Wage Quiery National Insurance

[nerrad123]

can anybody help?

firstly national insurance contributions how are they worked out is it a % of your total wage? does overtime count? and does bonus count? when it is worked out. only my NI changes every month.

secondly i worked over the xmas period to find they have paid my 27 hrs worked as over time is this correct and if so why havnt they put a note on the wage slip explaining why this has been paid this way. i know technically it is over time but you need to be carol vorderman to work out the payment, and the hours worked.

 

probably a straight forward answer but thanks for any replies.

[Ell-enn]

Hi there, your payslip should show the rate applied for the hours you have worked i.e.

40 x std rate = £x

5 x time and a half = £x

5 x double time = £x

 

I'm assuming you are hourly paid?

 

Re National Insurance - the following is taken from Website of the UK government : Directgov

National Insurance Rates

 

The following amounts apply for the 2007-2008 tax year:

 

If you're employed

 

• if you earn above £100 a week (the 'earnings threshold') and up to £670 per week you pay 11 per cent of this amount as 'Class 1' NICs
  
• you also pay one per cent of earnings above £670 a week as Class 1 NICs
  
• you will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme

Hope this is helpful

 

Kind Regards

 

Ell-enn

[nerrad123]

my top line was 3097.15 and my NI was 233.09 i have not got a clue how they work it out i am i a pension fund through work does that lower my NI payments?

[Ell-enn]

Hi there, it all depends on the type of pension scheme i.e. final salary, stakeholder or money purchase scheme. Do you know which pension scheme you are contributing to?

[nerrad123]

it is a LGPS

have been in it for the last 25 yrs. also is it as good as they make it out:? i have my doubts

[shywazz]

Legal and general act for many companies with there pensions, with some companies putting in the same percentage as the employee, i have no dought in my mind that having a pension for when you retire is the best way to go.......

Not to give too much detail of my income, the NI you paid on that income is correct to the nearest penny.. taking into account the possiblity you pay 5% per mth to the pension, then the calulation of NI on that mth on that salary is 8% of the overall total payable... the pension contribution is taken out before any tax is deducted, the total changes slightly if you give to charities which again is deducted b4 any tax is taken...

 

If you have been in the pension for near 25 years its abit late to start thinking whether it was worth it or not... just enjoy the benefits its going to give you in years to come, chances are you get life insurance on top of having the pension, as long as you are at that company, so extra scope for continued been init....