When attempting an FPS, you may see the following error:

'The employee's year to date NI contributions must be zero if the NI Category is 'X', 'W' or 'C'.'

This occurs when an employee on a zero rate National Insurance (NI) category has an NI year to date value that isn't zero.

This error occurs when an employee moves from category A to C in the period that you create their employee record with year to date values.

For example, their NI category changes when moving to Sage from another software provider. Follow the steps below to resolve this.

1. Rollback the first payment processed in the employee's new employment.
2. Click Payroll, then click Change Process Date.
3. Set the process date to the tax period before the first payment in their new employment.
4. Open the employee's record, then click the Employment tab.
5. Set their NI category to A and enter the category A NI year to date values. 
6. Click Save, then click Close.
7. In Enter Payments, set their gross pay to £0.00.
8. Check that net pay is also £0.00.
   TIP: If a tax rebate calculates, change the tax code to 0T week1/month1.
9. Update records to save the NI year to date values against category A. You don't need to send an FPS at this stage.
10. Click Change Process Date, enter the employee's first pay date for the new employment.
11. Set the employee's NI category back to C.
12. Re-enter the correct tax code if necessary, click Save then Close.
13. Reprocess their first pay period. The FPS error no longer appears and you can send the submission.

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