Umbrella payroll solutions help recruitment agencies to minimise the overheads, employment risks, and administrative burdens involved in the the management of their temporary employees.

By outsourcing their payroll to Exceed Contracting, recruiters are able to spend more time looking after their candidates, on sourcing assignments and matching temps to suitable roles.

You will an employee of Exceed Contracting Limited, with an employment contract.

Exceed will raise invoices for the work you undertake and will make payments to you.

As an employee, you will have all the benefits and statutory rights associated with full time employment.

When a payment has been made to you, Exceed Contracting will:

• send you an SMS/text message to inform you of this
• send you an email with your payslip attached

You can also login to Exceed’s Contractor Portal for real time updates regarding payments and to access your payslips, P60s and P45s.

We will pay you as regularly as possible.

We process payroll every day and arrange payments as soon as we are able to.

In order to pay you, Exceed must first receive proof of your ID, your right to work in the UK, and your signed employment contract.

Yes, a password protected payslip from Exceed Contracting Limited will be emailed to you.

It will also be available to view and download from Exceed’s secure online portal for Contractors.

The amount of money you receive each time you’re paid by Exceed will depend on a number of factors including:

1. the agreed umbrella assignment rate
2. your hours worked, and approved on your timesheet
3. any business mileage claims you have submitted
4. your tax code
5. monies received from your recruitment agency

Changes to any of these variables can alter your weekly take-home pay.

The Umbrella Assignment Rate (sometimes referred to as the Umbrella Rate, or Limited Rate) is the amount your recruitment agency or end client has agreed to pay Exceed Contracting Limited for your services.

This rate is usually higher than the rate the agency would pay if they employed you directly.

It is calculated to include the costs of employing you, including Employers National Insurance contributions, pension contributions and administration costs, which Exceed is liable to pay as your employer.

Yes, and your holiday pay will clearly be shown on your payslip from Exceed Contracting Limited.

You can choose to have your holiday pay Advanced (ie paid out each time your paid), or Accrued and paid out when you take annual leave.

As your employer, Exceed Contracting Limited will ensure that you pay all necessary tax and National Insurance deductions via PAYE.

Exceed Contracting Limited pays the Employers National Insurance Contributions when your employed and paid by Exceed.

In permanent employment, it is the company that is liable for the Employer’s National Insurance Contribution (NIC).

When you’re employed by an Umbrella Company it’s no different – Employer’s NIC still needs to be paid on your assignment income.

The assignment rate you are offered to be paid by your recruitment agency when you’re paid by an Umbrella Company should be adjusted to allow for this.

This therefore needs to be taken into consideration when negotiating your pay rate with a recruitment agency or end client.

Please bear in mind that if you were to accept a contract paying the same rate as when you were a permanent member of staff, you would actually take home less money because of the Employer’s NIC.

Employer’s NIC is calculated at 13.8% on earnings above £162 per week and is uncapped so, not taking into account the margin that the Umbrella Company retains, this is the minimum rate uplift you would need on a permanent rate to achieve a similar net pay.

As an example of this; you would need to negotiate £28.45 as the minimum hourly contractor rate to take home a similar net pay as a permanent member of staff earning £25.00 per hour.

You may be offered two different rates – one to be paid directly through the recruitment agency’s payroll, and another, higher rate, to have your pay processed through an Umbrella Company.

The lower rate will apply if you opt to be paid directly by the agency because they themselves will be liable for the Employer’s NIC.

The higher rate is offered if you are being paid through an Umbrella Company because the Umbrella Company is liable to pay the contribution.

Provided the difference between the two rates is greater than 13.8%, you will be better off getting paid through an Umbrella Company.

Remember the assignment income is not your salary rate, it is the income of the Umbrella Company; therefore you are not paying Employers NI.

Deductions for Employer’s NIC are shown in the transparent Income Reconciliation Statement above Exceed’s payslips.

This is included to show a fully transparent, compliant, and auditable trail of all payments received and distributed by Exceed as your employer.

If you were to be employed directly by the organisation that provides your assignment, the employer’s income and costs shown in the Reconciliation Statement would occur ‘behind the scenes’ without you being explicitly shown.

When you’re paid by Exceed, Exceed pays the Employer’s Pension Contribution.

In permanent employment, it is the company that is liable for the Employer’s Pension Contribution.

When you’re employed by Exceed Contracting Limited it is no different – the Employer’s Pension Contribution still needs to be paid, and will be deducted from the income received for your assignment by Exceed.

The Umbrella Assignment Rate you are offered when work through an Umbrella Company should be ‘uplifted’ to allow for this.

This therefore needs to be taken into consideration when negotiating your pay rate with a recruitment agency or end client.

Bear in mind that if you were to accept a contract paying the same rate as when you were a permanent member of staff, you would actually take home less money because of the Employers Pension Contributions.

The assignment income is not your salary rate, therefore you are not paying Employers Pension Contributions.

Deductions for Employer’s Pension Contributions are shown in the transparent Income Reconciliation Statement above Exceed’s payslips.

This is included to show a fully transparent, compliant, and auditable trail of all payments received and distributed by Exceed as your employer.

If you were to be employed directly by the organisation that provides your assignment, the employer’s income and costs shown in the Reconciliation Statement would occur ‘behind the scenes’ without you being explicitly shown.

The Apprenticeship Levy is a compulsory tax charged to employers by HRMC to fund Apprenticeships in the UK.

All employers operating in the UK with an annual pay bill of over £3 million must pay this levy to HMRC at the same time that they pay their Income Tax and National Insurance Contributions.

Your personal status (as an Apprentice, or not an Apprentice) is irrelevant.

It is a tax charged by HRMC and paid by Exceed Contracting Limited as an employer.

The Apprenticeship Levy is calculated at 0.5% of salary payments made.

The Apprenticeship Levy is shown in the transparent Income Reconciliation Statement above Exceed’s payslips.

This is included to show a fully transparent, compliant, and auditable trail of all payments received and distributed by Exceed as your employer.

If you were to be employed directly by the organisation that provides your assignment, the employer’s income and costs shown in the Reconciliation Statement would occur ‘behind the scenes’ without you being explicitly shown.

Whether or not you receive a tax bill at the end of the tax year depends on your personal situation, and if you were being paid on the correct tax code for your individual circumstances throughout the year.

If you received income from sources other than through your employment with Exceed Contracting Limited, or if you have claimed expenses that HMRC does not accept, then further tax charges may arise which are outside of Exceed’s control.

If you’re employed and paid by Exceed Contracting Limited,  you will not usually need to complete a Self-Assessment Tax Form, but there are exceptions.

For example, you may need to complete a self assessment form if you:

• Have received £10,000 or more gross income from savings or investments before tax (including dividends).
• Were self-employed at any point during the tax year.
• Were a Director at any point during the tax year.
• Earn over £100,000 gross income during the tax year (all income).
• Have been sent a form by HMRC.
• Are claiming £2,500 worth of expenses/subscriptions against tax.

If HMRC sends you a Self Assessment Tax Form you must complete it and send it back to them.