Payroll Run

Pear Tree
2016-12-21 15:56

How to do a Payroll Run

Finance – Payroll – Update – Employee

 

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Employee ID: Mandatory

-        Manually enter if using own Code, or click New for the system to assign.

 

Name

 

First Name:  Mandatory

-        Enter the First Name of the Employee.

-        Alphanumeric.

-        Freeform.

 

Middle Initial:

-        Only one character or will receive an Error message.

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-        Must be alphabetic or will receive an Error message.

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Surname:  Mandatory

-        Enter the First Name of the Employee.

-        Alphanumeric.

-        Freeform.

 

Street 1Mandatory

-        Enter the Address of the Employee.

-        Can be a Street Address or a Postal Box.

-        Alphanumeric.

-        Freeform.

 

Street 2:

-        Enter the additional Address information if needed.

-        Alphanumeric.

-        Freeform.

 

City:  Mandatory

-        Enter the City/Town.

-        Alphanumeric.

-        Freeform.

 

State/Province:  Mandatory

-        Enter the State or Province.

-        Alphanumeric.

-        Freeform.

-        Not linked to any Tables.

 

Country:  Mandatory

-        Choose from dropdown.

-        From System Admin – Configuration – Location – Country.

 

Zip/Postal:  Mandatory

-        Enter the Postal or Zip Code.

-        Alphanumeric.

-        Freeform.

-        Not linked to any Tables.

 

Phone 1:

-        Enter phone number.

-        Alphanumeric.

-        Freeform.

 

Phone 2:

-        Enter phone number.

-        Alphanumeric.

-        Freeform.

 

 

Date of Birth:

-        Month/Day/Year

-        Manually enter or click on the Calendar icon.

-        Affects deductions (Exp.: people under a certain age and over another do not pay CPP).

-        Numeric only or will receive an Error message.

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Social Insurance No.:

-        Must be 3 sets of 3 numbers separated by a - or will receive an Error message.

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Health Insurance Number:

-        Alphanumeric.

-        Freeform.

 

Marital Status:

-        Choose from dropdown: Single or Married.

-        Defaults to Single.

 

Name of Spouse:

-        Alphanumeric.

-        Freeform.

 

Dependants:

-        Numeric only or will receive an Error message.

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-        Unlimited space.

-        Affects deductions.

 

Direct Deposit

-        Software does not do Direct Deposit.  No interface in the system.

-        To be developed in the future.

-         

Institution ID:

-        Information only.

-        Name of the Banking Institution.

-        Alphanumeric.

-        Freeform.

 

Transit No.:

-        Information only.

-        Transit Number of the Banking Institution.

-        Alphanumeric.

-        Freeform.

 

Account No.:

-        Information only.

-        Account at the Banking Institution used.

-        Alphanumeric.

-        Freeform.

 

Termination Date:

-        Last day the employee works.

-        Enter manually or click on the Calendar Icon.

-        Must do the Final Payroll before a date is entered.

-        Cannot delete an employee.  Once date is entered, no longer appears on Payroll.

 

Start Date:

-        First day the employee works.

-        Enter manually or click on the Calendar Icon.

 

Roll:

-        Choose from dropdown.

-        From PTS – Table Mtc. – Financials – Payroll Tables – Payroll Table or Finance – Payroll – Administration – Payroll Table.

-        Allows employees to be grouped together by how they are paid.

-        May have salaried employees paid bi-weekly and hourly employees paid weekly.  Or both are bi-weekly but the salaried can be run anytime and the Hourly must wait till all time cards are in.

 

Number Pays/Year:

-        Calculates automatically from Roll.

-        System generated.

 

Salary/Hourly:

-        Choose from dropdown if Salaried or Hourly employee.

 

Annual Salary:

-        If Salaried, enter employee’s Annual Salary.

 

Hourly Rate:

-        If Hourly employee, enter Hourly Rate.

 

Hours/Pay period:

-        If work the same hours every Pay Period, enter the amount.

-        If different hours every Pay Period, leave Blank.

-        If Hours and Hourly Rate are entered, the system automatically calculates the Annual Salary and enters in Annual Salary field.

