PAYME - Candidate FAQ’s
This guidance has been drafted by GEM Partnership as a means to answer a number of frequently answered questions. It does not constitute a contract, is not provided by PAYME and as such provides guidance only. For full details of this scheme please refer to your contract of employment with PAYME and the associated policies available on their website.
What is a PAYME umbrella company arrangement?
As a temporary worker, working through a recruitment agency, you pay tax as if you were an ordinary employee. As a temporary worker, working through PAYME, you are eligible to claim allowable expenses that are wholly, exclusively and necessarily incurred in the performance of your duties. Under tax legislation you will be permitted to offset these expenses against your gross income. These benefits can only be obtained where a contract of employment exists between the temporary worker and the payroll provider (hence the umbrella company description) and has a maximum duration of 24 months.
How do I know I will benefit from using an umbrella company?
It is important to know that PAYME has an obligation to ensure that each temporary worker working through their umbrella solution must be better off compared to standard PAYE.
What expenses can I claim?
You are entitled to claim for legitimate expenses that have been incurred whilst you have been on your temporary assignment. These expenses must have been incurred and include subsistence, laundry allowance, tools and many more.For full details of the expenses scheme please go to www.payme.co.uk or call the expenses team at PAYME on 0333 200 0845
I am unsure what I am entitled to claim for?
PAYME have a dedicated Expenses Team that will be on hand to explain what you are entitled to claim and how you keep us up to date with any changes. Please call the expenses team at PAYME on 0333 200 0845 with any questions regarding expenses.
When am I not able to process expenses?
As this is a tax solution you must reach the tax threshold of £182 before PAYME can put expenses through for you. If you earn below the threshold one week due to a lack of work or hours, then you would be processed though standard PAYE.
Is there a set up charge or termination charge?
No. There is no set up charge for this service and there is no termination fee either.
What is the weekly fee?
If gross income is between £0 - £150 the charge will be £7.50
If gross income is between £150 - £250 the charge will be £12.00
If gross income is above £250 the charge will be £17.50
These charges are offset from the expenses applied not your pay rate.
Do I receive holiday pay?
Yes. GEM Partnership accrues holiday pay for you at the standard rate of 28 days per annum pro rata which is the statutory minimum, unless you have increased benefits within the assignment post 12 weeks (this is in relation to the agency workers regulations of 2010 and would be detailed on your assignment schedule at the start of placement).
Holiday pay is held on your behalf ready for when you wish to be paid for the time off.You do not pay for your own holidays; holiday pay is funded through the agency accrual system.
Do I pay enough tax and NI?
PAYME ensures that you always pay enough tax and employee NI contributions so your pension and other benefits including NHS healthcare are unaffected.
Do I receive statutory sick pay?
As an employee, in the event that you are unable to work due to sickness, you will be eligible for SSP at the standard rate as per HM Revenue and Customs guidelines for up to 28 weeks.
Where should I send my timesheets?
Nothing changes with the way you submit your timesheet. All timesheet information is submitted to PAYME by your recruitment agency along with any holiday requests that have been signed off.
When do I receive my wages?
Unless special arrangements have been made, all temporary workers employed by PAYME are paid on a weekly basis each Friday. Depending on your bank, the payment can clear in your account any time up until 5pm but the majority of our temporary workers receive cleared funds by 10am.
Do I receive a payslip?
Yes. You then have the option to receive your payslip by post or as standard they will send you an email copy quicker and without the possibility of postal delays or losses.
I don’t understand the layout of my Payslip?
Only temporary workers can take advantage of this type of scheme, as permanent employees are not allowed to receive additional tax free allowance in the form of weekly expenses. This means that through PAYME you are not taxed on your whole gross salary; instead you are taxed only on your taxable income and because of this they must lay out your pay slip in a particular way and not as in a usual PAYE process - where deductions are taken directly from the Gross pay to provide the Net pay.
To calculate your net pay on an expenses scheme such as PAYME, you will need to look at your taxable amount not your Gross amount, then deduct tax and NI which are considerably less than when compared with a PAYE model, then add your expenses. This equals your net pay. You will always have a higher Net pay than through standard PAYE, which is the objective of the scheme through the lowering of statutory deductions, these reduced deductions vary from worker to worker however. You can compare your net pay obtained through PAYME with the PAYE equivalent by inserting your personal details into the relevant fields at www.listentotaxman.com
Will I receive pay parity at the 12 week point of my assignment?
Like any other temporary assignment, you are now eligible to equal pay and equal holiday provision after 12 weeks of continuous service (as laid out in the agency worker regulations 2010), in relation to those terms available had a comparable permanent equivalent been employed. These rights do not apply in the event you have entered into a Pay between Assignments or Derogated assignment – this will have been made clear to you at the start of the temporary assignment.
Am I entitled to pay between assignments?
The effect of entering into the contract of employment and accepting work on the Pay Between Assignments Model is that you do not, during the currency of the assignment in question have any entitlement to the rights conferred by the AWR regulations. You will however only under these circumstances have certain benefits as laid out in your contract of employment.
What do I do in the event of payroll queries?
Please contact PAYME in the first instance who will deal with any payroll related, tax, expenses and deductions questions, if your question has not been answered adequately please contact your consultant at GEM.
In the event of hours, overtime or holiday approval queries please contact your consultant at GEM.
Please only raise queries with the hiring client as a last resort.