GP UK: Incorrect Calculation of National Insurance for a Retro Payment for New Hire (Doc ID 2847184.1)

Last updated on FEBRUARY 04, 2022

Applies to:

Symptoms

National Insurance is calculated incorrectly for a retro payment where the retro calendar was for a new hire that also had retro pay.

National insurance calculation is not compliant with HMRC rules.

Steps to replicate the issue: 

1. Ensure the relevant delivered National Insurance elements are present in the retro process override set 2

    Navigation: Set Up HCM>Product Related>Global Payroll and Absence Mgmt>Triggers>Retro Process Overrides

2. Check if previous month Payroll is finalized and the Payroll for the current month is open

    Navigation: Global Payroll and Absence Mgmt> Absence and Payroll Processing> Calculate Absence and Payroll

3. Hire a new employee into a monthly pay group effective date 1st of previous month.

    Navigation: Workforce Administration > Job Information > Job Data

4. Run the payroll for the current month and review the results. >>Retro should be present with NI being calculated on a period-by-period basis.

    Navigation: Global Payroll and Absence Mgmt> Absence and Payroll Processing> Calculate Absence and Payroll

5. Finalise the payroll for the current month and identify/calculate the payroll for next month

    Navigation: Global Payroll and Absence Mgmt> Absence and Payroll Processing> Calculate Absence and Payroll

6. Add positive input (ADD) into the Previous month calendar

    Navigation: Global Payroll and Absence Mgmt > Payee Data > Assign Earnings and Deductions > One Time (Positive Input)

7. Run the payroll for the next month and observe the results

    Navigation: Global Payroll and Absence Mgmt> Absence and Payroll Processing> Calculate Absence and Payroll

Changes

Cause

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