ADVANCED PAYROLL COMPLIANCE
ADVANCED PAYROLL COMPLIANCE
The Payroll Compliance Authority (PCA) is a not-for-profit accreditation body established in 2023 to provide a benchmark by which to identify compliant payroll companies operating within the assignment-based contractor supply chain.
Independently managed by a board of directors with collective expertise across the recruitment, financial, healthcare, medical and construction sectors, the PCA is underpinned by a commitment to payroll compliance, transparency and best practice.
Members of the PCA have successfully passed a forensic audit of their payroll models to ensure that they are administered in accordance with all current employment legislation and taxation guidelines. Conducted by leading accountancy firms including BDO and PwC, the PCA assurance audit also includes an examination of a member’s organisational structure, internal processes and financial procedures, to prove their compliance credentials.
Due to an absence of meaningful policing by existing trade bodies, the payroll industry remains largely unregulated, with workers at the mercy of unscrupulous providers. The PCA supports the prospect of government regulation to standardise the industry and to create a transparent set of criteria by which umbrella companies have to offer their services.
It is estimated that there are currently 700,000 workers paid via umbrella companies in the UK, with less than a third administered by audited payroll providers. The potential for worker exploitation is, therefore, rife, as illustrated by the numerous examples of non-compliant payroll schemes frequently appearing in the media across a myriad of sectors, including construction, education and healthcare. It is the absolute remit of the PCA to identify these rogue providers, whilst highlighting the legitimate endeavours of those payroll companies who comply with employment legislation and treat workers fairly.
Since formation, the PCA has attracted a vibrant membership of firms dedicated to providing demonstrably legal outsourced payroll services to their clients and contractors in complete alignment with the aspirations, values and culture of the PCA.
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