Pay element settings

If you're unsure of the settings to use on your payment, you must contact:

• HMRC, to check if the payment should be pre or post tax and NI.
• Your Pension provider, to check if the payment should be pensionable or be included in qualifying earnings.
• To check if the payment should be included in the attachment of earnings calculations, contact DWP, or the authority who issued your employees' attachment order.

Set up a pre tax, pre NI payment

If you want your employee to pay tax and NI on the bonus payment.

1. Click Company then click Pay Elements.
2. Click New and enter the required description.
3. Select the PAYE and National Insurance check boxes.
4. Clear or select the remaining check boxes as required.
5. Click OK, then click Close.

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Cash awards

If you provide a cash award, you must include the value of the award in the employee's gross pay and deduct tax and NI as normal. You should use a pre tax, pre NI payment for the value of the cash award. Alternatively, if you want the employee to receive a specific net amount, set up a net payment.

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Set up a net payment

If you use a net payment, you can enter the amount you want the employee to receive in their net pay, and their tax and NI liability is calculated and added to the gross pay. This extra gross pay is known as the Cost of Net payments.

1. Click Company then click Pay Elements.
2. Click the Net Payments tab.
3. Click New and enter the required description.
4. To adjust pay for your employee's tax, select Employee's Tax.
5. To adjust pay for both your employee's tax and NI, select Employee's Tax and NI.
6. Clear or select the remaining check boxes as required.
7. Click OK, then click Close.

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Assign the pay element to an employee

1. Double-click the relevant employee.
2. Click the Employment tab, then click Pay Elements.
3. On a new line beneath the last payment on the list, click the finder button.
4. Choose the required description, click OK.
5. Enter the relevant hours and rate.
6. Click Save, then click Close.

To assign a pay element to several employees at the same time, use the Global Changes option. Read more >

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Removing the Christmas bonus payment

If you paid a Christmas bonus payment in December, you can remove it from the payslip by changing the value of the payment to £0.00. Alternatively, you can change the status of the payment to not in use in the employee's record:

1. On the Employee List, select the required employees.
2. Click Employee then click Employee Record.
3. Click the Employment tab then click Pay Elements.
4. Set the In Use column for the Christmas bonus payment to No.
5. Click Save then click Save.
6. To move onto the next employee, click Next then repeat steps 3 to 5 for each employee. 

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