To create or edit an employee record

To help you manage your employees, you can create and maintain records for them. You can enter their personal details, tax code, NI category, as well as any P45 or P46 information.

You can have a maximum of 5, 10 or 15 employees, depending on your Sage One Payroll service.

If your new employee doesn’t have a P45 from their previous employer, you should enter P46 information. However, if the employee then receives a P45, you should edit the employee’s starting details and enter the relevant P45 information.

To create a new employee

Watch how

  • 1. Employees tab > Create Employee.
  • 2. Enter the employee’s details:
Personal Details The employee’s forename, surname, date of birth and gender, including their National Insurance (NI) number. If you can’t find the employee’s NI number:

  • Send Form P46 to the Tax office. HMRC automatically trace the employees NI number and sends you a CA6856 form to confirm the number.
Contact Details The employee’s postal address, telephone number and email address.

Tip: If you want to email your employee’s payslips, you must enter the employee’s email address and a password that the employee should use to open their emailed payslips.
  • 3. Enter the following Employment Details:
Pay Cycle Select how often you’re going to pay the employee. This can be weekly, two weekly, four weekly or monthly.
Contracted Weekly Hours The number of hours the employee is contracted to work per week for you. This option only appears if you’re operating RTI.
RTI Pay ID This is used to capture a unique employee reference for your company which is included in your submissions to HMRC:

  • If you’re transferring from another payroll system part way through a tax year that uses the RTI Pay ID, you must enter this on each employee in Sage One.
  • If your previous payroll system was HMRC Basic Tools, you can find the RTI Pay ID under Employee Details > Employment Details > Payroll ID.
  • If your employee is a new starter who has moved from another business, or you haven’t previously used a payroll system to submit your employees under RTI, Sage One will automatically assign them an RTI Pay ID.
Works Number The unique code that identifies the employee in the company.
Start Date The date the employee started working for you.
Finish Date The date the employee finished employment.

  • If you specify a finish date, the employee is marked as a leaver.
  • In the case of a closing business, you should mark every employee as a leaver before you complete the final pay run.
Payment Method The method you pay your employee. If you select Bank Transfer, enter the account details.
Exclude from Auto Enrolment Automatic enrolment legislation doesn’t apply to non-UK workers.

  • If you don’t need to assess your worker under automatic enrolment conditions, select this check box.
  • For example, this can happen if they’re seconded from a non-UK employer, their base remains outside the UK, their contract remains with the non-UK employer and they’ll return to work outside the UK for this employer after the placement.
  • 4. If the employee is a director of the company, select Is a Director check box.

If not, proceed to step 6.

  • 5. Enter the following Directorship details:
Directorship Started Use the drop-down to specify whether the employee became a director in a previous tax year, or during the current tax year.
If the directorship started in the current tax year, you must also specify the start date.
Preferred Calc Method You can calculate Directors’ NI in two different ways.

Each method gives the same NI liability amount by the end of the tax year, although NI payments during the year can be quite different under the two methods:

  • Calculate NI Cumulatively

    This is the default calculation method. It is most common for directors who are paid irregularly by the company, and uses annual earnings thresholds to determine the director’s NI liability in a particular pay run. The director is not liable for NI until their total earnings during the tax year exceed the Annual Primary Threshold.
  • Calculate NI Per Pay Run

    This calculation method, sometimes called the alternative method, determines the director’s NI liability on a weekly/monthly basis in each pay run using weekly or monthly earnings thresholds.

    It is most common for directors who are paid regularly by the company. As this method produces an average NI liability in each pay run without reference to other pay runs. A balancing calculation is carried out at an appropriate time using year to date earnings thresholds. This makes any necessary correction to the director’s NI liability.
  • 6. Enter the Previous Tax Details as appropriate:
Starting Basis Specify the available details about the employee’s previous tax and NI in the current tax year:

  • This is an existing employee

    Select this option if you are setting up an employee who already works for you and is paid in the normal way. For example, if you are setting up Sage One for the first time, you need to set up your existing employees.
  • Starting Basis: Employee Declaration: P45

    Select this option if the new employee has presented a P45 Part 3 issued by their previous employer.

    These determine which additional options appear. If you’re unsure which option to use, for help working out the tax code you can use the HMRC online tool. Then choose one of the Circumstances options:

    * Circumstance A

    Select this declaration if this is the employee’s first job since the last 6 April, and they have not been receiving taxable Jobseeker’s Allowance, Employment and Support Allowance, taxable Incapacity Benefit, or a state or occupational pension.

    * Circumstance B

    Select this declaration if this is the new employee’s only job, but since last 6 April they have had another job, or has received taxable Jobseeker’s Allowance, Employment and Support Allowance, or taxable Incapacity Benefit. This option also declares that the employee does not receive a state or occupational pension.

