National Health Insurance Table

Datafile Software

National Health Insurance Table

As with the tax bands and rates, the NI bands and rates are required in this part of the payroll System Profiles must be correct in accordance with the latest details issued by your tax office. Every Spring Datafile Software sends customers who have subscribed to the Datafile Gold contract, via their reseller, a program update that updates the latest NI table as part of the year end. If you are in any doubt, contact your reseller for the latest tables.

The National Insurance contribution tables are defined over three screens.

Earnings Brackets

It is usual to complete this table in full, even though the payroll itself applies only to a weekly-based or monthly-based payroll. It starts with the weekly pay brackets.

For each earnings bracket, starting at 1 for the lowest, enter the upper earnings limit for the bracket concerned. As you enter each upper limit the program automatically displays the lower limit for the next earnings bracket. Leave the upper limit at zero when all the bands which are required have been defined.

Employees Upper Limit

Key the absolute upper earnings limit for NHI calculation purposes. You must now repeat the process for monthly and yearly values.

Do you wish Director NHI contributions to be averaged?

Set whether Director NI contributions are calculated on an Annual (leave blank) or the Alternate averaged method. In the Average method they are treated as a standard employee until the final pay period of the year when deductions are recalculated on the full earnings period.

Employee contributions

On this screen you specify the employee contribution percentage rates to be applied to the defined earnings brackets for National Insurance categories together with the rebates allowed for D and L categories.

Employer Contributions

On the next screen, you specify the employer’s percentage rates for the defined earnings bands together with the rebates allowed.