ESM3550 - Managed Service Companies (MSC): Step by Step Guide for working out the DEP and Employer’s Class 1 NICs
The following table provides a step by step framework for working out:
- the Deemed Employment Payment; and
- Employer’s Class 1 NICs on that payment
| Enter in this box the earnings to date (a) | 1 |
|---|---|
| Enter in this box the amount at Step Three (b) | 2 |
| Enter in this box the Employer’s Class 1 NICs earnings threshold at the date the payment or benefit is received by the worker | 3 |
| Enter in this box the secondary Class 1 NICs percentage rate | 4 |
| Deduct the figure in box 1 from the figure in box 3 and enter the result in this box (e) | 5 |
| Deduct the figure in box 5 from the figure in box 2 and enter the result in this box | 6 |
| Multiply the figure in box 6 by 100 and enter the result in this box | 7 |
| Add 100 to the figure in box 4 and enter the result in this box | 8 |
| Divide the figure in box 7 by the figure in box 8 and enter the result in this box | 9 |
| Add the figure in box 9 to the figure in box 5 and enter the result in this box (c) | 10 |
| Deduct the figure in box 10 from the amount at box 2 (c) | 11 |
- (a) this is the amount of earnings paid by the MSC to the worker during the year; including amounts previously subject to PAYE as DEPs
- (b) this is the amount you worked out at Step Three of the DEP calculation
- (c) this is the amount of the DEP
- (d) this is the amount of Employer’s Class 1 NICs due on the DEP
- (e) if the result is a negative number, enter zero in this box.