NI Calculation please help

[gisela]

Hello Everyone,

I am new here just joined today, I am also very new to PAYE AND NI Tables. I am glad i've come across this forum as I can see there are a wealth of information and help with Paye and NI. I need to work out a weekly payment for National Insurance I am at a lost how to work out the deduction for NI from a gross weekly wage. I've done the following.

Weekly Gross pay £633.64 The employee A married man so I've used Table A

Employee Contributions
£633.64 - £105 weekly earning threshold= £633.64 - £105.00 = £528.64 X 11% = £58.15
105 - 90 = £15.00 X 12.8% = £1.92
£58.15 + 1.92 = £60.67

Employer Contributions
£633.64 - 105 = £528.64 X 12.8% = £67.66
105 - 90 X 11% = £1.65
£67.66 + £1.65 = £69.31

Can someone please tell me if I've worked the NI correct or if not I would be most grateful to see anyone examples of how to deduct NI from the weekly gross payment.

Many thanks in advance.


gisela





I

[jpcentral]

You've got your Employee's and Employer's Rates the wrong way round. Also, current threshold is £110 pw.

Employee's contribution

£633.64 - £110 = £523.64 @ 11% = £57.60

Employer's contribution

£633.64 - £110 = £523.64 @ 12.8% = £67.02

If you are really trying to do payroll each week, I suggest you get hold of the HMRC CD which includes a calculator.

[gisela]

I think i've done the right thing but it would be nice if someone can please tell me this is ok because i am not 100% sure.

many thanks in advance


gisela

[abelljms]

..but y not use the hmrc Cd they supply free? if u use a pc u can use their CD?
or online there are loads of free paye calculators.
in fact i think u can even do eoy returns off the hmrc CD now.

[gisela]

You've got your Employee's and Employer's Rates the wrong way round. Also, current threshold is £110 pw.

Employee's contribution

£633.64 - £110 = £523.64 @ 11% = £57.60

Employer's contribution

£633.64 - £110 = £523.64 @ 12.8% = £67.02

If you are really trying to do payroll each week, I suggest you get hold of the HMRC CD which includes a calculator.

Hi JPcentral,

Thank you very much for your reply and for detailed explaination. Sorry i've posted my last thread just minutes after yours it can be ignored. I am doing a course on Paye and NI at the moment so I am practicing on an old Paye NICs rates book the Tutor gave us hence the wrong rates. I can see I have the NIC worked out the proper way, but I am still confused as we've been told to do the following workout.

Employee's Contribution

633.64 - £105.00 = £528.64 X 11% = £58.15 and then
105 - 90 = £15.00 x 12.8% = £1.92

then add the two £58.15 + £1.92 = £60.07 that would be the amount the employee would pay.

and the same for the Employer

633.64 - £105.00 = £528.64 X 12.8% = £67.66 and then
105 - 90 = £15.00 X 11% = £1.65


then add the two as the above £67.66 + £1.65 = £69.31

You don't seem to have the two bottom calculation in bold would you mind telling me why you haven't got the bottom calculation like mine in bold, sorry i just want to know if i am doing the right thing because the tutor always calculate NICs that way.

many thanks in advance.


gisela

[gisela]

..but y not use the hmrc Cd they supply free? if u use a pc u can use their CD?
or online there are loads of free paye calculators.
in fact i think u can even do eoy returns off the hmrc CD now.

Hi Abelljms,

Thanks for your reply much appreciated, I am doing a course on Paye and NICs at the moment and we've been given the old Paye and NICS to practice with. Also I am interest in learning manuall payroll which is the course I am doing at the moment, I know there are lots of software out there but I would like to know how the deductions of tax and NICs are done so i could explain if there is a query regarding tax or NIC the software don't give detailed explainations how these two deductions are done.


many thanks


gisela

[jpcentral]

I don't know why your tutor is showing you a calculation where NI is charged on earnings between the Lower Earnings Limit and the Primary Threshold because there is no NI payable on this band. NI is payable on earnings above the Primary Threshold. See this link (you may have to copy and paste) http://www.hmrc.gov.uk/rates/nic.htm

[gisela]

I don't know why your tutor is showing you a calculation where NI is charged on earnings between the Lower Earnings Limit and the Primary Threshold because there is no NI payable on this band. NI is payable on earnings above the Primary Threshold. See this link (you may have to copy and paste) http://www.hmrc.gov.uk/rates/nic.htm

Hello Jpcentral,

Thank you very much for your reply it is much appreciated. I have kept a copy of your NICs work out perhaps I will have a word with my tutor and asking her why we have to do the calculations between the lower earnings and Primary earnings threshold.

Thanking you


gisela