Skip to content
logo Knowledgebase

Employee records - A detailed breakdown

Created on  | Last modified on 

Summary

An explanation of your Employee Details, and what to enter in Sage Payroll.

Description

This article will explain each of the options in an employee record.

Before you process a pay run, you need to make sure:

  • You've created a record for each of your employees
  • The information on each employee record is accurate and up to date

Resolution

Access the employee details

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

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

▼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. 

Related Solutions

My employee left the company but has now come back

When should I use Insurance Category M?

Working patterns

Adding a pension scheme to an employee

GDPR personal data within an employee record