Confused . Com please help

joanne2510
joanne2510 Registered Posts: 13 New contributor 🐸
edited June 18 in AAT student discussion
I am calculating the NICs for regular employees who are members of a COSR pension scheme and using % method.

a= 1026.21 per month income
b= 798.52 per month income
c= 198.28 per week income
d = 3999 per month income
e= 302.69 per month income

here is what i have for a,b,c,e not sure if correct but stuck on d :-(

a) 1026.21-476 = £550.21 x 9.4% = £51.72 476-421=£55.00 x 1.6% = £0.88
51.72-0.88= £50.84 employees
1026.21-476=£550.21 x 9.1% = £49.52 476-421=55.00 x 3.7%= £2.03
49.52-2.03= £47.49 employers

(b) 798.52- 476=322.52 x 9.4%= £30.32 476-421=55 x 1.6% =£0.88
30.32-0.88= £29.44 employees
798.52-476=322.52 x 9.1% = £29.35 476-421=55 x 1.6%= £2.03
29.35-2.03= £27.32employers

(c) 198.28-110=88.28 x9.4%= £8.30 110-97=13.00 x 1.6% = £0.21
8.30-0.21 =£8.09 employees
198.28-110=88.28 x 9.1% =8.03 110-97=13 x 3.7% = £0.48
8.03-0.48= £7.55 employers

(e) 302.69-110=192.69 x9.4% = £18.11 110-97=13 x 1.6% =£0.21
18.11-0.21 =£17.90 employee
302.69-110=192.69 x 9.1% = 17.53 110-97=13 x 3.7% =0.48
17.53-0.48=£17.05 employers


If someone could let me know if I am on the right track and how I break down (d) would be great thanks

Comments

  • payrollpro
    payrollpro Registered Posts: 425 Dedicated contributor 🦉
    Joanne,

    i make the a) ERS £50.07 less £2.04 rebate. Generally you will round up if it is to the benefit of the employer/employee.

    Rest look fine, apart from that rounding. As far as d is concerned, start at £3999, take off the UEL which gives you the 1% band for employees. Go from UEL down to UAP which gives you the 11% band, UAP down to ET is the 9.4% then ET down to LEL is the rebate. There is a similar situation for employers but UAP and above is all full rate, 12.8% so its a bit easier.

    Payrollpro
  • joanne2510
    joanne2510 Registered Posts: 13 New contributor 🐸
    please can you break this down into figures i really dont understand. thank you
  • payrollpro
    payrollpro Registered Posts: 425 Dedicated contributor 🦉
    The UEL for 10/11 is £3,656 whilst the UAP is £3,337 so the calculation goes thus:

    Gross pay £3,999
    Less UEL £3,656, means £343 payable at 1% ees and 12.8% ers, £3.43 and £43.90
    Less UAP £3,337, means £319 payable at 11% ees and 12.8% ers, £35.09 and £40.83
    Less ET £476, means £2,861 payable at 9.4% ees and 9.1% ers, £268.93 and £260.35
    Adjusted by c/o rebate £55 at 1.6% ees and 3.7% ers, £0.88 and £2.04

    Total ees is therefore, £306.57 and ers £343.04

    It's irritatingly complex but use a step by step approach and it works ok.

    Payrollpro

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