PAYROLL PROCESSING. employmenthero.com Level 2, 441 Kent St, Sydney, NSW, 2000 Australia

Transcription

1 PAYROLL PROCESSING employmenthero.com Level 2, 441 Kent St, Sydney, NSW, 2000 Australia

2 Table of Contents 1- Timesheets Importing Timesheets 3 From Employment Hero HR Platform 3 From Third Party Providers Managing Timesheets in Hero Pay 13 Creating Timesheet 13 Approving Timesheets 18 Timesheet Report Creating a New Pay Run Importing Timesheets in Pay Run Pay Run Inclusions 25 Setting up a recurring Super Adjustment 26 Setting up a recurring Tax Adjustment 26 Setting up a recurring Deduction 26 Setting up Preserved Earnings 27 Setting up a recurring Expense 27 Setting up a recurring Employer Liability Leave Application to a Pay Run 29 For client using Employment Hero and HeroPay Pay Run Adjustments 32 Recurring Earnings in Pay Run 34 Leave Adjustment 36 PAYG Adjustments 38 Processing a Backpay Terminating an Employee 44 Terminating an Employee within the Employee File 44 Terminating an employee via the pay run 44 PAYG Calculations in Termination Pay Payroll Reports Pay Run Warnings Finalising a Pay Run 52 1

3 2.9 Publishing Pay Slip 54 For client using Employment Hero and HeroPay Generating an ABA file Downloading Journal Setting up Categories Pay Category Leave Category Deduction Category 70 2

4 1- Timesheets 1.1 Importing Timesheets From Employment Hero HR Platform This section is applicable for client s who use Employment Hero HR Platform How to upload timesheets 1. Go to Timesheets > Management 2. If you want to upload all approved timesheets that have not already been synced, click Upload All 3. If you want to upload approved timesheet from a specific date range, enter in a date range and click Upload from Date Range Note: uploading from a date range will overwrite the successful sync dates of other timesheets that are also within the date range 4. From here if you filter by employee, an Upload by Employee button will appear that will upload timesheets for that employee from that date range. If you want to preview the timesheets you will be uploading, click Run Report before clicking the upload button. Once a timesheet has been uploaded, it is blocked from being edited or deleted by employee. Admin/ Owner can edit or delete the timesheet even after it s synced successfully to payroll. However after you edit the timesheet, remember to upload it again to payroll. Understanding timesheet information Each timesheet will have an icon under the Info column. When you hover on it, it will show 3 pieces of information: Date it was created Date it was last attempted to sync Whether the sync was successful or not 3

5 Understanding clock icon colours Colour Green Amber Red Blue Status Synced successfully Failed to sync due another timesheet in the same batch Failed to sync because this timesheet had an error Have not attempted to sync yet 4

6 From Third Party Providers Timesheets can be imported from a variety of sources, including CSV file formats as well as direct import from third party providers. To import timesheets, please ensure the timesheet service is enabled within the Timesheet service page under payroll settings. From there you will be able to enable timesheets and configure providers. To begin the timesheet import process, select 'Manage Employees' -> 'Import Timesheets' on your payroll dashboard: Custom file upload This timesheet import function allows the import of timesheets from CSV files. The file format is not fixed; most timesheet formats may be imported provided the following requirements are satisfied: The file must be in CSV (comma separated) or TSV (tab separated) format There may only be one timesheet entry per line Each timesheet line requires, at minimum: Start/End date/time or Date + Units Employee 5

7 First, select the file to upload. Once the file has been uploaded, the user is able to set the date format of the file (US date formats and Australian date formats are supported). The next step is to configure the type of data for each column. A preview of the first few lines of each column are shown to assist in the column matching. See below for a description of all available column types: 6

8 Once the columns are mapped, the next step is to begin the import. It is possible to replace timesheets uploaded in a previous import (for example, if there were errors in the previous import). NOTE: that if timesheets are included in a pay run, they may not be replaced. The final option is to determine whether the timesheets are automatically approved or whether they should go through the standard timesheet approval workflow. Click Import to begin the process. 7

9 Once the timesheet import process is complete, if there were any errors they will be shown. The file may be re-uploaded or the columns re-configured and the import retried. If the import is successful, the format of the file may be saved so that it can be re-used later to save having to map the column types each time. Simply click the 'save the file format' link, give the format a name and click Save timesheet format Column Types The following table lists the available column types. Column type Nothing (skip) Date Description Select this column type if the data is irrelevant to the timesheet import Date only (without time information). The date may be in US or Australian format. 8

