Bring your Payroll in house with Sage 50 Payroll

In Business Management Software, Sage 50 by Andy Patterson

Reading Time: 4 minutes

Payroll can be a task that gets pushed down your to-do list, so you’ve outsourced it. This is clearly to free up your time to concentrate on your business and other important tasks. However, this comes at an additional cost and in reality, most people still do the leg work related to payroll without really knowing it. Who collates timesheets? Who gathers pension opt-ins/ outs? Who records sickness and statutory leave? All of those have to be collated for Payroll to be processed, so why pay someone to do a few extra steps which you can do yourself? 

It baffles me that people do this but with a little bit of time and some extra knowledge, you can do your payroll efficiently and it’ll save you money and time to spend on other things within the business. 

When is it time to bring your payroll in-house?

This option isn’t hard and fast but for me, I’d do it as soon as possible (if your diary allows). Others would argue that you should wait until the new tax year starts (6th April). But, like everything, there are pros and cons to both however, overall, the process is almost the same. If you do this from a new tax year, you don’t need any year-to-date, cumulative information but you have to keep paying your payroll bureau/ provider. 

If you start now, you simply import the same information except you also bring in your year-to-date information too and get going from your next pay run. No more processing fees and greater control and visibility of your payroll. 

Whatever option, ITAS can help with either. 

Data preparation for Sage 50 Payroll

So, what do we need to get started? Well in Sage 50 Payroll, you can simply import all of your employee details using templated CSV files. It’s easy to fill in, it’s easy to import. You’ll need their personal information, some of which is key to processing payroll correctly and you’ll also need their year-to-date figures for things such as PAYE and National Insurance.

Other things such as pay elements, holiday schemes, and pension schemes can be set up once you have the software up and running with employee data. 

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Processing your first payroll in Sage 50 Payroll

So, we have all the data in the system and we’re ready to do our first pay run. One thing to do before you go full steam ahead is to run a test. There’s nothing worse than leaving the first pay run to the time you are actually expecting to transfer your data to HMRC and of course, pay your employees to find out you’ve got figures you cannot reconcile. So, let’s go through the basics of a pay run in Sage 50 Payroll.

Step 1) Set your pay date –  this is the day you will be paying your employees (commonly the 1st/ 15th or 25th of the month) 

Step 2) Enter your payments – importing timesheets? Is everyone on a flat salary? Do you have a bonus to add? Are there any pension amendments? Whatever the scenario, it’s easily solved in Sage 50 payroll. 

Step 3) Print your reports and email your payslips –  want to keep an eye on PAYE and NI? File your payroll reports to pdf. Want to cut down on paper and waste? Get emails sent to employees via email in a few clicks. 

Step 4) Finalise your figures, and tell HMRC – Once you’re happy with everyone’s pay and what you owe HMRC, finish your payroll and send your data to HMRC – yes, no more year-end submissions that take days to administer and days out of your schedule, just send it every time you pay your employees during the year.

Step 5) Actually pay your employees – Seems strange but payroll seems like an admin task where no real money is involved. Well, with Sage 50 payroll you can pay all your employees directly from your bank. Not sit one by one, but create a bulk file and upload it to the bank. 

And that’s it, all done in 5 simple steps!

One last thing, restore a backup so we are ready to process it for real, with any amendments when the actual pay run is done! 

In Summary 

So, with the brief above, you can see how easy payroll can be and the time and cost savings if you know exactly what is involved in the processing of a payroll run.

You have control over the employee’s pay, you can deal with pay queries straight away rather than relay back and await a response from the payroll outsourcer, and most of all, you have all of your payroll and workplace pension information in one simple, easy and legislatively compliant place. 

If you would like to find out how you can move your Payroll back in-house and would like to speak to one of our consultants, get in touch at 01824 780000. Learn more about Sage 50 Payroll here.