difference between EE NI and ER NI

Discussion in 'Accounts & Finance' started by lisacox, Nov 19, 2010.

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  1. lisacox

    lisacox UKBF Newcomer Free Member

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    Hi

    Could somebody please tell me why my husband, who works through and agency, is paying ER Nat Insurance and EE Nat Insurance and what they are

    Many thanks in advance
     
    Posted: Nov 19, 2010 By: lisacox Member since: Apr 7, 2010
    #1
  2. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

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    ER is Employers National Insurance

    EE is Employees National Insurance

    Employers have to pay National Insurance for the privilege of employing people, as well as employees who have it deducted from wages/salaries.
     
    Last edited: Nov 19, 2010
    Posted: Nov 19, 2010 By: MyAccountantOnline Member since: Sep 24, 2008
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  3. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    I have no idea as to why your husband is paying employers NI.

    Has he asked his employer?
     
    Posted: Nov 19, 2010 By: [email protected] Member since: Nov 4, 2005
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  4. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

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    I wonder if they are just being recorded on his payslip?
     
    Posted: Nov 19, 2010 By: MyAccountantOnline Member since: Sep 24, 2008
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  5. Jenni384

    Jenni384 UKBF Big Shot Full Member

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    I would guess the NI'er is shown on the payslip but it's not actually a deduction from wages. It just shows the contribution the employer has made on top of the deduction the employee has made personally.
     
    Posted: Nov 19, 2010 By: Jenni384 Member since: Oct 1, 2007
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  6. Jaydee

    Jaydee UKBF Enthusiast Free Member

    1,074 278
    I would guess that the OP works through an umbrella company and, if so, the Ers NI shows as it forms part of the reconciliation between day rate earnings and gross pay.

    It therefore will appear to be an employee payment as the Ers NI is deducted before arriving at gross pay.
     
    Posted: Nov 19, 2010 By: Jaydee Member since: May 27, 2007
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