1. Overview

For all employees earning more than £153 a week you have to deduct Class 1 National Insurance contributions from their pay. You also pay a direct contribution on an employee’s earnings above £153 a week. The exact amounts depend on:

  • how much an employee earns
  • their National Insurance category (this depends on their circumstances)

You have to keep National Insurance records for all employees earning more than £111 a week.

National Insurance to be paid on benefits

If you provide any employee benefits (eg health insurance, company cars) you might have to pay Class 1A National Insurance contributions on these. This depends on the benefit.

Some small or irregular benefits can be brought together in a single annual payment called a Pay As You Earn (PAYE) Settlement Agreement. You’ll have to pay Class 1B National Insurance on these.

Workers not on your payroll

Anyone who does work for you but is not on your payroll (eg self employed, volunteers), is responsible for paying their own National Insurance contributions.

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