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:

  • holiday pay
  • sick pay
  • between-contracts payments
  • any balance on leaving employment

Tracking Payment with Balances

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