Earnings threshold for employer NI contributions

ForumUser7

Hi, what is the threshold for employer NI contributions please? I currently don’t have to pay tax as a low earner, but am wondering if they should be still be paying NI? Thank you

chrisbur

175 a week 758 a month

ForumUser7

chrisbur said:

175 a week 758 a month

I’m hourly paid - so what if for example I earn 200 one week, then let’s say 100 a week for the next 3 so 500 total. Would they pay NI contributions for 1 week, or not at all please?

chrisbur

ForumUser7 said:

chrisbur said:

175 a week 758 a month

I’m hourly paid - so what if for example I earn 200 one week, then let’s say 100 a week for the next 3 so 500 total. Would they pay NI contributions for 1 week, or not at all please?

National insurance is based on the payment made in the appropriate pay period.  So if paid weekly the amount due  is based on the gross for that week.
In your example there would be ers NI due on the £200 and none due on the following three £100s.

There are a few exceptions to this but they relate to when a pay period includes more than one payment eg.  holiday paid in advance or a late payment due to being a new employee or payroll not getting details on time.

ForumUser7

chrisbur said:

ForumUser7 said:

chrisbur said:

175 a week 758 a month

I’m hourly paid - so what if for example I earn 200 one week, then let’s say 100 a week for the next 3 so 500 total. Would they pay NI contributions for 1 week, or not at all please?

National insurance is based on the payment made in the appropriate pay period.  So if paid weekly the amount due  is based on the gross for that week.
In your example there would be ers NI due on the £200 and none due on the following three £100s.

There are a few exceptions to this but they relate to when a pay period includes more than one payment eg.  holiday paid in advance or a late payment due to being a new employee or payroll not getting details on time.

I'm paid monthly, fill out a timecard each week with my hours logged, and then am paid once per month. So if in a month I earned 200 100 100 100 totalling 500, would any employers NI contributions be due please?

Marcon

ForumUser7 said:

chrisbur said:

ForumUser7 said:

chrisbur said:

175 a week 758 a month

I’m hourly paid - so what if for example I earn 200 one week, then let’s say 100 a week for the next 3 so 500 total. Would they pay NI contributions for 1 week, or not at all please?

National insurance is based on the payment made in the appropriate pay period.  So if paid weekly the amount due  is based on the gross for that week.
In your example there would be ers NI due on the £200 and none due on the following three £100s.

There are a few exceptions to this but they relate to when a pay period includes more than one payment eg.  holiday paid in advance or a late payment due to being a new employee or payroll not getting details on time.

I'm paid monthly, fill out a timecard each week with my hours logged, and then am paid once per month. So if in a month I earned 200 100 100 100 totalling 500, would any employers NI contributions be due please?

If you're paid monthly (your 'pay period'), then any NI would be based on the earnings for each individual month.
Rates are here: https://www.gov.uk/national-insurance-rates-letters

Assuming you are 'category A', then neither you, nor your employer, would pay NI on earnings of £500 in a month.

ForumUser7

Marcon said:

ForumUser7 said:

chrisbur said:

ForumUser7 said:

chrisbur said:

175 a week 758 a month

I’m hourly paid - so what if for example I earn 200 one week, then let’s say 100 a week for the next 3 so 500 total. Would they pay NI contributions for 1 week, or not at all please?

National insurance is based on the payment made in the appropriate pay period.  So if paid weekly the amount due  is based on the gross for that week.
In your example there would be ers NI due on the £200 and none due on the following three £100s.

There are a few exceptions to this but they relate to when a pay period includes more than one payment eg.  holiday paid in advance or a late payment due to being a new employee or payroll not getting details on time.

I'm paid monthly, fill out a timecard each week with my hours logged, and then am paid once per month. So if in a month I earned 200 100 100 100 totalling 500, would any employers NI contributions be due please?

If you're paid monthly (your 'pay period'), then any NI would be based on the earnings for each individual month.
Rates are here: https://www.gov.uk/national-insurance-rates-letters

Assuming you are 'category A', then neither you, nor your employer, would pay NI on earnings of £500 in a month.

I think I'm category M as I'm under 21.

Thanks for that link - that's really helpful. My weekly earnings are capped at £202.35 (maximum hours cap). Therefore (I think) there will be £0 NI payments for either myself or the employer even if I earn the full amount per week? Is that correct please?

molerat

You pay NI above £242 pw / £1048 pm.  You would be credited with NI above £123 pw / £533 pm which is important for state pension and some benefit purposes.

ForumUser7

molerat said:

You pay NI above £242 pw / £1048 pm.  You would be credited with NI above £123 pw / £533 pm which is important for state pension and some benefit purposes.

The table seems to suggest that I would be credited with 0% though on my earnings. Unless I've misunderstood something

molerat

ForumUser7 said:

molerat said:

You pay NI above £242 pw / £1048 pm.  You would be credited with NI above £123 pw / £533 pm which is important for state pension and some benefit purposes.

The table seems to suggest that I would be credited with 0% though on my earnings. Unless I've misunderstood something

NI credits work in weeks, there is no amount to them, and you need 52 weeks for a full year to count towards the state pension and some benefits.  If you earn above those amounts you get a credit without paying.

ForumUser7

With NI, are weeks done individually please? I.e. earning over 242 in one week means NI is due for that week, regardless of how much we’ll have earned across the year? Or is it the case that, should we earn less than 12570 across the year, NI taken in that year would be refunded at the end of the year? This is the key bit that I can’t get my head around, and it could just be that tax and NI function differently when it comes to this.

Example

Week 1, we earn 400.

Weeks 2-52 we earn 100.

(51*200) + (1*400) = £10,600.

Therefore, what if any income tax would be due, and what if any NI would be due please? I've got it down to the following 2 options

1. No Income Tax and no NI
2. No Income Tax, and £12.64 NI (from week 1)

Thank you