zero-hour staff payroll

Dear Sage community

I am a SAGE ONE online payroll user. I am currently setting up the payroll for a zero hour contract staff who will start with us next month. I have few questions:

1. "employment details- Contracted Weekly Hour": shall I select "other" as contracted hours may vary week by week?

2. for "previous tax details"- P45, P46, which one should I choose, the new starter is a university graduate who will not hold any previous jobs.

2. when doing payrun, is it easy to figure out the total pay in the software?

3. do I need to set up the pension in the payroll for the zero hour staff?

4. holiday pay: I understand that casual workers are entitled to holdiay pay (12.07% x hours). Any where in the payroll  software to set up this?

5. tax code?

6. any other issues I need to pay attention to for dealing payroll for casual workers?

Sorry for having so many questions. As this is our first time to use casual workers so want to make sure everything is done properly.

Many thanks in advance


  • Hello,

    Thanks for contacting us using Sage City apologies for the delay in getting back to you.

    Since you messaged have you managed to get this all set up ok? If you do have issues still then drop us an email at [email protected] and we can get back to you as soon as possible.

    Kind Regards


  • in reply to Richard Lognonne

    Hi there,

    I know this topic is old but we have the same problem. could you please provide us a documented procedure for this type of employees and how to input their working hours weekly?


  • in reply to ali samad

    Hey Ali, 

    Thanks for using Sage City. 

    We don't currently have a documented procedure for setting up zero hours contract employees, however I have noted your feedback.

    With Sage Payroll, a zero-hours contract will prevent you from defining a working pattern for your employee. Instead, complete the pay run as normal to the Pay screen, and add a new payment. Set the payment category as Hourly Payments and the payment type as Basic Hours. This is how you will handle any zero hours contract employee payments. 

    If you have any other queries around setting up your employees or require further support from our chat service, you can find help here: Help Centre.

    If this has answered your question, please click More > Verify Answer.



    Sage UKI

  • in reply to Dane


    An is there any easy way to input their working hours on a weekly basis but pay the on the monthly basis?

    Do we need to calculate their holiday pay or it will be calculated based on the inputted hours?


  • in reply to ali samad

    Absolutely, you can set up the pay calendar so that you pay the employee monthly, you can then log into Payroll on a weekly basis and edit the existing monthly pay run. Simply adjust the amount of hours they have worked that week then this will save automatically. You can edit the pay run as many times as you like before you commit to your finalised monthly submission. 

    Holiday pay won't be tracked automatically, I'd recommend reading our step by step guide to processing holiday pay that you can find here: Holiday Pay

    Hope this helps! 



    Sage UKI