Creating a new employee record in Sage 50cloud Payroll.

When someone new starts at your business you will need to set up a new employee record.  The details of the new employee are then included in the full payment submission (FPS).

There are two ways of creating a new employee:

  • The Employee Wizard – enter personal details, tax code, NI number and information from the employee’s P45, all in one place.
  • The Quick Employee option – enter the employee’s basic information.

To enter your employee’s details you will need a copy of their P45.  If they don’t have a P45, you need to ask them to complete a starter checklist (this can be downloaded from HMRC).

If you have staged for automatic enrolment and are using the Pension Module, remember to leave the pension scheme details blank.  This is so the employee can be assessed when you process you pay run.  They will be automatically enrolled it they meet the criteria.

Add an employee via the Employee Wizard

  1. Click Employee, then click Employee Wizard.
  2. Click Next enter the employee’s name and address.
  3. Click Next enter the employee’s personal details.
  4. Click Next enter the employee’s employment details.

These are matched to HMRC records when you submit your FPS

  1. On the Have you conducted a Right to Work check ? list, click the relevant option.
  2. Leave the RTI Payroll ID blank, as it’s created automatically when you save the record.
  3. Click one of the following:
  • P45
  • P46 – If your employee doesn’t provide a P45, you must ask them to complete a starter checklist.
  1. If relevant, select Is your employee in the Government’s Welfare to Work programme?
  2. On the Start Declaration list, click the employee statement.
  3. Enter the remaining information from the employee’s starter form, then click Next.
  4. Ensure the employee’s tax code is correct.
  5. Enter the employee’s national insurance (NI) number and category, then click Next.
  6. Continue through the rest of the wizard, completing the relevant information.
  7. Click Finish.

Add an employee via the Quick Employee option

  1. Click Employee, then click Quick Employee.
  2. Enter the employee’s details, ensuring you complete all details marked with an asterisk *.
  3. Click Save and Clear.

If you would like help adding a new employee(s) or need any other help or advice with your payroll please contact us

Sage have released another update for their Job Retention Scheme Module to help you through the full process of assessing and notifying your employees and producing the file to submit the information for your claim to HMRC.

To make sure you have this functionality please check you have the latest version installed.  To check your version number, open your software then click Help then click About.  If your version is v26.01.244, then the Job Retention scheme Module is up to date and you don’t need to do anything.

If you have any problems downloading and installing the latest Sage payroll update please contact us.


VAT Changes for Hospitality, accommodation and attractions

To help businesses in the hospitality, holiday accommodation and attractions sectors, the Chancellor has temporary reduced rate of VAT to 5% from the 15 July 2020

In Sage 50 Accounts you can edit and add tax codes in the software.  You can create a new tax code to represent the temporary 5% VAT rate, making it easier to identify transactions you have entered during this temporary reduced VAT rate period for reconciliation and analysis purposes.

Create a new tax code

You can use a new tax for transactions that qualify for the reduced VAT rate.  Sage recommends using T15, if T15 is already in use, use the next available code.

  1. On the menu bar (top of screen), click Settings, then click Configuration then click Tax Codes.
  2. Select tax code T15 or the next used available code and click Edit.
  3. Complete the Edit tax code window as follows:

Rate :  Enter the required percentage – 5%

Include on VAT Return :   To ensure the transactions are picked up by the VAT return, select this check box.

Reverse Charge :  Leave as “No”

EC Code settings :  Leave the check box unticked

Description : Enter this description: Temporary Reduced VAT Rate.

  1. Click OK, then click Apply.
  2. Click Close, then if prompted to Save the changes, click No.

Your new tax code is now ready to use from 15th July.

Remember there are various parts of your program which will need to be updated.

  1. Recurring entries – Invoices and Credits
  2. Recurring entries – Bank transactions
  3. Memorised batch invoices and credits
  4. Memorised bank payments and receipts
  5. Outstanding Orders and Invoices
  6. Customer, Supplier and Product Records

You will need to processes items up to the 14th July before applying the changes.

If you would like help creating a new tax code or amending any other part of your Sage or need any other help etc. or would like a quote or to purchase an upgrade please contact us

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