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This page allows you to define the required settings for performing a payroll calculation for the current payroll. Note: if you wish to perform multiple payroll calculations at the same time, you must use the Calculations option located under the Employer tab.
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The table displays a historical list of previous calculations including pertinent data such as the pay type along with the pay run's start and end dates. A payroll may be calculated as many times as needed before it is closed. This provides the opportunity for reviewing the pay run details and for other testing purposes. Note: Each time the calculation is performed, the results of the previous calculation are erased and replaced with the new results.
Calculating a Payroll - The common approach is straightforward; you calculate a payroll and then generate the payroll register found in the Reports screen to verify your results. These steps are repeated until the payroll register shows the expected results. This verification step is important because once a pay is closed, it cannot be re-calculated again. If you do find data entry errors or other issues after the pay had been closed, you would need to use either the Unclose or Restore procedures.
The following buttons appear on all program screens - click a button to view its help description. Note: If a button's text appears in a Grey color, the command is not applicable to the current page or its function has already been applied.
Calculate - This button allows you to initiate the payroll calculation process for the active payroll. Selecting the button displays a status indicator as the current pay-sequence is processed.
Backup - This button allows you to create a backup file that contains your complete company database. This includes the payroll, company information, employee information and all the necessary data required to restore you to the last saved program state. Click here to view a detailed description of the Backup command.
Report - This button allows you to create an Interim Payroll Register report so that you can review the current pay run for accuracy, prior to finalizing the run. When you select the button, the program calculates the current pay and the results are then presented in a PDF file. Depending on your browser settings, any of the following three may occur; 1) the PDF file may open in a window for you to view, 2) the file may be sent to your Downloads folder where you can access it for viewing, 3) you may be presented with a window that will prompt you where to save the file.
The Payroll Register report provides a complete description of all calculations performed for each employee, including: Employee Name and Address, Current and Year-to-Date values for Gross Wages, Deductions, Benefits, Current Net Pay, Insurable Earnings, Transfers to bank accounts and Accumulators. The payroll register is assigned a sequential run number. Saved reports should be filed according to this run number. This run number automatically increases by one each time the payroll is calculated and cleared. The run number will revert back to 1 for the first payroll of the new year. The last page of the report provides the accumulated totals for the current payroll, including Earnings, Hours, Deductions, Benefits, Net Payroll Value, and other statistical information.
Note: This button performs that same action as choosing the Generate Report button from the Generate Report column in the main table below.
Checking Balances - Each time the payroll register is created, you can check the balance by adding the current gross earnings to the previous register's year-to-date gross, which should be equal to the current year-to-date gross. This will confirm that your payroll is in order.
Close - This button allows you to finalize the pay sequence by closing the pay. Selecting the button displays a pop-up message notifying you that closing the pay will prevent you from making any further adjustments to this pay. Choose Yes to proceed or No to cancel the close request.
Backup Procedure Required: Before closing a pay, a backup file must be created! This step is required in the event that the close pay procedure encounters an unexpected error. The backup procedure will create a file that will allow you to restore the pay to its current state if required. Refer to the Admin Tools help page for more information on this procedure.
Note: Pay sequences must be closed before you can print cheques or process EFT transactions. This restriction ensures that there are no discrepancies between the values stored in the permanent payroll history file and any disbursements used for the employees' pay. The close process also generates the information necessary to create a Journal Entry report for the payroll.
The following section displays help for the various cells and columns shown in the main table on this screen. If you see a help description here that does not appear on your screen, you can add the additional item to your view by using the "Customize View" button located in the button bar above the main table. Please view the Customize View help page for more help on this feature.
Backup - Select this button to create a backup file that contains your complete company database. This includes the payroll, company information, employee information and all the necessary data required to restore you to the last saved program state. Refer to the description for the Backup button at the top of this help screen for more details (this button performs the same function).
This cell is signifies whether a backup file of the pay run has been created at some point previously (using either the Backup button at the top of the screen or in the table). If a backup has not yet been created for the current pay run, this cell will display a status of No. One a backup has been successfully created, you can change it to Yes by editing the cell accordingly.
This cell shows the name of the user who most recently calculated the pay run (i.e. the user who was active when the procedure was completed). This is useful for audit purposes.
