Payrolls

Overview

The Payrolls screen in Core gives you a complete view of all the payroll cycles from the previous pay periods. It allows you to run payroll on the relevant payroll frequencies and pay periods. Based on the current payroll workflow, only submitted or approved time entries and expenses show up here for payroll. If there are additional time and expenses recently approved within the payroll cycle not brought forward here, you are prompted to include or ignore them in the current pay cycle. For example, if John Doe forgot to submit his time entries, you can leave the payroll in the draft mode, have John submit his time, go back to his payroll details and then process it. You can review the employees along with their associated payroll hours, taxes, withholdings and deductions. You need to then approve or unapprove employees from being included in the payroll batch or cycle.

At the end of each pay cycle, the approved time and reimbursable expenses in Core attempt to sync up with the rules of the Core Payroll module (when such entries are present) to generate journal entries required for proper payroll reporting. Because Core Payroll does not require time or expenses to function, this process also allows you to make on-the-fly additions and adjustments, as needed within the Core Payroll modules. While in the process of running payroll, the time and expense entries are locked for payroll and cannot be changed. This prevents employees from performing billing on those entries.

Typically, payroll is processed in a batch through predefined rules and settings. However, there are some cases where it might be necessary to manually create paychecks or process one paycheck at a time. This on-demand, manual paycheck is used to pay an employee or independent contractor outside of the regular scheduled payroll processing. This process might involve reviewing the expected payroll deductions and taxes based on the rules and settings, and then modifying the paycheck, copying a previous paycheck, entering or importing a check received directly from an agency, or making adjustments that can result in a journal entry. If an employee’s labor was distributed across multiple pay items, clients, projects, tasks, resident jurisdictions and work jurisdictions, the paychecks could be generated on-demand. These types of paychecks are referred to as manual paychecks.

The payroll checks can be viewed and printed in the Checks screen. These checks cannot be deleted, voided or memorized. However, they can be cloned, but the cloned checks become normal checks and are no longer payroll checks. 

Field Description

Basic Tasks

Create Payroll

Create Manual Paychecks

View Reports

Advanced Tasks

Process Draft Payroll

Reverse Payroll

View Payroll  Register Report

Show/Hide Columns in Grid

Export Payroll

Apply Filters

Mark Screen as Favorite

 

Field Description

Field Name Field Description
Payrolls > Create Payroll >
Frequency Frequency for which the payroll is to be processed. If your company has multiple pay frequencies, for instance, some employees are paid weekly and some are paid biweekly, you need to select which payroll frequency you are going to run. The default frequency is selected automatically at the time of running payroll, but you can change it
Pay Period Date range representing the pay period for which you are running the current payroll cycle. It shows the start date and end date of the pay period or cycle selected.
Previous Paycheck Date when the last paycheck funds were deposited or made available to be deposited (paychecks).
Payroll Cycle This indicates the counter of the payroll cycle for the current fiscal year, say cycle 3 of this year.
Payrolls > Create Payroll > Detail View >
Total Payroll Cost

This is the total amount an employer has to pay for the employees listed for the pay period. It represents the total gross amount of payroll for all employees. It is calculated in many ways:  

Total Payroll Cost = Net Pay + Employee Deductions + Company Deductions   Total Payroll Cost = Gross Wages + Company Deductions  

Total Payroll Cost = Net Pay + Employee Taxes + Employee Withholdings + Company Taxes + Company Withholdings

Employee Deductions

The amount of payroll or withholding deductions set or contributed by the employees. It displays the total amount out of the Total Payroll Cost that is made up of employee deductions or withholdings.

Employee Deductions = Employee Withholdings + Employee Taxes

Company Deduction

The total amount of payroll or withholding deductions set or contributed by the employer or company. It displays the total amount out of the Total Payroll Cost that the company pays on behalf of the listed employees.

Company Deduction = Company Withholdings + Company Taxes

Net Pay

It displays a sum of the amounts that all the listed employees receive in paychecks. Core computes net pay by subtracting payroll tax withholdings and voluntary deductions from gross pay. The updated net pay is reflected on the paychecks as the payroll check amount.  

