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The New National Insurance Primary Threshold Increase is Not Being Applied Correctly (Doc ID 2880421.1)

Last updated on JULY 22, 2022

Applies to:

PeopleSoft Enterprise HCM Global Payroll UK - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms

As per guidance document “National Insurance Contributions guidance for software developers” effective from 06 July 2022, the new Primary Threshold is to be applied to Earnings on or after 6th July 2022.
However, there are 2 scenarios where National Insurance Primary Threshold increase is not being applied correctly:  

1. For a Payroll with a payment date of 1st July 2022 the new Primary Threshold value-effective 6th July 2022 is being used in the Payroll calculation.
2. When the June retro calendar is processing a new hire that occurred in June and July Payroll, the new NI Thresholds which take effect from 6th July are incorrectly applied for the June Payroll calendar.

Steps to replicate the issue

Scenario 1 
1. Navigate to Global Payroll and Absence Management >Absence and Payroll processing >Calculate Absence and Payroll and Calculate June Payroll.
2. Navigate to Global Payroll & Absence Mgmt > Absence and Payroll Processing > Review Absence/Payroll Info > Results by Calendar Group and check Payroll results.
Under the tab "Earnings and Deduction" notice that the NI Primary Threshold being used is the new threshold which is incorrect.

Scenario 2
1. Navigate to Global Payroll and Absence Management >Absence and Payroll processing >Calculate Absence and Payroll to Run and Finalise June 2022 Payroll.
2. Navigate to Workforce Administration > Job Information > Job Data—>Retro hire an employee with effective date as of 1st June 2022  and a salary of £4000.
3. Navigate to Global Payroll and Absence Management >Absence and Payroll processing >Calculate Absence and Payroll and Run July 2022 Payroll.
4. Navigate to Global Payroll & Absence Mgmt > Absence and Payroll Processing > Review Absence/Payroll Info > Results by Calendar Group and check Payroll results.
Under the tab "Earnings and Deduction" notice that the NI Primary Threshold being used is the new threshold which is incorrect.

Cause

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In this Document
Symptoms
Cause
Solution
References


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