Create and manage payments

Solution Properties

Solution ID:

222001000101710

Last Modified Date:

Wed Jan 29 10:53:33 UTC 2025

Taxonomy Path:

Case category//How do I...

Author:

[email protected]

Create and manage payments

Description

To pay your employees, you need to set up different payments. These help you organise and control how you pay your employees. These will then show on their payslip.

You can determine if the payment is:

Subject to Tax and National Insurance (NI)
Included in a pension calculation
Paid as a lump sum or at an hourly rate

Cause

Resolution

You can create as many payments as needed. These are then available to add to the employees payslip as needed.
NOTE: You can add the same payment to as many employees as you need.

▼Payment types available

The payments fall into different categories and types. The table below shows how these work.

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
	Non-taxable redundancy	No	No

▼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’s subject to PAYE and National Insurance. For more information, read Common pension terms.

The payment now appears in the payments list in the Payments tab. You can add it to your employees during the next applicable pay run. To do this read Process a pay run.

▼To edit the payment

Select Settings.
Select Payments & Deductions.
Select Payments.
Select Edit on the required payment.
Change as needed.
NOTE: You can't edit the Payment category and Payment type. You must set up a new payment if these are incorrect.

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