New umbrella company required!

[LisaContractorUmbrella]

Skillmaster

I can't give you a more detailed explanation about Parasols' procedures because I don't work for them but, basically, all umbrella companies should work in exactly the same way. A contract value will be arranged between the umbrella company and your agency of say £300 per day. From this rate your umbrella company is obliged to make payments to you and HMR&C - what is left is retained as the umbrella company's profit (usually referred to for simplicity sake as a fee). Because an umbrella company is an employer they also have to pay holiday pay - this is dealt with by making a weekly/monthly deduction and then repaying the amount when you are on holiday; this is the accepted way of dealing with holiday pay (when the EC Working Time Directives came in I contacted HMR&C, ACAS, BIS and the legislative office in Brussels to confirm that there was no alternative). There should be no other mandatory deductions from your earnings as things like SSP, SMP, SSP etc and payments between assignment, under the AWR, are all statutory payments i.e. a legal requirement.

HTH but I know that Steve@Parasol is always quick to come back to queries so I am sure he will answer any other questions you have about Parasol specifically

[geoff from contracta IOM]

Skillmaster

I can't give you a more detailed explanation about Parasols' procedures because I don't work for them but, basically, all umbrella companies should work in exactly the same way. A contract value will be arranged between the umbrella company and your agency of say £300 per day. From this rate your umbrella company is obliged to make payments to you and HMR&C - what is left is retained as the umbrella company's profit (usually referred to for simplicity sake as a fee). Because an umbrella company is an employer they also have to pay holiday pay - this is dealt with by making a weekly/monthly deduction and then repaying the amount when you are on holiday; this is the accepted way of dealing with holiday pay (when the EC Working Time Directives came in I contacted HMR&C, ACAS, BIS and the legislative office in Brussels to confirm that there was no alternative). There should be no other mandatory deductions from your earnings as things like SSP, SMP, SSP etc and payments between assignment, under the AWR, are all statutory payments i.e. a legal requirement.

HTH but I know that Steve@Parasol is always quick to come back to queries so I am sure he will answer any other questions you have about Parasol specifically

Are you saying then that you don't deduct Employers NI from contractors ? How very generous where do I sign ?

[LisaContractorUmbrella]

Are you saying then that you don't deduct Employers NI from contractors ? How very generous where do I sign ?

Nope. I said that from the rate we make payments to the individual, HMR&C and retain a profit - to clarify the payment made to HMR&C includes income tax, employee's national insurance, employer's national insurance

[geoff from contracta IOM]

Nope. I said that from the rate we make payments to the individual, HMR&C and retain a profit - to clarify the payment made to HMR&C includes income tax, employee's national insurance, employer's national insurance

So you provide holiday pay, sick pay and SMP free to contractors or is it all wrapped in your " fee " ?

[LisaContractorUmbrella]

So you provide holiday pay, sick pay and SMP free to contractors or is it all wrapped in your " fee " ?

Our fee is £26.50 per week and there are no additional deductions of any sort for SMP and SSP which are made in the same way as any other employer. 92% of SMP is recoverable from HMR&C, again as with any other employer, but the remaining 8% is taken as a cost of business.

[geoff from contracta IOM]

Our fee is £26.50 per week and doesn't include deductions of any sort for SMP and SSP which are made in the same way as any other employer. 92% of SMP is recoverable from HMR&C, again as with any other employer, but the remaining 8% is taken as a cost of business.

Forgive my ignorance but Parasol are publishing their "fee" then charging for SSP and SMP ect. regardless of whether you are a man or woman then reclaiming 92% of these costs IF they incur them from HMRC anyway ?

[LisaContractorUmbrella]

Forgive my ignorance but Parasol are publishing their "fee" then charging for SSP and SMP ect. regardless of whether you are a man or woman then reclaiming 92% of these costs IF they incur them from HMRC anyway ?

Don't work for Parasol Geoff so can't comment sorry

[skillmaster22]

correct

your right geoff and thats what they are doing with me, still havent got that breakdown yet, the circle jerking continues, all you pay is 1 fee ++++ all the other deductions, no mention of that on the site!

