For businesses that take on temporary employees, an umbrella service is designed to help both the employer and employee. This service includes processing pay and maximising benefits. Read on to find out what this service is about.
What is Umbrella service?
First and foremost, it is a type of payroll service for businesses that take on temporary staff.
When a business signs up they become the umbrella service’s employee. This is due to the fact that the umbrella service directly deals with the temporary worker.
In addition, the business does not have the responsibility of handling administration. Therefore, the business can focus on being more productive.
Why use an umbrella service?
An umbrella service is perfect if a business does not want the hassle of administration for temporary workers.
The service includes your administration for your temporary workers, for example, paperwork, updating company records, file VAT returns.
Moreover, businesses collect and send the timesheets over to the service. This is to ensure the temporary worker gets paid.
Additionally, the payroll will deduct taxes, national insurance and pensions via the PAYE scheme (Pay-as-you-earn). The PAYE system uses the same system used by businesses paying permanent members of staff.
Advantages of Umbrella Service
- Minimises administration – handle payroll and even HMRC queries.
- Ideal for short-term businesses.
- Hassle-free – a business can be set up instantly
- Employees are eligible for sick, holiday, paternity/maternity pay and pensions.
To simply put, Happie Umbrella can benefit both business and temporary staff unlock more of their income.
Through legislation that HMRC created, the Happie umbrella will comply with these measures. Effectively, the business can focus on expanding without the hassle of administration.