Employers NI allowance (annualised for a quick simple calculation here) = 7488
9656.40-7488 * 13.8% = 299.24
hth,
Shaun.
p.s. edited due to silly typo in the final figure.
-- Edited by Shamus on Tuesday 9th of October 2012 11:05:49 AM
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
A client has rang saying that he is thinking of taking a new employee on doing 30 hours at minimum wage. He wants to know what the implications would be and if it would be worth taking them on or would he be paying out too much. I take it he means employers NIC.
I've had a look on the hmrc website but can't seem to find anything.
Shaun has given the ER NIC cost but is the client currently an employer or will this be their first employee?
If first then there is a whole lot of employment law issues that they need to be aware off, as well as registering as an employer.
If they are already an employer then they should be aware of the above and may be they just need to know what the additonal costs over their wage will be.
assuming all other facts are correct resulting in 9656.40 per annum then that would be the amount paid if the employee worked a full year.
The holiday rates of pay probably need to be taken into account but as a basis figure that would be the maximum employers NI that would be paid in this instance.
If you come up with any additional facts post again and I'll give you the adjusted figure.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
