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The employer pays employer's NI contribution on earnings above £7,692 at 13.8%. This cost is over and above the salary and not taken out of employee's wages...
Based on a yearly salary of £20,000 the amployee NI would be £1,470.24 and employer's NI would be £1,697.95.
Assuming the personal allowance is 9,440 employee's net earnings would be
Tax due £2,112.00
Nat Ins £1,470.24
Total deductions £3,582.24
net earnings £16,417.76
There are no other payroll related costs that you should be aware of.
Sick pay, holiday pay would be covered within the terms of engagement.
As an employer you would have to consider employers liability insurance.
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Employer NI contribution is an additional cost. The cost to the company is the salary and employers NIC.
There is an employment allowance of £2,000 from Apr 2014. This would bring your employer NIC to nil.