A new integration between Sage and Equifax claims to cut time spent on background checks for UK employees when they apply for loans and mortgages.
All Paul Accountants uses Sage Payroll to run payrolls for all our employer clients and their employees.
Sage plc, a supplier of accounting and payroll software, have announced a partnership with Equifax, the global data, analytics, and technology company. Equifax is one of the top credit check companies used in the UK. The service is made possible by a new integration between Sage payroll software and Verification Exchange from Equifax, a US$1.5 billion investment.
The partnership will automate financial and employment checks required by lenders when employees apply for loans, mortgages or new jobs.
Employees often need to collect and provide various documents to banks and loan providers as part of a mortgage or loan application process to verify their employment status or salary details. The new partnership with Sage and Equifax aims to streamline the process, thereby reducing the administrative burden on employees.
More than 40% of UK private sector employers use Sage Payroll software to process their employees’ payroll. Equifax plays an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence.
The verification process begins when an employee applies for a loan, a new job or a service that requires a data check. The employee gives their authorisation to a ‘verifier’, such as a bank, to make a request to the Equifax Verification Exchange to confirm their income and/or employment status. This system can quickly and accurately process the request without the need for the employee to provide copies of previous payslips.
Employment information is only delivered to the verifier, through a secure Verification Exchange via Sage plc. All Paul Accountants use Sage Payroll to process payrolls and prepare payslips, P60s and P45s etc. We do not directly provide the employment information direct to the verifier; this comes via Sage plc.
This service is free for employers, and their employees, that use Sage Payroll, e.g. via their accountant. The fees are paid for by the banks and loan companies using it to verify an employee’s employment position and income.
With the Bank of England today hiking the interest base rate, up from 3.5% to 4%, its highest level since the financial crash in 2008, you may find that the employment income and verification service may be used by more employees trying to reduce their mortgage and loan costs.
The base rate rise comes as inflation remains at a near 40-year high, of 10.5%, and businesses are creaking under the cost-of-living crisis, rising energy bills and requests for increased staff wages.