[Steven@Parasol]

your right geoff and thats what they are doing with me, still havent got that breakdown yet, the circle jerking continues, all you pay is 1 fee ++++ all the other deductions, no mention of that on the site!

I have published how we calculate employment costs on this and other threads on this forum as per the below. We also have a payslip payslip explanation that is available with each payslip and is published on the MyParasol portal. Everyone who joins us informed that they also pay Employers' NIC just like anyother true umbrella company.

Skillmaster has understandably been asking for more detail and I have been chasing this up for him myself along with senior memebers of our operations team but I won't be publishing details that are personal to one of our employees on this or any other forum. As I explained in an email exchange yesterday I hadn't had the chance to speak to everyone I needed to yesterday and with apologies it was likely to be today that I could get back to him.

As mentioned earlier though I have published the following:

Parasol keeps part of the invoice value it receives from the agency which is used in two ways. Firstly we retain our margin which is £27.50 per week or £119.50 per month. The second part is retained to cover employment costs.

Employment costs consist mainly of Employers’ National Insurance Contributions (NIC) but they also include amounts to cover your insurance costs, as well as enough funds in order to pay you should you be on sick leave or maternity leave etc for example.

The rate of Employer’s NIC is currently 13.8% of earnings above £136 per week.

At Parasol we calculate employment costs to be 13.8% of the invoice value we raise for your work, minus our margin and the NIC free amount of £136 per week. For example, if we raise an invoice for your work of £1,000 a week, the employment cost will be calculated as follows:

£1,000 - £27.50 Parasol margin - £136 NIC free allowance = £836.50

£836.50 x (13.8/113.8) = £101.44

So in the example above the employment cost is £101.44

You can see the amounts we retain outlined in the ‘Pay in Detail’ section of your payslip. For anyone that was with us before we introduced the new payslips this would have been listed as Employers’ National Insurance on the actually slip.

If you do want to go through this in more detail then please get in touch with us or PM me with your details and when you are free for a chat and we can call you.

Steven

[geoff from contracta IOM]

I have published how we calculate employment costs on this and other threads on this forum as per the below. We also have a payslip payslip explanation that is available with each payslip and is published on the MyParasol portal. Everyone who joins us informed that they also pay Employers' NIC just like anyother true umbrella company.

Skillmaster has understandably been asking for more detail and I have been chasing this up for him myself along with senior memebers of our operations team but I won't be publishing details that are personal to one of our employees on this or any other forum. As I explained in an email exchange yesterday I hadn't had the chance to speak to everyone I needed to yesterday and with apologies it was likely to be today that I could get back to him.

As mentioned earlier though I have published the following:

Parasol keeps part of the invoice value it receives from the agency which is used in two ways. Firstly we retain our margin which is £27.50 per week or £119.50 per month. The second part is retained to cover employment costs.

Employment costs consist mainly of Employers’ National Insurance Contributions (NIC) but they also include amounts to cover your insurance costs, as well as enough funds in order to pay you should you be on sick leave or maternity leave etc for example.

The rate of Employer’s NIC is currently 13.8% of earnings above £136 per week.

At Parasol we calculate employment costs to be 13.8% of the invoice value we raise for your work, minus our margin and the NIC free amount of £136 per week. For example, if we raise an invoice for your work of £1,000 a week, the employment cost will be calculated as follows:

£1,000 - £27.50 Parasol margin - £136 NIC free allowance = £836.50

£836.50 x (13.8/113.8) = £101.44

So in the example above the employment cost is £101.44

You can see the amounts we retain outlined in the ‘Pay in Detail’ section of your payslip. For anyone that was with us before we introduced the new payslips this would have been listed as Employers’ National Insurance on the actually slip.

If you do want to go through this in more detail then please get in touch with us or PM me with your details and when you are free for a chat and we can call you.

Steven

So if I am calculating this correctly your "FEE" is actually 50.07 a week or 216.97 per month or 2603.64 per year ?eek: That covers a hell of a lot of maternity pay for male contractors especially when you get 92% back from HMRC !