Use this tab to specify the NI and PAYE details for the selected employee.

National Insurance

NI Reference

Type the employee’s national insurance number. The NI number might already be available from a number of other sources, such as directly from the recruitment process.

Certain validation rules are exercised to ensure that the format matches the profile required by HMRC and any exceptions are disallowed.

NI Category

Select an NI category code from the drop-down list. This is an integral item in the calculation of employee and employer national insurance contributions, so care should be taken to ensure this is the correct value. This data element might change when you attach an employee to a pension scheme to create a pension record. You can set a default for this field in the NI Category field on the Defaults tab of the Module Definitions window, which is applied to all new starters.


There are a number of mechanisms available to calculate the correct national insurance contributions for a director of your organization. This field notifies the system that this employee is a director and subsequent options described below will then determine the most appropriate way of calculating the contribution values.

Period Became Director

If the employee became a director in the current tax year, this field denotes this information. You might run a pay frequency that is not weekly and the calculation process accommodates this, but it is still necessary to provide the week number even if the employee is attached to a monthly payroll template. From this period onwards, the payroll automatically adjusts their NI contributions accordingly.


This field enables you to choose how the director’s national insurance is calculated. The normal principle for calculating a director’s national insurance contribution is that the annual earnings to date are taxed and continually revised period by period as with standard PAYE tax deductions. National insurance is normally a pay period tax.

If, however, the director was not initiated in the current tax year then they may opt to calculate the contributions on a period-by-period basis as for a standard (non-director) employee. This option is only available if the week reference described immediately above is empty — that is, they did not commence as a director in the current tax year.

This option is ignored in the final pay period of a tax year when all directors are calculated on an accumulated principle to ensure the full value of contributions has been paid in the year.

PAYE – TAX Details

Prefix, Code, Suffix, Period 1 Flag

Enter the employee’s tax code reference in the fields. This data item might be in place as a result of using the P45 wizard. You can set defaults for these fields in the PAYE Coding fields on the Defaults tab of the Module Definitions window, which is applied to all new starters. Enter the Prefix, Code and Suffix. Typical examples of recording the tax codes are:

Tax Code 1060L

Prefix Code Suffix

            1060     L

Basic Rate Tax Code BR

Prefix Code Suffix


D or K Tax Code

Prefix Code Suffix

D or K

In summary, D and K codes are the only elements you record in the Prefix field. Record the numeric element in the Code field and record the remaining element in the Suffix field.

Period 1 Flag

Select this check box to ensure only the earnings for the current pay period are taxed. You can use the Reset Week/Month 1 Flag wizard to change this setting from selected to clear.