The Pay and compensation section of an employee profile is where you set and change what they are paid. You set a starting figure during onboarding, and you can always edit it here. The screen scrolls horizontally, so check across for all the columns.
Additions and deductions
You can add additions and deductions using pay codes, which are the same calculation rules you set up in your employer settings. A pay code can be a built-in system code or one of your custom codes. For example, you might add a payment in lieu or a termination award. Each one can be a fixed amount or a percentage of gross or net pay, and you can set a time frame so it only applies between certain dates. See Understanding pay codes for more on these codes.
Termination awards
A termination award is a payment made when employment ends, such as redundancy pay. The first £30,000 is tax free. Anything above £30,000 is subject to Income Tax and to employer Class 1A National Insurance at 15% for the 2026 to 2027 tax year, reported in real time through payroll. The employee pays no National Insurance on a termination award.
Benefits in kind
You can also add benefits in kind to an employee from a list, such as an asset transferred to them. A benefit in kind is something of value on top of salary, and each one is subject to employer Class 1A National Insurance. You enter its cash equivalent and whether the employee contributed anything, and you choose whether to payroll it or report it on a P11D. See Adding company cars and vans (benefits in kind) for how benefits are reported.
Where do I enter opening balances (year-to-date values)?
If you start using Moonworkers part way through the tax year, or take on a new employee who has a P45, you enter opening values so the year-to-date figures continue correctly. Open the employee profile, go to the Pay and compensation tab and click Opening values. There are two sub-tabs: one for tax (gross pay to date, tax paid to date, student and postgraduate loan deductions to date) and one for National Insurance (the year-to-date figures for each NI category letter). Each sub-tab can be switched between a normal mode and an advanced mode with more detailed fields.
Why are my opening values on the wrong tax year?
Opening values belong to the tax year set on your employer. If the pop-in shows an earlier year than expected, your employer was created on the wrong tax year. Change it in your employer settings, Payroll tab, before entering the figures. This is only possible while no payroll run exists, so delete any run you have started first. See "Moving your payroll to Moonworkers part way through the tax year".
How do I check the opening values are right?
Start your first payroll run and download a payslip preview for the employee. The year-to-date figures on it should continue from their last payslip with your previous provider. Fix any difference in Opening values, then click Refresh on the run.
Get started
In Moonworkers, open an employee profile and go to Pay and compensation. Not signed in yet? Log in at https://payroll.moonworkers.co.uk/auth/login