When you set up a director, you need to select the director's NI type. There are two types:
Cumulative Director: The NI will be calculated on a cumulative basis. This is recommended for Directors whose earnings fluctuate each pay period.
Period Director: The NI will be calculated on a period-by-period basis until the final pay period of the year, or earlier if the director becomes a leaver, when it reverts to calculating using the cumulative method.
Once you know which type is required, you can change the employee record into a director. To do this, follow the steps below.
Click Payroll, and then click Employees.
Find and select the required employee.
Click Open Employee, and then click the General tab.
From the NI Type drop-down menu, select the required type.
Click Yes, then Ok.
Enter the Director's Earning Period.
🤓Tip: The Directors Earning Period field is the number of weeks remaining in the current tax year from when they became a director.
Click Save and Close.