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How to process the COVID Social Care Bonus

How to process social care bonus on Sage 50 payroll for leavers

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Hi Sage are suggesting that we remove the leaving date for the employee and change tax code to 0T and then we have to manually calculate NI. After processing the irregular payment we then have to go back through all the leavers and re enter their leaving dates.  Does anyone have a better suggestion for processing these payments for leavers as it seems like a huge amount of work. Thanks 

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By Hugo Fair
20th Apr 2021 21:47

Is this a question about how to use Sage? Or a question about processing "the COVID Social Care Bonus" via PAYE?

If the former, then your software supplier should tell you how their software works - and of you don't like it (or don't believe them) then you need to change software.

If the latter, there are slightly different rules depending on whether you're referring to the Scottish or the Welsh scheme (there is no equivalent in England so far as I know) - but in essence:
* there are tight but fairly complicated eligibility rules regarding employees;
* the full bonus is only for full-time staff - and needs to be pro-rated for any relevant part-time staff (based on the number of hours they have worked);
* the payment is liable to Tax, NICs and SL repayments (where appropriate) - but is not pensionable and does not create a new baseline for future pay calculations;
* the payment will affect UC (where relevant) and many other state benefits.

You can research further via https://www.gov.scot/publications/coronavirus-covid-19-gbp500-payment-fo... and/or https://gov.wales/nhs-and-social-care-financial-recognition-scheme-guida...

If, irrespective of all the above, your question is merely about how to process a payment for someone who has already been given a P45 and reported as a 'leaver' to HMRC (via an FPS) ... then the usual 'payment after leaving' rules apply (on which Sage should be able to advise you - but see https://www.gov.uk/employee-leaving ).

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