PLTX Practice Assessment 2 Question 1.7

KellyM15

Hi, help needed please with Q7 on the No.2 mock exam on AAT.

''The total employer Class 1 National Insurance contributions payable by Bob in 20/21 are?''

Bob has two employees Joan £26000 salary and Ari £53000 salary.

The calculation is - 26000 + 53000 = 79000
79000 - 8788 x 13.8% = 9689 - 4000 (EA) = 5689 Bob needs to pay HMRC

Does anybody know why on the AAT exam answers the answer is £4476??

Thanks

Laz82

The £8778 allowance is per employee, so
£26000 - £8788 = £17212 +
£53000-£8788 = £44212
£61424 × 13.8% = £8476 - £4000 = £4476

Hope that helps