1. What is Employer NIC?

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, the rate is 15% on earnings above £12,570.

2. How Does the Calculator Work?

The calculator uses the Employer NIC formula:

Where:

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

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

3. Importance of Employer NIC Calculation

Details: Accurate Employer NIC calculation is essential for payroll processing, budgeting, and compliance with HMRC regulations. It helps employers understand their total employment costs.

4. Using the Calculator

Tips: Enter the employee's annual salary in GBP. The threshold and rate are pre-set for the 2025/26 tax year. Salary must be a positive value.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Employer NIC threshold?
A: For the 2025/26 tax year, the Employer NIC threshold is £12,570 per year.

Q2: What is the Employer NIC rate for 2025/26?
A: The standard Employer NIC rate is 15% for earnings above the threshold.

Q3: Are there any exemptions from Employer NIC?
A: Yes, there are exemptions for employees under 21, apprentices under 25, and veterans in their first year of civilian employment.

Q4: How often should Employer NIC be paid?
A: Employer NIC is typically paid monthly or quarterly through the PAYE system to HMRC.

Q5: Is Employer NIC deductible for corporation tax?
A: Yes, Employer NIC contributions are generally deductible expenses for corporation tax purposes.