Processing payroll

Sage Help Centre

Sage Micropay takes the stress out of processing your employees' pay.

Simply set up the different payments and deductions you need and assign them to your employee records. Sage Micropay deducts the tax, universal social charge (USC) and pay related social insurance (PRSI) contributions and calculates your employees' net pay.

To help you to process your payroll, we've gathered all of the resource and information that you'll need here.

Did you know?

If you use online banking, you can make payments to your employees easily, using your payroll data.

Within Sage Micropay, you can create a bank transfer file which contains all of your employee's payment details. You can then upload this file to your bank, where they make the payments directly to your employees' bank account.

Track, accrue and process holidays

Everyone looks forward to their holidays, but if you're the one who has to keep track of them for your business, it can be time consuming.

Within Sage Micropay, you can use the Holiday Accrual option to quickly and easily record your employees' holidays and process their holiday pay.

 

Before you start to process pay for the current period, there are a couple of things you may need to do to get your payroll ready. For example, you may need to set up new payments and deductions, or update your employees' tax allowances.

Set up payments

When you set up a payment in Sage Micropay, you can choose a number of different payment types, for example, hourly pay or fixed salary pay. You can also specify whether a payment is subject to universal social charge (USC), pay related social insurance (PRSI), tax and pension calculation. Read more >>

When you set up a payment in Sage Micropay, you can choose a number of different payment types, for example, hourly pay or fixed salary pay. You can also specify whether a payment is subject to universal social charge (USC), pay related social insurance (PRSI), tax and pension calculation.

To set up a new payment, from the Payments window:

Open the Payments window now
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Set up deductions

Deductions are amounts taken from the employee's pay before they receive it, such as, pension contributions or loan repayments. When you set up a deduction in Sage Micropay, you can specify whether the amount should be taken from an employee's gross or net pay. Read more >>

Deductions are amounts taken from the employee's pay before they receive it, such as, pension contributions or loan repayments. When you set up a deduction in Sage Micropay, you can specify whether the amount should be taken from an employee's gross or net pay.

To set up a new deduction, from the Deductions window:

Open the Deductions window now
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Update your employees' tax allowances

During the tax year, Revenue may issue you with new or amended employee tax allowances. If you're not registered with Revenue Online Service (ROS), you must enter these values manually in to Sage Micropay.

If you're a registered ROS customer, you can download a P2C file from their website that contains your employees' allowances. You can then import this file directly in to Sage Micropay using the Tax Credit Import option:

  • On the menu bar, click Miscellaneous then Tax Credit Import then Import Tax Credits. Read more >>

During the tax year, Revenue may issue you with new or amended employee tax allowances. If you're not registered with Revenue Online Service (ROS), you must enter these values manually in to Sage Micropay.

If you're a registered ROS customer, you can download a P2C file from their website that contains your employees' allowances. You can then import this file directly in to Sage Micropay using the Tax Credit Import option.

Import your employees' tax credits now
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There are several steps to completing a pay run in Sage Micropay. You can access all the options you need from the desktop process map.

Processing your payroll

To process your payroll, you must complete each of the following steps in order. For more information, simply click the relevant step below.

Tip: These are the minimum steps required to process your payroll. You can find additional steps that could save you time, in the Optional steps section.

Step 1 - Set the current pay period

  1. On the menu bar, click Processing then Set Period.
  2. In the New period to process box, change the number to your next pay period.
  3. Check the dates and information are correct for the current period. If not, amend as required.
  4. Once all information is correct for the new period, click OK.
  1. Open the Set Period window.
  2. In the New period to process box, change the number to your next pay period.
  3. Check the dates and information are correct for the current period. If not, amend as required.
  4. Once all information is correct for the new period, click OK.
Open the Set Period window now
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Step 2 - Enter your employees' pay details

  1. On the menu bar, click Processing then Time and Pay.
  2. Under Entry mode, select Random then click Continue.

    3. Tip: There's a number of other entry modes you can use to process your employees' pay.

  3. Next to the Employee box, click browse  and click the relevant employee.
  4. Enter the employee's pay values, then click Save.
  5. Repeat steps 3 and 4 for each employee you want to pay this period, then click Cancel.
  1. Open the Time and Pay window.
  2. Under Entry mode, select Random then click Continue.

