# ESM3172 - How to work out the deemed payment: Step Eight - example using step by step guide

Ms G is a worker whose service company has earned income from a relevant engagement. The service company paid her a salary of £3,000 during the year. The amount at Step Seven is £30,000. This produces the following figures:

 earnings to date £3,000 the amount at Step Seven £30,000 the secondary Class 1 NICs threshold £4,385 the secondary Class 1 NICs percentage rate 12.2%

Using the template at ESM3171 the calculation is as follows:

 Enter in this box the earnings to date 1 3,000 Enter in this box the amount at Step Seven 2 30,000 Enter in this box the secondary Class 1 NICs earnings threshold 3 4,385 Enter in this box the secondary Class 1 NICs percentage rate 4 12.2% Deduct the figure in box 1 from the figure in box 3 and enter the result in this box 5 1,385 Deduct the figure in box 5 from the figure in box 2 and enter the result in this box 6 28,615 Multiply the figure in box 6 by 100 and enter the result in this box 7 2,861,500 Add 100 to the figure in box 4 and enter the result in this box 8 112.2 Divide the figure in box 7 by the figure in box 8 and enter the result in this box 9 25,503 Add the figure in box 9 to the figure in box 5 and enter the result in this box (a) 10 26,888 Deduct the figure in box 10 from the amount at box 2 (b) 11 3,112

(a) this is the amount of the deemed payment - £26,888

(b) this is the amount of secondary Class 1 NICs due on the deemed payment - £3,112