Historical NI Changes

This facility has been provided to cater for the situation where an employee has been paying National Insurance Contributions against the wrong NI Category for a number of periods, and you wish to retrospectively switch the employee to the correct NI Category and adjust the NI payments for both Employee and Employer.

The first action is to move the Employee onto the correct NI Category in Employee’s Payroll Details.

The Historical NI Changes wizard can be used to move the required Historical Values to the correct NI Category.

The Employee ID for the presently selected record is defaulted to the screen, but can be amended either by Direct Entry or by using Browse to search for the required Employee.

The year is set to Current Payroll and cannot be amended, (i.e. adjustments can only be made to the current tax year).

Period should be set to the first period of the tax year for which you wish to convert the NI Payments.

All Periods Thereafter should be ticked if you wish to change all the periods between the entered periods and the last completed period. Leaving the box unticked will just process the single defined period.

Click Run.

The values for each specified period will be removed from the old NI Category year to date values.

The values for each specified period will be added to the new NI Category year to date values.

The NI override screen will be updated with any differences that the system calculated between what was originally set against the old NI Category, compared to what would have been set against the new NI Category if that had been in place at the time.

The result of running this process is as follows:

  • The old NI Category year to date figures should be correct.
  • The total of the new NI Category figures, plus the overrides should be correct.
  • Depending on the old and new NI Categories, an under or overpayment of NI may have occurred, which will be taken care of by the overrides.
  • When the next period end is run, the current this period figures and year to date figures will accumulate for the new NI Category and should be correct in the future.