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ERS NIC for directors bonus part-way through year

Employers NIC for Directors

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I'm almost certain that I'm correct in my thoughts, but am beginning to doubt myself...

What should the ERS NIC for a director receiving a bonus of £10,000 this month?

They have had no other salary/bonus from the company, and been a director for many years. 

I believe that it should be £260.54, calculated as £10,000 less £8,112 x 13.8%.

Please tell me if I'm missing something fundamental, as Sage is giving me an amount of over £900.

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10th Nov 2016 11:38

Moneysoft confirms £260.54

Thanks (1)
10th Nov 2016 11:51

That's great thanks - Will have to get onto Sage and see what the problem is.

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to TheLambtonWorm
10th Nov 2016 11:59

TheLambtonWorm wrote:

That's great thanks - Will have to get onto Sage and see what the problem is.

I would just check that the employee is definitely ticked as being a director first, have seen that missed a fair few times

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By DJKL
to TheLambtonWorm
10th Nov 2016 11:59

Check the tick boxes re director/ annual as these are likely culprits.

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By jcace
10th Nov 2016 11:58

You need to check that your Sage settings have the individual as a director (from whenever he/she was appointed), with NI to be calculated cumulatively

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10th Nov 2016 12:09

I don't process the payroll myself, but the person who does it ensured me that the director/cumulative boxes were ticked.

Apparently as this is the first time the director has been paid through Sage payroll, a start date has to be entered, which has been done as 06.04.16 - I first thought it could be some sort of apportionment issue.

Perhaps there's something wrong with Sage, although it's more likely something done wrong at our end.

I'll phone Sage and see - I just wanted to make sure my understanding was correct and that I wasn't going barmy before I do.

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10th Nov 2016 13:54

You need to check your settings, they have been input incorrectly.
A start date of 06/11/2016 gives employer's NIC of £906.38. Is this the figure you have?

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to Wanderer
10th Nov 2016 14:09

That was the problem as it turns out.

I was assured that the start date was entered as 06.04.16 when I first queried the problem too. Frustrating!

Thanks all for the comments.

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