The first time you see an umbrella company payslip you could be forgiven for being a little confused, as it contains more information than you may be used to seeing on a PAYE payslip. This guide will take you through our payslip item by item explaining as we go.
The document comes in two parts, the first page is the payslip itself, the second is a reconciliation statement to let you see where every penny of the money that has been paid by the agency is going.
The top line will tell you the tax period and week ending date that you are being paid for, this would normally be the week before your payday, most agencies work a week in hand to allow timesheets and invoices to be processed.
You will see your name and National Insurance number next.
After this there are two side-by-side sections, Payments and Deductions.
In Payments you will be able to see how many hours you are being paid for at the National Minimum Wage, and how much additional pay is being paid after the company costs have been taken out. Both of these payments are taxable. This is also the section where you will see any other payments that are being made, such as Holiday Pay or SSP.
In Deductions you will see items such as your personal National Insurance, Income Tax and any workplace pension deductions. As an employee of TUS, you have access to our Employer Pension Scheme, which is operated by NEST. The scheme is designed to provide you with a low cost, flexible plan to reflect and adapt to the terms of the contracts you accept and ensure that you can continue to fund for your retirement whilst maximising your tax benefits.
If you are in the pension scheme, the amount shown on your payslip will be paid over to the scheme for you.
The Pensions Auto Enrolment percentages for Employee and Employer contributions from April 2020 are set to 5% and 3% respectively as we operate the ‘equal to basic pay’ scheme. We will calculate the auto enrolment amount based on the actual hours worked at National Minimum Wage, currently £8.91 per hour (depending on age may be lower). For those with a daily rate it will be assumed that your working week is 37.5 hours unless the B2B contract states differently.
If you wish to set a fixed or larger amount for your pension, then please do let us know and we will ensure this is set up for you.
At the bottom, you will see a summary for this period (work week or month), and your year-to-date figures. You will also see your Tax Code, which will have come from your P45 that you gave us or will have been supplied by HMRC.
At the bottom right is the all-important figure of your Net Pay which is the amount that will be deposited in your bank.
Again, the top line is your name, date and NI Number.
Company Receipts are the total amounts that have been received by us from the agency, you will recognise the hourly/daily rate as the one mentioned by the agency when you were first offered the contract position.
Company Costs are the figures which will be used to calculate the Additional Pay we detail on the payslip. Company Overhead is the total amount that TUS makes from the transaction, you would not normally know the amount of profit that an employer makes from your services.
Employers NIC is the Employers National Insurance Contribution, all employers pay this but, again, you may not usually see this on an ordinary employer’s payslip.
Pension Costs are the Employers side of the workplace pension scheme as detailed before.
Holiday Pay is accrued at the rate of 12.07%, this is the equivalent of the legal requirement for holiday pay. Although this amount has been calculated at this point it is still yours. Holiday Pay is kept by us until you ask that it is paid out, i.e. when you have a week off or when you are between placements. Don’t forget, this amount has been deducted before any tax or NI has been calculated so when it is paid it will be subject to tax, NI and pension deductions if you have joined our NEST pension scheme.
Next you will see the calculation used to show what your gross pay will be, this is split into the National Minimum wage and the additional Pay.
We hope this guide helps, if you have any further queries please do not hesitate to contact us.
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