Create and manage payments

Payroll supports different payment types. These split into different categories. When you create a new payment, you base it on one of these payment types. This determines whether it is subject to tax and NI.

Payment Category	Payment Type	Subject to PAYE?	Subject to NI
Hourly Payments	Basic Hours	Yes	Yes
	Overtime Hours	Yes	Yes
	Other Hourly Pay	Yes	Yes
Salary	Salary	Yes	Yes
	Bonus	Yes	Yes
	Commission	Yes	Yes
	Other Salary Payment	Yes	Yes
	Taxable Non-NIable	Yes	No
Holiday Pay	Advance Holiday Pay	Yes	Yes
	Hourly holiday pay	Yes	Yes
	Salary holiday pay	Yes	Yes
Expenses	Business Expenses	No	No
	Private Expenses	Yes	Yes
	Benefits in Kind	Not available	N/A
Redundancy	Taxable redundancy	Yes	Employers NIC only
Redundancy	Non-taxable redundancy	No	No

TIP: Use Taxable Non-NIable payment types to process the final pay for an employee who has passed away.

To create a new payment

Select Settings.
Select Payments & Deductions.
Select Payments.
Select Create New Payment.
Enter the details of the new payment.
Select Save.

You can also edit the payment details from this screen. Select the payment from the list, and select Edit.

The following options are available:

Item	Description
Payment Category	The employee may receive several different types of payment in a pay run. These payments have different categories. Hourly Payments Salary Holiday Pay Expenses Redundancy
Payment Type	When you create a new payment, you must specify the category it belongs to. Also specify the payment type to base the new payment on.
Name	The name of the payment. This appears on payslips. You can accept the default name or enter your own.
Description	Text to explain the purpose of the payment. You can accept the default description or enter your own.
Include in Calculation of	The following options are available: Pension Earnings – Include the payment when calculating pensionable earnings Qualifying Earnings – Include the payment when calculating qualifying earnings Salary Sacrifice - Include the payment when calculating the Salary Sacrifice pension contribution NOTE: This option is only available for a payment that is subject to PAYE and National Insurance.

The payment now appears in the payments list in the Payments tab. Add it to your employees during the next applicable pay run.

Read our article Process a pay run.

[BCB:299:UKI - Personal content block - Dane:ECB] [BCB:308:UKI - Search override - Payroll UK / IE:ECB]
[BCB:276:UKI - hide back button:ECB]

﻿Payment types available

To create a new payment

Payment types available