At PayStream we have a strong focus on compliance and that’s why we like to be completely transparent when it comes to how we operate, and how we calculate your take home pay.
If you’re using an umbrella product like
My Max, you will receive a pay advice.
This will detail just how much you will be taking home, as we will deduct the required PAYE and National Insurance Contributions.
However, if what you would ideally like is to see how your take home figure is calculated in a bit more detail, then here’s a sneaky peak.
The first thing we do is deduct our margin from the money that your agency pays to us.
After that we calculate employers National Insurance – and that leaves the income amount which can be used for your expenses as well as your wage.
From this amount of income we make sure you receive the national minimum wage and your holiday pay, with the remaining amount then being available for tax relief on your expenses.
If your expenses happen to be less than the remaining income amount, then what’s left over is classed as commission.
This is handed back to you and added back to your wage so that PAYE tax and employees National Insurance can be deducted from it.
We then add the national minimum wage, holiday pay and any commission together – which of course, results in your gross wage.
From the gross wage we can then deduct your PAYE tax and employees NI leaving your net wage.
After that, all that’s left to do be done is to add the expenses back into your net wage, giving you your overall take home pay.
Hopefully this has explained how we calculate your take home pay a little better - but if you still have any questions please contact one of our new business consultants, for more details.