Parasol - Employment Cost Parasol - Employment Cost
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  1. #1

    Nervous Newbie


    Join Date
    Mar 2013
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    3

    Default Parasol - Employment Cost

    Hi
    I know this topic was already posted in forum last year. I needed an answer from current situation not knowing if this has changed from last year.

    I joined Parasol in Nov 12 and used them for 3 months. Now in Feb 13, i've managed to get my own Ltd company.

    I have only just checked in detail my last 3 payslips from parasol and it had employment cost in there. So far I have roughly paid £650 in the last 3 months. they had payslip explanation and right towards the end the put Employment Cost detail which states:

    Employment costs are an amount retained from the invoice that Parasol receives from the agency/client. The amount retained needs to cover the costs incurred by Parasol to employ you on a full contract of employment and comply with legislation. For example 13.8% is retained for Employers’ NIC. We have always retained the NIC but it’s now displayed on your payslip as an employment cost.

    My question now is that should I have done something and is it my fault that i let them deduct it for last 3 months?

    Even though i just left Parasol, is there anything that can be done?

    I am not good with accounting and I was just told that my net will be around 75% of the gross salary every month and I kind off just concentrated on that .


    Please advice.

    Appreciate your help and advice

    thanks

  2. #2

    Umbrella Queen

    LisaContractorUmbrella's Avatar
    Join Date
    Jun 2006
    Location
    Colchester
    Posts
    5,370

    Default

    Quote Originally Posted by Mastersaab View Post
    Hi
    I know this topic was already posted in forum last year. I needed an answer from current situation not knowing if this has changed from last year.

    I joined Parasol in Nov 12 and used them for 3 months. Now in Feb 13, i've managed to get my own Ltd company.

    I have only just checked in detail my last 3 payslips from parasol and it had employment cost in there. So far I have roughly paid £650 in the last 3 months. they had payslip explanation and right towards the end the put Employment Cost detail which states:

    Employment costs are an amount retained from the invoice that Parasol receives from the agency/client. The amount retained needs to cover the costs incurred by Parasol to employ you on a full contract of employment and comply with legislation. For example 13.8% is retained for Employers’ NIC. We have always retained the NIC but it’s now displayed on your payslip as an employment cost.

    My question now is that should I have done something and is it my fault that i let them deduct it for last 3 months?

    Even though i just left Parasol, is there anything that can be done?

    I am not good with accounting and I was just told that my net will be around 75% of the gross salary every month and I kind off just concentrated on that .


    Please advice.

    Appreciate your help and advice

    thanks
    Umbrella companies, as with all other UK employers are obliged to pay Employer's National Insurance contributions. This amount as well as the umbrella company's margin is deducted from the contract rate (contained within the business to business contract between the umbrella company and agency); the balance is then processed for you through PAYE as your salary
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