ℹ️ Please note: This feature is currently behind our Finity Labs section, that is currently being rolled out over the coming days/weeks.
If you cannot see or access this currently, please feel free to reach out to our Customer Success Team, who will be able to support and guide you.
With salaried payroll, paying your permanent employees is simpler than ever. Once you’ve set a worker’s type to Salaried and entered their salary details, their pay is automatically calculated every pay period without the need to manually add, or import timesheets.
When payroll is processed, pro-rata pay for starters or leavers is automatically calculated using the workers daily rate. Their salary is added to the payroll batch as a Basic Salary (SAL) component, ready for review.
The usual Payroll dashboard will now become a Timesheet dashboard and the new Salaried payroll dashboard allows processing of all salaried employees due to be paid, by pay frequency and pay period. You simply review the figures, check any warnings/errors, and process payroll as usual.
Creating Working Patterns
Creating Working Patterns
Before you can configure salaried employees, you need to ensure your working patterns are set up correctly. These define the standard working week that salary calculations (such as daily rates and pro-rata amounts) are based on.
ℹ️ The working pattern is critical to ensuring accurate daily rates and pro-rata salary calculations. Without this setup, payroll figures may not calculate as expected starters, leavers, daily and hourly rates.
Navigate to Working Pattern Settings
Go to Admin → Working Patterns.
This area allows you to define a default working pattern or create custom patterns for individual employees.
Add a New Working Pattern
Click ‘Create new’.
Enter a Title for the working pattern (e.g., "Standard 5-day week", "4-day compressed week").
Configure:
Working Hours (full-time equivalent) - The number of working hours considered full-time at your organisation (e.g., 37.5).
Working hours (actual) - The number of hours employees on this working pattern actually work each week.
Working days (full-time equivalent) - The number of working days considered full-time at your organisation (e.g., 5).
Working days (actual) - The number of days employees on this working pattern actually work each week.
Select if you wish this new working pattern to be set as the system default.
Save and Review
Click ‘Save’ once you’ve added all required details.
Check that the pattern appears in the list.
Check the correct working pattern is displayed as the ‘System default’
This pattern can now be assigned to specific Payment Companies or employees.
Create Multiple Patterns (Optional)
If you have different schedules (e.g., part-time roles, weekend shifts), repeat the process to create additional patterns.
Each salaried employee can be linked to the relevant working pattern in their salary details.
Setting a Working Pattern on a Payment Company
Setting a Working Pattern on a Payment Company
Navigate to Payment Company details screen
Go to Admin → Payment companies.
Select the Payment company you wish to set the working pattern for.
Add Default Working Pattern
Scroll down to the Salaried Workers section
Use the dropdown on the Default Working Pattern field to select your chosen default working pattern.
Click Save.
Getting started with salaried workers
Getting started with salaried workers
The next step to processing salaried payroll is to make sure each worker is correctly set up. To do this, open or create, a PAYE worker record and set their Worker Type to ‘Salaried’.
The Payroll tab of a salaried employee will display the salary details that have been set.
If you need to add, or make a change to, a worker’s salary, working pattern, or hours, select Modify Salary Details. Here you can update the fields and save the details to create a new entry in the salary history log.
You can configure:
Annual Salary (Full-Time Equivalent) - The annual salary for someone working full-time hours in this role.
Working Pattern - select the relevant pattern for this employee. Details of the selected pattern will be displayed for checking in the following fields:
Working Hours (full-time equivalent)
Working hours (actual)
Working days (full-time equivalent)
Working days (actual)
Salary Start Date - The date from which the salary calculation should begin. If No 'Salary Start' date has been provided. Payroll will be calculated from the employment start date.
Salary End Date - The date up to which this salary is to be calculated, if known. You can set a 'Salary End' date to trigger a pro-rated payroll calculation prior to terminating and issuing a P45.
Effective Date - When the effective date falls in the middle of a pay period, it will apply from the next full period. To apply immediately, set this to a date before the start of the current period.
The information entered here is used to provide the Salary per Pay Period; an estimated amount showing what the employee would earn for each pay frequency, and as a daily or hourly amount. These figures are prorated using the selected working pattern.
On save, a record of the changes made is added to the previous salary changes with the dates they took effect displayed in the Salary History section.
How salaried pay is calculated
How salaried pay is calculated
When you process payroll for salaried workers, their pay calculates automatically based on the salary details on the employee record. In a normal period where the employee works the full frequency (for example, a full month), their salary is divided by the number of pay periods in the year. For example, a £30,000 annual salary paid monthly would result in £2,500.00 gross pay.
If the employee starts or leaves partway through a period, the calculation is prorated. This uses their daily rate, which is determined by dividing their weekly salary by the number of working days they’re contracted to work. The daily rate is then multiplied by the number of days worked in that payroll period to determine their gross pay.
