How to Integrate Payroll with Sage 50

Integrate Payroll with Sage 50

Payroll is a major software product offered by Sage and offers a range of features to small and medium businesses. This includes payment of salaries to employees, generation of pensions, managing the expenses, calculating taxes, etc. Since it is an indispensable part of managing human resources, a majority of business owners want to integrate it with the Sage 50 software installed in their systems.

In this blog, we’ll provide you with the benefits of integrating Payroll with Sage 50 and the correct process you should follow to integrate Payroll with your accounting software.

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Why Should you Integrate Payroll with Sage 50?

Automating the Payroll processes of your business and managing the cash flow is essential to ensure that your finances are in check and your employees have transparent access to the aspects related to transparency. Consider the benefits mentioned below which you will get if you come on board with Payroll-

  • Employee’s payroll can be managed efficiently.
  • Insurances and Taxes can be checked
  • Employees can get their payslips via email and print them.
  • Company Holidays and absences can be managed.
  • Pensions can be handed out on time.
  • Comprehensive dashboards and customizable professional reports.
  • PAYE /NIC liability to HMRC can be tracked.
  • E-banking facility to pay employees on time.
  • Payslips, timesheets, and related documents can be stored.

Also Read: Sage 50 ‘Not opening’ error?

How to Integrate Payroll with Sage 50?

Integrating the Payroll feature with Sage 50 is not a herculean task, but it should be done systematically as changes during the course of this integration are reflected in the payslips generated and also in your accounts. Follow the steps below to set up integration-

  1. Open Accounting, then go to Settings and click Payroll integration
  2. Click on the Enable Payrolls journals check box
  3. Now select one of the options out of these-
    • To the Default Payroll Bank Account – on selecting this option a bank payment is automatically posted for the total net wages with the date of the payroll from the selected bank account. When the payments are recorded to HMRC, this bank account will be chosen.
    • To Net Wages Liability Account- if this option is selected, then the value of the net wages is posted in the liability account after the pay run. You can enter the bank payment manually and then clear the liability later.
  1. Click Save.


We expect that after going through this blog, you are successful in integrating Payroll with Sage 50. Now, the information related to salary and other related data will be posted to the accounts when payroll is run. If you still face any problems, have any queries, or require any kind of assistance, feel free to contact us or fill out the inquiry form on our website and we will get back to you. We are also present on leading social media platforms.


How to integrate Payroll if I use Sage One Accounts?

For users that use Sage One Accounts, integration can be set up using the Finance Integration Settings.

I changed my mind and don’t want to integrate Payroll. Can I disable it?

What are the various versions of Sage Payroll available?