Setting an Employee as a Director
- Navigate to People Section: Go to the left-hand side menu and click on the 'People' section.
- Edit Employee Record: Find the employee you wish to designate as a director. Click on the three dots next to their name and select “edit” to open their employee record.
- Designate as Director: In the 'General' tab, scroll to the bottom and click on “Set as director.” A popup will appear where you can set the directorship start date.
- Choose Calculation Method: In the popup, select the method for calculating National Insurance contributions:
- Annual Method: Calculates the director's National Insurance contributions based on their anticipated annual earnings, distributing the payments evenly across the year.
- Alternative Method: Calculates contributions on a month-by-month basis, which can result in variable payments depending on the monthly earnings.
- Save Changes: After making your selections and ensuring all information is correct, click the 'save' button.
Important Note: Once you process the first payroll for the director, you will not be able to change the calculation method until the start of the next tax year.
Updated on: 27/04/2024
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