Getting started with Sage One Payroll

With Sage One Payroll, you can quickly calculate how much to pay your employees and submit your information to HMRC. To help you get off to the best start, we’ve put together this guide.

Help with processing payroll

If you need help at any point, simply click help from the menu bar. This takes you to our help centre where you can find everything you need, from getting started to day-to-day. You can also get help on a specific option when you see the help button.

Before you start

If you’re a new employer, when you start employing staff, you need to register with HMRC.

You also need to set up an account with HMRC’s online services, so you can make online submissions through the Government Gateway. You can normally do this at the same time as you register as an employer.

Keep a record of your User ID and password, as you need to enter these in Sage One Payroll to make a submission.

Once you’ve set up your account, log in to HMRC online services, select PAYE for Employers on the online tax registration form, then follow the on screen steps. HMRC then send you your PAYE and Accounts Office references and an activation code. This can take up to seven days and you must activate it within 28 days. If you don’t, you’ll need to register again. Once you’ve activated your account, you can submit online

Set up Sage One Payroll

When you first sign in, a welcome message appears with options to set up your company and payroll information. You should choose one of the following options depending on whether you’re entering existing payroll data, or starting a new company.

Migrate payroll data

If you’re transferring from a manual system, or another payroll system, part-way through a current tax year, use the Migrate payroll data option. To ensure your calculations are correct, you can use this option to:

  • Confirm whether you pay HMRC monthly or quarterly.
  • Specify when and how often you pay your employees.
  • Enter your employees’ year to date values.
  • Enter any statutory payment recovery and compensation values. For example, any employment allowance you’ve claimed so far.

New Company

If you’re transferring at the beginning of a tax year, or if you’re a new employer and haven’t yet paid your employees, use the New Company option. A new blank payroll company is created ready for you to enter your details.

You use this option to:

Enter your payroll settings

Before you start to process pay you should enter your company payroll details.

  • 1. Settings tab > Payroll Settings.
  • 2. Enter the following information:
PAYE reference Your employer PAYE reference is issued by HMRC when you register for PAYE for Employers.
Accounts Office reference This is your 13 character reference number, supplied by HMRC and is found on your P30BC Payslip booklet or P30B Paying electronically.
HMRC reporting frequency Choose whether you pay HMRC monthly or quarterly, as appropriate. If you’re unsure, please contact HMRC’s payment enquiry helpline
HMRC payment method Choose whether you pay HMRC by cheque or bank transfer.

Watch how

  • 3. You can check or further customise your payroll settings using the following options:
Payslip Settings Choose a payslip template to use when you print or emails payslips.
Calendar Settings If you chose to setup a blank company and haven’t already done so enter details of when you want to pay your employees and set up your default pay days. You can also view the pay calendar.
Payment & Deduction Settings You can use this option to create your payments and deductions. For example, basic pay, overtime, pensions.
Migrate Payroll Data – Employer Values When you migrate data from an existing payroll system part way through the tax year, you can enter the values for any statutory payment recovery and compensation that you’ve received so far. For example, employment allowance values.
Finance Integration Settings If you also subscribe to Sage One Cashbook or Accounts, to save you time when you pay your employees, their salary information automatically posts to accounts.

Note: If you use Sage One Accounting, you need to set up your Payroll Integration Settings instead.

Once you’ve entered your company and employee details and payroll settings, you’re ready to process your first pay run.

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