What method of calculation do you use for
NICs?
IRIS Payroll Professional uses the exact
percentage method of calculating NI contributions.
Why is my new employee not paying any
NI?
In this case the payroll operator has probably
set up the new employee with the incorrect Next Tax Pay Period
Number.
Undo the Payroll for that one employee. In the
Employee's Details you will probably find the Next Pay Period is
set to 1. The Next Tax Pay Period needs to be set to the correct
pay period number, i.e. if they are first due to be paid in month
6, then it needs to be set to 6.
I have advanced an employee on the
payroll, so why is the NI is still being calculated over one
period?
This employee may be flagged as Casual in the Employee Status
option. In this case NI should be calculated over one
period.
If you want to spread the NI over more than
one period, you will need to:
- Undo the payroll for that employee
- Edit the employee and change the Status Flag
to Normal
- Run the payroll for that employee
Once you're happy with the calculated NI and
reports, edit the employee to change the status back to casual.
Why is there a difference in the NI
calculations when compared to the tables?
This is because we use the Exact Percentage method for calculating
NI on the payroll. You will normally see 1 to 2 pence difference
between the tables and exact percent. This is not a problem as long
as you do not change methods more than once mid-tax year.
How does the program handle a monthly
employee changing to a C rate mid-month?
Following HMRC rules, the employee is entitled to the whole month
at the exempt rate.
