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Table 1 Implicit Employment Taxes from NICs and the JSA, 2010 and 2011

From: Fiscal policies and the prices of labor: a comparison of the U.K. and U.S.

  Tax Year   
Policy Parameter 2010 2011 Change Units
NICs
 Employer rate 12.8% 13.8% 1.0% % of earnings above ST or PT
 Employee rate 11.0% 12.0% 1.0%
 Tax value of PT and ST 20.5 26.4 5.9 2010 British pounds per week
Job Seekers Allowance (tax adjusted)
  51.8 51.2 −0.6 2010 British pounds per week
JSA minus Tax value of PT and ST
  31.3 24.8 −6.5 2010 British pounds per week
  6.5% 5.2% −1.4% Percentage of employer cost, FW
  6.4% 5.3% −1.1% Percentage of employer cost, VW
Addenda
Basic rate for the PIT 20.0% 20.0 % 0.0% Percentage of taxable income
Employer cost 489 472 −17.5 2010 British pounds per 40-hour week, at the median wage
  1. The JSA and ST values are net of personal income taxes at the margin, assuming the basic rate. FW (“fixed weight”) estimate uses the same 2010–11 average of employer cost for both years’ percentages. The VW (“variable weight”) estimate uses the employer cost estimate from the same column as the reported percentage