weekly - monthly pay

System

chrisbur wrote: »

We are talking about national insurance not tax. NI is based on thresholds which are decided by your pay interval.

The NI thresholds are based on an annual allowance:

http://www.hmrc.gov.uk/payerti/forms-updates/rates-thresholds.htm

The Lower earning limit is £5,772

£5,772/12 = £481 which is the monthly limit

£5,772/52 = £111 which is the weekly limit

I would be careful of going to an employer and complaining on the basis of overpaying NI due to changes in frequency of pay as this is not the case and the employer would reject this argument.

Simon_Stir

Walcott wrote: »

The NI thresholds are based on an annual allowance:


The Lower earning limit is £5,772

£5,772/12 = £481 which is the monthly limit

£5,772/52 = £111 which is the weekly limit

I would be careful of going to an employer and complaining on the basis of overpaying NI due to changes in frequency of pay as this is not the case and the employer would reject this argument.

All be it what you say is true, There will of course be 12 monthly payments but 4 months will have 5 weeks pay in them.


The lower earning limits are not the key figures here, The figures that we need to be looking at are,


£153.00
£663.00
£7956.00


for example:
£153 & £663,
These are the two figures we need concern ourselves with seeing as they proposed switch is weekly-monthly. I may earn up to anyone of these amounts per week/month NI free. The issue is, at 6.70 @ 24 hours = 160.80 - 153.0 leaves 94p NI a week, £48 a year. But over a month it works out to be 643.20 for 8 months and 804.00 for 4 months. Its the 804.00 for four months that really upsets the apple cart £804-£663 = £141 = 16.92 NI per month for 4 months that = 67.68 per year per person, leaving the 32hour a week working 19.68p a year worse off. When you also included the lost interest per year anyone working 32hour week is due to lose during this switch over, As is others but the peeps on 4 day weeks the most.

chrisbur

Walcott wrote: »

The NI thresholds are based on an annual allowance:

http://www.hmrc.gov.uk/payerti/forms-updates/rates-thresholds.htm

The Lower earning limit is £5,772

£5,772/12 = £481 which is the monthly limit

£5,772/52 = £111 which is the weekly limit

I would be careful of going to an employer and complaining on the basis of overpaying NI due to changes in frequency of pay as this is not the case and the employer would reject this argument.

There are as you say annual, monthly and weekly figures which are proportionate to each other. The employer then uses whichever of these three is appropriate to work out the NI that is due for that earnings period. That is the end of the matter there is no recalculation or refund except in very special cases non of which apply here. If you look back over this forum you will find many posters who are annoyed that they have paid NI for a part year and cannot get a refund as they would with tax and also several who have paid less NI due to getting a lump sum bonus than they would if that bonus had been spread out over the year.
There are several ways in which the total NI can be more or less depending on whether you are paid weekly, every two weeks, every four weeks or monthly.

System

Simon_Stir wrote: »

All be it what you say is true, There will of course be 12 monthly payments but 4 months will have 5 weeks pay in them.


The lower earning limits are not the key figures here, The figures that we need to be looking at are,


£153.00
£663.00
£7956.00


for example:
£153 & £663,
These are the two figures we need concern ourselves with seeing as they proposed switch is weekly-monthly. I may earn up to anyone of these amounts per week/month NI free. The issue is, at 6.70 @ 24 hours = 160.80 - 153.0 leaves 94p NI a week, £48 a year. But over a month it works out to be 643.20 for 8 months and 804.00 for 4 months. Its the 804.00 for four months that really upsets the apple cart £804-£663 = £141 = 16.92 NI per month for 4 months that = 67.68 per year per person, leaving the 32hour a week working 19.68p a year worse off. When you also included the lost interest per year anyone working 32hour week is due to lose during this switch over, As is others but the peeps on 4 day weeks the most.

I understand your point regarding the interest however you need to rework your calculation. You don't get paid in weeks. You get paid in months. If you get paid on the same day every month then that has nothing to do with actual weeks.

E.g. If you get paid on the last day of the month - in Jan 2014 you will have been paid for 23 days and Feb 2014 for 20 days and March 2014 21 etc.

I've done a quick calculation based on £6.70 and 24 hours per week and the highest you are ever paid is £739.68 (Jan, Jul, Oct, Dec) and the lowest is £643.20 (Feb).


Edit: Just one thing - working days above were calculated as a 5 day week. But assuming the salary remains at your number then this can be more or less without the calculation altering.

gingerdad

Moutian out of a mole hill seems to apply here. I think you are trying to make an issue out of nothing and without all the facts.

you should work out any better or worse off going monthly paid and unless you wayne rooney i don't think loosing interest will amount to more than p's

chrisbur

Walcott wrote: »

I understand your point regarding the interest however you need to rework your calculation. You don't get paid in weeks. You get paid in months. If you get paid on the same day every month then that has nothing to do with actual weeks.

E.g. If you get paid on the last day of the month - in Jan 2014 you will have been paid for 23 days and Feb 2014 for 20 days and March 2014 21 etc.

I've done a quick calculation based on £6.70 and 24 hours per week and the highest you are ever paid is £739.68 (Jan, Jul, Oct, Dec) and the lowest is £643.20 (Feb).


Edit: Just one thing - working days above were calculated as a 5 day week. But assuming the salary remains at your number then this can be more or less without the calculation altering.

Problem is this is not what the employer proposes to do. They are going to pay monthly and each month will consist of either four weeks' pay or five weeks' pay.

tomtontom

How long have you worked for your employer, and how much will you personally be out of pocket? Is this worth losing your job over?

Simon_Stir

Walcott wrote: »

I understand your point regarding the interest however you need to rework your calculation. You don't get paid in weeks. You get paid in months. If you get paid on the same day every month then that has nothing to do with actual weeks.

E.g. If you get paid on the last day of the month - in Jan 2014 you will have been paid for 23 days and Feb 2014 for 20 days and March 2014 21 etc.

I've done a quick calculation based on £6.70 and 24 hours per week and the highest you are ever paid is £739.68 (Jan, Jul, Oct, Dec) and the lowest is £643.20 (Feb).


Edit: Just one thing - working days above were calculated as a 5 day week. But assuming the salary remains at your number then this can be more or less without the calculation altering.

I have no idea what button I hit but everything just deleted, Im not typing it again, But one working month as an example to you starts on April the 17th Friday 2015... that pay month ends on the 21st of may, That month will be 5 weeks long in length (35days) and consist of 15 working day... June-July 2015 is the same, so is sep-oct 2015 and dec-jan 2015/2016 (just so you know its not a one off)

Simon_Stir

gingerdad wrote: »

Moutian out of a mole hill seems to apply here. I think you are trying to make an issue out of nothing and without all the facts.

you should work out any better or worse off going monthly paid and unless you wayne rooney i don't think loosing interest will amount to more than p's

Your entitled to your opinion but I assure you I do have the facts. If you wish to dispute that please grab a calculator find out all the info from HMRC and get back to me on it.

Simon_Stir

tomtontom wrote: »

How long have you worked for your employer, and how much will you personally be out of pocket? Is this worth losing your job over?

Not long enough. No its no worth losing my job over, I wouldn't push it that far anyway. I more disappointed in the company for standing there and saying things like "Some of you may well be better of because of it" and "most of our staff will pay less NI" In some cases the later is true, But they are counting on most people just nodding their head in agreement and not taking the time to think, To me that is disgusting behaviour.