1) Employees start paying NIC at what age a) 18 b) 16 c) 21 2) Employers pay NIC until the employee a) Reaches state retirement age b) Ceases to work c) Reaches the age of 65 3) Class 1 NIC contributions are paid on a) Non-cash benefits b) Net Earnings c) Gross Earnings 4) What is the amount of NIC relief available for employers a) £5000 per year b) £3000 per month c) £3000 per year 5) Class 1A NIC contributions are paid on a) All non-cash benefits b) Cash benefits c) Cash vouchers 6) NIC on a Directors bonus is calculated a) An annual basis b) A monthly basis c) A weeky basis 7) Which of the following is included in Gross Earnings a) Car benefit b) Mileage in excess of 45p for all miles c) Tips direct from customers 8) Which of the following is NOT included in Gross Earnings a) Commissions and bonuses b) Reimbursed home to work travel c) Reimbursed business expenses 9) Employees pay 12% NIC on earnings a) Earnings below £8,060 p.a. b) Earnings between £8,061 - £43,000 c) Earnings above £43,000 10) Employers pay 13.8% NIC on earnings a) Earnings above £8,112 b) Earnings below £8,060 c) earnings above £11,000

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