Configuring Pay Codes (UK)

Irregular Payments (Payment After Leaving)

If operating monthly frequency payrolls, if the payment is irregular (such as a bonus or overtime), if checked on, this will calculate National Insurance on weekly frequency on a payment made after someone has left employment.

X

X

X

X

VAT Exempt

If ticked, no VAT is payable to payees on top of any payments that are paid against this pay code. If un-ticked, VAT is payable on top of payments that are paid against this pay code. VAT will only be payable to payees with a tax type of Contractor.

X

Taxable

An indicator to show if an allowance is taxable. Where the field is not shown on the pay code type (with the exception of Reimbursement), the pay code will automatically be taxable.

X

NIable

An indicator to show if an allowance is subject to National Insurance. Where the field is not shown on the pay code type (with the exception of Reimbursement), the pay code will automatically be subject to NI.

Benefit In Kind

An indicator to show if an allowance is a benefit in kind. This means it will be included in taxable/NIable pay (if those check boxes are checked) but will not be paid.

X

Qualifying Earnings

An indicator to show if the pay code should be included in the earnings to determine if the payee qualifies for Auto Enrolment. When adding a pay code, this will automatically be checked on. Where the field is not shown on the pay code type (with the exception of Reimbursement), the pay code will automatically be included in the qualifying earnings.

CIS Materials

When paying CIS tax type workers, if a payee is being paid a reimbursement because they are supplying materials for the job, this needs to be identified separately to other reimbursements and is identified separately with the CIS300 submission.

X

NMW Base Rate

An indicator to identify if the pay code is a basic wage rate to be able to determine if the pay rate meets NMW rules. Click here to find out more

X

X

Included in NMW Determination

An indicator to identify if the pay code hours should be included in the NMW rate determination but the actual pay rate is not a basic rate of pay. For example, overtime @ 1.50, the hours worked would be used to divide the NMW pay by the total hours. Click here to find out more.

X

X

X

X