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What is a Timesheet?

When you are working through an umbrella company, you are paid for number of hours you have worked. Depending on the payment frequency, you will be required to submit a timesheet to show the number of hours you have worked.

After you have filled the timesheet, you will need to send it to your agency and get it signed-off by the client.

Even when working through a Limited Company, you may need to fill in a timesheet to show the number of hours worked and to get paid.

In this article, we will explain you what a timesheet is and why it is required in simplest terms with example.

What is a timesheet?

A timesheet is a document that contains the record of the work you have done for the client.

It is a document that contains information like how many hours you have worked and on which project. It helps the client to analyse the project efficiency and is also used by umbrella company for payroll purposes.

What information does a timesheet include?

Timesheet typically includes the following details:

1. Contractor’s Name
2. Time period – Dates on which the contractor has worked
3. No. of hours worked (minus breaks)
4. Pay rate – Hourly or Daily
5. Client's name
6. Name of the project

How does a Contractor get paid?

1. Contractor fills the timesheet and submits to the agency.
2. Agency gets it signed-off by the client.
3. Agency will send contractor the timesheet that was signed-off by the client.
4. The contractor will have to send the signed timesheet to the umbrella company for payment processing.
5. Umbrella company will then invoice contractor’s recruitment agency based on the signed timesheet for payment.
6. Agency will pay the umbrella company.
7. Umbrella company will make the relevant deductions and process your payment.
8. Post deductions, net pay will be credited to contractor’s personal bank account.
9. Contractor will receive a payslip which will have a breakdown of deductions and net pay.

Umbrella companies rely on timesheets for billing and payroll purposes.

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