Net Pay = Gross Wages - Employee Deductions  

Net Pay = Gross Wages - Employee Taxes - Employee Withholdings

Resource An employee or a vendor who is on the payroll of a company, such as a contract employee or outside consultant.
Salaried

Indicates which resources are paid a salary. In some cases, the HR manager can manually enter the Expected Hours for certain high-level salaried employees who don’t fill out time cards. Their payroll is fixed and is not affected by the number of hours worked.

While employees can be either hourly or salaried, Core Payroll functions such that salaried employees have their standard or expected hours per pay period divided into the salaried amount. In other words, if an employee is salaried at $2,000 per week and expected to work 40 hours a week, the pay rate shows as $100/hour. This is to accommodate the states with the strictest payroll rules, like California. Salaried employees are not eligible for overtime. This means that whether they actually work 20 hours or 60 hours per week, they still get paid the same amount.

PTO Hours

These are the Personal Time Off hours of an employee (or resource), such as Vacation, Sick, Holiday, etc. PTO (Sick, Vacation and Holiday) items are deducted from the default Regular Pay item.

Example: If you get paid $4000 per pay period of 80 hours (Total Hours), but then call in sick, the Regular Pay adjusts with the PTO hours so that the Total Hours remains for the 80 hours. If you change any of the PTO hours, then the Regular Pay changes accordingly.

Default Regular Pay = $4000
Sick + Vac + Hol = $500
Adjusted Regular Pay = 4000 - 500 = $3500

Total Wages = $4000

Total Hours

These are the total hours representing the sum of Regular Hours + Overtime Hours + PTO Hours.

Expected Hours These are based on the employee's Standard Working Hours per week (say 40 hours) multiplied by the frequency of payroll (say every 2 weeks). For a bi-weekly pay period, it would be 80 hours (40 hours x 2). These reflect the hours as per the assigned payroll frequency, not the total hours.
Wages Earned

This represents the pay value of Total Hours based on the rules and calculations defined in the payroll setup. It also includes any payment category or pay item that should be applied to the wages earned, such as bonuses.

PTO (Sick, Vacation and Holiday) items are deducted from the default Regular Pay item. Example: If you get paid $4000 per pay period of 80 hours (Total Hours), but then call in sick, the Regular Pay adjusts with the PTO hours so that the Total Hours remains for the 80 hours. If you change any of the PTO hours, then the Regular Pay changes accordingly.

Default Regular Pay = $4000
Sick + Vac + Hol = $500
Adjusted Regular Pay = 4000 - 500 = $3500

Total Wages = $4000

Expenses These are the reimbursable expenses being paid back to the resource (employee) by the company.
Amount Total pay amount being deducted from the company's bank accounts for this payroll cycle.
Tax Amount This is the sum of all applicable taxes of an employee.
Withholding Amount This is the sum of all the applicable withholdings of an employee.
Total Deduction This is the sum of the Tax Amount and Withholding Amount contributed by the employee.
Company Deduction The amount of withholding deduction set or contributed by the employer or company for the resource/employee.
Company Liability This is the employer's contribution to the insurance premium for the workers' compensation and is calculated as a percentage of the gross pay amount of the employee who is assigned this compensation. It can be different for different employees. If the employee liability is left blank or kept as zero, the entire liability amount is paid by the company. This is applicable in a few states like Washington DC and affects the Total Payroll Cost.
Employee Liability This is the employee's own contribution to the insurance premium for the workers' compensation and is calculated as a percentage of the gross pay amount of the employee who is assigned this compensation. It can be different for different employees and is deducted from the employee payroll besides the company liability. If it is left blank or kept as zero, the entire liability amount is paid by the company. This is applicable in a few states like Washington DC and affects the Total Payroll Cost.
Include Indicates if the resource is to be included in the current payroll cycle. Only rows with the selected check box are processed for payroll.
Payrolls > Create Manual Paycheck >
Resource An employee or a vendor who is on the payroll of a company, such as a contract employee or outside consultant.
Frequency Frequency for which the payroll is to be processed. If your company has multiple pay frequencies, for instance, some employees are paid weekly and some are paid biweekly, you need to select which payroll frequency you are going to run manually. The default frequency is selected automatically at the time of running payroll, but you can change it.
Pay Period Date range representing the pay period for which you are running the current payroll cycle. It shows the start date and end date of the pay period or cycle selected.
Previous Paycheck Date when the last paycheck funds were deposited or made available to be deposited (paychecks).
Payroll Cycle This indicates the counter of the payroll cycle for the current fiscal year, say cycle 3 of this year.
Payrolls > Create Manual Paycheck > Detail View >
Pay Date Date on which the employee gets the pay check. This date is not editable.
Wages: Pay Item The primary pay code applicable to the employee or resource. It is retrieved from the Payroll Lists > Pay Items. E.g., Regular Pay, Bonus, etc.
Resident Tax The state of residence of the employee for tax purposes. Core automatically uses the tax codes applicable to the employees based on their state of residence. You need to assign the code to the employee first on the Taxes tab before it is visible here.
Work State The state where the company is located. Core automatically uses the tax codes applicable to the employees based on their company location. It is auto-populated if the company address is mentioned.
Hours/Units The standard working hours of an employee per pay period. These represent the payroll hours for the employee or resource. In case of recurring payments, Core displays only the amount and not the hours-rate.
Pay Rate For an hourly position type, this is the default hourly pay rate set. For a salaried position, it is the annual salary divided by the number of pay periods in a year. In case of recurring payments, Core displays only the amount and not the hours-rate.
Amount

