The usual way to pay employees is to specify their gross pay and then deduct tax and national insurance (NI). This is known as a gross to net payment.

If you want to specify the amount of net pay your employee receives, in Sage 50 Payroll you can use the net to gross option that calculates the amount of tax and NI due on the net amount you specify. Net payments types can't be used with Salary sacrifice pensions.

NOTE: A net to gross payment is different to a net payment. You can follow the steps in our handy guide to Set up and process a net payment. 

Set up the employee's record for a net to gross payment

1. Select the employee, then click Employee.
2. Click Employee Record, then click the Employment tab.
3. Click Pay Elements, then select the Apply Net To Gross Payments check box.
4. Click Save, then click Save.

Process a net to gross payment

1. Select the employee, then click Payroll.
2. Click Enter Payments, then click the Summary tab.
3. Click the Net To Gross button.
4. Enter the required amount of net pay, then click OK.
5. Click Save/next, then click Close.

If the amount of net pay differs from the amount you enter, select the Summary tab and check if there are any other types of payments or deductions affecting the calculation.

 TIP: An example of what causes this kind of discrepancy is a pension contribution deducting from the employee's net pay. 

Global changes

If you need to enable or disable net to gross for multiple employees, you can use global changes.

1. Select the required employees then click Tasks then Global Changes.
2. Click Net to Gross then click:
   • Pay Employee(s) by Net to Gross to enable net to gross
   • Pay Employee(s) by Gross to Net to disable net to gross
   • Set Employee(s) Net Pay to enter an amount of net pay
3. Click the required settings then click OK.
4. Click Yes then click OK.