Set up, Processing and Submitting E-Payments in Sage Business Cloud Payroll

There is a plethora of different ways that users can pay their employees once a pay run has reached its completion. These different methods include checks, cash payments, and E-payments in Sage Business Cloud Payroll.

Users can pick any one of these ways to pay their employees, but if they do not wish to indulge themselves in the cash or check methods of payment, they can simply set up e-payments, and the employees will electronically receive their payments. The purpose of the compilation of this article is to fully assist users in understanding how the e-payments work, how users can set e-payments up in Sage Business Cloud Payroll, and how they can easily process these e-payments at the end of a pay run.

Things to Consider Before Setting up E-Payments in Sage Business Cloud Payroll

Before users can proceed with the setup and the processing of their e-payments to their employees in the Sage Business Cloud Payroll application, there are a few things that need to be considered and taken care of to be able to use the e-payments feature properly.

The following are the things that need to be considered and taken care of to be able to use the e-payments feature properly in Sage Business Cloud Payroll.

  • The first thing create an e-payments account in Sage Payroll. Without this being done, there is no possibility of users being able to set up and process any e-payments in Sage Business Cloud Payroll.
  • Make sure to verify that the bank details that they have provided are correct.
  • There is a time buffer when the user processes an e-payment. This buffer is for 4 days.
  • The email addresses of all the employees that are on the list are required.

Once the things that are mentioned above have been taken care of by the users who are enterprising to set up and process any e-payments, they can proceed to the next step, that is, to set up e-payments in Sage Business Cloud Payroll.

Set up E-payments in Sage Business Cloud Payroll

Before users can begin to make e-payments to their employees at the end of a pay run, the user must make sure that all the employees’ payment details that the user has been set up correctly. To verify these details, the user can follow the steps mentioned below.

  • First, the user needs to navigate to the employee record. Select the tab with the title ‘Payments’.
  • Inside the ‘Payments’ tab, the user will be able to see a section with the title ‘Method of Payment’.
  • Change the ‘Payment Type’ field to ‘E-Payment’ from whatever the mode of payment was before. 
  • The user must verify these email addresses and names of all the payees in the order that they see them, and once no more changes are required to be made, the user can simply press ‘Save’ to update their changes.

These steps must be repeated for all the employees that the user wishes to pay using e-payments. Once the steps mentioned above have been completed, the user will have successfully set up all their employees for e-payments through Sage Business Cloud Payroll.

Processing E-Payments in Sage Business Cloud Payroll

Once a pay run for the employees on the user’s roster has been completed, the user can proceed to make their payments. The only thing that needs to be kept in mind here is that the user needs to process the payments at least 4 days in advance before the pay date for those employees arrives. So, if the pay date for the employees is July 18, then the user must submit their e-payments by July 14th (while keeping track of the timezones as well).

Users who are using e-payments for the first time need to first set up the e-payments feature before they can go ahead to use it.

  • Go to ‘Payments’ then navigate to ‘Set up E-Payments’, which can be found at the top-left part of the screen.
  • Create their e-payments account in Sage Payroll.
  • To create their account, the user must provide Sage Payroll with the business email address that they have for their company, their first name, and their last name.
  • Simply press ‘Create Account’ and their e-payments account will have been created in Sage Payroll.
  • Click on the option titled ‘Complete E-Payments Setup’.
  • The user will be redirected to Sage Payroll’s payment provider page so that they can complete the setup process.
  • Click on ‘Please complete your profile by adding a bank account to add their bank account from which the e-payments to all the employees who are required to be paid will be made in the future.
  • Enter the type of bank account ‘Business’ or ‘Personal’. 
  • The user will also be asked to check the box that asks if they have read all the terms and conditions.
  • The Sage Payroll application will send a verification code to the user, so the user must provide a valid phone number that is accessible to them.
  • Simply press ‘Verify’ to complete the 2-factor authentication process.

The user also needs to verify their bank accounts. There are two ways to do so: the first way is instant verification, and the second way is manual verification.

Instant (Automatic) Verification

  • The only thing that the user requires to be able to go through this route is their online banking details.
  • Select the ‘Instant Verification’ option.
  • Enter the name of the bank where they have their account and then press ‘Submit’.
  • Users will see a popup window that will contain the confirmation and information about Sage Payroll’s payment provider which uses various encryption methods to protect the data that the user provides.
  • If the user accepts the various encryption methods that Sage Payroll’s payment provider uses, then they can press ‘Continue’.
  • Now, the user will be asked to enter their online banking credentials. The user must provide all the details that have been asked.
  • Once the user has entered all the details, they can proceed to press ‘Submit’.
  • The last step to be done with the instant verification process is to press ‘Continue’.

