Set up a new payment

It's easy to set up a new payment within Sage 50 Payroll, let's run through the steps now:

1. Click Company, then click Pay Elements.
2. Click the Payments tab, then click New.
3. Check or enter the following information:

   Status	Factor - Factor payments take their rates from existing payments. You can calculate as a sum or percentage of the existing rate Fixed - If you choose Fixed, you can change the hours and rate in the employee's record, and change the hours in Enter Payments Global - You can only make changes to this payment within Pay Elements Settings Variable - You can change the hours and rates within the employee's record and in Enter Payments
   Description	Enter a description for your payment type, for example Basic Pay or Overtime.
   Base Payment	On the drop-down list, click the existing payment on which to base the rate of the factored payment. This box is only available when you choose Factor as the status.
   Default Hours/No.	You can set a default number of hours here or leave it as zero.
   Rate	This is only available if the status is set to Fixed, Global or Variable. You can set a default rate here or leave it as zero.
   Multiplier	This is only available if the status is set to Factor. You can enter the default multiplier here or leave it as zero. On the drop-down list, click one of the following: percent of base payment rate times base payment rate For example, if the factored payment is time and a half, enter 1.5 and click times base payment rate.

4. In This payment is subject to section, select or clear the check boxes as appropriate.
5. Select or clear the following check boxes as required for the payment: 

   Benefit in Kind	If this payment is a benefit in kind and you're registered with HMRC to payroll benefits, select this check box. If you select this check box and the benefit in kind attracts National Insurance contributions, select the National Insurance check box.
   Disguised Remuneration	For use when processing for tax owed on disguised remuneration schemes.
   Include Value in Minimum Wage calculation	If you don't want to include the rate for this payment when calculating the national minimum wage (NMW) for employees, clear this check box.
   Include Hours/No in Minimum Wage calculation	If you don't want to include the hours for this payment when calculating the minimum wage for employees, clear this check box. If the Include Rate in Minimum Wage calculation check box is clear, this check box is automatically cleared and disabled.
   This payment includes a premium element	If you set the status to Factor and the Multiplier to an amount times the base payment rate, to specify that this payment has a premium element, select this check box.
   Include for Holiday Accrual	To include the payment when you calculate the holiday fund accrual, select this check box. Find out more in our guide to holiday funds.
   Auto Advance	If you want the default value of this payment to be used automatically when advancing pay, select this check box.
   Include for Weekly Averages	If you don't want to include this payment when calculating 12, 13 or 52 week averages, clear this check box.
   Include in Timesheet Entry	If you use Timesheet Entry to pay a group of employees and you don't want to include this payment, clear this check box.

6. Click OK, then click Close.

NOTE: There's no upper limit to the number of Pay Elements that you can create.

Add payments to employee records

You can now assign payments to an employee or assign payments to multiple employees.