Employer National Insurance Contributions

laptop with National Insurance information on screen

Employers National Insurance Contributions

In addition to calculating the employee National Insurance contributions, we will also calculate the contributions that the employer is required to make. The calculation is part of the payroll calculation. The monthly contributions will be included in the schedule that we provide.

For budgeting purposes, you may want to calculate the costs to the employer of Employer National Insurance Contributions (NICer). The calculation of National Insurance usually changes at the start of each tax year (6 April).

In summary:

Employer National Insurance Contributions, tax year 2022/2023,
6 April 2022 to 5 November 2022

Earnings up to £758.00 per month: nil
Earnings over £758.00 per month: 15.05%
Note: Contributions are only paid on the earnings above £758.00 per month, so, for example, for monthly earnings of £1,000 the calculation will be: £1,000 less £758 = £242.  £242 x 15.05% = £36.42

Employer National Insurance Contributions, tax year 2022/2023,
6 November 2022 to 5 April 2023

Earnings up to £758.00 per month: nil
Earnings over £758.00 per month: 13.8%
Note: Contributions are only paid on the earnings above £758.00 per month, so, for example, for monthly earnings of £1,000 the calculation will be: £1,000 less £758 = £242.  £242 x 13.8% = £33.39

Full details of the current National Insurance Rates (for employee and employer contributions) are available here.

You should also note that there is an annual ‘ Employment Allowance’, currently £5,000 per year that reduces the employer liability for National Insurance contributions.   We discuss with clients potential entitlement to Employment Allowance as part of the on-boarding process.