How to use Net to Gross payments

The Net to Gross feature allows you to enter the exact net amount an employee should receive, without manually calculating tax, National Insurance, pension deductions, or other statutory contributions.

This is commonly used for:

• One-off bonus payments
• Compensation adjustments
• Guaranteed net payments
• Relocation or reimbursement scenarios

When payroll is processed, the system automatically calculates the gross amount required to achieve the target take-home/net payment.

The calculation considers:

• PAYE tax
• National Insurance (NI)
• Student loans
• Postgraduate loans
• Pension deductions (where applicable)

How to add a net to gross payment

1. Navigate to Payroll then Additions/Deductions
2. Select Add New or edit an existing addition
3. Choose the relevant addition type
4. Enter a description for the payment (e.g "Net Bonus Adjustment")
5. Enter the amount the employee should receive after deductions
6. Tick the Net to Gross checkbox
7. Select Save

The entry is now ready to be processed during payroll.

How to view a calculated net to gross payment

After payroll has been processed:

1. Navigate to Payroll Summary then Payments

2. Locate the Net to Gross entry to view:

• • The calculated gross amount
  • The associated payment details

Variances

Net to Gross calculations are typically accurate within £1 of the target net amount, although more complex payroll scenarios may result in a variance of up to £10. 

Variances are more likely when:

• Earnings are close to tax thresholds
• Multiple deductions apply
• Large net amounts are entered

Pension considerations

If the payment should be pensionable, it must also be:

• Taxable
• Subject to National Insurance

When these conditions are met, pension deductions are automatically included in the Net to Gross calculation.

Payrolled benefits (PBIK)

Limited support is available for Payrolled Benefits in Kind (PBIK). Some deferment scenarios may not be fully supported and could affect calculation accuracy.