The calculated gross pay is added as a SAL - Basic Salary pay component to the payroll batch automatically. You don’t need to add timesheets or make manual calculations for these employees.
Managing Adjustments and Additional Payments in Salaried Payroll
Managing Adjustments and Additional Payments in Salaried Payroll
While salaried payroll automates the calculation of an employee’s pay based on their annual salary and working pattern, there may be occasions where you need to make adjustments or add other payments and deductions. The system allows you to do this in the same way you would for non-salaried (timesheet) workers.
Temporary Adjustments
Temporary adjustments are one-off changes made to an employee’s pay for a specific payroll period. Examples include:
Adding an extra payment such as a bonus or commission
Deducting an overpayment or unpaid leave
Adjusting for mid-period changes (e.g., manual override if a worker changes hours temporarily)
How to add a temporary adjustment:
Locate the employee’s record
Open the Payroll tab
Using the ‘Add new adjustment’ section
Choose the relevant payment period
Choose the pay component
Enter the Quantity and Rate for the adjustment
Click ‘Add adjustment’ - the adjustment will only apply to this pay period.
Recurring Payments
Recurring payments are regular, repeating payments added to an employee's salary (e.g., allowances, car payments, shift premiums).
To set up a recurring payment:
Locate the employee’s record
Open the Payroll tab
Using the ‘Recurring Payments’ section
Using the ‘Add new recurring payment’ section
Choose the pay component
Enter the Quantity and Rate, and description (if required)
Schedule the recurrence using the Start Date, End Date and Maximum Recurrence fields
Click ‘Add Payment’ - this will automatically be included in future payrolls until it is ended.
Other Payments
In the same way for salaried and non-salaried workers, other payments can be processed:
Statutory payments (e.g., SMP, SSP, SPP), if the employee qualifies:
Add the relevant statutory payment through the Statutory Assessments section, or manually, on the Payroll tab of the employee record.
If an employee has a court-ordered or other attachment (such as a AEO, or DEA):
Add the relevant details through the Attachment of Earnings Orders section, or manually, on the Payroll tab of the employee record.
If a debt amount is due from an employee, automatic Debt Collection can be configured using Settings (Pay Model Settings -> Debt Collection) to automatically reclaim the amount.
Important Notes:
Temporary adjustments affect only one payroll period and do not change the employee’s base salary.
Recurring components continue until the end date that has been set, or you manually end them.
Validations before running payroll
Validations before running payroll
Before payroll is finalised, a series of checks is run to help avoid payroll errors. These include:
Ensuring essential employee information for payroll processing, such as salary information, tax codes and bank details, are present.
Ensuring RTI data is valid.
Warning you if a salaried worker in the batch has holiday pay retained or accrued, as this is unusual for salaried staff.
NMW checks.
Checking that no duplicate or invalid entries are included.
Any warnings or errors are displayed on the Payroll Batch Validation screen so that they can be reviewed before completing the batch.
Running payroll for salaried workers
Running payroll for salaried workers
Within the Payroll area, when you open the Salaried Dashboard, you’ll see fields to select the pay Frequency and Period that you wish to process payroll for. Unlike timesheeted payroll, you don’t need to upload timesheets - the salary details are injected into the payroll batch automatically, along with any manual amendments or additional payments. From here, you simply review the figures, check for any warnings, and process payroll as usual.
Click the Payroll tab in the top right-hand corner of the homepage.
Select Salaried Dashboard from the right-hand menu.
Choose your pay Frequency and Period and click ‘Prepare Batch’ - this will take you through to the refine processing page.
Here you can refine who you wish to pay. Once you’ve selected what you’d like to include, click ‘Validate Payroll’
Pre-payroll validation will then take place. Any errors will be alerted at this stage – you won’t
be able to process payroll until these are corrected. Warnings are not critical but should be
reviewed. Once you are happy you can then click Process Payroll at the top or bottom right-hand side of the page.Post-payroll validation follows to check the payments and warn of potential errors. Here,
you can check payments to ensure they look correct using the magnifying glass icon. If any calculations look incorrect, they can be removed from the payroll batch and the rest processed.Once you have committed payroll you have completed the process. At this point Payslips, communications, and RTI will be queued up. After one hour the payslips and communications will be sent, so any amends to the pay run are best resolved in this time.
Any workers removed from the batch will be left as outstanding on the payroll dashboard
ready for you to take action.
Changes to reports and the worker portal
Changes to reports and the worker portal
Some payroll reports have been updated to support salaried workers. The Worker Data Report now includes a column showing Worker Type (salary/timesheet), and the Payroll Calculation Batch Report includes a Calculated Gross field showing the injected salary amount for each employee. The Download Variance Report button does not appear on salaried batches, as this report is only relevant for timesheeted payroll.
The worker portal for salaried employees is simplified. The Timesheets screen does not appear for these employees, as their pay does not rely on timesheet input, and the Holiday Method field is hidden.