Payroll and Pension Service

PAYROLL AND PENSION SERVICE

Service Level Agreement between schools and

Trafford Metropolitan Borough Council

SERVICE PROVISION

To provide a comprehensive and automated payroll and pension service to schools.

SERVICE SPECIFICATION

The Main Features of the Payroll Service are:-

Establishment of pay records and pay data.
Establishment of sound payroll procedures to meet agreed pay dates.
Comprehensive build-up to gross pay and net pay calculations taking account of all legislative requirements.
Capacity to handle fixed, variable and temporary adjustments to pay.
A flexible job and grade code system capable of handling the widest range of service conditions.
Integrated Statutory Sick, Maternity, Paternity and AdoptionPay.
Ability to handle various occupational sick pay and maternity pay arrangements and to provide absence monitoring information.
Ability to include associated pay additions such as bonus, specific allowances, travel and subsistence, overtime etc.
Flexible facilities for voluntary and statutory deductions.
Payments by B.A.C.S. using confidential pay advices.
Automatic calculation of retrospective pay awards.
Full compliance with HMRC, the Greater Manchester County and Teachers’ Pension Funds' requirements both during the year and at year end (including the provision on P60s at year end).
Automatic issue of P45 and other leaver documentation.
Full interface with the Local Government and Teachers' Pension Schemes including A.V.C. facilities.
Administration of the Local Government Pension Scheme with a comprehensive enquiry and information service for all staff.
Flexible dispatch arrangements for extraction of payments and delivery to work place or posting to home address.
Comprehensive interface with financial and management information systems.
Continuous internal audit of systems.
Reconciliation of all payments made.
Operation of salary sacrifice scheme for childcare vouchers

PRICE

School Type / No. Of Pupils Per Sept ‘07 / Band 1 Price / ** Band 2 Price **
Primary / 400 or more / £2,424.00 / £2,504.00
200 to 399 / £1,816.00 / £1,896.00
Up to 199 / £1,214.00 / £1,294.00
Secondary / £3,334.00 / £3,734.00
Special / £1,816.00 / £1,896.00
Special Payment Request / All Schools / £38.00 / £38.00

** BAND 2 PRICE **

This price band will only be charged if the school opts not to purchase Personnel ServicesSupport Service and is based on staff turnover rate of up to 25% within each applicable school. If schools experience a turnover rate higher than this a further charge of £400.00 for Secondary and £80.00 for all other school types would be applied.

INVOICING AND PAYMENT ARRANGEMENTS

The school will be invoiced at the end of the summer term. A third of the invoice amount to be paid within 28 days of the invoice date. A second third is due for payment by 31st December and the final third is due for payment by 31st March.

PAYROLL REIMBURSMENT (Applies To Fully Advanced Schools Only)

If a payroll reimbursement payment arrives late after the agreed due dates as specified in the monthly payroll reports sent to the School, a late interest charge will be made from the day after the due date on overdue monies until time of receipt of monies. The School will be notified in writing of the late interest charge and the School will be invoiced.

Late interest will be charged at the following rates:-

For monies overdue 1 to 30 days after due date the Bank of England Base Rate will be applied to the overdue balance.

For monies overdue 31 to 60 days after due date the Bank of England Base Rate plus half of one percent will be applied to the overdue balance.

For monies overdue 61 to 90 days after due date the Bank of England Base Rate plus one percent will be applied to the overdue balance.

CONTRACT PERIOD

1 April 2008 to 31 March 2009/2010/2011

(Either party may terminate the contract by giving 3 months’ notice).

FURTHER INFORMATION

All negotiations regarding this service should be carried out with Mike Roe on 912 4159.

PAYROLL AND PENSION SERVICE FOR SCHOOLS

SERVICE PROVISION

Trafford Payroll Services is part of Financial Services, based at TraffordTown Hall, Stretford and is responsible for providing a comprehensive payroll and pensions service for all Trafford MBC employees. We also provide payroll for twelveother organisations including eightFoundation Schools.

Our aims and objectives are to provide a quality payroll service to our clients for all employees and pensioners. We continually monitor computer systems and services, staff procedures and practices to ensure the most efficient and effective use is made of our services. New developments both technological and legislative are incorporated continuously to ensure the service responds to schools needs and obligations.

The Payroll and Pensions Section consists of eighteen staff comprising of two payroll teams and one pensions team. These teams together with Senior Payroll Officers are vastly experienced and well trained in every aspect of payroll / pensions administration. They are also able to deal with the ever increasing volume and complexity of HMRCand Pensionsstatutory requirements.

