1. What is Employer National Insurance?

Employer National Insurance is a tax paid by employers on their employees' earnings above the earnings threshold. For the 2025/26 tax year, the rate is 15% on earnings above £12,570.

2. How Does the Calculator Work?

The calculator uses the Employer NI formula:

Where:

• \( Salary \) — Employee's annual salary in GBP
• \( £12,570 \) — Annual earnings threshold for 2025/26
• \( 15\% \) — Employer National Insurance rate for 2025/26

Explanation: The calculation applies only to earnings above the threshold. If salary is below £12,570, no Employer NI is payable.

3. Importance of Employer NI Calculation

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

4. Using the Calculator

Tips: Enter the employee's annual salary in GBP. The calculator will automatically compute the Employer National Insurance contribution based on the 2025/26 rates and thresholds.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Employer NI threshold?
A: For the 2025/26 tax year, the threshold is £12,570 per year. This may change in future tax years.

Q2: Is Employer NI paid on all employee earnings?
A: No, Employer NI is only paid on earnings above the threshold. Earnings below £12,570 attract no Employer NI.

Q3: Are there different rates for different salary levels?
A: For Employer NI in 2025/26, there is a single rate of 15% applied to all earnings above the threshold.

Q4: How often is Employer NI paid?
A: Employer NI is typically paid monthly or quarterly to HMRC along with other payroll taxes.

Q5: Are there any exemptions from Employer NI?
A: Yes, certain categories of employees may be exempt, such as employees under 21, apprentices under 25, and armed forces veterans.