 

Overtime Rate:

-        Enter if applicable.

 

Vacation Rate:

-        Rate varies from Province to Province.

-        Minimum rate is 4%.

-        Enter the amount as a number, not a decimal (4% is 4 not 0.04).

 

Default Vacation Payment:

-        If Vacation is paid on the cheque and not taken, check.

-        If vacation time is accrued, do not check.

 

Department:

-        Choose from dropdown if want to group employees by Department.

 

Store ID:

-        Not mandatory but if a Store is not selected will receive an error when doing Payroll.

 

Wages GL Account:

-        Expense account where Gross Wages go.

-        Manually enter or click the Underlined link to choose from the Table.

 

Province Net Claim:

-        Automatically entered by system when Roll is selected.

-        Determined by Provincial Tax Table.

 

Federal Net Claim:

-        Automatically entered by system when Roll is selected.

-        Determined by Federal Tax Table.

 

LSF Tax Credit (Prv):

-        Labour Sponsored Funds.

-        By province.

-        Manually enter.

 

LSF Tax Credit (Fed):

-        Labour Sponsored Funds.

-        Federal.

-        Manually enter.

 

 

Additional Tax:

-        If employee wants extra tax amount taken off each pay cheque.

-        Manually enter.

 

Withholding Tax:

-        If paying child tax, alimony, etc.

-        Government gives a deduction.

 

Deduction Code:

-        CPP, EI, Income Tax, Group Insurance, etc.

-        Manually enter or click the Underlined link to choose from the Table.

-        From Finance – Payroll – Update – Deductions.

 

Amount:

-        Can enter an amount or let the system calculate from the Deductions Table.

-        Can be overridden at time of Pay Roll.

 

Taxable Benefit Code:

-        If Employer pays for something on employee’s behalf.

-        Manually enter or click the Underlined link and choose from the Table

-        From Finance – Payroll – Administration – Payroll Code – Taxable Benefits.

-        Box 14 on the T4.

 

Employment Type:

-        Do not choose from dropdown unless commissioned.

-        If Commissioned is chosen, the following two fields become available.

 

Estimate Commission:

-        Different formulas used for calculating tax if commissioned because pay could be irregular.

-        Enter estimate.

 

TD1X Commission Expense:

-        If filled out on TD1 form estimated daily expenses such as gas for the year, can legally be claimed on Income Tax at end of the year.

 

TDX1 Total Remuneration:

-        Taxes on Total so the tax rate is evened out for the year.

 

 

 

 

 

 

 

 

 

Finance - Payroll – Administration – Payroll Table

 

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-        Once set up, do not have to do so again.

-        At Year End, need to roll the Year forward.

 

Payroll Code:

-        Code to be used for Payroll runs.

-        Alphanumeric.

-        Freeform.

 

Payroll Description:

-        Description of the type of Payroll – Weekly, Bi-weekly, etc.

-        Alphanumeric.

-        Freeform.

 

Current Pay Year:

-        Current Year.

-        Keeps track of Calendar year.

-        Pay Periods must be set up for the year before can enter or will receive an Error message (Finance – Payroll – Administration – Pay Periods).

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Current Pay Period:

-        The next pay period to run payroll for.

-        System keeps track if using Payroll Run to do payroll.

-        Weekly payroll will show current pay period as 01 – 52, Bi weekly: 1 – 26, Semi-monthly: 1 – 24, etc.

-        Pay Periods must be set up for the year before you can enter the first payroll or will receive an Error message. (Finance – Payroll – Administration – Pay Periods).

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State/Province:

-        Choose from dropdown.

-        From System Admin – Configuration – Location – State/Province.

-        Calculates Provincial and Federal Tax.

-        Make sure correct Province/State is chosen because every provinces tax is different.

 

Bank Code:

-        The Bank out of which the salary will be taken.

-        Choose from dropdown.

Finance - Payroll – Administration – Pay Periods

 

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Payroll Code:

-        Must be set up in Finance – Payroll – Administration – Payroll Tables first.

-        Choose from dropdown.

