You can use Sage 50 Payroll to pay your employees weekly, fortnightly, four weekly or monthly. If you pay your any of your employees annually, follow the steps below.

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 may prefer to set the pay frequency to Monthly.

You may 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, you need to advance the pay to the end of the tax year to ensure tax is calculated 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

1. Select the required employee, click Payroll, then click Change Process Date.
2. Set your process date to the date you're paying employees, then click OK.
3. Click Enter Payments, then enter the payment.
4. Click Advance Pay, then enter the number of periods to be advanced up to the end of the tax year.
    NOTE: For example, if you're paying the employee in December, tax month 9, you advance pay for three periods.
5. On the Payments tab, enter the required payments.
    NOTE: This needs to be the total for the full advanced pay period.
6. If required, enter deductions, attachments and loans in the relevant tabs, then click OK.
7. Click Save/Next, then click Close.

Process annual pay in tax month 12

1. Select the required employee, click Payroll, then click Change Process Date.
2. Set your process date to the date you're paying employees, then click OK.
3. Click Enter Payments, then enter the payment.
4. If required, enter deductions, attachments and loans in the relevant tabs, then click OK.
5. Click Save/Next, then click Close.

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