Splitting NI for 2 months work

Question

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 &pound;2500 made up of &pound;500 for May and &pound;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

Catherine W · Answer

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.

Sage 50 Payroll UK

Splitting NI for 2 months work

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING