1. NATIONAL INSURANCE
National Insurance contribution is to be paid to build up entitlement for certain state benefits including
state Pension.
It depends on how much you earn and whether you’re employed or self-employed.
The National Insurance component in SAP allows you to record, calculate and pay NI
contributions (NICs) correctly.
All the necessary information related to NIC is stored in the employee’s individual National
Insurance GB (0069) Infotype records.
2. NATIONAL INSURANCE
NI Number is unique for an employee which is stored in Infotype 0002 and gets transferred
automatically to the NI Infotype 0069 record.
In case NI details are not available for the employee, the system uses the default values set up in
customizing using the feature GNICD.
NI Category enables payroll component to calculate NI Contributions for the employees and the
employer. Also it indicate if an employee is a member of Contracted out of State Related Earnings
Pension Scheme or not.
Company Director governed by different NI regulations than non-directors. If company director wishes
to his/her NICs to be calculated using the earnings for the pay period, and not using annual
cumulation, provision can be made accordingly.
3. NATIONAL INSURANCE
National Insurance Contribution Classes:
Class 1 Contributed by Employee and Employer
Class 1A Only contributed by Employer’s who provide certain benefits in
kind to the directors and employees which can be used
privately such as cars & fuels.
Class 1B Paid only by employers who enter into a Pay As You Earn
(PAYE) Settlement Agreement (PSA) with HM Revenue &
Customs for tax purposes
4. NATIONAL INSURANCE
Limits and Percentages: All relevant NI categories have upper and lower NIable pay/earnings limits and
employee/employer percentages, rebate percentages rates in a table format which is referred by
Payroll Function GBNIC to calculate NI Contributions correctly.
The standard SAP human resources system contains up-to-date National Insurance earnings limits,
contribution percentages and category codes.
SAP sends update for this information when legislation changes. Table T5G_NICLIM and T5G_NICPCT is
used to hold NIC limits and NIC Percentages subsequently.
6. NATIONAL INSURANCE
Report (RPCNIRG0) generates the limit and percentage rates for a selected NI category code, for a
particular pay frequency for the current tax year. The data is produced from the table NIC limits
(T5G_NICLIM) and NIC Percentages (T5G_NICPCT).
Changing NI Status for Employees Contracted-Out of the State Second Pension: If the employee decides
to join a company pension scheme which is contracted out of the State Second Pension, there is a
need to create a new Infotype 0069 record for the employee.
Display NI Payroll Results Report (RPLNICG0): It display the contents of NI payroll results for a large
group of employees.
7. NATIONAL INSURANCE
Payroll Function GBNIC calculate NI contribution based on NI Category, NI rates table T5G_NICPCT and
NI Limit table T5G_NICLIM.
Wage Type /301 contains Employee contribution amount and wage /302 is used to hold employer
contribution.
12. NATIONAL INSURANCE
National Insurance Payment In Error: This situation can occurs when an employee has been
disadvantaged because he/she received a payment in error which led to incorrect NI Contribution
for the employee.
Infotype 0793 (Payment Made in Error) needs to be created for correcting each NI payment in Error.
Payroll function P0793 is used to process the records stored in Infotype 0793 for the payroll period and
create the payment history for the affected wage type in payroll table WEARN.
Table WEARN contains the history of the changes made to the wage type over different retro periods
i.e. it shows the complete retro chain process and pinpoint exactly what amounts have been passed
into which payroll period and from where.
13. NATIONAL INSURANCE
Example with NIPE Functionality: A weekly paid employee receive £90, He is incorrectly paid a bonus of
£50 in Week 1, employee normally doesn’t pay NI as he earns under the NI Lower Earning Limit
however on receipt of bonus in week 1 he must make NI contribution as per specified rate and
category assigned to him. The wage type in question must be entered on Infotype 0793 with the
correct origin date on which it was paid earlier and should be deleted from the IT0015.
14. NATIONAL INSURANCE
Table WEARN: From NIPAY table it is not clear which wage type was amended. The WEARN table holds
the complete history of the wage type across all affected retro periods.
In the example above table WEARN contains the following two entries:
