My Employer is trying to make ME pay Employers NIC-PLS HELP!

[Monky]

Hi all,

Need some help with Employers NIC.

I've just gone onto a new deal at work where I earn 15% of what the company makes (Net Profit) per annum - I sell cars for a living.

My director is now telling me that with this new deal I have to pay the Employer National Insurance Contribution otherwise I won't be getting a true 15%, I will be getting more if he pays it. Is this right?

I understand that I must pay the Employee NIC but surely my director must pay the Employer NIC or don't I have a leg to stand on with this new deal? I will loose another £500.00 a month if I pay the Employer National Insurance Contribution.

I think on a legal front he is not allowed to make me pay the Employer National Insurance Contribution but then at the same time I have agreed to earn 15% so he may well have a point? I'm confused.com!!!!!!!!!

If anyone can tell me what I can say to him to still earn 15% and make him pay the Employer Contribution then that would really help me as I don't know enough about it to explain why I think he should pay it, on a legal and moral front!

Any help greatly appreciated.

Kind Regards,

Toby

[mullet]

The employer's NIC is definitely the liability of the employer - it is simply one of the costs of employing someone. I think you will need to look at your contract (if you have one) to see precisely how your earnings are to be calculated. If you are to be paid 15% of the net profit, then the employer's NIC will already have been taken into account in establishing that profit figure. Are you to receive 15% of NP before PAYE/e'ee NICs, or is the intention that you receive 15% in your pocket (effectively a net pay agreement)?

[wamstax]

The Employers NIC is a debt of the employer and this is a try on. Of course an agreement is whatever two sides come to agree and remuneration contracts could take any form agreed by you both.

Just tell him that the Employers NIC is part of his company's costs of running his company just in the same way that you have to pay Employees NIC on your wages.

I would also pay close attention to what the contract says for example there would be a large difference between any agreements that gave you for example
(i) 15% of the margin on the sale of the cars (before reconditioning costs)
(ii) 15% of the margin on the sale of the cars (after reconditioning costs)
(iii) 15% of the company's net profit

Why should it in any case be the latter as clearly you would effectively be taking a cut in your pay for whatever the company decides to push through as expenses (even the costs of his luxury Bentley or mansion etc).

You need to take advice from an employment expert to ensure that you know exactly what you are (or probably more likely have) gettign yourself into.