Category M For an employee aged between 16 and 20 years old, assign NI category M. With NI category M, employee NI is due, but employer NI isn’t. When an employee moves from category M to category A at 21 years old, employer NI is then also due. Your employee's age on the date you pay them determines their NI category. If the employee turns 21 before the process date, you must change the category before processing the payroll. If your employee turns 21 after your process date, you must change their category. Complete this before you process their next pay period. Sage Payroll will prompt you to do this. Apprentices You need to use NI category H (apprentice under 25). For more information, read Paying apprentices the correct national minimum wage. For other exceptions and further information, read about national Insurance rates and categories at gov.uk. Under 16s Under 16s don't pay NI until they earn over their personal allowance. If paid under the personal allowance you don't need to add them to the payroll. For more information, read about income tax rates and personal allowances at gov.uk. If you want to add them to your payroll, use category M. For more information, read the article Child employment at gov.uk. Possible errors If you encounter the error NI Category 'M' isn’t valid for employees over 21, you need to change the employees NI category. |