The Employment Allowance was introduced in the UK Budget in 2015. This is a Company allowance that reduces employer NIC liability and is configured in PeopleXD under the RTI section of Maintain Statutory Pay Parameters.
To configure Employment Allowance parameters, watch our video or follow the steps below.
📌Note: If you use Back Office, follow these steps.
Employee allowance parameters
Click Settings then under UK Tax Rates section, click General.
Click RTI then in the Employment Allowance field, enter the employment allowance amount.
In the Select Detail drop down menu, select Company Allowance.
For each company you want to claim allowanace, set employee allowance to either Yes /No.
Click Save.
📌Note: Only certain organisations are permitted to claim this.
For more information, check the HMRC policy paper about Employment Allowance.