Umbrella compliance to be monitored by AI

If you’re involved in the payroll sector as a freelancer, contractor, or temporary worker, you might be familiar with SafeRec. This revolutionary AI-driven software has made a significant impact in the umbrella company industry, offering a fresh approach for umbrella companies seeking to demonstrate compliance with HMRC regulations.

In this blog, we delve into the details of SafeRec, its advantages, and why contractors should consider this exciting new tool when selecting their next umbrella company.

How does SafeRec work? 

SafeRec works by harnessing Artificial Intelligence (AI) to run real-time audits on payslips as and when a worker receives them. Each payslip received from an umbrella provider will be thoroughly scanned by the software (which is powered by a contracting specialist law firm WTT Legal).

If unscrupulous activity is expected, SafeRec will mark the payslip orange and all parties will be notified. In this case, the contractor is advised to collaborate with the supply chain to understand why these (hopefully non-intentional) errors have occurred. A formal investigation will be initiated if a payslip is marked red – this indicates that the umbrella company is not operating compliantly.

What are the benefits for contractors? 

• Every payslip is audited

• Peace of mind when it comes to deductions, taxes and NI

• HMRC compliance checks

• Gives contractors the tools needed to challenge their umbrella provider where necessary

• Ensures contractors are being paid fairly and legitimately

What are the benefits for recruitment agencies? 

As a recruitment agency, it is your moral duty to refer candidates to safe and compliant umbrella companies. In fact, the Criminal Finances Act states that any agency found to have made a referral to a non-compliant brolly could face serious penalties.

By using SafeRec, agencies and contractors can rest assured that they are working with a legit umbrella company, thus avoiding any trouble with HMRC!

The SafeRec website adds:

“SafeRec AI technology protects your agency and candidates against umbrella companies by performing real-time forensic audits of all payslips, ensuring your candidate’s payments are processed compliantly. It also provides your agency with a suite of products to stay compliant, including a Key Information Document Generator.”

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