Employer NIC Calculation for £ 43,750.00

The Employers National Insurance Contributions Calculator is configured to calculate National Insurance Contributions calculations for the 2019/20 tax year. This Employers NIC's Calculation is for an employee earning £ 43,750.00 per annum in 2019/20. Each National Insurance Contributions calculation provides a full breakdown of Employee and Employer NIC's, so that you have a true cost for an employee on an annual gross salary of £ 43,750.00. Staff costs are not just salaries, Employers National Insurance Contributions are applied in addition to an employee's salary and are payable each month. This is a generic Employer NIC's example, you can add specific Salary Sacrifice and pension amounts etc. using the 2019 Salary and Tax Calculator

£ 43,750.00 Tax Year PAYE Calculation for Annual Salary of £ 43,750.00

How we calculated your National Insurance Contributions

National Insurance Contributions (NICs) in 2019 are payable by all individuals who:

  • Earn more than £162.00 per week
  • Are aged between 16 and 65 years of age.
  • Are self-employed and making annual profits exceeding of £6,205.00
  • Fall outside the standard contributing rules and want to make voluntary National Insurance Contributions to cover gaps / shortfalls in your contributions.

National Insurance Contributions (NICs) are composed of two elements, the amount contributed by you, the employee and the amount contributed by your employer. This are referred to as:

  • Primary Threshold: The category used for associating NICs rates and NICs earning thresholds to an EMPLOYEE
  • Secondary Threshold: The category used for associating NICs rates and NICs earning thresholds to an EMPLOYER. Read more about Employers National Insurance Contributions,

National Insurance Contributions (NICs) are calculated using a combination of:

  • Earning thresholds: How much you earn changes the rate at which you pay NICs. Earning which fall within each threshold are 'Earnings subject to NICs'
  • Percentage Rates: How much of the 'Earnings subject to NICs' is deducted
National Insurance Class for NIC Calculation

Based on the information provided (you can change the settings in the advanced calculator as required) we have calculated your National Insurance Contributions using:

Class 1 Employees earning more than £162.00 a week and under State Pension age - they're automatically deducted by your employer

Class 1A or 1B Employers pay these directly on their employee's expenses or benefits

Employee Class 1 NICS Calculation Overview
£0.00 [ Below LEL: 0% ] Weekly Lower Earnings Limit (LEL) (52 x £116.00 )
+ £0.00 [ LEL - PT: 0% ] Weekly Primary Threshold (PT) (52 x £162.00)
+ £3,976.62 [ PT- UEL: 12% ] Weekly Upper Earnings Limit (UEL) (52 x £892.00)
+ £0.00 [ Above UEL: 2% ] Above Weekly Upper Earnings Limit (UEL) (52 x £892.00)

= £3,976.62 Total National Insurance Contributions in 2019
Employee Class 1 NICS Calculation: Due within the Primary Threshold
£41,562.50 Adjusted income (allowing for Salary Sacrifice and Pensions)
£46,384.00 Weekly Primary Threshold (PT) (52 x £892.00)
- £8,424.00 Weekly Lower Earnings Limit (LEL) (52 x £162.00)

= £33,138.50 Amount subject to Primary Threshold National Insurance Contributions in 2019
= (lesser of £33,138.50 and £46,384.00)
x 12% Employee's Class 1 contribution rate between Primary Threshold and Upper Secondary Threshold for under 21s

= £3,976.62 Your employee Primary Threshold NICS in 2019
Employer Class 1 NICS Calculation: Due within the Secondary Threshold
£41,562.50 Adjusted income (allowing for Salary Sacrifice and Pensions)
- £8,424.00 Weekly Secondary Threshold (ST) (52 x £162.00)

= £33,138.50 Amount subject to Secondary Threshold National Insurance Contributions in 2019
x 13.8% Employer's Class 1 contribution rate above Secondary Threshold

= £4,573.11 Your employer NICS in 20191

1 Employers can claim up to £3,000.00 off the NIC bill in 2019 using the Employment Allowance scheme. You must have more than one employee and pay class 1 National Insurance Contributions. You can also claim Employment Allowance if you employ a care or support worker. The Employment allowance is not shown in this illustration due to the variance of amounts dependant on number of employees / means of claiming the allowance.

View a Full Salary Calculation for £ 43,750.00 including full Employee cost of employment calculations

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Understanding this Employer NIC's Calculation

The Employers National Insurance Contributions calculation includes a graphical overview detailing the percentage breakdown so you can view the breakdown of each staff overhead and see the true cost of maintaining your Permanent Employees. The National Insurance calculator is updated for 2019/20 tax year and uses the 2019/20 tax thresholds and allowances as default to produce the National Insurance Calculation. Our suite of payroll calculators also provide PAYE, tax and graphical illustrations. You can view examples of the payroll calculations for an employee earning £ 43,750.00 below.

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If you have never really looked at your payslip or perhaps it's your first job and the first time you have looked at a payslip, it is worth spending a few minutes getting to know what the different deductions and payroll details are. Understanding your payslip and payroll deductions allows you to identify potential errors and know what to do when mistakes are made so you can claim back any overpaid tax. The guides below are easy to read and designed to provide a basic understanding of payslip and payroll deductions.

Know your Payslip and Income Tax Deductions
What is Gross Pay? What is Net Pay?
Employees National Insurance Contributions (NIC's) Employers National Insurance Contributions (ENIC's)
What is PAYE (Pay As You Earn)? Giving to Charity, what's in it for you?
State Pensions explained Company Pensions explained
Tax Avoidance and Tax Evasion What is my Tax Free Allowance?
How to pay less NIC's Top 10 Tax Saving Tips