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Innes1
April 17, 2020
Solved

Employee/employer NI is calculating on gross salary, not salary after pension and salary sacrifice deductions. How can we exclude certain salary items from NI calcs?

  • April 17, 2020
  • 1 reply
  • 8 views
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Best answer by payment after leaving

I'be been advised salary sacrifice isn't available using the standard payroll and that it is not possible for the NI to discount salary sacrifice deductions.  We have been recommended to migrate to advanced payroll which can account for such deductions.  Salary sacrifice is a basic tax calculation, widely used in the UK.  Why do we need to pay for advanced payroll software for a basic tax calculation?


Hi Innes1

 

We have replied to your social media post. The standard payroll is for the very basic payrolls hence the reason you are not able to account for salary sacrifce, you are however able to account for such deductions using the advanced payroll..

1 reply

MJoy_D
MJoy_DQuickBooks Team
QuickBooks Team
April 17, 2020

Hello, @Innes1. 

 

The system calculates contributions and deductions depending on how they are set up in the account. You need to check the employee’s profile to ensure the National Insurance Tax is added correctly.

I've included our QuickBooks Online Help Articles hub in case you need some information for your future tasks.

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to lend a helping hand.

I
Innes1Author
April 20, 2020

I spoke with support last Thursday, they checked the setup, took some screen shots and said they would be in touch via e-mail. I have had no response.  The support checked the employee profile and could see no errors with the setup.  Our Accountant has checked the figures and it looks like the NIC contributions are being calculated on Gross salary, before salary sacrifice deductions, therefore the employee and employer are not receiving the reduced NIC contributions through the salary sacrifice scheme.

P
payment after leaving
Level 10
April 20, 2020

Hi Innes1

 

Which payroll system are you using, standard or advanced? Is it possible to PM us via Facebookd or DM us via Twitter and provide us with the email address associated with your QUickBooks account and or case reference number relating to when you contacted us? If you are able to do this please included your community name Innes1

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