About Services Agency / Client Contractor / Worker Workers Portal Professional Employment (PEO) Simple PAYE APPLICABLE TO: AGENCY OR CLIENT It became apparent to us throughout the COVID-19 crisis in 2020 that we needed something extra besides Umbrella and Joint Employment to offer a complete range of PAYE options for the contingent workforce. The furlough scheme for Umbrella workers had been flawed because of the argument around what should be classed as discretionary pay or not, which meant that due to lack of clarity in government guidance and the complex structure of the employment contracts, many Umbrella workers only received 80% of the NMW element of their pay. We felt their pain, but there was a potential risk to businesses from HMRC looking to recoup funds in the future from those who they might adjudged to have ‘overclaimed’ on furlough amounts e.g. 80% of NMW and discretionary bonus (without this being made clear in official guidance), thus potentially leaving companies to pay back a large bill further down the line. There needed to be a more uncomplicated option should the same topic ever arise again, with Umbrella companies getting some bad press. Step forward the PEO model. The Professional Employment (PEO) model first became popular in the USA many years ago as a fully outsourced PAYE service that also offered employee’s additional benefits like access to free healthcare. Workers have a simple what-you-see-is-what-you-get PAYE rate and a straightforward payslip to match, besides additional employee benefits. It is similar to the tried and trusted ‘PAYE-bureau’ service except the additional benefits are that we engage fully with the worker on an employment contract, plus calculate and process the payroll. This is a 100% outsourced service for direct PAYE, offering a multi-industry solution for all levels of pay grades and working arrangements. PEO positives: Free for the worker – no margin taken from the Gross pay. Straightforward PAYE rate is all the worker sees – no uplifted rates. Fully outsourced service as the payroll provider engages with the worker on an employment contract, with variations for ‘employee’ or ‘worker’ status. All employment and taxation responsibilities sit with the provider making it a perfect solution for organisations without an ‘in-house’ payroll facility. Suitable for any industry sector and any level of pay from NMW upwards. No Umbrella-style ‘minimum rate’ required. Agency/client is invoiced for full earnings plus employment costs including holiday pay and the agreed providers fee (all with VAT). Employee access to various savings and benefits through Orbital Rewards. Interested in Orbital? Register online or get in touch with our team. AGENCY? CONTACT US ORBITAL BENEFITS Alternatively, you can contact us using our general enquiry form. Home About us News & Information Compliance Useful Resources App FAQs IR35 Resources Portal Login Services Umbrella PAYE CIS/Non-CIS Self-Employed Sole Trader Professional Employer Organisation (PEO) Joint Employment Contractor Registration Why us Contractor Payroll Agency / Client Payroll Benefits Orbital Rewards Work with Orbital Smart Pensions Contact & Help 01226 444 445 info@orbitalservices.co.uk Digital Media Centre, County Way, Barnsley, S70 2JW MORE DETAILS CONNECT: Get the Orbital App ©Orbital Payroll Group Ltd. Privacy Policy Slavery Act Gender Pay Report WEBSITE MADE WITH BY FCD