Worked example: October payroll

This follows Bright Haven Services from setup to an approved October run. Every number matches the other pages of this guide. Practise in a training tenant and use the IDs your own system returns.

Before you start

Check	Where	Bright Haven
Payroll, Employee, Party and Organization are on	Administration	Yes
Employee feature Compensation is on	Administration	Yes
Each employee has one employment, assignment and pay agreement covering October	Employees	Amira: annual 36,000 GBP monthly. Omar: hourly 12.50 GBP monthly.
Three people with the right permissions	Administration	Farah, Ben, Carol (see Access)

Step 1: set up (Farah, once)

Payroll groups → Create payroll group:

Code	Name	Employer	Country	Currency	Frequency	Calendar	Jurisdiction
MONTHLY-LDN	Monthly London	Bright Haven – Head Office	GB	GBP	Monthly	GB-MONTHLY	GB-MANUAL

Component versions → Create component version three times:

Code	Name	Kind	Tax treatment	From	Rule version
OVERTIME	Overtime	Earning	Taxable	2024-01-01	V1
PENSION	Employee pension	Deduction	Pre tax	2026-04-01	2026-1
ER_PENSION	Employer pension	Employer contribution	Not applicable	2024-01-01	V1

Step 2: create the run (Farah)

Pay runs → Create pay run: Run number 2026-10, Payroll group Monthly London, Period start 2026-10-01, Period end 2026-10-31, Planned payment date 2026-11-02, Notes "October payroll".

Status DRAFT, totals Uncalculated.

Step 3: capture employees (Farah)

Employee	Service from	Service to	Quantity	Divisor	Explanation
Amira Hassan	2026-10-01	2026-10-31	1	12	Annual salary paid in 12 monthly instalments
Omar Haddad	2026-10-01	2026-10-31	160	1	Timesheet TS-2026-10-011, 160 h approved

Step 4: add lines (Farah)

On Amira's entry:

Component	Quantity	Rate	Source reference	Reason
Overtime V1	10.5	21.6346	OT-2026-10-001	10.5 overtime hours approved 30 Oct
Employee pension 2026-1	1	150	PEN-2026-10-001	Pension 5%, assessed externally
Employer pension V1	1	90	ERPEN-2026-10-001	Employer pension 3%, assessed externally

Omar has no lines.

Step 5: calculate (Farah)

calculate → reason "October inputs complete" → Confirm calculate.

Employee	Base	Earnings	Gross	Deductions	Net	Employer contrib.	Employer cost
Amira	36,000 × 1 ÷ 12 = 3,000.00	10.5 × 21.6346 = 227.16	3,227.16	150.00	3,077.16	90.00	3,317.16
Omar	12.50 × 160 ÷ 1 = 2,000.00	0.00	2,000.00	0.00	2,000.00	0.00	2,000.00
Run			5,227.16	150.00	5,077.16	90.00	5,317.16

(10.5 × 21.6346 = 227.1633, rounded to 227.16.)

Step 6: review (Ben)

Ben opens both statements and checks:

Check	Amira	Omar
Snapshot matches the HR record	Annual 36,000, Monthly	Hourly 12.50, Monthly
Quantity and divisor match the explanation	1 ÷ 12 for monthly	160 hours = timesheet
Each line has a source reference and reason	Yes	(none)
Net is not negative	3,077.16	2,000.00

review → "Checked against timesheets and pension schedule" → Confirm review. Status REVIEWED.

If Farah had tried this, it would be refused: "Reviewer/approver must differ from payroll preparers".

Step 7: approve (Carol)

Carol checks the totals: gross 5,227.16, net 5,077.16, employer cost 5,317.16.

approve → "Approved for payment on 2 November" → Confirm approve. Status APPROVED.

Step 8: after approval

Payroll's job is done. Outside Payroll, Bright Haven:

1. pays Amira 3,077.16 and Omar 2,000.00 through its bank;
2. pays the pension provider 150.00 + 90.00 = 240.00;
3. books the payroll cost in its accounts.

Variation: a correction before approval

At step 6 Ben spots that Amira's overtime should be 8 hours.

Step	Who	Action
1	Farah	reopen "Overtime hours wrong: 8 approved" → DRAFT
2	Farah	Remove the overtime line, reason "Replaced by corrected line"
3	Farah	Add Overtime: 8 × 21.6346, source OT-2026-10-001-R1
4	Farah	calculate → Amira gross 3,173.08, net 3,023.08; run gross 5,173.08
5	Ben	review (allowed: Ben changed nothing)
6	Carol	approve

Variation: November with a pay rise

Amira's salary rises to 39,000 from 16 November. Capture two entries in run 2026-11, split at the change (November has 30 days; Bright Haven agreed a basis of 12 × 30 = 360):

Entry	Service	Quantity	Divisor	Base
1	1–15 Nov	15	360	36,000 × 15 ÷ 360 = 1,500.00
2	16–30 Nov	15	360	39,000 × 15 ÷ 360 = 1,625.00

Capturing one entry for the whole month is refused: "Payroll service period requires exactly one covering compensation record; split periods at HR changes".

Next: Help and troubleshooting.