Employers pay 12.8% NIC (increasing to 13.8% from April 2011) on all remuneration paid to non-contracted out employees above the contributions threshold. There is no upper limit to earnings and no age limit.
Where employees are contracted out, the employer’s NIC rate is reduced for earnings between the contributions threshold and the upper accrual point (£770 a week). The reduction is 3.7% where employees are members of salary-related pensions occupational schemes and 1.4% for money-purchase occupational schemes.
Employers also have to pay 12.8% NIC on all taxable benefits in kind provided to employees.Last Updated
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04: Employers
The FSA does not regulate tax advice. Tax rules are subject to change.
