Background

The amount of National Insurance you and your employees pay is determined by the National Insurance category they are on. This category is determined by a number of factors and as an employer, you need to ensure that your employees are on the correct National Insurance category.

Pento will let you know when these changes need to be made if they are related to the employee's age. This information will be shown in the overview screen.

After clicking on "View employees" you will see this message:

You can then update the NI category to the correct category.

When will the alert be displayed?

The rules used to identify incorrect NI categories based on age are as follows:

• Employees aged 16+ should no longer be on the ‘X’ NI category as this category is exclusively for employees under 16
• Employees aged 21+ should no longer be on the 'M' NI Category as this category is exclusively for employees under 21
• Employees aged 25+ should no longer be on the ‘H’ NI Category as this category is exclusively for apprentices under 25
• Employees aged 25+ should no longer be on the ‘Z’ category as this category is exclusively for employees under 21 who can defer National Insurance because they’re already paying it in another job
• Employees over the state pension age (dependent on the individual) should be on the 'C' NI Category