Set up Employment Allowance in QuickBooks Online Standard Payroll

Learn how to set up Employment Allowance in Standard Payroll.

The Employment Allowance allows certain businesses who employ workers to reduce their yearly Employer Class 1 National Insurance by up to a maximum of £5,000 each tax year.

See if you qualify on the HMRC website. Or, if you're not sure of your eligibility, read the employer guidance.

Note: If you qualify, you'll need to tell HMRC directly.

Set up Employment Allowance in QuickBooks

If you're setting up payroll for the first time, select Employees or Payroll menu, then Set up your payroll and follow the instructions.

1. Select the gear icon, then Account and settings.
2. Select Employees or Payroll menu.
3. Next to Employer NI relief, select the pencil icon.
4. If you qualify, select Yes, I qualify. We'll create an EPS filing stating that you're eligible and prompt you to submit the EPS to HMRC.
5. Enter how much Employment Allowance you've used this tax year. Sign in to your HMRC account (PAYE for Employers) to find this amount.
6. Select Save. You can send an EPS now to let HMRC know that you qualify or do it later.