Thanks to frequent changing of tax tables and other associated rules, payroll processing has become a highly complex affair nowadays. If you are an employer, paying your employees timely and accurately must have been quite challenging, right? We guessed so! But, if you are using the Sage 50 accounting software, your life must have been easier, as far as payroll processing is concerned. This popular accounting software has incorporated a number of functions and useful tools to assist the employers. With its comprehensive payroll module, you can perform all your payroll activities with effortless ease.
Payroll entitlement is one such important feature in Sage 50. If you are yet to use this feature, you are at the right place! We are here to help you out. In this blog, we will discuss certain easy ways to set up a new payroll entitlement in Sage 50. Simply perform the steps sequentially and explore how you can be benefited by the incredible payroll features in Sage 50.
Here we go! Let’s first get to know what a Sage 50 payroll entitlement is all about..
What is Sage 50 Payroll Entitlement Feature?
In Sage 50, payroll entitlement is set up to calculate and track the entitlements due to the employees.You will see the entitlement tab on the paychecks. This tab does not create an accounting entry to lead to any banked hours. You will need to manually pay the banked hours on theIncometab. You may bank the days depending on a percentage of hours worked. Alternatively, you may enter the eligible days manually.
This feature is available in Sage 50 Premium Accounting or higher versions. Before you set up a payroll entitlement, make sure to switch to a single-user mode.
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How to Setup a New Payroll Entitlement in Sage 50?
For setting up a new payroll entitlement in Sage 50, you need to navigate to your company settings. Then you will need to make the below-mentioned modifications to the default payroll entitlements-
Total Time: 35 minutes
In a Work Day, Change the Number of Hours
🔷 Go to the Setup menu
🔷 Click on the Home window
🔷 Click on Settings.
🔷 Click on Payroll on the left hand side of the window
🔷 Now select Entitlements.
🔷 In the field named ‘Number of Hours in a Work Day’ , change the number.
🔷 Click OK to finish.
Rename an Entitlement
🔷 Go to the Setup menu
🔷 Click on the Home window
🔷 Click on Settings.
🔷 Click on Payroll on the left hand side of the window
🔷 Go to Names,
🔷 Select Additional Payroll.
🔷 Navigate to the Entitlements section
🔷 Click the entitlement you wish to change and type a new name for the same.
🔷 Click OK to finish
Add/Modify the Maximum Number of Days Earned in a Particular Year
🔷 Go to the Setup menu
🔷 Click on the Home window
🔷 Click on Settings.
🔷 Click on Payroll on the left hand side of the window
🔷 Now select Entitlements.
🔷 In the field named ‘% Hours worked’, enter the % you prefer.
🔷 Click OK to finish.
Add/Modify the Percentage of Entitlement Days/Hours Earned in a Particular Year
🔷 Go to the Setup menu
🔷 Click on the Home window
🔷 Click on Settings.
🔷 Click on Payroll
🔷 Now select Entitlements.
🔷 In the field named Maximum Days, modify/add the maximum entitlement days that can be earned by an employee.
🔷 Click OK to finish.
Setup Sage 50 to Save/Clear the Accrued Entitlement at the Expiry of a Particular Year
🔷 go to the Setup menu
🔷 navigate to the Home window
🔷 Click on Settings.
🔷 Click on Payroll
🔷 Now select Entitlements
🔷 Select Yes or No in the column named ‘Clear Days At Year-End’
🔷 Click OK to finish.
Final Words :
We hope the steps mentioned above would help you set up a new Sage 50 payroll entitlement on your computer. If you are finding it difficult to perform these steps or if you want more information about the Payroll Module in Sage 50, you should consult with some authorized Sage experts.
👉Frequently Asked Questions
Q 1. What is the Procedure to Create a New Payroll Income in Sage 50?
Ans : Here is a step-by-step procedure to create a new payroll income-
▪ Open Sage 50
▪ Click on Setup
▪ Navigate to Settings
▪ Click on the Payroll tab
▪ Navigate to the Income section
▪ Now, change the name of the next available Income with the income you wish to create.
▪ If needed, you may also change the income type
▪ Specify the taxes columns, if required
▪ Click on the Linked Accounts tab
▪ Now click on Payroll again
▪ Navigate to Income
▪ Click on the New Income column. Now you need to link the new income you created to your Wages account.
▪ Open the relevant Employee Record
▪ Click the Use column. Here, you need to specify the specified rate for the new Income.
Q 2. How can I Manually Install the Payroll Tax Updates in Sage 50 2022?
Ans : Please follow the steps given below-
▪ Open the Sage 50 2022 software
▪ Go to the Reports And Forms section
▪ Click on the Forms tab
▪ Select Tax Forms
▪ Now Open the Payroll Tax Forms tab
▪ Open your preferred tax form
▪ A prompt will ask you to install the tax updates
▪ Now click on the Download Updates tab
▪ After the download process is complete, click on Run Update
▪ The installation of the Sage 50 2022 payroll tax forms will start
▪ You will be asked if you wish to overwrite all the existing files. Click Yes to All to proceed
▪ Follow the on-screen instructions to complete the installation
