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Mar 26, 2019 10:19 PM UTC
Solved

Directors National Insurance in QuickBooks Online Payroll

The directors payroll is calculating NI in month 12 of £84.24 employee and £96.88 employer.

This is incorrect as directors are only being paid £702 per month.

YTD figure is £7722 

NI Category A

Tax Code 1185L

 

Is there a setting i need to change? How can I correct this?

 

Many thanks in advance

Amanda

JamesC
JamesCAnswer
Mar 28, 2019 6:17 PM UTC

Director 1 start date 16/01/2014

Director 2 start date 01/07/2015


Hey Amanda


Could you call 0808 234 5337 tonight before 7pm and ask for me? I'd like to escalate your case.

 

Thanks,

7 replies

Mar 27, 2019 12:10 AM UTC

It's great to see you today, Amanda13.

 

Thanks for the detailed information about your concern. I want to ensure the director's payroll is in tiptop shape.

 

Since this is your first question here in the community, let me take the time to welcome you to the Quickbooks Family. To resolve the issue, you’ll have to review the employee's information and make sure the setup is correct.

 

Here's how:

 

  1. Go to Employees on the left panel, then select Employees.
  2. Click on the employee’s name.
  3. On the Profile page, go to the Tax information section.
  4. Click on the Pencil icon.
  5. Review the information.
  6. If the NI Category and Tax Code information are incorrect, enter the correct one in the NI letter and Tax code fields.
  7. Make sure to select Yes in the Company director section, then choose the appropriate calculation method.
  8. Fill in the fields.
  9. Click on Save.

I'm adding screenshots for visual reference:

 

 

Moving forward, the director’s payroll should calculate the right amount.


Let me know if you need further assistance with any of these steps. I’ll be right here to help.

 

 

Amanda13Author
Mar 27, 2019 11:03 AM UTC

Thank you all the settings are correct. Why is it only calculating NI in month 12. The directors are paid £702per month there should be no NI payable. Please help?

 

Mar 27, 2019 11:24 AM UTC

Hi Amanda13

 

With the figures that you have provided you are correct that with an additional payment in month 12 of £702 added to YTD of £7722 the amount should be £8424 which is the threshold for NI and there should be no NI being deducted.

Are there any figures within the YTD section of the director in question?