1. What is NI Cost To Employer?

The NI Cost To Employer calculator estimates the National Insurance contribution that UK employers must pay for their employees based on salary above the threshold. This calculation is essential for payroll management and budgeting for the 2025/26 tax year.

2. How Does the Calculator Work?

The calculator uses the NI cost formula:

Where:

• \( Salary \) — Employee's weekly salary in GBP
• \( Threshold \) — Weekly NI threshold (£175 for 2025/26)
• \( 0.15 \) — Employer NI contribution rate (15%)

Explanation: The calculation applies only to earnings above the weekly threshold at the standard employer NI rate of 15%.

3. Importance of NI Cost Calculation

Details: Accurate NI cost calculation is crucial for employers to budget correctly, ensure compliance with HMRC regulations, and understand the true cost of employment beyond basic salary.

4. Using the Calculator

Tips: Enter the employee's weekly salary in GBP and the applicable threshold (default is £175/week for 2025/26). The calculator will compute the employer's NI contribution cost.

5. Frequently Asked Questions (FAQ)

Q1: What is the current employer NI rate?
A: For the 2025/26 tax year, the standard employer NI rate is 15% on earnings above the weekly threshold.

Q2: Is the threshold the same for all employees?
A: The £175/week threshold applies to most employees, but there are different thresholds for apprentices and employees under 21.

Q3: How often should NI be paid?
A: Employer NI contributions are typically paid monthly to HMRC through the PAYE system along with income tax.

Q4: Are there any reductions available?
A: Employers may qualify for Employment Allowance which reduces their NI liability, subject to eligibility criteria.

Q5: What happens if salary is below threshold?
A: If an employee's weekly salary is below the £175 threshold, no employer NI contributions are due for that period.