Payroll in Northern Ireland - Key Aspects

In Northern Ireland, payroll involves managing employee wages, taxes, and other deductions, ensuring calculations are correct.

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Here are some key aspects of payroll in Northern Ireland:

PAYE (Pay As You Earn): In Northern Ireland, employers are responsible for deducting income tax and National Insurance contributions from their employees' salaries or wages through the PAYE system. As a result, the system ensures that employers deduct taxes from employees' pay as they earn it.

NI (National Insurance): Collectively employers and employees both contribute to National Insurance. This funds certain state benefits, including the state pension and unemployment benefits. However, national insurance contributions are deducted from employees' earnings along with income tax.

Real-Time Information (RTI): Employers in Northern Ireland are required to submit payroll information to HM Revenue and Customs (HMRC) in real time, a process known as Real-Time Information (RTI). Specifically, this includes details of employees' earnings, taxes, and National Insurance contributions. Consequently, RTI ensures that HMRC receives up-to-date payroll information promptly.

Auto-Enrolment Pension Scheme: Employers in Northern Ireland must comply with auto-enrolment legislation. Therefore this requires them to automatically enroll eligible employees into a qualifying workplace pension scheme, making contributions to their pension fund.

Minimum Wage: Employers in Northern Ireland must ensure that they pay their employees at least the National Minimum Wage or National Living Wage. This depends on the age of the employee.

Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP)**: Employers in Northern Ireland are responsible for administering statutory sick pay and statutory maternity pay. This is eligible for employees who are unable to work due to illness or maternity leave, respectively.

Annual Leave and Holiday Pay: Employers must calculate and administer employees' entitlement to annual leave and holiday pay. Specifically, employers must do this in accordance with employment law and contractual agreements. Therefore, ensuring compliance with these regulations is essential for employers.

P45, P60, and P11D Forms: Employers in Northern Ireland are required to provide documentations to employees when required. A P45 (employee leaves), P60 (end of the tax year), and P11D (reporting expenses and benefits).

Employment Contracts and Payroll Records: Employers must maintain accurate payroll records, providing employees with written employment contracts. Including their terms and conditions of employment. Consequently, this ensures clarity and compliance with employment regulations.

HMRC Reporting and Compliance: Employers in Northern Ireland must comply with HMRC. Ensuring they report requirements and deadlines for submitting payroll information, tax payments, and other relevant documentation.

These are some of the key aspects of payroll in Northern Ireland. Employers must ensure they comply with all relevant legislation and regulations. This meets their obligations to their employees and HMRC.

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If you have any specific questions or concerns related to your Payroll in NI, NBAS Chartered Accountants can assist you.

Understand Payroll?  Great.  We also offer advice on Common Accounting Terms in Northern Ireland

Payroll in Northern Ireland - Key Aspects | NBAS Chartered Accountants 2025