Creating a Pay Run

A pay run calculates pay for all employees with a specific pay frequency (e.g. all monthly employees, or all weekly employees).

Step 1: Start a New Pay Run

1. Go to Payroll > Pay Runs
2. Click New Pay Run
3. Select the pay frequency (weekly, fortnightly, four-weekly, or monthly)

The system automatically calculates the next period dates based on your previous pay run for that frequency. If this is your first pay run, you'll need to set the period start, period end, and payment date manually.

Step 2: Review Period Details

• Period Start / End — The dates this pay period covers
• Payment Date — When employees will be paid (this is reported to HMRC)
• Employee Count — Shows how many active employees match this pay frequency

Click Create Pay Run to generate the pay run.

Step 3: What Happens Automatically

When a pay run is created, the system:

1. Finds all active employees with the selected pay frequency
2. Calculates each employee's basic pay (annual salary / periods, or hourly rate x contracted hours)
3. Calculates PAYE income tax using the cumulative method based on their tax code
4. Calculates National Insurance contributions (employee and employer)
5. Calculates student loan and postgrad loan deductions if applicable
6. Calculates pension contributions (employee and employer) if enrolled
7. Calculates net pay
8. Stores year-to-date (YTD) figures for each employee

The pay run is created in Draft status so you can review and adjust before approving.

Pay Frequencies

Running Multiple Frequencies

You can have employees on different pay frequencies. For example:

• Monthly salaried office staff
• Weekly paid site workers

Each frequency has its own pay runs. They are completely independent.