Payroll Data Migration in Sage 50

In addition to the regular accounting functionalities, the Sage software provides highly efficient services for Data Migration. In this blog, we will look at how to migrate payroll data manually from another system in Sage 50.

Before diving into the procedure, let’s understand some important points-

When to Migrate Payroll Data?

 Please make sure that the year to date values of your FPS match with HMRC. To ensure, 

• Make sure to complete all pay runs in your previous software.
• Migrate your data at the very beginning of a new tax month /quarter.
• Based on how frequently you pay HMRC, enter the total payroll values till that date in Sage Business Cloud Payroll.

Read More : Migrating to Sage Business Cloud at Payroll Year End

Payroll Data Migration Procedure

Follow the step by step instructions given below:

A) Enter the Employee Payroll Data

• Sign in to Sage Payroll
• A summary report will appear with a breakdown of the HMRC RTI, current pay runs and automatic enrolment pension information
• On the Summary screen, choose Enter Manually

Select your relevant P32 reporting details as below-

• P32 Payment Method– Choose whether you pay HMRC by cheque or bank transfer.
• Last completed P32 reporting period– Choose the last tax month/quarter you completed and paid to HMRC, on your previous payroll system. The first pay run processed in Payroll is at the beginning of the next reporting period.
• P32 Reporting Frequency– Choose whether you pay HMRC monthly or quarterly, as appropriate. If not sure, contact the payment enquiry helpline of HMRC.
  • Select the check box for each pay frequency you wish to use in order to specify when your employees are paid.
  • For each pay frequency in use, select the day of the week/month you want to pay the employees on.
  • To automatically change a pay date that may fall on a bank holiday /weekend to the previous working day, click on the Avoid Public Holidays and Weekends check box. Click Next.
  • Click on Add Employee to create a record for an employee paid in this tax year.
  • Click on Submit on the next screen to confirm and save the details entered so far. Else, the information entered will be lost.

B) Enter the Personal Details of your Employees

Enter the following Employee details:

• Forename(s)*
• Surname*
• Date of Birth*
• Gender*
• NI Number
• Telephone number
• Address (Street 1 and Street 2 need to be completed to avoid any future HMRC/pension submission errors)
• Email Address

Please Note: The fields marked with * are mandatory.

C) Enter the Tax Details

• Pay cycle– select how frequently you want to pay the employee
• Contracted weekly hours– Choose the number of hours the employee is contracted to work for you per week.
• Works Number- works numbers /payroll numbers for your employees, if used
• Payment Method*- Choose whether to pay your employee by cash, bank transfer or cheque 
• Start Date- Enter the date when the employee started working in your company
• Finish Date- In case the employee has left your employment in the present tax year, enter the last date of their work for you.
• Tax Code*- Enter the employee’s present Tax code.
• NI Category*- Choose the employee’s national insurance (NI) category.
• RTI Pay ID*- This is a unique employee reference for your company which is included in your submissions to HMRC.

D) Enter Employee Values

Here, you need to enter the amount of Employer contributions against any statutory payment recovery and compensation you have received so far.
Enter the following information before completing your first pay run

• Statutory Pay Recovery Values
• Eligible for Small Employers Relief
• Allowance Applied
• Employment Allowance values
• Statutory Pay Compensation Values
• Allowance Applied Mid-Year
• Allowance Used
• After you have entered in all the fields, click Save

E) Run the Migrate Payroll Data Wizard

• Select Settings
• Click on Migrate Payroll Data – Employer Values 2020/21.

Final Words

In the sections above, we have discussed some important points regarding the payroll data migration in Sage. If you are still having any difficulties while migrating your payroll data or if you have any queries, you may consult with some of the authorized Sage experts.

Frequently Asked Questions (FAQs)