If an employee has received a change in NI letter that took place in a previous period, you will need to action a backdated NI letter change. To do this, follow the relevant steps below.
Employee record
Click Payroll, and then click Employees.
Select the required employee, and then click Open Employee.
Click the General tab, and then click the NI Type drop-down.
Select the required NI letter, and then click Save.
A window will appear, select the period this change is from.
Click Save and Close.
Amend pay
Click Payroll, and then click Run Payroll.
Find and select the required employee.
Click Change Tax and NI, and then click the NI Letter drop-down.
Select the required NI letter, and then click Save and Close.
📌Note: If you are not in the first period of the tax year, SelectPay will ask you what period you would like the change to take effect.
SelectPay will calculate the full NIC adjustment, which will be reflected on both the FPS and the statutory return for that period. Due to legislation, employee NIC will be limited to no more than double what would have been paid in that period. This may appear as a discrepancy between reports and the FPS.
Where EE's NIC is owed, but the employee doesn't earn enough, SelectPay will carry the retrospective adjustment over to the next tax year. If the employee continues to earn a lower salary and no EE's NIC is taken, the owed EE's NIC is written off at the end of the second tax year.