Employers NI

UK PAYE Salary Tax Calculator Updated for 2014/2015

Employers National Insurance Contributions, Tax, VAT, PAYE, NI... What does it mean? Tax terms and jargon explained with sensible guides to everything tax, making tax simple.

Terminology and Jargon, it drives everyone crazy. iCalculator's tax calculators (VAT, PAYE, NI etc) use typial HMRC terms and jargon for standardisation, any deviation to those terms is defined here in our terminology section.

Employers National Insurance Contributions

What are Employers National Insurance Contributions and how are Employers National Insurance Contributions calculated?

Suprisingly, not all people who are employed by a company are aware that their employers pay contributions towards their National insurance on their behalf.

You can calculate your employers National Insurance Contributions for 2014 / 2015 using our online salary calculator. The calculator will also provide a breakdown of National Insurance contributions and other salary deductibles.

This is one reason why some employers elect to use contractors and employ them through an umbrella company, particularly when using temporary staff or augmenting their workforce for a specific project etc..

What are Employers National Insurance Contributions

Employer National Insurance Contributions

National Insurance Payments (NIC's) are a two part payment, the first element being taken from the employee and the second from the employer. Both parts are calculated using a parentage of your salary.
Specific National insurance rates vary depending on the amount of money you earn.

Although both Employee and Employer NIC's are deducted directly from wages, only the employee portion of the NIC's payment is eligible for tax relief. There is no tax relief afforded to Employer national insurance contributions

Employers NIC's are not normally specified on an individuals wage slip so most will be unaware of how much a company is contributing towards their national insurance contributions on their behalf.

There are a number of ways of reducing the amount of National Insurance Contributions - see the article here

How are Employers National Insurance Contributions (NIC's) calculated?

Employers National Insurance Contributions (NIC's) are calculated based on the National Insurance Contribution (NIC) category allocated to the employee.

The current rates for 2014 / 2015 are shown below.

NICs category letter Earnings at or above LEL up to and including ST Earnings above ST up to and including PT Earnings above PT up to and including UAP Earnings above UAP up to and including UEL Balance of earnings above UEL NICs rebate on earnings above LEL, up to and including ST
A 0% 13.80% 13.80% 13.80% 13.80% N/A
B 0% 13.80% 13.80% 13.80% 13.80% N/A
C 0% 13.80% 13.80% 13.80% 13.80% N/A
D 0% 10.1% 10.10% 13.80% 13.80% 3.70%
E 0% 10.10% 10.10% 13.80% 13.80% 3.70%
F 0% 12.40% 12.40% 13.80% 13.80% 1.40%
G 0% 12.40% 12.40% 13.80% 13.80% 1.40%
J 0% 13.80% 13.80% 13.80% 13.80% N/A
L 0% 10.10% 10.10% 13.80% 13.80% 3.70%
S 0% 12.40% 12.40% 13.80% 13.80% 1.40%
Useful References