The gross amount payable to the employee per pay period. It is calculated as: Pay Rate x Hours. In case of recurring payments, Core displays only the amount and not the hours-rate.

PTO (Sick, Vacation and Holiday) items are deducted from the default Regular Pay item. Example: If you get paid $4000 per pay period of 80 hours (Total Hours), but then call in sick, the Regular Pay adjusts with the PTO hours so that the Total Hours remains for the 80 hours. If you change any of the PTO hours, then the Regular Pay changes accordingly.

Default Regular Pay = $4000
Sick + Vac + Hol = $500
Adjusted Regular Pay = 4000 - 500 = $3500

Total Wages = $4000

Withholdings: Withholding Name of the withholding code or deduction. It is applied to the employee's payroll and is retrieved from the Payroll Lists.
Amount The total amount of withholding or deduction set for the payroll cycle. It can includes both the employee contribution as well as the company contribution.
Taxes: Tax The tax codes are retrieved from the Payroll Lists. This is the actual, non-editable tax code that displays on various reports as expected by various agencies in USA.
Amount Amount of tax calculated for the payroll cycle. This tax amount along with the withholdings is deducted from the gross pay amount to get the net pay amount.


Create Payroll

While creating employee paychecks, you can include or exclude time entries to the payroll.

To create an automatic payroll:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.
    2. In the list view, click Create New > Payroll on the top-right.
    3. On the Create Payroll dialog, enter the required information:
      • Frequency: Frequency for which the payroll is to be processed. If your company has multiple pay frequencies, for instance, some employees are paid weekly and some are paid biweekly, you need to select which payroll frequency you are going to run. The default frequency is selected automatically at the time of running payroll, but you can change it.
      • Pay Period: Date range representing the pay period for which you are running the current payroll cycle. It shows the start date and end date of the pay period or cycle selected.
    4. In the detail view, the employees or resources to be included in the payroll are listed in the grid. You can select them and click Actions > Include or Exclude, depending on whether you want to include or exclude them in the current payroll cycle.
    5. Check the Pay Date (Date on which the employee gets the pay check.).
    6. If everything looks accurate, click Process and choose one of the options:
      • Draft
      • Draft & Preview
      • Final
      • Final & Preview

When the payroll is being processed, employer contributions to voluntary deductions and employer-side payroll tax obligations are calculated along with the employee gross to net pay. Core computes net pay by subtracting payroll tax withholdings and voluntary deductions from gross pay. The updated net pay is reflected on the paychecks as the payroll check amount.
  
Net Pay = Gross Wages - Employee Deductions
  
Net Pay = Gross Wages - Employee Taxes - Employee Withholdings) .

If withholding is of type Wage Garnishment, then Core deducts it from Disposable Wages based on a hierarchy. Example:

Gross Wages = 4000 and Disposable Wages = 3000

Child Support = 30%

Credit Card Debt =30%

Other Debt = $200

Child Support 3000 - 30% = $900 Remaining = $2100

Credit Card Debt 3000 - 30% = $900 Remaining = $1200

Other Debt $1200 - $200 = $1000

Net Pay = $1000

Agency payables are generated along with the employee gross to net pay. These actions run in the background during the process. The payroll record displays on the main grid with the relevant status. When processing the payroll for an employee with multiple pay items, Core displays multiple line items in the payroll details, but in case of manual paychecks, it merges the multiple pay items into a single line item. You can preview the Payroll Register report for detailed wages, taxes and withholdings.

