For an employee aged between 16 and 20 years old, normally you need to assign NI category M. 

 TIP: For exceptions, such as apprentices, and further information, please visit gov.uk >

Let's take a closer look.

With NI category M, employee NI is due, but employer NI is not. When an employee moves from category M to category A at 21 years old, employers NI is then also due.

When to update the category

Your employee's age on the date you pay them determines their NI category. If your employee turns 21 before your process date, you must change their category before you process their payment.

If your employee turns 21 after your process date, you must change their category before you process their next pay period.

How to check in your software

You can easily identify which employees are over 21 and have category M using Health Check, or Payroll Assistant depending on your software subscription. You can find out how to use these in the following guides:

• The Health Check option
• Check your employees using Payroll Assistant

Any identified employees show in the Requires Attention tab.

Processed incorrect NI category

If you've processed any employees using the wrong NI category, you must reprocess the affected periods correctly. How do I correct an employee processed on the wrong NI category?

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