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G_P
Level 1

Mid-year starter, NI above LEL but Below £9500

I have a starter that will be above the LEL but will end the year below the threshold of £9500. To my understanding that employee would not need to pay NI contributions for the year. QuickBooks payroll calculates NI; Is this correct? How would I later process the refund or does the running total automatically adjust towards the end of the tax year?

1 REPLY 1
RCV
QuickBooks Team
QuickBooks Team

Mid-year starter, NI above LEL but Below £9500

Thanks for checking in with us, G_P.

 

QuickBooks Online (QBO) calculates contributions and deductions depending on how they are set up in the account. Once National Insurance (NI) is deducted, you can receive a refund since the system treats National Insurance as normal pay. We can add it as earnings or additional pay type so it won't calculate taxes. Here's how:

  1. Go to Employees, then select Employees.
  2. Select the applicable employee.
  3. Select Actions (at the top right of the page), then select Additional pay.
  4. Select or search for the pay type you want to add. If you can’t find the pay type you’re looking for, you can add it.
  5. Select Actions to add any of the following:
  6. Save your changes.

Please visit this article for detailed steps: Add or Customise Other Pay Types in QuickBooks Online Standard Payroll.

 

If you need further assistance with processing refunds or adjusting the running total towards the end of the tax year, it would be best to contact our Customer Support Team. They'll pull up your account in a secure environment and help you with this one: Here's how to reach them:

  1. Go to the Help icon on the top right. 
  2. Enter your concern in the search field.
  3. Choose Talk to a human.
  4. Click the OK. To get you to the right human, in a few words, tell me what you need help with option and tap I still need a human
  5. Press Contact us.
  6. Tick Continue
  7. Choose Message an agent or Get a callback.

 

I'm including these articles to know more about the NI in QuickBooks:

 

I'll be right here to continue helping if you have any other concerns or questions about QuickBooks. Assistance is just a post away. Have a great day.

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