Papaya is a company that employs contractors and freelancers. When you join Papaya, you become an employee of theirs. Papaya will receive your gross funds from your recruitment agency (or directly from your client) and will make the necessary tax and National Insurance Contributions to HMRC. They’ll then pay you your net salary.

When you join Papaya, you will be given a contract of employment. This contract will set out the terms and conditions of your employment, including your pay rate, holiday entitlement, and sick pay.

Papaya will then process your payroll. This involves calculating your tax and National Insurance contributions, and deducting them from your gross pay. The net pay will then be paid into your bank account.

The only cost of using Papaya is the margin that they charge to process your payroll. This is to cover our overhead costs as a business. net salary.

A payslip is a document that shows your earnings, deductions, and net pay for a particular period of time. It is important to keep your payslips as they can be used to prove your income for tax purposes.

When you work through Papaya, you are technically an employee of Papaya. As such, Papaya is responsible for paying Employers’ National Insurance (ENI) on your behalf.

ENI is a tax that is paid by employers on the wages of their employees. It is used to fund the National Health Service (NHS), state pensions, and other social security benefits.

The rate of ENI is currently 13.8%. This is split between the employer (12%) and the employee (1.8%).

When you work through Papaya, the Papaya will deduct ENI from your pay and pay it to HMRC on your behalf. Your Umbrella rate will have been increased from the normal PAYE rate, in order to account for this tax.

There are a few reasons Papaya employees pay ENI.

First, it is the law. All employers in the UK are required to pay ENI on the wages of their employees.

Second, it is fair. Papaya employees are entitled to the same benefits as other employees, such as the NHS, state pensions, and other social security benefits. ENI helps to fund these benefits.

Third, it is beneficial for Papaya employees. ENI can help to reduce your tax bill. For example, if you are a higher-rate taxpayer, you can claim back the 20% of ENI that you pay.

If you are considering working through Papaya, it is important to understand that you will be responsible for paying ENI. However, this is a fair and beneficial system that helps to fund the NHS, state pensions, and other social security benefits.