Company Pay

Description

Use this page to modify company pay element information.

Usage

This screen allows the entry and maintenance of pay elements at company level. Pay elements must be set up on this page before they can be used elsewhere in the system. Pay elements define individual items of payment or deduction, which ultimately make up the pay due to an employee.

Creating a Pay Element

Pressing the New button will clear the fields on the screen, ready for entry of details of the Pay Element. The fields available for entry are:

Pay Element: The identifier for the pay element within the system (this must be unique).
Pay Element Name: A more descriptive version of the above field for scenarios such as on screen or on payslip display.
Nominal Code: Indicates the nominal code that the element has on your accounts system. This field will be output on any account journals exported from the system. More complicated Nominal set up can be accomplished through the Company → Account screen
Pay Element Type: Identifies the pay element as a payment type or a deduction type or an element used for AEOs.
Offset Against Element: Allows specification of a different Pay Element to offset payments against. The pay element specified here will be reduced by the amount being paid to this element. Only payment type pay elements can be offset.
Back Pay Element: Enables you to select a pay element to use for back pay. The back pay element must have the same configuration for NI'able and Taxable as the current pay element.
Non Pro-Rata Payment Method: Set this to determine how a pay element is paid when an employee works a partial period. This is either full payment or no payment.
Rate Type: This indicates that the element is related to the worker's Daily or Hourly rate or if the element has a flat rate (only applies to payment elements). This will be populated as such on import of adjustments and creation of timesheets. If flat rate is selected, the Factor field will change to Rate Amount.
Factor: Only applicable when Rate Type is set to daily or hourly. The Factor is multiplied against the worker's rate
Rate Amount: Only applicable when Rate Type is set to flat. This is the amount that will be used for this element.
Gender Pay Gap: This sets the element to be used in the calculation of an employee's ordinary pay or bonus pay for the Gender Pay Gap records. This element will only show for payments and deductions.
Gender Pay Gap Hours: This sets the element to be used in the calculation of an employee's hours for the Gender Pay Gap records. This element will only show for payments.
Gender Pay Gap Bonus Period: Only applicable to elements used for the bonus calculation. Specifies the period a bonus is applicable to, e.g. yearly, monthly. This will only show for payments.
Net to Gross: Indicates that the pay element will calculate a Grossed Up value. So for example if a £500 adjustment is put through against the pay element this would increase the worker's net pay by £500. Company options for Net to Gross functionality can be found here.
National Minimum Wage Type: Used in calculations for national minimum wage timesheet report. 'Values and Units' includes values and hours for that elements, 'Value Only' only includes value.
NI’able: Indicates if the pay element is to be considered when calculating national insurance contributions.
Show on payslip if zero: Under normal circumstances a Pay Element will not show on a payslip if there is no pay against it in the period specified.
Qualifying Earnings: Indicates that the pay element is included in the employee's auto enrolment assessment .
Taxable: Indicates if the pay element is to be considered during tax calculations.
Salary Sacrifice: Indicates that the pay element can be used for salary sacrifice. the element must be a Taxable and Nicable payment. Once added this will allow the user to set a payment as a reducing balance through the Payments screen
Benefit In Kind: The pay element is used to increase taxable pay without increasing actual Gross or Net Pay. In order to do this the element must be set up as a taxable payment and must be offset against a non taxable payment.
Notional: Indicates that the pay element is not included in calculation of Gross or Net Pay.
No Cleardown: Prevents the pay element's YTD values from being reset at the year end. Allows for rolling balance without having to manually adjust the values after they have been reset to 0 - useful for things such as shares. Any pay elements flagged with this option should remain on the PAY -> YTD Balances page when committing the payroll into the next year. The option is only enabled on pay elements not flagged as NI'able or Taxable.
To be used in Salary Calculation: Indicates that the pay element will be used in the salary calculation.
Class 1A NIC: Indicates whether the element is to be used for settlements.
Percentage: This will only show for payments and deductions. Elements with this ticked will show on the Pay > Payments (Percentage) page or Pay > Deductions (Percentage) page depending on payment type.
Consolidate: The pay element will ignore the default splitting dictated by either 'Split by Rate' or 'Show Pay Element Description on Payslip' available on the Company -> General page.
Protect NMW: This functionality is limited to Timesheet worker pay types - Only applicable to deductions with an NMW Type selected. If this option is selected and would push a worker below the National Minimum Wage, removes the deduction completely from the worker's payslip.

Once the details of the Pay Element have been entered, pressing save will commit the changes to the database, and an entry for the Pay Element will appear in the grid at the bottom of the screen. The Pay Element is now ready for use in the system.

Amending an Existing Pay Element

In order to amend an existing pay element, first select the appropriate pay element by clicking on the entry on the grid at the bottom of the screen. This will bring the details of the pay element into the fields ready for editing.

Changes to the details of the pay element can then be made which are committed to the database on pressing save. Fields that have been updated will be reflected in the details on the grid after the save has been successful.

Add Pay Element to Pension Schemes

Once the pay element has been saved you will be able to add it as a pensionable element to any pension scheme by clicking on the Pension Scheme button. This is done by selecting the pension scheme (multiple schemes can be selected at a time) and moving it between the columns with the arrows as appropriate. Press Accept to save the changes or cancel to discard.

Add Pay Elements to a Percentage Payment/Deduction Element

Once a percentage payment/deduction pay element has been saved you can select elements that will be used to calculate the percentage payment/deduction amount. This is done by clicking on the Elements button. A list of pay elements will show and can be added using the arrows as required. Press Accept to save the changes or cancel to discard.

Add Labels to a Pay Element

Once the pay element has been saved you will be able to add labels to it by clicking on the Labels button. This is done by selecting the label (multiple labels can be selected at a time) and moving it between the columns with the arrows as appropriate. Press Accept to save the changes or cancel to discard. The Labels button is only visible on companies that have PeopleManager selected as the HR Platform in the External Import section of the Company -> General page. Assigning labels to pay elements allows for their splitting in People Manager.

Bank Details

Bank details can only be set against "Deduction" type payment elements or salary sacrifice payment elements. These account details can then be used to pay deductions via BACS.

"Account Number" must be 8 digits

"Sort Code" must be a valid six digit bank sort code.

"Bank Name" and "Branch Name" are derived automatically from the given sort code.

"BACS Reference:" The reference for payments by BACS

"Roll Number" is used to store the information about the building society roll number. This is an optional field.

Changing Display Order

The order that pay elements appear on reports can be viewed and changed by clicking the Display Order tab.

To change the display order, drag the pay element you wish to change to its new position. This may be repeated for any number of other pay elements before clicking save to commit the changes to the database.

Archive a Pay Element

When a pay element is selected you will have the option to archive it. Archived pay elements will no longer show in any drop downs on other pages and you will not be able to import against them. They will however still show on any existing records.

To unarchive a pay element you will need to click the button to show archived elements. You will now be able to select the archived element and a button will appear to unarchive it.

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