Pay runs

Open in the demo

Monthly payroll: approve the run to post wages and liabilities, pay net wages, then pay the tax and pensions you owe.

Find it under HR Payroll. Payroll is on the Scale plan, and running it needs an Owner or Admin.

The monthly cycle

Create pay run for the next period of the selected company. People who joined part-way through the month are paid pro rata.
While the run is a draft, open each employee’s payslip to add days or hours worked, commission, overtime hours and bonus.
Submit for approval. Every pay run needs an Owner or Admin other than the person who prepared it.
Approval posts the run (see below).
Record wages paid when net pay leaves the bank.
Record tax payment when you pay the tax and pension contributions.

Pay day is the 25th of the month, or the working day before when the 25th falls on a weekend. Each run shows a timeline: draft created, submitted, approved and posted, net pay sent, taxes and pensions remitted.

What each step posts

Step	Debit	Credit
Approve pay run	6000 Gross wages, 6010 Employer costs	2200 Payroll liabilities, 2210 Wages payable
Record wages paid	2210 Wages payable	Bank
Record tax payment	2200 Payroll liabilities	Bank

Employer tax and pension rates are set in Settings General.

Deleting or cancelling a pay run

Use the Actions box on the pay run. Every cancellation asks for a reason, which is shown on the pay run and kept in the audit trail.

Delete draft removes a draft that hasn't been submitted. Nothing was posted. A run waiting for approval is recalled first.
Cancel tax payment and Cancel wages payment take a payment recorded by mistake off the ledger and the bank statement. The taxes, or the net pay, show as due again.
Cancel pay run posts a journal that reverses the run, dated with the run, so the month's payroll comes to nil. The run stays on record as Cancelled, and the month comes up again when you create the next pay run. Cancel any payments first.

Nothing in a locked period can be cancelled; correct it with a manual journal instead.

Payslips

On a pay run, click an employee's name to open their payslip: earnings, deductions, net pay and the year to date, with your logo and company details. While the run is a draft, fill in This month there: days or hours worked for daily and hourly staff, commission, overtime hours and bonus. Approved unpaid leave is taken off automatically. Print payslip prints it as it looks on screen; Print all payslips on the pay run prints everyone's, one per page. Emailing payslips is coming soon.

Wages and taxes for a month can be recorded from the first day of that month. When you record them, choose the method, the account paid from, the date, an optional reference and any bank charges. Payroll taxes can also be paid by cheque; the cheque is kept in Banking Cheques until the bank pays it.