Hi guys, I hope someone might be able to help me out please?!
I'm having a play about with Sage Payroll and I've entered an individual, as a director, for sage to calculate the NI contributions as per the tax tables. Sage calculated this correctly for my fake "month 1" for the employee's NI contributions, but didn't include the employer's contributions of 12.8%. I thought that as a director, my fake person would have to pay employers NI contributions too?
Does that mean that if I calculated it manually, using the exact percentage method, I wouldn't include the employers NI contribution for my month 1 too?
You need to set the director to "director table method" then you will get employer NI. It's all to do with the way NI is applied to directors on an annual basis but if you have one paid monthly you can do all the calcs monthly.
I did exactly that, yet it seems not to include employers NI. However, when I click the button "director's final pay", the figure for NI rapidly increases. I'm working on the assumption that Sage would therefore calculate the employer's NI nearer the year end, rather than on an ongoing basis.
If you have entered on the Employment tab on the individuals record card that he is a Director (Table Method), it should calculate the NI correctly. Check all the entries, NI category, payment frequency etc.
Where are you looking to see if the NI has been calculated for employers?
I put the person in as Ni category A, and I have checked the NI tables for this year and Sage has calculated employee's NI correctly. The person is entered in as a director (table method), yet there is no calculation for the 12.8% payable for employer's contributions in Sage. For the purposes of finding out more about the program, shall I enter the figure manually do you think?
I'm looking on the main payment page - when you process the payroll - which lists the gross pay along with all the deductions (tax, NI, SMP etc), and then following it through to the month end, posting the month and then reviewing the person's net. I can't find any deductions for employer's NI at all!
try going into Pre-update reports and running the Payment Summary (Part2) under the Summary section and see there. I think you may be looking in the wrong place.
Thank you - that's solved it. I thought that the employer's NI would appear on the payslip - but that would be stupid wouldn't it - I would assume, therefore, that employer's NI is a private expense to be paid periodically by the directors.
The Employers NI is to be paid each month along with the Tax and Employees NI deducted from the employee.
If you print out the Payment Summary parts 1 and 2 after you run the payroll, this will confirm the gross salary, net to be paid and you can work out the amount to be paid to HMRC for tax and NI. You will also need this info for your journal entries in the accounts.
After you update the month in question, you can then print the P32 for that month, to double check you are paying the correct amount across.
