Temping and pay doesn't look right

Bluebell_Mel

Hi

I've just started temp job after not working for the last year due to redundancy (had been with my previous company for over 18 years.

I've had my first payslip and it looks like the NI deduction is higher than it should be and the pension contribution lower.

I've approached the company saying I thought the NI deduction was higher than it should be and the pension lower. They've referred me to the HMRC calculator (which was why I approached them in the first place).

They told me that their payroll had deducted 2.4% of gross taxable earnings between £116 and £892. The remaining 0.6% is contributed by the government as tax relief. If that were the case, shouldn't I have £41.04 deducted?

They will also contribute 2%.

However, I can't for the life of me match their figures.

I did 114 hours @£15ph (ie £13.38ph & holiday pay of £1.62ph) total £1710.02. Was deducted NI of £146.88 and pension of £32.69

Net pay was £1530.45

However on the payroll analysis is shows
gross tax £1710.02
NI contribution £146.88
Holiday pay accrual £184.69

Is there someone out there who can help and advise if their calculations are correct as I can't work it out/get it to match what the HMRC claims? I am not paying emergency tax

Many thanks in advance

dawyldthing

Type in the details into listentotaxman.com but put the pension contribution in too and it will break it all down

Dazed_and_confused

Have you (inadvertently?) got embroiled in some sort of umbrella set up rather than just a big standard PAYE job?

agrinnall

It's not clear from your post what period this pay is for. The upper and lower limits you mention are for a week, but 114 hours is a lot to work in 1 week. And I don't understand the percentages you mention, the employees NI rate is 12% between PT and UEL (the range you give for weekly pay) and 2% above UEL - no idea where 2.4% and 0.6% have come from.

Bluebell_Mel

Hi, I've done 3 weeks work so far. Not an umbrella company, they pay me £15 per hour including holiday pay of £1.62. Have worked 114 hours (37, 39.25 & 37.75). Also not been taxed and did think it was coz I hadn't worked this tax year

theoretica

NI is right then - run it through the calculator for your average week of 38 hours. £48.96 NI a week x 3 = £146.88

Bluebell_Mel

Just realised that I hadn't taken the £162 off when calculating, but still can't work out the pension deduction

theoretica

The number you are seeing comes from the 2.4% only applying to your weekly earnings above £116.



1710 - (116 x 3) = 1362, the earnings they are using for pension contributions.



1362 x 2.4% = 32.69

Bluebell_Mel wrote: »

They told me that their payroll had deducted 2.4% of gross taxable earnings between £116 and £892. The remaining 0.6% is contributed by the government as tax relief. If that were the case, shouldn't I have £41.04 deducted?

chrisbur

The way you describe this payment suggests that it was paid as one payment which included pay for three weeks work.
If this is the case then the correct NI deduction will depend on the normal earnings period.
If your normal earnings period is weekly pay then the calculation is based on each separate week and the figure is correct. If however your normal earnings period is not weekly but say monthly the calculation should be on the basis of the full NI allowance for a month which is £702 which would give an NI deduction of £120.96, or four weekly would be £648 to give £127.44 NI and two weekly the same as four weekly.
So to know the correct NI deduction need to know your normal pay period.

Bluebell_Mel

Thanks Theoretica, that makes sense to me. I hadn't taken the £116 from the calculations.

Chrisbur - yup, I was trying to work it as a whole and hadn't done it on the hours for the 3 weeks I worked (they paid in a lump sum) or deducted the £162.

With everyone's help I can now see that it is correct.

Thanks everyone!