Employers contributions on wages under the tax free allowance

[brabinger]

I am looking to take on an employee for about 10 hours per week, her gross pay will be under the weekly tax free allowance, do I still have to pay employers contributions at 12.8% on her weekly pay?

[KidsBeeHappy]

There are seperate issues; PAYE and NIC. You pay employers NIC on wages over £110 per week.

[brabinger]

I know the thresholds are different for PAYE and NIC and that is fine, but from an employers point, will I have to pay Employers Contributions?

[Claire B]

If she is under the NI threshold then there won't be any Employers or Employees NI to pay.

Just pay her the hourly rate although don't forget that she will also be entitled to pro rata holiday pay too.

[elainec100@cheapaccounting]

If you record this on the FREE CD Rom from HMRc then it will tel you if the are any deductions. That way you do not miss anything plus you have a record of the employee.

However just for info you do not need to keep a P11 record if the employees is below the threshold.

If in doubt I would recommend you look at this guide from HMRC:

http://www.hmrc.gov.uk/paye/payroll/day-to-day/records.htm

and here:

http://www.hmrc.gov.uk/paye/intro/basics.htm