Process a Paycheque

Related topics

Learn about vacation pay

Create an employee record

Add or modify an employee's personal tax information

Add or modify user-defined expenses on an employee's paycheque

Assign a department to an employee (Sage 50 Premium Accounting)

Assign or change an employee's payroll expense group (Sage 50 Premium Accounting)

Modify an employee's entitlement

Modify the settings used to calculate an employee's deductions

Modify the settings used to calculate an employee's income

Modify the tax table used for employee payroll taxes

Modify the Workers Compensation rate for an employee

Set up your Sage 50 Accounting program to do direct deposits

If you are paying an employee with time slip hours, see Paying Employees Based on Time Slips about processing a paycheque. (Sage 50 Premium Accounting)

If you are paying an employee with hours from timesheets, see Adding hours to a paycheque or a payroll cheque run from timesheets.

If your company directly deposits paycheques:

If you want to add additional notes and attach them to this paycheque, set up comment boxes for payroll.

To process a paycheque:

  1. Open the Paycheques window.
      1. In the Home window, click Employees & Payroll on the navigation pane.
      2. In the Tasks pane, right-click the Paycheques icon and select Create Paycheque from the menu.
  2. If you subscribe to a service plan that includes payroll, ensure that the Calculate Taxes Automatically toolbar button Calculate taxes automatically icon is selected, so that the program calculates tax deductions automatically.
  3. In the Paid From box, select the bank account from which the paycheque will be paid out.
  4. In the Employee box, select an employee from the list and press the Tab key. If you have not yet added a record for the employee, you can add one "on the fly".

    Note: Although you can create an employee record with just an employee name, the employee is considered incomplete, and you cannot create a paycheque for an incomplete employee. You must first enter the missing payroll information.

  5. In the Cheque Number, Cheque Date, Period Start Date, and Period End Date boxes, make changes if necessary.

    6. Also if you want to issue paycheques in the next fiscal year or calendar year, you must have a service plan that includes payroll and turn on the option Allow transactions in the future. (Sage 50 Premium Accounting)

  6. If necessary, on the following tabs, you can add or modify the information reported in the paycheques:

    Income

    Modify the employee's income information, or add any additional income like pay advances and overtime.

    Note: If you change the amount of hours worked, you should also change the number of work hours recorded on the Entitlements tab since the entitlements calculated in Sage 50 Accounting are based on these revised hours.

    Important! If you add incomes, you have to make some changes in Settings depending on your company. If you map the linked accounts individually on the Incomes tab under Linked Accounts, you need to select the linked account for the payroll incomes you are choosing to use. If your company uses payroll expense groups, you need to select the linked account for the payroll income in the payroll expense group on the Expense Groups tab under Linked Accounts.

    Vacation 

    If you are paying out vacation for an employee who normally retains vacation pay, enter the number of vacation hours paid in this pay period and/or its corresponding amount.
    If you do not enter any hours, insurable hours will not be recorded for the vacation taken. The number of insurable hours are required to establish entitlement to Employment Insurance (EI) benefits. The employment must be insurable in order to earn insurable hours.

    Deductions

    Modify the deduction amounts.

    Taxes 

    If you subscribe to a service plan that includes payroll, the taxes are calculated automatically.

    If you are entering your taxes manually, type in the employee's tax information.

    User-Defined Expenses 

    Modify the expense amounts.

    Note: The User-Defined Expenses tab appears only if you have linked both a payable and an expense account to all your user-defined expenses.

    Entitlements

    In the Days Earned column, the number that is automatically displayed reflects the amount of entitlement earned for this pay period based on the number of hours worked.

    In the Days Taken column, you can enter the amount of entitlement in days this employee took in during the pay period.

    In the Net Days Accrued column, the number that is automatically displayed reflects the remaining amount of entitlement in days for this employee.

    Quebec Tips

    Enter the amount of tips earned by this employee if you have set up the Québec Tips option.

  7. (Optional) To add a note or memo in this paycheque, on the Paycheque menu choose Enter Additional Information, and enter your note or memo.
  8. (Optional) Allocate the paycheque amount to:
  9. Project. Allocate revenues and expenses to a project.
  10. Department(s). Allocate individual payroll accounts to one or more departments if you are using employee departments for payroll. (Sage 50 Premium Accounting)
  11. (Optional) If you use a custom Sage 50 Form for payroll cheques and want to preview the cheque before printing it, click Print Preview Preview Form icon.
  12. To print the cheque, click Print Print icon.
  13. (Optional) To email a direct deposit stub to an employee who is set up for direct deposits, click Email Email icon.
  14. Click Process.