PEO – Professional Employer Orgnisation
PEO – (Profesional Employer Organisations) – Clear. Compliant. Confident payroll for modern workforces.
In today’s world of constantly changing tax rules, employment legislation, and payment structures, managing contractors and temporary workers can quickly become complex.
(PEO) exists to remove that complexity – bringing with it the required level of clarity, transparency, and compliance to every part of the employment and payroll process.
Originally popularised in the US, the PEO model is now gaining strong traction in the UK – particularly in sectors where clarity, PAYE consistency, and compliance are essential.
A Professional Employer Organisation offers a clear, logical alternative to traditional umbrella arrangements, delivering simplicity for workers, reassurance for agencies, and confidence for end clients.
PEO isn’t just payroll.
It’s peace of mind across the entire supply chain.
So what are PEO’s, how do they work and how can we help?
Got a question? Call us on 0161 713 1730.
Six Core Benefits of Using a PEO
Here are some of the core reasons why businesses are switching to a PEO model.
Complete Pay Transparency
Workers always know exactly what their gross pay rate is – no hidden deductions, no surprises on payday.
Reduced Compliance Risk
The PEO assumes responsibility for tax, NICs, employment law, and payroll compliance, helping protect agencies and end clients from risk.
Simplified Payroll Admin
Outsource complex payroll and HR processes to a specialist provider, saving time and internal resources.
Ideal for PAYE-Focused Sectors
PEOs are particularly effective in public sector environments – such as education, healthcare, and social care – where standard PAYE models are preferred.
Worker Confidence & Trust
Clear pay structures and compliant employment practices improve worker satisfaction and reduce disputes.
Agencies Can Focus on Recruitment
Rather than running in-house PAYE systems, agencies can partner with a PEO and stay focused on sourcing and supporting talent.
PEO vs Umbrella: What’s the Difference?
Like an umbrella company, a PEO sits between the worker and the hiring organisation. The key difference lies in how pay is structured and presented.
Under a traditional umbrella model, workers may see deductions such as Employer NICs, the Apprenticeship Levy, and umbrella margins shown on their pay documentation.
While compliant when clearly explained (as required by bodies such as Freelancer and Contractor Services Association), this can sometimes cause confusion – especially when an “assignment rate” differs from actual gross pay.
With a PEO model, those employment costs are charged directly to the hiring company, not deducted from the worker’s headline rate. This means:
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Workers see a clear gross pay rate
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No “uplifted” or confusing assignment rates
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Greater transparency from day one
The result is a simpler, more logical model that reduces misunderstandings and builds trust across the supply chain.
If you have any questions about the suitability of a PEO for your business – or would like to find out more, please call us on 0161 713 1730 – or contact us through email.
Find out more about the different solutions we offer to contractors and agencies.
Don’t just take our word for it…
“We’ve worked with New Red Planet since December 2023 and they’re now our sole supplier of labour across multiple rail projects. Their reliability, professionalism, and flexibility set them apart, consistently meeting our needs and adapting at short notice.
The NRP team, led by Steve, provides consistent service and personal support, with clear communication across management and site workers. Issues are handled quickly and pay is always processed promptly and accurately.
Having both Umbrella and PAYE payroll options under one roof gives us a unique operational advantage and complete compliance.
NRP has proven to be a dependable, solution-driven partner and we have no hesitation in recommending them for any organisation needing high-quality labour supply.”
Dean Thomas,
Managing Director
“We’ve partnered with New Red Planet for over 9 years and they’ve consistently delivered a reliable, honest payroll service. Their adaptability and hands-on support stand out – not only do they manage payroll efficiently, but they’re always available to help our employees directly.
The flexibility of having both Umbrella and PAYE solutions under one roof makes the process smooth, responsive, and tailored to our needs. Steve, Phil, Stacy and the NRP team provide the kind of personal, committed service that truly makes a difference.”
Chloe Murphy,
Operations Director
“We’ve worked with New Red Planet since 2019 and they’ve consistently proven to be a reliable, professional partner. As our sole supplier, they provide seamless support for both our team and our workers, with clear communication and quick resolution of any issues.
Their prompt, accurate payroll builds trust across the board, and the flexibility of having both Umbrella and PAYE solutions under one roof is a unique advantage we haven’t found elsewhere. NRP’s consistency and responsiveness make them an invaluable partner.”
Jaimie Sinclair,
Managing Director
“We’ve worked with New Red Planet for almost 12 years and they’ve consistently shown reliability and professionalism as a payroll partner. They not only manage payroll efficiently but also provide our workers with outstanding customer service, resolving queries quickly and effectively.
Their dual-model payroll gives both flexibility and choice, with PAYE and Umbrella solutions offered at no extra cost, and all within full HMRC compliance. The NRP team deliver a seamless, personalised service, and we’d recommend them to any education agency seeking a dependable payroll provider.”
Ian Kennedy,
Company Director
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