National Insurance calculation

December 2023

Archive: this issue has been resolved.

What is the issue?

The team at Staffology Payroll found an issue in relation to an employee’s gross earnings for national insurance A system of contributions paid by workers and employers in the UK, which funds various state benefits, such as the State Pension and Jobseeker's Allowance. within a payroll run.

During an update on 24th October, where a payroll was still open for processing, the employees gross earnings for national insurance were reset to £0 for the open payroll period.

How do I know If I’m one of the affected employers?

We will contact with you via email.

If you haven’t had any email from us there is no action required.

How does this affect employees?

Directors who use the annualised method will have a period of national insurance contributions missed. There will also be one period of niable pay missed from their recent full payment submission Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee. to HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers..

Employees with a monthly calculation of national insurance will be missing one pay period of gross Niable pay from their recent full payment submission to HMRC.

What do I need to do?

Directors:

Director who use the annualised method will have their national insurance contributions recalculated in the following month and the short fall of contributions will be picked up.

No action is required by an employer.

Employees:

Employees that are active within the payroll will be corrected on the next available full payment submission.

No action is required by an employer.

Leavers:

Employees who have left the company will require a resubmission of their last available full payment submission.

Good to know...