In case of late joiners in a month, their salary is paid next month from date of joining month. In such cases, the NI is not calculating backdated/retrospective.

QuickBooks provides a method for accurately calculating National Insurance (NI) contributions for your employees, mjain. I’m here to share and guide you through the process.

In QuickBooks Online Payroll, you can use the Back Calculate NI option in the pay run to handle retroactive pay. Follow the steps below to ensure NI calculations are applied correctly for late joiners.

1. Open your QuickBooks account, then go to the Payroll menu.
2. Select the Pay runs tab and click the current payroll.
3. Hit the > arrow next to the employee's name.
4. Press Actions.
5. Click Back Calculate NI.
6. Select the category used for re-calculation.
7. Enter the relevant from and to dates. This must be in the same tax year.
8. Select Calculate and Apply after.

You can read this article for more information: How to back calculate National Insurance contributions in QuickBooks Online Payroll. It includes a video for your visual reference.

I’m also adding this resource to get insights about retroactive pay, how it’s calculated, fix payroll errors, and stay organized: Retroactive pay: What is it, and how do you issue it?

Feel at ease to post another comment if you need further assistance or have other payroll-related concerns. I’m just a few clicks away, mjain.