National
Insurance Changes 
Use
National Insurance functionality in British
Payroll has been modified to reflect changes to the calculation of Class 1
National Insurance contributions (NICs) for employees and employers.
The main changes are as follows:
1. Introduction
of a 0% rate of NICs (nil-rate band) for employees on earnings above the Lower
Earnings Limit (LEL), up to and including the new Employee's Earnings
Threshold (EET).
The following
technical wage types were therefore created to record an employee's earnings
between the LEL and EET
- /N47 NI Earnings between LEL and Eet
- /NAW LEL to Eet, Cat. A earngs.
- /NBW LEL to EeT, Cat. B earngs.
etc.
The following
technical wage types were created to record an employee's earnings between the
Employee's Earnings Threshold and Employer's Earnings Threshold:
- /N48 NI Earngs betw. Eet & ErT
- /NAX EeT to ErT, Cat. A earngs.
- /NBX Eet to ErT, Cat. B earngs.
etc.
2. Extension of
the NIC rebate for employers operating contracted-out occupational pension
schemes by an employee's NIC rebate, based on the band of earnings between the
LEL and the Employee's Earnings Threshold.
The following
technical wage types were therefore created to record an employee's NIC
rebate. This only applies to employees with Category Code D, E, F, and
G.
- /N49 Employee NI Rebate
- /NDY Ees NI rebate, Cat.D
- /NEY Ees NI rebate, Cat.E
- /NFY Ees NI rebate, Cat.F
- /NGY Ees NI rebate, Cat.G
3. The
following technical wage types were created to record retro changes on
National Insurance involving the employee's NIC rebate:
- /5NE NIC Ee Rebate Arrears
- /5NF NIC Ee Rebate Arrs c/fwd
4. The wage
types recording the NI earnings between the LEL and ET - /N45, /NA9, /NB9,
etc. - are no longer used.