1. What is Employer National Insurance?

Employer National Insurance is a tax paid by employers on their employees' earnings above a certain threshold. For the 2024/25 tax year, employers pay 13.8% on earnings above £9,100 per year.

2. How Does the Calculator Work?

The calculator uses the Employer NI formula:

Where:

• \( Earnings \) — Employee's gross earnings (GBP)
• \( £9,100 \) — Annual threshold for 2024/25 tax year
• \( 13.8\% \) — Employer National Insurance rate

Explanation: Employers only pay National Insurance on earnings above the £9,100 threshold. If earnings are below this amount, 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 UK tax legislation. It helps employers understand their total employment costs.

4. Using the Calculator

Tips: Enter the employee's gross earnings in GBP. The calculator will automatically compute the Employer National Insurance contribution due for the 2024/25 tax year.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Employer NI threshold?
A: For the 2024/25 tax year, the Employer NI threshold is £9,100 per year (£758 per month).

Q2: Is Employer NI paid on all employee earnings?
A: No, Employer NI is only paid on earnings above the £9,100 threshold. Earnings below this amount attract no Employer NI.

Q3: Are there different rates for different types of employees?
A: The standard rate is 13.8% for most employees. Some categories like apprentices under 25 and employees under 21 may have different rules.

Q4: How often should Employer NI be paid?
A: Employer NI is typically paid monthly or quarterly through the PAYE system, along with income tax and employee NI.

Q5: What happens if earnings fluctuate?
A: Employer NI is calculated each pay period. If earnings fall below the threshold in some periods, no NI is due for those periods.