HOW IS UMBRELLA PAY CALCULATED?

HOW IS UMBRELLA PAY CALCULATED?

May 28, 2019

Whether you’re new to Umbrella or have been working this way for a while, it’s important to be clear on how your pay is calculated.

There is sometimes misunderstanding in general about how Umbrella pay is worked out, so if there’s anything you’re not sure about, even if you’ve been paid as an Umbrella employee for a while, our team is available on 01244 684700.

Payslips made simple

Your payslip is the first port of call for information on your pay and deductions, of course, though you don’t need to wait until you are paid for an assignment – we can provide detailed pay illustrations before you undertake an assignment, all we need is your contract rate.

From this we can work out your gross pay – the full amount your employer pays you before deductions – then we can calculate your net take-home pay which is what you’re left with once statutory deductions such as tax and National Insurance have been taken.

As an FCSA accredited Umbrella company, committed to complete transparency, we have designed our payslips to ensure all elements of your pay and deductions are crystal clear. Let’s take a closer look.

At the top of your payslip, underneath your personal information, you will see a section entitled Company Statement (see above). This details Umbrella-specific deductions that affect your pay.

  1. Total company income
    This is the income we receive from your agency for the work you have undertaken.
  2. Retained income
    This is the margin we retain for our services.
  3. Company costs
    This section includes items such as any expenses you have claimed (though expenses are unusual for Umbrella employees); Employers’ National Insurance which all UK employers must pay; the Apprenticeship Levy, Employer’s Pension Contribution (if you have opted-in to the company pension scheme) and holiday pay you have accrued.

Once the company costs have been accounted for, the remainder is known as your Gross Pay.

On the left-hand side of your payslip you will see detail of how your Gross Pay figure is calculated. On the right, you will see further deductions which apply to all employees in the UK – employee’s National Insurance and income tax. Your pension contribution will be shown here, if you have joined the company pension scheme.

Your total deductions are shown at the bottom of the page, along with a calculation of your Net Pay, also known as your take-home pay.  This is the amount which will be paid into your bank.

Processing of payments

We appreciate you need to know when your payment has been processed.  Our usual procedure is to send you a text message when a payment has been made. You can view your payslips at any time via our secure portal.

Need to know more?

When you join Crest Plus as an Umbrella employee, we provide a Welcome Pack which includes a detailed payslip explanation. However, if there is anything you wish to clarify at any point, or if you need help in calculating your net pay on a new assignment at a different rate to that which you are currently receiving, please do get in touch with a member of our team.

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