How Does PEO Work?
A PEO provides an umbrella alternative employment solution for recruitment agencies or end clients by employing a contractor directly, taking care of the employer responsibilities such as employment rights, payroll, payments to HMRC, pension contributions, and benefits.
Contractors are provided with their gross pay rate from the start of an assignment which gives greater transparency when working out take-home pay. There are no employment costs or deductions from their rate. They receive a straightforward payslip with their gross pay through the Pay As You Earn (PAYE) model.
For an agency or end client to operate this solution internally creates a huge amount of extra cost, time and resources, plus the added stress and pressure on top of the usual business as usual.
That’s where ICS PEOple comes in, offering reduced payroll costs, a compliant workforce and an efficient employment solution.