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Administrator Guide
Last Updated: 2023-06-23
Adjust Incorrect NI Deductions Using Payroll Input (UK)

Adjust Incorrect NI Deductions Using Payroll Input (UK)

  • Worker has completed payroll results.
  • Update the worker's National Insurance (NI) category using the
    Add Worker UK Tax Details
     task.
Workday automatically updates NI categories when a worker reaches an age that requires a different NI category. This automatic process means that you rarely need to make any retrospective adjustments to a worker's NI results.
When you retrospectively change a worker's NI category, also adjust their previously calculated NI deductions and associated balances. Example: Managing changes to directors' NI throughout the year.
The best practice is to use regular on-cycle payroll input to:
  • Negate the incorrectly applied values from a previous NI category.
  • Positively adjust for the correct NI category.
  1. (Optional) Access the
    Pay Calculation NI Results for Group of Workers
     report.
    Use this report to view NI details before making adjustments.
    Security:
    Reports: Pay Calculation Results for Pay Group (Results) - UK
     domain in the UK Payroll functional area.
  2. Access the
    Add Payroll Input by Worker
     task and select the worker.
    Security:
    Worker Data: Payroll (Payroll Input)
     domain in the Core Payroll functional area.
  3. Select
    Special Entry
     and the appropriate
    Pay Component
    . Perform this task once for each pay component:
    • GBR NI - Employee NICs [GBR]
    • GBR NI - Employer NICs [GBR]
  4. Select these
    Processing Defaults
    :
    • One-time
    • Regular Run Category
  5. Under
    Input
    , enter the details to adjust
    GBR NI - Employee NICs [GBR]
    .
    Enter 2 rows:
    Action
    Start Date
    Processing Options
    Payroll Worktags
    Input Details - Type
    Input Details - Value
    Negate the incorrectly applied values from a previous NI category.
    Start date of previous period to adjust.
    Adjustment
    Previous NI Category
    Select the appropriate option.
    A negative value equal to the adjustment amount for the previous period or periods.
    Positively adjust for the correct NI category.
    Start date of previous period to adjust.
    Adjustment
    Current NI Category
    Select the same as in the first row.
    A positive value equal to the adjustment amount for the previous period or periods.
    When
    GBR NI: Earnings at the LEL (Reporting)
    , use the sum of:
    • A positive value equal to the adjustment amount for the previous period or periods.
    • The current period amount.
  6. Under
    Input
    , enter the details to adjust
    GBR NI - Employer NICs [GBR]
    .
    Enter 2 rows:
    Action
    Start Date
    Processing Options
    Payroll Worktags
    Input Details - Type
    Input Details - Value
    Negate the incorrectly applied values from a previous NI category.
    Start date of previous period to adjust.
    Adjustment
    Previous NI Category
    Amount
    A negative value equal to the adjustment amount for the previous period or periods.
    Positively adjust for the correct NI category.
    Start date of previous period to adjust.
    Override
    Current NI Category
    Amount
    The sum of:
    • A positive value equal to the adjustment amount for the previous period or periods.
    • The current period amount.