Tips

Payroll

Process redundancy pay

Redundancy pay is normally free of tax and national insurance (NI) up to the value of £30,000.

To process this you will need to set up a post-tax and NI payment up to the value of £30,000.  If the payment is above £30,000 you will also need to set up a payment subject to Class 1A national insurance.  For example if your employee receives a £35,000 redundancy payment, you should pay £30,000 against the post-tax and NI Payment and £5,000 against payment subject to Class 1A national insurance.

You will also need to check if the payment is subject to pension or attachment of earnings order deduction(s).

Process redundancy pay up to the value of £30,000

Set up a post-tax and post NI redundancy payment:

  1. Click Company then Pay Elements then click New.
  2. Enter the required description then clear the PAYE and National Insurance check boxes.
  3. Clear or select any relevant check boxes as appropriate.
  4. Click OK the click Close.

Assign the payment to an employee:

  1. Double click the required employee.
  2. Click the Employment tab then click Pay Elements.
  3. On a new line beneath the last payment on the list, click the finder button.
  4. From the drop-down list choose the required description, click OK.
  5. Enter the relevant hours and the rate then click Save.
  6. Click Save then click Close.

To assign the payment to several employees at the same time, use the Global Changes option.

Process redundancy pay in excess of £30,000

Set up a post-tax and post NI redundancy payment:

  1. Click Company then Pay Elements then click New.
  2. Enter the required description then clear the PAYE and National Insurance check boxes.
  3. Clear or select any relevant check boxes as appropriate.
  4. Click OK the click Close.

Set up a termination payment subject to Class 1A national insurance:

  1. Click Company then Pay Elements then click New.
  2. Enter the required description then select Termination Payment Class 1A check box.
  3. Click OK the click Close.

Assign the payments to an employee:

  1. Double click the required employee.
  2. Click the Employment tab then click Pay Elements.
  3. On a new line beneath the last payment on the list, click the finder button.
  4. From the drop-down list choose the required description, click OK.
  5. Enter the relevant hours and the rate then click Save.
  6. Repeat steps 3 to 5 for the next payment.
  7. Click Save then click Close.

To assign the payment to several employees at the same time, use the Global Changes option.

Once you process the redundancy payment, finish processing your payroll and submit the FPS as normal, you should mark the employee as a leaver.

If you would like help processing redundancy payments or making employees leavers etc. need any other help or advice with your payroll please contact us

Payroll

Quick Statutory Maternity Pay (SMP)

You can quickly record SMP and keep track of employee’s maternity leave using the Quick SMP option.

  1. Go into your Payroll, then click Change Process Date.
  2. Enter the required process date, then click OK.
  3. Select the required employee, then click Employee.
  4. Click Recording Maternity.

If a message appears advising that you have already paid SMP to this employee, to record details for another child, click Yes.

  1. If the employee has given you suitable medical evidence, select this check box.
  2. Enter the date the baby is expected to be born.
  3. To check the employee’s entitlement, click Check Entitlement.
  4. Enter the date the employee last worked before starting her maternity leave.

SMP does not start until this date and cannot start more than 11 weeks prior to the expected date of birth.

  1. If known, enter the date the baby is born.

You can enter this information at a later date when the baby is born.  If the baby is born late and the employee’s last date of work is after the expected date of birth, you must enter the actual date of birth.  If the baby is born more than 11 weeks early, please enter the date and refer to step 11.

  1. If the employee chooses to end her maternity leave, enter the date she returns to work.
  2. If applicable, click Special Circumstances and complete the relevant information.
  3. Click OK then click Earnings during set period.
  4. Click OK then check the key dates and if required, print the form using the link then click Save.

The SMP calculates automatically, up to your current process date.  To check the amounts open Enter Payments then click the Summary tab then check the value in the Current column.

If you would like help recording SMP or need any other help or advice with your payroll please contact us

 

Accounts

Running Reports for previous financial year

If you want to run management reports such as a balance sheet, profit and loss or trial balance report for a previous year, the best option is to run the report from within the previous year’s archive data.
If you didn’t archive your data and you have not cleared the audit trail you can for the relevant period run transactional reports.
Please note Sage 50cloud Accounts Essentials does not include these reports and you will need to use your archive data.

Running Reports from Archive Data

To run a report from your Archive Data
1. Go to File > Open > Company Archive
2. Select the year you require and click OK
3. Enter your login name and password as normal and click OK.
4. You can now run any report as normal.

Running Transactional Management reports

You will first need to locate you ledger year end journals.
1. On the Navigation pane, click Transactions.
2. In the search window, type Ledger Year End, then press enter.
3. Check the date field to confirm the financial year end journals for the required year.
4. Make a note of the transaction numbers of the first and last ledger year end journals.
Running the report
1. Click Nominals then click Reports.
2. Click the relevant management report. For example Profit and Loss.
3. Click the Transaction Profit and Loss report, then click Preview.
4. In the Criteria window, set the criteria
5. Click OK.

If you would like help running reports for a previous year, achieving your data Sage or need any other help etc. or would like a quote or to purchase an upgrade please contact us

Payroll

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

Accounts

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

Payroll

Reprinting a payslip from a previous period

It is quick and easy to reprint payslips.

Reprinting a payslip
1. Click Payroll.
2. Select the employee(s) you want to reprint payslips for or if no employees are selected all employees will be included.
3. In Links scroll down and click Reprinting Payslips.
4. Enter the date range as required, you can also select a range for Departments and Cost Centres
5. Click OK.
6. Select the Payslip layout you require, you can then Preview, Print etc as normal.

If you would like help reprinting payslips or need any other help or advice with your payroll please contact us

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Vital Support services during COVID-19

Most of the team are working from home but we are still contactable by email or telephone.

We are currently not able to visit your premises but we do have the ability to remotely login to your system from our home offices to provide any accounts, VAT or payroll support you need.

We are busy dealing with lots of questions from clients and the challenges of working from home – we ask that you be patient and understand that we may take a little longer than usual to reply to an email.

The latest Government advice can be found at https://www.gov.uk/coronavirus/business-support

You can call us on 01691 654545 or email us at: [email protected]