Use this tab to record the NI thresholds and percentages for the various NI categories for both employee and employer percentage contributions. The values must be the statutory values described by HMRC for the current payroll period.
Check that these values conform to the government-supplied paperwork before proceeding with the remaining functions of the payroll system. You should change these values only when government legislation requires you to change them. Take great care to ensure the values you record are accurate, because system deductions are calculated in accordance with these percentages and limits.
Unlike the tax tables, these values are not specific to each template but applicable to the organization’s payroll. These values are not used until the next payroll calculation is made, so it is recommended that you change these values at the very start of the period when they become applicable. You can import these statutory values into the system after you run your year end process, in preparation for the new tax year.
The earnings limits and thresholds are normally described in each template, because these are appropriate to the pay period — such as weekly, lunar, monthly, and so on. If you implement one template, you can store these values here because they are used when no details are defined at template level.
If you are paying directors through a template, one recognized method of calculating the national insurance deduction for a pay period involves the consultation of annual earnings limits and threshold and in these circumstances these values are also required.
For information about the details you enter on the Child Care tab, click here.