Employer – A person or organisation that pays people to work for them; The Limited Company or Corporation
To remember what employer means use the following mnemonic:
We employed people to make all companies look like a her (employer), reminding people that the employer is the Ltd company or corporation.
If you are a sole trader, like a plumber, and you take on an apprentice, the plumber is the employer and the apprentice is the employee.
If you become a limited company or corporation, the company is then treated as a legal entity (as if it is a person). Everyone, including the managing director or CEO is an employee of the company.
The company is the employer – everyone else who works is an employee.