Payroll Help
Use the Adjust NI command (accessed from the Payroll - Utilities menu) to make changes to an employee's NI figures retrospectively for the current tax year only. This might be necessary if you have inadvertently used the wrong NI category code for an employee and therefore need to adjust the employee's and employer's NI figures from the pay period in which the wrong code was first used up to, and including, the current pay period.
Before you can adjust National Insurance contributions you must have created a deduction profile (Payroll - Maintenance - Deduction Profile) with a type of 'N' for NI Adjust.
Important: Take a backup of your data files using the System - Utilities - Backup command beforehand.
If an employee has been overpaying NI, the resulting adjustment produces an NI refund which will be shown on the payslip. You will recover the NI through the corresponding deduction from the next P32 figures.
If an employee has been underpaying their NI, the additional amount of NI due might exceed the employee’s pay for the period or may result in a significant deduction from the employee's pay for the period.
A warning is shown when you use the Calculation command and you might need to adjust the employee’s payments to ensure that any NI underpayment can be covered. You might want to enter a temporary ‘one off’ ‘non-taxable, non-NIable’ payment to cover the amount of NI underpayment and then recover that money from their employee on an ongoing basis (using a reducing balance deduction similar to that of a loan repayment).