Payroll Basic Configuration: General Information

This topic provides a general overview of the configuration tasks that you have to perform before you can proceed with the initial configuration of the payroll functionality in MYOB Advanced. Also, this topic describes the recommended configuration steps for the payroll functionality.

Learning Objectives

In this chapter, you will do the following:

  • Review the tasks that must be done for the initial configuration of an MYOB Advanced instance
  • Enable the necessary feature
  • Create numbering sequences for the payroll entities
  • Specify payroll preferences

Applicable Scenarios

You configure the payroll functionality in the following cases:

  • You initially implement MYOB Advanced and the Payroll feature is included to your license.
  • You need to configure payroll in a previously configured fully functioning environment.

Prerequisites

To prepare the system for the implementation of payroll, you perform the following general steps:

  1. You prepare an instance of MYOB Advanced for further implementation by enabling the default set of features, activating the product license, and configuring system-wide security policies. For details, see Preparing an Instance for Implementation.
    Tip: Make sure that the license for MYOB Advanced includes the Payroll feature.
  2. You complete the initial system configuration and implement the minimum general ledger before you implement payroll. The payroll functionality is tightly integrated with other MYOB Advanced functional areas, including general ledger, accounts payable, and organization structure. These areas do not require any change in their configuration when payroll is implemented; however, the functionality to be integrated with payroll should be implemented before payroll. For details, see Company Without Branches.
  3. The following entities have to be defined in the system:
    • The numbering sequences to be used to numerate documents generated by payroll. We recommend that you use specific naming conventions for numbering sequences to differentiate payroll documents from other documents generated in the system. For details about numbering sequences, see Use of Numbering Sequences.
    • The expense and liability accounts and subaccounts to be used by default for recording the following:
      • Earnings: An expense account that will be used to record earnings.
      • Deductions: A liability account that will be used to record deductions from employee paychecks.
      • Benefits: An expense account that will be used to record benefits to employee paychecks and a liability account to off-set the benefit expense account.
      • Taxes: An expense account that will be used to record taxes and a liability account to off-set the tax expense account.

      You review the existing chart of accounts and add missing accounts (if needed) by using the Chart of Accounts (GL202500) form.

    • Vendors to be used with payroll, such as tax agencies, benefit providers and unions. For details about vendor configuration, see Vendors: General Information and Tax Agency: General Information.
    • The departments and positions that are used in your organization. You can configure the organizational structure by using the Departments (EP201500) and Positions (EP201000) forms.
    • The work calendar that reflects the work days, work times for each day, and unpaid break time of the employees that are involved in payroll. You define this calendar by using the Work Calendar (CS209000) form.
    • The employees to be defined as payroll employees. You maintain the list of employees employed in your organization by using the Employees (EP203000) form.

After all prerequisites have been met and the necessary entities have been created, you can start implementing the payroll functionality in the system.

Workflow of the Payroll Implementation

To implement the payroll functionality, you perform the following general steps:

