Employer's NI - Cost of sales/Expense

In relations to sales commission would the extra employer's insurance be classed as a cost of sale

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Hi all, 

I have a quick question with regards to employer's NI. I understand that Employer's NI that are paid on salaries are generally classified as an expense. 

If these same employees earn commission for the service they provide. Would the amount of Employer's NI paid on the commission be classed as cost of sales?

Thanks 

Replies (4)

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By johngroganjga
28th Jan 2020 20:02

It would be logical for the Employer’s NI to be in the same place as the gross pay that it is charged on.

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By paulhammett
29th Jan 2020 05:26

John is right (of course) but it really doesn’t matter as long as you are consistent.

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By tom123
29th Jan 2020 16:18

As per above, you may therefore find you want to treat the ERS of the direct staff differently to the ERS of the indirect staff.

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By tom123
29th Jan 2020 16:19

Pension contributions can also be in the same buckets.

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