PEO
A simplified PAYE payroll solution
ideal for contractors in temporary assignments
Professional Employer Organisation
Professional Employer Organisation (PEO) is rapidly becoming a popular PAYE employment solution for assignments inside IR35.
This fully outsourced service ensures you are employed directly with access to statutory benefits, pension contributions and a straightforward “traditional” payslip. There are no employment costs or deductions from your rate, and you'll only see the fixed gross PAYE rate that you've been quoted.
Benefits of PEO
Employment rights
You’ll benefit from employment rights (SSP, SMP etc), and after 12 weeks of continuous employment you'll be automatically enrolled into our workplace pension scheme. Don't worry, it's easy to opt out if this isn't right for you.
Only YOUR personal deductions
The rate offered is your fixed PAYE rate, and the only deductions from this rate are your own personal tax and NI, and any other necessary deductions such as student loan repayments. All employer costs are recharged to your agency/client.
Simple, traditional payslip
You’ll have access to a standard “traditional” payslip, rather than the umbrella payslip which can be tricky to understand. This removes the confusion and visibility of employer costs, just like a staff payslip.
How it works
1. Super quick onboarding
We'll give you a quick call to chat through the process. You will need to complete a registration form, provide right to work in the UK and supply a P45 from your previous employer (if available).
2. Contract of employment issued
Once we've received your signed contract, we'll issue a welcome email explaining the next steps. We will be responsible for payroll and HR admin, like timesheets, holiday, pension, and statutory payments.
3. You submit timesheets to your agency or client
These allow us to calculate how much to charge for the services you have provided, and we’ll invoice the client accordingly. There is no cost to you – all fees are recharged to the agency/end-client.
4. We'll process your payment
As soon as we’ve received the money to pay you, your salary will be paid directly into your bank account with tax and NI deducted at source.
5. Your payslip is available to view
You will receive a message to notify you that a payment has been processed through our payroll. You are able to log in to our secure contractor portal to access your payslip.
FAQ's
Will I receive a payslip? Yes, your traditional payslip will be available to view and download from with your secure online portal. You will receive your net pay directly into your bank account. Unlike the umbrella model, you won’t see the employer costs detailed on your payslip.
If I work through a PEO, am I self-employed? No, you are an employee of the PEO and will have an employment contract in place. The PEO will take care of all necessary tax and National Insurance deductions via PAYE. As an employee you benefit from all the benefits and statutory rights associated with long-term employment, and have no hassle of self-assessment tax form or invoicing. You might still need to complete a self-assessment if you: oHave received £10,000 or more gross income from savings or investments before tax (including dividends). oWere self-employed at any point during the tax year. oWere a Director at any point during the tax year. oEarned over £100,000 gross income during the tax year (all income). oHave been sent one by HMRC. oIf HMRC sends you a Self Assessment form you must complete it and send it back.
Why have I been referred to a PEO for payment? PEOs help agencies and end-clients reduce their overheads and remove the administrative burden of the management of temporary workers. We take the payroll headache away, ensuring full compliance and peace of mind.
Will I receive holiday pay? Yes, you will accrue the industry standard 12.07% on all hours worked. We operate a “rolled up” model whereby you’ll be paid your holiday pay every time you’re paid leaving nothing in the pot. This removes any confusion as to how you access your holiday pay, and any potential doubt that you haven’t received it all. You will clearly see your holiday pay detailed on your payslip. We recommend holding back some of your pay for when you go on holiday, and remember to take your well-earned breaks!
Who do I report to? Although we are your employer for all things pay-related, the client will manage your day-to-day tasks. You should continue to report to your supervisor for work-related queries, holiday requests etc.