When processing payroll, it's essential that employer national insurance (NI ER) contributions accurately reflect all taxable benefits, including benefits in kind (BIK). If BIK values are missing from NI ER calculations, the issue is likely due to incorrect pay code configuration.
The pay code associated with the BIK may not be set up to include the value in Employer NI calculations. Specifically, the settings for NIable pay gross may be misconfigured.
To resolve this, follow the steps below in portal.
Click Settings then under Codes, then click Pay Code (Wizard).
Click Pay Code then click Next to the Rules screen.
Check Niable field is set to Non-Niable value.
Check Apply Class 1A NIC is set to ON.
If the 'Apply Class 1A NIC' option does not appear, it is turned off.
Click Add.
From the drop-down menu, select Apply Class 1A NIC.
Toggle it ON then click Save
Click Next then click Save.