Government settings
Each Employee in KashFlow Payroll will have been some references and numbers to help them identify them to HMRC and in the RTI submissions. Furthermore, each Employee will be assigned some codes by HMRC to enable Tax and National Insurance Contributions (NICs) to be calculated correctly.
Tax Code
You are responsible for entering the correct Tax Code and the correct Tax Calculation Method. Full HMRC guidance on setting the Tax code of a new starter can be found here www.hmrc.gov.uk/payerti/employee-starting/new-emp-info.htm
Student Loan
Click ‘Yes’ for Student Loan deductions to appear on the Payslip. KashFlow Payroll knows how to calculate Student Loan repayments and whether the employee is exempt from paying them or not (based on earnings).
National Insurance Category
You are responsible for entering the correct NI Category
National Insurance Number
This is one of the key ways that HMRC uses to identify an employee; also known as a NINO. It is important that you do not enter a fake NINO. If you do not know the employee’s NINO then you can use the Employees National Insurance Number Trace form from HMRC.