Employee reward and benefits news
Changes to employers' NI rise welcomed by small firms
Scrapping the one per cent employers' national insurance (NI) rise for employers earning under £20,800 has been welcomed for its employee benefits.
The Forum of Private Business (FPB) praised the amendments by the Conservative and Liberal Democrat coalition government, indicating that the plans had been strongly opposed by small companies.
FPB chief executive Phil Orford explained: "Small businesses did not want this tax on jobs because clearly it would have been a major barrier to staff retention and job creation and would have hindered economic recovery.
"Although not perfect, the new coalition government's policy on NI is far better and provides a degree of certainty for business growth now and in the future."
The decision has also been welcomed by the Federation of Small Businesses.
Not due to be introduced until 2011, the rise will still affect the employment of staff earning more than £20,800 per year, with employers set to be hit with an increase in national insurance of £21 for each employee paid more than this.
Posted by Elizabeth Mewes
