Employers NI
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Employers NI

Employers are liable to pay Employers NI - (Employer’s National Insurance Contributions (NICs) for all permanent staff on their payroll.

When working via a third-party payroll provider, Employer NIC is still paid on the workers assignment income. Therefore the rate offered to the worker will be adjusted to reflect this.

It is important to take this into consideration when negotiating pay rates with agencies and end clients. For example if you accepted the same rate when a member of staff you would take home less money due to the Employers NICs being added to the deductions.

Employer’s NIC’s stands at 13.8% only levied on earnings above 156 per week and is uncapped. So not taking into consideration any expense claims this is percentage increase you would need to negotiate in order to ensure the rate was comparable to that of the permanent rate.

Eg.

Permanent Hourly Rate - £25

Contractor Hourly Rate - £28.45