Employer National insurance for directors - will I need to report it with a separate nominal code?

lenacarter

Hi everyone,

I am investigation the opportunities available when using cloud accounting software and the link with an external payroll software.

We currently present the employer National Insurance element in two different nominal accounts, ie. employer's NI for the directors is posted to a different nominal code to employer's NI for other staff. Gross salary is done in the same way.
In the payroll software we use, I can differentiate the gross salary accounts, but there is no way of using two different codes for employer NI if I would like the payroll software to automatically post the salary journal into our accounting software.

Is it a requirement to show the directors and staff element of the employer national insurance separately in the accounts?

Thanks in advance.

davealucas

I don't think that it is necessary to post Director's NI to a separate nominal code, they are all classed as employees after all.

lenacarter

Thank you for your feedback. That makes the use of automation a little easier.