Quickbooks registering too much tax for Director salary

Hello KateHes1, 

Welcome to the Community page, 

Can we ask which payroll it is you are using in Quickbooks is it Advanced or Standard? 

Hi.  It's Quickbooks standard

Thanks KateHes1, Have you checked that the Year to date figures and tax codes, etc is correct? Becky

Okay katehes1, Thanks for getting back to us, We still need to check a few things to ensure set up correctly, Have you got the Director NI on or off? This is situated in the employee details section of the payroll. And do you have any figures in the payroll history? and what pay period is it that your running? Becky

I would love some help with this as well please, as i am doing the exact same thing, and am being taxed quite a bit. 

Many thanks in advance!

Hello STBooks, Are you using standard payroll or advanced? What is the amount that is being deducted tax-wise? How much has been pay has been paid YTD?

Hi EmmaM, thanks for the reply. I'm using standard payroll. The amount of tax being deducted is £623.60.

This is the first payment in the tax year - so zero, and then this pay is for £12,500. Thanks.

Thank you for getting back to us, @STBooks.

Please try to check if you have selected Employment Allowance in your account. You also need to enable this option to reduce the National Insurance Contribution (NIC’s) liability. You can do it from the Gear icon. 

Here's how:

1. Go to the Gear icon and select Accounts and Settings.
2. Find Payroll and select Employer NI relief section.
3. If you qualify for Employment Allowance, select Yes.
4. Click Yes if your business falls within the eligibility criteria for State Aid.
5. Select the box that is most relevant to your business sector.
6. Click on Save.

You can check this article for more information: Changes to Employment Allowance in 2020/21. 

I'm always here if you have follow-up questions. Take care and have a wonderful day!