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 鈥榗arry out business in association鈥� with - you may have to calculate National Insurance contributions (NICs) based on the earnings of both of their jobs.
You may not need to 鈥榓ggregate earnings鈥� in this way if you can show HM Revenue and Customs (HMRC) that it鈥檚 not for you to do so.
The way you work out their PAYE tax won鈥檛 change.
If your employee thinks they鈥檒l earn more than 拢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.
There鈥檚 more information in HMRC鈥檚 technical manual on or by calling the HMRC Employer Helpline for advice.
Calculate your employee鈥檚 aggregated earnings
You should calculate, record and report the employee鈥檚 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 employee鈥檚 payroll records. If your employee works for someone else, you鈥檒l 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, you鈥檒l 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 employer鈥檚 NICs.
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Also use the aggregated earnings to calculate the employee鈥檚 NICs and work out if you need to pay any more (above what鈥檚 already been recorded for the employee鈥檚 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 employee鈥檚 payroll record to reflect NICs for the aggregated earnings.
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Set the 鈥楢ggregated earnings indicator鈥� to 鈥榊es鈥� in your employee鈥檚 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 employee鈥檚 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 鈥�0.00鈥� for all the year-to-date NICs fields.
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Put 鈥�0.00鈥� for the employer NICs in this period.
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Set the 鈥楢ggregated earnings indicator鈥� to 鈥榊es鈥�.
For more detail and examples of how to calculate NICs, see 鈥榃orking out and recording NICs when earnings from separate jobs are added together鈥� in Chapter 3 of HMRC鈥檚 guide Employer Further Guide to PAYE and NICS