When Compass (or any umbrella provider) employs someone on behalf of an agency or client, we also take on the responsibility to pay the Employer’s National Insurance and APL each time we process a payment.
The Assignment Rate quoted to you includes an allowance for these statutory deductions and these will have been shown on the Key Information Document provided to you by your agency i.e. your rate has been uplifted.
The Assignment Rate multiplied by hours or days worked determines the Company Income that Compass receives from your agency. It’s from this that the Employer’s deductions are made – not from the Worker’s Gross Income.
If your agency or the client were to pay you directly, you would expect to see a reduction in your rate of 10-20%, as the agency or client would pay Employer’s NI and APL themselves before your rate is calculated.
This means you are not worse off because of Employers NI and APL being deducted.