The pay frequency you set for the employee is up to you, but you must advance the correct number of periods in the steps below. To simplify this, you can change the pay frequency to Monthly. You sometimes need to process a director annually. They need to have become a director from the start of the tax year you're processing, that's 6 April, or before. If you're processing the annual pay in tax months 1 to 11, advance the pay to the end of the tax year. This is to ensure Sage 50 Payroll calculates the employee's tax correctly for the year. If you're processing the annual pay in month 12, you can process the pay as normal.
Process annual pay in tax months 1 to 11 - Select the required employee, click Payroll, then click Change Process Date.
- Set your process date to the date you're paying employees, then click OK.
- Click Enter Payments, then enter the payment.
- Click Advance Pay, then enter the number of periods you're advancing to the end of the tax year.
- For example, if you're paying the employee in December, tax month nine, advance pay for three periods
- On the Payments tab, enter the required payments.
- This needs to be the total for the full advanced pay period
- If required, enter deductions, attachments and loans in the relevant tabs, then click OK.
- Click Save/Next, then click Close.
TIP: When you follow the steps above, you don't need to submit an Employer Payment Summary indicating there's no payment for future periods.
Process annual pay in tax month 12 - Select the required employee, click Payroll, then click Change Process Date.
- Set your process date to the date you're paying employees, then click OK.
- Click Enter Payments, then enter the payment.
- If required, enter deductions, attachments and loans in the relevant tabs, then click OK.
- Click Save/Next, then click Close.
|