On this page you will find an online calculator that allows you to calculate the Employers National Insurance (NI) Contributions for several employees in Scotland. In addition, we have provided detailed Employer NI information and Employer NI Frequently Asked Questions (FAQ). Our aim being twofold, firstly to provide a comprehensive free tool for the calculation of Employer NI online and secondly, to provide the latest NI information, NI rates, NI thresholds and NI allowances for employers in 2023.
The Employer NI Calculator below has a simple interface that we hope should be fairly intuitive for those who have employees and are familiar with produce cost calculations and forecasts. If you are unsure about some of the inputs on the Employer NI Calculator, please review the guide below which covers how to calculate employer NI for several employees.
The Employer NI Calculator is designed to be intuitive, but we feel it is always useful to have a step-by-step guide to using the calculator to ensure you, the user, get the most out of this tool and the best experience whilst using iCalculator. We will start by covering a step by step process for using the Employer NI Calculator as most employers will already be familiar with the basics of National Insurance Contributions. After reviewing the steps required to calculator employer NIC's, we cover employer NI FAQ and provide information on rates, thresholds and allowances. We also provide some links to other employer calculators and tools which we feel you may also find useful.
Note: You can calculate the employer national insurance contributions for one employee, simply by setting the number of employees to one, the remainder of the steps are the same.
This calculator is designed to provide a quick overview of employer NI costs in Scotland, for detailed employee costs we suggest you use our tax and NI calculator for employers which allows individual tax codes and NI categorisation selection, you can also use the tax and NI calculator for employers to calculate self-employed NI contributions. This calculator:
Whether you have been an employer for several years or are a new employer, it is important to have a good level of knowledge regarding your national insurance legal commitments as an employer. It is also your responsibility as an employer to maintain knowledge of current Scottish legislation and changes affecting national insurance and social security in general. This can seem a burden at times and, if you are a new employer, yet another task to add to your already growing list. The good news is that iCalculator maintains this page with the latest employer NI information and updates it as changes to rates and thresholds are announced. This means our Employer NI Calculator always uses the latest rates and allowances, so you have peace of mind. We recommend you bookmark this page for future reference so you can refer to the information whenever you need to refresh your memory on Employer NI commitments or check on the latest NI Rates. You can of course continue to use the Employer NI Calculator to produce annual employment costs from an NI Perspective and as a forecasting tool in the interim.
Employer NI calculations and legislation is fairly straightforward but there are a number of elements therein which change periodically and affect the overall employer NI calculation and costs. Let's look at the FAQ we receive in regard to employer NI, we have listed the questions in an order which we hope helps to build/consolidate your knowledge of National Insurance from an employer's perspective.
Employer National Insurance Contributions (also referred to as Employer NI, ENIC's, Employer NIC's) are the portion of national insurance contributions which are paid by the employer. The combined national insurance payment consists of employee contributions and employer contributions. The contributions go towards social security costs which include paying for the NHS, Pensions, Benefits and Social Care. National insurance contributions are ring-fenced which means they cannot be used for any other government funded initiatives, they must be used for social security funding only.
Employers NI contributions have quite an impact on the cost of employments as the NI contributions are paid as a percentage of an employees pay. Let's look at a simple example which excludes the employers NI allowance for simplicity. For every £10 that an employer pays an employee, the employer must pay an additional £ 1.38 to HMRC for employer NI contributions. If we consider that against the current minimum wage which is currently £ 8.91 (for the those who are 25 years of age and older), the real cost of that minimum wage when factoring in employers NI is £ 10.14.
This additional cost that employers pay is often overlooked by the employee as the contributions occurs outside of their influence. The money being paid to HMRC directly by the employer.
To complete the employer cost of employment point, employers are now required to offer a company pension scheme and contribute towards the employees' pension. The U.K. Government defines minimum contributions to company pensions, currently (2023 Tax Year) this is 3%. Let's use the same example for the company pension cost as we did in our Employer NI example. For every £10 that an employer pays an employee, the employer must pay an additional £ 0.30 into a company pension scheme for employer pension contributions. If we consider that against the current minimum wage which is currently £ 8.91 (for the those who are 25 years of age and older), the real cost of that minimum wage when factoring in employer pension contributions is £ 9.18.
If we combine these two elements our cost of employment for every £10 paid is £ 10.41. The employee on the other hand when considering NICs, PAYE and company pension contributions will see around £ 7.31. (based on a 36-hour working week at £10 per hour with 5% pension contribution). This is of course a simplified overview, but it is important as an employer to understand two key point here:
Having reviewed the impact on the cost of employment of Employers Ni above, the table below further illustrates the impact for each minimum wage group. again, these figures are based on the assumption that the employee is a member of the company's pension scheme.
|National Minimum Wage Category||NMW||NMW + NI||NMW + CPC||True NMW cost to employer|
|25 and over||£ 8.91||£ 10.14||£ 9.18||£ 10.41|
|21 to 24||£ 8.36||£ 9.51||£ 8.61||£ 9.76|
|18 to 20||£ 6.56||£ 7.47||£ 6.76||£ 7.66|
|Under 18||£ 4.62||£ 5.26||£ 4.76||£ 5.40|
|Apprentice||£ 4.30||£ 4.89||£ 4.43||£ 5.02|
* Table is based on Class 1 National Insurance Contributions rates and thresholds.
Employer NI becomes payable when an individual employee annual earnings exceed £ 9,100.00, which is £ 175.00 per week. This is the point at which the employee's earning exceed the primary threshold and become liable for employee national insurance and employers national insurance contributions.
National Insurance, including the employers contributions, are used to pay for the NHS, social care, pensions and benefits.
The current rate of Employer National Insurance is 13.8%, this is valid for the 2023 Tax year which runs from the 1st April 2023 To 31 March 2024
Yes, the employers NI rate is subject to change and is reviewed annually by the Scottish sitting government but it changes infrequently. You can view a list of current and historical Employer NI Rates in the Scottish Personal Income Tax Rates and Thresholds section.
Employer NI becomes payable when an individual employee annual earnings exceed £ 9,100.00, which is 175 per week. This is the minimum threshold, earnings above which are subject to employee and employer NIC's.
There is no cap on the amount of national insurance that am employer must pay therefore there is no maximum employer national insurance contribution.
The current employment allowance for employers who pay national insurance for their employees is £ 5,000.00, that is the full allowance for the 2023 tax year.
All employers are liable for paying employers national insurance contributions if they employ someone. This includes limited companies with just one employee (i.e. the company director is also the employee).
employers Ni is calculated by: