NIM07001 – Class 1 NICs: Payments made
under employment legislation: Introduction
Employment Rights Act 1996
Trade Union and Labour Relations (Consolidation) Act 1992
Social Security Contributions & Benefits Act 1992
Social Security (Contributions) (Employment Protection)
Regulations 1977
Employers required to make certain payments
Under the above employment legislation, an employer is required,
in certain circumstances, to make to an employee the following
payments:
- Guarantee payments
- Medical suspension payments
- Maternity suspension payments
- Pay arrears under a reinstatement
order
- Pay arrears under a re-engagement
order
- Pay under an order for the continuation of
a contract of employment
- Protective awards
Under the above social security legislation, the above payments
are, for NICs purposes, either:
- earnings; or
- deemed to be earnings.
Guidance on what the payments are and their NICs treatment is
set out as follows:
And in relation to:
- Pay arrears under a reinstatement order -
NIM07020 –
NIM07021
- Pay arrears under a re-engagement order -
NIM07030 –
NIM07031
- Pay under an order for the continuation of
a contract of employment -
NIM07040 onwards
- Protective awards -
NIM07050 onwards
there is also guidance on the following related issues:
- the earnings period to be used in assessing NICs
liability -
NIM07060 onwards
- re-allocating primary NICs -
NIM07066 onwards
Payments of earnings out of the National Insurance Fund where
the employer is insolvent
Where an employer is insolvent the Secretary of State for Trade
and Industry can make to an employee certain payments out of the
National Insurance Fund. Guidance on this issue can be found at
NIM07081 onwards as follows:
- general –
NIM07081
- what can be paid out of the National
Insurance Fund -
NIM07082
- limit on the amount that can be paid out
of the National Insurance Fund to an employee foe any week -
NIM07083
- what is and is not earnings for NICs
purposes -
NIM07084
- the earnings period to be used in
assessing NICs liability -
NIM07085.
