Supporting Guidance: employer compliance: guidance by subject: inaccuracies: pay practice avoids or reduces NIC
Employers may set up payment methods which reduce or avoid NIC whether intentional or not.
- most weekly payments are below the LEL but some payments are very large and take the average payment above the ET
- employees work for each of several associate companies and the pay from some companies is below the ET
- employees receive low weekly/monthly pay but receive regular large payments for example bonuses or commission.
- familiarise yourself with NIM08000 onwards and
- check that no abnormal pay practice exists which reduces or avoids NIC.