Quickbooks and Employers NI

[gmaz]

I'm running the first payroll with the updated Employer's NI threshold now at £5000 but it is not showing in the payroll details. Do I need to do anything in Quickbooks to add the Employers NI? This is a standard director's salary at £12,570 so I would expect Employer's NI on £7,570 of that. My accountants can sometimes take a few days to respond to emails so checking here too.

[Eric Mc]

Have you ticked a "Director" box when setting up the payroll for the individual?

Directors' NI kicks in only when the accumulated salary breaches the annual threshold.

There is an option where you can elect to calculate NI on a director's salry just like a normal employee if you want to.

[gmaz]

Eric Mc said:

Directors' NI kicks in only when the accumulated salary breaches the annual threshold.

OK, so after paying myself for about 5 months, then it will appear?

[Eric Mc]

That's my guess.

Have you opted to be NI'd as a director?

[gmaz]

Yes director is ticked.

[Eric Mc]

I think that will explain it then.

You could untick the box and see what happens

[gmaz]

Finally got a response from my accountants

"For directors, the Employers NI Contributions are worked out from your annual earnings, rather than from what you earn in each pay period, so you will not be deducted until you have reached the threshold of £5,000."