why is quickbooks now adding employer taxes and contributions to payroll even when they are under the NI threshold of £542? Started with this new financial year.

Reviewing your category choice in your payroll setup helps determine why your employer's taxes and contributions were added to the payroll despite being under the National Insurance (NI) threshold, Slaughterboard. Let's go through this process and ensure that this is resolved promptly.

Since your employer's monthly salary qualifies for NI deductions, it should not be included in your payroll. Please review your employer setup and NI details to ensure you have chosen the correct categories and settings.

If you are using core payroll, you can follow these steps:

1. Go to Payroll, then choose Employees.
2. Select the employee.
3. Navigate Tax information, then click the edit icon
4. Review and apply the correct categories in the NI letter.
5. Hit Save.

If you are using advanced payroll, you can follow these steps:

1. Go to Payroll, then select Employees.
2. Choose the employee.
3. Go to the Tax and NI Details section.
4. Review the details, then click Save once done.

You can read this article for more information about this topic: Add, and update an employee record in QuickBooks Online.

Additionally, I've also included this material to help generate different payroll reports to get an overview of how your business finances are going: Run payroll reports in QuickBooks Online Advanced Payroll.

I'm here to assist you in properly setting up your payroll settings and categories. If you have any questions or need further assistance, please feel free to contact us. We are committed to responding promptly.