Hello,
I jumped into a PAYE role a couple of months ago, having now received my first payslip, I discovered that my agency is deducting employers NIC from my NET salary instead of GROSS.
e.g.
Gross Pay 11647.35
Employees NIC 554.61
Holiday 146.2
Tax 3616.6
Employers NIC 1506.32
Take Home 5823.62
So I am essentially paying tax on the employers NIC, which is surely incorrect? I believe the correct way should be to deduct the employers NIC from the gross salary and then tax the remainder, like so:
Gross Pay 11647.35
Employers NIC 1506.32
Taxable Pay 10141.03
Employees NIC 524.49
Holiday 146.2
Tax 3014.45
Take Home 6455.89
Could someone confirm if what they are doing is wrong? I assume it was a mistake in their calculations if so.
Thanks
I jumped into a PAYE role a couple of months ago, having now received my first payslip, I discovered that my agency is deducting employers NIC from my NET salary instead of GROSS.
e.g.
Gross Pay 11647.35
Employees NIC 554.61
Holiday 146.2
Tax 3616.6
Employers NIC 1506.32
Take Home 5823.62
So I am essentially paying tax on the employers NIC, which is surely incorrect? I believe the correct way should be to deduct the employers NIC from the gross salary and then tax the remainder, like so:
Gross Pay 11647.35
Employers NIC 1506.32
Taxable Pay 10141.03
Employees NIC 524.49
Holiday 146.2
Tax 3014.45
Take Home 6455.89
Could someone confirm if what they are doing is wrong? I assume it was a mistake in their calculations if so.
Thanks
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