Why does Employer NI still show full amount in payroll breakdown when Employment allowance is on in settings?

Hi evident2004

Which payroll system are you using, standard or advanced? Is the employment allowance being accounted for on the P32 and when you referr to 'showing on the payroll breakdown', where are you referring to?

This is a known (further) problem with the rubbish payroll product QB are offering.

Hello there, websolprov,

Our Product Team is aware of this behavior. However, they provide a workaround to reduce the Employer NI.

Please refer to this post: https://quickbooks.intuit.com/learn-support/en-uk/employees-and-payroll/re-employer-ni-expense-not-b..., then follow BigAl42 post in creating a journal entry. This will help you on how to handle the Employment Allowance correctly in QuickBooks Online.

Should you have follow-up questions, don't hesitate to leave a comment below. I'm always right here to help.

Hello Community Users, we just wanted to update this thread. If you're experiencing this problem, with Employment allowance if you can check the settings to make sure employment allowance is activated to be included in the journals. To do this go to the payroll settings>HMRC settings>select the edit pencil symbol in the will you be claiming employment allowance section>select yes in the include employment allowance in journals and then save. Any questions please just reply to this thread. Thanks