Originally posted by Wanderer
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Reply to: How To Calculate Employers NI
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Previously on "How To Calculate Employers NI"
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Originally posted by ASB View PostThe employers NI rate above the secondary threshold is 13.8%
The threshold is £136 per week/ £589 per month/ £7072 per year.
So:-
g = gross amount (pay including er's NI)
s = salary
Then:-
(s-t) * .138 = ERNI
g = s + ERNI
We want to calculate ERNI from g, by substitution reduces to:-
erni = ((g-t) * .138) / 1.138
By example s = 336 (200 ni = 27.6). g = 363.60. From above:-
(363.6 - 136) = 227.6 * .138 = 31.4088 / 1.138 = 27.6
qed. But this is not valid for the case where s < t since erni always 0
As to how you derive g from your rate and the brolly charges that will depend upon your contract. But generally I would expect this to simply be your rate less their charge.
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Originally posted by Wary View PostThanks for the link.
Yes, I did look at a couple of calculators & have looked at the umbrella one on your link. These all seem to be annualised whereas what I really want is one for a specific month only. i.e. I enter the income for the specific month, the specific deductions & the PAYE code, and hey presto it tells me my employers NI etc ...
Better still, I'd like to know what exactly the calculation is myself. When presented with a set of figures such as on a payslip, I always like to know how everything is drived and it bothers me if I can't understand or reconcile everything.
The threshold is £136 per week/ £589 per month/ £7072 per year.
So:-
g = gross amount (pay including er's NI)
s = salary
Then:-
(s-t) * .138 = ERNI
g = s + ERNI
We want to calculate ERNI from g, by substitution reduces to:-
erni = ((g-t) * .138) / 1.138
By example s = 336 (200 ni = 27.6). g = 363.60. From above:-
(363.6 - 136) = 227.6 * .138 = 31.4088 / 1.138 = 27.6
qed. But this is not valid for the case where s < t since erni always 0
As to how you derive g from your rate and the brolly charges that will depend upon your contract. But generally I would expect this to simply be your rate less their charge.
Leave a comment:
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Originally posted by Wanderer View PostHave you tried using one of the many calculators available on the web? They should give you a detailed breakdown of what taxes you are paying.
Umbrellas are confusing though, they seem to want to obfuscate the amount they are paying you for some reason. Don't trust any calculator on an umbrella's website.
Yes, I did look at a couple of calculators & have looked at the umbrella one on your link. These all seem to be annualised whereas what I really want is one for a specific month only. i.e. I enter the income for the specific month, the specific deductions & the PAYE code, and hey presto it tells me my employers NI etc ...
Better still, I'd like to know what exactly the calculation is myself. When presented with a set of figures such as on a payslip, I always like to know how everything is drived and it bothers me if I can't understand or reconcile everything.
Leave a comment:
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Originally posted by Wary View PostPlease can someone verify how to calculate Employers NI?
Umbrellas are confusing though, they seem to want to obfuscate the amount they are paying you for some reason. Don't trust any calculator on an umbrella's website.
Good luck!
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How To Calculate Employers NI
I'm with a brolly which means that all of my income will be treated a salary post deductions. Please can someone verify how to calculate Employers NI?
I believe the first step is to deduct all fees, expenses, pension contributions ...
I believe the rate is 13.8%. However, I don't think it is a case of taking 13.8% of the post-deductions amount, but rather performing a calculation so it works out to be 13.8% of the derived gross salary - correct? But I'm not sure that it's that simple either as I heard there is some £200 threshold although I'm not sure how to factor that in.
Any clarification would be appreciated.Tags: None
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