    3. Tip: There's a number of other entry modes you can use to process your employees' pay.

  3. Next to the Employee box, click browse  and click the relevant employee.
  4. Enter the employee's pay values, then click Save.
  5. Repeat steps 3 and 4 for each employee you want to pay this period, then click Cancel.
Open the Time and Pay window now
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Step 3 - Post your end of period values

Once you've entered your employees' pay information for the current period, you're ready to finalise the payroll.

  1. On the menu bar, click Processing then End Of Period.
  2. When you're prompted to post calculation results, click OK.
  3. Check the payroll status at the bottom of your window is End of Period. If it’s not, repeat the previous steps.

Note: You must run the End of Period option before you can process your next pay period.

After posting the end of period values, you may detect errors in your data, for example, if you've saved a timesheet for someone by accident or you overpay someone. If so, you must rewind the end of period process and correct these errors before posting the end of period values again.

Once you've entered your employees' pay information for the current period, you're ready to finalise the payroll. To update your employees' year to date values and your P30/CC124 totals with the current period's values, you use the End Of Period option.

Run the End of Period process now

After posting the end of period values, you may detect errors in your data, for example, if you've saved a timesheet for someone by accident or you overpay someone. If so, you must rewind the end of period process and correct these errors.

Rewind the End of Period process now

Note: You must run the End of Period option again before you can finalise your payroll values for the current pay period and process your next payroll.

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Step 4 - Print your payroll reports and employee payslips

Once you've finalised your payroll, you can print your employees' payslips or email them to your employees. You can also print other reports that show a breakdown of the payroll values. If you're not sure which report you want to print, use our handy guide to help you find the report you need.

Once you've found the report you're looking for, to print it:

  1. On the menu bar, click Reports then Payroll Reports.
  2. Locate and select the relevant report.
  3. If you want to change your printer, click Setup, choose the relevant printer then click OK.
  4. Click Print.
  1. Open the Payroll Reports window.
  2. Locate and select the relevant report.
  3. If you want to change your printer, click Setup, choose the relevant printer then click OK.
  4. Click Print.
    5. Open the Payroll Reports window now

Tip: If you want to generate historically reports, you must use the Period Archive option to revert back to the previous period's data. Once you've done this, follow the steps detailed above.

Step 5 - Back up your payroll data

It's important that you take a regular backups of your data each pay period. If your data becomes corrupt or unusable, you can restore back to an earlier period and recover your data.

  1. On the menu bar, click Miscellaneous then Backup.
  2. Click browse , browse to where you want to save the backup then click OK.
  3. Click Backup then OK.

From the Backup window, complete the following steps:

  1. Click browse , browse to where you want to save the backup then click OK.
  2. Click Backup then OK.
Open the Backup window now
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Optional steps

When you process your payroll, there's a number of optional steps you can do to save you time. You can find the following options on the desktop process map. For more information, simply click the relevant step below.

Create a bank transfer file

You can use the e-Banking feature of Sage Micropay to easily pay your employees, using your payroll data. You create a file containing your employee's payment details, which you can import directly into your banking software. This means you can make payments directly to your employee's bank accounts from your computer. Read more >>

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Process nominal

Once you've finalised your payroll, you can use the Process Nominal option to quickly and easily transfer your payroll values to Sage 50 Accounts.

Before you start to use this option, if you haven't already done so, you must enter your default nominal settings in Micropay. You can then export your journals to a CSV file and import this directly in to Sage 50 Accounts. Read more >>

Tip: If you don't use Sage 50 Accounts, you can still export your journals to a CSV file.

Process pension

Once you've finalised your payroll, you can use the Process Pension option to generate a pension contribution file that contains both employee and employer pension information.

