New job and NI - 6 weeks being paid in first monthly salary

cr1mson

Hope the title makes sense!

Basically I started mid April. Due to the cut offs they couldn't get everything set up to pay me for the payday at near end of April. So now will get 6 weeks paid at end of May.

What happens re NI? My weekly wage is just below the threshold but if if I get 6 weeks and NI people think it is for a months work it will be over.

Any ideas what happens in these circumstances?

Thanks.

C

LittleVoice

There are monthly limits too - which should equate to the weekly rate over a year (not that NI is calculated on an annual basis) - which is what you should look at if you are going to be paid monthly.

The employer should not deduct employees NI if the regular monthly pay would not require it. If they say this isn't possible refer them to the HMRC site which explains it.

chrisbur

This situation is covered on page 30 of The employer further guide to PAYE and NICs section 64 Working out NICs when you first pay an employee
which can be seen at....

http://www.hmrc.gov.uk/guidance/cwg2.pdf


"If the interval between an employee starting work and the first payday spans two or more earnings periods, and each period is in the same tax year, work out NICs on the amounts due for each of those earnings periods separately using the normal earnings period."

heretolearn_2

They won't just pretend you weren't there for the first two weeks. It should still show a 6 week period on your payslip. You started the day you started, not the first day of this pay month, so your employer won't try to stuff 6 weeks wages into 4 weeks dates.

Payslips show the actual pay period.You'll probably get two separate payslips and pays, one for April and one for May.

Or if your employer is feeling a bit lazy they'll do one and it will be something like 15 April (your start date) to 31 May. 6 weeks either way.

chrisbur

heretolearn wrote: »

They won't just pretend you weren't there for the first two weeks. It should still show a 6 week period on your payslip. You started the day you started, not the first day of this pay month, so your employer won't try to stuff 6 weeks wages into 4 weeks dates.

Payslips show the actual pay period.You'll probably get two separate payslips and pays, one for April and one for May.

Or if your employer is feeling a bit lazy they'll do one and it will be something like 15 April (your start date) to 31 May. 6 weeks either way.

The danger here is that as you say "if your employer is feeling a bit lazy", what often happens is that the full six weeks pay is put through without thinking about what will happen to the NI. This results in NI being taken as if this was just one months pay, in order to get the correct NI most, and proberbly all computer payroll systems require a manual intervention in cases like this. Many payroll departments are not fully aware of the details contained in the manuals like the Further guide to PAYE and NICs and are not fully aware of how to do a manual adjustment if it was needed, so often they will just put through the money as one month.

The OP may be lucky and their payroll department may know about these things but I would not count on it. In my thirty odd years in payroll I never met anyone else who had read the Further Guide from cover to cover and checked each year for changes.