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Innes1
Level 1

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

 
7 REPLIES 7
MaryJoyD
QuickBooks Team

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

Hello, @Innes1

 

The system calculates contributions and deductions depending on how they are set up in the account. You need to check the employee’s profile to ensure the National Insurance Tax is added correctly. Also, you can reach to our support team to see if they have another way to review this calculation.

 

Here's how to contact customer support:

  1. Go to the Help icon located in the upper right-hand corner.
  2. In the Help window, click the Contact Us button located at the bottom.
  3. Enter your concern, and select Let's talk.

I've included our QuickBooks Online Help Articles hub in case you need some information for your future tasks.

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to lend a helping hand.

Innes1
Level 1

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

I spoke with support last Thursday, they checked the setup, took some screen shots and said they would be in touch via e-mail. I have had no response.  The support checked the employee profile and could see no errors with the setup.  Our Accountant has checked the figures and it looks like the NIC contributions are being calculated on Gross salary, before salary sacrifice deductions, therefore the employee and employer are not receiving the reduced NIC contributions through the salary sacrifice scheme.

John C
QuickBooks Team

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

Hi Innes1

 

Which payroll system are you using, standard or advanced? Is it possible to PM us via Facebookd or DM us via Twitter and provide us with the email address associated with your QUickBooks account and or case reference number relating to when you contacted us? If you are able to do this please included your community name Innes1

Innes1
Level 1

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

We are using standard payroll.  As requested, I have sent a DM to QuickBooks UK on Twitter and included the details you requested.

Innes1
Level 1

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

I'be been advised salary sacrifice isn't available using the standard payroll and that it is not possible for the NI to discount salary sacrifice deductions.  We have been recommended to migrate to advanced payroll which can account for such deductions.  Salary sacrifice is a basic tax calculation, widely used in the UK.  Why do we need to pay for advanced payroll software for a basic tax calculation?

John C
QuickBooks Team

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

Hi Innes1

 

We have replied to your social media post. The standard payroll is for the very basic payrolls hence the reason you are not able to account for salary sacrifce, you are however able to account for such deductions using the advanced payroll..

orris
Level 1

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

I am having the same issue on Advance payroll. I am trying to migrate from Sage payroll. the advice I finally received was go back to using Sage payroll for this month.

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