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Other Payments

Use

Other Payment refers to any extra payments made to employees in addition to Basic pay. For example, holiday payments, commission, bonus, overtime, SSP payments etc.

In this screen you can enter the other payments by selecting the payments from the pre-sets items, or create your own payments as appropriate. They can be entered or changed at any time and can be entered as an hours and rate figure.

Please note the following points:

Whenever you enter holiday pay, you should be aware that you might need to adjust the Basic Pay so that Basic pay is not also paid on the days that Holiday pay is being paid. For example, A weekly paid employee takes a 3-day holiday. These 3 days are entered as paid holiday. In most instances, you will also need to adjust this employee's Basic pay on the Payrun page so that it is only paid for the 2 non-holiday days. The employee will then receive 2 days basic pay and 3 days holiday.

Do not enter SSP, SMP, SAP, SPP payments and advanced holiday pay as Other Payments. This is because it may be possible to claim back some or all of the SMP, SPP, SAP paid to employees. Our service can automatically claim back these amounts for you but only if the payments are entered in the appropriate SMP, SPP, SAP, SSP sections in this screen. If you enter such payments as Other Payments this recovery will not occur.

Advanced Holiday pay should also not be entered as an Other Payment because NICs are calculated differently on Advanced Holiday pay. Enter Advance Holiday selecting Advance Holiday option in the Annual Holiday Payment section P1. If you enter Advanced Holiday payments as Other Payments the NIC calculation will not occur as appropriate.

Path

Payrun > Payment Frequency (Weekly/Monthly/2 Weekly/4 Weekly/Quarterly/Annual/Bi-annual) > Other Payments

Fields Available

Fields marked with an asterisk (*) are mandatory.

Net to Gross Pay

To do Net to Gross calculations correctly, you must first enter all gross payment items if any and then enter the net to gross amount. If you do not enter the gross payments first, the calculation will be wrong. If you only have a net to gross amount to pay, just enter that.

P1. Normal Holiday Payment

If you pay your employees on their normal payday(s) when they are on holiday then it is called Normal Holiday Payment. These are holidays that fall within the current pay period. For more details click on the HMRC link Click here

Holiday when no entitlement
If an employee wishes to take a holiday but has no entitlement, accrued or brought forward, it is up to the company to decide to pay or not pay such holiday. If the company decides to pay, the holiday should be entered in the Holiday Payment section and the holiday balance figure will become a minus amount. If the company decides not to pay, the unpaid holiday should recorded as unpaid leave in the Absence Admin & Payment section.

• From Date: Enter here the date of first day of the holiday. You can use the calendar button to enter the date.
• To Date: Enter here the date of last day of the holiday. You can use the calendar button to enter the date.
• • Entering less than 1 days normal holiday
    If you need to enter less than 1 days holiday the From Date and To Date should be set as the same day and the fraction of the No of days taken can be entered as a decimal. For example, an employee takes half a day's holiday on 06/05/2024. This should be entered as running from date 06/05/2024 to date 06/05/2024 with 0.5 No of days.
  • Entering more than 1 days normal holiday
    If you need to enter more than 1 days holiday the From Date and To Date should be set as appropriate to cover the period taken. Fractions of days can also be entered. For example, an employee takes 2.5 days holiday starting on 06/05/2024. This should be entered as running from date 06/05/2024 to date 08/05/2024 with 2.5 No. of days.

• Day or No.: Enter here the number of working days the holiday covers. Fractions of days may be entered. For example, 0.5, 0.25, 1.5 etc. This field will be enabled only if you select Normal Holiday as the holiday payment type.
• Holiday Balance (In Hours): The Holiday Balance figure equals the number of unused holiday days left in the employee's entitlement. One holiday day is equal to one normal working day. Note, all the other fields (i.e. From Date, To Date, No. of Days, etc) will be empty. Any previously entered Holiday Payments will not be displayed after the pay has been run and updated for that pay period. If you wish to view previous holiday payments, you can do so in the Reports-Holidays section where the data is displayed as statistical records.
  
