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Anyone able to answer a question on company non-contractual bonuses?
Short version is that the company is saying that the [b]employee[/b] is to pay the [b]employers[/b] national insurance on the bonus payment.
I know that sounds silly just by the fact that it's 'employers national insurance'.
The question is, can a company make the employee pay their national insurance contribution for them on a bonus, being that it's non-contractual?
Rubbish. Employers NI is paid by the employer on all amounts, salary or bonus or indeed overtime
Cheers for that, that's what I thought, maybe it was in the translation to me from someone else that they got it wrong.
Was hoping to find an HMRC page that states it just in case, but can't see anything on their site.
For PAYE and NI purposes, a bonus is definitely treated in exactly the same way as normal salary.
However, I think your employer might be saying that there's a fixed pot of money available to cover your bonus [b]plus[/b] the Employer's NI. So your "gross" bonus will be less than the total amount of cash already mentioned.
So, for example, if your employer has £1000 available, they might give you a bonus of £880 gross, which generates Employers NI of £121.44 (at 13.8%).
Your £880 is then subject to tax and NI as normal, so you might end up with about £680 net (depending on your exact circumstances).
Thanks Esme, that sounds like it might be the case from what I have been told. Oh well, I guess these days any bonus is better than no bonus at all. Might get us a takeaway and a couple of beers so can't grumble. 😀
[quote=jambalaya said]Rubbish. Employers NI is paid by the employer on all amounts, salary or bonus or indeed overtime
This all day long.
What is this bonus you speak of? #thirdsectoremployee
Haha, I'll share one of the beers with you Matt_OAA. But you can't have any of my takeaway. 😉
allthepies. Would like to think that but I'm sure it'll be the other way.
[quote=jockhaggis said]
allthepies. Would like to think that but I'm sure it'll be the other way.
I would think that would be illegal.