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We have set up and displayed here a list of the most commonly used payroll payment items. These items can be used at the payrun stage to enter your employee's payments. You can use the items already listed here, alternatively you can create your own payment items by simply typing their details in the last row of the list and then clicking on the Save button.
i.e., is the item subject to Tax: If yes, the item will be added to the employee's pay before tax is calculated; it is taxable. If no, the item is not subject to tax and will be added to the employee's pay after tax is calculated.
i.e., is the item subject to NICs: If yes, the item will be added to the employee's pay before NICs are calculated; it is subject to NICs. If no, the item is not subject to NICs and will be added to the employee's pay after NICs are calculated.
i.e., is the item subject to Pension contributions: If yes, the item will be added to the employee's pay before pension contributions are taken. If no, the item is not subject to pension contributions and will be added to the employee's pay after Pension contributions are calculated.
Recurring indicates this payment item will apply to the employee's wages each and every pay run i.e. if selected it will automatically be included in every pay calculation you run for this employee, until removed.
Non-recurring indicates this payment item will only be applied on a one-off basis in the next pay run i.e. if selected it will only apply it to the next pay calculation you run. After that, it will not automatically re-apply.
Recurring as Appropriate indicates that this payment item will apply to the employee's wages only during intervals defined elsewhere in the program. For example, SSP will only apply during periods of sickness, tax credits will only apply during the Effective From and Effect To dates.
To save time and help you get started, the conventional settings for the preset payment items have been entered for you. For example, the preset item 'Bonus' has been set up as a non-recurring payment subject to tax, NI and Pension contributions. Presets cannot be edited or deleted, however, you can create your own payment items if you think the presets are not set appropriately for, or do not cover, your own particular needs. Simply enter the details of your payment item in the last row of the table and then click on the Save button.
No, presets cannot be changed. Simply create a new payment item with the settings you require and use it instead of the preset item.
Basic Pay refers to the standard weekly or monthly wage/salary that the majority of employees receive. It may be a regular fixed amount, or it may vary according to the number of hours the employee actually worked during the period. Basic Payment is preset and has been entered as a recurring item that is subject to PAYE tax, NI and Pension contributions.