Agency advice please

makeyourdaddyproud

Gazza233 wrote: »

I am not a greedy chap at all, as I say I don't mind companies making money, but outsourcing wages and charging a hefty fee on a "service" you have to use, seems very shady and not conductive to engaging staff to stay very long term

If this agency was doing the payroll then there would be no need to for an umbrella. But £22 per week would be an average charge for such a service.

The only thing you can do is choose agencies running their own payroll on behalf of their workforce.

Babbawah

makeyourdaddyproud wrote: »

If this agency was doing the payroll then there would be no need to for an umbrella. But £22 per week would be an average charge for such a service.

The only thing you can do is choose agencies running their own payroll on behalf of their workforce.

None of what you are saying makes any sense to me.

I'm an employer, should I stop doing the payroll and outsource it to an umbrella? Would a charge to each of my employees of £22 be fair?

Then you say we should choose an agency that does its own payroll, somewhat contradictory to an umbrella being a good thing !

makeyourdaddyproud

Babbawah wrote: »

None of what you are saying makes any sense to me.

I'm an employer, should I stop doing the payroll and outsource it to an umbrella? Would a charge to each of my employees of £22 be fair?

Then you say we should choose an agency that does its own payroll, somewhat contradictory to an umbrella being a good thing !

What i'm saying is that if an agency doesn't want that hassle of running a payroll, then an unbrella company charging £22 per week per employee is not out of the ordinary.

But yes, they often pass the charge onto the employee, and for some of the low paid the charge would represent a significant chunk of their income.

I suppose when you look for work through an agency, the method the agency uses to code earnings is not normally queried until its too late and an assignment is agreed upon, hence this thread.

I have used an umbrella and found them to be very useful, as they often have some benefits such as tax relief of subsistence and travel (depending on what you're doing in the job).

A word of advice I would give is that it would be a good idea to ask what the umbrella deduction is before accepting the job.

Babbawah

makeyourdaddyproud wrote: »

What i'm saying is that if an agency doesn't want that hassle of running a payroll, then an unbrella company charging £22 per week per employee is not out of the ordinary.

But yes, they often pass the charge onto the employee, and for some of the low paid the charge would represent a significant chunk of their income.

I suppose when you look for work through an agency, the method the agency uses to code earnings is not normally queried until its too late and an assignment is agreed upon, hence this thread.

I have used an umbrella and found them to be very useful, as they often have some benefits such as tax relief of subsistence and travel (depending on what you're doing in the job).

A word of advice I would give is that it would be a good idea to ask what the umbrella deduction is before accepting the job.

So if a business doesn't want the hassle of running a payroll then it's OK to charge its employees for passing the hassle onto an umbrella provider?

How is a charge of £22 justified by the umbrella provider?

Does it really cost as much as £22 per employee to process their wages?

I could earn £1000's pw just by buying some software and charging business's £22 per employee to process their wages . . . Let me see now, if it takes 4mins to enter the info into the software and I work a 40hr week . . . "This time next year Rodney we'll be £millionaires".

Have you lost the plot?

makeyourdaddyproud

Babbawah wrote: »

So if a business doesn't want the hassle of running a payroll then it's OK to charge its employees for passing the hassle onto an umbrella provider?

How is a charge of £22 justified by the umbrella provider?

Does it really cost as much as £22 per employee to process their wages?

I could earn £1000's pw just by buying some software and charging business's £22 per employee to process their wages . . . Let me see now, if it takes 4mins to enter the info into the software and I work a 40hr week . . . "This time next year Rodney we'll be £millionaires".

Have you lost the plot?

£22 might perhaps be the price point at which a payroll roster of, say, 500 accounts might make running a business feasible.

This would yield a turnover of £11k a month - don't forget the costs of running such and enterprise could easily eclipse that revenue; only 5 employees at £12k per annum would destroy that turnover by half.

And yes, you could easily run your own umbrella co for a lower cost. This is the land of capitalism, why not try it?

Babbawah

makeyourdaddyproud wrote: »

£22 might perhaps be the price point at which a payroll roster of, say, 500 accounts might make running a business feasible.

This would yield a turnover of £11k a month - don't forget the costs of running such and enterprise could easily eclipse that revenue; only 5 employees at £12k per annum would destroy that turnover by half.

And yes, you could easily run your own umbrella co for a lower cost. This is the land of capitalism, why not try it?

Wow. What on earth is inside your head ?

I would give my left testicle for a business that earned £22 off of 500 people every week. !!!!!! that is £11000 per week guaranteed !

For what? For processing their wages !

I could write an excel spreasheet, employ a monkey on minimum wage, sit it in the spare room with all the resources it needs and clear at least £10500 profit EVERY WEEK.

£10600 if I paid the monkey through an umbrella !

Makes you wonder why everyone isn't doing it doesn't it !

There's the solution to the idle unemployed, cut off their benefits and set them all up running payroll for business's that don't want the hassle !

makeyourdaddyproud

You say that but if there was an IT problem, would you go without sleep for x days to solve it, even for the £11k pw? Not sure I would sacrifice my welfare for that lad.

Babbawah

makeyourdaddyproud wrote: »

You say that but if there was an IT problem, would you go without sleep for x days to solve it, even for the £11k pw? Not sure I would sacrifice my welfare for that lad.

Come back when you is sober.

I am not a coward and I relish a healthy debate.

But with you, there is something wrong.

Gazza233

To add:

The £22 "fee" for the "services" "provided" is the 8 percent on a gross wage of £280 per week.

On Wayne Rooney's gross wage of £300000 per week, the third party payroll company would charge him £24000 to "process" his wages

makeyourdaddyproud

Gazza233 wrote: »

To add:

The £22 "fee" for the "services" "provided" is the 8 percent on a gross wage of £280 per week.

On Wayne Rooney's gross wage of £300000 per week, the third party payroll company would charge him £24000 to "process" his wages

Most umbrella companies fix their fees and it isn't dependent on wages. Umbrellas are heavily used in white collar industries where contractors are used and pay is generally much higher (in the order of £30 ph).

If you don't like it, don't accept the job.