1. What is Employer National Insurance?

Employer National Insurance is a tax that UK employers pay on their employees' earnings above a certain threshold. It's calculated at 13.8% on earnings above the secondary threshold and is separate from employee National Insurance contributions.

2. How Does the Calculator Work?

The calculator uses the Employer NI formula:

Where:

• \( \text{Earnings} \) — Employee's gross earnings (GBP)
• \( \text{Threshold} \) — Secondary threshold for Employer NI (GBP)
• \( 13.8\% \) — Current Employer NI rate

Explanation: The calculation only applies to earnings above the threshold. If earnings are below the threshold, no Employer NI is due.

3. Importance of Employer NI Calculation

Details: Accurate Employer NI calculation is essential for payroll processing, budgeting, and compliance with HMRC regulations. It represents a significant employment cost for businesses.

4. Using the Calculator

Tips: Enter employee's gross earnings and the current secondary threshold. Both values must be positive numbers. The calculator will compute the Employer NI contribution due.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Employer NI rate?
A: The current rate is 13.8% on earnings above the secondary threshold, though rates can change in government budgets.

Q2: What is the secondary threshold for 2024/25?
A: The secondary threshold varies each tax year. Check HMRC's latest guidelines for current thresholds.

Q3: Are there any exemptions from Employer NI?
A: Yes, certain categories of employees may be exempt, such as apprentices under 25 and employees under 21, subject to specific conditions.

Q4: How often is Employer NI paid?
A: Employer NI is typically paid to HMRC monthly or quarterly along with PAYE tax and employee NI contributions.

Q5: Can Employer NI be reclaimed?
A: In some cases, employers may be eligible for Employment Allowance which can reduce their Employer NI liability.