If your pension provider wants this information sent to them electronically, you can upload this file to them over the Internet, where they make the payments directly to your employees' pension account. Read more >>

At the end of each tax month, you should check your P30 to see how much you owe to Revenue. If you process your payroll and make your P30 submissions on a monthly basis, you can follow these steps each time you run your payroll. If you process your payroll on a weekly, two-weekly or four-weekly basis, you should only follow these steps after you finish the last payroll run in the P30 reporting month or quarter.

1. Preparation

2. Generate the P30 file for upload to ROS

3. Submit the P30 file on the ROS website

4. Record the P30 payment reference in Micropay

1. Preparation

Before you generate your monthly or quarterly P30 returns, make sure you:

Finalise your payroll values

Check the payroll status at the bottom of your Micropay window is end of period or EOP. If it's not, click Processing then End of Period and  OK.

This ensures that the totals on your P30 report include the current period's values and are up to date.

Check the payroll status at the bottom of your Micropay window is end of period or EOP. If it's not, you must post the end of period values now. This ensures that the totals on your P30 report include the current period's values and are up to date.

  1. Open the End of Period window.
  2. When prompted to post calculation results, click OK.
Open the End of Period window now

Print and compare your P30 and Control Summary reports
  1. From the Reports window, select Control Summary then click Print.
  2. Select P30/CC124, then click Print.
  3. When prompted to show quarterly subtotals, click No.
Open the Payroll Reports window now
  1. On the menu bar, click Reports > Payroll Reports.
  2. Select Control Summary then click Print.
  3. Select P30/CC124, then click Print.
  4. When prompted to show quarterly subtotals, click No.

Once you've printed both reports, make sure the following corresponding values match on each report:

Control Summary - Cumulative Control Totals P30/CC124
Tax This Emp. - C/Forward PAYE Year
USC This Emp. - C/Forward USC Year
PRSI Employee + PRSI Employer - C/Forward PRSI Year

If the values are different, you must investigate the reasons why and reconcile the differences.

2. Generate the P30 file for upload to ROS

  1. Open the Payroll Reports window.
  2. Under File Export, select P30 to ROS then follow the on-screen prompts.
Open the Payroll Reports window now
  1. On the menu bar, click Reports then Payroll Reports.
  2. Under File Export, select P30 to ROS then follow the on-screen prompts.
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3. Submit the P30 file on the ROS website

For more information about how to do this, please contact the ROS technical help desk directly:

  • By phone - 1890 201 106, if you're calling from outside Ireland, dial +353 1 702 3021.

Note: Once you submit the P30 file on the ROS website, you receive a confirmation email in your ROS inbox with the payment reference number stated on it. If you ever need to query the payment with Revenue, you can simply provide them with this number.

4. Record the P30 payment reference in Micropay

  1. On the menu bar, click Company/Payroll then P30 /CC124.
  2. Locate the relevant P30 reporting month, then complete the following information on it's entry line:

    3. Note: If you submit your returns on a quarterly basis, you can complete the following information in any of the three months associated with the relevant quarter.

    Date Paid The date of your payment to Revenue.
    Receipt No The reference number or cheque number associated with the P30 payment, if applicable.
    Receipt Date The date of the receipt associated with the tax return period.
  3. Click OK.
  1. From the P30 /CC124 window, locate the relevant P30 reporting month then complete the following information:

    2. Note: If you submit your returns on a quarterly basis, you can complete the following information in any of the three months associated with the relevant quarter.

    Date Paid The date of your payment to Revenue.
    Receipt No The reference number or cheque number associated with the P30 payment, if applicable.
    Receipt Date The date of the receipt associated with the tax return period.
  2. Click OK.
Open the P30/CC124 window now

Here you can see what you’re asking us about processing payroll.

How can I pay an employee whose already left?


Can I exclude an employee on long time absence from my payroll?


Can I process my payroll using different pay intervals?


Can I combine multiple payrolls to generate a single P30 submission file for Revenue?


Can I split an employee's pay between two or more bank accounts?


Should I save a zero value timesheet for employees?


What should I do if I get the message 'Negative pay'?


Can I pay an advance to one of my employee before I complete the current period?


Can I print reports from a previous pay period without restoring a backup?


How can I correct a mistake from a previous pay period?