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Working with a director's year to date values

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Sage 50 Payroll calculates directors' National Insurance Contributions (NICs) correctly based on what the director status is set to in the employee record. If you need to manually enter directors' year to date (YTD) values for any reason, you must ensure they're entered correctly to continue accurate tax and NIC calculations.

Tip: For more information, refer to booklet CA44 National Insurance for Company Directors, available from HMRC.

How do I do this?

1. Select the relevant employee from the Employee List > Employee > Employee Record > Employment.

   Check the director status is correct.

2. Click YTD Values.

3. If the director is new to your company and started part-way through the tax year, use their P45 to enter the year to date values in the Previous (P45) Column.

   If the director is an existing employee and you're setting up your software part-way through the tax year, enter the Current Employment year to date values from their P11 Deductions Working sheet.

4. Click the Director's NIC tab > enter the date their directorship began.

   Note: It's important the date the directorship began is correct if it's in the current tax year, as the NI thresholds are pro rated using this date.

5. Using the director's P11 Deductions Working sheet, enter the national insurance contributions for the year to date in the boxes provided.
6. To save your changes and return to the payroll desktop > OK > Save > Close.

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