Employee records - A detailed breakdown

Access the employee details

Select Employees from the menu bar.
Select an employee from the list.
Select the Employee Details tab.

NOTE: If you change any of the details in the record, select Save.

▼Personal Details

This section contains the:

Employee name
National Insurance number (NI)
Date of birth
Gender

No NI number?

If the employee hasn't supplied an NI number

Leave the NI Number box blank
Start the employee on a P46 basis

HMRC will trace the employee’s NI number and send you a CA6856 form to confirm the number.

After you complete all relevant fields, select Save.

If an NVR response message appears, this may be due to an issue with the employee’s NI number.

▼Contact Details

This section contains the:

Full postal address
Telephone number
Email address

NOTE: You must enter an email address if you want to use Sage HR Essentials or email payslips.

After you complete all relevant fields, select Save.

If an NVR response message appears, this may be due to an issue with the employee’s NI number.

▼Employment Details

This section contains:

Pay Cycle	Select how often you’re going to pay this employee. This can be weekly, two weekly, four weekly or monthly.
Contracted Weekly Hours	The set number of hours the employee works for you per week.
Pay Type	Select either Salary or Hourly.
Works Number	The unique code that identifies the employee in the company.
Start Date	The date the employee started working for you.
Finish Date	Only fill this in when the employee leaves the company.
Payment Method	The method you pay your employee. If you select Bank Transfer, enter the account details.
Deemed Employee	If off-payroll working rules apply to a worker, select this check box. If you’re unsure, read our article Off-payroll working rules apply - IR35

▼Current Tax Details

This section contains:

Tax code	In the 2024/2025 tax year, the basic tax code is 1257L
Week1/Month1	Tax codes with a W1 or M1 suffix ignore accumulative values. The tax calculates using the gross pay for the current period only. The tax allowance is for the first week or month of the tax year, regardless of the actual tax period.
Ni category	An employee pays national insurance (NI) contributions to qualify for certain State benefits. Read our article National Insurance (NI).
On Trade Dispute	Select this if there’s a dispute with the employee. This doesn't prevent the employees' payments. It will flag up as a reminder during the pay run, at the Edit Pay stage.
RTI Pay ID	Every employee has a unique employee reference for your company. It's included in submissions to HMRC. The payroll assigns unique reference numbers to all new employees. What if I'm transferring from another payroll system? If you’re adding a new employee who has had no previous processing: Leave the RTI Pay ID blank If you add an employee already processed in your previous payroll system: Enter the RTI Pay ID from your old system If your previous payroll system was HMRC Basic Tools, or you don't have access to the RTI Pay ID: Contact the HMRC Employer Helpline and ask for the employees RTI Pay ID.

▼Directorship Details

This section contains:

Directorship Details

If the employee is a director of the company, select the Is a Director check box.

Directorship Started

Specify whether the employee became a director in a previous tax year, or during the current tax year. If the directorship started in the current tax year, you must also specify the start date.

Preferred Calc Method

You can calculate Directors’ NI in two ways.

Each method gives the same NI liability amount at the end of the tax year. NI payments within the tax year can vary under the two methods:

Calculate NI Cumulatively
This is the default calculation method. Use if you pay your director in regular intervals. It uses annual earnings thresholds to determine the director's NI liability in a pay run.
Calculate NI Per Pay Run

Sometimes called the alternative method. It uses weekly or monthly earnings thresholds to determine your director's NI liability. It doesn’t reference other pay runs.

Use this if you pay your directors in regular periods. It produces an average NI liability in each pay run. A balancing calculation is then happens using year to date earnings thresholds. This makes any necessary correction to the director’s NI liability.

Find out more about director's National Insurance.

To change your employee from a director to a standard employee you’ll need to edit the employee record. Go to the Employees tab and select the relevant employee record. Under Directorship clear the Is a Director checkbox.

After you complete all relevant fields, select Save.

TIP: The employee NI will calculate on a cumulative basis until the end of the current tax year. Next tax year, the NI calculation method will revert to Per Pay Run.

▼Previous Tax Details

Use this section when:

You have a new starter
Read our article Add a new employee
An established employee brings you a P45 from the current tax year
HMRC informs you of an employee tax code change (P6 or P9)

If your new employee has a P45, you’ll use the section Employee Declaration: P45.

If your employee has no P45, you’ll use section Employee Declaration: P46.

If you're unsure what to use when creating a new employee, you can use the HMRC online tool.

