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I have an employee who hit retirement age last year and has just pointed out that her NIC hasn't changed. Gov.uk states that employer can reclaim NIC paid - is there a system in place to do this? I just tried to enter a negative NIC adjustment on payslip for EES NIC paid to date this tax year, but negative is not accepted. Any ideas?

Thank you Xero, that will make life much easier!

Thats brilliant!

Amazing thank you

Fantastic news, we've been waiting years to even get a response to this, so great to hear you are now working on it.

I agree. An automatic reminder to change the NIC code would be great. We employ youngsters/apprentices/ people over state retirement age. It is a pain to have to keep going through their ages and updating the NIC letter from H - M, from M-A, from M-C and so on. It’s a pain then to re submit the FPS and EPS to HMRC to correct

Same as moving from one minimum wage bracket into another - this is important as we don't have time to check everyone's date of birth each payroll.

At the very least we should be able to set the correct NI category with a future date like we can with tax codes. But automatically setting the NI category based on age would be even better.

We've had the same issue, an employee who reached retirement age over a year ago, we've tried submitting an unscheduled pay run but it doesn't seem to have worked.

I made this mistake when an employee reached retirement age and queried why they paid NI. Coming from Sage I assumed changing the NI category from "A" to "C" would be an automatic process.

In the meantime, has anyone come up with a more efficient way to track when these changes are due instead of having yet another spreadsheet to keep updated whilst these gaps in Xero's functionality are patched up? It would be a great quick fix if Xero could provide a report that lists employees' dates of reaching state pension age.

I believe a lot of companies will not constantly check employees’ date of birth to change their NI category. Learning that Xero does not flag up when an employee reaches retirement age is very annoying. It made me to have extra work to correct the mistake. SAGE and Brighpay can automatically update for NMW and Retirement age!!

I hope Xero can address this matter as urgent as this is a critical functionality for payroll.

No reason why Xero cannot implement this?
Missed a client reaching state pension age - very annoying!
All other software's have this facility.

We come across all these problems with ages not being at least flagged up. Have numerous companies with many employees so difficult to check every week/Month. SAGE & Brightpay both have the facility for NMW and Retirement age, and these are legal requirements affecting Pensions & NMW both of which can trigger an investigation. If overlooked results in the Payroll Department having lot more work, calculating and adjusting back pay/contributions. Can someone from XERO please advise how many 'Votes ' do we need before this is dealt with? Thank you

I have had the same issue, I assumed Xero would alert me when someone reached retirement age, so that I could change the NI category
Very easy to miss especially if you have a large company with 100's of Employees

It is disappointing to learn that Xero does not flag up when an employee turns 21. Hope this gets looked at very soon. :-(

I had wrongly assumed that Xero would automatically stop taking NI contributions when an employee reached State Pension Age! Now I have to try to work out how to correct the mistake made. Not what I expect from Xero :-( Even if the NI wasn't changed, at least a flagging of the age reached would help.

I've just added an employee with the 'V' National Insurance category.

Interestingly, there is a note that confirms when the eligibility ends and a message that states:

'You'll be shown a reminder to set the next category in Xero Payroll one month before eligibility ending'.

It looks to me like with little effort, Xero would be able to create a similar reminder for changes to M and C National Insurance categories!

Can confirm this is still an issue August 2023. Just found out that the director of the company has been paying NIC contributions after turning 65 in October of 2022. I just started at this company. Now, I have to redo journal entries for almost a year. Seems like an easy fix Xero !!! Even if you don't change the code automatically - create an alert !

I have employees under 21 on M code and it would be great to get a heads up when they reach 21 too.

The fact that Xero payroll does not automatically update the NI category letter is not a good solution. I have a client who employs several under 21's all with category M NI letter. To have to manually change the NI category letter leaves the payroll open to error. I have a case where this has been missed and the client has incurred a large employers NI catch up payment.
Please can this be addressed as a matter of urgency by Xero as this is critical functionality for payroll.