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by OtherShrezzing 1 day ago
In the UK, a £45k/yr employee pays their own tax and gets a take-home of £35k.

The employer pays £6k for National Insurance (atop the employee's NI contributions). Pension: 2-3k. Apprenticeship levy is £300. 3yr-amortised recruitment fee is £4000. Hardware costs: £1000. Office space £5000. Software/tools: £2500. Benefits: £1500. Training: £1000. Other admin overheads £500.

You pay that person for ~250 working-days, but they only attend for ~220, due to annual leave and sick pay, so you get around £62k worth of attendance out of that person in exchange for £70k, of which the employee sees £35k.

1 comments

a more honest way to look at it would be that the government gets 50% of the employees total expense to the company, so it is basically 50% income tax