What to do if your employee has more than 1 job
How to work out National Insurance contributions if your employee has more than 1 job.
Introduction
If your employee has more than 1 job with you - or with another employer you 바카라 사이트˜carry out business in association바카라 사이트™ with - you may have to calculate National Insurance contributions (NICs) based on the earnings of both of their jobs.
You may not need to 바카라 사이트˜aggregate earnings바카라 사이트™ in this way if you can show HM Revenue and Customs (HMRC) that it바카라 사이트™s not for you to do so.
The way you work out their PAYE tax won바카라 사이트™t change.
If your employee thinks they바카라 사이트™ll earn more than £41,865, they can
Business in association
When deciding if you are carrying out business in association with another employer, and if aggregation is appropriate, HMRC will consider factors such as whether:
- you share (to a significant degree) things like accommodation, employees, equipment or customers
- your businesses serve a common purpose
This may apply to you if your business has a holding company, or you and another company have shared ownership.
There바카라 사이트™s more information in HMRC바카라 사이트™s technical manual on or by calling the HMRC Employer Helpline for advice.
Calculate your employee바카라 사이트™s aggregated earnings
You should calculate, record and report the employee바카라 사이트™s pay, income tax and NICs as normal.
If your employee works for someone else, you and the other employer should do this separately for each job.
You then need to calculate the aggregated earnings on 1 of the employee바카라 사이트™s payroll records. If your employee works for someone else, you바카라 사이트™ll need to decide which employer will do this.
If your employee has more than 1 job with you and their earnings are reported under different Payroll IDs, you바카라 사이트™ll have to choose on which payroll record you want to record the aggregated earnings.
To aggregate the earnings:
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Add together the earnings from each job.
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Use these aggregated earnings to calculate and record the employer바카라 사이트™s NICs.
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Also use the aggregated earnings to calculate the employee바카라 사이트™s NICs and work out if you need to pay any more (above what바카라 사이트™s already been recorded for the employee바카라 사이트™s separate earnings for the 2 jobs).
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Pay HMRC the employer National Insurance and any extra employee NICs on the aggregated earnings.
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Update the year-to-date NICs figures in your employee바카라 사이트™s payroll record to reflect NICs for the aggregated earnings.
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Set the 바카라 사이트˜Aggregated earnings indicator바카라 사이트™ to 바카라 사이트˜Yes바카라 사이트™ in your employee바카라 사이트™s payroll record.
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Report the payroll information to HMRC in your next Full Payment Submission.
If earnings are aggregated, any student loan amounts due must be calculated and deducted from the aggregated earnings.
The payroll record for the employee바카라 사이트™s other job(s) should then be updated. If your employee works for someone else, you may need to ask the other employer to do this.
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Put 바카라 사이트˜0.00바카라 사이트™ for all the year-to-date NICs fields.
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Put 바카라 사이트˜0.00바카라 사이트™ for the employer NICs in this period.
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Set the 바카라 사이트˜Aggregated earnings indicator바카라 사이트™ to 바카라 사이트˜Yes바카라 사이트™.
For more detail and examples of how to calculate NICs, see 바카라 사이트˜Working out and recording NICs when earnings from separate jobs are added together바카라 사이트™ in Chapter 3 of HMRC바카라 사이트™s guide Employer Further Guide to PAYE and NICS