Payroll
Payroll prepares, calculates, reviews and approves pay runs. For each employee in a run it takes a frozen copy of their employment and pay agreement from Employees, applies the quantities you enter, adds earnings, deductions and employer contributions, and works out gross pay, net pay and the cost to the employer.
Payroll is country-neutral. It does not know any tax or national-insurance rules:
Approving a pay run records a checked calculation. It does not:
- calculate statutory tax, social insurance or pension;
- pay anyone or create a bank file;
- post to Accounting;
- produce a statutory payslip or filing.
Amounts such as tax or pension are worked out elsewhere and entered as component lines.
Every page follows the same pattern:
- Where (the screen) and Who can do it (the permission);
- numbered steps that use the exact button and field names;
- a field table with an example for each field;
- what the system does next, and what it refuses.
All examples use one invented organisation, described below, so you can follow one pay run from setup to approval.
The example used in this guide
Bright Haven Services pays its staff monthly in GBP. The employer is the business unit Bright Haven – Head Office. The examples continue the Employees guide.
| Person | Role in the examples |
|---|---|
| Farah | Payroll preparer. Sets up groups and components, creates runs, captures employees, calculates. |
| Ben | Payroll reviewer. Checks the calculation. |
| Carol | Finance manager. Approves the run. |
Amira Hassan (BHS-001) | Employee. Annual salary 36,000, paid monthly. Worked 10.5 hours overtime in October. |
Omar Haddad (BHS-002) | Employee. Hourly rate 12.50. Worked 160 hours in October. |
The Payroll menu
Open Payroll from the dashboard. The Payroll workspace offers:
| Button | What it is for | Guide |
|---|---|---|
| Pay runs | Create runs, capture employees, calculate, review and approve | Create a pay run |
| Payroll groups | Who is paid together: employer, currency, frequency | Set up Payroll |
| Component versions | Earnings, deductions and employer contributions | Set up Payroll |
The life of a pay run
Each arrow is something a person does. Nothing moves on by itself.
| Status | Meaning | What you can do |
|---|---|---|
| DRAFT | Being prepared | Add or remove employees and lines; calculate; cancel |
| CALCULATED | Amounts worked out | Review; reopen; cancel |
| REVIEWED | Checked by an independent reviewer | Approve; reopen; cancel |
| APPROVED | Signed off. Frozen for good | Read only |
| CANCELLED | Abandoned. History kept | Read only |
Three different people
A normal run needs three different people: one who prepares and calculates, one who reviews, and one who approves. The system enforces this even for someone who holds every payroll permission. See Calculate, review and approve.
Key terms
| Term | Meaning | Example |
|---|---|---|
| Payroll group | Employees paid together: one employer, currency and frequency. | "Monthly London", GBP, monthly |
| Component version | A type of earning, deduction or employer contribution, valid for a period. | OVERTIME, rule version V1 |
| Pay run | One payroll period for one group. | Run 2026-10, 1–31 October |
| Employee entry | One employee's service period in a run. | Amira, 1–31 October |
| Snapshot | Frozen copy of the employee's employment, assignment, pay agreement and benefits. | Amira: annual 36,000 GBP, monthly |
| Quantity and divisor | How much of the agreed pay is due: base = rate × quantity ÷ divisor. | 36,000 × 1 ÷ 12 = 3,000 |
| Component line | An explicit amount added to an entry: quantity × rate. | Overtime 10.5 × 21.6346 |
| Gross | Base pay plus earnings. | 3,227.16 |
| Net | Gross minus deductions. | 3,077.16 |
| Employer cost | Gross plus employer contributions. | 3,317.16 |
Next: Access and permissions.