Calculating tax and national insurance ) Video
Calculating tax and national insurance Calculating tax and national insurance ******* Calculating wage tax/national insurance contributions The amount of wage tax/national insurance contributions you must withhold is based on the bracket rate for the wage tax/national insurance contributions. You calculate the wage tax and national insurance contributions for the wages in the 1 st and 2 nd tax brackets. These are subject to 1 combined rate. A lower percentage for the 1 st and 2 nd tax brackets is applicable to everyone who has reached the State old-age pension (AOW) age. You calculate solely the wage tax for the wages in the 3 rd and 4 th tax brackets: you do not calculate national insurance contributions for these tax brackets. With certain forms of wages you do not withhold wage tax/national insurance contributions from the employee’s wages, as you bear the expense. This is what are referred to as the final levy. Calculation instructions: when you make use of automated payr...