Why am I paying Employers NI?

[lucyclarityumbrella]

OK let's take IR35 out of the question as this was not even mentioned in context to what was advertised. What was said when you were offered the role - did you have the choice as to whether to operate Ltd or Umbrella?

[Cheesus]

Hi All,

newly joined,
it is only recently i have seen and worked out i am paying the Employers NIC,

if im right, the agency advertising the role should advertise this at the amount after employers NIC is taken into account?
example: job advert shows £150 per day
this should be paid to the umbrella at say £165 to cover employer NIC and shown on the wageslip as wage uplift?

any able to clarify?

[eek]

Hi All,

newly joined,
it is only recently i have seen and worked out i am paying the Employers NIC,

if im right, the agency advertising the role should advertise this at the amount after employers NIC is taken into account?
example: job advert shows £150 per day
this should be paid to the umbrella at say £165 to cover employer NIC and shown on the wageslip as wage uplift?

any able to clarify?

Until April there are no regulations regarding how an agency should advertise rates (include employers NI to provide an umbrella rate, PAYE rate or even the estimated take home after all tax paid).

After April there is still no regulation regarding how agencies should advertise rates but they will need to provide a key facts / information document which can be found at Providing a 'Key information document' for agency workers: guidance for employment businesses - GOV.UK

At the moment I think agencies use outside IR35/ umbrella rates but I think PAYE rates will become more common. They definitely will need to be made clearer as different agencies try different methods / rates for the same contract.

[LetterBox]

Hi All,

newly joined,
it is only recently i have seen and worked out i am paying the Employers NIC,

if im right, the agency advertising the role should advertise this at the amount after employers NIC is taken into account?
example: job advert shows £150 per day
this should be paid to the umbrella at say £165 to cover employer NIC and shown on the wageslip as wage uplift?

any able to clarify?

Ah, you noticed.

Murky at present. Always best to ask the agency, if they have no idea what you're talking about, walk away. It'll become uniform soon enough as eek says, until then, insist on a breakdown.

What you'll really want to keep an eye on are PAYE rates and if given benefits are separate costs to the client or considered covered in the daily rate.

All this chat about PAYE is quite depressing, this site is turning into a knowledge base for well paid temps.

[jamessnow]

I just always thought that the advertised rates assumed that contractors would swallow the employers NI. It seems a little unfair as these large Companies avoid enough by having people operating through Umbrella's rather than employed directly by them. Maternity, sick, insurances etc etc.