NIM11550 | Class 1 NICs: reporting NICs in RTI: reporting of aggregated earnings - further information

Paragraphs 21A(3) and 21C of Schedule 4 to the Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

Paragraphs 5 and 11 of Schedule 4A to the Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

NICs should be calculated following the normal rules, see NIM10001,

All Payments made using one employer’s payroll reference

• Payments from all employments must be reported on one Full Payment Submission (FPS)

• Data relating to one NICs category should be reported as one payment, with the appropriate, aggregated deductions

• The employer reports “yes” for data item 49 (aggregated earnings indicator).

Payments made by different employers or using different employer’s payroll references

• All Year To Date (YTD) earnings are reported under one nominated employment

• All YTD NICs data is reported under that employment

• The primary NICs due in pay period should reflect the actual deductions made from the employee’s pay. So, if the primary NICs are all deducted from one payment, this should show in the pay period data for that employment. This makes sure that the net pay for the period balances

• The aggregated earnings indicator (data item 49) must be set at “yes” on each FPS for each employment.

No earnings in one month

If in one month there are no earnings for the nominated employment, the employer needs to continue to report earnings for the other employments under the nominated employment.

Nominated Employment ceases

If the employment used to report the data ceases, the employer should:

• nominate one of the other employments to report all future earnings and YTD totals

• start YTD totals under the second nominated employment from zero.