Employers NI

[toooldforthisshite]

A bit of a dull post, but can someone tell me if all employers need to pay their employees, Employers NI?

Not quite sure what you mean. Employers' NI needs to be paid to HMRC each month along with any income tax deducted from employees' pay.

Employers pay the government Employer NI, it’s not for employees.

Also the employees NI that's deducted from pay gets paid over at the same time. If the employer goes bust HMRC are a preferential creditor meaning any money owed to them would be paid before other creditors

It's not really 'their enployees' Employers NI - there's a clue in the name. The employee has no liability for it even if the employer fails to pay it.

As above - the employer pays it to HMRC assuming that the employee earns above the threshold

But employers can offset the liability against their employment allowance - for a lot of small employers it will mean they don’t pay anything

www.gov.uk/claim-employment-allowance

Also - employers get a 5k annual allowance towards this. So they don’t start paying it usually until their ER NI bill comes in at more than £5k.

Thanks for the clarification. I think I was confused as all my previous employers showed this on my payslip but this new employer doesn’t show it.
they weren’t even giving me payslips until I asked for them.

Employers NI is a tax on payroll. It kicks in above a threshold ( that I cba to look up right now) and is paid monthly to HMRC by the employer together with the employee deductions of PAYE, employees Ni and student loan deductions. Employers get a £5k per year allowance towards their Eer Ni bill (providing it's their only PAYE scheme). They don't get this on subsequent schemes for other businesses

Your payslip should show your gross income and then deductions for income tax and you're employees NI contributions. (Then any other deductions if applicable e.g. health insurance). Then leaving you your net pay.

Sounds weird if they weren't even going to give you a pay slip so you should definitely query. Also I don't know if you can check, but try and check they are paying their employers NI contributions for you.
Perhaps another poster can advise if this is possible to do.

@Lochroy thats exactly why I’m a little suspicious, Im not sure they are paying it as there is a zero on this part of the slip. If there is a way to check this myself it would be helpful.
Also, holiday pay- I don’t get paid this but again previous employer gave an extra £1 per hour (shown separately on payslip) towards ‘holiday entitlement’ I was under impression any employee was entitled to holiday pay in some form or another?

This looks odd, you should be able to check with HMRC.

In most cases you wouldn’t get holiday pay, you’d just get days off from your holiday entitlement (which is minimum 28 days including public holidays, but can be more) I’ve only ever seen holiday actually paid when someone leaves without using what they’re entitled to and are paid out for it instead

Are you working through an umbrella company/external payroll service? That would explain why you aren’t receiving holiday pay and why the employer’s NI is being deducted from your daily rate.

Put another way, were you ‘self-employed’ until the tightening of the IR35 rules in April 2021? Did you, and do you, charge a day rate for the work you do, and are you working as a temp or contractor?

@Iamthewombat no I’m employed direct through them. It’s equivalent to zero hours contract but I work set days and set hours so not a true zero hours contract.

Check in your personal tax account online that your employer is making RTI submissions for all the payments they make to you. As long as their RTI submissions are correct then the rest of it is HMRC's problem.

The holiday pay is another issue though. Everyone's entitled to paid holidays, although there's no requirement for the entitlement to be shown as accrued hours on a payslip.

Our software never used to show the employers NI only tax and employees. We changed payroll and it shows it now so it may just be that.

If they are paying your income taxes to HMRC they cant get out of paying employers NI however, there is upto 5k annual allowance.

Out of interest do you have a workplace pension?

@Brighteyedtriangle No work place pension.
there’s a section on payslip for employers NI but it’s showing a zero entry.

Do you have a contract? Does this mention holiday pay?

Some payslips show employers NI but this is the employers responsibility and you will never be liable for it, nor will it affect any future claims to pension.

As for holiday pay, either you get a certain number of paid days of holiday per year or your hourly pay includes an amount related to holiday. If you are weekly or monthly paid, you are more likely to have paid holiday entitlement rather than an hourly pay uplift.

@toooldforthisshite how much do you earn? Employers NI only kicks in after around £800 a month, so if you’re earnings are under that then there will be no NI, no pension requirements.

you should get holiday allowances yes.

@ChateauMargaux how does it not affect future pension if they are not paying it?

What deductions are showing on your payslip? Are you paying tax, for instance?
What tax code is shown on your payslip?
You say this is a new employer - do you have a contract? How long have you been there?

@Gazelda I’ve been there 2 months. No deductions are showing on slip. Just the amount they have transferred to me. I don’t earn enough to pay tax.

If you don't earn enough to pay tax then you probably don't earn enough to pay NI. And depending on how much you earn. (and your age) there may be no employer NI due either.

Employer NI contributions don't count towards your future state pension. You get an automatic NI credit towards your pension entitlement if you earn over £500-and-something in a month anyway. That's less than the rate at which both employee and employer contributions are payable.

I’ve never had a payslip that shows employers’ NI or employers’ pension contributions, it shows my gross, deductions for ees NICS, pension and PAYE, and net.

I think what’s throwing me is my previous job was same money almost same hours etc just a different t role in a different place of work and the employers NI was shown and I was of the understanding was that it went towards pension contribution.