Follow the information below to understand the different methods of apportionment.
These fields:
Apportion PAYE.
Apportion NI.
Apportion Method.
All work together and are used when you receive timesheets that relate to a previous period. For example, in week three, you receive three timesheets, week one being for £89 gross, week two being £150 gross, and week three being £33.
Option one - Apportionment Method set to Tax Week
If the Apportion PAYE and Apportion NI boxes are selected and the Apportion Method is set to Tax Week, the following calculations take place:
Tax calculated on £89 in week one, £239 in week two, and £272 in week three.
NI calculated £89 in week one (therefore, no NI payable as under the limit), £150 in week two (therefore, NI should be paid as over the limit), and £33 in week three (therefore, no NI payable).
The three tax figures are totalled, and the three NI figures are totalled and paid in the Payslip for Period three.
Option two - Apportionment Method set to Average
If the Apportion PAYE and Apportion NI boxes are selected, and the Apportion Method is set to Average, the following calculations take place:
Average per week = (89 + 150 + 33) / 3 = 90.66.
Tax calculated on 90.66 per week.
NI calculated on 90.66 per week, therefore, this is under the NI limit and won't pay any national insurance.
📌 Note: The Apportionment Method is more crucial when deciding on the calculation for National Insurance if you receive more than one timesheet in one week, which relates to previous weeks.
⚠️ Important: The backdated calculation can only be performed back to period 1 of the current tax year or the go-live period. If you have a timesheet for a prior tax year, it will be calculated as the current period.