Premium 2011
Processing
PAYROLL
Transactions
Contents
The Payroll Cheque Run
 Income Detail
4
 Deductions Detail
 Taxes Detail
3
5
5
 Processing Individual Paycheques
 (Payroll Journal) 8
 Remitting Payroll Source Deductions
 Processing Vacation Pay
 Recording Accrued Wages
 Processing T4 Slips
 PAYROLL Reports
11
13
14
15
17
Slideshow 7B
Entering Payroll Transactions:
Processing PAYROLL
Once the PAYROLL module is set to
READY, you can start processing your
company payroll!
The PAYROLL Cheque Run
Processing PAYROLL with Simply in a
company with several employees is
usually done using the Payroll Cheque
Run.
Click the Payroll Cheque Run icon.
The Payroll Run Journal will appear
showing a summary of the payroll for the
specified dates. Simply automatically
prepares a payroll journal entry using
the default data entered in each
employee’s Payroll Ledger.
Click.
To verify or modify the employee’s
payroll details, you would click the
EXPAND button of Doreen David for
Income (see arrow).
Click the EXPAND button now.
The INCOME page of the Payroll Detail
for the specific employee would appear.
Study the page.
Click
Expand button
Entering Payroll Transactions:
Processing PAYROLL
(continued)
Income Detail
This employee is paid on an hourly
basis. According to his Time Sheet,
she had worked 80 regular hours
and 2 overtime hours.
Click.
Her income is automatically
calculated based on the hourly rate
specified in the Payroll Ledger for
the particular employee.
Click.
Notice that on the employee’s
Payroll Ledger, the regular number
of hours is specified under HOURS
PER PERIOD.
Click the DEDUCTIONS tab.
Entering Payroll Transactions:
Processing PAYROLL
(continued)
Deductions Detail
Deductions are also based on the
employee’s Payroll Ledger.
Click.
Pension is calculated according to
the Percentage per Pay Period.
Click the TAXES tab on the
PAYROLL DETAIL above now.
Taxes Detail
Simply will calculate taxes
according to the employee’s
Payroll Ledger. Notice on the
Payroll Ledger that this employee
has opted to have additional
Federal Tax deducted per
paycheque (see arrow). Simply
automatically adds this to the Tax
Payroll Detail.
This company does not have
Entitlements.
Click to continue.
Entering Payroll Transactions:
Processing PAYROLL
The Payroll Cheque Run
(continued)
Notice that there are only 3
employees with check marks in the
first left column. This means that
the payroll cheques of the first and
last ones on the list are not
processed in this Cheque Run.
Click.
If you were printing the payroll
cheques, you would put a check
mark for each employee in this
column. None of them is checked
because the company uses Direct
Deposit.
Click.
Notice Direct Deposit Number 1
(see arrow at top right corner of the
journal).
After verifying the accuracy of each
employee Payroll Detail, you would
click Post.
Click to continue.
Entering Payroll Transactions:
Processing PAYROLL
The Payroll Cheque Run
(continued)
Simply creates individual Payroll
Run Journal Entry for each
employee paid. Study the resulting
journal entry for Doreen David.
Click.
Notice that the Vacation Accrued
amount shown in the Payroll Detail
is entered as VACATION PAYABLE
in the Journal Entry. Vacation
Accrued is the amount the
employee is credited with as
vacation pay in the current pay
period.
Click to continue.
Entering Payroll Transactions:
Processing Individual
Paycheques (Payroll Journal)
If you need to process individual
paycheques (in case you miss any in
the normal paycheque run, if an
employee is taking or re-paying an
advance, or if you made a mistake in
the original paycheque), you would
use the Payroll Journal.
Paycheque
Click the PAYCHEQUES icon now.
The Payroll Journal is intended to look
like a cheque with advice. When you
complete the advice portion of the
journal, Simply automatically enters
the relevant information on the
paycheque portion.
Click.
Notice that according to the Time
Sheet, this employee is taking a
Salary Advance of $600.00.
Study the INCOME page (on top)
which will appear in the Advice portion
of the Payroll Journal then click the
other tabs from left to right starting
from DEDUCTIONS. You will advance
to the next slide when you click the
ENTITLEMENTS tab.
Advice Portion
Entering Payroll Transactions:
Processing Individual
Paycheques (continued)
Study the resulting Payroll Journal
Entry for Jordan Currie’s
paycheque. Notice that the
$600.00 cash advance has been
recorded as a debit in ADVANCES
RECEIVABLE.
Click to continue.