10 Start time Start date and time End time End date and time Break start time Break start date and time Break end time Break end date and time Employee ID Employee external ID Work type ID Work type external ID Location ID Location external ID Pay category ID Pay category external ID Time only Date and time Time only Date and time Time only Date and time Time only Date and time This ID value is currently only available via the API External ID of the employee This ID value is currently only available via the API External ID of the work type This ID value is currently only available via the API External ID of the location This ID value is currently only available via the API External ID of the pay category. NOTE: it is preferred to use work types that map to pay categories/leave categories rather than mapping directly to pay categories 9

11 Leave category ID Leave category external ID Classification ID Category type Category ID Category external ID Rate Comments Units This ID value is currently only available via the API External ID of the leave category. NOTE: it is preferred to use work types that map to pay categories/leave categories rather than mapping directly to leave categories This ID value is currently only available via the API This field indicates the type of data that is present in the Category ID or Category external ID fields. Possible values: L indicates a leave category W indicates a work type P (or empty) indicates a pay category This ID value is currently only available via the API External ID of the leave category or pay category or work type (as indicated by the Category type column) Rate the employee is paid for this shift. This is not mandatory - the employee's standard rates will be used. NOTE: this column does not work well in conjunction with pay conditions Comments associated with the timesheet This may be used to override the number of paid hours for the timesheet. If left blank, the hours will be determined by the start/end times and the breaks. Units may also be required for unit-based pay categories. Date/time columns may be used in the following combinations: Start date and time + End date and time Date + Start time + End time Date + Units Sample Timesheet Formats Each of the following sample timesheet import formats assume the following: There is an employee with an External ID of MM (Mickey Mouse) 10

12 There is another employee with an External ID of DD (Donald Duck) There is a location with an External ID of SYD There is another location with an External ID of BRIS There is a work type with an External ID of STD Example 1: This timesheet format uses datetime data in the start/end/break start/break end columns timesheet-import-format-a.xlsx Example 2: This timesheet format uses a date column with separate start time/end time columns timesheet-import-format-b.xlsx Example 3: This timesheet format uses a date column and a unit s column to represent the hours worked timesheet-import-format-c.xlsx All these timesheets are very simple however they can be expanded upon due to the timesheet importer's flexibility. Roster The Roster import option allows timesheets to be created directly from the integrated employee rostering module. 11

13 To limit the timesheets that are created there are several options to filter the roster records. Filtering can be done using the following options: Date Range One or more location - This will filter on the location of the roster record. Pay Schedule - Filter to employees with a matching default pay schedule The 'Approve timesheets' option is to determine whether the timesheets are automatically approved or whether they should go through the standard timesheet approval workflow. Click Import to begin the process. Once the process is complete you will be given the option to import more timesheets or proceed to the timesheet approval section. Deputy: Please refer to this article for information on importing timesheets from Deputy Kounta: Please refer to this article for more information on importing timesheets from Kounta. WFS (Roster Live): Please refer to this article for more information on importing timesheets from WFS (Roster Live) 12

14 1.2 Managing Timesheets in Hero Pay NOTE: If your employees enter timesheet through Employment Hero (HR Platform), all actions related to timesheet should be done on Employment Hero. We have compiled all instructions for Payroll Officer to use Employment Hero here. Below instructions are applicable if your employees enter timesheet through HeroPay only. Creating Timesheet Managers can submit timesheets on behalf of employees who are enabled to use timesheets. This is accessible by clicking on the 'Manage Employees' -> 'Create Timesheets' tab on the payroll dashboard as seen below: NOTE: Now, managers can also create timesheets for all employees that aren't enabled for timesheets in their Employee File -> Pay Run Defaults page. To allow this feature, go to Payroll Settings -> Timesheets and tick the box that says, 'Managers can create timesheets for all employees that aren't enabled for timesheets'. If the employee has not been enabled for timesheets (on their Pay Run Defaults page), a message will be shown and a link (if user is an admin) to enable the employee for timesheets. Doing so will show the several controls to enable you to select the employee and date range for the timesheets. 13

15 From here you need to: 1. (Optionally) adjust the week (or fortnight) for which the timesheets are to be entered. You can click on the left or right arrows to jump by weeks, alternatively you can click the calendar icon to choose your dates that way. 2. Select your employee (drop down box). The timesheet grid will then be presented. 3. Select employee's work type. To find out more about setting employee work types, see "Work types". If Work Type is not specified, the hours recorded will be assigned to the default pay category for the employee when the timesheets are imported into a pay run. 4. Choose start and end time. W hen entering start and end times, you can simply type 9a and it will recognise it as 9:00am. Similarly, for example, 530p will be recognised as 5:30pm. 5. The "Duration" field will confirm to you how many hours have been entered on behalf of the employee 14

