1. What is Employer National Insurance?

Employer National Insurance is a tax that UK employers pay on their employees' earnings above a certain threshold. For the 2025/26 tax year, the rate is 15% on earnings above £175 per week.

2. How Does the Calculator Work?

The calculator uses the Employer NI formula:

Where:

• \( \text{Salary} \) — Employee's salary or weekly wage (GBP)
• \( \text{Threshold} \) — Weekly threshold amount (£175 for 2025/26)
• \( 0.15 \) — Employer NI rate (15%)

Explanation: Employers only pay National Insurance on earnings above the weekly threshold. If salary is below the threshold, no Employer NI is due.

3. Importance of Employer NI Calculation

Details: Accurate Employer NI calculation is crucial for business budgeting, payroll processing, tax compliance, and understanding total employment costs.

4. Using the Calculator

Tips: Enter salary in GBP (can be weekly, monthly, or annual - ensure consistency with threshold), and the threshold amount. The calculator will compute the Employer NI contribution.

5. Frequently Asked Questions (FAQ)

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

Q2: Is there an upper limit for Employer NI?
A: No, unlike employee NI, Employer NI has no upper earnings limit and is payable on all earnings above the threshold.

Q3: How often is Employer NI paid?
A: Employer NI is typically paid to HMRC monthly or quarterly through the PAYE system.

Q4: Are there any Employer NI allowances or reductions?
A: Yes, the Employment Allowance may reduce Employer NI liability for eligible businesses (up to £5,000 annually for 2025/26).

Q5: What happens if salary is below the threshold?
A: No Employer NI is payable if the employee's earnings are below the weekly threshold of £175.