    * Circumstance C

    Select this declaration if the new employee also currently has another job, or receives a state or occupational pension. If the new employee does not have a P45 from their previous employer, use the Employee Declaration: P46 starting basis instead.
  • Starting Basis: Employee Declaration: P46

    These determine which additional options appear. If you’re unsure which option to use, for help working out the tax code you can use the HMRC online tool. Then choose one of the Circumstances options:

    * Circumstance A

    Select this declaration if this is the employee’s first job since the last 6 April, and they have not been receiving taxable Jobseeker’s Allowance, Employment and Support Allowance, taxable Incapacity Benefit, or a state or occupational pension.

    This automatically applies tax code 1060L with the basic tax-free personal allowance.

    * Circumstance B

    Select this declaration if this is the new employee’s only job, but since last 6 April they have had another job, or has received taxable Jobseeker’s Allowance, Employment and Support Allowance, or taxable Incapacity Benefit. This option also declares that the employee does not receive a state or occupational pension.

    This automatically applies tax code 1060L on a Week1 / Month 1 basis. This means that cumulative values aren’t to be taken into account and tax calculates using the gross pay for the current period only. The tax allowance is for the first week or month of the tax year, regardless of the actual tax period.

    * Circumstance C

    Select this declaration if the new employee also currently has another job, or receives a state or occupational pension.

    This automatically applies tax code BR. This means there’s no free pay allowance and gross pay is taxed at 20%.
  • Unknown

    Choose this circumstance option when you don’t have enough information on the starter to complete a P46.

    This automatically applies tax code 0T on a Week 1/Month 1 basis with no free pay allowance. Tax is calculated as normal, at 20%, 40% or 45% depending on the employee’s earnings. This is intended to encourage them to contact HMRC on the Income Tax helpline – 0300 200 3300, so the correct tax code can be issued.
  • 7. Depending on the Start Basis you chose, enter the following details:
NI Category The employee’s National Insurance category. You must specify this for any new employees.

The letter is usually A, B, C or J.

Tip: For employees under 16, you would normally assign letter A. Sage One recognises that the employee is not yet due to pay NI, so doesn’t deduct this from their pay until they turn 16.
Tax Code The tax code determines the tax allowances the employee receives. You must specify this if the employee already works for you or has presented a P45 Part 3.

The tax code should be specified on the P45 Part 3.If the new employee does not present a P45, they must complete a P46, which will indicate which tax code they should be on.

If the employee’s tax code subsequently needs to be changed to take into account the employee’s correct total pay to date and total tax to date values for the tax year, HMRC will inform you.
Leaving Date The date on which the employee finished their previous employment.
Week 1/Month 1 If the employee’s tax is calculated on a week 1 / month 1, or non-cumulative basis, select this check box. When you do this, the tax is based on the employee’s pay in the current period, instead of cumulative for the full year.
Final Pay Period The week or month of the employee’s final pay run in their previous employment.
Total Pay to date The total amount of pay the employee has received in the tax year to date, if any. You can get this from the employee’s P45 Part 3.

If the employee is set to Week 1/Month 1 set this value to zero.
Total Tax to date The total amount of tax paid by the employee in the tax year to date, as specified on their P45.

If the employee is set to Week 1/Month 1 set this value to zero.

If the employee is not set to Week 1/Month 1, the payroll system automatically calculates the employee’s total tax liability for the tax year to date based on:

  • The employee’s tax code.
  • The final pay period.
  • Total pay to date.

    The value it calculates normally should agree with the P45 Part 3.

    If the values do not agree, the Calculated P11 Tax appears. This specifies the automatically calculated value.

    The calculated value is added to the P11 and is used for subsequent tax calculations, rather than the value on the P45.
Student loan If student loan repayments were taken by their previous employer, select this check box.
Employer’s PAYE Ref This reference number identifies the employee’s previous employer if any. It appears on their P45.

Mandatory information is marked with an asterisk *.

  • 8. Click Save.

The new employee appears in your list of employees.

  • 9. Check the Status column.

If any further action is needed to make the employee active, this shows here. If an NVR response message appears, this may be due to an issue with the employee’s NI number.

  • 10. To specify the days an employee works on, click the relevant employee > Working Pattern tab.
  • 11. Edit > choose Monday – Friday or one of the custom working patterns.
  • 12. Click Save.

The employee is now active in the payroll. When you process their first pay, their details are submitted automatically to HMRC on the full payment submission (FPS).

You can’t add an employee to a completed pay run. If you need to do this, our support team may be able to suggest a workaround for you.

To edit an employee’s details

Watch how

  • 1. Employees tab > click the relevant employee > Edit.
  • 2. Change the information in the Employee Details tab as required > Save.

You can also change the working pattern type on the Working Pattern tab. By default, this is set to Monday – Friday.

You can’t amend the information shown on the Workplace Pensions tab. This automatically updates once you complete each step for automatic enrolment.

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