This article is intended to assist you in understanding your payslip and how each item is calculated.
In the interests of transparency, we have included all amounts received into Brookson, amounts we are required to retain in order to comply with our legal obligations as your employer, as well as deductions we are obliged to make from your gross pay before sending payment to your nominated bank account.
There is also a page 2 to the payslip which will further break down hours worked and rate of pay – so will provide a comprehensive view of your pay from your employment.
An example of this document is shown below and is referenced to the guidance notes.
Please note that this is not your gross pay – this is the amount paid to Brookson for services you have provided under your contract of Employment.
Employer Statutory Costs: This figure includes the Employer’s National Insurance and Apprenticeship Levy contributions which must be deducted and paid to HMRC.
Employer Pension: This amount is paid into your pension fund.
Company Margin: This is the only amount retained by Brookson.
Employee Gross Pay (A): This is your gross pay amount after items listed in 2 above.
Earnings: This column shows the components of your gross pay for the pay period:
Minimum Wage payment: This is the minimum contractual payment made to you as an employee; it is made up of hours worked in the period x either the National Living Wage Rate or Minimum Wage rate (determined by your age).
Holiday Pay: This is the money due and paid to you for holidays in this pay period. This is not deducted and retained, but is a payment in advance of holiday leave being taken and means you are constantly up to date with the money you are entitled to for holiday pay.
Holiday pay is calculated at 0.1207% x [Minimum wage payment + Bonus].
You should keep this amount to one side so it is available to you when you take holiday away from work, as you will not receive any further payments from Brookson whilst you take your annual leave entitlement.
Bonus: This is a discretionary bonus which we are paying you in addition to your National Living Wage and holiday pay.
Employee Gross Pay (A): This figure is made up of the above 3 elements.
Total Gross Pay This Period (B): This is your total gross pay for this pay period and is made up of Employee Gross Pay (A) plus any other payments due in the period if applicable (e.g. statutory payments such as SSP).
Deductions (C): These relate to deductions from your total gross pay this period and comprise tax, employees NIC, student loan and employees’ pension deductions (as appropriate).
Net Pay (B-C): Total Gross Pay This Period minus Total Deductions.
Total Paid to Bank Account: This is the amount you will see credited to your bank account for this pay period.
More Pay Information
Your tax code represents the amount of pay you can earn before you pay tax. It is generally based on your personal allowance. The standard personal allowance for 2019/20 is £12,500, which equates to a 1250L code.
There may be reasons why your tax code is different, for example, you may have used your personal allowance against another employment.
Your NI letter is determined by your employee group. Category A is a standard category for all employees apart from NI letters which cover other age groups, who are above the pensionable age or under 21, for example.
The National Living Wage Rate for 2019/20 is £8.21, however, if you are under the age of 25, then different National Minimum Rates apply, depending on your age, rising from £3.90 to £7.70.
What is your entitlement?
Employment Law states you are entitled to take 28 working days (or 5.6 weeks) of paid holiday in each holiday year. Brookson’s holiday year runs from 6th April to 5th April. Your entitlement is inclusive of your entitlement to public and statutory bank holidays recognised in England and Wales.
If you work variable hours your holiday entitlement will be calculated on a pro rata basis. If your employment commenced or terminates part way through the holiday year, your entitlement to holidays during that holiday year will be assessed on a pro rata basis. Unused holidays may not be carried forward into the next holiday year. It is your responsibility to ensure that you take your full holiday allowance throughout the year.
You must give Brookson as much notice as possible of your intention to take holidays, but no less than twice the amount of holiday time to be taken. It is also your responsibility to advise Brookson if a client or an intermediary agency refuses to allow you to take leave whilst you are on an assignment.
How is Holiday Pay calculated and paid?
You holiday pay is calculated based on the gross taxable pay you receive during your employment with Brookson. Your gross taxable pay consists of your minimum wage payment and bonus.
The holiday allowance is calculated as follows:
5.6 weeks ÷ 46.4 weeks = 12.068% (note: 28 days = 5.6 weeks).
This is the percentage of your gross taxable pay we include in your weekly pay. This is shown on your payslip as “Holiday pay”.
This is essentially a payment in advance of the holiday pay and means that you are constantly up to date with the money you are entitled to for holiday pay.
Further information in respect of pensions can be found in FAQ’s.
Brookson want you to make informed decisions on the expenses you choose to claim for reimbursement. Our expenses processing systems have been designed to give you the peace of mind that expenses reimbursed to you as an employee of Brookson Solutions Limited qualify as tax free under tax law and HMRC guidelines.
Furthermore, that any claim would be defensible in the event of a HMRC challenge at a later date.
As a result of this strategy, Brookson has adopted the following policies from 1st October 2018:
We will review your expense claims and provide advice as to which expenses can be reimbursed tax-free.
We will include only those expenses in your pay which are permitted (subject to a three day lead time for processing) and show them on your payslip.
We ask you to provide us with receipts for all claims before we process or provide advice in relation to a claim.
Upon receipt of your expenses claim, we will:
Confirm that a receipt is included for all amounts claimed, and that we can identify the nature of each item of the claim.
Advise you to input the details on our CONNECT system.
Contact you for further information before processing the claim, if there are items about which we are uncertain (where receipts are missing, or which appear to not be tax-deductible).
Guidance in respect of the types of expenses that can be claimed can be found here.