  The Holiday Balance figure is the employee's holiday accrued figure. If an employee has not worked long enough to accrue any holiday the figure will be zero. The accrual is calculated on a daily/monthly basis and will show up in the Holiday Balance field when half a day is reached. The holiday balance figure is calculated at the last YTD update, i.e. if the employees YTD figures were last updated in month 5, then the accrued holiday calculated and displayed will be correct up to month 5.
  
  Any holiday days carried forward from the previous holiday year will be added to the current year balance and displayed in the Holiday Balance field. It is up to the Company to decide in the Holiday Scheme setup, (Chart of Setup section) whether or not it will allow unused holiday to carry forward to the next holiday year.
• Hour or No.: Enter here the number of hours holiday pay the employee will receive.
• Rate: Enter here the hourly rate for the holiday pay.
• Amount: The amount displayed here is calculated by the package as hours multiplied by rate.
• Action: The various tasks associated with the data in each row will be displayed here. For example Save, Edit, Remove, etc.

P2. Advanced Holiday Payment

If you pay an employee their holiday pay in advance, so that they receive two or more weeks' pay in one week, followed by one or more weeks with no payment from you then its called advance holiday payment. These are any holidays that are in advance of the current pay period i.e. the holiday falls outside the current pay period in a future pay period. For more details click on the HMRC link Click here

• From Date: Enter here the date of first day of the holiday. You can use the calendar button to enter the date.
• To Date: Enter here the date of last day of the 0holiday. You can use the calendar button to enter the date.
• No. of Periods: Enter the number of complete pay periods you wish to have advance holidays.
• • Entering full period only
    You can only enter full pay periods as Advanced, i.e. full weeks or full months. It is not possible to advance fractions of pay periods.
    If the advanced holiday does not cover a full period, the fraction should be processed as normal holiday during the pay period to which it applies. For example, if a monthly paid employee takes 6 weeks holiday. This is 1.5 periods. This should be entered as 1 months advanced holiday, then the remaining half period of 2 weeks should be entered and processed as 2 weeks normal holiday on his return in the payrun to which it applies.
  • Entering Advanced Holiday over 2 tax years
    Advanced holidays cannot span 2 tax years. You should enter and process the holiday up until the end of one tax year, then process the year end, then when you are in the new tax year enter and process the remaining holiday from the start of the new tax year.

• Holiday Balance: The Holiday Balance figure equals the number of unused holiday days left in the employee's entitlement. One holiday day is equal to one normal working day. Note, all the other fields (i.e. From Date, To Date, No. of Days, etc) will be empty. Any previously entered Holiday Payments will not be displayed after the pay has been run and updated for that pay period. If you wish to view previous holiday payments, you can do so in the Reports-Holidays section where the data is displayed as statistical records.
  
  The Holiday Balance figure is the employee's holiday accrued figure. If an employee has not worked long enough to accrue any holiday the figure will be zero. The accrual is calculated on a daily/monthly basis and will show up in the Holiday Balance field when half a day is reached. The holiday balance figure is calculated at the last YTD update, i.e. if the employees YTD figures were last updated in month 5, then the accrued holiday calculated and displayed will be correct up to month 5.
  
  Any holiday days carried forward from the previous holiday year will be added to the current year balance and displayed in the Holiday Balance field. It is up to the Company to decide in the Holiday Scheme setup, (Chart of Setup section) whether or not it will allow unused holiday to carry forward to the next holiday year.
• Hour or No.: Enter here the number of hours holiday pay the employee will receive.
• Rate: Enter here the hourly rate for the holiday pay.
• Amount: The amount displayed here is calculated by the package as hours multiplied by rate.
• Action: The various tasks associated with the data in each row will be displayed here. For example Save, Edit, Delete, etc.

