Run Payroll

Payrolls and Pay Runs are maintained and processed from the 'Payroll' tab.

Click on the Payroll tab to see all Payrolls that are available for processing. List view options are 'All', 'Current Year' and 'Recently Viewed (default)'. See Pinning List Views video on how to set a default view.

Hint - to change the default view select the appropriate option from the drop down and click on the pin icon. This will save the default view for your user only.

At a glance the user can see the eligibility and pay frequency for each payroll together with the current period and payroll status. The status will be either New, Retro, Draft or Final. A link also exists to the previous pay run. If this is the first period of the tax year there will not be a 'Last run' link.

Note: a new Payroll can be set up by clicking on the New button above - click on Setting up a New Payroll for further information.

Open the Payroll by clicking on the Payroll ref link or go directly to the Pay Run by clicking on the Current run link.

The header section of the screen provides links to the last and current pay runs. Hover over the link to see a count of eligible employees, pending records etc:

Click on the Pay Run tab to view key dates for the current period. These are created automatically for each Pay Run according to the rules and days or dates selected when setting up the Payroll e.g. last working day of the pay period. These dates can be overwritten on the Pay Run as necessary each pay period.

• Pay period starts: the first day of the pay period

• Pay period ends: the last day of the pay period

• Overtime/timesheet cutoff: Overtime and timesheets approved up to and including this date will normally be included in the current period Pay Run

• Expenses cutoff: Expenses approved up to and including this date will normally be included in the current period Pay Run

• HR changes cutoff: Changes made after this date will be included in a Pay Run only when these are made or confirmed by a member of the Payroll team. Note - there is no payroll rule for HR changes cutoff, date defaults to Pay day but can be overwritten each pay period if appropriate.

• Pay run date: Date the Pay Run is normally processed.

• Payment date: Payment will be made on this day, which may precede Pay Day if Pay Day falls on a public holiday.

• BACS processing day: the day before the payment date. Populated automatically.

• Pay day: The normal Pay Day i.e. does not take account of public holidays. This date is reported on the FPS.

Glossary - Key Dates and Definitions

1. Payroll cutoff day: is the last day each month when changes may normally be made to records before the Company's Payroll is run. The Payroll Administrator should ensure that all data (including new benefits, compensation, processing the joiners and leavers and if required changes to Employee bank details) are gathered and if required approved before this date. Payroll may occasionally be run before the cutoff day - for example, before Christmas in December. When Payroll is run before the cut-off day, an alert is sent to the Administrator to verify Overtime and other time dependent data including new joiners and leavers.

2. Payroll run date: is the date each month when Payroll is actually run. Payroll will not run without this date entered. Enter a date and the run time is set as the actual time for a same-day run, or 23:59 if the run is set for a day in the past.

Calculations for one-off items such as Overtime or Sickness payments are based on this field - the Payroll run includes all the Overtime or Sickness records approved between Payroll run dates of the previous and current months.

When the payroll is run for the very first time, all Overtime records approved between the month start and Payroll run date are included but not any records input for previous months.

3. Effective from. The date from which regular payments - Compensation, Pensions and Benefits - are first paid. Note that if an Employee joins late in the month, after the Payroll run date is finalised, then their unpaid Compensation will be added automatically to the next month's Payroll.

4. Date of award/Payment due. Dates on which One off payments and deductions are awarded, and when they are available to be paid. Note that if the Date of award comes late in a month, after the Payroll run is made final, then the Payment due date can not be set until the start of the following month.

5. Payroll start date: is the first date from which an Employee will be included in the Payroll. An Employee will be included in the first payroll run whose date falls after the Payroll start date. On that date the Employee will be paid for all current Compensation and Regular records, and all One off benefits where a payment would normally be due for the period between the previous final Payroll run date and the period covered by the next payroll run.

Normally Payroll start date will be set through the Joiner process and will be the same as their Start date in the Company, and also the date from which their first Compensation is Effective from. For Employees who join towards the end of a month, after the month's Payroll run date, Payroll start date should be set as the first day of the following month and Payroll will pick up the additional few days' pay with the first full month Payroll.

As an example:

• Suppose an Employee is due to start or starts work on the 26th of November - too late for the November payroll run, which was finalised on the 24th

• Set them up with a Start date of November 26, and a Compensation Effective from the first date when they should be paid, i.e. 26th November, but a Payroll start date in December, e.g. December 1 - before the date of the December payroll run

• The Employee will first be included in payroll in December. At end December, they will be paid in full for all Compensation and Benefits Effective in December and also for the additional 5 days for November 26-30.

6. Leaving date for payroll: determines the last period in which an Employee will receive a payment; the payment will be included in that period's Pay run.

• Suppose an Employee leaves on February 20. He/she may have Commission or Overtime payments which may not be ready in time for the February pay run.

• Salary and benefits will normally stop as at February 20 - the Leaving date - while the Payroll end date may be set some time later - say at March 20, to allow for late payments

• The Employee's final salary and regular benefits will be paid in the February run

• The March payroll run will include any late payments - e.g., any final one off payments or deductions not processed in time for the February run

• The Employee will not be included at all in the April payroll run.

To ensure correct calculations of all the data including late starters, Overtime and sickness, the current month payroll should be run only after making the previous month Payroll status = Final.