Choosing the right payroll model matters for agencies and workers alike. Here’s how the two compare.
Under Umbrella PAYE, workers become employees of the umbrella company. The umbrella company processes payroll, deducts taxes and manages statutory employment obligations.
Agency PAYE involves workers being paid directly through an agency payroll structure. The agency retains responsibility for worker employment and payroll administration.
The umbrella company becomes the employer and takes on statutory employment obligations for the worker.
The recruitment agency remains responsible for the worker’s employment and payroll administration.
