Additional payments
You can add additional payments in three ways.
Directly in the employee's record. From the employee's record, click the Pay items tab. Under the Additional payments section, click Add a new payment.
Added to the employee through the company Pay items section. From the left, choose Pay items, then Additional payments. Search for the employee, then click Add.
Bulk-imported through the company Pay items section. From the left, choose Pay items, then Additional payments, then click Import payments.
Contractual payments
A contractual payment is paid to an employee in addition to their normal wage in line with the employment contract. This payment is added to the employee's monthly gross amount and is taxable, NIC-able and pensionable. There are three types of contractual payments:
➡️ Additional salary: Gives the option to add more paid work for the employee in the current month while recording their hours if necessary. These payments are categorised as such and can be reviewed in the custom reports section.
➡️ Backdated pay: Gives the option to add missed paid work for the employee from previous months while recording their hours if necessary.
➡️ Holiday pay: Can be paid out for holidays for employees who do not use the annual leave feature in the app, or as a separate holiday payment to their leave taken. You can also record the number of hours that have been paid to an employee which will then reduce their annual leave entitlement in the PayFit app.
Allowances
This is used to pay allowances that can be one-off or recurring payments. For easier reporting within Custom reports, we've created different subtypes of allowances:
➡️ Accommodation allowance
➡️ Car allowance
➡️ Mobile allowance
➡️ Travel allowance
➡️ Private medical insurance allowance
➡️ Remote work allowance
➡️ Acting up allowance
➡️ Call out allowance
➡️ Childcare allowance
➡️ Other
Net payments
In most cases, payments are paid gross (subject to tax, national insurance and student loan). In some cases, a payment might be paid net, after tax, national insurance and student loan. The following payments are paid net:
➡️ Homeworkers allowance net payment which is capped at £26 per month net pay. Amounts above £26 can be entered and anything paid above the capped amount is taxed and subject to NIC and this will be reflected in the homeworkers allowance screen.
➡️ Private medical insurance refunds are for employees who have been mistakenly contributing for too long or too much. This can be paid to the net directly with no cap. Please note that this does not make any adjustments to the employee's actual private medical insurance benefit on their P11D.
These can also be bulk imported at the company level in the pay Items section.
Deductions
You can add additional deductions in three ways.
Directly in the employee's record. From the employee's record, click the Pay items tab. Under the Additional deductions section, click Add a new deduction.
Added to the employee through the company Pay items section. From the left, choose Pay items, then Additional deductions. Search for the employee, then click Add.
Bulk-imported through the company Pay items section. From the left, choose Pay items, then Additional deductions, then Import additional deductions.
Contractual deductions
There are four types of contractual deductions available in PayFit:
➡️ Gross deduction: deducted directly from the employee's gross pay, before tax and NIC.
➡️ Net deduction: deducted directly from the employee's net pay, after tax and NIC.
➡️ Salary overpayment: deduct directly from the employee's gross pay to rebalance incorrect payments for earlier months.
➡️ Expense offset: deducted directly from the employee's net pay for expenses you've already paid the employee ahead of the payroll run.