When you agree a salary with your domestic employee, it is important to know what your total costs will be as en employer. The total cost of your employee's salary is made up of the following parts:
Net Salary (employee's take-home pay) + employee's Tax and National Insurance = Gross Pay + Employer's National Insurance Contribution = Total Cost
Use the calculator to the left to work out an approximage total cost from what your employee wants to 'take home'. Enter the net wage per week or per month and you will see the total cost per week, per month and per annum, appear below.
Please note the total cost figure does not include pension contributions. The employer will pay 1% in pension contributions until April 2018, then rising to 2%. The employee's pension contributions will be deducted from her salary provided a gross salary agreement has been made.
Please note that the figures are rounded, so not exact, and that they are based on a standard tax code.
How Stafftax can help
Stafftax acts as your agent and deals dcirectly with HMRC on your behalf - we set up your domestic employee's PAYE scheme and ensure that all Tax and NI calculations are accurate and up-to-date. We also offer unlimited support and advice on payroll and employment related issues. Here's what we will do:
- Provide weekly or monthly payslips for your domestic employee(s)
- Provide a template Contract of Employment
- Provide unlimited support from our team of payroll experts
- Provide unlimited access to our Employment Law Helpline
And there's more... find out here >