When you set up a director, you need to select the director 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.
Click the NI Type drop-down, and select the required type.
Click Yes, then Ok.
Enter the Directors Earning Period.
🤓Tip: The Directors Earning Period is the number of weeks remaining in the current tax year from when they became a director.
Click Save and Close.