Are my wages right?

[keyser666]

Hi guys, thanks for recent help, just need someone to look over these figures as I think I am missing £300+ here somewhere.

Edited and removed


This payment was for last month a 5 week month and should have come under last years tax year. I dont understand how I am paying under PAYE but also paying Employees and Employers NIC.

I also received the following wageslip:


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I asked about the holiday pay in this and the folowing was said

"

Holiday pay is included in your wage uplift from the agency, rather that accrue it we roll it up and pay it to you up front, the reason being a lot of contractors don’t get the opportunity to take all their holidays so we want to ensure you still get what you are entitled to.

Commission is the remainder between national minimum wage, plus holiday pay and Employers NIC (also covered in the wage uplift)so the difference between roughly £8 per hour and your hourly rate, the commission element is the part of your wage that you can claim expenses against for tax relief, we cannot process expenses against anything that is deemed as salary.

[stek]

Are my wages right?

Looks ok to me, suspect you forgot to consider employers NI.

[LisaContractorUmbrella]

Basically - your daily rate will be in the business to business contract between the umbrella company and the agency (or end client). The umbrella company will invoice the agency who will then send payment - from this payment an amount will be deducted which is payable to HMR&C for Employer's NI, an amount will be retained by the umbrella company as their margin and what is left is your salary. Your salary is then subject to income tax and employees national insurance.

Oh and by the way rolled up holiday pay is unlawful under the terms of the EC Working Time Directives

[eek]

Two things:

1) due to the date the money arrived this payment is in the 2013-14 tax year.

2) As Stek says you've forgotten that you are paid gross by the client the umbrella needs to deduct both Employee and Employer NI.

[keyser666]

Thanks for your responses.

I included the bit about rolled up holiday because i remember, I think you Lisa, saying on another post that this is no longer allowed.

Does this mean that they are holding the £290 for me? What are the implications of rolled up holiday? Is there a laymans explanation?

[LisaContractorUmbrella]

Thanks for your responses.

I included the bit about rolled up holiday because i remember, I think you Lisa, saying on another post that this is no longer allowed.

Does this mean that they are holding the £290 for me? What are the implications of rolled up holiday? Is there a laymans explanation?

Rolled up holiday pay means that, in normal employment, a proportion of your regular wages each week is intended to cover you when you take holiday. The EC (for reasons best known to themselves) decided that holiday pay should be separate from normal earnings and should be shown separately on the payslip at the point at which you take holiday. Whilst your payslip does show a separate entry for holiday pay, I assume that you did not take holiday during the earnings period?
More info here: https://www.gov.uk/holiday-entitleme...pay-the-basics

[keyser666]

Rolled up holiday pay means that, in normal employment, a proportion of your regular wages each week is intended to cover you when you take holiday. The EC (for reasons best known to themselves) decided that holiday pay should be separate from normal earnings and should be shown separately on the payslip at the point at which you take holiday. Whilst your payslip does show a separate entry for holiday pay, I assume that you did not take holiday during the earnings period?
More info here: https://www.gov.uk/holiday-entitleme...pay-the-basics

No lisa I did not take an holiday during this period. I am also unlikely to take holiday as I work in a 24/7 support environment on shift basis. 2 days off per week but if say I wanted 4-5 days off I would swap my working shift days with someone who isn't working so could effectively have a week off without missing out on my monthly hours.

Have they witheld this money?

[LisaContractorUmbrella]

No lisa I did not take an holiday during this period. I am also unlikely to take holiday as I work in a 24/7 support environment on shift basis. 2 days off per week but if say I wanted 4-5 days off I would swap my working shift days with someone who isn't working so could effectively have a week off without missing out on my monthly hours.

Have they witheld this money?

No it doesn't look as though it has been withheld - it's just not the correct way of dealing with holiday pay

[moggy]

Rolled up holiday pay means that, in normal employment, a proportion of your regular wages each week is intended to cover you when you take holiday. The EC (for reasons best known to themselves) decided that holiday pay should be separate from normal earnings and should be shown separately on the payslip at the point at which you take holiday. Whilst your payslip does show a separate entry for holiday pay, I assume that you did not take holiday during the earnings period?
More info here: https://www.gov.uk/holiday-entitleme...pay-the-basics

If I'm reading this correctly, then this link seems to state that "rolled up holiday pay" would in fact be included in the hourly rate. As its defined as holiday its then not "rolled up" as per the explanation, and so can be put aside for his holiday time, and for himself to earn interest on himself rather than his umbrella earning the interest on it. Clearly there might be other definitions regarding this, but thats how this reads to me with this particular link.

[LisaContractorUmbrella]

If I'm reading this correctly, then this link seems to state that "rolled up holiday pay" would in fact be included in the hourly rate. As its defined as holiday its then not "rolled up" as per the explanation, and so can be put aside for his holiday time, and for himself to earn interest on himself rather than his umbrella earning the interest on it. Clearly there might be other definitions regarding this, but thats how this reads to me with this particular link.

But the point of the regulation was for holiday pay to be paid when the employee takes holiday and not each week as part of their earnings as is the case here