When paying an employee, what is the cost to the employer?
You take the gross amount, plus the employers National Insurance. This is 12.8% of the gross annual wage less the National Insurance threshold of Â£5,715.
For example: If you were doing payments on a monthly basis and the gross monthly wage was Â£1,000 to your employee you would deduct Â£475 (this is calculated over a 12 month period) which gives you Â£525.
12.8% of Â£525 is Â£67.20. This is how much you as an employer would pay in National Insurance. As long as the salary is the same every month and is paid for the whole tax year.
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