When calculating app levy for an individual, we split this based on how much each employee contributes to the overall total on which additional app levy gets calculated per period.
For app levy, this will be split according to the employee’s gross pay subject to secondary class 1 NI per period vs the total gross pay subject to secondary class 1 NI in the period.
An employee who didn’t have any Er NI in the period won’t get EA allocated to them in the journal as they didn’t contribute to the overall total.
An employee who didn’t receive any gross pay subject to secondary class 1 NI won’t get app levy allocated to them, etc.
Written as a formula, the app levy for an individual is calculated as:
Split = (total app levy due / total gross subject to secondary class 1 NI) * individual gross subject to secondary class 1 NI
How app levy is calculated for an individual
How is app levy calculated for individual employees How does the Paycircle Detailed Journal Report calculate individual app levy values?
Written by Debs
Updated over 3 months ago