 

Payroll Year:

-        Enter the year for the Payroll, most likely the current year.

 

Number Of Pay Periods:

-        How many periods for that period.

-        Weekly – 52, Bi weekly: 26, Semi-monthly: 24, etc.

 

Pay Period:

-        System automatically calculates the Pay Periods by the Number entered above.

-        Cannot be edited in this field, must change the Number to change the listed Pay Periods.

 

Pay Period Start Date:

-        Automatically starts at 01/01.

-        Can be changed and system automatically recalculates the remaining lines.

 

Pay Period End Date:

-        Automatically calculated from the Start Date.

-        Can be changed.

-        Cannot enter a Date the same as or later then the next Start Date or will receive a Warning message.

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-        Will not automatically update any other line in the Table or the Start Date.

 

Salary GL Account:

-        Can enter the account but not necessary.

 

Finance – Payroll – Update – Deductions

 

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Deduction Code:

-        Enter Code.

-        Alphanumeric.

-        Freeform

 

Deduction Description:

-        Description of the Deduction.

-        Alphanumeric.

-        Freeform.

 

Occurrences:

-        Leave blank.

 

Tax Deductible:

-        Check to see if it is Tax Deductible:  exp., RRSP.

-        Choose from dropdown:  No or Yes.

-        Defaults to No.

 

Employer Portion Rate:

-        Percentage the employer pays.

-        Numeric only or will receive an Error message.

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-        CPP:  equal deductions for employer, enter 1.

-        EI:  Employer remits 1.4 times the amount.

 

 

Vendor:

-        If the deduction taken from the employee has to be paid to someone else (like Revenue Canada). Choose from the dropdown.

 

Create AP Invoice:

-        Check if all deductions are paid to someone else (like Revenue Canada).

-        Commonly used for EI, CPP and Tax.

 

Standard Deduction:

-        For Revenue Canada mandated deductions of CPP, EI and Tax.

 

Liability GL Account:.

-        Manually enter or click the Underlined link to choose from the Table.

-        Will show only Liability accounts in the Table.

-        Can manually enter an Expense account but will receive a Warning message.

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Expense GL Account:

-        For employer portion of CPP, EI etc.

-        Manually enter or click the Underlined link to choose from the Table.

-        Will show only Expense accounts in the Table.

-        Can manually enter a Liability account but will receive a Warning message.

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Set up for EI

 

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Two new boxes appear in the upper right hand corner.

 

Deduction Code:

-        Must be EI.

 

Employer Portion:

-        Must be filled in. 

-        Always 1.4.

 

Vendor:

-        Revenue Canada.

 

Liability Account:

-        Credited for amount deducted from the Employee and the amount the Employer matches.

 

Expense Account:

-        Needs to be filled in.

-        There is an Employer Portion Rate that needs to be paid.

-        Debited from the Employer’s matching account.

 

EI Employee Rate (%):

-        The percentage of Income that gets deducted.

 

Max. Annual Employee Premium:

-        Amount up to which the Employee is deducted.

-        After this amount the deductions stop.

 

Set up for CPP

 

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Three new boxes appear in the upper right hand corner.

 

Deduction Code:

-        Must be CPP.

 

Employer Portion:

-        Must be filled in. 

-        Varies.

 

Vendor:

-        Revenue Canada.

 

Liability Account:

-        Credited for amount deducted from the Employee and the amount the Employer matches.

 

Expense Account:

-        Needs to be filled in.

-        There is an Employer Portion Rate that needs to be paid.

-        Debited from the Employer’s matching account.

 

CPP Basic Exemption:

-        $3500.

-        First $3500 is exempt from CPP.

-        If Employee makes less than this amount per year, does not pay CPP.

-        Will average out the amount over the year.

 

Employee Contribution Rate (%):

-        Maximum Employee contribution for the year.

-        Contribution Rate/100 * Pay

 

Max. Annual Employee Premium:

-        Amount up to which the Employee is deducted.

-        After this amount the deductions stop.

-        Revenue Canada sends out a document twice a year with the amounts.

 

 

 

 

 

 

 

 

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