Payroll

Holiday Schemes

You can manage and record the holidays your employees book and have taken within your Sage 50 Payroll.  You can create different holiday schemes for different employees

Assign a holiday scheme to an employee

1. Double-click the relevant employee.
2. Click the Absence tab, then click Holiday.
3. Select the required Scheme Number (see previous month’s newsletter on how to set up a scheme), then click Ok
4. Check the holiday scheme details are correct, then click OK.
5. Click Save, then click Close.

You have now assigned a holiday scheme to an employee.  You can now start recording holidays taken.

Record holidays booked and taken

1. Double-click the relevant employee.
2. Click the Absence tab, then click Diary Entry.
3. From the drop-down lists, select Holiday.
4. Click Booked or Taken.
5. In the From drop-down, Choose AM or PM, then enter the required date.
6. In the To drop-down list, Choose AM or PM, then enter the required date.
7. If required, enter details of the holiday in the Comment Box.
8. Click OK, then click Save.

You have now recorded a booked or taken holiday on your employee’s absence diary.  The total number of days is deducted from their entitlement.

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

Accounts and payroll

Nominal link

If you have Sage 50cloud Accounts and Payroll, you can save time when you process your wages, by automatically posting your salary journals to the accounts.

The Nominal Link connects your Sage 50coud Payroll to your accounts data, this means that when you process your wages, it automatically posts your salary journals to your selected nominal ledgers as soon as you complete your payroll run, saving time and helping to reduce errors.

To use the Nominal Link you must first find out where your Sage Accounts company file is located, then set up the Nominal Link in Payroll.

Locate your Sage Accounts company file

The company file holds the location of you Sage Accounts data and you need to enter it into your nominal settings in Sage 50cloud Payroll.

It is usually located in C:\Program Data\Sage\Accounts. If you cannot find the company file you can go to Help > About in Sage Accounts

Note: If you can’t see the Program Data file you may need to amend your file explore settings to show hidden items

Payroll

Set up Nominal Link

1. Go into your Sage Payroll
2. Click the Company navigation bar then click Nominal Settings.

Defaults Tab
1. On the Accounts Software or File list, select Sage 50 Accounts.
2. Click Browse, then locate the Sage 50 Accounts Company File.
3. Click the Company file, it’s usually at the bottom of the list, click Open.
If you have more than one company, on the Company list, click the one you want to post to.
4. To use the default nominal codes, click Use Default Nominal Codes, then click OK.
P&L Analysis Tab
1. Click the P&L Analysis tab.
2. Enter any additional nominal codes for the remaining categories.
3. If required, enter the code in the Acc C/C (cost centre code) column.
4. If required, enter the code in the Acc Dept (department code) column.
5. To automatically record the bank payment for your net wages when you post the nominal link, on the Bank Payment N/C list, click the bank account you want to record the payment against.
You have now set up the nominal link and are ready to post the nominal link.

Post the Nominal Link
1. Ensure you have processed the payroll as normal for the pay period you want to post.
2. If you are posting directly to your accounts software we recommend that you take a backup.
3. From the Employee list, select the required employees.
Note: You can only post the nominal link for one payment frequency at a time e.g. you cannot post a mixture of weekly and monthly paid employees at the same time.
4. Click Payroll, click Nominal Link then click Next.
5. Check, and where necessary, change the information as follows:
Posting Destination – this box shows the accounts software you selected in Company > Nominal Settings.
Transaction Reference – Enter your own reference up to eight characters, for example Week 4.
Transaction Date – Enter the date you want to post the transactions with. To change the date use the calendar button.
Group Transactions – To post the transactions totalling all employees, select this check box. To post separate transactions for each employee and have the information shown by employee on the Nominal Link Transaction Report, clear this check box.
6. Click Next, click Print, then click OK.
7. To send the details of the transactions to Microsoft Excel, click Send to Excel.
8. Click File, then click Exit.
9. If you have set up the nominal code for bank payments, click Next. Alternatively, proceed to step 11.
10. Check, and where necessary, change the following information:
Transaction Reference – Enter a reference for the bank posting. This reference become the transaction reference in your accounts software.
Transaction Date – Enter the date you want to post the bank payment transaction. To change the date use the calendar button.
11. Click Next, click Print, click OK, then click Finish.
12. You will need enter your Sage 50cloud Accounts user name and password. Click OK, then click OK.
Note: If you have a multi-company version of Sage Accounts, choose the required company, enter your user name and password, click OK, then click OK.

If you would like help setting up your nominal link or processing the nominal link etc. or need any other help or advice with your payroll please contact us

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.

5. If the employee has given you suitable medical evidence, select this check box.
6. Enter the date the baby is expected to be born.
7. To check the employee’s entitlement, click Check Entitlement.
8. 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.

9. 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.

10. If the employee chooses to end her maternity leave, enter the date she returns to work.
11. If applicable, click Special Circumstances and complete the relevant information.
12. Click OK then click Earnings during set period.
13. 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.

4. If relevant, select Is your employee in the Government’s Welfare to Work programme?
5. On the Start Declaration list, click the employee statement.
6. Enter the remaining information from the employee’s starter form, then click Next.
7. Ensure the employee’s tax code is correct.
8. Enter the employee’s national insurance (NI) number and category, then click Next.
9. Continue through the rest of the wizard, completing the relevant information.
10. 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