The net pay of an employee is 225$. The PAYE is 55$ and NIC is $28. The employer NIC for the week is 31$
what is the labour cost to the employer?
The labour cost to employer is the TOTAL COST that he has to bear/pay. In your example, the total cost would be employee’s gross pay + employer’s NIC.
Employee’s gross wages are the sum of net pay, PAYE and NIC.
T.C = Gross wages + Employer’s NIC = 308+31 = 329
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