Process Type for National Insurance Additional Info

The Process Type indicates how to calculate the national insurance (NI) contribution for special situations, such as director's fees, irregular payments, and multiple payments in the same period. The payroll process automatically performs the correct NI calculation for the process type you select.

The Process Type field appears on the NI Additional Info section of the Statutory Deductions calculation card and supports the values described here.

Irregular Periods

Select Irregular Periods if the employee isn't paid on a regular weekly or monthly basis, and you want to calculate NI on a daily basis. In the Number of Periods field, enter the number of days that comprise the processing period (the number of paid days since the last payment).

Note: You can't select Irregular Periods if the calculation card is associated with multiple assignments.

Director Annual

Select Director Annual if the employee is a director, and you want the application to calculate NI on an annual basis, irrespective of the frequency of the payroll the director is assigned to. If the person became a director part way through the tax year, complete the Date Became Director field; the application prorates the annual calculation based on that date. If the person became a director at the start of the tax year, you can leave the Date Became Director field blank.

Director Periodic

Select Director Periodic to treat the director as a normal employee for NI purposes until the last pay period in a year, when the NI is recalculated as a director annual period.

Note: If you ran a payroll when the Process Type was Director Annual or Director Periodic, you can't change the Process Type until the start of the next tax year.