Directors National Insurance in QuickBooks Online Payroll

It's great to see you today, Amanda13.

Thanks for the detailed information about your concern. I want to ensure the director's payroll is in tiptop shape.

Since this is your first question here in the community, let me take the time to welcome you to the Quickbooks Family. To resolve the issue, you’ll have to review the employee's information and make sure the setup is correct.

Here's how:

1. Go to Employees on the left panel, then select Employees.
2. Click on the employee’s name.
3. On the Profile page, go to the Tax information section.
4. Click on the Pencil icon.
5. Review the information.
6. If the NI Category and Tax Code information are incorrect, enter the correct one in the NI letter and Tax code fields.
7. Make sure to select Yes in the Company director section, then choose the appropriate calculation method.
8. Fill in the fields.
9. Click on Save.

I'm adding screenshots for visual reference:

Moving forward, the director’s payroll should calculate the right amount.

Let me know if you need further assistance with any of these steps. I’ll be right here to help.

Thank you all the settings are correct. Why is it only calculating NI in month 12. The directors are paid £702per month there should be no NI payable. Please help?

Hi Amanda13

With the figures that you have provided you are correct that with an additional payment in month 12 of £702 added to YTD of £7722 the amount should be £8424 which is the threshold for NI and there should be no NI being deducted.

Are there any figures within the YTD section of the director in question?

Hello

We have:

This Employment Taxable Pay - £2106 (£702 x3 = £2106 3mths carried forward)

NIable Pay - £2808 (?? I can't find where this figure has come from)

These were c/f from our previous payroll software as we started payroll suite mid way through the tax year in month 4.

Am I right in thinking that there should be no NIable pay c/f for directors?

Many thanks

Amanda

Thanks

Amanda

Hey @Amanda13

I think I might be close to an answer for you; based on the information provided so far, my maths tell me you'll be expected to pay £62.64 - don't worry, I'll explain. We're still £20 away from what the system is charging you.

What i'd like to know at this moment, is what appointment date have you got for this director in the settings?

Director 1 start date 16/01/2014

Director 2 start date 01/07/2015