Employer National Insurance

1

I am showing an employer national insurance contribution on the latest payslip.

I am not sure how to record this on the payslip in Manager. My understanding is that the employer (the company) pays the employer national insurance contribution, but I can’t see where to put it. It’s not earnings obviously, deductions I would have thought was employee deductions and it’s not a contribution which I believe is for things like pensions.

How do I record the employer national insurance contribution on the payslip?
I assume that once I have the employer national insurance contribution on the payslip, I can then use bank to pay HMRC the amount?

2

Please read this guide, Set up payslip items | Manager

in particular the sections Deduction Items and Contribution Items

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3

It is a contribution as also posted by @Joe91. Why it is seen as contribution you may look forexample at UK National Insurance: introduction: How much you pay - GOV.UK more specifically [emphasis added]:

How to pay

You pay National Insurance with your tax. Your employer will take it from your wages before you get paid. Your payslip will show your contributions.

4

National Insurance has two components - an employer charge and an employee charge

One is a deduction and the other a contribution in Manager parlance

5

I looked at the guides, but I was looking at the new guides, not the old ones. I have also looked at the HMRC link, but that is more relevant to employee nic.

I will ask my accountant to ensure that I get this right. The National Insurance that I am talking about here is the employer charge, not the employee charge. Even the old guide doesn’t really explain how the employer charge works. The employee NIC would be deductions, but I am not deducting anything from the employee salary - or at least I don’t think I am.

6

It’s a Contribution Item

The relevant entries are
Debit Wages & Salaries (or whatever account(s) you use to record employee costs)
Credit a National Insurance Liability account

When you create the payslip, it will correctly record the amount
When you pay the national Insurance, you make a payment and select the National Insurance Liability account

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The amount will appear on the payslip but will not be deducted from the employee amount

7

Oh I see.

I need to go into Settings, Payslip Items. Then select Payslip Contribution Items. Then I add the National Insurance Liability account - which I should create in Chart of Accounts and the expense account should be salary.

Then I just do a normal bank payment against the liability account like I would do for paying salaries which would be payroll.

Thank you. I now understand what the procedure is. I will try that out. I have done that. The salary is now unchanged for the employee, whilst still showing the NI.