Employer Payroll Costs
The payroll taxes and levies employers pay on top of wages: employer National Insurance, Class 1A, the Apprenticeship Levy, and how much statutory pay they can recover.
Employer rate
15%
The rate of employer National Insurance on pay above the secondary threshold.
GOV.UK — HMRC · checked 10 Nov 2026
Secondary Threshold (yearly)
£5,000
Employers pay National Insurance on each employee's pay above this.
GOV.UK — HMRC · checked 10 Nov 2026
Employment Allowance (yearly)
£10,500
Eligible employers can take this off their yearly employer National Insurance bill.
GOV.UK — HMRC · checked 10 Nov 2026
Class 1A National Insurance rate
15%
Paid by employers on work benefits such as company cars and phones, and on termination awards over £30,000.
GOV.UK — HMRC · checked 10 Nov 2026
Apprenticeship Levy rate
0.5%
Charged on your annual pay bill by employers with a pay bill of more than £3 million.
GOV.UK — HMRC · checked 10 Nov 2026
Apprenticeship Levy allowance
£15,000
Reduces the levy you pay each year, for employers who aren't connected to another company or charity.
GOV.UK — HMRC · checked 10 Nov 2026
Annual pay bill at which the levy applies
£3,000,000
Employers and connected companies with a total pay bill above this are liable for the Apprenticeship Levy.
GOV.UK — HMRC · checked 10 Nov 2026
Share of statutory pay you can recover (standard)
92%
For Statutory Maternity, Paternity, Adoption, Shared Parental, Parental Bereavement and Neonatal Care Pay, if your Class 1 NI bill was over £45,000 last year.
GOV.UK — HMRC · checked 10 Nov 2026
Share of statutory pay you can recover (small employer)
109%
If your total Class 1 National Insurance for the previous tax year was £45,000 or lower. You cannot recover Statutory Sick Pay.
GOV.UK — HMRC · checked 10 Nov 2026