Employers NIC Calc for 2022

[Heathmount]

Hi

I've got an Excel formula to calculate the employers NI deducted by the Umbrella which is Gross Amount / 112.8 * 12.8. This matches within a few pence the value on my payslip. With the 1.25% increase from next April is it just a case of changing the calculation to Gross Amount / 114.05 * 14.05? I'm playing around with pension contributions and would like to see the effect on my take home with different contributions. I got an illustration from my umbrella but would like to know the calculation so I can do it myself, only needs to be accurate to a few £s.

I'm still not entirely sure why this formula works seeing as the emploters NI rate is 13.8% and there's also a threshold allowance but it seems to work. I'm sure there was an explanation on here somewhere but I can't find it.

thanks
heathmount

[hobnob]

I also use Excel to verify the calculations on each payslip. The formula I use for Employer's NI is:
=ROUND(_AboveST2021*MAX(Q5-_ST2021,0),2)

In this case, Q5 is the cell with the "Earnings for NICs" on the payslip; it will change for each payslip, so adjust the row/column to match your file.

I also have a separate worksheet with some labelled cells, so that I don't have to repeat the literal values:
_ST2021 is the Secondary Threshold for 2021/2022 (i.e. £170).
_AboveST2021 is the employer rates above ST (i.e. 13.8%).

So, "Q5-_ST2021" shows how much I earned above the secondary threshold. I've used "MAX(Q5-_ST2021,0)" just to avoid negative values if I'm below the ST.
I then multiple the rate by that difference, and round off to 2 decimal places (i.e. pence). That's the employer's NI contribution.

I'll pull next year's figures off the gov.uk website a bit nearer to the time, but I'll probably define _ST2022 = 15.05%