Manage payments

Summary

How to set up, edit and delete payments in Sage Payroll.

Description

To pay your employees, you need to set up different Payments. These help you organise and control how your employees receive and view their pay. This 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

You can create as many payments as needed and use each one for all your employees.

Resolution

Payment types

Payroll supports different payment types, organised into payment categories.

When you create a new payment, you base it on one of these payment types. This determines whether it’s a subject to PAYE and NI.

▼Payment types available

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
Payrolling of Benefits	Benefit In Kind (BIK)	Yes	No

CAUTION:

Only use a BIK payment for processing benefits.

Create a new payment

You can create as many payments as you need. Once done, you can add it to your employees during a pay run.

To see how to do this, read Create a payment.

Edit a payment

There are limitations to editing a payment, once it's created. If necessary, you can create a new one to replace the incorrectly set up one.

To edit the monetary value of a payment, you must select the relevant employee when processing the pay run.

Delete a payment

You can’t delete payments entirely in Payroll, but you can remove payments from an employee when you’re processing the pay run.