16 6. Enter the break start/stop times for the employee (if any) 7. Choose from the list of locations that have been preselected for the employee. To find out more about locations, see "Locations". If Location is not specified, the hours recorded will be assigned to the default location for the employee when the timesheets are imported into a pay run. 8. To clear the timesheet line, click the red 'x' on the right-hand side of the line. (Note: approved/processed/rejected timesheets are unable to be edited or cleared) 9. Only relevant rows need to be filled out. If the employee did not work on particular days, those lines may be left blank. Once all required changes have been made, click the Save button. NOTE: If the user has 'Approve Timesheets permission, the 'Save' button will have an additional option to 'Save and approve' by clicking the arrow to the right of the button. Timesheet Costings When entering timesheets for an employee, you can view the costs of the associated timesheets by following these steps: 1. From the filter menu, ensure the "Show Costs" option is selected 2. Once this option is selected, you will then see a "Costs" column. You can hover over the "costs" value for any timesheet to see the cost breakdown. Cost breakdown is calculated based on working hours and employee s base rate. If employee is linked to 15

17 a rules set, pay conditions from the rules set such as overtime, shift loading will also be applied in the cost breakdown. Advanced Editing Some additional timesheet details are not able to be entered via the timesheet grid and must be entered via the timesheet editor. These details include: Notes for the timesheet Additional breaks (if you need more than one) Higher classification (if an employee is on an employment agreement and works higher duties for a period of time). If any of these details are required, the timesheet editor may be opened by clicking the 'pencil' icon on the right-hand side of the grid. Doing so will open the timesheet editor where all aspects of the timesheet may be edited. 16

18 Once the required changes have been made, click 'Apply' to close the dialog and return to the timesheet grid. Actions Menu Clicking on the 'Actions' button provides several additional features: Add another timesheet line : If the employee works multiple shifts for the one day, this action will enable the user to add another line for a particular day. 17

19 Copy timesheets from last week: This will pre-fill the timesheets for this period with the same timesheets that were entered in the last period. The timesheets may then be modified as required before clicking Save. Clear timesheets: This will clear all the timesheets. Note: Approved/Processed/Rejected timesheets are read-only and may not be cleared. Revert changes: This will reload the timesheets for this period, discarding any changes made since the last save. Enter hours instead of start/stop times: Normally, start and stop times are required when entering timesheets. These play an important role when using pay conditions (for example paying the employee a higher rate for evening work). If these features are not required, this action will enable the user to enter hours only. For example, instead of entering 9am - 5pm, the user will simply be able to enter 8 hours. NOTE: this feature must be enabled via Business Settings > Timesheets Approving Timesheets Managers can approve timesheets on behalf of employees in the employee management area. This is accessible by clicking the " Manage Employees" button, then "Approve Timesheets 18

20 This page will show the timesheets that are awaiting approval within a specified date range. There are several options for grouping the timesheets to fit in with your preferred workflow: group by Date group by Default Location group by Employee group by Location group by Pay Schedule group by Work Type Additionally, the timesheets may be filtered by: Date Status Employee Location Employee Group If you want more flexibility with dates while filtering, you can select the "Show timesheets for period" option which will give you a wider range of dates as well as the option to enter a custom period 19

21 The approval process is very flexible. Timesheets may be selected individually, by clicking on an individual timesheet line or as a group, by clicking on the group header. Once you have selected the desired timesheets, you may approve or reject the timesheets by clicking the appropriate button at the top of the page. If there is no specific selection, clicking the 'Approve or 'Reject' button will apply the action to all (unapproved) timesheets. Viewing Documents Timesheets that have a document attached will have the "link" icon showing. You can view the attachment by clicking on the link Deleting Timesheets Deleting timesheets is also very easy. Simply select the applicable timesheets using the same method as approving/rejecting and then click the 'Delete timesheets button. Note: that once timesheets have been included in a pay run, they will have a status of 'Processed' and cannot be deleted. Comparing with Rostering For businesses that utilise the Rostering function, it is possible to compare the timesheets entered with the rostered shifts. To do so, click the 'Compare with Roster' button. 20

