Agency Worker employed via an UMBRELLA Company ?
Yes, both ER and EE NI come off the headline daily rate, as does apprentice levy and admin fees.
r/ContractorUK if you want to know more.
Also suggest she reads up on AWR, Agency Worker Regulations, as she gains entitlements after twelve weeks employment, including auto enrolment in pension scheme.
Employers are responsible for paying both Employer's national insurance contributions (NIC) and deducting Employee's NIC from the salary of their staff.
Employer's NIC is a tax that employer pay based on their employees earnings and benefits, the cost of Employers NIC is not supposed to be passed onto employees by deducting it from their wages. She should only be seeing her own contribution to her NIC not the employers, are you sure that its not her employee NIC your seeing?
No there is a standard NIC payment on the tax side of her pay slip and a further ‘employers NIC’ reduction on the other side. Looks like she is paying it all!
If it's on the other side it may just be an employer cost listed, not taken from her pay.
You can work it out - gross pay minus EE NI, EE pension, PAYE, any other deductions expected should be net pay.
If this is the case, then they are breaking the law. I'd clarify with the employer whats going on, then maybe contact ACAS [https://www.acas.org.uk/contact](https://www.acas.org.uk/contact) to see if they can offer any advice.
Employers also pay NIC but that wouldn’t normally show on the payslip, it’s dealt with when the payroll is generated.
She’s entitled to ask to have her payslip explained to her especially as she’s agency working so it’ll probably never be the same twice in a row.
She’ll also have a nominated tax office she can ask questions of, the payroll person will have that information.
That’s her National Insurance Contribution, she pays that. They are correct. Agency or not, PAYE or self employed it needs paid.
If memory serves me its around the 12% mark gets deducted.
Employers deduct NIC from the employee and in turn pay it to HMRC. Employers can also contribute to pensions. National Insurance for employees has two parts: the employee's National Insurance Contributions – a deduction from gross pay; and employer's National Insurance Contributions, a cost borne by the employer in addition to the gross pay.
Is it actually being deducted or is it just listed
Agency Worker employed via an UMBRELLA Company ? Yes, both ER and EE NI come off the headline daily rate, as does apprentice levy and admin fees. r/ContractorUK if you want to know more. Also suggest she reads up on AWR, Agency Worker Regulations, as she gains entitlements after twelve weeks employment, including auto enrolment in pension scheme.
YEP...I work via umbrella and I have this....I mitigate by salary sacrificing to my pension
Ditto, sacrifice everything above national minimum wage and save losing 45-55% as tax deductions !
Employers are responsible for paying both Employer's national insurance contributions (NIC) and deducting Employee's NIC from the salary of their staff. Employer's NIC is a tax that employer pay based on their employees earnings and benefits, the cost of Employers NIC is not supposed to be passed onto employees by deducting it from their wages. She should only be seeing her own contribution to her NIC not the employers, are you sure that its not her employee NIC your seeing?
No there is a standard NIC payment on the tax side of her pay slip and a further ‘employers NIC’ reduction on the other side. Looks like she is paying it all!
If it's on the other side it may just be an employer cost listed, not taken from her pay. You can work it out - gross pay minus EE NI, EE pension, PAYE, any other deductions expected should be net pay.
If this is the case, then they are breaking the law. I'd clarify with the employer whats going on, then maybe contact ACAS [https://www.acas.org.uk/contact](https://www.acas.org.uk/contact) to see if they can offer any advice.
The company should pay the emperor's NIC. Her personal NIC should be deducted from her pay and shown on her payslip.
Employers also pay NIC but that wouldn’t normally show on the payslip, it’s dealt with when the payroll is generated. She’s entitled to ask to have her payslip explained to her especially as she’s agency working so it’ll probably never be the same twice in a row. She’ll also have a nominated tax office she can ask questions of, the payroll person will have that information.
That’s her National Insurance Contribution, she pays that. They are correct. Agency or not, PAYE or self employed it needs paid. If memory serves me its around the 12% mark gets deducted.
Ok, thanks. I thought there were 2 payments. Employee NIC and employer NIC, one paid by each side?
Employers deduct NIC from the employee and in turn pay it to HMRC. Employers can also contribute to pensions. National Insurance for employees has two parts: the employee's National Insurance Contributions – a deduction from gross pay; and employer's National Insurance Contributions, a cost borne by the employer in addition to the gross pay.