ESM3171 - How to work out the deemed payment: Step Eight – step by step guide
The following table provides a step by step framework for working out:
- the deemed payment; and
- secondary Class 1 NICs on that payment
| Enter in this box the earnings to date (a) | 1 | |
| Enter in this box the amount at Step Seven (b) | 2 | |
| Enter in this box the secondary Class 1 NICs earnings threshold | 3 | |
| Enter in this box the secondary Class 1 NICs percentage rate | 4 | |
| Deduct the figure in box 1 from the figure in box 3 and enter the result in this box (e) | 5 | |
| Deduct the figure in box 5 from the figure in box 2 and enter the result in this box | 6 | |
| Multiply the figure in box 6 by 100 and enter the result in this box | 7 | |
| Add 100 to the figure in box 4 and enter the result in this box | 8 | |
| Divide the figure in box 7 by the figure in box 8 and enter the result in this box | 9 | |
| Add the figure in box 9 to the figure in box 5 and enter the result in this box (c) | 10 | |
| Deduct the figure in box 10 from the amount at box 2 (d) | 11 |
- this is the amount of earnings paid by the intermediary to the
worker during the year, apart from the deemed payment, subject to
Class 1 NICs
- this is the amount you worked out at Step Seven of the deemed
payment calculation
- this is the amount of the deemed payment
- this is the amount of secondary Class 1 NICs due on the deemed
payment
- if the result is a negative number, enter zero in this box
