Your agency will typically pay an hourly or daily assignment rate (sometimes known as the umbrella rate, or Ltd Company rate) to the umbrella that has been uplifted to accommodate the employment costs that the umbrella company will have to pay as your employer. Those employment costs are Employer’s National Insurance, Employer’s Pension Contribution, Holiday Pay, and the Apprenticeship Levy.

From the assignment income received, the umbrella company will calculate those exact employment costs and retain them from the income alongside its margin. The remaining balance becomes your gross pay for the period worked, which is then subject to your statutory deductions for PAYE, Employee’s National Insurance, and Employee Pension contributions.

The simple explanation: Umbrella Income, minus employment costs and margin, equals your gross pay.

Each time you are paid, you’ll receive a transparent income statement that shows how we’ve arrived at your gross pay from the assignment income. You’ll also receive a standard payslip showing your own deductions and year-to-date figures.

You become an employee of Payshield, and we’ll provide you with all the usual benefits, associated with being an employee. Those benefits include statutory entitlement to sick pay, maternity and paternity pay, and a workplace pension scheme.

You’ll also get access to our Employee Assistance Program where you can access online GPs, confidential support from trained counsellors, health, wellbeing and wellness support and tools, plus discounts and benefits across an extensive range of products and services.

As an employee, you won’t have to worry about your tax affairs. You’ll be paid under our PAYE scheme so your Income Tax and National Insurance will be deducted and paid to HMRC each time you are paid. No need for self-assessments at the end of each year*

Once you’ve become an employee, you can focus on carrying out your role to the best of your ability and leave us to manage your employment and payments.