Reply to: Salary sacrifice time delay

[GreenLantern22]

Given the fees charged by umbrella companies, they probably need hundreds of 'employees' to be able to cover costs. Even where these 'employees' have differing levels of pension subscription and providers, once setup this should be the bread and butter of the payroll software umbrella companies use.

In business any party delaying payment of a supplier after being paid by a client is benefiting from holding the funds in the interim.

Part of the problem with this client-agent-umbrella-employee supply chain is the credit line.

Frankly, work like an employee should equate to being paid like an employee; really a party providing an 'inside' determination should be required to pay all workers on the same schedule as its direct employees.

Umbrella workers should not be required to provide business supply chains with personal credit.

Couldn't agree more. We oay way more taxes, have way less benefits (no sick pay, no paid holidays, etc) and yet we are treated like second class citizens...

[Peoplesoft bloke]

Part of the problem with this client-agent-umbrella-employee supply chain is the credit line.

Frankly, work like an employee should equate to being paid like an employee; really a party providing an 'inside' determination should be required to pay all workers on the same schedule as its direct employees.

Umbrella workers should not be required to provide business supply chains with personal credit.

100% agree - the one time I did an inside gig I got weekly payments and once they started with the "we haven't received invoice/timesheet/paperwork" nonsense, I threatened to walk if they didn't pay on time. It was a panic project though.

[GreenLantern22]

The 19th or 22nd of the month is not >40 days after the payment hits your personal bank account, is it?
"Therefore" you must be mistaken on when you are getting paid.
You seem to be jumping from one argument to another, perhaps implying they are linked, but without stepping back.

Yes it is. PayStream are pretty good with salary payments and usually pay me the same day the agency pays or the day after. However the issue is with salary sacrifice payments. For instance I got paid 9-Dec-2025 so they:

1. They have the exact calculation of how much should go into my pension
2. They already have the money for this payment as it comes from the same agency payment as my salary

The salary sacrifice payment won't reach my pension until 19-Jan-2026 so that's 41 days after.

[Protagoras]

I realise those who think an umbrella only has one contractor working for them will question why that would take more than a few minutes, but most umbrellas have a few contractors, all with their own special set of circumstances.

Given the fees charged by umbrella companies, they probably need hundreds of 'employees' to be able to cover costs. Even where these 'employees' have differing levels of pension subscription and providers, once setup this should be the bread and butter of the payroll software umbrella companies use.

In business any party delaying payment of a supplier after being paid by a client is benefiting from holding the funds in the interim.

Part of the problem with this client-agent-umbrella-employee supply chain is the credit line.

Frankly, work like an employee should equate to being paid like an employee; really a party providing an 'inside' determination should be required to pay all workers on the same schedule as its direct employees.

Umbrella workers should not be required to provide business supply chains with personal credit.

[eek]

The 19th or 22nd of the month is not >40 days after the payment hits your personal bank account, is it?
"Therefore" you must be mistaken on when you are getting paid.
You seem to be jumping from one argument to another, perhaps implying they are linked, but without stepping back.

Work March, umbrella receives money in April, paid into pension on Xth May. I can see where the idea of 40 days come from

[WTFH]

Therefore why does it need to delay >40 days to make the salary sacrifice payment into my pension provider?

The 19th or 22nd of the month is not >40 days after the payment hits your personal bank account, is it?
"Therefore" you must be mistaken on when you are getting paid.
You seem to be jumping from one argument to another, perhaps implying they are linked, but without stepping back.

[GreenLantern22]

And to add to that, each month has to be calculated, unlike in permidom where your annual salary is agreed, and then all monthly payments/deductions/SalSac are calculated as 1/12th of the annual figure, they don't change from one month to the next.

I realise those who think an umbrella only has one contractor working for them will question why that would take more than a few minutes, but most umbrellas have a few contractors, all with their own special set of circumstances.

Forgive my ignorance if this is not correct but what has the "calculation" got to do with delaying the payment of the salary sacrifice amount? In my case PayStream knows already the amount since the payment slip has been produced. PayStream has also been fully paid by the agency. Therefore why does it need to delay >40 days to make the salary sacrifice payment into my pension provider?

[eek]

I understood that they still did - is that no longer the case?

I know how they worked when I worked through them but having been outside for the past 2 years I haven’t needed to worry about such things

[Protagoras]

Clarity used to work that way -

I understood that they still did - is that no longer the case?

[WTFH]

Clarity used to work that way - it’s very much a question of how and who handles processes. Larger umbrellas will have tasks set out so 1 set of people do payments, 1 do expense approval another do pension payments

And to add to that, each month has to be calculated, unlike in permidom where your annual salary is agreed, and then all monthly payments/deductions/SalSac are calculated as 1/12th of the annual figure, they don't change from one month to the next.

I realise those who think an umbrella only has one contractor working for them will question why that would take more than a few minutes, but most umbrellas have a few contractors, all with their own special set of circumstances.

[eek]

And what Umbrella Company was that?

Clarity used to work that way - it’s very much a question of how and who handles processes. Larger umbrellas will have tasks set out so 1 set of people do payments, 1 do expense approval another do pension payments

[GreenLantern22]

In practice, there's no need for any delay to SalSac pension payments made by an umbrella company.

The reason I know this is simple; the umbrella company I used paid over the funds to my SIPP the same day that I was paid.

And what Umbrella Company was that?

[Protagoras]

In practice, there's no need for any delay to SalSac pension payments made by an umbrella company.

The reason I know this is simple; the umbrella company I used paid over the funds to my SIPP the same day that I was paid.

[GreenLantern22]

And besides this defines the "Prescribed time in which an employer must make payments to trustees or managers". It's a target to aim for, not a max speed to reach. It's maximum date they should make the payment by. On my previous permie job I was being paid on the 18th and the money reached the pension on 3rd of the following month, 15 after which is much more reasonable.

[GreenLantern22]

If you read the cited legislation, specifically 'regulations 16(2) and 21 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996' in note 1. It's more clearly stated that both the 19th and 22nd refer to the following month:[/LIST]https://www.legislation.gov.uk/uksi/1996/1715

Ummm you are right. But makes no sense. Why would electronic payments be allowed to be done later?