Use this wizard to calculate the payroll deductions for a selected employee or for all the employees attached to a selected payroll template.

You can select a template from the drop-down list. The default template is the one to which the currently selected employee is attached.

The name of the currently selected employee is displayed. To calculate the deductions for a different employee, click the lookup button, search for the employee on the HR Record window, highlight the employee in the list, and click Select on that window to select the employee.

After you click Run to start the calculation, either the selected employee is reviewed or all the employees associated with the selected payroll template are reviewed, to determine the new net pay for each employee. To achieve this, the following main functions are performed:

  1. Check if the employee has left or is suspended.
  2. Analyze each of the payments and deductions in the payroll working file for the selected employee, to potentially revise the value of the transaction. This is particular to payroll codes that are based upon the value of the salary, such as the period salary payment or union deductions that can refer to a table. This can also check the start and/or the leaving date, if the definition of the payroll code dictates, to prorate the transaction value based upon the number of days worked in the current pay period. This is used with other payroll code features that determine the method of the mathematical pro rata calculation.
  3. Accumulate various gross pay accumulators based upon the activity controls of the payroll code definition, primarily is the payroll code pensionable, NI-able, taxable, and so on. This forms the basis for the main statutory calculations.
  4. Calculate the appropriate pension contributions from the HR Record scheme definitions and potentially deduct these values, as determined by the main pension scheme definition, from the taxable and NI-able gross values calculated above.
  5. Use the employee’s tax code and Week/Month 1 flag to reference the main control parameters and tax tables to calculate the PAYE tax value.
  6. Use the employee’s NI characteristics, such as NI category and director status, to calculate the employee’s and employer’s national insurance contributions.
  7. Deduct further deductions from the net pay, such as loans, savings, court orders, attachment of earnings, and student loan repayments.
  8. Determine the new net pay value.
Each of the stages described above are detailed in the calculation message viewer available from the HR Record function for each employee. To view the calculation messages for a selected employee, click HR Record > Payroll Functions > Messages. This describes the exact arithmetic employed in the stages above. You can indicate you want to be able to view calculation messages by selecting the Use Calculation Messaging parameter.
If you choose to calculate the payroll for one employee, when the calculation process completes, the employee payroll Summary window is displayed and you can view the results of the various processes described above.