Thank you for joining Payco Employment as an employee. For us, the most important thing is that you understand what we do and why we do it. Also that your choice to work for Payco Employment always works for you.
There are a number of reasons but we think they often come down to having one consistent employer. You earn your living working on different contracts, they may be long or short, or both, but working directly for a host of different agencies is complicated, time consuming and difficult to keep up with. Being an employee of Payco Employment is the opposite of all these as we have all your
details, we always let you know what is going on and if anything changes with you, as your employer, we are the only people you need to inform.
This really is very important for us. We have heard that working for an umbrella company can be complicated but it really isn’t and it never has to be and so we work extremely hard to ensure you never think it is. We believe the key is clear paperwork, information and explanation and these are all things you will find with Payco.
As an employee of Payco Employment you work for us and we work for the Agencies that have the contracts you work on for us. You may or may not have had the option to work directly for the agency but when you work for us the rate agreed is, and should always be, the best rate the agency can pay us as it is all they will pay. It is the rate we charge to the agency and is payable to us, your employer. As your employer we then have costs which we work hard to keep to the absolute minimum as we appreciate as a business it is very, very important we provide absolute value for money. After this we then pay you the rate that we have contractually agreed to pay you.
Employment costs are the sole responsibility of the employer and as we are your employer then these costs fall on us. On any contract you work on there is what is called a “contractual chain”, you’re in it, we’re in it, the agency is in it and the client receiving the direct benefit of the work you do is it. Payment rates are agreed down the chain, the Client will agree one with the Agency and if they were able and you wanted to work directly for the agency then they would have to meet the employment costs and your pay rate would reflect that. Instead, they pay the best rate they can to us. From the rate the agency pays to us we pay the employment costs and take our profit margin and we then pay you so we make sure you don’t lose out.
The most important thing to note here is that expenses are not paid in addition to your weekly income but are paid free of tax, meaning that you do not pay tax on the amount of earnings equal to the amount of your allowed expense claim for each week. In other words you are allowed an amount that it costs you to go to work, your expense claim, and you are not deducted tax from it. Your expenses total will be shown on your P11d form, which is remitted to the HMRC at the end of each Tax Year. In the event that the HMRC review your individual records and deem that some of your expenses claimed were not wholly or exclusively necessary in the performance of your duties for business purposes, then these expenses would almost certainly be treated as a benefit in kind and you would be personally liable for any additional taxation due. That is why we check expenses carefully and ensure that expenses are always allowed entirely at the discretion of our company.
This is where the benefit of having one consistent employer can really work for you. Rather than have short contracts all over the place or even if you do stay on some contracts long enough to auto-enrol in a pension you would have little pockets of not much all over the place. As our employee we will enrol you into the award winning “Peoples Pension” widely considered as the best such pension on the market.
This consistency can give you the option of other benefits which are available through our Payco Employment Plus option. Contact us today to find out more.
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