Create Manual Paychecks

Manual paychecks can be created for employees one at a time.

To create a manual paycheck:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.
    2. In the list view, click Create New > Manual Paycheck on the top-right.
    3. On the Create Manual Paycheck dialog, enter the required information:
      • Resource: An employee or a vendor who is on the payroll of a company, such as a contract employee or outside consultant.
      • Frequency: Frequency for which the payroll is to be processed. If your company has multiple pay frequencies, for instance, some employees are paid weekly and some are paid biweekly, you need to select which payroll frequency you are going to run manually. The default frequency is selected automatically at the time of running payroll, but you can change it.
      • Pay Period: Date range representing the pay period for which you are running the current payroll cycle. It shows the start date and end date of the pay period or cycle selected.
    4. Click Create Paycheck.
    5. On the Create Manual Paycheck screen, check the Pay Date (Date on which the employee gets the pay check. This value is not editable.).
    6. Under Wages, click Add and enter the required information in the top row of the grid:
      • Pay Item: The primary pay code applicable to the employee or resource. It is retrieved from the Payroll Lists > Pay Items. E.g., Regular Pay, Bonus, etc.
      • Resident Tax: The state of residence of the employee for tax purposes. Core automatically uses the tax codes applicable to the employees based on their state of residence. You need to assign the code to the employee first on the Taxes tab before it is visible here.
      • Work State: The state where the company is located. Core automatically uses the tax codes applicable to the employees based on their company location. It is auto-populated if the company address is mentioned.
      • Hours/Units: The standard working hours of an employee per pay period. These represent the payroll hours for the employee or resource. In case of recurring payments, Core displays only the amount and not the hours-rate.
      • Pay Rate: For an hourly position type, this is the default hourly pay rate set. For a salaried position, it is the annual salary divided by the number of pay periods in a year. In case of recurring payments, Core displays only the amount and not the hours-rate.

      Note: In case of an hourly employee with time entry required, Core does not fetch the employee pay item rate and hours, but only the required time entries.

    1. Click Done. Add more wage line items, as needed.
    2. If anything changes, you can click More > Recalculate Wages to get the updated wages.
    3. Under Withholdings, click Add and enter the required information in the top row of the grid:
      • Withholding: Name of the withholding code or deduction. It is applied to the employee's payroll and is retrieved from the Payroll Lists.
      • Description
      • Amount: The total amount of withholding or deduction set for the payroll cycle. It can includes both the employee contribution as well as the company contribution.
    4. Click Done. Add more withholding line items, as needed.
    5. If anything changes, you can click More > Recalculate Deductions to get the updated withholdings.
    6. Under Taxes, click Add and enter the required information in the top row of the grid:
      • Tax: The tax codes are retrieved from the Payroll Lists. This is the actual, non-editable tax code that displays on various reports as expected by various agencies in USA.
      • Description
      • Amount: Amount of tax calculated for the payroll cycle. This tax amount along with the withholdings is deducted from the gross pay amount to get the net pay amount.
    7. Click Done. Add more tax line items, as needed.
    8. If anything changes, you can click More > Recalculate Taxes to get the updated taxes.
    9. If everything looks accurate, click Process and choose one of the options:
      • Draft
      • Draft & Preview
      • Final
      • Final & Preview

When the payroll is being processed, employer contributions to voluntary deductions and employer-side payroll tax obligations are calculated along with the employee gross to net pay ( Core computes net pay by subtracting payroll tax withholdings and voluntary deductions from gross pay. The updated net pay is reflected on the paychecks as the payroll check amount.
  
Net Pay = Gross Wages - Employee Deductions
  
Net Pay = Gross Wages - Employee Taxes - Employee Withholdings) .