  1. On the Enable/Disable Features (CS100000) form, you enable the Payroll feature with either US Payroll or Canadian Payroll selected.
  2. On the Payroll Preferences (PR101000) form, you specify the general settings of payroll, such as the numbering sequences, the posting and account settings, and the exceptions for transaction dates. After you have performed this basic configuration, you can start setting up payroll entities and using the payroll functionality. For an example of basic configuration, see Payroll Basic Configuration: Implementation Activity.
  3. On the Payment Methods (CA204000) form, you make sure that the payment methods to be used to generate paychecks for an employee are defined and set up for the use in payroll; also, a cash account that can be used in payroll must be specified for each payment method. If your employees receive direct deposits, you need to configure a direct deposit payment method as well. For details, see Payment Methods: To Set Up a Payment Method for Use in Payroll
  4. If time tracking in payroll is planned, you perform a basic configuration of the time reporting functionality. For an example, see Time Tracking: Implementation Activity.
  5. If the organization's employees work different shifts, you set up shift differentials in the system. For details, see Shift Codes: Implementation Activity.
  6. On the Work Locations (PR101040) form, for each location where work is to be performed, you enter all the address information through the postal code. For an example, see Work Locations: Implementation Activity.
  7. On the Tax Maintenance (PR208000) form, you download the latest tax information from the Tax Symmetry engine so that the system will create tax codes related to all employee addresses and work locations stored in the system. On the Tax Codes tab of the form, for each tax, you specify a vendor (tax agency), default attribute settings, and general ledger accounts. On the Company Tax tab, you specify the settings linked to the taxes at the company level. For details, see Taxes: Implementation Activity.
  8. On the Earning Type Codes (PR102000) form, you set up earning types. For the predefined earning types, you need to make sure that the settings are specified in the way that suits your organization's needs. Also, if you want a particular earning type to be always assigned to a specific project, you can set it up on this form. For details, see Earning Types: Implementation Activity.
  9. On the Payroll Preferences (PR101000) form, you specify earning type preferences. On the General tab, in the Miscellaneous Settings section, you need to define the earning codes used for the creation of payroll batches when the quick pay process is used. For more information, see Earning Types: Implementation Activity.
  10. On the Workers' Compensation Codes (PR209800) form, you create workers' compensation codes. For details, see Workers' Compensation Codes: Implementation Activity.
  11. On the Deduction and Benefit Codes (PR101060) form, you set up deduction and benefit codes. You can set up each deduction and benefit code to be only a deduction, only a benefit, or both a deduction and a benefit. Also, you can specify if it is subject to all taxes, no taxes, or specific taxes, in which case you need to add the taxes that it is subject to. For health care related benefits, you will be able to set up the information related to the ACA reporting to populate the information on the ACA Reporting tab. If you want to associate deduction and benefit codes with workers' compensation codes, you should create one deduction and benefit code for each state. For an example, see Deduction and Benefit Codes: Implementation Activity.
  12. On the Union Locals (PR209700) form, you configure the unions the employees are part of. Different earning rates can be applied to different ranks inside a union and the specific benefits and deductions can be specified on this form to be added to paychecks. For details, see Unions: Implementation Activity.
  13. If you use Acumatica ERP Construction Edition, on the Certified Projects (PR209900) form, you can set up the payroll-related information for government-linked projects. Different earning rates can be applied to different types of labor, specific benefits and deductions can be added, and a fringe benefit rate can be specified on this form to be used in the paycheck calculation.
  14. On the Overtime Rules (PR104000) form, you set up overtime rules. To use this functionality, you need to have earning types with the Overtime option selected in the Earning Type Category box on the Earning Type Codes (PR102000) form. For such earning types, you can configure a list of overtime rules to be applied to the paycheck calculation for salaried non-exempt employees. For details, see Overtime Rules: Implementation Activity.
  15. On the Pay Groups (PR205000) form, you set up pay groups to group employees that get paid in the same frequency. For details, see Pay Groups, Payroll Calendars, and Pay Periods: Implementation Activity.
  16. On the Payroll Calendar (PR206000) form, you define pay period frequency and pay dates for each pay group. For an example, see Pay Groups, Payroll Calendars, and Pay Periods: Implementation Activity.
  17. On the Pay Periods (PR201000) form, you generate pay periods for each pay group that has a calendar configured. For details, see Pay Groups, Payroll Calendars, and Pay Periods: Implementation Activity.
  18. On the PTO Banks (PR204000) form, you define various PTO banks (accrual plans) to be used by your employees. For an example, see Paid Time Off: Implementation Activity.
  19. On the Companies (CS101500) or Branches (CS102000) form, you specify the employer identification number; you then use this number to enroll for Aatrix to enable government reporting. For details, see Government Reporting: Implementation Activity.
  20. On the Employee Payroll Class (PR202000) form, you set up payroll classes. By using employee classes, you can specify certain information as the default settings for employees, including the employee type, pay group, location, union, and paid time off. This information can be overridden at the employee level later. Every change made at this level will propagate to the employee level if the Use Class Default Value check box is selected for the employee on the Employee Payroll Settings (PR203000) form. For an example, see Employee Payroll Classes: Implementation Activity.
  21. On the Employee Payroll Settings (PR203000) form, you need to create employee payroll records. A new payroll record can be created only for an employee that was created on the Employees (EP203000) form and that is not yet a payroll employee. For more information, see Employee Payroll Settings: Implementation Activity
  22. On the Tax Maintenance (PR208000) form, update the taxes to include those related to the home addresses of the recently configured payroll employees. For details, see Employee Payroll Settings: Implementation Activity.