Employers National Insurance

The Employers National Insurance is the amount that employers pay on top of the gross salary as a cost of employing staff. The rate of contribution is set by Government each year and is incorporated into the yearly updates of payroll software so that the correct amounts are paid over to HMRC.

When you are thinking about taking on an employee, this is a cost of employment that is often missed; this can be a problem as the sums involved can be quite considerable.

We will not try and copy all, the information down regarding Employers National Insurance Contributions (NICs) as HMRC produce pages and pages of information regarding it and its implementation.

Details for the masochists can be found at the following HMRC site link

Employer’s National Insurance

To summarise what it takes HMRC quite a few pages to tell you, for the current payroll year (2012-2013) for every pound that an employee earns over the HMRC Secondary Threshold (£144 per week) you; the employer must pay over an extra 13.8%. Unlike the employee NIC, the employers NIC are not capped, so however much you pay your employee in excess of £144 per week you will have to pay over 13.8% on top of the salary. This extra 13.8% employer National Insurance is paid over to HMRC on either a monthly or a quarterly basis depending upon the way you pay your payroll liabilities.

For clients that use our payroll service the Employers National Insurance payment is included in the monthly statement of liabilities report that we send out to you in order that you know how much to pay over to HMRC

You can call us on 01666 822256 or you can use our instant quote tool and see for yourself how little PGA Payroll Services will cost.