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Level 1

National Insurance

Hi,

I have just added myself as an employee to my company payroll and will be paying myself £792 a month and the first payment will be on 31st May. I also want to pay myself the same amount for April as back pay. When i have viewed the draft version of the calculations QB is showing £95 ish in EE NI Contributions. Normally the contributions would be zero. My question is will these contributions be refunded next month when i revert to normal monthly pay or will i have to reclaim them from HMRC.

Thanks

1 REPLY 1
QuickBooks Team

National Insurance

Hello, airhostandclean.

 

QuickBooks Online calculates contributions and deductions depending on how they are set up in the account. Let me provide you information about this.

 

Once National Insurance (NI) is deducted, you'll not be able to receive a refund since the system treats National Insurance as normal pay. You'll want to 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.

 

For future reference, you can read this article for additional information: Directors National Insurance Overview and FAQ.

 

Ping me over if you need further assistance. I'll make sure to help you.