From April 2022, rather than increase the employer and employee National Insurance contributions by 1.25% each, your payslips and reports show a separate deduction for the Health & Social Care Levy. This is to make it clear to employees as to why their deductions have increased in April, to hopefully reduce the number of queries you receive about the increase.

When your payroll information is reported to HMRC, the full amount is reported as National Insurance contributions for this tax year only. They will be reported separately from April 2023 onwards. If you were to use the HMRC's National Insurance calculator, you'll notice that the amount of employee or employer National Insurance due, is the employee or employer National Insurance and Health and Social Care Levy added together.

Your April payslips don't automatically include the payslip message suggested by HMRC but there is an option in PayFit to add a payslip message yourself. You can do this in bulk for all employees by following the steps in this article

. For reference, the payslip message suggested by HMRC is “1.25% uplift in NICs funds NHS, health and social care.”

If you have any further question about this, please get in touch.