Timesheet Entry is where you do most of the work in iPayroll, actually entering the details to pay each person. Hopefully you have set up your Timesheet Templates so you are only entering the transactions that change each pay.
From here you can quickly:
- Change or delete a timesheet, just by selecting the person.
- Call up a person's Payslip - on the spot, without 'running a pay'!
- See the Hours Worked and Gross Pay for a person or for the entire payroll.
- View more detailed reports - Hours Worked, Payroll Summary and Transaction List.
- Upload Timesheet - This is where you can ease your data entry and use the spreadsheet upload option.
- Add people to this payroll, by pressing the button at the top right hand side of the list.
- Delete - Delete all nil timesheets from the payroll
- Global Payslip Message - Add a message to all payslips
Follow these simple instructions:
- To see a person's timesheet, select the person’s name or pen in the list to update the timesheet. If the person doesn't appear on the list, select “Add Timesheet”.
- To Change an existing transaction in the timesheet, select the line you wish to change.
- To Add a new transaction to the timesheet, enter the Quantity in the green box above, select a Payment / Deduction from the drop-down list and press the Add button.
- To Delete the entire timesheet, press the Remove this Timesheet button (which is displayed under the timesheet, on the timesheet entry page).
It is important to remember that when you are changing a person's timesheet within a payroll that it does not effect their Timesheet Template.
- To make a change for this payroll only, change the timesheet from the Enter Timesheet page.
- To make a change for all future pays after this payroll, change the Timesheet Template only.
- To make a change for all future pays including this payroll, change both the Timesheet Template and Current Timesheet.
Alternatively change the Timesheet Templates before you Open the payroll.
If you are using the 'Leave Request' system to record leave, the approved recorded leave requests each employee has taken within the paid-up-to-date will automatically appear on their timesheet after you open the payroll.
To get back to the total list of employees you are paying, at any time just go back to “Payroll” -> '2.Enter’.
When adding payments or deductions, select to change a cost centre if the transaction needs to be debited from a different account to the person’s default home cost centre on their 'Personal Details’.
- If you need to override the person’s pay rate as a one off, you can input a rate in the box before the Add button.
- To change any of the elements of pay on a timesheet, just click on that line transaction name to change it or delete it.
- Under the 'Setup' menu, you can add new Pay Elements if they don't already show as an option.
Bonus payments can either be processed as part of a person's normal payroll, or as a separate one-off payroll.
Bonus payments that you make irregularly, such as Christmas bonuses, are taxed at the lump sum rate.
To make a Bonus payment, add a BON - Bonus transaction to the person's timesheet. Typically use a Quantity of 1.00 and enter the amount of the bonus into the Rate field.
When people receive a back-dated pay increase, they are entitled to a "Backpay" to pay the extra money owed to them.
To calculate a Backpay, enter a "BACKPAY" transaction on the person's timesheet. A special calculator will be displayed.
Backpay Calculator Instructions
- Enter the date to back pay from then the date to backpay to (do not include the current pay if you have updated the person’s payrate. This will calculate the number of hours to backpay according to the date range and the person’s full time hours on their Personal Details, or override the “Hours” field and use the person’s Payroll History to calculate this figure if the person works various hours. You may need to calculate the backpay overtime rates separately if they are paid a higher rate of pay.
- Enter the appropriate old and new rates.
- Press the "Insert" button.
- When finished, press the 'Save' button.
Tax on Backpay
Backpays are calculated using the Extra Pay (Emolument) tax calculation, as they are a lump sum paid additionally to a person's usual pay. If you want to see the tax calculations applied to the backpay, select the 'Calculation Details' link in the timesheet menu.
You can advance a pay to a person, simply by entering the appropriate transactions into the person's timesheet. Advances occur in many situations:
When advancing money, there are two important steps to follow:
1. Change the Paid To Date
Change their Paid To Date, so they do not receive the money again. Note: This happens automatically when finishing a person.
2. Adjust the Tax Calculation
Adjust the tax calculation, to deduct the correct PAYE.
Select the PAYE transaction on the person's timesheet.
Change the Quantity to be the number of pay periods that are being advanced.
Press the Change this Transaction button.
- Click on the This Pay To date (displayed below the person's timesheet when you are entering timesheets).
- Enter a new Paid To Date (or select a date from the calendar).
- Press the Change Paid Up To Date button.
- The person will no longer be paid until this date passes. (The person’s Timesheet Template will not be copied over when opening a payroll, but you can still Add a Timesheet if you do need to make any payments before this date).
- When an employer agrees to advance a person’s future earnings.
- When an employer agrees to advance annual leave at the start of the leave (e.g. when the person is going on an overseas trip and has asked for some money in advance).
- When a person finishes and receives their final pay — they may have time in lieu or annual leave to be paid on their last day.
- The correct tax will now be calculated. If this step is not performed, the person may be taxed too much as their earnings for this pay will be higher than usual.