Manual Verification

  • The first thing that they will be required to have at hand is their account’s account number.
  • The other thing that they will be required to have at hand is their account’s routing number. The account number and the routing number for the user’s bank account can be found at the bottom of a check in the user’s paper checkbook.
  • The user will first need to select the ‘Manual Verification’ and then enter their account number and the routing number.
  • If provided the correct details, the user can press ‘Submit’.
  • The user will be asked to choose whether their account is a Personal Checking, Personal Savings, or Business Account then press Submit.
  • Next, you receive an email that serves the purpose of verifying the user’s bank. There will be 2 deposits and 1 withdrawal (to cancel out the deposits) made by Sage Payroll’s payment provider, and the account will have been verified by this.
  • The user will see the email the day after the transactions mentioned above have been made. The user must open this email now and select ‘Verify Bank’.
  • The user will now be asked to enter the amounts of the deposits that were made earlier by Sage Payroll’s payment provider then just press ‘Submit’.

After any of the aforementioned verification processes have been completed, the user’s bank account will have been verified successfully. Now the user needs to return to the setup e-payments screen in Sage Payroll. Once they do so, they will be prompted with the message E-payments account set up successfully.

Submitting E-payments in Sage Business Cloud Payroll

Only after taking care of the things that have been mentioned above can users proceed to submit e-payments in Sage Business Cloud Payroll. Once a pay run has been completed, users can send e-payments without any issues to their employees by following the steps mentioned below.

  • Go to the ‘Payments’ tab. In the ‘Payments’ tab, the user is required to select the appropriate pay run
  • You will need to select all those employees from the list in front of them to whom the user wants to make the e-payments.
  • Users can also generate pay statements if they wish to do so or if it is required for any of the user’s employees.
  • Now, the user will need to verify that all the information that is in front of them is correct. If all the information is correct, the user needs to press Submit Payment.
  • The last step in submitting e-payments is to select ‘Submit Payments’ once again, and the payment process will have been completed.

Tips to Payroll Process Date Run a Monthly Payroll

With these instructions, you’ll learn everything you need to know about the Sage 50 Cloud Payroll program.

There are a few simple steps you’ll need to take before you enter your employees’ pay.

  • With the help of this info add any new starters.
  • Any statutory absences and payments should be entered here
  • If you aren’t paying any employees this period, put them on hold.
  • HMRC notifications can be found in the IR Secure Mailbox.

Process your payroll

  • First of all, you set your process date for the payroll
  • Change the process date by clicking Payroll.
  • Click OK after entering the process date.

Enter your employees’ payments in Sage 50

Your employees’ pay, hours, deductions, and anything else you want to appear on their payslips must be entered each period.

  • Select the employees you want to pay in this pay period.
  • Click Payroll, and then click Enter Payments.
  • Enter the hours and rates for payments and deductions.
  • Click the Summary tab and check the amounts are correct.
  • Click Save / Next for each employee. Click Close to complete.

Preparation of payslips and pre-update reports

Following the entry of your employees’ payments, you can produce their payslips by printing, emailing, or uploading them to an online portal.

  • First, click Payroll
  • Then click Pre-update Reports to print other types of payroll reports.

Payroll for the period should be updated

After you’ve entered your employees’ pay information and produced their Payslips, you can update your payroll, don’t worry, it’s easy.

  • First of all, click Payroll, then Update Records
  • After that click Yes then click Backup
  • And then next, click on another next option
  • Again click next, and then click Finish
  • Click OK, then Next.
  • Lastly, Finish, then click OK.

Using the Nominal Link Wizard, you can easily transfer payroll information if you use Sage 50 Accounts.

Post payment files via e-banking

You can create payment files to upload to your banking software if you pay your employees by BACS and use e-banking.

Submit your FPS to HMRC

After updating your payroll and, if required, processing any leavers, you’re ready to submit your FPS for this pay period to HMRC. You must send this submission on or before your process date to avoid any late submission penalties.

  • Click Pay Employees then click Full Payment Submission (FPS).
  • Select the checkboxes to indicate you have done everything you need to.
  • Click Full Payment Submission (FPS).
  • If you’re submitting your FPS after your pay date, from the drop-down menu, click the relevant reason then click OK.
  • Click here to view and print the submission log then click Print.
  • To return to the Pay Employees menu click close then click Return.

Once the e-payments have been made to all the employees on the user’s list, the status column for all those employees will be changed to ‘Submitted’.


Can individuals gain access to Sage Payroll?

Well, the answer to the above-mentioned question is Yes.
Individuals can access Payroll from inside their account after they have added it to their subscription. For doing the same, Accounting or Accounting Start is written in the upper left-hand corner, next to the Sage logo. To open it, pick Payroll from the drop-down menu.

Is it possible to make an addition of a new user to Sage Payroll?

You have access to add a new user to Sage Payroll usually, for doing the same follow the steps given below. Follow the steps below with accuracy to avoid unwanted errors:

● First, proceed to select User Management from the Settings menu. 
● Then click on the Invite user option.
● After the above step, enter the email’s address then hit on the Save button.
● Now, proceed to select whether you want the new user to have the System Manager access.
● Finally, Hit on Save Changes.

Does a Sage Payroll app exist?

The easy Sage HR mobile app lets you manage HR and payroll from anywhere. Examine leave and holidays, file claims, and give self-service to employees. Download it now for iOS or Android.