National Insurance Deductions Incorrect For Certain Employees WIth Negative Earnings
Last updated on JUNE 07, 2017
Applies to:Oracle HRMS (UK) - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version, UK Payroll
National Insurance Deductions incorrect for certain employees
We have identified certain employees where their NI contributions for one or more months during 2014-15 were incorrect, as too much of their earnings was assessed as being LEL earnings (subject to 0% Ni contributions) instead of "above ET (Primary Threshold)" earnings (subject to, in the case of NI Cat A, 12% NI contributions).
The National Insurance Deductions must adhere to the strict legislation requirements for the separate NI Codes.
The issue can be reproduced at will with the following steps:
On 12.1.3 (Production), Incorrect National Insurance Deductions for some
(1) This employee received two NIable payments on this assignment in May,
(i) Basic Pay (Basic Pay Army Other Ranks) £66.97
(ii) LSA Arrears (Retro Longer Separated Service) -£107.80
Adding these two payments together gives a total of -£40.83
(2) The £66.97 payment for Basic Pay is from a single Run Result while the
negative payment for LSA Arrears is the sum of two Run Results (one for
-£312.62 and the other for £204.82)
(3) The elements feed the seeded NIable Pay balance.
(4) The NIable Pay run/period for this assignment is -£40.83 (and the NIable
Year To Date balance for this assignment is
£40.83 less than it was at the end of the previous month)
(5) The NI LEL run/period balance is shown as zero (and the NI LEL YTD
balance is unchanged from the previous month), but it appears to be -£40.83
as the NI LEL run/period balance for the employee¿s other assignment is
£40.83 more than the monthly LEL threshold. (The pay run for the second
assignment took place after the pay run for the first assignment).
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