New umbrella company required!

[Wary]

... in relation to employment costs as not everyone is affected. Those who are are not affected in the same way, we do need to speak to you individually.

It’s important to remember that the bulk of employment costs is Employer’s National Insurance, which you have always paid with Parasol.

Whilst we don’t want to appear vague and we are certainly not avoiding the question, there is simply not a one size fits all response which is why we are asking you to contact us directly to discuss your individual circumstances.

Steve - I'm rather curious about these additional "employment costs". Surely these would be just Employers NI & the agreed up-front fees? Why else would it vary unless you're providing additional services, which again should be clearly agreed up-front, and which I would expect to be clearly detailed on the payslip to ensure transparency?

I think you can answer this generally without referring to any specific case or individual. Might it be the case that you'd charge extra "employment costs" that weren't agreed up-front, with the reason for which not being explained on the payslip? Here's your opportunity to confirm or deny it.

I'm not with Parasol but with a different umbrella. All deductions are clearly listed on their payslip and there's no hint of them taking any additional "employment costs", despite charging only a low weekly fee (£9.99). They do also charge £10 for a pension contribution, but that was agreed up-front & is stated on the payslip.

[skillmaster22]

Which Company Is That?

[B]I'm not with Parasol but with a different umbrella. All deductions are clearly listed on their payslip and there's no hint of them taking any additional "employment costs", despite charging only a low weekly fee (£9.99). They do also charge £10 for a pension contribution, but that was agreed up-front & is stated on the payslip.[/QUOTE]
[/B]


That sounds brilliant, what company is that?

Parasols shady employment costs, we really must cost them a fortune to employ us

I have been asking for a breakdown on why my pay has changed dramatically over 3 months for no apparent reason. all you get from parasol is something their agents copy and paste out of a document. posted my original query on the 8th of november and I still know nothing. Steven is the PR manager so he will come on here and defend parasol but when he says he is going to get someone to look at your query dont believe him, I did, then took my foot off the gas and its got me nowhere. low and behold this months payslip is even lower than the months before and before, be careful people and ask for a proper breakdown of "how much it will costs to go with you" as parasols Fee @£110 + mystery employment costs are costing me dearly with no explanation.

[aussiecontractor]

IM in the same boat!

I recently joined parasol under the pretense that the only fees would be the 120 odd quid a month.

Boy did i get a shock yesterday when my first payslip came with £994 worth of "employment costs". they have taken more than 50% of my wage in tax and fees.

I have had the same, seemingly standard response as many here in terms of how it is calculated, but that has not helped me.

have been trying to get a breakdown but it seems that noone can provide me one.

I have to admit this is heading in the direction of the financial services ombudsman at this point.

[aussiecontractor]

PS...

Do other umbrella companies charge NIC? if so how much, it might be good to get some comparisons?

[Wary]

That sounds brilliant, what company is that?

Parasols shady employment costs, we really must cost them a fortune to employ us

I have been asking for a breakdown on why my pay has changed dramatically over 3 months for no apparent reason. all you get from parasol is something their agents copy and paste out of a document. posted my original query on the 8th of november and I still know nothing. Steven is the PR manager so he will come on here and defend parasol but when he says he is going to get someone to look at your query dont believe him, I did, then took my foot off the gas and its got me nowhere. low and behold this months payslip is even lower than the months before and before, be careful people and ask for a proper breakdown of "how much it will costs to go with you" as parasols Fee @£110 + mystery employment costs are costing me dearly with no explanation.

I’m with Nasa – there is already a recent thread going about them.

My advice for anyone using an Umbrella is be aware of how the calculations SHOULD be performed and independently cross-check them. If things appear not to tally, at least give them the chance to explain before posting here. A competent and honest company should have no issue with transparency & explaining their calculations/deductions. If they won’t or can’t to your satisfaction, take your custom elsewhere!

[Wary]

Do other umbrella companies charge NIC? if so how much, it might be good to get some comparisons?

There is a recent thread on the main contractor forum for how to calculate Employers NI. It should presumably be the same for all umbrellas; it’s how much they subtract from the gross income for their fees etc before applying the calculation that will vary.

[LisaContractorUmbrella]

Do other umbrella companies charge NIC? if so how much, it might be good to get some comparisons?

All companies have to pay employer's national insurance contributions which are calculated at a rate of 13.8% for earnings over £7072 p.a. and umbrella companies are no different

[The Spartan]

Could anyone give me a calculation for the following so that when I get paid I can compare it against my payslip and see how much extra has been taken:

Gross Pay: 4300
Expenses: 1300
Monthly Umbrella fee: 120

I'm just really interested to see how much I should be paying against what I am actually paying.

[skillmaster22]

Flabbergasted

There is a recent thread on the main contractor forum for how to calculate Employers NI. It should presumably be the same for all umbrellas; it’s how much they subtract from the gross income for their fees etc before applying the calculation that will vary.

I have just worked out that if I was employed directly (as with parasol im meant to be) by my workplace I would actually be taking home substantially more pay, and this is without taking into account any expenses which would be reimbursed as the company pay those. I thought using an umbrella company was meant to be good for you and you get significant breaks for being self employed.

[Wary]

Could anyone give me a calculation for the following so that when I get paid I can compare it against my payslip and see how much extra has been taken:

Gross Pay: 4300
Expenses: 1300
Monthly Umbrella fee: 120

I'm just really interested to see how much I should be paying against what I am actually paying.

Assuming these are the only deductions (no pension payments etc), I calculate the Employers NI as £277.82