Be more informed. Our handy guide to understanding your payslips. UMBRELLA

Transcription

1 Be more informed Our handy guide to understanding your payslips. UMBRELLA

2 Your payslips made easy Received your payslip but not quite sure what all the numbers and codes mean? We know all that information can seem a little daunting and baffling at first glance! But all the details are in there to make sure you understand how your take home pay has been worked out and ensure we re crystal clear about any deductions. So, we ve made this guide to provide a straight forward explanation for each and every bit of information on your payslip. Once you know you re way around them, you ll see that the codes and numbers are actually pretty simple and useful! 2 Be more informed. Our handy guide to understanding your payslips

3 Understanding your payslip Here s a standard payslip it should look a lot like the one you receive every week! A Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 Comments Assignment Start Date End Date B Employee No. Employee Name Process Date NI Number Company Receipts Units Rate Company Deductions C Daily Rate HMRC Payment NIERS Retained Paid to Employees D Employee Payments Units Rate Employee Deductions National Insurance E F G H I 3 Be more informed. Our handy guide to understanding your payslips

4 Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 Comments Assignment Start Date End Date A Employee No. Employee Name Process Date NI Number At the top you ll find the name of the company you are employed by us! Next to this are details on the week the payment relates to (and what tax Company period Receipts that week represents). Units Rate Company Deductions Daily Rate HMRC Payment NIERS The assignment and start / end dates are simply there as a record of the details of the contract you are currently working on. Retained The comment box may seem like a bit of a mystery to you Paid if it s to blank Employees every week. Really, it s just a space where we can enter any messages we want Employee to send Payments to you and to note Units down any Rateexpenses carried forward. Employee Deductions Top line information National Insurance 4 Be more informed. Our handy guide to understanding your payslips

5 Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 Comments Assignment Start Date End Date Employee No. Employee Name Process Date NI Number B Employee information and process date Company Receipts Units Rate Daily Rate The next section includes some technical information that helps ensure everything is assigned and processed accurately and on time. Employee Payments Units Rate Employee number It s important that you know your employee number when submitting your expenses. Company Deductions HMRC Payment NIERS Retained Paid to Employees Employee Deductions National Insurance Process date This is simply the date when your pay is processed by us. 5 Be more informed. Our handy guide to understanding your payslips

6 Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 Comments Assignment Start Date End Date Employee No. Employee Name Process Date NI Number Company Receipts Units Rate Daily Rate Employee Payments Units Rate C Company Deductions HMRC Payment NIERS Retained Paid to Employees Company receipts Employee Deductions The National company Insurance receipts section of your payslip sets out the total hours (or days) you have worked and the hourly (or daily) rate we receive from the company you are on assignment with. This information drives all the other calculations on the payslip. The total number of hours / days worked multiplied by the rate equals the gross fee income for the period. It s important to remember that this gross income is completely separate from gross pay, which is explained in Section G. 6 Be more informed. Our handy guide to understanding your payslips

7 Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 Comments Assignment Start Date End Date Employee No. Employee Name Process Date NI Number Company Receipts Units Rate Daily Rate Company deductions Company Deductions HMRC Payment NIERS Retained Paid to Employees Employee Payments Units Rate Employee Deductions Holiday This Paysection of your payslip is designed to provide a clear breakdown National Insurance of what we, as your employer, have deducted from the gross receipts we receive from your agency or client and why. It s where we deduct any employment costs, as explained below. D HMRC NIERS As your employer, we re required to deduct and pay HMRC any Employers National Insurance (ERS) that is due. Please send your complete expense form along with relevant This receipts covers no all later the than costs 5pm we on incur a as an employer, Total including: Gross Pay necessary insurance policies; Tuesday pensions; of the week sick, you maternity are due for and payment. paternity pay; and all Gross other for obligations. It also includes Gross a small for margin YTD to pay for our running costs as a business. This is Earnings variable for according NI to your assignment Paid rate. YTD GL50 Retained 3JR. holiday pay If you As have we any typically payment pay queries you holiday please call pay us on on a weekly basis, you usually won t see anything here (see Holiday pay in the Section E for further details). Any expenses that have been incurred wholly, exclusively and necessarily as a result NET of working PAY on your assignment are shown here. Note: expenses will only be deducted where they have been claimed in accordance with our current policy. Paid to employees This is the sum of the gross income for the period, minus all the above company deductions. 7 Be more informed. Our handy guide to understanding your payslips

8 Employee payments The employee payments section provides a breakdown of your pay before Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 employee-related deductions (such as income tax and employees NICs) are made. Comments Basic pay Assignment Start Date End Date This taxable element of your pay is simply the amount from the Paid to Employees row in the Company Deduction section, minus the amount we paid you as holiday pay. Holiday pay As an employee, you are legally entitled to 5.6 weeks of holiday pay per year. Employee We pay No. this out to you Employee on a weekly Name basis; it s calculated as 12.07% of Process your pay Date NI Number and applied to all hours you have worked. Company Here s Receipts where you find the expenses Units Rate we have paid to you. Only Company expenses Deductions incurred Daily wholly, Rate exclusively and necessarily while working 420 on your assignment HMRC Payment and NIERS claimed in accordance with our current expense policy will be paid. Your expenses are exempt from income tax and NICs. Retained Paid to Employees E Employee Payments Units Rate Employee Deductions National Insurance 8 Be more informed. Our handy guide to understanding your payslips