P3. Other Pay Items

In this section you can enter details of pay items in addition to the Basic pay and Overtime which are entered directly onto the payrun screen. Examples of common Other Pay Items includes Commission, Allowances, Bonus, Tips etc. Most common pay items have been pre-set for you by this service. To enter one simply select it from the drop down list.

These pre-set pay items have been setup in compliance with statutory requirements specifying whether they are subject to PAYE tax, NIC and/or Pension contributions. All the presets have been set as non-recurring i.e. when selected the pay item will only apply to the subsequent payrun. After the YTD has been updated for this payrun the pay item will be cleared and will not automatically reoccur.

If none of the pre-set items are suitable you can create your own by going to the Basic & Other Payment Setup in the Chart of Setup section.

• Item Name: From the drop down list select the other payment item. Our service has provided you with some preset items. If none of the listed items meets your requirement, you can create your own payment item by going to the Basic & Other Payment Setup in the Chart of Setup section.
• Hour or No.: Enter here the number of hours for which the employee will receive other payment.
• Rate: Enter here the hourly rate for the other payment.
• Amount: The amount displayed here is calculated by the package as hours multiplied by rate.
• Occurrence: Occurrence refers to the frequency setting for the item i.e. how often the payment or deduction item will be applied to the employee's wages. If the occurrence is set as Recurring, the payment or deduction item will automatically be included in the employee's wages each and every time the employee's pay is calculated. If the occurrence is set as 'Non-Recurring', the payment or deduction item will not apply regularly to the employee's wages. The item will only apply on a one off basis in the next pay calculation you run for the employee and after that it will not automatically reappear. Please note that all the pre-set items have been set as non-recurring i.e. when selected the pay item will only apply to the subsequent payrun.
• Action: The various tasks associated with the data in each row will be displayed here. For example Save, Edit, Delete, etc.

P4. SSP Payment & Record

To enter, record and calculate the Statutory Sick Payment (SSP) details of the employee, please click on the link provided on the screen.

P5. SMP/SAP/SPP/ShPP /SPBP Payment & Record

To enter, record and calculate the SMP/SAP/SPP/ShPP/SPBP Payment details of the employee, please click on the link provided on the screen.

P6. Absence Payment & Record

If an employee/Director takes any paid leave from work for any reason, and the absence is not to be taken as part of his/her annual paid holiday leave entitlement, the details of the absence and payment should be entered in this section. Examples include Paid Public Holiday, Paid Educational Leave, Paid Compensatory Leave etc.

Absence Records

After you have run the payroll and updated the YTD, any entries in this section will be cleared. If you wish to view any previous Absence Payment records you can do so in the Reports-Absence Summary section where the past records can be displayed as statistical reports.

Note regarding the recording of absences:

Employee's absences, both paid and unpaid, are recorded in the payrun section. Payrun basically records the total time the employee works for the company. If during the working day an employee fails to turn up for work, this absence time ought to be recorded. If the absence time is paid it will be recorded i.e., as holiday absence, paid study leave, paid time off for trade union meetings. In a similar manner time off for SSP, SMP, SAP, SPP etc is also recorded. It is also possible to record any absences that are not paid i.e., perhaps for lateness, unauthorised leave, etc.

If all absences, paid and unpaid, are recorded, you can easily create an audit trail of an employee's working hours in a year. An employee's pay and absence record could be further reconciled for auditing purpose to double check to see whether the employee was correctly paid, and not over or under paid. It is possible, by tracing through an audit of the absence records, to find out whether or not an employee's unauthorised absences were paid.

• Absence Payment Type: The most common Absence payment types are pre-set for you by this service. To enter one simply select it from the drop down list. If none of the pre-set items are suitable you can create your own by going to the Absence Payment & Record Setup in the Chart of Setup section.

For Statistical Purpose

The data you enter here will purely be saved for record keeping / reporting purposes. The dates you enter here will not have any effect on the payroll calculation.