Starting Basis	Description
This is an existing employee	Select this option if you’re setting up an employee who already works for you and you pay them in the normal way. For example, if you’re setting up for the first time, you need to set up your existing employees.
Employee Declaration: P45	Select this option if the new employee has presented a P45 Part 3 issued by their previous employer. Then choose one of the following options: Circumstance A Use this if it's the employee’s first job since 6 April and they haven’t received any of the following: Taxable Jobseeker’s Allowance Employment and Support Allowance Taxable Incapacity Benefit State or occupational pension Circumstance B Use this if it's the new employee’s only job, but since 6 April any of the following apply: They’ve had another job They have received taxable Jobseeker’s Allowance They have received Employment and Support Allowance They have received taxable Incapacity Benefit This also declares that they don’t receive a state or occupational pension. Circumstance C Use this if the new employee: Also currently has another job Receives a state or occupational pension NOTE: If you’re unsure which circumstance to use, you can use the HMRC online tool.
Employee Declaration: P46	Select this if the new employee doesn’t have a P45 from their previous employer. Then choose one of the following options: Circumstance A Use this if it's the employee’s first job since 6 April and they haven’t received any of the following: Taxable Jobseeker’s Allowance Employment and Support Allowance Taxable Incapacity Benefit State or occupational pension Put the employee on a 1257L tax code. Circumstance B Use this if it's the new employee’s only job, but since 6 April any of the following apply: They’ve had another job They have received taxable Jobseeker’s Allowance They have received Employment and Support Allowance They have received taxable Incapacity Benefit This also declares that they don’t receive a state or occupational pension. Use the tax code 1257L on a 'Week 1/Month 1' basis. Circumstance C Use this if the new employee: Also currently has another job Receives a state or occupational pension This applies a BR tax code. There's no free pay allowance and gross pay gets taxed at 20%. Use the tax code BR Unknown Use this if you don’t have enough information on the employee to complete a P46. This applies tax code 0T on a Week 1/Month 1 basis with no free pay allowance. Tax calculates as normal, at 20%, 40% or 45% depending on the employee’s earnings. Employees must contact HMRC so the correct tax code is issued. NOTE: If you’re unsure which circumstance to use, you can use the HMRC online tool.

Depending on the Start Basis you chose, enter the following details:

NI Category	The employee’s National Insurance category. You must specify this for new employees. The letters are A, B, C, J, H, M and Z. Employees under 16 normally use letter A. This confirms the employee isn't due to pay NI. This isn't payable until they turn 16. See the gov.uk site for more information about child employment.
Tax Code	The tax code determines the tax allowances your employee gets. You must enter this if the employee already works for you or has presented a P45 Part 3. The tax code is on the P45 Part 3. If the new employee doesn't present a P45, they must complete a P46. This says which tax code they should be on. HMRC will notify you if the employee's tax code needs updating.
Leaving Date	The date the employee finished their previous employment.
Week 1/Month 1	If your employee’s tax calculates on a week 1/month 1, or non-cumulative basis, select this check box. This bases the tax on their pay in the current period, instead of cumulative for the full year.
Final Pay Period	The week or month of your employee’s final pay run in their previous employment.
Total Pay to date	The total amount of pay your employee has received in the tax year to date, if any. You can get this from their P45 Part 3. If they're set to Week 1/Month 1, set this value to zero.
Total Tax to date	The total amount of tax paid by your employee in the tax year to date, as specified on their P45. If they're set to Week 1/Month 1, set this value to zero. If they aren't set to Week 1/Month 1, Payroll calculates their total tax liability for the tax year to date based on: The employee’s tax code The final pay period Total pay to date The calculated value should agree with the P45 Part 3. If the values don’t agree, the Calculated P11 Tax appears. This specifies the calculated value. The calculated value adds onto the P11. It's then used for tax calculations, rather than the value on the P45.
Student loan	Select this if the previous employer deducted student loan repayments.

This section contains the:

No NI number?

This section contains the:

This section contains:

This section contains:

This section contains:

Use this section when:

Circumstance A

Circumstance B

Circumstance C

Select this if the new employee doesn’t have a P45 from their previous employer. Then choose one of the following options:Circumstance A

Circumstance B

Circumstance C

Unknown

Depending on the Start Basis you chose, enter the following details:

Select this if the new employee doesn’t have a P45 from their previous employer. Then choose one of the following options:

Circumstance A