9 A breakdown of employee deductions This section sets out the employee-related deductions National Insurance Driver made Hire Umbrella from your pay. It also covers any deductions made The amount of employee Period: 51NICs Week deducted Ending: from 05/04/2015 your into any work-related benefit schemes, such as your basic and holiday pay. Again, expenses will be exempt pension plan. Comments from this. Assignment Start Date End Date Company In the Name tax year 2014/15, employee 30/03/2015 NICs are 05/04/2015 deducted The amount of income tax deducted from your basic at 12% on earnings between the minimum threshold and holiday pay. Your expenses are completely exempt of 153 per week and the upper earnings limit of from this tax. If you have a standard 1000L tax code, 805 per week. All earnings above that are subject you will not pay tax on the first 10,000 of income per to a 2% deduction rate. Employee annum. No. On a weekly Employee basis, this Name means that the first is tax free. See in Section G for more Process Date AE pension NI Number 00000information on what J. other Bloggs codes mean. If you have 10/04/2015 not opted out of our pension JG999999C scheme, we will automatically deduct a contribution of 1% Company Above Receipts the standard 10,000 Units Units personal Rate allowance Rate level, from your taxable earnings over 109 each week. Company Deductions current income tax rates are: The great news is that we also match your Daily Daily Rate Rate HMRC Payment NIERS 10,000 to 41,865 20% (Basic rate) contributions, as your employer. You ll also receive 41,866 to 150,000 40% (Higher rate) tax relief on your contributions. Over 150,000 45% (Additional rate) Retained Pay Paid Paid to to Employees Employee Payments Units Rate Employee Deductions National Insurance F 9 Be more informed. Our handy guide to understanding your payslips

10 This section provides a summary of your gross pay and The standard tax code changes each year, for this year total employee tax and NI deductions for the period. It it s 1000L. This means you can earn 10,000 per year Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 also provides details of the tax code applied and method without paying any tax. of payment. Comments Assignment Other codes may include: Start Date End Date Total gross pay Company BR Name code your entire 30/03/2015 income is subject 05/04/2015 This comprises your basic and holiday pay. Your income tax payments and employee NICs are calculated based on the total of all these amounts. Gross for tax recovering unpaid taxes Employee This No. represents the Employee total amount Name subject to tax for the OT Process code indicates Date that your total NI Number personal 00000period. As you would J. expect, Bloggs this is usually the same as allowance 10/04/2015 has been already been JG999999C used the amount in the total gross pay row. The number in your tax code is multiplied by 10 to get Company Earnings Receipts for NI Units Rate Company the total Deductions amount of income they can earn before being Daily The Ratetotal amount of income 40 which will be considered 420 HMRC taxed. Payment This is why NIERS the standard code is 1000 for the when working out your employee NICs for the period. 2014/15 tax year. Again, this is usually the same as the amount in the total gross pay row. Retained If HMRC Holiday has to Pay recover any underpaid tax, you may Paid find to that Employees you code is therefore 950, for example, as they Total deductions recover underpayment by making more of your income Employee This Payments shows you the total of Units the deductions Rate from the Employee taxable until Deductions the amount is collected. Employees Deduction segment of your payslips for the period. As such it includes all deduced tax, employee Payment method National Insurance NICs and other benefits deductions found in Section F. The methods that has been used to pay you. This is code: Your tax code is issued by HMRC and usually (Bankers automated clearing services). indicates how much money you can earn each financial This is simply the technical name for an automated year (April-March), without paying any tax also known payment directly from our bank account to yours. as your personal allowance. G to 20% tax, with no personal allowance DO code your entire salary will be subject to 40% (higher rate) tax K code this usually means that HMRC is 10 Be more informed. Our handy guide to understanding your payslips

11 Driver Hire Umbrella Period: 51 Week Ending: 05/04/2015 Comments Assignment Start Date End Date Employee No. Employee Name Process Date NI Number Company Receipts Units Rate Daily Rate Company Deductions HMRC Payment NIERS Retained Paid to Employees Employee Payments Units Rate Employee Deductions Year to Date National Insurance Each row in this section corresponds to the parallel row in the section, except rather than calculating for the pay period in question, it summaries your cumulative pay for the current tax year (the tax year runs from April to March) H Net pay This is the amount of take home pay that will be paid to you for the period. I 11 Be more informed. Our handy guide to understanding your payslips

12 We re here to help We hope this guide has been helpful and answered any questions you may have had. If there s anything we haven t covered in this guide that you d like to know more about, get in touch. We re always on hand and happy to help you out. Call us on: or info@driverhireumbrella.co.uk t: e: info@driverhireumbrella.co.uk Cheltenham House, Clarence Street, Cheltenham, GL50 3JR v1 January 2015