Microgen Bacway

Microgen offers a range of Bacs software products which enable organisations to make automated payments in the UK using Bacs payment services over the internet (Bacstel-IP).

Microgen Bacway IP products are approved under the Bacs Approved Software Service (BASS) for Bacstel-IP, and are suitable for a wide range of applications including: payroll, supplier payments, setting up or cancelling direct debit instructions on customers’ accounts, collecting direct debit payments, and bureau functionality.

All Microgen BACS-approved software products are compliant with the new RTI requirements being introduced by HMRC in 2013.

The Microgen product range supports organisations from the largest Bacs submitter to the occasional user.

  • Microgen Bacway IP Professional offers a level of core functionality that supports all of the principle options available within Bacstel-IP within a standalone application
  • Microgen Bacway IP Enterprise and Microgen Bacway IP Enterprise Plus handle complex environments with multiple payment applications, multiple sponsoring banks, manual and automated processes and detailed security requirements

 Benefits include:

  • Improved visibility of the payments process
  • Improved quality of payments data enabling successful submissions
  • Reduced errors with fewer manual processes through use of workflow

Product Features

Microgen’s Bacway IP products import files of payment instructions, and validate and transform them into the correct format for submission to Bacs. Submissions are then signed manually or  automatically (depending on the Microgen product used) before being sent securely to Bacs. Features include:

  • Approved under the Bacs Approved Software Service for Bacstel-IP
  • Suitable for making Direct Credit Payments (for example: payroll, expenses, supplier payments).
  • Suitable for Direct Debit Collections (for example: subscriptions, loan payments, card payments, rental payments, utility bills)
  • High levels of security: either card-based or using a hardware security module (HSM) for PKI security credentials depending on the level of automation required
  • Allows submission and retrieval of all Bacs standard messages
  • Downloadable reports on submissions made to Bacs

For further information about Microgen’s payment products and services, including how we can help you drive down business costs please contact us.

The Bacway product range supports organisations from the largest Bacs submitter to the occasional user. Microgen Bacway IP Professional offers a level of core functionality that supports all of the principle options available within Bacstel-IP within a standalone application. Microgen Bacway IP Enterprise and Enterprise Plus products handle complex environments with multiple payment applications, multiple sponsoring banks, manual and automated processes and detailed security requirements.

Microgen Bacway IP Professional
Microgen Bacway IP Professional offers a level of core functionality that supports all of the principle Bacstel-IP options within a standalone application.
The diagram illustrates a typical installation of Microgen Bacway IP Professional on a dedicated PC. The single seat, multi-user configuration allows multiple users to be set up with a login name and password and for any one of these users to log onto the application on the PC at any one time. A smart card reader is also installed on the PC to allow a user to submit payment files to Bacs over the internet using a smart card and a pin number.

Microgen Bacway IP Enterprise
Recognising a need within organisations to manage diverse applications from multiple departments, Microgen Bacway IP Enterprise server software is designed to provide organisations with a scalable, networked multi-user configuration. This type of configuration enables one user, for example in the Accounts Payable department, to prepare payment files for submission to Bacs whilst allowing a second user, for example the Finance Director, to authorise the transaction despite being in a different physical location. User access to the system is browser based from user PCs, allowing users to submit payment files to Bacs over the internet using a smart card and a pin number.

Microgen Bacway IP Enterprise Plus
Microgen Bacway IP Enterprise Plus is at the top end of the Microgen product range. It is able to handle high volumes of transactions and complex environments with multiple payment applications, multiple sponsoring banks, manual and automated processes and detailed security requirements. A key feature is that the software utilises a Hardware Security Module (HSM) to apply signatures to Bacs submissions thereby removing the need for manual intervention and the use of smart cards and pin numbers. User access to the system is browser based from the users PC. Manual control is configurable and if required, users can apply signatures manually. The software and HSM also enable organisations to download reports about their submissions automatically.

To find out more please contact us.

During 2013 all employers will need to ensure their Bacs payments software supports the HM Revenue & Customs (“HMRC”) Real Time Information (“RTI”) process.

All Microgen’s Bacs payments software is RTI compliant. Existing Microgen customers and new customers that choose Microgen’s payments products will not need to upgrade to new software during 2013 to ensure HMRC RTI compliance.

What is HMRC RTI?

HMRC RTI is a change to the way employers and pension providers provide information to HMRC about individuals’ tax, National Insurance contributions and other deductions.

Using RTI, employers and pension providers will tell HMRC about deductions when or before the payments are made via Bacs (i.e. in ‘real time’), instead of waiting until after the end of the tax year.

RTI is designed to improve the operation, efficiency and accuracy of Pay As You Earn (“PAYE”) by:

  • making the PAYE process simpler and less burdensome for employers by removing the need for the end of year return forms and by simplifying the employee starting and leaving processes.
  • making PAYE more accurate for individuals, over time reducing the number of bills and repayments sent after the end of the tax year

What is the timeline for the introduction of RTI?

During 2013, all employers and pension providers paying individuals by Bacs will be required to submit RTI information to HMRC. The current timeline published by HMRC is:

  • April 2012 – Pilot phase commenced.
  • March 2013 – 250,000 large and medium-sized employers (50+ employees) must submit information using the RTI process.
  • August 2013 – All small employers (<49 employees) must submit information using the RTI process.
  • October 2013 – RTI scheme fully in place for all employers.

How does RTI work in detail?

Under the new RTI process, when employers or pension providers use Bacs to make individual payment submissions (either direct through accredited Bacs software or indirect via a Bacs bureau), they will also have to send the payment data as an RTI record to HMRC via the Government Gateway.

HMRC will require each payroll payment record and each associated RTI record to have a new four character reference. The new reference will allow a direct and reconcilable link between payment data sent via Bacs and RTI information sent to HMRC via the Government Gateway.

This new four character reference will need to be generated by an employer’s payroll / pension software. Employers must ensure that their payroll software has this required RTI functionality.

The reference number will then need to be assigned to the corresponding Bacs payment before submission to Bacs. Employers must ensure that their Bacs software is able to include this reference number in the payments files it generates for submission to Bacs.

What do you need to do to ensure you are RTI compliant?

  • Ensure that your payroll software has the required RTI functionality to generate the new four character reference.
  • Ensure that your Bacs software is able to include this reference number in the payment files it generates for submission to Bacs.

All Microgen’s Bacs payments software is RTI compliant. Existing Microgen customers and new customers that choose Microgen’s payments products will not need to upgrade to new software during 2013 to ensure HMRC RTI compliance.

Microgen Bacway RTI Compliant Solutions

For further information about the implications of RTI on your payments software requirements and how Microgen’s payment products can help to drive down your business costs, please request a call back or contact us directly at bacstel.support@microgen.com.

Further HMRC information on RTI can be found at the HMRC website http://www.hmrc.gov.uk/rti/employerfaqs.htm#2.