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My director isn't paying any national insurance this month

Created on  | Last modified on 

Summary

If your director isn't paying any national insurance (NI) this month, there are a number of reasons why this might be happening.

Resolution

  • The employee is set to manual NI entry. Ensure the Manual NI Entry check box is clear. To check, open the Employee Record and check the Employment tab.
  • The employee hasn't yet earned over the Primary or Secondary Threshold for NI - Director's NI is calculated on a cumulative basis.
  • The payment being processed isn't subject to national insurance. Ensure that the payment listed in the Payments tab of Enter Payments has 'Pre' in the NI column.
  • The employee has a pre-NI deduction set up, reducing the Earnings for NI. To check the employee's Earnings for NI, go to Enter Payments, click Information then click National Insurance. The Earnings for NI appear in the right-hand pane.
  • Ensure the employee has the correct NI category and date of birth entered in the Employee Record. Employees on NI category X, or who are under 16 years of age, don't pay NI.

 

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