If the NIC category is not changing when the employee reaches SPA, it is because there are no rules set up.
A rule needs to be set up to automatically change the employee's table when they reach state pension age. If the rule is added after the employee has changed codes, you will need to update the employee manually.
To check the rules set up, follow the steps below.
HMRC
To check the HMRC set up, follow the steps below in Portal.
Click Settings then under UK Tax Rates, click NIC Rules.
Turn on Apply Rules in Payroll Run then click NIC RULE.
Fill in the following fields:
Age From
Age To
NI Class
Reference (optional)
Turn on Update only on from age.
📌Note: If enabled, apply this rule only in the period when the employee has a birthday, reaches the specified age, and receives payment.
Click OK.
PRSI
To check the PRSI set up, follow the steps in the relevant section below.
Portal
Click Settings then under Ireland Tax Rates, click Old Age Pension Rates.
Click Pension Tax Limits.
Highlight the relevant age and pension tax limit then enter the From PRSI Class and the To PRSI Class.
Click Save.
Back Office
Click CorePay then click Reference.
Click Advance Reference Features.
Click Reference K-P then click Old Age Pension Rates.
Click on Pension Tax Limits
Highlight the relevant age and tax limit.
In the From PRSI Class and To PRSI Class fields, enter the relevant details.