Employer's National Insurance contributions
As an employer, you have a responsibility to calculate and pay employer’s National Insurance contributions. The basis for this calculation will generally be gross salary. The rate for calculating employer's National Insurance contributions varies between 0 and 14.1%, depending on where in the country the enterprise is located.
The various municipalities are divided in different zones with associated, differentiated tax rates. If you run an enterprise in several municipalities, you will generally have to calculate employer's National Insurance contributions at the rate which applies in the municipality in which the enterprise is registered.
If you are an employee of your own limited company employer's National Insurance contributions must also be calculated and paid on your own salary.
However, owners of sole proprietorships are not required to calculate employer's National Insurance contributions on private withdrawals.
National insurance contributions are a salary expense in your accounts and a debt in your balance sheet.
Reporting and payment
Payroll withholding tax (tax deductions) and employer's National Insurance contributions must be paid six times a year. The basis for the payment can be found in the a-melding which you are obliged to submit on the fifth day of the month after the payment of salaries and other allowances. The tax authorities will not send out a separate demand.