The jnet Portal provides a balance of invoice amount vs payroll gross amount to track funds remaining on the account. This balance can be used to settle:
The balance can be seen in the transaction history screen via the contractor's home page. The balance can be viewed against either invoice net of vat or invoice payment net of vat.
The umbrella company will typically have a policy on how the contractor's balance accumulates. For example minimum wage could be paid until the balance was GBP 5000 and then pay out all funds as they arrive. This would enable the GBP 5000 to be used to pay for sick periods, holiday or in-between contracts payments.
|Date||Event||Amount||Sale Payment Balance||Notes|
|31/01/2011||Monthly Min Wage Payroll||-1000||-1000||Contractor started work in Jan but you have not yet had any invoice payment so their balance is negative|
|10/02/2011||Payment for invoice 1||5000||4000||Jan's invoice 5000 (net) is paid into the umbrella co's bank|
|28/02/2011||Monthly Min Wage Payroll||-1000||3000||Not enough funds yet accumulated to pay out more than a min wage payment|
|10/03/2011||Payment for invoice 2||5000||8000||Feb's invoice is paid|
|30/03/2011||Monthly Wages||-3000||5000||Required balance to cover holiday, sick, etc. is retained, all other funds paid out|
|30/04/2011||April is taken as holiday||-1000||4000||Part of balance used to allow the contractor to take holiday|
The key figure used from payroll entry is "Total Gross". This figure represents the funds that you are paying out on. Typically:
Total Gross = Admin Fee + Employer's NI + Employee's NI/PAYE + Expenses + Net Pay + Other