A plan to help companies by supporting employee wages is thought to include a scheme whereby the deductions normally taken from an employee's wage and forwarded to HMRC under payroll schemes can be retained by the employer in order to help cashflow.
Use the calculator below to calculate the total amount of deduction normally taken from employees. It is based on the current applicable tax year and autocalculates the income tax, employees and employers NIC deductions. You can adjust the number of employees per income as well as show the deduction by month,week or year.
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EE NI: 0.00
ER NI: 0.00
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|total retained||0.00||show deductions as:|
Firms normally deduct income tax, national insurance from an employee's gross wage prior to making the wage payment. In addition to this, the employer must also make a national insurance contribution of their own (ER) based upon the gross income level. Under possible plans, employers may be able to keep these total deductions under a PAYE 'freeze' for up to three months.
Employees would still receive the same amount of take home pay with only the Treasury missing out on their split of the income.
These are just rumours at the current stage and the Chancellor could go further as in countries like Italy, France, Germany and Spain where employee wage supporting measures include up to 75 percent of gross staff salaries being underwritten by the government. There could also be conditions to the freeze or other support that the company not make any employee redundant.
More news to follow this after this evening's daily briefing.