• From Date: Enter here the date on which the absence started. You can use the calendar button to enter the date.
• To Date: Enter here the date on which the absence ended. You can use the calendar button to enter the date.
• Day or No.: Enter here the number of working days the absence covered to the nearest half a day (0.5)

Payment Amount

The data you enter here will be used for payroll calculation. So please be careful and enter accurate data.

• Hour or No.: Enter here the number of working hours the employee was absent for.
• Rate: Enter here the hourly rate of pay for the absence.
• Amount: The amount displayed here is calculated by the package as hours multiplied by rate.
• Action: The various tasks associated with the data in each row will be displayed here. For example Save, Edit, Delete, etc.

P7. Benefits In Kind Via Payroll Setup

In this section you can enter details of benefits in kind in addition to the Basic pay and Overtime which are entered directly onto the payrun screen.

Most common pay items have been pre-set for you by this service. To enter one simply select it from the drop down list.

These pre-set pay items have been setup in compliance with statutory requirements specifying whether they are subject to PAYE tax, NIC and/or Pension contributions. All the pre-sets have been set as non-recurring i.e. when selected the pay item will only apply to the subsequent payrun. After the YTD has been updated for this payrun the pay item will be cleared and will not automatically reoccur.

If none of the pre-set items are suitable you can create your own by going to the Benefits In Kind Via Payroll Setup in the Chart of Setup section.

• Item Name: From the drop down list select the other payment item. Our service has provided you with some preset items. If none of the listed items meets your requirement, you can create your own payment item by going to the Benefits In Kind Via Payroll Setup in the Chart of Setup section.
• Hour or No.: Enter here the number of hours for which the employee will receive other payment.
• Rate: Enter here the hourly rate for the other payment.
• Amount: The amount displayed here is calculated by the package as hours multiplied by rate.
• Occurrence: Occurrence refers to the frequency setting for the item i.e. how often the payment or deduction item will be applied to the employee's wages. If the occurrence is set as Recurring, the payment or deduction item will automatically be included in the employee's wages each and every time the employee's pay is calculated. If the occurrence is set as 'Non-Recurring', the payment or deduction item will not apply regularly to the employee's wages. The item will only apply on a one off basis in the next pay calculation you run for the employee and after that it will not automatically reappear.

Please note that all the pre-set items have been set as non-recurring i.e. when selected the pay item will only apply to the subsequent payrun.

• Action: The various tasks associated with the data in each row will be displayed here. For example Save, Edit, Delete, etc.

P8. Employer real-time Class 1A NICs due on Termination Awards or Sporting Testimonials

On 6th April 2020, new regulations came into effect requiring employers and testimonial committees to report and pay Class 1A NICs on termination awards and sporting testimonials in real time.

Section 1 of the National Insurance contributions (Termination Awards and Sporting Testimonials) Act 2019 has introduced an employer Class 1A National Insurance contributions charge on termination awards above a £30,000 threshold that have not already been subjected to Class 1 National Insurance contribution deductions.

A termination award is a payment made to an employee as compensation for the loss of their employment. (It is recommended that guidance is sought as to what constitutes a termination award should you be unsure). This Class 1A NIC is to be calculated, reported and paid as part of the existing PAYE cycle, that is in real time.

Associated Tasks

• Save: To save the newly added details, click on this button. The new details will appear on the screen.
• Edit: To modify any of the details, click on this button corresponding to that row. The row becomes editable.
• Remove: To delete any of the details, click on this button corresponding to that row. A confirmation message appears. Click on OK to continue.
• Update: To save the modified details, click on this button. The new details will appear on the screen. This button appears only when you click on the Edit button to modify any details.
• Cancel: To cancel the Edit action, click on this button. This button appears only when you click on the Edit button to modify any details. 
• Back: If you have finished viewing, creating or modifying the details and wish to leave this screen, click on this button. You will be taken back to the Payrun screen.

Related Topics

Deduction & Pension Admin