How Do I Process Payroll?

Once payroll information has been set up, you are ready to process payroll; in other words, you are prepared to print reports, calculate a payroll, print checks, and transfer payroll data to Accounting. In order to do this efficiently, follow the steps outlined in this checklist. If needed, review the checklist for Setting Up Payroll.

  1. Enter Regular or Supplemental Timesheets (Timesheets>Enter Regular/Supplemental Timesheets).
    • Enter regular timesheets if an employee's payroll information varies from payroll to payroll, or if an employee's default timesheet information needs to be changed for a particular payroll.
    • Enter supplemental timesheets to give employees off-schedule or other non-standard payments, or there is a voided check and payroll needs to be reprocessed.
  2. Print and review timesheets for accuracy (Reports>Payroll>Processing>Quick Timesheets).
  3. Calculate payroll (Activities>Payroll>Calculate Payroll). If there are any problems with the calculation, the system displays an error message indicating the specific problems encountered during the calculation process.
  4. Review and/or edit calculated payroll (Activities>Payroll>Review/Modify Calculated Payroll). To view a printout of the calculated payroll register, use the Reports>Processing>Quick Calculated Check Register form. This supplies a register of calculated-but not printed-payroll checks and vouchers.

    5. Note: During the check printing process, all payroll history files are updated, and the calculated payroll and regular/supplemental timesheets are deleted. Therefore, it is a good idea to make a backup of the organization data files (using File>Backup) before proceeding with the check printing process.

  5. Print the payroll checks and direct deposit vouchers and email the vouchers (Activities>Payroll>Print/Email Checks and Vouchers). Remember that a payroll cannot be edited after confirming that the checks have been printed correctly.
  6. Print the payroll's check or voucher register for review and filing (Reports>Payroll>History>Quick Check/Transaction Register).
  7. If appropriate for the organization, create a Direct Deposit File (Reports>Payroll>Processing>Voucher Register). Print the direct deposit report, and/or export the direct deposit information to the appropriate file format (using an *.ACH file application).

    8. If the Direct Deposit module is installed, refer to the Processing Direct Deposit checklist for more information about creating and sending a Direct Deposit File to a financial institution.

  8. Enter information about payroll checks that were neither calculated nor printed by the system (Activities>Payroll>Enter Manual Checks).
  9. Print the Pre-Transfer Register (Activities>Payroll>Transfer to Accounting>Pre-Transfer button). It creates the transfer data to be used in the Reports>Payroll>Processing>Pre-Transfer Register.

    10. Note: If using accruals, we recommend creating two pre-transfer reports-one prior to entering the accrual and a second one after entering the accruals (Activities>Payroll>Transfer to Accounting). After comparing these reports, transfer the data to Accounting. Printing, reviewing, and filing these two reports will provide comparative information about the accrual.

  10. Transfer the payroll data to Accounting (Activities>Payroll>Transfer to Accounting). Note that this process creates unposted transactions in the system.
  11. Post transactions in Accounting (Activities>Manage Sessions>Post Transactions). To edit checks, use the Transactions>Payroll>Edit Payroll System Checks, Edit Payroll Manual Checks, or Edit Payroll Void Checks forms in Accounting. Select the batch of checks on the Session form, and then change the check information or transaction entry line items on the Transaction Entry form.
  12. If necessary, undo a previously transferred payroll in the event that a correction needs to be made (Activities>Payroll>Undo Transfer to Accounting).

    13. Note: The Undo Accounting Transfer form designates the selected payroll as transferable; it does not change Employee History or other payroll records, nor does it affect the entry originally transferred to Accounting.