22 Doing so will show the rostered shift alongside the timesheet. Any differences will be highlighted in blue. An orange 'warning' sign indicates that the timesheet is different to the rostered shift. A red 'exclamation' mark indicates that there were no rostered shifts that correspond with the timesheet. A green 'tick' indicates that the timesheet matches the rostered shift. Timesheet Report This report will give you a listing of all the timesheets, within the specified date range, by Location, by Timesheet Status and then will group by either Location, Work Type, Employee or Date. To access and create a Timesheets Report follow these steps; 1. Under the Payroll Reports heading, select 'Timesheets Report 21

23 2. The parameters that you can select from include: Date range Location Pay Schedule Group by: Location, work type, employee, date, default location, pay schedule Employee Status of timesheet: All, submitted, approved, rejected, processed Work type You can also choose to show timesheet costs and include comments. 3. After you have made your report selections choose 'Run Report' - the blue button on the bottom right hand side of screen. Note you are also offered the option to produce the report in a CSV, Excel or PDF file format. 22

24 2- Creating a New Pay Run To create a new Pay Run you need to click the big 'New Pay Run ' button to the right of screen on the 'Dashboard' page: A dialog box will open that includes the following details: Pay Schedule - Weekly, Fortnightly, Monthly, and other custom options you may have entered. Pay Period Ending. Date pay run will be paid. Manually add employees to pay run: select this if you are creating an 'Ad hoc' pay run and wish to only add a subset of employees. Note: If timesheets are enabled, then you will be given options for importing timesheets into the pay run. Video Link for Creating a Pay Run n 23

25 2.1 Importing Timesheets in Pay Run Once timesheets have been approved, they are now available for import into a pay run. When we go to create a new pay run, it will check to see if there are any approved timesheets for this pay period. If there are, we will be prompted to import them into this pay run. Once the Create button is clicked, the outstanding timesheets will be imported into the pay run. At this point, the timesheets are now locked off and unable to be modified. We can see that the timesheets that we approved have been successfully imported into the pay run. These timesheet lines are now marked as processed. If we were to open the timesheet entry screen, we can see that those lines have been processed. 24

26 2.2 Pay Run Inclusions Pay Run Inclusions comprise of additional pay items that are set up against an employee and then automatically included in the pay run. The specific items include: Deductions Employer Liabilities Expenses Super Adjustments Tax Adjustments Payrun inclusion should be set up before you include an employee in current payrun, so that the payrun inclusion can take effect in current payrun. These can be set up to include a specific start date and end date (otherwise it can repeat indefinitely). To set up a Pay Run Inclusion for an employee, choose the relevant employee from the employee list and then select Pay Run Inclusions from the left side menu. You will see the following screen: From there, refer to the following instructions below depending on what item you want to set up. 25

27 Setting up a recurring Super Adjustment N.B. Salary Sacrifice Super or Member Voluntary deductions should NOT be set up in this section. They should be set up as a recurring Deduction. 1. Click on 'Add'. 2. Select the appropriate contribution type from the drop-down list. 3. Enter the adjustment amount to be applied per pay run. It can be a Fixed amount, Percentage of Gross earnings, Percentage of OTE or Percentage of Taxable Earnings. 4. Enter any notes if you want the employee to see them on their pay slip. 5. Enter the date this inclusion is to commence. 6. Choose when this inclusion should cease (a specific end date, never or once a dollar amount has been reached). 7. Click on 'Save' Setting up a recurring Tax Adjustment An example scenario of when to use this would be when an employee has requested additional PAYG be deducted from their pay. 1. Click on 'Add'. 2. Enter the adjustment amount to be applied per pay run. It can be a Fixed amount, a Percentage of Gross earnings or Percentage of OTE. 3. Enter any notes if you want the employee to see them on their pay slip. 4. Enter the date this inclusion is to commence. 5. Choose when this inclusion should cease (a specific end date, never or once a dollar amount has been reached). 6. Click on 'Save'. Setting up a recurring Deduction 1. Click on 'Add'. 2. Select the appropriate deduction category from the drop-down list. If the deduction category is not yet available, you need to create it first. Refer to here for creating a deduction category. 3. Enter the deduction amount to be applied per pay run. It can be a Fixed amount, a Percentage of Gross earnings or Percentage of OTE. 4. Select whether the deduction should be paid manually, to a super fund, a bank account or BPAY account. ( If you are setting up salary sacrifice super or member voluntary, select the super fund option ). 26