Entering PAYROLL Transactions:
Remitting Payroll Source
Deductions
Amounts deducted on behalf of the
Canada Revenue Agency from an
employee’s paycheque are referred
to as source deductions. Payroll
source deductions for each month
are usually due to be remitted to the
Receiver General on or before the
15th of the following month.
You would print the Trial Balance for
the previous month and find out the
balances of the following accounts
for remittance to Revenue Canada.
• EI Payable
• CPP Payable
• Income Tax Payable
Click to continue.
Entering PAYROLL Transactions:
Remitting Payroll Source
Deductions
Amounts deducted on behalf of the
Canada Revenue Agency from an
employee’s paycheque are referred to as
source deductions, and are usually due
to be remitted on or before the 15th of the
following month. Note the balances on
the Balance Sheet of the remittances to
Revenue Canada as of January 31.
Click
If you click PAY REMITTANCE,
Click PAY REMITTANCE now.
… the PAYMENTS JOURNAL appears
(yes, it jumps to the PAYABLES module).
You can then select Receiver General.
Click on Receiver General now.
Be sure that the proper date is entered in
the End of Remitting Period box. When
the Amount Owing column is filled in,
be sure that the amounts match those on
the Balance Sheet, or enter adjustments.
Tab over to the Payment Amount
column to fill in the payment amounts.
Click and study the Payments Journal
Entry
Click to continue.
Entering PAYROLL Transactions:
Remitting Payroll Deductions
(continued)
Other payroll deductions are processed
in a similar manner. When you click
Pay Remittance from the main Payroll
& Employees window, you can select
the appropriate payroll authority (in this
Case London Medical Group for the
company’s medical plan).
Click.
After filling in the journal, you can
display either the journal entry or the
Remittance Report.
Click and study a sample
Remittance Report.
Study the notation at the bottom of the
report.
Click to continue.
Entering PAYROLL Transactions:
Processing Vacation Pay
If you retain vacation pay for
employees rather than pay it out
at every paycheque run, you need
to release their vacation pay when
they take time off, upon their
request, or when they cease to
work for the company.
Cheque without vacation pay
The total vacation pay owed
appears in the Payroll Journal as
the Vac. Accrued field (see right).
The amount includes unpaid
vacation pay the employee has
earned over the year.
Click.
To release vacation pay, enter the
amount in the Vac. Paid field.
Click.
The YTD Vac. Paid and the
cheque amount change
accordingly. You can then print the
cheque, and then post.
Click to continue.
Cheque with vacation pay
Entering PAYROLL Transactions:
Recording Accrued Wages
Sometimes a payday that falls at
the beginning of a month may
include wages earned in the
previous month. Example: On the
calendar at the right, payday falls
on Friday, January 11, which
includes wages payable from
December 29 to 31.
Wages from December 29 to 31
are considered accrued wage
expenses, and should be
recorded in December. (GAAP:
Time Period Concept)
Click.
Accruals are entered in the
General Journal. Study the
General Journal Entry for accrued
wages expense for $1,360.00 that
applies to December 29 to 31
(posted on December 31).
This accrual entry needs to be
reversed at the start of the next
period before the next regular
payroll date.
Click to continue.
payday
2014
2015
Entering PAYROLL Transactions:
Processing T4 Slips
A T4 or Relevé 1 (RL-1 used in
Quebec) slip is printed for each
employee at the end of a calendar
year after all payroll have been
processed. This is the slip that is
used by the employee in filing
income taxes. See right for a
sample T4 slip printed on preprinted form provided by the
Canada Revenue Agency (CRA).
Click.
Study the guidelines at the right
on adding/modifying an
employee’s T4 or RL-1 report
information in Simply. You can find
these guidelines under HELP in
Simply.
Click to continue.
Guidelines in Adding/Modifying an
Employee’s T4 or RL-1 Report Information
Entering PAYROLL Transactions:
Processing T4 Slips
You can now file T4’s
electronically (see right).
See the website below for current
information, as it is subject to
change.
Click to continue.
For more information, see:
http://www.cra-arc.gc.ca/esrvc-srvce/rf/mgmd/menu-eng.html
PAYROLL Reports
Study the PAYROLL reports that
are available in Simply.
The common employee-related
reports that you can print to help
you manage payroll efficiently and
accurately are:
- Employee Summary or Detail
report – you may display/print
payroll information for one or all
employees at once.
- Deductions & Expenses – you
may select to display/print
company payroll-related expenses
for one or more items in summary
or detail format.
Click to continue.
More…
Go back to your text and
proceed from where you have
left off.
Review this slideshow when
you finish the chapter to better
prepare yourself for the next
chapter.
Press ESC now, then click the
EXIT button.
EXIT