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# Setting an Employee as a Director

1. **Navigate to People Section**: Go to the left-hand side menu and click on the 'People' section.

2. **Edit Employee Record**: Find the employee you wish to designate as a director. Click on the pencil icon next to their name to open their employee record.

3. **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.

4. **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.

5. **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.