This cell displays the number of times the pay was calculated. All calculation types are included (e.g. Normal, Additional, Reversal, etc.). Pay runs can be calculated as many times as needed with this number having no effect on the final procedure. This cell is uneditable and is generated sequentially by the program after each calculation. It is provided for both audit and training purposes only.
This cell signifies the number of cheques that have been issued to employees. This value will correspond to the number of employees in the current pay run. If no cheques have been issued, this cell will display a value of <none>. This cell is uneditable and is generated by the program.
Use this cell to specify that the year-to-date balances should be cleared when the first pay of the next year is calculated. Editing the cell will display a checkbox where you can specify the two available options: Yes (the year-end balances will be cleared when the first payroll of the new year is calculated) or No (the year-end balances will not be cleared when the first payroll of the new year is calculated). If you do not place a check in this box, the first calculation the new payroll year will generate an error message stating that you need to do so. This clearing action is included as a safeguard to ensure that payroll administrators explicitly clear any year-end balances, as they should, before any payroll is calculated in a subsequent year. Note: This check box is to be used only when you run the first pay of the year. If you attempt to check this check box for any other pay run, the calculation will fail.
About Year-End - Upon calculating the first payroll of a new year, all year-to-date values are reset to zero. You can view the zero values by choosing either the Employee - Y.T.D. Earnings or Employee Y.T.D. Deductions & Benefits menu commands. However, unlike these two aforementioned Employee Y.T.D. menu options, the Employee Y.T.D. Accumulators screen will not show zero values after a closed Final pay because these accumulators act as an ongoing "account" where the values will build up over time until they are disbursed or, if the Carry Forward Year-End Balance checkbox is activated for an associated deduction.
Year-End Tasks - Once the year-to-date values are cleared, you may wish to perform a series of year-end tasks as suggested below:
This cell shows the name of the user who finalized and closed the pay run (i.e. the user who was active when the procedure was completed). This cell is uneditable and is included for audit purposes.
This cell displays the date that the pay run was finalized and closed. This date can differ from the pay period's End Date. This cell is uneditable and is generated by the program after each pay is closed.
This cell shows the name of the user who created the pay run (i.e. the user who was active when the payroll was added). This cell is uneditable and is included for audit purposes.
Use this cell to enter a description of the pay. This is an optional field used for administrative purposes only and does not appear on any reports. For example you can enter "This is the first pay with the new pension deduction" or any other pertinent text.
Use this cell to specify the closing date of the current payroll run. For example, if your company is set up for semi-monthly payrolls (24 per year) and you are in the fourth week of January 2015 (having already ran your first payroll of the year), this cell would shows Jan/30/2015 (i.e. the second semi-monthly pay run of the year ends on the 30th of January).
Generate Report - Select this button to create an Interim Payroll Register report so that you can review the current pay run for accuracy, prior to finalizing the run. Refer to the description for the Report button at the top of this help screen for more details (this button performs the same function).
Lock - Select this button to prevent the current pay run from being calculated. This can be useful in cases where you have multiple users who access the payroll, but one user needs to make important changes without the payroll being affected by another logged in user who is also making changes. For example, you should avoid calculating the payroll while another user is adding new employees to the payroll. In such a case, you would choose the Lock button during the add-employee process, and then unlock the payroll once the employees are added.
Use this cell to enter a message that you would like employees to see on their pay stubs. For example you can type "Please attend our staff party on the 5th of this month".
Use this cell to enter the actual date on which the employees receive their pay (e.g. cheques are distributed or EFT transactions occur) - commonly referred to as "Pay Day". This date is used to determine when payroll liabilities are due, based on deposit schedules. This date also is used to determine when any assigned tax calculation formulas may be applied.
Use this cell to specify the calculation method that will be used when the payroll is calculated. Pay types can be any of the following:
The "Special" Status - Additional, Extra and Reversal pay types will only calculate employees that have their Status set to "Special". This status can be set via the Employee - Status Parameters menu command. The employee's Status setting will remain in force until your manually reset it back to the Active state. Therefore, once a special pay run is calculated and closed, you must remember to return to this screen and reset it accordingly. Leaving their status set to Special will not prevent an employee from being paid on a subsequent Normal pay run, however, the employee could be mistakenly included in a subsequent Special pay run that is created for some other employee.
