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.
Opening balances
If you start using Moonworkers part way through the tax year, or take on a new employee who has a P45, you can enter opening balances so the year-to-date figures continue correctly. You record the previous gross pay to date, tax paid to date, National Insurance, and any student or postgraduate loan deductions to date.
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