Employers National Insurance

[WakeUpFromYourDreamAndScream]

Hello

My DH has just started working in a permanent role after being an agency worker for a long time. He's got his first pay slip and in the deductions there is his NI, his tax and then a deduction for ' employers NI'

Can anyone tell me what it's for? I've tried to google but haven't found any answers.

Thanks

Hopeful bump?

Are you sure it's another deduction and not just the amount showing the employer has paid? Our payslips show the employer contribution amounts along with the employees deduction.

Ours shows how the employer has contributed as well, it’s actually not taken off the wage though. Just there for reference

The employers NI shouldn't actually be deducted from his salary (add up the figures and see), it is an amount the employer has to pay to HMRC on top of the PAYE and employee NI which they deduct from his gross salary and pay over to HMRC.

That should not affect his net pay but is the employer's payment direct to hmrc.

Employers NI isn't deducted from his wage, it's the on-cost paid by employers to HMRC when they employ people. It varies according to salary level. If you add up the other decuctions (tax, employee NI, pension, student loan, childcare vouchers and anything else) then take that away from his gross salary, you'll get the net amount that he has received. Employer NI isn't part of that calculation.
Hope that helps

I must be a slow typer!

Is it in the construction industry? Supply teacher?

Is he paid directly by his employer or is there an umbrella company involved?

As the name suggests, employers should pay employers NI, but there's various shady dealings in certain industries who have all sorts of ruses to push this cost onto the employee.

Absolutely disgusting in my opinion and I'd also be asking questions about what other responsibilities, namely sick and holiday pay, that they're trying to dodge, and also payment of tax (by them, not your DH, who is probably just trying to earn an honest wage, but it's hard to do in certain sectors).

Oh god I'm an idiot! Thank you everyone for explaining - you're right it hasn't been deducted from his gross I just didn't look at it properly, phew!

Thanks again

@BarbaraofSevillle he's employed directly now by a large company but has been an agency worker in the past for a long time and you're right, the stuff they try and get away with regarding charges and deductions is shameful, hopefully he'll never have to work through one again, I don't know how they are allowed to get away with what they do

Oh, glad that it's all OK, I started off on a bit of a rant before I saw the other replies .