Pay employees

This Guide provides instructions on paying employees set up under the Employees tab and whose payroll transactions have been entered in the Payslips tab. It does not address third-party payroll processing.

In Manager, payslips record earnings, deductions, etc. of employees. They do not record actual payments to those employees of amounts owed as a result of payslips. To pay employees, you must enter payments in the Receipts & payments tab. Two approaches can be used, depending on whether the employee is owed for a single payslip, multiple payslips, or expense claims.

Single payslip approach

The simplest situation is paying an employee for whom there is only one outstanding payslip. In the Payslips tab, click View beside the payslip to be paid:

Click New Payment:

A payment entry screen will appear, prefilled with information for paying the employee:

  • Verify or edit the Date.
  • Enter a Reference number if desired. If the box within the field is checked, Manager will automatically assign a Reference by finding the highest existing number and adding 1.
  • Select the bank or cash Account you will pay from.
  • Select Cleared or Pending status if paying from a bank account. Cash account payments are presumed to be cleared immediately, so this field does not appear for them.
  • Payee will be the employee for the relevant payslip.
  • Description can contain summary information for the entire payment.
  • Item should be left blank, as no inventory or non-inventory items are involved in payroll transactions.
  • Account will be prefilled with Employee clearing account and Employee name. Do not change these.
  • Description for the line item is optional, but can be filled with distinguishing information, especially if other items are being added to the payment.
  • Qty should remain blank.
  • Unit price will be prefilled with the amount of the payslip.
  • Tax should normally be left blank, as payments to employees are not taxable in most jurisdictions.
  • A Tracking Code can be selected, if appropriate.

If other items are to be added to the payment, click Add line. When finished, click Create.

Be sure to complete steps in making the payment: write the cheque, enter an electronic direct deposit, or prepare a cash envelope. Remember, the payment form records the transaction; it does not complete it.

Other situations

When there are expense claims or multiple outstanding payslips for an employee, drill down from the Summary page on Employee clearing account by clicking the blue balance:

Either continue using the total balance shown for the employee, or drill down further by clicking the employee’s balance (in this illustration, no other employees have balances):

If you drill down on the employee’s balance, you will be able to see all transactions contributing to it. Whichever path you follow, make note of the amount(s) owed to the employee:

Initiate payment directly in the Receipts & Payments tab. Click New Payment:

Manually complete the entry form, exactly as you would for a single-payslip payment. Post the transaction to Employee clearing account and Employee name. For Amount, enter either the full amount due from Employee clearing account or one contributing amount from the employee’s drill-down listing. If following the second path, click Add line to enter additional contributing amounts.

When all amounts have been entered, the payment total should equal the employee’s balance in Employee clearing account. Click Create to record the payment:

Effect of payment

The payment debits Employee clearing account Employee name and credits the bank or cash account that is the source of funds. If all employees are paid the full amounts owed, Employee clearing account will be reduced to a zero balance.

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