National minimum/living wage (NMW) - Update your employees' rates
Description

National minimum wage legislation requires you to use the old rates when you process a pay period that overlaps 1 April. Your software applies this correctly when you use the NMW check feature.

If you apply the minimum/living wage check in Sage 50 Payroll, the program prompts you if you need to increase rates. You can then choose whether to apply the increase automatically, or change the employee's rate manually.

Cause
Resolution

 NOTE: You need to update the employee's rates in both areas below. If you don't, Enter Payments may default back to the rate in the employee record when you process the next pay period.

Adjust the rates automatically in Enter Payments

  1. On the Employee List, select the employees you want to pay.
  2. Click Payroll then click Enter Payments.
  3. Enter the hours and rates for the first employee.
  4. Click Save/Next.
    • The minimum wage check calculates whether you paid employees the minimum wage, or apprentice rate, for their age band. If the employee's earnings meet the minimum/living wage or apprentice rate level, the next employee appears. Enter their hours and rates and continue as normal.
  5. If the employee's earnings are below the minimum/living wage the following message appears:
    • 'This employee is being paid less that their Minimum/Living Wage. Increase the rate of one of the following payments so that they are paid their Minimum/Living Wage. Please select the payment to adjust:If you do not adjust their rate of pay then they are paid less that their Minimum/Living Wage.'  
  6. To adjust the changes, automatically click Adjust or, to make the changes manually click Cancel.
  7. The next employee appears. Enter their hours and rates and continue as normal.

Update the default rates in the Employee Record

  1. On the Employee List, double-click the required employee.
  2. Click the Employment tab then click Pay Elements.
  3. Enter the default hours/No. and Rate for the required payment.
  4. Click Save, then click Save, then click Close.

 

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