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Post Info TOPIC: Directors NIC??
setmoa


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Directors NIC??
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Hi

I have just started the payroll for a small company and one of the employees is also a director.

I have entered them onto Sage Payroll for the months of April and May 2011 as a director and it has come up as taking no national insurance from them at all so far.

Is this correct?

Any help would be appreciated.

thanks

Ally



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gbm


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Yes, there are two ways of dealing with NI for directors:

1. The normal way like for normal employees.
2. A cumulative way, where they don't have any NI deducted until they reach the threshold and then the balance of their earnings is subject to the standard rate of NI.

Both ways should give the same results for the year assuming that the director earns over the NI threshold in the year.


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setmoa


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Thanks, do you know which ones which in Sage Payroll: 'director' or 'director table method'?

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gbm


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Sorry I don't, I use Moneysoft and you have the choice of which method you use.

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semsley


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setmoa wrote:

Thanks, do you know which ones which in Sage Payroll: 'director' or 'director table method'?

 

 If you tick the "director" box Sage will calculate on the annual method.



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