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June Chapman

Business Cloud Payroll - pay elements

Posted By

I need to put a pay element through for an employee with a net to gross calculation.  Sage are unable to help with this, unlike Sage 50 payroll, there is no dedicated pay element for this.  I have found one I can use that gives me the gross figure and increases the net amount by exactly the bonus amount (Business Expense).  Although this keeps the employees salary and deductions correct, whilst giving a net bonus, I am wondering what the implications are for the employee using this element.  Without processing the payroll run I am unable to see how this affects the employer.  Has anyone come across this at all?  

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    Hi June, 

    When you use the Business Expense pay element it's important to note that this pay element won't be subject to PAYE or NI. If you are happy with this, you can still process the Pay Run as far as the "Confirm" tab where you can then open the detailed report to view a breakdown of the pay and how it will impact the employee and employer, without having to "Complete the Pay Run". If you then need to make any further changes you can use the Back option to make any adjustments. 

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

    Regards,

    Dane
    Sage UKI

  • 0 in reply to Dane

    HI Dane,

    Thank you for your reply.  Although this give me the correct outcome for the employee - not tax or NI due, in the past I have paid bonuses for this business whereby the employer bears the cost of these and the employee just receives their net bonus payment.  So this option isn't really correct.  I am reluctant to contact HMRC for assistance, which is a feat in itself these days, nor do I want to go back to the employer and say my payroll programme can no longer handle this type of payment (after doing so for the past five years).  

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  • 0 in reply to Dane

    HI Dane,

    Thank you for your reply.  Although this give me the correct outcome for the employee - not tax or NI due, in the past I have paid bonuses for this business whereby the employer bears the cost of these and the employee just receives their net bonus payment.  So this option isn't really correct.  I am reluctant to contact HMRC for assistance, which is a feat in itself these days, nor do I want to go back to the employer and say my payroll programme can no longer handle this type of payment (after doing so for the past five years).  

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