What are the two types of National Insurance?
Both employers and employees need to pay National Insurance (NI) contributions once earnings are above a certain level.
Your salary is not the day rate multiplied by the number of days worked. This is the total amount the umbrella company is paid for the work completed and is known as the assignment income.
When you work through husp you would not be paying the employers NI contributions. We pay these out of the assignment income we receive from the agency.
When we calculate what proportion of the assignment income we’ll pay to you as your salary, we ensure that we’re also able to cover all of the costs we incur in providing the services in the contract with the agency. This includes the employers NI we’re required to pay as well as the apprenticeship levy. You can find out more about the apprenticeship levy here. Some umbrella companies will group all these costs together as ’employment costs’.
You can find out more about all of the payments and deductions on your umbrella company payslip in our guide.