Whichever the category of school there is a designated payroll team available to offer advice and assistance on any payroll matter. All of the section can be contacted by Fax on 912 4500.

Full and comprehensive details of the service provided can be found in the Service Level Agreement attached to this document.

PAYROLL AND PENSION SERVICE FOR SCHOOLS

SERVICE PROVISION

ALLOCATION OF SCHOOLS TO DESIGNATED PAYROLL TEAM

TEAM

All Primary / Junior Schools 1

All Special Schools 2

Altrincham Boys Grammar 2

Altrincham Girls Grammar 2

Ashton on Mersey 1

Blessed ThomasHolfordCollege 1

BroadoakHigh School 2

Flixton Girls High School 2

AltrinchamCollege of Arts 2

Loreto Grammar 2

LostockCollege 2

Sale Grammar 1

St.AmbroseCollege 2

St. Anthony's R.C.High School 2

Stretford Grammar 1

StretfordCommunityLanguageCollege 2

Urmston Grammar 2

WellacreTechnologyCollege 2

TRAFFORD METROPOLITAN BOROUGH COUNCIL

SPECIFICATION OF WORK : PAYROLL SERVICES

1.Service Specification

The Director of Finance will provide a comprehensive payroll service ranging from the initial setting up of pay records to the reconciliation of payments through the bank. Appendix A summarises the service and facilities which will be provided.

PLEASE NOTE:- Following a review of costs in relation to the Payroll service by the Director of Finance, schools should note that were they do not purchase Personnel Services Support Service an additional charge will have to be levied for the Payroll service to cover the additional administration required to provide the comprehensive service detailed in this document.

Full details of this charge is given above and in Appendix B.

2.Specific Requirements

In addition to those basic facilities referred to in Appendix A, the following specific requirements have to be identified.

3.Monthly Paid Staff

(a)Monthly paid staff will be paid on the 15th of each month (except where this date falls on a Saturday or a Sunday in which case payment will be made on the preceding Friday) by credit transfer to bank or building society accounts.

(b)Casual staff paid on a monthly claims basis will be paid on the last Friday of each month, by credit transfer to bank/building society. Normally only one claim per month is made by these staff.

4.Weekly Paid Staff

PLEASE NOTE:- This payroll is used for Casual Employees only, allother

staff will be paid monthly.

Weekly paid casual staff will be paid on Thursday of each week by credit transfer to bank or building society accounts, with delivery of pay advices on the same day. These arrangements will apply in normal circumstances, but may be subject to variation during the statutory holiday periods, and in the event of other circumstances beyond the control of the Director of Finance.

It should be noted that as from 1st May 2004 all newly appointed permanentstaff have been placed on the monthly payroll.

5.Special Payments

Exceptionally, manual payments may be requested by the User. Emergency "on account" payments which have been made will be recovered from the next salary/wage payment due.

Please note :- If manual payment requests are as a result of non adherence to the conditions of Section 15 below, a Special Payments charge will be levied.

6.Absence due to Third Party Accident

Generally under employees' conditions of service, a "loan" must be made to staff absent due to a third party accident which is recoverable upon a successful claim being made by the employee. These recoveries will be made (the gross figure being repaid to the schools budget) including all necessary correspondence with the individuals' legal representative(s).

7.Pay Advices and Documentation

(a)All employees will be provided with confidential pay advices.

(b)The reconciliation of any cheques issued will be carried out by the Director ofFinance.

(c)TheDirector of Finance will be responsible for end of year returns, and all information required and the adherence to the appropriate regulations during the year for the Inland Revenue, the Greater Manchester County and Department for Education Pension Funds.

(d)Payments of claims for travel, subsistence, and car expenses will be incorporated into the salary/wage payments on production of the relevant claims.

(e)Production and distribution of time sheets for weekly paid staff and absence returns for monthly paid staff.

(f)Instruction and reference manuals for operating the payroll systems.

8.Hard Copy Prints

Subject to the schools requirements, hard copy prints will be provided for: -

(i) personnel enquiry;

(ii) absence recording;

(iii) annual leave recording;

(iv) qualification recording;

(v) service recording.

9.Management Accounting

An interface will be provided after every payroll run with an expenditure analysis of payroll transactions in order to update the Authority's accounting system.

10.Charges

The proposed charging basis for the provision of the payroll service is detailed in Appendix B. The charges will be standard except for inflation (see Section 12) and subject to any fluctuations in the number of transactions by plus or minus 5%.

