How is employer ni calculated

Account Settings Logout. Sage Business Cloud Payroll. Change product Accounting Start Billing. Change location Ireland. The available options are weekly, 2-weekly, 4-weekly and monthly and determines the NI thresholds to use for their calculations.

The pay cycle is specified in the Employment Details section. Date of Birth If the employee is under 16, they are not subject to NI. If the employee is over State retirement age, they should be on NI category C, which means they are not subject to NI deductions from their pay, but the employer must still pay NI on their behalf. The date of birth is specified in the Personal Details section. Note: When calculating payments subject to NI, check the gross payments, including statutory payments, less any gross deductions or business expenses.

This applies even if you are the director of your own company running payroll and are the only employee. NIC earnings thresholds can be calculated weekly or monthly. The rate of NICs that employers contribute depends on the National Insurance category letter of the employee. Most employees are in category A and, for them, employers pay Some of the rules for claiming are different in previous years.

Because the aim is to encourage recruitment, companies with only one employee cannot claim this allowance if that employee is also a director of the company.

The amount you pay as a worker is calculated based on your gross earnings as an employee or your self-employed profits after expenses have been deducted. For employees, this may also include some expenses and benefits in kind paid by your employer. Company directors are also classed as employees and pay National Insurance on annual income from salary and bonuses over a certain threshold.

Contributions are worked out from their annual earnings rather than from what they earn in each pay period. The amount payable is based on gross earnings between an upper and lower limit. The self-employed usually pay 2 types of National Insurance contributions — Class 2 and Class You can find out more about self-employed National Insurance rates here or use this tax calculator to work out your National Insurance liability. Employers pay Class 1A and Class 1B National Insurance contributions once a year on the expenses and benefits they give to their employees.