Hi, in week 1 and week 2 employees paid NI at the higher rate of 10% rather than 8%, payroll has now been corrected and an FPS adjustment has been sent, how are employees refunded? can anyone clarify the process from HMRC to reimbursment of employees.
Hi Nick,
Thanks for using Community Hub 
After reprocessing their new payslips will have a lower employee NI due and a higher net pay amount. Compare their original net pay to new net pay, then issue the new payslips and pay the difference to the employees.
When you run the P32 for month 1, it'll include the updated (lower) employee NI in point 4 - Gross National Insurance. This reduces the total amount that you need to send to HMRC for tax month 1. Ultimately, it's this reduced amount included in point 4 of the P32 that you're sending to the employee instead of HMRC.
The FPS adjustment has already notified HMRC of the changes to liability.
If this has answered your question, please click Verify Answer.
Regards,
John Howells
Sage UKI
Hi Nick,
Thanks for using Community Hub
After reprocessing their new payslips will have a lower employee NI due and a higher net pay amount. Compare their original net pay to new net pay, then issue the new payslips and pay the difference to the employees.
When you run the P32 for month 1, it'll include the updated (lower) employee NI in point 4 - Gross National Insurance. This reduces the total amount that you need to send to HMRC for tax month 1. Ultimately, it's this reduced amount included in point 4 of the P32 that you're sending to the employee instead of HMRC.
The FPS adjustment has already notified HMRC of the changes to liability.
If this has answered your question, please click Verify Answer.
Regards,
John Howells
Sage UKI
