Enter employees

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.

Some businesses use third-party processing services to manage payroll. In such cases, there is usually no reason to enable the Employees tab, because individual payroll transactions are not entered in Manager. Instead, lump-sum transactions are entered for each payroll period and individual payroll records are maintained by the outside processor. This can be advantageous when local tax and retirement laws are complex or change frequently.

Enable the Employees tab

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:

Chart of accounts addition

When the Employees tab is enabled, the Employee clearing account is automatically activated. This is a liability account recording amounts owed to (and by) employees in individual subaccounts. This account can be renamed, but not deleted, while the Employees tab is enabled by editing it under Settings Chart of Accounts.

Enter an employee

In the Employees tab, click New Employee:

Complete the entry:

  • Enter the employee’s Name.
  • Code is optional, but may be used for an employee identification number.
  • Address is for the employee’s mailing address
  • Email will be used if payslips are later emailed to the employee.
  • Currency can be selected only if a base currency has been set and a foreign currency has been defined. Payslips for the employee will be denominated in the currency selected, otherwise the base currency.
  • A Division can be selected if the employee works only for one division of the business and divisions have been defined.
  • Control account is available when a custom control account for employees exists. Otherwise, employees are automatically assigned to the Employee clearing account.
  • Starting balance appears only if a start date has been set for the business. 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. The amount must be entered in the currency selected for the employee:

    Select Paid in advance if the employee owes the business money, such as for an employee loan. Select Amount to pay if the employee has unpaid earnings as of the start date. Enter the amount owed or owing as a positive number, regardless of the situation.

Click Create to enter the employee, who will show in the Employees tab listing:

Inactive employees

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 Inactive box.

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