Payroll Run
How to do a Payroll Run
Finance – Payroll – Update – Employee
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.
- Must be alphabetic or will receive an Error message.
Surname: Mandatory
- Enter the First Name of the Employee.
- Alphanumeric.
- Freeform.
Street 1: Mandatory
- 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.
Social Insurance No.:
- Must be 3 sets of 3 numbers separated by a - or will receive an Error message.
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.
- 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
- 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).
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).
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
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.
- 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
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.
- 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.
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.
Set up for EI
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
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.