Overview of the Act Liability for National Insurance contributions
6.The measures at sections 1 to 4, together with any supporting secondary legislation, are designed to simplify employers’ administration of National Insurance contributions by:
	extending employers’ ability to recover primary (employees’) Class 1 contributions paid on securities-based earnings of their employees and ex-employees by allowing the employer, with the agreement of the employee, to withhold an amount of the securities equal to the contribution liability (the terms “securities” and “securities based earnings” are explained at para 11) – sections 1 and 2; and
	extending the facility whereby employers can ask employees to fund the employer’s share of National Insurance contribution liability on the exercise of a share option to include awards of restricted or convertible securities – sections 3 and 4.