Payroll Process

For sites where IPS is used as the local payroll application, this module is where all payroll-related calculations are made. The user may run this process as many times as needed as long as pay period is not closed.
Access to Payroll Process is restricted to only the site payroll operator, usually an individual from the accounting/finance department. The Payroll Process performs the following operations:

Processing of all employee transactions that had been entered into the system through any available option (download from FEPS, manual input, or system-programmed). Payroll transactions will be processed under the following conditions:
- Employee status must be Active. If status is Terminated, then termination date must be greater than previous pay period End Date.
- Employee must have at least one worked day during pay period.
- Payroll Code status must be Active.
Generates all payroll deductions derived from taxes, or any other local statutory regulation.
Calculation and application of all deductions derived from alimony payments that company employees may be required to make.
Processing of all payroll deductions that had been programmed in the system. Employee deductions will be processed under the following conditions:
- Employee must have at least one transaction under an earnings payroll code during pay period.
- If deduction is set to be a positive amount, and calculated amount results in a figure equal or lower than the total employee earnings minus the other deductions.
- In case employee deductions amount surpasses employee earnings, then system will perform a calculation to deduct the corresponding portion, and leave gross pay at 0.00 (zero).
- Payroll Code status must be Active.
Updates all historic payroll data which will be used to generate reports or exports, such as Payroll Summary or TransactionDetail. It is important to keep in mind that payroll transactions are not considered applied unless a Payroll Process operation has been executed on further date.

Running payroll process:

Go to Management. Select Payroll Management. Click on Payroll Process. The user is presented with a screen where he can see the progress of payroll calculations.
User may click on the Close the Pay Period checkbox ONLY if he is completely sure that the payroll calculation is correct, and that everything is in place in order to close out the pay period. In case user is closing pay period, system will require that the process Freeze HR Transactions had been previously executed. When closing out the pay period, the system will perform the following additional operations:
1. Copy all different tax, benefits and other tables from current pay period to the next. This means employee tax, benefits, and other calculations for next pay period will remain set to be performed based on the same tables.
2. Update all programmed transactions balances by deducting the amount paid in current payroll.
3. Close current payroll and will change pay period based on the Pay Frequency that has been set under Company Maintenance.
Click on Submit.