signed up for it, got a form through that the signatories had to sign and they set me up regardless of the fact that two signatures are needed over the £500.

It has made life so much easier and expenses are paid much quicker too plus I can see the transfers in (parents are now paying on line too). Obviously there is a security issue here - I have financial responsibility in another paid job (unrelated) and have suggested to the Committee that they need to spot check the account with print outs/statement checking throughout the year. It was easy to set up with Lloyds as I bank with them personally.

My old nursery use to pay us this way too, then we suggested we get paid into our bank account so she had her accountant set up the BACS system.

Thanks both. My concern was with the joint signature issue, but looks like it shouldn't be too much of a problem. Initially I suggested paying them by BACS but it was our new treasurer who suggested online banking. We are in the process of changing banks (currently with Yorkshire but they don't open Saturdays which doesn't work for our new treasurer)and hoping to get online banking sorted.

Hopefully it will put an end to running around at the end of the month signing cheques and dropping them off! Like the idea of parents paying on line too - will suggest this at our next committee meeting.

We do it online on about 25th month.
Much easier

Please be careful.
You will open yourself up to potential abuse of the bank account by not having two signatories. Whilst you may be honest and above-board, future treasurers may not be. If there are any thefts of the account after the online banking was set up, the committee could be accused of mis-managing the setting by allowing one person access to the account.

I know cheque runs are a ball-ache but I'm speaking from the experience of finding the previous treasurer had been helping herself to the bank account. The subsequent police investigation and court case was very very stressful for the staff and committee.

If your pre-school runs as a charity you may also have issues with the Charity Commission over this.

Exactly as cktwo says.
Also I would not WANT to be a treasurer where I could make withdrawals/transfers on my owa.People could make malicious accusations behind your back.

There is that too.
I do a really in depth treasurers report I habd out at each meeting with copies of bank statements and nobody reads it. It is mainly to cover my own ass

Decided this needs thinking through a bit more carefully with the committee. Maybe we need to go down the BACs route.

Our treasurer is a professional accountant (only been with us since Feb - husband of another committee member)so I know he knows his stuff. He's been invaluable recently when it's come to sorting out payrises! I was ready to resign!

Nothing is ever straight forward! Will check out Charity Commissions website too.

Have a look at document CC8 on the Charity Commission website for useful advice

Does your constitution allow a husband and wife to both be on the committee at once?

ours doesn't - not that it stopped the pair who caused many of our problems two years ago......

as for pay, we pay by cheque the last week of each half term. Sorting out paying staff monthly is on my to do list...

If its the PSLA constitution, yes you can have related members. However they are both not allowed to be signatories to the bank accounts.

We do Bacs for the staff. I'm the second signatory but only for expense cheques. Our Treasurer does print out regular statements for us to check and it is signed by the Chairman and kept on file.