A Nett to Gross payment is an agreement between employer and employee that guarantees the employee a set take-home (net) pay each period, regardless of their personal tax credits or hours worked. Use this option to enter the nett amount you want to pay the employee. Sage 50 Payroll Ireland calculates tax, PRSI, and USC as part of the process, which determines the gross pay.
You can’t use Nett to Gross alongside:
- Benefit-in-kind (BIK) payments
- Illness benefit payments
- Maternity benefit payments
- Paternity benefit payments
CAUTION: Sage technical support can’t provide help with manual tax recalculations where you've used Nett to Gross.
Set up nett to gross
- Go to Company/Payroll, then select Payments.
- Select New, then set up the payment:
| Title | Enter the name of the payment. |
| Type | From the drop-down list, choose Variable amount each pay period. |
| Tax | If the payment is subject to tax, select this check box. |
| Universal Social Charge | If the payment is subject to universal social charge (USC), select this check box. |
| Include in pension calculation | If the payment is included in the pension calculation, select this check box. |
| PRSI | Depending on whether the payment is subject to PRSI or not, choose one of the following options:
- Apply Employee & Employer PRSI
- Apply Employer PRSI Only
- Apply Employee PRSI Only
- Do not apply PRSI
|
- Select Save, then Close.
- Go to Company/Payroll, then select Company Details.
- Open the Misc. tab, then in Nett to Gross Type, select one of:
- Total: To pay the employee a specific nett amount, and they aren't receiving any other payments, select this option
- Extra: To pay the employee an extra nett amount, in addition to any other payments they receive in the period, select this option
- In Nett to Gross Elm, select the payment you've created.
- To save, select OK.
Specify the nett pay amount
There are two different ways you can specify an employee's nett pay amount. The one you use depends on whether the nett pay amount stays the same each period or not.
Nett amount stays the same each pay period
- Select Processing, then Employee Details.
- Next Surname, select Browse, then choose employee.
- Select the Pay / YTD tab.
- Under Pay/Misc, in Nett to Gross, specify the nett amount to pay.
- Select Save.
- Repeat for each employee to specify nett pay amounts for, then select Cancel.
Nett amount changes each period
- Select Processing, then Time and Pay.
- In Entry mode, select Random, then Continue.
- Next to Employee, select Browse, then choose the employee.
- Under Nett To Gross, in the Pay box, enter the nett amount to pay.
- Enter any additional pay details, then select Save.
- Repeat for each employee to specify nett pay amounts, then select Cancel.
The timesheet shows a higher nett pay
If the employee's timesheet displays a higher nett pay, this is normally due to a tax refund, after importing new RPN information for the employee.
If the employee's receiving one nett to gross payment, set the Nett to Gross Type to Total. To do this:
- Go to Company/Payroll, then select Company Details.
- Open the Misc tab.
- Set the Nett to Gross Type to Total.
Before importing your RPNS
After importing your RPNs
Depending on what's in the employee’s contract and company policy about who's entitled to tax refunds, complete one of the following options:
- If the employer is to receive the tax refund: Set up a nett deduction and use it to deduct the refund of taxes on the employee's timesheet
NOTE: As the employer, you receive the tax refund automatically by a reduction in the tax liability owed to Revenue, via your monthly statement issued by the Revenue. - If the employee is to get the tax refund: Save the employee's timesheet and pay them the increased amount of nett pay