With off-payroll reforms coming into effect in April 2021, businesses and recruiters are seeking effective solutions to mitigate admin and risk whilst contractors are looking for job continuity and protection of rates of pay.
Whether your end client is only using inside IR35 contractors via an umbrella company or have specified they are only engaging with a PAYE model, Sapphire are supporting contractors, recruiters and hiring agencies with solutions that take away the administrative and compliance burden and keep your business running smoothly.
A Professional Employer Organisation (PEO) is a company that provides a complete outsourced employment solution. Similar to the traditional umbrella PAYE solution, the PEO offers more clarity to the contractor.
By assuming all employment responsibilities including HMRC compliance, the PEO is liable for all employment risk as the employer.
Under a PEO model, contractors are quoted their actual gross pay from the beginning of each new assignment. This is shown on their payslip, with statutory PAYE tax deductions (tax, NI, Student Loan repayments etc) as you would expect from traditional employment, giving transparency when it comes to the contractor’s take-home pay.
The PEO offering is emerging as one of the preferred solutions for a new way of working. By being part of a PEO, you become an employee with full employment rights, holiday, pension, and statutory holiday payments.
Everything is clear, you’re paid the pay-rate quoted and only the standard PAYE taxes are deducted. Minimising your worries and your liabilities.
We understand the life of a contractor so we can help you decide whether PEO would work for you.
The PEO offering isn’t just a better option for contractors either, if you’re acting as a hiring agency and want to operate as a PEO, it’s a simpler solution for everyone.
Contact one of our experts to understand more about PEO and have all your questions answered call 01625 539 997