Home For accounting professionals General accounting discussion

N.I Query

ajmckellajmckell New MemberRegistered Posts: 7
Hi

Just a very quick question. If I wanted to work out the employers N.I contribution for the month before all the payrolls are finalised would it be a sum as simple as multiplying the gross wage cost by 12.8% or am I making it to simple?

Many Thanks for anyones help

Andy

Comments

  • truecockneytruecockney Feels At Home Registered Posts: 93
    If it is just a budget you are preparing for, then that is fine.

    The actual figures are different though as there is a lower earnings limit that needs to be taken into consideration of £421 per month. The Employers NI would be 12.8% of all gross wages over that (and also depends on which NI category the employee is under).

    http://www.hmrc.gov.uk/paye/rates-thresholds.htm
  • ajmckellajmckell New Member Registered Posts: 7
    It is just for a rough overall amount.

    Thank you
  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC, FMAAT Posts: 423
    The employers charge only kicks in at the earnings threshold of £476 a month so even as a rough guide it will be significantly over estimated.

    But again, it all depends on the purpose of the figure.

    Payrollpro
Sign In or Register to comment.