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On Cloud 9 Payroll

Payroll Department

Payroll Department

Payroll is a very complicated process that involves four taxes

  • PAYE - Pay as You Earn

  • Employee National Insurance (EE NI)

  • Employer National Insurance (ER NI)

  • Pension – Auto Enrolment (AE)

Payroll is the biggest Earner for HMRC, 47% of its total income earner, so getting it right is important

Payroll


Payroll is a very important tax, with 47% of the country's revenue coming from it.

On Cloud 9 Payroll Department will manage all these for you and your employees’ wages’

 

As an employer, you are responsible for collecting all the tax from HMRC with 2 of them being your liability

  • Employer National Insurance 13.8% of qualifying salary

  • Pension Contributions at 3% of qualifying salary

 

So, when employing someone, the cost is their salary + up to 17%!

A simple way of calculating this is an extra 2 months’ salary
e.g., An annual salary of £36,000 + £6,000 in taxes means they cost you £42,000

There is also Employer National Insurance payable on Benefits of 13.8% like medical insurance, gym membership, car even staff treats

Our Payroll Department can manage all these taxes and the processing of wages for you and ensure you pay the correct amount of tax.