Am I right that part time staff cost less in NI & sick pay?

[MisterMusty]

I'm planning a cafe/bakery and in my calculations found that employers' NI contributions only apply to staff earning over £7,027, and the same goes for statutory sick pay. Therefore instead of employing 2 full time staff it seems I should employ 4 part (half) time staff who earn around £7,000. That way I pay NI and SSP for none of them whereas with 2 full timers I'd be obliged to pay both.

Am I right?

Thanks everyone.

 

[kulture]

Sad but true.

On the other hand, for a cafe you need good staff, who get on with customers, who encourage people to come back and spend more. Full time staff are better at this. Do not penny pinch on staff.

 

[Richie N]

Always good to have part time or casual staff in a cafe as well for back up, for busy periods and also when your full timers are sick or take holiday.
Remember catering staff are high turnover usually as well, so it's always handy having staff on call if need be.

 

[AndyBlue]

I would always go for 4 part timers instead of 2 full time. 1. For the reasons you state, in terms of less/no Employers NI. 2. When one leaves it doesn't leave a huge void. If you have only two staff and one leaves or is off sick that is 50% of your workforce gone, with your full timer unable to work extra hours. However if a part timer leaves your other staff may be able to make the hours up short term until they return from sick or are replaced.

As for SSP bear in mind as you are a small business the taxman actually pays your SSP for you so don't be swayed just on this.