What is a Timesheet?
In traditional employment, you’re paid for your contracted hours. But it’s a bit different if you’re contracting or working via an umbrella company, where you’re only paid for your work.
Whether you operate through your own limited company or an umbrella, as a contractor, you’ll often complete a timesheet instead. If you haven’t worked this way before, it can take some getting used to.
This article will explain what you need to know about timesheets and why umbrella workers use them.
What is a timesheet?
In its simplest form, a timesheet is a document to track how a worker spends their time on a particular project, for example. The timesheet is then used for payroll.
Timesheets are helpful for workers who charge by the hour or per day, as it shows your clients (and umbrella company) what you’ve worked on, giving them better visibility of the different elements of a project and how the time and costs stack up.
What is a timesheet used for?
As a summary of your hours worked, you need a complete timesheet so that you can be paid.
Timesheets also provide insight into how long some tasks take. This can improve efficiencies and project management processes to save time or costs, or both.
What information is included in a timesheet?
A timesheet has your name, the dates for the time period and your hourly or daily rate. You’ll record your hours for each day, less any breaks (such as lunch).
Then, multiply your hours worked by your hourly rate for a total payslip value.
Do umbrella companies use timesheets?
Yes, for accurate billing and payroll. You’ll complete and submit your timesheet – whether weekly, fortnightly or monthly – and your umbrella company will run payroll and you’ll get paid.
Advantages of using a timesheet
Using a timesheet helps you to communicate the total cost breakdown of your work to your umbrella company and the end client.
Disadvantages of using a timesheet
The primary consideration is whether your timesheets are physical or digital. There’s timesheet software that’s more suitable than using paper timesheets or spreadsheets for tracking hours worked.
And of course, not everyone uses timesheets – they’re useful for contractors and umbrella employees but aren’t suitable for salaried workers, for example.
In short, a timesheet summarises your working hours, making your pricing more transparent and ensuring you get paid correctly and on time.
If you have any questions about timesheets and working via an umbrella company, please get in touch.
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