Predetermination PAYE and NIC Adjustment (Infotype 0874) 

Definition

This infotype stores the following information:

·        Tax and NIC amount adjustments

·        Reason for the adjustment

Use

In case of any discrepancy between the actual tax and NIC amount payable, and the amount that the system calculates for the employee, you must manually calculate the difference amount and enter the same here.

The system uses the information in this infotype to adjust the tax amount, and employee and employer NIC contribution amounts.

You can use the information stored in this infotype for audit purposes.

Structure

●      In the Predetermination PAYE and NIC Adjus section:

¡        The NI number is defaulted.

○       Enter the date that falls in the period in which you want to adjust the amount in the Adjustment Date field. 

●      In the Tax Adjustment section:

¡        Enter the adjustment amount, which is the difference between the actual tax amount and the amount that the system calculates.

○       In Reason for Adjustment section, give a detailed description of why you are adjusting the amount.

●      In the NIC Adjustment section:

¡        Enter the adjustment amount in the EE NIC Adj. Amount field, which is the difference between the employee’s actual contribution to NIC amount and the amount that the system calculates.

¡        Enter the adjustment amount in the ER NIC Adj. Amount field, which is the difference between the employer’s actual contribution to NIC amount and the amount that the system calculates.

¡        In Reason for Adjustment section give a detailed description of why you are adjusting the amount.

Integration

Predetermination TAX & NIC Adjustment payroll function (P0874) reads the information in this infotype to generate the values of the following adjustment wage types:

●      Tax Adjustment wage type (/5TA)

●      EE NIC Adjustment wage type (/3N1)

●      ER NIC Adjustment wage type (/3N2)

The National Insurance Great Britain User Adjustments payroll function (GBNIA) reads the values of these wage types to adjust the following values:

●      Tax paid wage type (/501)

●      Employee NIC wage type (/301)

●      Employer NIC wage type (/302)