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Splitting NI for 2 months work

ANNA1
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Hi 

I have an employee who started on 26th May but was missed off May's payroll.

So on 30th June he'll be paid £2500 made up of £500 for May and £2000 for June.

National Insurance needs to be calculate on the 2 amounts separately so he gets 2 months of NIC allowances.(NIM08310)

I can't put through pay for May and submit an FPS for May as they weren't paid anything in May.

So when processing June's payroll, how can I calculate the NI?

It's also my understanding that  the NI contributions should be recorded on the employee's payroll record for the separate tax months i.e tax month 2 and 3. How can I do that?

Thanks

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  • 0
    SUGGESTED

    Hello Anna

    This guide may be help you Override the automatic NI Calculations

    But while it is correct that the legislation states calculate the NI separately for the 2 different pay periods, the multiple payroll teams I have worked in have never done this for a new starter.  The NI has always just been calculated on the amount paid in that pay period regardless of when earned.  I actually can't think of any software that does that automatically or even flags that it could be an issue.

    I'd also say they weren't missed off May's payroll - it looks like they started well after the cut off for May payroll.

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  • 0
    SUGGESTED

    Hello Anna

    This guide may be help you Override the automatic NI Calculations

    But while it is correct that the legislation states calculate the NI separately for the 2 different pay periods, the multiple payroll teams I have worked in have never done this for a new starter.  The NI has always just been calculated on the amount paid in that pay period regardless of when earned.  I actually can't think of any software that does that automatically or even flags that it could be an issue.

    I'd also say they weren't missed off May's payroll - it looks like they started well after the cut off for May payroll.

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