How do you Calculate amount of Bonus to Pay

I am trying to calculate how much bonus to pay an employee so that the net cost to the company is £1000.

Employers NI is 13.8% and Corporation Tax is 20%.

I can obviously work it out through trial & error:

Bonus: £1098.42

Employers NI: £151.58

Total cost of bonus: £1,250

Less corpration tax relief: (£250)

Net cost to company: £1,000

Can anyone provide a formula for excel?

Many Thanks

There is 1 comment. Login or register to view it.


smercer |