Why is the employee's NI figure zero?

There are four possible reasons for this:

1) The NIC table letter is set to C or X
2) The employee pay in that period does not exceed the Primary Threshold.
3) If the employee is a company director, the NI is calculated over a longer period - typically a year. This often leads to zero NI in the first few periods of the year and then higher NI figures later in the year. Full details are given in the HMRC Help Book CA44 (http://www.hmrc.gov.uk/nitables/ca44.pdf)
4) If the employee has a contracted out pension and is paid slightly more than the Primary Threshold.

The Primary Threshold for 2011/2012 is
- £139 per week or
- £602 per month or
- £7,225 per year

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