If withholding is of type Wage Garnishment, then Core deducts it from Disposable Wages based on a hierarchy. Example:

Gross Wages = 4000 and Disposable Wages = 3000

Child Support = 30%

Credit Card Debt =30%

Other Debt = $200

Child Support 3000 - 30% = $900 Remaining = $2100

Credit Card Debt 3000 - 30% = $900 Remaining = $1200

Other Debt $1200 - $200 = $1000

Net Pay = $1000

Agency payables are generated along with the employee gross to net pay. These actions run in the background during the process. The payroll record displays on the grid with the relevant status. When processing the payroll for an employee with multiple pay items, Core displays multiple line items in the payroll details, but in case of manual paychecks, it merges the multiple pay items into a single line item. You can preview the Payroll Register report for detailed wages, taxes and withholdings.

View Reports

To view a report:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.

    1. In the list view, click More > View Reports.

    2. Select a report from the Report List dialog. It opens in the viewer.

    3. Preview the report and then choose to export or print it.

Process Draft Payroll

If you have processed the payroll in the draft mode, then you need to finalize it later.

To process a draft payroll:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.
    2. In the list view, select a payroll record with the Status 'Draft' and click  to select Process Final.

When the payroll is being processed, employer contributions to voluntary deductions and employer-side payroll tax obligations are calculated along with the employee gross to net pay ( Core computes net pay by subtracting payroll tax withholdings and voluntary deductions from gross pay. The updated net pay is reflected on the paychecks as the payroll check amount.
  
Net Pay = Gross Wages - Employee Deductions
  
Net Pay = Gross Wages - Employee Taxes - Employee Withholdings) .

Agency payables are generated along with the employee gross to net pay. These actions run in the background during the process. The payroll record displays on the grid with the new 'Final' status.

Posting the payroll posts the transaction externally to the bank and the paychecks are digitally deposited into the employee or vendor accounts, if set up in their profiles. If you post the payroll, you cannot edit or reverse it.

Reverse Payroll

Core allows you to reverse a payroll cycle as long as it is not final and posted. However, you cannot reverse a payroll if the associated withholding liabilities have been paid to the payroll agencies. After reversing the payroll, you are able to delete the payroll checks.

To reverse a payroll cycle:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.
    2. In the list view, select a payroll record on the grid and click  to select Reverse.

The payroll record is deleted and disappears from the grid. You cannot track this record in the company data file.

View Payroll Register Report

You can preview a Payroll Register report to see the payroll details of each employee.

To do so:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.
    2. In the list view, select a payroll record on the grid and click  to select Payroll Register Report.
    3. It opens in the viewer. Preview the report and then choose to export or print it.

Show/Hide Columns in Grid

You can configure the fields or columns that appear on the grid in the list view. You can hide or show columns, and sort the order of columns according to your requirements.

To do so, watch this video or follow these steps:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.
    1. In the list view, click More > Show/Hide Columns on the action bar.
    2. Select or un-select the column names in the drop-down list, say Status.
    3. Next, click the column name you want to sort the data by, say Start Date.
    4. Click once for ascending order ( A-Z) and twice for descending order ( Z-A).

Note: You can resize the column widths on the grid and then reset them, if needed (More > Reset Column Widths).

Export Payroll

In Core, you can export the payroll to the Comma Separated Values file format. Core exports data from all available columns and not just the columns visible in the grid.

To export payroll records to a .CSV file, watch this video or follow these steps:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.

    2. In the list view, click More > Export as CSV.

    1. A .csv export file is created and saved on your system at the default download location, say your desktop. Click to open the spreadsheet.

Apply Filters

To view selective data on the grid, watch this video or follow these steps:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.

    1. In the list view, click  on the right.

    2. On the Filters panel, select a filter from the drop-down and specify individual records or range.

    3. Click Add Filters to specify more filters.

    4. When you have finished, click Apply Filter . You can see selective data now.

    5. In the list view, you can remove the individual filters by clicking  on each. To disable applied filters temporarily or remove all filters, click next to the Filters icon and select Disable Filters or Clear All, respectively.

Mark Screen as Favorite

You can mark or flag the most-often used and important screens in Core as your favorites up to a maximum of ten. These favorite screens then display separately on the side menu under the Favorites list. You can manage all your favorite screens in Core from User Preferences.

To mark this screen as your favorite, watch this video or follow these steps:

    1. Open the Payrolls screen from the side menu > Payroll > Process Payrolls.

    1. In the list view, click  on the top-right.

    2. You can access this screen from the side menu under Favorites.

Was this article helpful?
0 out of 0 found this helpful