The school will be invoiced at the end of the summer term by Council Sundry Debtor Account. A third of the invoice amount to be paid within 28 days of the invoice date. A second third is due for payment by 31st December and the final third is due for payment by 31st March.

11.Period of Agreement

The agreement will be from 1st April 2008 to 31st March 2009/20010/2011. Three months notice to terminate the agreement can be given by either side.

12.Inflation

Charges for any subsequent years will be updated by the percentage rise of salary increases and associated on-costs.

13.Liaison and Communication

The Financial Services Payroll Section has developed close working relationships with Schools over many years. The preparation of the payroll will continue to be the responsibility of designated pay clerks under a team leader. This is in order to provide continuity and to further the close liaison with the School.

14.Audit Arrangements

The payroll system and procedures will be audited by the Overview and Scrutiny’s Internal Audit Section. This is included in the agreed price.

15.Timetable

Details of starters/leavers and permanent or temporary variations to master data or earnings records must be submitted to the Payroll Manager by midday Monday for payment on the following Thursday in the case of weekly paid staff, and by the 22nd of the month for payment on the 15th of the following month for monthly paid staff. Any claim forms for casual staff paid on a monthly basis received in the Payroll Section by 20th of the month will be paid on the last Friday of the month.

All submissions to the Payroll section should be on the agreed standard forms(nophotocopies or faxes will be accepted), be legibleand received by the above deadlines. If these conditions are not met then payment cannot be guaranteed on normal pay dates. If non payment results as a consequence of non adherence to the above and a request under section 5 is made, a Special Payments charge will be levied.

These arrangements will apply in normal circumstances, but may be subject to variation during the statutory holiday periods (when written notification will be issued by theDirector of Finance) and in the event of other circumstances beyond the control of the Director of Finance.

16.Alterations to the Service

Any major changes or developments made to the system, or specific requirements, mutually accepted by the user and provider, will be subject to further negotiation.

17.Provision of Payroll Details

(a) Data required for the successful 'in-house' payroll administration of the school's

employees will be made available to the school free of charge, in the format on

which it is held by the Authority, should this be required in the future.

(b)Schools who opt for payroll administration by provision other than through this

agreement will be required to pay for the additional audit certificate in relation to

the annual teachers pension return.

Appendix A

PROVISION OF PAYROLL SERVICES

The Director of Finance provides a comprehensive and highly automated payroll service involving:-

{Weekly, monthly, and on demand payments to over 10,000 employees, pensioners, and agency staff.

{Over 12 different conditions of service

{Transactions of over £150 million per annum in value.

A payroll service of this size and complexity requires and depends on:-

{Highly sophisticated and flexible computer facilities.

{Professional staff with extensive knowledge of statutory requirements and payroll procedures.

{Close liaison with service users.

The main features of the payroll service are:-

{Establishment of pay records and pay data

{Establishment of sound payroll procedures to meet agreed pay dates.

{Comprehensive build-up to gross pay and net pay calculations taking account of all legislative requirements.

{Capacity to handle fixed, variable and temporary adjustments to pay,

{A flexible job and grade code system capable of handling the widest range of service conditions.

{Integrated Statutory Sick, Maternity, Paternity and Adoption Pay

{Ability to handle various occupational sick pay and maternity pay arrangements and to provide absence monitoring information.

{Ability to include associated pay additions such as bonus, specific allowances, travel and subsistence, overtime, etc.

{Flexible facilities for voluntary and statutory deductions.

{Payments by B.A.C.S. using confidential pay advices.

{Automatic calculation of retrospective pay awards.

{Full compliance with HMRC, the Greater Manchester County and Teachers Pension Funds' requirements both during the year and at year end (including the provision of P60s at year end).

{Automatic issue of P45 and other leaver documentation.

{Full interface with the Local Government and the Teachers' Pension Schemes including A.V.C. facilities.

{Administration of the Local Government Pension Scheme with a comprehensive enquiry and information service for all staff.

{Flexible despatch arrangements for extraction of payments and delivery to work place or posting to home addresses.

{Comprehensive interface with financial and management information systems

{Continuous internal audit of systems.

{Reconciliation of all payments made.

{Operation of salary sacrifice scheme for childcare vouchers.

Appendix B

SCHEDULE OF PROPOSED CHARGES

Service as detailed in Appendix A

PRICE

** BAND 2 PRICE **