Employee Payroll Settings: Implementation Activity

In the following implementation activity, you will learn how to create a payroll employee record and specify payroll settings for that employee.

Story

Suppose that a payroll employee record should be created for Anna Johnson, an accountant in the SweetLife company, and the relative taxes, earnings, and other payroll settings need to be specified for this employee so that the necessary deductions and benefits are included in the paycheck calculation.

Process Overview

On the Employees (EP203000) form, you open the employee record and click Create Payroll Employee on the More menu to create a payroll employee record. Then, on the Employee Payroll Settings (PR203000) form, you specify necessary payroll settings for the employee.

System Preparation

Before you start creating a payroll employee record and specifying employee payroll settings, you should launch the MYOB Advanced website and sign in as a system administrator by using the following credentials:

  • Username: gibbs
  • Password: 123

As a prerequisite activity, in the company to which you are signed in, be sure you have completed the Employee Payroll Classes: Implementation Activity.

As a prerequisite activity, in the company to which you are signed in, be sure you have performed the activities in the preceding lessons of this part of the course.

Step 1: Creating a Payroll Employee

To perform a step, do the following:

  1. Open the Employees (EP2030PL) form and click the EP00000013 (Anna Johnson) employee.
  2. On the History tab of the Employees (EP203000) form, which opens, add a row with the following settings:
    • Active: Selected
    • Position: Accountant
    • Start Date: 1/1/2021
    • Start Reason: New Hire
  3. On the form toolbar, click Save.
  4. On the More menu, click Create Payroll Employee.

    As a result, the Employee Payroll Settings (PR203000) form opens, populated with the settings of the Anna Johnson employee.

Step 2: Specifying Required Payroll Settings

To specify the required payroll settings, do the following:

  1. On the General tab of the Employee Payroll Settings form, in the General Info section, do the following:
    1. In the Class ID box, select HOURLY.
    2. Clear the Use Class Default Value check box for the Default Union box, and in the box, select NYS.
  2. On the Tax Settings tab, in the Social Security Number line, specify the employee's SSN in the Value column (for example, 887-56-4321).
  3. In the Summary area of the Payment tab, specify the following settings:
    • Payment Method: DIRDEPOSIT
    • Cash Account: 10200WH
  4. In the Direct Deposit table, add two rows with the following settings:
    Account Number Type Bank Name Bank Routing Number Percent Sequence Gets Remainder
    1565462 Checking Bank of America 125000024 90 1 Cleared
    1562315 Savings Bank of America 125000024 Empty 2 Selected
  5. On the form toolbar, click Save.

Step 3: Specifying the Address Information

On the General tab of the Employee Payroll Settings form, do the following:

  1. In the Address Infosection, specify the following information:
    • Address Line 1: 90 1ST Ave
    • City: New York
    • Country: US
    • State: NY
    • Postal Code: 10009
  2. On the form toolbar, click Save.

Step 4: Importing Taxes

To update the employee's tax details with the relevant taxes based on the work locations and the address specified for the employee, do the following on the Employee Payroll Settings form:

  1. On the Taxes tab, click Import Taxes on the table toolbar.

    As a result, the table becomes populated with the relevant tax details.

  2. On the Tax Settings tab, select the check box in the Value column for the Employee is a resident of the state or location setting.
  3. On the form toolbar, click Save.

Step 5: Defining the Regular Earnings

To define the regular earnings of the employee, do the following:

  1. On the Compensation tab of the Employee Payroll Settings form, enter a row with the following settings specified:
    • Earning Type: RG
    • Active: Selected
    • Pay Rate: 30.00
    • Unit of Pay: Hour
    • Start Date: 1/1/2021
  2. On the form toolbar, click Save.

Step 6: Specifying Deductions and Benefits

To specify deductions and benefits for the employee, navigate to the Deductions and Benefits tab of the Employee Payroll Settings form and do the following:

  1. Add a row with the following settings:
    • Deduction Code: 401K
    • Active: Selected
    • Start: 1/1/2021
  2. Add another row with the following settings:
    • Deduction Code: CHILD
    • Active: Selected
    • Sequence: 1
    • Start: 1/1/2021
  3. For the second row, click Garnishment Details on the table toolbar.
  4. In the Garnishment Details dialog box, which opens, specify the following information:
    • Vendor: Empty

      The system will use the vendor specified for the deduction code on the Deduction and Benefit Codes (PR101060) form.

    • Court Name: Washington Labor Court
    • Document ID: 00003578
    • Court Date: 12/1/2020
    • Original Amount: 5000.00
  5. Click OK to apply the changes and close the dialog box.
  6. On the form toolbar, click Save.

Step 7: Specifying PTO Banks

To specify the PTO banks that the employee will be able to use, do the following:

  1. On the Paid Time Off tab of the Employee Payroll Settings form, which already contains a row for the VLC bank copied from the settings of the selected employee payroll class, add a row with the following settings:
    • PTO Bank: PTO
    • Active: Selected
    • Effective Date: 1/1/2021

      This is the date when the PTO bank becomes effective for the employee and accrual of PTO hours starts. (Usually it is the same date as the employee's anniversary date of employment.)

    Because this PTO bank is not included in the employee payroll class of the employee, the Use Class Default Values check box is cleared and non-editable for this bank.

    Leave the default values for the remaining settings.

  2. On the form toolbar, click Save.

Step 8: Updating Taxes in the System

To update taxes in the system after the payroll settings of all payroll employees have been specified, do the following:

  1. Open the Tax Maintenance (PR208000) form.
  2. On the form toolbar, click Update Taxes.

    Wait until the update process is completed. As a result, the data on the Tax Codes tab of the form is updated. Review the data downloaded from the tax engine and make sure that there are no error messages about missing tax settings.

  3. On the form toolbar, click Save to save new tax information (if any).
  4. On the form toolbar, click Assign Taxes to Employees to assign the relevant taxes to all payroll employees based on their addresses and work locations. Wait until the update process is completed and close the Processing dialog box.