The purpose of this Wiki is to understand the Refund of National Insurance for Change in NI Category from A to C in RTI and RTINI tables
To know more about this behavior, we must first review the necessary information, and then know how to reproduce it so that we can understand it.
Employee NI category is changed retrospectively from A to C, after payroll is run for a given month.When payroll is run for the current month, a retro will be triggered to the previous period and National Insurance will be reassessed for the change in NI category from A to C, and there will be refund of Employee NI done in the current month. NI category C will only have Employers NI be calculated. Change of NI category to C will be done once the employee attains the state retirement age, as defined by HMRC.
With the implementation of RTI, the below mentioned process explains the steps to be followed, HMRC reporting, RTI net pay calculations in RTI table , and Employee NI and Employer NI this period (TP)values in RTINI
- Employee hired in payroll area G1 (RTI active) from 01.04.2013 , with NI category as A in Infotype 0069.
- Payroll for this employee processed until September 2013, and FPS submitted for September 2013.
RTINI table in period 06.2013 is as follows:
- National Insurance Category of the employee is now changed from A to C effective 01.09.2013 in Infotype 0069,and October 2013 payroll is processed
- Payroll with retro back to September 2013, and the National Insurance will be recalculated with NI category as C , and Employee NI refund is filled in NIRA table in October 2013 payroll.
RTI /RTINI and NIRA tables will have the following values calculated:
NIRA Table For-Period 06.2013 In-Period 07.2013
RTI Table For-Period 07.2013 In-Period 07.2013
RTINI Table For-Period 07.2013 In-Period 07.2013
NIRA Table For-Period 07.2013 In-Period 07.2013
- The National Insurance refund as calculated will be reported in the RTINI table as ZERO values for the EE NICs.
- RTI Net pay as calculated in RTI table will have the Employee NI refund included .
RTI Net pay = Taxable pay TP - Tax paid TP –RTINI-EENIC - SL TP - EE NI refund(NIRA)
6.158,72 - 1.615,30 - 0,00 - 0,00 - (-391,05) = 4.934,47 gbp
- RT table shows the same amount in /559 Bank transf & /560 Amount paid wagetypes
- FPS processed for period October 2013 will contain the following values:
- The value of EE NICs this period(TP) shown should be ZERO and not negative , and the ER NICs this period(TP) will be the values as calcuated as per NI category C in the RTINI table.