Hello, Lorraine.
Thanks for getting back to us. I'll share some details about changing the NI letter on both Standard and Advanced Payroll subscriptions.
If you're under the Standard Payroll subscription, you would want to delete and re-run the payroll for the current tax year. This will make adjustments to the tax amounts for the employee.
Before deleting the pay runs for the current year, I would recommend reading this article for the complete details: Delete a pay run in QuickBooks Online Standard Payroll.
Alternatively, you can wait until the tax year ends and make the changes for the correct NI letter. Then, inform HRMC about the changes and have them calculate the adjustments for the taxes.
To change the NI letter:
- Go to the Payroll menu and select Employees.
- Select the employee's name.
- Click Tax information.
- Under the NI letter drop-down list, choose the correct NI letter.
- Select Save.
For Advanced Payroll, you can change the NI letter and have the system recalculate the tax amounts for you. Though, I'd still suggest informing the HMRC about the changes.
To change the letter:
- Go to Payroll.
- In the Employees tab, find and select the employee's name.
- Select Tax and NI Details from the left panel.
- In the National insurance category drop-down list, choose the appropriate rate per the HMRC.
- Click Save.
If you'd like to check your payroll liabilities and other taxes, feel free to check the reports available in QuickBooks. One of these articles can help you familiarise them:
- View reports in QuickBooks Online Standard Payroll
- View reports in QuickBooks Online Advanced Payroll
Do you have more questions while managing your employees in QuickBooks? Please let me know the details below and I'll help you out.
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