What is the purpose of the Directorship checkbox on an employees Tax Profile screen?

The Directorship checkbox should be enabled on an employees Tax Profile screen if the employee is considered a Director.

      Navigate > Employee > Basic Information > Tax Profile > National Insurance Details.

      

Once the field is selected, additional fields will populate that may be completed as required.

Select the Director’s NIC Calculation Method -

Select the calculation method for the Director:

1. Standard Annual Earnings – Director’s NIC is calculated on a year-to-date cumulative basis.
   
2. Alternative – Director’s NIC is calculated on a non-cumulative basis. If an employee is terminated or if it is the last pay period of the tax year, a final year-to-date calculation will be done.

Directorship start date -

This field is only applicable if the Directorship is calculated using the Standard Annual Earnings Limit. The start date will be used to count the number of weeks the Directorship is active for in the current tax year and use the weeks / months to pro-rate the NIC Limits.

Directorship end date -

This field is only applicable if the Directorship is calculated using the Standard Annual Earnings Limit. The end date will be used to count the number of weeks the Directorship is active for in the current tax year and use the weeks / months to pro-rate the NIC Limits.

• Related Articles

• Tax Profile | National Insurance Details

  Overview National Insurance contributions are paid to qualify for certain benefits and the State Pension. National Insurance is a tax which is paid alongside Income Tax. Depending on whether an individual is employed or self-employed – and depending ...

• Tax Profile | Tax Details

  Overview Tax Details are captured on an employees Tax Profile screen to specify the way in which an employees tax will be calculated on the system. Edition This feature is available on all PaySpace editions Navigation Path Navigate > Employee > Basic ...

• How do I insert a second additional custom date field on the Tax Profile screen?

  Insert the title of the custom date field in the "Display a second additional date on the employee tax status screen with the following name" field under the Employee Settings section on the General Settings screen. Navigate > Configuration > Basic ...

• How do I insert an additional custom date field on the Tax Profile screen?

  Insert the title of the custom date field in the "Display an additional date on the employee tax status screen with the following name" field under the Employee Settings section on the General Settings screen. Navigate > Configuration > Basic ...

• Employee | Tax Profile

  Overview The Employee Tax Profile Screen stores information relating to the employee’s tax calculation, National Insurance Details, Starter Details, and Previous Employment Details. Edition This feature is available on all PaySpace editions. ...