A look at national insurance for the work place
Most employees pay a National Insurance contribution before they get their wages in the company. What are the National Insurance policies that you need to know in a workplace? Here is a look at a National Insurance at the workplace with information provided by NI Apply.
If you were an employee, then you would need to pay Class 1 NIC on your earnings from employment, such as, salaries and bonuses. The amount you pay depends on how much you earn in a particular pay period.
Do I have to pay a National Insurance?
As an employee you would need to pay a national Insurance contribution if you are above a certain threshold. However if you fall below this threshold, you would not need to pay this contribution. The actual amount of the NIC depends on what you earn up to the upper earnings limit. There are Class 1A and Class 1B NIC but these contributions do not need to be paid as an employee. Your employer pays the first contribution if they provide with benefits of kinds and your employer pays the second one if they enter into arrangements with an HMRC.
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What happens if the person earns less than the required threshold?
If you have earnings above the limit of lower earnings that is around (£112 per week of £486 per month for 2016/17 and below the primary threshold, then you would not have to pay any Class 1 NIC. These are known as credits. This can earn you entitlement to contributory benefits and the state pension. If you earn less than the lower earnings then you do not need to pay the Class 1 NIC or credits.
Do I have to pay NIC on any loans?
Loans are not considered to be earnings for NIC purposes. You would not have to pay Class1 NIC on the cash equivalent of the benefits of an interest free loan from your employer. Your employee would have to pay Class 1A NIC on the taxable benefits if the loan is a beneficial loan. If your employer waives of the loan then they will deduct Class 1 NIC from the other wages through the payroll based on the loan value.
You can also opt for workplace pensions by which you can save a great deal of money after retirement. Some workplace pensions are also called occupational work. A percentage of your pay is put into the pension scheme automatically every payday. Your employer can also add money to your payment scheme and thus the money increases on a per day basis and that can be used after retirement. The National insurance scheme is very beneficial for an employee who would love to save after retirement. There are various NIC schemes that you can apply for as per your company rules and regulations. The benefits are calculated on a regular basis
These are the various NIC at your workplace that can be availed by an employee. You can know more about NIC at workplace from The BusinessSeed.com
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