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 steps below.
Click Employees, and then click Records.
Find the required employee, and then click View Record
.Click the Government tab, and then click Edit
.Click the NI Letter drop-down, and click the new letter.
Click Yes, and then enter the effective date of the new code.
Click Save.
Access Payroll 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, Access Payroll 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.