EE NI and ER NI

[lisacox]

Hello

Could somebody tell me the difference between EE NI and ER NI as my husband is being charged both on his wage slip and we haven't seen this before?

Many thanks in advance

[mullet]

EE NIC is employee NIC, also called the primary contribution. It is calculated on income above a certain level, is the liability of the employee and is deducted from that income to arrive at net pay.

ER NIC is emploer NIC, also called the secondary contribution. Again it is calculated on income above a certain level but it is the liability of the employer and is therefore not deducted from income.

Both EE and ER NIC, together with the PAYE tax deduction, are paid by the employer to HMRC each month (or longer period for a small employer).

[lisacox]

Many thanks that was extremely helpful

[mullet]

as my husband is being charged both on his wage slip

Forgot to say, payslips often show the employer's contribution. Check the arithmetic - gross pay minus tax minus employee's NIC should equal net pay. You may also need to take into account pension contributions, union subs, etc etc.