+ Reply to Thread
Page 1 of 11 1 2 3 ... LastLast
Posts 1 to 10 of 108
  1. #1

    Nervous Newbie


    Join Date
    Jan 2012
    Posts
    11
    Thanks (Given)
    0
    Thanks (Received)
    1
    Likes (Given)
    0
    Likes (Received)
    0

    Default Parasol - Employment Costs - extra charges??

    I've been with Parasol for over 4 years and I have always been pleased with their service, and have trusted them to pay me the right amount and on time, which they generally did a good job of doing.

    This month I decided to actually run through the calculations on my latest Parasol monthly payslip since they changed the payslip format back in October. My math skills aren't all that great but I discovered a charge which I couldn't account for. On the new payslip underneth the 'Parasol Margin' deduction line (£119.50 incidentally), there is another deduction line labeled 'Employment costs', this is a total of the employer NI charges, and in my case my pension contribution, cushty...or so I thought. But having calculated the 'er NI and pension contribution I was left with a mysterious unaccounted £128 charge which had been taken by Parasol from my invoice receipt.

    I called Parasol to be told (in a very guarded manner) that the £128 charge is an extra deduction to cover Parasol insurance and operating costs - he was all a bit vague to be honest. That's very strange, I said, as I thought liability/indemnity insurance is already covered in my standard £119.50 fee. And any other charges would be complete news to me. Apparently not he said. I asked for a breakdown of the £128 to find out exactly what it represented. The Parasol guy told me that he would need to investigate and email me back the breakdown. He couldn't wait to get me off the phone.

    I'll await their response tomorrow, but something doesn't feel quite right. I will update tomorrow.
    Last edited by fred857; 25th January 2012 at 06:03.

  2. #2

    Nervous Newbie


    Join Date
    Jan 2012
    Posts
    11
    Thanks (Given)
    0
    Thanks (Received)
    1
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    I've figured it with the help of @Wary's explanation over on the other Parasol charging thread:

    http://forums.contractoruk.com/umbre...ml#post1468212

    I'll see what Parasol come back to me with tomorrow. But am feeling really disappointed in them.

  3. #3
    Yil
    Yil is offline

    Nervous Newbie


    Join Date
    Feb 2012
    Posts
    7
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    1
    Likes (Received)
    0

    Default

    I’ve reviewed the threads talking about Parasols rather opaque “Employment Costs” payslip line item and how it pertains to employers NI but I’d like to confirm that I understand the issue correctly:

    Employers NI should be calculated as (for a weekly invoice cycle):
    ((Invoice Amount - £136 – Parasol Fee – Allowable Expenses) * 13.8) / 113.8)

    However Parasol are not including the “Allowable Expenses” component of this calculation.

    Is this summary correct?

  4. #4

    Should post faster


    Join Date
    Nov 2011
    Posts
    116
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by Yil View Post
    I’ve reviewed the threads talking about Parasols rather opaque “Employment Costs” payslip line item and how it pertains to employers NI but I’d like to confirm that I understand the issue correctly:

    Employers NI should be calculated as (for a weekly invoice cycle):
    ((Invoice Amount - £136 – Parasol Fee – Allowable Expenses) * 13.8) / 113.8)

    However Parasol are not including the “Allowable Expenses” component of this calculation.

    Is this summary correct?
    Assuming they apply the weekly Employers NI calculation (i.e. a threshold of £136 as opposed to a monthly £589) and assuming you have no pension contribution, that seems correct to me. If they're applying a weekly calculation then I presume your invoices & expenses are weekly? It is these weekly amounts and their weekly fee that you should plug into the above calculation.
    Last edited by Wary; 2nd February 2012 at 12:54.

  5. #5

    Super poster

    The Spartan's Avatar
    Join Date
    Nov 2011
    Location
    Back in the Big Smoke
    Posts
    3,024
    Thanks (Given)
    24
    Thanks (Received)
    39
    Likes (Given)
    198
    Likes (Received)
    200

    Default

    There's a few people on here who been screwed by Parasol's "Employment Costs" the best thing to do is leave and spread the word to anyone else who uses their service
    Representing brand SPARTAN!!

  6. #6
    Yil
    Yil is offline

    Nervous Newbie


    Join Date
    Feb 2012
    Posts
    7
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    1
    Likes (Received)
    0

    Default

    Quote Originally Posted by The Spartan View Post
    There's a few people on here who been screwed by Parasol's "Employment Costs" the best thing to do is leave and spread the word to anyone else who uses their service
    I may very well end up doing this but I want to ensure that I have my facts correct before I approach Parasol with this and give them a fair opportunity to respond!

  7. #7

    Super poster

    The Spartan's Avatar
    Join Date
    Nov 2011
    Location
    Back in the Big Smoke
    Posts
    3,024
    Thanks (Given)
    24
    Thanks (Received)
    39
    Likes (Given)
    198
    Likes (Received)
    200

    Default

    Quote Originally Posted by Yil View Post
    I may very well end up doing this but I want to ensure that I have my facts correct before I approach Parasol with this and give them a fair opportunity to respond!
    They'll probably give you the same response they gave to me the extra is to cover Payroll costs, SMP and SSP even though you'll never use them. Basically they're using it to cover their AWR costs even though they can claim 92% of it back.
    Representing brand SPARTAN!!

  8. #8

    Fingers like lightning

    Nixon Williams's Avatar
    Join Date
    Sep 2006
    Posts
    916
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by The Spartan View Post
    They'll probably give you the same response they gave to me the extra is to cover Payroll costs, SMP and SSP even though you'll never use them. Basically they're using it to cover their AWR costs even though they can claim 92% of it back.
    An umbrella company will effectively only be able to reclaim 92% of the SMP costs, they will be too big to reclaim any SSP costs.

  9. #9

    Super poster

    The Spartan's Avatar
    Join Date
    Nov 2011
    Location
    Back in the Big Smoke
    Posts
    3,024
    Thanks (Given)
    24
    Thanks (Received)
    39
    Likes (Given)
    198
    Likes (Received)
    200

    Default

    Even so they weren't very forthcoming about it in the first place hence I left them
    Representing brand SPARTAN!!

  10. #10

    Nervous Newbie


    Join Date
    Feb 2012
    Posts
    1
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default was screwed by parasol

    Quote Originally Posted by The Spartan View Post
    There's a few people on here who been screwed by Parasol's "Employment Costs" the best thing to do is leave and spread the word to anyone else who uses their service
    They took my money and blame it on what they call 'employment costs'... never again with them.

+ Reply to Thread
Page 1 of 11 1 2 3 ... LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.