NIC Contributions

[nick0]

Hi Please can you help me out?

What do these figures mean on the payslip & how were they calculated?

NIable 11485.21
Gross Pay 13109.21
NI 825.51
Ers NI 960.83
Total Taxpy 13109.21
Total Tax 1708.63

Any comments appreciated.
Thanks

[GILL]

:shock: All the below are to date figures

NIable - earnings liable for NI contr'
Gross Pay - total gross pay
NI - NI contributions deducted from employees gross pay
Ers NI - NI contributions paid by the employer
Total Taxpy - earnings liable to tax
Total Tax - tax deducted from employees gross pay

Both tax and NI have 'band widths'

NI earnings
1) below lower earnings limit are not subject to NI contributions and employee does not qualify for benefits such as SSP.
2) Between lower earnings limit and the earnings threshold earnings are not liable for NI but you qualify for benefits.
3) Above earnings threshold and below upper earnings limit employee pays 11% and employer 12.8% of earnings
4) Above upper earnings limit employee pays 1% and employer 12.8% of earnings

Taxable earnings
1) employee has an amount of freepay below which they do not pay any tax.
2) the next £2,090 of earnings are taxed at 10%
3) the next £30,310 at 22%
4) anything over that (I wish) is taxed at 40%

:shock:

[nick0]

Hi Gill, Thanks for the reply. Is it possibile to figure out how the above figures were arrived at?
Nick

[TLG]

Try looking at the thread you started on the Student General Forum where people are answering the same things that you asked there.

http://www.aat.org.uk/forums/posts/list/10937.page

Generally, it is good manners to post your question on just one forum. :wink: