Maintaining factored payments

Enter a description for the payment.

Choose the payment you want to base your factored payment on.

Either set a default number of hours or leave it as zero.

Enter a default multiplier or leave it as zero.

From the drop-down list, choose how you want the payment to calculat - either as an amount multiplied by the base payment rate or as a percentage of base payment rate.

For example, 1.5 times or 10 percent of the base payment rate.

If the payment isn't subject to tax, clear this check box.

The payment is added to the employee's pay after tax has been deducted.

If the payment isn't subject national insurance (NI) contributions, clear this check box.

The payment is added to the employee's pay after NI has been deducted.

If you don't want to take the main pension contribution from this payment, clear this check box. The payment is added to the employee's pay after the pension contribution has been deducted.

If you don't want to take additional voluntary pensions contributions (AVC) from this payment, clear this check box.

The payment is added to the employee's pay after the AVC has been deducted.

If you don't want this payment to form part of qualifying earnings for automatic enrolment, clear this check box. Qualifying earnings are used to determine employee eligibility as part of the pension calculation under automatic enrolment, and are defined as:

• Salary
• Wages
• Commission
• Bonuses
• Overtime
• All statutory payments. Sage 50 Payroll automatically treats statutory payments as qualifying earnings.

You need to determine if a payment you're making is one of the components of pay that make up qualifying earnings. You may also include additional types of payment to the employee to be considered as qualifying earnings. Any alternative payment types over and above those listed here can be considered as qualifying earnings at your discretion.

If you don't want your payment to be subject to Community Charge Attachment of Earnings Orders, clear this check box.

The payment is added to the employee's pay after the community charge has been deducted.

If you don't want your payment to be subject to Council Tax Attachment of Earnings Orders, clear this check box.

The payment is added to the employee's pay after the council tax has been deducted.

If you don't want your payment to be subject to other Attachment of Earnings Orders, clear this check box.

The payment is added to the employee's pay after any other Attachment of Earnings Orders have been deducted.

If you don't want to include this payment rate when calculating the minimum wage for employees, clear this check box.

If you don't want to include the hours for this payment type when calculating the minimum wage for employees, clear this check box.

If this payment includes an element that is paid at a higher rate, such as overtime or shift work, select this check box. This excludes this part of the payment from the minimum wage calculation.

To find out more abut the minimum wage calculation in your software, see Applying the minimum wage check.

The guidance on the minimum wage can be complex. For more information, GOV.UK website - The National Minimum Wage.

To include this payment when calculating the employee's holiday fund, select this check box.

To include the value of the payment when advancing pay to employees, select this check box.

To exclude this payment type in the 12 or 13 week averages calculation used for holiday pay, clear this check box. Find out more.

To exclude this payment in the time sheet entry process, clear the check box.

Want to know more about Timesheet Entry? See Quick entry of payments and deductions.