SolvedNIM07001 | Class 1 NICs: Payments made under employment legislation: Introduction
From HM Revenue & Customs · National Insurance Manual
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:
there is also guidance on the following related issues:
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 forRe any week - NIM07083
what is and is not earnings for NICs purposes - NIM07084
the earnings period to be used in assessing NICs liability - NIM07085.