28 5. If in Step 4, you have chosen either a super fund, bank account or BPAY account, ensure you then select the relevant fund/bank/bpay account. 6. Select whether you want to apply preserved earnings to this deduction. Refer below on detailed information relating to preserved earnings. 7. Enter Payment Reference (if chosen for deduction to be paid to a bank account). This reference will appear on the employee's pay slip but also the recipient's bank statement. (Handy for deductions such as child support, etc where reference numbers must be quoted). 8. Enter any notes if you want the employee to see them on their pay slip. 9. Enter the date this inclusion is to commence. 10. Choose when this inclusion should cease (a specific end date, never or once a dollar amount has been reached). 11. Click on 'Save'. Setting up Preserved Earnings Preserved earnings are defined as the minimum net earnings an employee MUST be paid before a deduction amount can be applied in the pay run. For example, an employee could have a garnishee order, but part of the order includes that the employee's net pay cannot be reduced to less than $300 per week as a result of the garnishee order. To set this up of example, you would: 1. Preserved earnings: select 'Once a minimum net earnings limit has been reached'; 2. Preserved earnings amount: enter 300; 3. If the amount is not reached: here you can choose to have none or only part of the deduction amount processed in the pay run; 4. Carry forward unpaid deduction amounts: here you can choose whether you want any unpaid deduction amounts to be carried over to following pay runs. For example, say an employee s recurring deduction amount was fixed at $100 per pay run but only $50 was deducted in the pay run. If you choose to carry forward the unpaid deduction amount, the unpaid $50 will be carried over and a total of $150 will be deducted in the following pay run. If you choose not to carry it over, the unpaid $50 deduction amount will be disregarded and in the following pay run only the recurring $100 will be deducted. Setting up a recurring Expense An example scenario of when to use this would be when an agreement has been reached with an employee that the company will reimburse mobile phone expenses and will not form part of their gross wage. 27

29 To add a new recurring employee expense, click the green Add button on the right of Expenses and complete the following details: 1. Select the appropriate expense category from the drop-down list. 2. Select the location the expense should be costed against. This will default to the employee's default location however you can change this to another location that the employee is attached to. 3. Assign a tax code to expense categories to cater for sales taxes that may be applied to expense claims. If you are attached to a cloud accounting system such as QuickBooks, Xero or Saasu, you ll be able to select the tax code from your accounting system to be pre-populated when your employees submit an expense claim. 4. Enter the expense reimbursement amount to be applied per pay run. 5. Enter any notes if you want the employee to see them on their pay slip. 6. Enter the date this inclusion is to commence. 7. Choose when this inclusion should cease (a specific end date, never or once a dollar amount has been reached). 8. Click on 'Save'. Setting up a recurring Employer Liability 1. Click on 'Add'. 2. Select the appropriate liability category from the drop-down list. 3. Enter the liability amount to be applied per pay run. You can choose to enter a fixed dollar amount, a percentage of gross pay or a percentage of OTE. 4. Enter any notes if you want the employee to see them on their pay slip. 5. Enter the date this inclusion is to commence. 6. Choose when this inclusion should cease (a specific end date, never or once a dollar amount has been reached). 7. Click on 'Save'. 28

30 2.3 Leave Application to a Pay Run If any employee has applied for leave, it will appear under the "Weekly Period Ending" heading. The number next to the heading is the number of outstanding leave applications that have not been applied. Once you click the "Leave Requests" tab, you will see the following: Name of the employee Type of leave requested Dates of leave requested Total hours of leave requested You can choose to "Bulk Apply" the leave requests, or, hover over the employee that you would like to apply the leave for, two options appear which are: Apply - this will apply the leave request to the current pay run Mark as applied manually - this is for when you have already applied the manually to the pay run and do not want the leave request to affect the pay run. 29

31 If you click the "Apply" button, the following dialogue box will open and will ask you to select the amount of hours that you wish to apply to the pay run. The system will default to the number of hours the employee has applied for. Note: if you do not apply all the hours for the leave request, the leave request will still show in future pay runs. This lets you apply only as much of the leave as is applicable to each pay run, the balance will show up in subsequent pay runs until all of the leave has been applied. Once a leave request has been applied, a new leave line will be added to the "Leave Taken" section under the employees pay run details. If you delete the new leave line, then the status of the leave request will change and no longer be applied. Manually Applying Leave If you click the "Mark as applied manually" button, no dialogue box will show but instead the system will show a "Manually applied" label next to the employee name. Note: When you manually apply leave, no leave line will be added to the employees pay run details. An example of how this is used would be if an employee came back from leave early and you had already applied part of the leave request in a previous pay run - manually applying the leave makes whatever balance is remaining "go away". You have the option to undo this by hovering over the details and clicking the "undo" button. 30

