Solution Properties
Solution ID:
200427112252097
Last Modified Date:
Tue Oct 01 14:05:11 UTC 2024
Taxonomy Path:
Case category//How do I...//processing
Author:
[email protected]
Paying employees by BACS with a Service User Number (SUN)
Description

If you pay employees via BACS, which is defined as submitting to BACS directly or indirectly with a Service User Number (SUN), additional information must be included in your FPS, in the form of a reference of characters or 'hash'. If you answer yes to both of the questions below, you must include a hash reference in your submissions to HMRC. The BACS hash reference is created when you update records. In addition to including the hash in your FPS, you also need to enter the reference of four random characters into field seven of the BACS payment instruction created by the BACS software.

When HMRC receive your FPS, they decode the hash to get the reference of four random characters and then cross reference them with the characters included in the BACS payment instruction. This means they can check that the payment information included in the FPS is what the employee actually received via BACS. Where an employees pay is being split between two bank accounts, the hash reference is only generated for the account that receives the majority of the pay.

If you answer no to either of the following questions, you don't need to worry about the hash reference.

  • When making payments of wages/salaries/pensions, do you make any part of them using BACS direct credit?
  • Do you have your own Service User Number (SUN) for the BACS system? Your BASS provider or BACS Approved Bureau will be able to confirm whether or not you have your own SUN.

You only need to enter the SUN in your software if you use either the HSBCNet or the JP Morgan e-Banking component. You should enter this number when you complete the e-Banking wizard >

Sage 50 Payroll automatically generates the BACS hash using the following:

  • A recognised algorithm based on the company bank sort code.
  • The employee's bank sort code.

    The sort code is taken from the banking details in the employee's record.

  • The net pay for the period.
  • A reference of four random characters.

In Sage 50 Payroll there are two payment methods for BACS:

Direct BACS

If you use BACS as described above, you must assign the employees who you pay in this way using the Direct BACS payment method. We've also created new BACS reports that you can use to upload into your BACS software, which contain the new hash reference.

BACS

If you're using e-Banking to make your BACS payments, you must assign your employees the BACS payment method. Using the correct e-Banking component for your bank, you can create a payment file, which will contain the new hash reference.

Not all banks that support e-Banking, also support the BACS has reference. If you don't have a SUN, you can continue to use the BACS payment method. To view the compatible banks for e-Banking components, visit sage.co.uk/ebanking

Cause
Resolution
Set up your company bank details
  1. Click Company then click Settings
  2. Click the Bank tab.
  3. Enter your company bank details
  4. Click OK.


Set up your employees' payment method
Direct BACS
  1. On the Employee List, select the required employees.
  2. Click Tasks then click Global Changes.
  3. Click Assign Employee(s) a new then click Pay Method.
  4. Click Direct BACS then click OK.
  5. Click Yes then click OK.

Your employees' bank details need to be entered to ensure the employees appear on the BACS hash report. You can enter these details in the Banking tab within the Employee Record.

BACS
  1. On the Employee List, select the required employees.
  2. Click Tasks then click Global Changes.
  3. Click Assign Employee(s) a new then click Pay Method.
  4. Click BACS then click OK.
  5. Click Yes then click OK.

Your employees' bank details need to be entered to ensure the employees appear on the BACS hash report. You can enter these details in the Banking tab within the Employee Record.


Obtain the four digit reference

Sage 50 Payroll contains a report, which you can use to view the four digit reference for your employees. It displays the reference for each employee by process date.

  1. Click Reports then click Employee.
  2. Click Employee BACS Hash Sub Reference.
  3. Click Preview.
  4. Enter the required criteria then click OK.

If you run the Employee BACS Hash Sub Reference report and you have hash references for pre RTI periods, and not for the periods since you've migrated to RTI, please refer to the above sections to ensure you've entered all the required information.


Produce and export the BACS pay transfer report with BACS Hash

These reports are for use with the Direct BACS payment method.

Produce the report
  1. On the Employee List, select the required employees.
  2. Click Reports then click Employee.
  3. Click the BACS pay with BACS Hash.
  4. Click Preview.

    If you pay your employee using a second bank account, you should also print the report for their second account.

  5. Enter the required criteria then click OK.
  6. Click Export then complete the Save As window as:
    • Save in - Select the required drive and folder.
    • File name - Enter the required file name.
    • Save as type - Select CSV Files (*.csv)
  7. Click Save then click Close.

If you need to save the report in a different format, for example a text file, you can follow the same process, just select the relevant file type in the Save as type field.


Produce the e-Banking payment file with BACS Hash

This method is for the Direct BACS payment method, using an e-Banking component that supports the BACS hash reference.

  1. Click payroll then click Change Process Date.
  2. Set the process date to a date within the period you want to make the payment.
  3. On the Employee List, select the required employees.
  4. Click e-Banking then click OK.
  5. Check the values and deselect employees that you don't want to pay then click Post.

    If you've selected employees who've previously been posted for this period, a message appears advising you of this. If you want to post the payment details for these employees again, click Yes, otherwise click No, deselect the relevant employees then click Post.

  6. Click OK.

    Depending on the banking software you are using, the Payment Processing window may appear. Ensure the debit date is correct, make your selection from the available options and enter the required references then to continue, click OK. The debit date is the date that the payment transactions use when posted to your bank.

  7. If required, edit File name and change file location then click Save.



[BCB:131:Limitless - 50 Payroll - Employees:ECB]

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