To produce a Final Pay for a person:-
1. Select the person from 2.Enter Timesheets.
2. Select the submenu "Final Pay".
3. Enter their Finish Date and press the "Add Final Pay" button.
Final pays are always processed in a payroll, just like any other payments. Depending on when the person is finishing, you have several options.
- If the final pay is to be made on the same pay day as your normal payroll, include the final pay with your usual payroll.
- If the final pay is to be made after your normal pay day, process and confirm your normal payroll as usual. Then open a one-off payroll to calculate the final pay.
- If the final pay is to be made before your normal pay day, and you haven't started your normal payroll, open a one-off payroll to calculate the final pay. Then you can process and confirm your normal payroll as usual.
- If you have a "sudden" termination, and you have to make up a final pay, but are in the middle of processing your normal payroll for a later payday, you will have to do a manual payment.
Process the person's final pay within the normal payroll you are working on.
- Change the person's remaining pay transaction (the very last entry on their timesheet) to CHEQUE. (This will remove the person's pay from the banking schedules, ensuring that the person isn't paid this amount in the normal banking).
- Manually pay the person their final pay, either via a cheque or by transferring the money into their bank account yourself (i.e. not through our services).
Bonus payments that you make irregularly do not accrue holiday pay, such as Christmas bonuses, are taxed at the lump sum rate and can be entered on a person's timesheet using the BON - Bonus (Irregular) code.
Bonus payments that you make regularly, such as production or monthly bonuses, are taxed normally, and are liable for Holiday Pay. These can be entered on a person's timesheet using the BON2 - Bonus (Regular) code.
Expense reimbursement payments are to compensate people for on-the-job expenses, are non-taxable. They can be entered on a person's timesheet using the EXP - Expenses Reimbursement code.
See Reimbursing allowances on the Inland Revenue website for more information
Reinstating a Person
A person who has returned to work, or has been finished in error can be reinstated.
Go to the Person's "Reinstate" submenu, within the People Menu, and press the "Reinstate Person" button.
Review the Person's Personal Details page, updating information as required. e.g. the person may now have a different bank account, if they left some time ago.
Review the Person's Leave Balances page.
If you have made a manual payment to a person, you must record the details in your payroll.
It is vital that your payroll records are complete and accurate. If you make payments outside of the system, and don't record the details, your tax, leave, costing and other records can all be wrong.
If you have made a payment to a person that isn't recorded in the system:
- Open a one off payroll.
- Record the details of your manual pay on the person's timesheet.
- Check and adjust the calculations so that the correct values are calculated. (In particular, check the tax calculation. Override the figures we calculate if you have deducted different figures in your manual payment).
- Remove any deductions or standard hours from the timesheet that don't apply.
- Change the person's remaining pay transaction (the very last entry on their timesheet) to CHEQUE. (This will remove the person's pay from the banking schedules, ensuring that the person isn't paid this amount a second time).
- Review your Cheque Schedule and double check that the amount here is the same as your manual payment.
- When this payroll is confirmed and closed, all records will be updated to include details of your manual payment. By changing the person's timesheet to a CHEQUE, no banking files will be created. Obviously you will not actually draw a cheque, as you will have already paid the person.
Tip - Use iPayroll® to make all payroll payments to your staff, instead of making manual payments and recording the details later. This saves time, duplicated effort and the potential for inconsistencies.
You can easily open a one off payroll and process a one-off payment, instead of making up a manual pay.
Overpayments and Recovery
If you have overpaid a person, and wish to recover money from them, follow these steps.
- Record details of the overpayment, to correctly adjust payroll, year to date, tax and leave records.
- Recover any money overpaid to the person.
Record Details of the Overpayment
- Open a one off payroll.
- Re-enter the transactions that were overpaid, using a negative value for the quantity. (e.g. if you overpaid 3 hours T1.5 last pay, enter -3.0 T1.5 this pay).
This will correctly reverse out the overpayments, and recalculate the correct tax adjustments etc. The resulting pay for this person will be negative, and details will be shown on your Overpayment Schedule.
While the person's pay records are now updated, you will still have to recover the money that was overpaid.
Recover any Money
Sometimes the person overpaid will repay the money themselves, for example they may provide a personal cheque for the amount they were overpaid. Then you do not have to do anything special to recover the money — just follow the steps above to record details of the overpayment.
In other circumstances, you may come to some arrangement to recover the overpayment from the person, Typically they agree to repay a regular amount out of their pay until the overpayment has been fully repaid.
In that case, you can set up a Reducing Balance Deduction on their Timesheet Template. This will automatically recover the overpayment at the agreed amount, and automatically stop when the overpayment has been fully repaid.
To recover money via a reducing balance deduction:
- Select the Person from your People.
- Go to their Timesheet Template
- Add an ORG deduction.
- Enter the per pay repayment amount in the Rate field.
- Enter the total amount to recover in the Balance field