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NI Query

  • 2 posts
  • # 112932

Hi.

This is probably a stupid question but I'm new to payroll and this is bugging me immeasurably. I'm doing exercise 1.4 of the Open Study College payroll course and I just want to confirm NI but don't have the answer sheet with me as am typically elsewhere at the moment.

It essentially asks you to calculate Krzystof's pay with Tax Code 1060L using 883/month with an earning of £2,750.00.

 

In regards to his NI, I have used the formula of:

(UEL-PT)x12% to calculate it with nothing above the UEL (so no further 2%). When I do this, do I use the UEL number of 3532 or do I use his salary of 2750? I am very much aware that it is lower than the UEL so I'm a little confused as to which figure to use. Any clarification would be great as I'm doing this without working in a payroll environment and therefore have nobody to seek clarification from!

 

Aha, thank you.



Edited at 04 May 2016 11:18 PM GMT

  • Associate
  • Practice Licence
  • 77 posts
  • # 112942

Hi Jamie,

The NI would be on his salary over and above £672. So it would be (£2750 - £672 ) * 12%. As you say, salary not over UEL so the 2% rate on salary over UEL does not apply.

Dave

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