This cell displays the current pay period, which can be defined as the current time frame for which employees are being paid. For example, if your payroll is set to semi-monthly, this cell will begin incrementing from 1 through 24 throughout the year (24 pays per year). This cell is uneditable and is generated sequentially by the program after each pay is closed.
Additional and Extra Pay Types - In terms of pay periods, there is a notable difference between Additional and Extra pay types. An Additional pay has its values added to the previous Normal pay. An Extra is a pay is calculated in advance of the current Normal pay period and is therefore assigned an incremented Period from that of the current pay. Once the next Normal pay is run, it will be assigned the same Period as the Extra pay.
Restore - Select the button in this column to reload or restore a payroll database file to a previous state. Refer to the description for the Restore button at the top of this help screen for more details (this button performs the same function).
Use this cell to select a pay run that is to be reversed (only previously closed pay runs will appear in the list). A reverse pay procedure is best used in cases where the taxes must be corrected immediately (e.g. an employee has been overpayed). You could also use a reversal pay if an employee has been underpayed (however a better alternative would be to simply add the amount as an additional to their next pay if the employee agrees to this). Note: Reversal pays can only be run for payrolls in the current year.
This cell displays payroll sequence number, a number that is sequentially assigned and increments for every pay calculation regardless of the calculation type. For example, if your payroll is set to semi-monthly, and you calculated only Normal pay types throughout the year (i.e. no other special pay types), the final sequence at year-end would be 24 (24 normal pays per year). Each time you run other pay type (e.g. Additional, Extra, Reversal, etc.), this number increments accordingly. This cell is uneditable and is generated by the program after each pay is closed. This number is for convenience only and can be used to track specific pay runs for historical or review purposes.
Use this cell to specify the beginning date of the current payroll run. This date represents the start of the current period in which employees worked or earned wages. For example, if your company is set up for semi-monthly payrolls (24 per year) and you are in the fourth week of January 2015 (having already ran your first payroll of the year), this cell would show Jan/16/2015 (i.e. the second semi-monthly pay run of the year begins on the 16th of January).
This cell displays the current status of the pay calculation. This cell is uneditable and is generated by the program automatically. A pay sequence's status may be any of the following:
Un-Close - Select this button to revert the effects of the most recently closed payroll procedure. This can be useful if you have closed a pay run then subsequently discovered further changes or errors that need to be adjusted and where another type of pay run is not necessary (e.g. Additional, Extra, Reversal, etc.). This would allow you to revert to the payroll's pre-closed state. If you un-close a payroll, its Sequence number remains the same and is not affected.
Additional Un-Close Procedure Notes
Un-Close Procedure and EFT's - The feature should not be used once the EFT's have been sent out to the various financial institutions. Depending on the situation, it is suggested that you use another pay type and create a subsequent pay run to correct the error(s) instead. For example, if an employee mistakenly did not receive a bonus to which they were entitled, and their bank already received the EFT, you would then create an additional pay to make up the employee's shortfall. Alternately, you could arrange with the employee to have the funds included on their next pay cycle in order to negate the need for an additional pay.
Conversely, if an employee was paid too much and the funds were already sent via EFT, you would have several choices. 1) If the employee had not yet withdrawn the funds, you could contact the banking institution and recall the funds. 2) If the employee had already withdrawn the funds, you could issue a Reversal Pay (to keep the CRA amounts in balance) then notify the employee that their subsequent pay cheque would be issued, less the amount of the overage.
Record Keeping - The Un-Close option does not provide a record of the procedure itself. Therefore, if your company's methodology requires an accurate record of every payroll transaction and its accompanying reason, you may wish to use the pay sequence's Description cell to indicate that the pay run was re-opened (and include a basic reason if necessary).
This cell shows the name of the user who un-closed the pay run (i.e. the user who was active when the payroll was un-closed). This cell is uneditable and is included for audit purposes.
This cell displays the date that the pay run was un-closed. This cell is uneditable and is included for audit purposes.
Unlock - Select the button in this column to unlock a previously locked payroll so that it can be modified or calculated. Payrolls may need to be unlocked in cases where multiple users have access the payroll, but where one user has locked the payroll for a period of time. This button is greyed out if the payroll has not yet been locked.
This cell shows the name of the last user to edit the row for the pay run (i.e. the user who was active when the payroll row was edited). This cell is uneditable and is included for audit purposes.