32 For client using Employment Hero and HeroPay Leave sync from Employment Hero to Hero Pay Approved leave will sync from Employment Hero to HeroPay. Refer to here for more information about leave sync. Approved leave, which was then later declined, would not sync from Employment Hero to HeroPay. Payroll Admin will receive notification about the declined leave, which will trigger to do a manual update in Hero Pay platform. Payroll Admin can delete the leave on HeroPay or Mark as Manually Applied. For other changes related to leave, information will automatically sync from Employment Hero to HeroPay once the leave is approved. Leave sync from HeroPay to Employment Hero Leave changes on HeroPay do not sync to Employment Hero. If Admin deletes a leave record on HeroPay, the admin should also delete on EH HR platform. Otherwise, the leave request will reappear in next payrun. Negative Leave Balances Employment Hero does not flag leaves that are in negative balance. Leave approvers should either decline or amend the leave request, as the leave balances are visible to them. 31

33 2.4 Pay Run Adjustments Payroll Admin has below options to make changes: Add more employees, change pay run period/ pay date, import more timesheet, Export pay run details to spreadsheet format. When you expand the employees pay breakdown, you will find the Actions button where you can manually select the below: 32

34 Add earning - add payment manually. If the pay category is not yet available, you need to create it first. Refer to here for creating a pay category. Add lump sum payment - Payroll Admin can input number of pay run periods the payment will be spread over for correct tax calculation. Accrue leave - add leave accrual. Take leave - apply a leave manually in pay run. If the leave category is not yet available, you need to create it first. Refer to here for creating a leave category. Adjust leave - a negative adjustment will "take" leave (meaning reduce the leave balance), a positive adjustment will add to the leave balance. 33

35 Recurring Earnings in Pay Run If you need to set up recurring earnings for an employee in the pay run. Please see the below options Option 1: Use this option if the earnings does not require locations/cost centres: 1. Go to employee list, select employee 2. Then proceed to Pay Rates, find the Pay category you want to include automatically. If the pay category is not yet available, you need to create it first. Refer to here for creating a pay category. 3. Next is to add the Rate and Units (choose from the drop-down list the frequency) 4. Tick the box Show in Pay Run then hit save. Option 2: Use this option if the earnings requires a specific location or duration 1. Go to employee list, select the employee 2. Then proceed to the Pay Rates, at the bottom of the screen you will see Additional Earnings Lines Section 3. Select the Add button 4. It will then bring out the below screen where you can add the details of the additional earnings. 34

36 a. Pay Category - Choose the pay category that you want to set-up as recurring from the drop-down below. b. Location - Choose the location/cost centre c. Earnings per Pay Run - Put the number of units depending on your pay schedule d. Rate in Pay Run - Put the rate of the earnings e. Super Rate - Put the Super Rate (tick override if need to adjust) f. Notes - Can add special notes or messages g. The earnings line should be included in - Choose one from the 3 scenarios below. i. All future pay runs 35

37 ii. All future pay runs where the pay period starts before indicated date iii. All future pay runs until the indicated maximum amount of the pay category has been reached Leave Adjustment There may be occasions when leave will have to be adjusted. For example, if annual leave was paid but it should have been sick leave taken. To adjust this error, you will need to follow these steps 1. Create a New Pay Run or make your adjustment in the next scheduled pay run 2. Open the employee's pay run record by clicking on their name 3. Select the "Action" button at the bottom right hand corner of the screen (See image below) and then select "Adjust Leave" 4. Adjust the Leave accordingly but remember, this is a leave "adjustment, so a negative adjustment will "take" leave (meaning reduce the leave balance), a positive adjustment will add to the leave balance. In the example shown below the intention is to change the leave taken from annual leave to sick leave so there's a positive 36

38 adjustment to increase the annual leave balance and a negative adjustment to reduce sick leave. 5. Depending on the leave category settings, and if the Apply Earnings Rules box is ticked, the Leave Adjustment will create a line in the earnings of the employee indicating that annual leave has been adjusted. NB. ticking the box to apply 17.5% leave loading will also add an earnings line to pay the loading if leave is being taken (a negative adjustment) but will reverse/deduct the 17.5% loading if leave is being added/replaced (a positive adjustment) - see image here 6. You can leave a note in the "Notes for This Pay run" section (see image below) 7. The pay run can now be finalised Note: Leave adjustment can also be used to reduce or increase an employee s leave balance Reduce leave balance : this is applicable if leave accrued incorrectly (for example, a casual employee was linked to Permanent leave allowance template and had Annual/ Personal leave accrual in the past). In this case, follow below steps 1. Follow step 1 to 3 as above 2. Select leave category 3. Untick Apply Earnings Rules box, since you do not want the leave adjustment to be included in wages calculation. 4. Enter number of leave balance (for example, employee s annual leave balance is 10 hours and you want to reduce it to NIL, enter -10). Then Save. 37

