How to Create a Company-Wide Pay Item
To add a new pay item that can be applied across your company, follow the steps outlined below. This process will enable you to set up pay items that will appear on your employees' payslips and be included in your payroll journals.
- Start by clicking on the Company section located in the left-hand side menu.
- Within the Company menu, click on the Pay Items subsection.
- Click the Add Pay Item button to begin creating a new pay item.
- You will be prompted to enter several details about the new pay item:
- Pay Item Name: Enter a name for the pay item. This name will appear on your employees’ payslips.
- Pay Item Account Code: Enter an account code for the pay item if applicable. This is optional but useful for tracking in your payroll journal.
- Benefit in Kind: If the pay item is a benefit in kind, check the corresponding box to indicate this.
- Payment Type: Select the type of payment from the options provided, which include Gross Addition, Gross Deduction, Net Addition, or Net Deduction.
- On the next screen, you will need to specify how this pay item affects employee taxation and benefits:
- Taxable: Indicate whether the pay item is taxable.
- Subject to National Insurance: Specify if the pay item should be subject to National Insurance contributions.
- Pensionable: Determine if the pay item should be considered pensionable.
- After entering all required information and settings, click the Save button to store the pay item.
- Once saved, this pay item can be reused in every payroll process as needed.
By following these steps, you can efficiently manage and customise how pay items are handled within your company, ensuring accurate and compliant payroll processing.
Step 1: Navigate to Pay Items
- Start by clicking on the Company section located in the left-hand side menu.
- Within the Company menu, click on the Pay Items subsection.
Step 2: Add a New Pay Item
- Click the Add Pay Item button to begin creating a new pay item.
- You will be prompted to enter several details about the new pay item:
- Pay Item Name: Enter a name for the pay item. This name will appear on your employees’ payslips.
- Pay Item Account Code: Enter an account code for the pay item if applicable. This is optional but useful for tracking in your payroll journal.
- Benefit in Kind: If the pay item is a benefit in kind, check the corresponding box to indicate this.
- Payment Type: Select the type of payment from the options provided, which include Gross Addition, Gross Deduction, Net Addition, or Net Deduction.
Step 3: Configure Tax and Benefits Options
- On the next screen, you will need to specify how this pay item affects employee taxation and benefits:
- Taxable: Indicate whether the pay item is taxable.
- Subject to National Insurance: Specify if the pay item should be subject to National Insurance contributions.
- Pensionable: Determine if the pay item should be considered pensionable.
Step 4: Save the Pay Item
- After entering all required information and settings, click the Save button to store the pay item.
- Once saved, this pay item can be reused in every payroll process as needed.
By following these steps, you can efficiently manage and customise how pay items are handled within your company, ensuring accurate and compliant payroll processing.
Updated on: 04/06/2024
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