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Post Info TOPIC: SAGE payroll NI calculation - baffled!


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SAGE payroll NI calculation - baffled!


Hi! I work for two completely different companies, unrelated to each other. 

Each has it's own SAGE payroll that I use. I'm baffled - Does anybody know why SAGE payroll works out employees NI on an amount (NI able earnings) which is slightly less (normally £2-£3 plus odd pennies) than the total gross pay then adds back exactly £2 before applying the 11%? (after the £476 earnings limit has been deducted). I don't normally check the 'ee NI,  but having done it now, I can't work out why SAGE does it. And seeing as two different companies' SAGE does it the same way, it must be a SAGE thing !

(I also use the HMRC employer CD rom and that always works out exactly 11% (after £476 off gross pay).)

Any response to my mystery would be appreciated!

Many thanks

Janie


-- Edited by Janie on Thursday 23rd of September 2010 06:20:21 PM

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Not sure if this answers your question but it is an extract from AskSage

"Sage 50 Payroll uses HM Revenue & Customs' (HMRC) NI contributions tables to calculate NI for non-directors. The figures used in these tables are calculated in steps of £1.00 for weekly paid employees, and £4.00 for monthly paid employees, and are calculated at the mid-point of each step using the relevant percentages for that category."



-- Edited by Wella on Tuesday 28th of September 2010 01:14:49 PM

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Many thanks, Wella, for taking the time to show me this .... yes, this must be the answer I'm looking for - and, having read your reply several times (!) I need to get my head around what it's saying before I have a play.  ''Ignorance is bliss'' is certainly true - why do I have to have such an enquiring mind?! 

Thanks again!

Janie


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Janie

Pretty sure the following works OK. Phil did it a few days ago and he was successful

If you go to the Sage website you can create a user account, which will give you access to AskSage. This will give you much more infor than the context help within any of the Sage products.

Nothing wrong with an enquiring mind (apart from it driving you crazy)

Bill


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Hi Jane/Bill,

Yes, I did set up an account with Ask Sage and it all seemed ok, but just logged in to check and got a message saying I can't use the facility because I don't have a registered product. Seems the workbook training packages don't count shrug.gif.

I assume you can use registration of your Sage product, Jane, so you'll be ok.

Phil

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Sage duplicates the printed manual NI tables when calculating NI contributions for normal employees. As far as I am aware Sage is the only accredited payroll software that works that way. HMRC permits software suppliers to work using either exact %age method or table method, but recommends the exact %age method.

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Hi - thank you SO much everybody!

Between you all, I understand now and my brain may relax a little!  I've just looked at the manual NI tables and it all clicked into place. What a team!

Much appreciated. Thanks.

Janie


-- Edited by Janie on Friday 1st of October 2010 09:04:45 AM

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