39 Increase leave balance : this is applicable if a leave request was processed in previous pay run but employee did not take the leave. In this case, follow below steps 1. Follow step 1 to 3 as above 2. Select leave category 3. Enter number of leave balance (for example, leave taken processed in previous payrun is 8 hours and to reverse the leave taken, enter 8). Ensure Apply Earnings Rules box is ticked, then Leave Adjustment will create a line in the earnings of the employee indicating that the leave has been adjusted. 4. Then Save. If employee is auto-paid, leave adjustment will have below result. Annual leave taken would be reversed and employee would be paid Permanent Ordinary Hours. If employee is paid by timesheet, leave adjustment will reverse leave taken only. Employee would need to create timesheet entry for the day employee was working. PAYG Adjustments To adjust PAYG you need to: 1. Open the (unlocked) pay run and click on the employee for whom it applies. 2. In the drop-down box, click on the "PAYG" option within the blue "Actions" tab in the bottom right hand corner. 38

40 3. When you click the "Adjust PAYG" button, a new line will show in the dialog box that says "PAYG Adjustments" 4. You can make notes for the PAYG adjustment 5. You are required to enter the dollar amount that you wish the adjustment to be for. Processing a Backpay The example scenario: Bobby's old pay rate was $20.00 per hour, His new pay rate is $25.00 per hour He's already been paid up to 31/8/16 (on the old rate), You want the new pay rate to apply from 1/7/16 You've updated the pay rate on his employee record, pay run defaults page. Note: If the effective date of the employee s salary increase is in the middle of a pay schedule, manual intervention is needed Now his new pay rate will be applied to any earnings from now (or the effective date at the bottom of the pay run defaults page) on but here's how to work out and pay him for the period he's already been paid for, at the old rate. Creating Back Pay pay category Create a separate pay category ( click here if you need some assistance with this). In this example we'll call the new pay category Back Pay, set the Units field to "fixed" (this pay category won't be accruing leave). 39

41 If overtime has been paid during this "back pay" period, then you'll need to consider your options for paying this: 1. manually calculate the overtime back pay required and simply enter this amount into the back-pay earnings line in the pay run (explained below), OR 2. make the Unit "Hourly" on your Back-Pay category and add linked pay categories with penalty loading/s that match your usual penalty rates. NB. making the pay category "hourly" will mean the back-pay hours will be included in the total hours worked on the pay slip so if this is likely to confuse your employees use option 1. Finding out how much you need to pay There are several report options but what you are looking for is a report that will show you both the number of hours that have been worked/paid at the "old" pay rate and the number of pay periods since 1/7/16. Go to the Reports menu and select the Pay Categories report. Filter your report for the period 1/7/16-31/8/16 and to show you Bobby's earnings only... 40

42 This report tells us the total number of hours (325) paid during the period and the number of pay periods (9). All that's left to do is to pay him. How to pay it You're going to add the back pay owed to his ordinary earnings in his next scheduled pay run so click on Bobby's name to expand his record in the pay run click on the actions button within his record select the Add Lump Sum Payment option 41

43 once the new earnings line is in the pay run click on the down arrow and select the Back-Pay category enter $5 into the pay rate field (i.e. the difference between the old and the new rate) enter 325 hours into the Units field enter 9 into the weekly pay periods field (Entering the number of pay periods aggregates the PAYG tax so that Bobby will only pay the same amount of tax he would have paid had he been paid at the higher rate since 1 July.) 42

44 You can add a note either in the notes field of the Back-Pay line or at the bottom of the record to explain the details of the back pay if necessary. 43

45 2.5 Terminating an Employee There are two ways you can terminate an employee. 1. Within the employee file 2. Within a pay run Terminating an Employee within the Employee File The first, and simplest way is to open the employee file, click on the details section and down the bottom of the page you ll see a Terminate Employee button Clicking this button simply marks the employee as inactive and will no longer be eligible for pay runs. Note: 1. If you are using Employment Hero HR platform, you can skip above step. You can offboard employee on HR platform, and the termination information will sync over to Payroll. 2. Please note that offboarding/terminating an employee will not process a termination payment. You can pay termination payment in the payrun following below step. Terminating an employee via the pay run Once employee is offboarded/ terminated, employee will not be automatically included in the pay run. Add an employee by selecting Pay Run Actions/ Add Employees. Next, click on the employee within the pay run and then from the blue Actions button select Terminate Employee 44

