1. What is Employer National Insurance?

Employer National Insurance Contributions (NIC) are payments that employers make based on their employees' earnings above a certain threshold. For the 2025/26 tax year, employers pay 15% on earnings above £175 per week.

2. How Does the Calculator Work?

The calculator uses the Employer NIC formula:

Where:

• \( Earnings \) — Employee's weekly earnings in GBP
• \( £175 \) — Weekly earnings threshold for 2025/26
• \( 15\% \) — Employer NIC rate for earnings above threshold

Explanation: Employers only pay National Insurance on earnings that exceed the weekly threshold of £175. No NIC is payable on earnings below this amount.

3. Importance of Employer NIC Calculation

Details: Accurate Employer NIC calculation is essential for payroll processing, budgeting, compliance with HMRC regulations, and avoiding penalties for underpayment.

4. Using the Calculator

Tips: Enter the employee's weekly earnings in GBP. The calculator will automatically compute the Employer NIC due. Earnings must be a positive number.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Employer NIC rate?
A: For the 2025/26 tax year, the Employer NIC rate is 15% on earnings above £175 per week.

Q2: Are there different thresholds for different pay periods?
A: Yes, while this calculator uses weekly figures, monthly and annual thresholds are also available. The weekly threshold of £175 equates to approximately £758 monthly and £9,100 annually.

Q3: Who is eligible for Employer NIC reductions?
A: Employers may be eligible for Employment Allowance, which reduces their NIC liability by up to £5,000 per year if they have multiple employees.

Q4: When are Employer NIC payments due?
A: Employer NIC is paid to HMRC along with PAYE tax and Employee NIC, usually by the 22nd of the following month if paying electronically.

Q5: What happens if earnings are below the threshold?
A: No Employer NIC is payable if weekly earnings are £175 or less. The calculation only applies to earnings above this threshold.