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 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 Type drop-down, and click the required option.
Enter the director's earnings periods.
🤓Tip: The Director's Earning Period field is the number of weeks remaining in the current tax year from when they became a director.
Click Save.