Employees in Manager are persons for whom the business will record payroll transactions. Individuals must be set up as employees before payslips can be issued to them. Employees are also eligible to submit expense claims, even if they are not specifically defined as expense claims payers and do not have a capital account. (See another Guide for more information about expense claims.)
Local laws usually govern who is considered an employee. Even when a regular amount is paid to them, some individuals might need to be treated as partners (with capital accounts), sole traders/proprietors (with equity accounts), or subcontractors. The key factor in deciding to enter a person as an employee is usually whether their compensation can be considered a wage expense under local law and accounting regulations.
Before an employee can be entered, enable the Employees tab. Below the left navigation pane, click Customize. Check the box for Employees, and click Update below the list:
Three accounts are activated automatically when the Employees tab is enabled:
These accounts can be renamed but not deleted while the Employees tab is enabled. Rename them by editing under Settings Chart of Accounts.
In the Employees tab, click New Employee:
Complete the entry. Most fields are self-explanatory. All except
Name are optional:
Email address will be used if payslips are later emailed to the employee.
If making a transition to Manager’s payroll management from another accounting or payroll system, employees may have balances owed to them or owing to the business. If so, check the
Starting balance box. Several new fields will appear:
Click Create to enter the employee, who will show in the Employees tab listing:
When employees terminate employment and will no longer be paid, you can remove them from lists by making them inactive. In the Employees tab, click to Edit the employee and check the box:
Click Update and the employee will not appear in active lists.
If the employee ever returns to active status, scroll to the bottom of the employees list, where you will see the employee’s name in light grey text with strike-through markings:
Edit the employee and uncheck the