Process Earnings

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Process Earnings

The Earnings window is the first step of the payroll cycle. It is used to record the earnings and deductions of an employee for the current payroll cycle. This information is then used to calculate net pay for the employee as well as the National Insurance contribution, etc. The data recorded here drives the rest of the payroll cycle processing.

Payroll Solution keeps track of the progress of the payroll cycle processing to ensure the integrity of the payroll data. The payroll cycle must be in an OPEN state for earnings data to be recorded.

Note: If this is the first time that you are selecting this option since installing the software or initializing the company, you will be prompted to enter the week ending date for this payroll cycle.

To Record Earnings for the Current Payroll Cycle

1.Select Process, then click Earnings

2.Enter an employee ID or click the Employee ID button to display a list of employees to select from. You may also click the "..." button to select from all employees currently in this payroll batch

The system reads the employee record and fills in the regular hours of the employee along with any additional earnings and deductions which may have been recorded for this employee. This speeds up data entry for a typical payroll cycle

Hours and Earnings

1.The regular hours are filled in by the system. For bi-weekly paid employees the hours are split into week 1 and week 2. You may adjust the hours if needed.

2.NI pay weeks will automatically be filled in as:
1 - for weekly paid employees
2 - for bi-weekly or twice-monthly paid employees
4 - for monthly paid employees
And represent the number of Mondays in the pay period. Adjust as needed.

3.Enter overtime hours, if applicable

Additional Earnings

1.If additional earnings apply to this employee, click the Additional Earnings tab, otherwise skip to step 15

2.Any additional earnings which have been recorded for this employee will already be displayed in the additional earnings table.

3.Click the Add button to apply another additional earning

4.Select an additional earning from the popup list, make a selection and then click OK

5.Depending on the type of additional earning selection, you may be prompted for either an amount or a number of hours worked for this additional earning.
(Use the pre-defined system code SP to assign sick pay, OP to assign other pay, or LOAN to assign or increase an employee loan)

6.If job codes are being used, you will be prompted to assign this to an active job (optional)

7.If this is a bi-weekly paid employee, you will be prompted for the pay week to apply this to, either 1 or 2
If you don't enter a pay week, and this pay code is included in the NI deduction calculation, the amount will be automatically split between the 2 pay weeks

8.To edit any of the entries, click the Edit button, and select the entry you wish to edit from the popup list

9.Adjust the amount or the number of hours as appropriate

10.To delete an entry, click the Delete button and then select the entry you wish to delete and click OK

Deductions

1.If there are any deductions to be recorded for this employee click the Deductions tab

2.Any deductions which have been recorded for this employee will already be displayed in the deductions table.

3.Click the Add button to apply another deduction

4.Select a deduction from the popup list, make a selection and then click OK

Depending on the type of deduction, you may be prompted for a dollar amount.
(Use the pre-defined system code LOAN to record a loan payment, if not already defined as part of the employee record)

5.To edit any of the entries, click the Edit button, and select the entry you wish to edit from the popup list

6.Adjust the amount as appropriate

7.To delete an entry, click the Delete button and then select the entry you wish to delete and click OK

Vacation

1.If vacation pay is being paid to this employee, click the Vacation tab

This page is divided into three types:

• Previously paid vacation taken this pay period (prior)

• Vacation taken this pay period (current)

• Vacation to be taken after this pay period (future)

2.Any previously paid vacation which is applicable to this pay period is displayed, but cannot be edited.
(This is used in the calculation of the insurable pay and NI contributions, and may reduce the insurable wage ceiling for this pay period)

3.Next, you may enter vacation hours that are paid this pay period and were taken this pay period
(This is also used in the calculation of the insurable pay and NI contributions). For example, a single vacation day

4.Finally, enter the vacation pay details for any vacation hours to be taken after this period, which are being paid this pay period, in the table
(The insurable pay and NI contributions are calculated separately for each entry in this table and are added to the current pay period's totals)

5.Enter the week ending date and press the Tab button

6.Enter the vacation hours and press Tab again

7.The system calculates the insurable pay and NI separately for this pay period

8.Repeat for additional vacation weeks

Note: The system will warn you if the vacation hours entered exceed the regular hours for this employee, or if the pay weeks exceed the pay frequency

National Insurance

This tab display a break down of the National Insurance calculations which is particularly beneficial for bi-weekly paid employees and also employees who receive gratuities.

Click the Summary tab and click the Save button to record the earnings record.

To Record Earnings for the Current Payroll Cycle

Hours and Earnings

See Also