BUSINESS INFORMATION SHEETS > TAX > National Insurance and state pensions (TA 2)
Compulsory payments
All earners pay National Insurance contributions (NICs), which are effectively another tax. Employers not only pay 'employer contributions' for each employee, but also collect and forward their employees' contributions.
Paying contributions entitles an individual to a state pension. But most people will need to make additional provisions. (See Personal pension schemes, HR 8, Company pension schemes, HR 7, and Executive pensions, HR 9.)
This briefing explains:
- Who pays what.
- An employer's responsibilities.
- How to reduce the NICs you pay.
- How NICs affect an individual's entitlements.
|
