Hello, kendal-sharp.
Thanks for coming back to us. I've got some details about NI letter on both Standard and Advanced Payroll subscriptions.
If you have the Standard Payroll subscription, delete and re-run the payroll for the current tax year. This will lead in adjustments to the employee's tax amounts.
I would recommend reading this article for more information before deleting the current year's pay runs: Delete a pay run in QuickBooks Online Standard Payroll.
You can also wait until the end of the fiscal year to make the necessary changes for the correct NI letter. Then, notify HRMC of the changes and request that they calculate the tax adjustments.
To change the NI letter:
- Go to the Payroll menu, then select Employees.
- Select the employee's name, then click Tax information.
- Choose the correct NI letter under the NI letter drop-down list, then Save.
If you're using the Advanced Payroll version, you can change the NI letter and have the system recalculate the tax amounts for you. However, I would still advise informing the HMRC of the changes.
To change the letter:
- Go to Payroll.
- In the Employees tab, find and select the employee's name.
- Select Tax and NI Details from the left panel.
- In the National insurance category drop-down list, choose the appropriate rate per the HMRC.
- Click Save.
If you want to check your payroll liabilities and other taxes, you can use QuickBooks' reports. One of these articles can help you become acquainted with them:
Should you have more questions while managing your employees in QuickBooks, don't hesitate to let me know so I can help you out.
