Payroll/ Employment law query

Phil Hendy
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Posted: 15th Feb 2012 - 14:37 Quote

 

A client has asked me to answer a query regarding their wife's payslip.

She works as a supply teacher so is registered with an agency. They have just changed some policies; however, she has noticed that on her last payslip the Employers NIC is being deducted from her net pay.

Is this something anyone else has come across or can provide information on?

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Jo Hazell
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Posted: 15th Feb 2012 - 16:22 Quote

Hi Phil

Sounds odd - my first thoughts is that it's just an error.  I would certainly go back to the payroll department and query.

Jo

 

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Omer Hanif
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Posted: 15th Feb 2012 - 18:15 Quote

thats common for people working for umbrella companies, i have seen many Doctors doing locums through umbrella companies to deduct Employer NI from gross pay to work out taxable pay. If its regular thing then better off opening their own company.

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Gary Smith
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Posted: 15th Feb 2012 - 18:59 Quote
if the employers NIC really is being deducted from thr gross pay then clearly it is an error. Where possible I always print employers NIC and employers pension contribution on payslips in order to show the true cost of employment.
Gary

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Daniel Johnson
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Posted: 16th Feb 2012 - 07:50 Quote

Hi Phil,

I too have not come across this before.  Like Jo said before, it sounds odd.  I would definitely get your client to go back to the payroll department and get it checked out.  I'm going to keep an eye on this post, so as soon as you find out the answer to this query could you possbibly post it so that we can find out what the reason is?

Regards,

Dan

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Phil Hendy
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Posted: 16th Feb 2012 - 07:59 Quote

seems like Omer has hit the nail. it is an umbrella company scenario which the workerr signs up to. Can claim certain expenses etc. to reduce 'profit'

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Omer Hanif
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Posted: 16th Feb 2012 - 11:46 Quote

Glad to share my experience, one thing i always say to my clients who like to work under umbrella company setup, is that they should try seek atleast 15% higher rate from permanent employees in what ever industry they are working to cover this Employer NI deductions.

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Daniel Johnson
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Posted: 16th Feb 2012 - 14:57 Quote

Good stuff Omer!  That's really useful to know for future reference!

Dan

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David Clement-Horton
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Posted: 16th Feb 2012 - 15:17 Quote

Hmmmm get her to look at Bedouin: http://www.bedouingroup.com/

When I switched from an umbrella to them, it was like a massive pay rise.

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Robert Leach
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Posted: 27th Feb 2012 - 14:31 Quote
Quote:

 

A client has asked me to answer a query regarding their wife's payslip.

She works as a supply teacher so is registered with an agency. They have just changed some policies; however, she has noticed that on her last payslip the Employers NIC is being deducted from her net pay.

Is this something anyone else has come across or can provide information on?

An employment agency is legally required to deduct PAYE and class 1 national insurance from pay (and has been since 1976). The current law is Income Tax (Earnings and Pensions) Act 2003 s45.

 

 

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