What is the National Insurance Contribution Uplift?

From 6th April 2022 the Health and Social Care Levy will be coming into place. In order to fund the NHS and other health and social care sectors who have been impacted by the Coronavirus pandemic, national insurance contributions will have a levy applied to them of 1.25%.

If you’re processing payroll HMRC recommend you make sure that your employees are aware of this and ask that all payslips from 6th April 2022 to 5th April 2023 have the wording “1.25% uplift in NICs funds NHS, health & social care” applied to them.

The levy will only be for one year from 6th April 2022 to 5th April 2023 and this will be a separate payment from the regular National Insurance Contributions. The levy will be applied to the following NIC’s:

  • Class 1 – for primary and secondary thresholds
  • Class 1A for employers
  • Class 1B for employers
  • Class 4 for the self-employed

Employer reliefs and allowances which are already in place and applicable to National Insurance Contributions will also be applied to the new levy.

The earnings on which NIC’s are worked out will be used to calculate the separate levy.

When is the levy not applicable?

You will not have to pay the extra 1.25% or apply it to your employees wages if your employee falls into one of the below categories and learns less than £50,270:

  • Under age of 21
  • Apprentice under 25
  • Veteran of the armed forces
  • An employee in freeports (special areas in UK borders)

How to add a comment to your payslips in Sage 50cloud Payroll

You will need to make sure you are using version 28 of Sage 50cloud Payroll. All payslip layouts within this version include the Payslip Comment Field. 

Adding the message “1.25% uplift in NICs funds NHS, health & social care” to your payslips from 6th April 2022 is fairly straightforward in your Sage 50cloud Payroll software. You can add the message to individual employees or to a group of employees, just follow these simple steps:

Adding a comment to an individual’s record:

  1. Locate the employee record and double click on it
  2. Select the analysis tab
  3. Go to the Electronic Documents section and click inside the payslip comment box
  4. Type ‘1.25% uplift in NICs funds NHS, health & social care’ and press save
  5. Click close

Adding a comment to a group of employees

  1. Select all the employees on your list which you wish to add the message to
  2. Press tasks and then global changes
  3. Select Electronic Documents then click Set Payslip Comments
  4. Type ‘1.25% uplift in NICs funds NHS, health & social care’ and press save
  5. Click close

The comment will now appear on your employees payslip. If you have any problems when trying to add the message in your software please get in touch.

For further support and guidance please join our Facebook Support Community.

12/04/2022

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

Share this...

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.