COG905320 - Supporting Guidance: employer compliance: guidance by subject: commencing the compliance check: when to complete a deductions working sheet (DWS)
The lower earnings limit (LEL) is the point at which employees start to build up entitlement to contributory benefits.
The earnings (or primary) threshold (ET) represents the point from which payment of NIC arises.
Where an employee is paid
- less than the ET, but
- equal to or more than the LEL
the employer is required regardless of whether any NICs or PAYE have been deducted
- to complete a DWS (recording the pay), and
- to complete and submit a form P14 at the year end.
This will protect the employee’s entitlement to contributory benefits.
- make sure that the employer is using the correct version of the DWS, and
- make sure that the
- NI number or
- date of birth, and
- correct contribution letter
are being accurately recorded.