Sage payroll recalculated directors salary in YTD basis

blessinga

Hi Everyone,
I have just joined the forum and have a question.
I am processing 12 month salary for a Director, this was paid in March 2013. She was paid £625 per month from Sept to Feb. Then £3000 in March. Her total earning for the year are not up to £7605(2012/2013) for NI purpose.
Sage recalculated her 12th month salary on YTD basis, causing her to be liable to Employer NI and Employee NIC.
I really need help on how to get this sorted, She is not suppose to pay NIC, she have been a director since 2009, but just went on payroll on Sept. I don't think pro rate personal allowance rule applies to her her.
our Sage legislation is up to date. Any advice will be highly appreciated.

Regards
BA

Rozzi Rainbow

Director's NICs can cause problems on Sage! Month 12 is always recalculated on a YTD basis, that's how director's NICs have to be calculated.

I think your issue could be because she only went on the payroll from Sept, Sage thinks she only became a director then, and is only giving her a pro rated allowance. If you don't automatically go in and change it when you add the employee, it defaults the date directorship began to the current processing date (which is really silly). To check this, go on the YTD figures, I think from the Employment tab, and then select Director's NICs and see what shows for date directorship began, and change it if necessary.

This should solve your problem, I hope.

blessinga

wow! That was so easy, Thank you so much Rozzi, I have sorted it out now.