Solution Properties
Solution ID:
200427112252097
Last Modified Date:
Tue Dec 10 12:02:49 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 using a Service User Number (SUN), include a character reference or 'hash' in your FPS.

Include a hash reference if you answer yes to both questions:

  1. Do you use BACS direct credit for any payments?
  2. Do you have your own SUN for the BACS system?

When you update records, the BACS hash reference is created. Include this hash in your FPS and enter a four-character reference in field seven of the BACS payment instruction.

When HMRC receives your FPS, they decode the hash to find the four-character reference and check it against the BACS payment instruction. This ensures the payment details in the FPS match what the employee received via BACS. If you split an employee's pay between two accounts, the hash reference is only for the account getting most of the pay.

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

Sage 50 Payroll generates the BACS hash using:
  • A recognised algorithm based on the company bank sort code
  • The employee's bank sort code from their 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: Assign employees to this method and upload the new BACS reports with the hash reference into your BACS software
  • BACS: If using e-Banking, assign employees to the BACS payment method. Create a payment file with the hash reference using the correct e-Banking component for your bank

Not all banks that support e-Banking also support the BACS hash reference. If you don't have a SUN, you can continue using the BACS payment method. For compatible banks, 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.

Enter your employees' bank details in the Banking tab of the Employee Record to ensure they appear on the BACS hash report. 

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.

Enter your employees' bank details in the Banking tab of the Employee Record to ensure they appear on the BACS hash report. 

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 the Employee BACS Hash Sub Reference report shows hash references for pre-RTI periods but not for periods since RTI, check the above sections to ensure all required information is entered.

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 an employee using a second bank account, print the report for that account too.

  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.

Follow the same process to save the report in a different format, selecting the desired 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 select employees already posted for this period, a message will notify you.

To repost the payment details, click Yes, otherwise click No, deselect the relevant employees then click Post.

  1. Click OK.

    Depending on the banking software you’re using, the Payment Processing window can appear.

Check the debit date, enter the required references from the options, and click OK to continue.

The debit date is the date that the payment transactions use when posted to your bank.

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