NIC refunds when staff leave part way through the year

NIC refunds when staff leave part way through...

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Hello

I am trying to get my head around payroll. I am a novice and I will be booking myself on a course shortly to get up to speed.

I have bought moneysoft payroll which is very good and easy to use but I have come across my first obstacle. 

A staff member is leaving, and the ee's NI and er's NI has been paid on the assumption that they will be working for the whole year. Moneysoft has calculated the tax refund which will be added to his net pay, however the employer and employee have paid NI and the money paid is now below both thresholds.

Do I claim this back somehow for the employer and advise the staff member to claim back NI?

Many Thanks

Leigh

Replies (3)

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By stratty
22nd Oct 2013 11:22

National Insurance

NI is calculated on a payment by payment basis and unlike PAYE Tax does not consider a year to date position.

It sounds like you have calculated NI incorrectly or are misunderstanding something.

 

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By Rachael-SimplifiedAccounting
22nd Oct 2013 11:26

NI is based on weekly earning levels ..

http://www.hmrc.gov.uk/payerti/forms-updates/rates-thresholds.htm

See the above, NIC payments are based on weekly earnings.

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By LeighM
22nd Oct 2013 11:30

Great

Thanks very much. I thought it was based on cumulative wages but the weekly thing makes sense. 

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