Professional Employer Organisation Solutions
Could a Professional Employer Organisation (PEO) be the right solution for your needs as a contractor?
The PEO solution has been a popular choice for contractors in the United States for many years now, functioning as an alternative to an umbrella situation and offering key benefits including health insurance and simplified calculations for gross take-home pay.
The PEO payroll model was not as popular in the UK, but saw a sudden increase in value with the 2017 off-payroll reforms in the public sector and the subsequent changes in the private sector dating from April 2021.
Understanding the PEO Solution
As an alternative to an umbrella solution, a PEO employs a contractor directly on behalf of the recruitment agency or end client. They then handle traditional employer responsibilities including:
- Payroll
- HMRC Payments
- Pension Contributions
- Statutory Employment Rights
- Benefits
Under ICS PEOple, the ICS PEO payroll solution, contractors are provided with their gross pay rate at the state of the assignment, giving them greater transparency for take-home pay calculations. The payslip shows their gross pay through the PAYE (Pay As You Earn) model, with no employment costs or deductions from your rate.
Agencies and end clients will typically not operate this internally, as it adds extra costs, time, and resources for administration. By operating our PEO solution more widely and relying on our existing team of experts, we can offer reduced payroll costs and a compliant workforce. Together, that provides an efficient employment solution.
ICS PEOple
ICS PEOple delivers a compliant, inside IR35 PEO payroll solution by directly employing the contractor. We can therefore alleviate the pressure to handle the tasks within the agency or end client, benefitting them as well as giving the contractor peace of mind.
With weekly or monthly (as agreed) confirmation of the contractor’s hours worked from the agency or end client, ICS PEOple will raise an invoice and issue it back to cover the gross rate plus employment costs (employer’s National Insurance, Apprenticeship Levy, employer’s pension) and margin.
Once we receive payment, we deduct tax and National Insurance which is directly paid to HMRC while the gross pay goes to the contractor, who receives a ‘traditional’ payslip rather than an umbrella payslip.
ICS PEOple Benefits
- Straightforward payslips
- Comprehensive Insurances
- Benefits portal
- Easy to use and compliant
- Full IR35, MSC and AWR compliance
- References for mortgages etc
- Workplace pension and holiday pay
- Contractors texted when paid
- Alternative to umbrella solution
- Reduced operating costs
- Dedicated account management
- Full employment rights
For more information, why not contact one of our experienced team today? Email us at info@icsuk.com or call 01524 580 720. We’ll take you through exactly how our compliant employment solution can save you time and money.
ICS Umbrella Ltd (04399985) 2 Mannin Way, Caton Road, Lancaster, LA1 3SU
