Question

Create a fact sheet about national insurance coverage.

In order to create a quick reference document to share with elected officials and potential coalition members, we took some of the most compelling and important pieces of the white paper and constructed a two-sided, full-color fact sheet. Consisting of referenced facts and compelling pictures, this made for a powerful advocacy tool. We included marketing elements to make a stronger case and to grab and hold the reader's attention to our cause. This was one of the most useful tools during our meetings with legislators and community members.

Answer 1

Employer Factsheet: National Insurance Coverage: (NIC)

Obligations:

1. Employers must calculate primary class 1 National Insurance Contributions and deduct them from the employee’s pay.

2. Employers must record contributions on the deductions working sheet and on the employee’s pay slip

3. Employers must calculate secondary Class 1 contributions on payments of earnings made to employees.

4. Employees must pay primary and secondary Class 1 contributions over to HM revenue and customs by the due date.

5. Employers not operating Real Time Information (RTI) must complete year end returns P35 and P14.

6. Employer with RTI must comply with RTI end of the year procedures.

7. Where expenses and benefits are provided to employees, employers must calculate Class1A contributions due.

Dos and Don’ts checklist for managing National Insurance Coverage:

Dos:

Those running a small business should do the following:

1. Understand the rules relating to NICs and how they apply to the business

2. Calculate contributions correctly using the rates and limits in force for the tax year in question

3. Consider paying Class 2 contributions by direct debit

4. Keep abreast of changes in the rules.

5. Undertake sufficient training to understand the National Insurance obligations.

Don’ts:

Those running a small business should not do the following:

1. Use old tables to work out NICs due.

2. Pay contributions at the contracted out rate.

3. Pay contributions over to HMRC late.

4. Fail to keep adequate records.