UK Pay: Directors NI Calculated Incorrectly for Directors Hired in The Middle of Tax Year (Doc ID 2258673.1)

Last updated on APRIL 24, 2017

Applies to:

Oracle HRMS (UK) - Version 12.1.2 and later
Information in this document applies to any platform.

Symptoms

Problem Statement:

 


Directors NI calculated incorrectly for directors hired in the middle of tax year. The calculation is using full year periods (52 weeks) instead of pro-rating the periods for their employment period.
The NI Process Type has been set to Director Pro Rate Normal. They should pay some NIC each payroll period but in week 52 this is re-calculated to find the full amount for their employment period. But instead it is basing the NIC on the full tax year. Therefore the directors are paying too much NIC.


The calculation should use pro rata annual earnings periods for Director Pro Rate Normal.


Steps to Reproduce:
The issue can be reproduced at will with the following steps:

1. Run the latest payroll period in the year
2. Check SOE. NI is much higher then it should be


Cause

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