Set up and manage company directors in QuickBooks Core Payroll

Learn how to add or remove a company director in your payroll.

In QuickBooks Online Core Payroll, directors are set up as employees. Their National Insurance Contributions (NICs) are worked out on their annual income, rather than their monthly or weekly pay.

Adding a company director

To add a company director, follow these steps:

1. Follow this link to complete the steps in product
2. Add a new employee or select an existing one.
3. Go to Tax information and click Edit or Start.
4. Tick the Company director checkbox. 
5. Add their appointment date.
6. Select the director NIC calculation method:
   • Annual method – for irregular payments (e.g., largely bonuses). Note: cannot be changed during the tax year once payments begin.
   • Alternative method – for regular salaried payments.
7. Save to apply.

Removing a company director

If the director is leaving:

• Issue and provide the P45.
• After final payment, delete the director's NIC calculation method in the Full Payment Submission (FPS) and notify HMRC.
• Deduct any outstanding NICs from their final pay.

If the director stays on as a regular employee:

• Follow this link to complete the steps in product
• Select the employee and open Tax information.
• Untick Company director.
• Save changes.

Note: The director continues to be treated as such for NIC calculation until the end of the current tax year—which ends on 6 April.

More help

Looking for guidance on navigating QuickBooks Online Core Payroll? Check out this resource page with how-to guides to help you.