NI / RTI Details

This denotes the current employment status of the employee and is a view only option on this screen. The status options are:

• BLANK Current Employee
• S Starter
• E Excluded from payroll.
• L Leaver.
• R Reinstated.
• N Suspended.

This indicates the month or week tax period that the employee is next due for payment.

The employee's tax code in the format is denoted on correspondence from HMRC.

In order to identify individuals who will be subjected to the Scottish Rate Income Tax (SRIT), the HMRC will determine (via RTI inbound routines or via P45 for new starters) if a prefix of 'S' will be shown in an employee's tax code. This box will show the 'S' prefix where applicable on the FPS submission for an employee.

The default for this field is blank. It is intended for use when the Scottish tax code system takes effect in April 2016.

Enter 1 for this field if the Tax calculation is on a Week 1/Month 1 basis or leave this field black if the Tax calculation is on a cumulative basis.

The employee's National Insurance number. The format of the NI number is 'AANNNNNNA' (where A = an alpha character and N = numeric).

This denotes at what rate the National Insurance is deducted for both Employee and Employer Contributions.

Use the prompt to select from the valid options:

A - Not contracted out at full contribution rates (default).

B - Not contracted out at reduced contribution rates.

C - Not contracted out no employee contributions (employer's only)- For employees over pension age only.

H - Apprentice

J - Not contracted out deferred employee contributions.

M - Not contracted Out under 21 years of age

X - No National Insurance Contributions

Z - Not contracted out deferred employee under 21 years of age

Note:

• When an employee's NI code is changed, the system will automatically store the previous code and contributions. Up to four changes per tax year can be accommodated in this way.

• A warning that the apprenticeship is not eligible for NI rebate would appear when it is found that the Apprentice date range is out of range in accordance with age.

• NI Letter 'H' applies starting April 6, 2016. A Start Date is required in order for the 'H' to operate.

• When an employee has no NI Letter, a default value is used. This value depends on the Age and Next Pay Date:
  • Employee Age is under 16 - X
  • Employee Age is between 16 and under 21 - M
  • Employee Age is above 21 - A

  A warning message, "Default NI Table Letter inserted according to age - check and amend if necessary" is displayed on the Diagnostics Report so that a user may validate the values.

  When a user enters a value that is not compatible with the employee's Date of Birth and ranges shown above, another warning message will be displayed on the Audit Report or Diagnostic Report saying, "NI Table letter not compatible with employee age."

  Click this link to view Frequently Asked Questions (FAQs) on employing people under the age of 21.

  Click this link to view Frequently Asked Questions (FAQs) on employing Apprentices under the age of 25.

• A validation is performed when NI Letter 'B' is used on this screen. When no validation is entered, the following message will be displayed, "Insufficient details for NI Code B, please click the NI Table Letter Validation button and supply that required information".
• A warning message "NI Category X applied - Employee is over 16 and has no Expat or Pensioner flag set - ensure correct use" is displayed in order to avoid issues caused by the incorrect use of 'X'. The correct reasons for the use of 'X' include:
  • Employees under the age of 16
  • Pensioner report
  • Expat/EMP6
  • Payment to a deceased worker (i.e. Leave Reason 99)
  • CIS scheme Payroll
  • 'Drawing' Payroll
  • Expenses only Payroll

If your employee has a National Insurance deferment notification, enter the date of the deferment.

• Deferment Category Table letters 'J' and 'Z' require a determent date in accordance with the Deferment Certificate expiry date (i,e. only valid for that Tax Year). When a valid date in the new Tax Year is not entered, or the expiry date has elapsed, the system will automatically default to the Standard NI Table Category according to age:
  • When the employee is an Apprentice and 21 years or older, then 'A'.
  • When the employee is an Apprentice and under 25 years of age, then 'H'.
  • When the employee is under 21 years of age but over 16, then 'M'.

   

Enter the date of the National Insurance deferment expiry date.

Enter the form name received from the HMRC.

Enter the expiry date of the official documentation.

This is the official documentation used to verify the employees age, e.g. a Passport or a Birth Certificate.

This field is used to flag employees who are pensioners for Year End purposes. Tick the box if the employee is a pensioner.

This field needs to be set as follows:

Y if the employee is a director and Director's National Insurance calculations are to be applied on an annual calculation basis, or

P if normal National Insurance calculations are to be applied.

Blank if not used.

If the "Director Basis" field is set to Y or P, enter the Week Number that the director status was started. The format of the field is two (2) numeric characters and must not exceed the number of weeks in a year.

This field is used to flag employees who are students for checking of taxable earnings paid against statutory allowances.Tick the box if the employee is a student.

This is the employee's unique identifier and is generated automatically by the system. It is used to identify the employee to HMRC on the Full Payment Submission file.

Tick the box provided if your employee is paid on an irregular basis, for example:

• Casual or seasonal workers whose employment contract continues;
• Employee's on maternity, adoption or paternity leave; or
• Employee's on long term sick or leave of absence and will not be paid for a period of three months or more - however they are still regarded as employees.

Tick the box if payments are made to a body, such as personal representative, trustee or corporate organisation.

Tick the box if your employee's pay in this pay period has been reduced due to being on strike.