National Insurance contributions - employers' responsibilities

Broadly speaking, National Insurance contributions (NICs) are payable on employee earnings, including non work related expenses and provided benefits. There are different classes of NICs that apply in different circumstances. Some are paid by both employers and employees, some by employers only and others by the self-employed.

As an employer your main responsibilities are:

• to deduct and pay the employer and employee Class 1 NICs due on your employees' earnings through your payroll
• to pay employer Class 1A NICs after the end of the tax year on benefits you have provided to your employees
• to pay employer Class 1B NICs after the end of the tax year if you have agreed a PAYE Settlement Agreement with HM Revenue & Customs

If any of the people you engage to carry out work for you are self-employed, then they're responsible for paying their own NICs (Class 2 and Class 4).

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