46 The employee record will then turn red and will display earnings and accrued leave. When you click save, any relevant termination payments will be calculated for the employee. The breakdown of payments (and associated hours) will be detailed and include: Annual Leave pay out - must check box for loading to be included in pay out Time in Lieu pay out Long Service Leave pay out Option for Sick Leave to be paid out (must check the box for this to occur) Once the Terminate Employee action has been selected, check the "ETP/Redundancy" option that appears if needed. Checking this box will allow you to enter the ETP amounts to be paid to the employee. 45

47 Once you have finalised the pay run, this employee will no longer be active or eligible to be included in pay runs and the employee line will be highlighted red. Note: If there are any unfinalised pay run for the employee, you will not be able to terminate until those pay runs have been finalised. If you want to cancel the termination, you simply have to unlock the finalized pay run, click on the relevant employee and click the blue "Actions" box. From here, click the "Cancel Termination" button. Note: Regarding HELP payments on termination, as per the ATO, when working out Marginal Tax Rates you do not withhold any amount for: Higher Education Loan Program (HELP) debts Student Start-up Loan (SSL) debts (includes ABSTUDY SSL debts) Trade Support Loan (TSL) debts Financial Supplement debts. 46

48 PAYG Calculations in Termination Pay PAYG on unused leave is calculated using the ATO s marginal rate calculation method. In the pay run, when you click on the? icon in the employee s PAYG field, the following context panel will be displayed: This panel details each step of the calculation and how the PAYG amount has been determined. Clicking the blue? icon on the right of each step will provide an explanation of how each amount has been calculated: How does HeroPay calculate Normal Gross Earnings? A big component of a termination pay is calculating the employee s normal gross earnings. Due to the varied nature of how employees are paid in HeroPay, we apply the average earnings method. Specifically, we calculate the employee s average gross taxable earnings for the financial year to date over the number of pays they have received. If a user applies a different method, they can override the system calculated normal gross earnings. This will, in turn, automatically recalculate the PAYG for the termination pay. Using the example above, the system calculated normal gross earnings are $ You, however, can change the employee s normal gross earnings to $750: 47

49 Once saved, re-opening the context panel will display the updated calculations: 48

50 2.6 Payroll Reports You can run the below reports to double check the entries and amounts in the pay run before you finalise. Draft Audit Report - Pay run audit reports show the full pay run details for a given pay run. This includes earnings, super payments, bank payments, leave and deductions. Variance Report - The pay run variance report allows you to compare the data from one pay run to another and highlight the difference in gross and net earnings, PAYG, super, leave and even individual earnings details. 49

51 2.7 Pay Run Warnings Pay run warnings will appear if applicable, after you have created a new pay run (see here for help on creating a pay run). To see the specific details of the warning: 1. Click on the word "Warning"; 2. This will redirect to that tab and expand on the data to show you each warning; 3. If you click on the specific warning, this will also expand to show you details. Click on the warning so that it expands to provide more information: The following warnings will be displayed in a pay run: ABA details have not been provided - this will be displayed when no bank account details have been provided for a pay run and therefore no ABA file can be generated 50

52 BPAY details have not been provided for this business - this will be displayed when no business BPAY file has been provided but employees have BPAY accounts set up and to be processed in the pay run. No BPAY file can be generated until such details have been added. Employee has negative earnings - this will be displayed when the net payment amount for an employee is less than 0 Employee has earnings lines for which they aren't being paid - this will be displayed when an employee has an earnings line with hours applied, but the total value of the earnings line is 0. This usually indicates there's an error with the employee s rate of pay Employee has a birthday during the pay run period - this is displayed when an employee has a birthday during the pay run period and therefore may need to have their rate of pay reviewed Employee has an anniversary during the pay run period - this is displayed when the anniversary of the employees start date occurs during the pay run period and therefore may need to have their rate of pay reviewed Employee is taking more leave than they have accrued - this is displayed when an employee is attempting to take more leave than they have accrued. Additionally, once a pay run has been finalised and no ABA file or BPAY file is set up, you will see the following warning against the "Download Payment File" button: 51

53 2.8 Finalising a Pay Run When you have finished making changes to your pay run, you can finalise it. Finalising the pay run makes the data in your pay run available in reports and allows pay slips for the pay run to be visible to employees from the employee portal. To finalise a pay run you need to: 1. Open the pay run you wish to finalise 2. From the "Actions" tab click the "Finalise Pay Run" button In the dialogue that drops down: 1. Enter the "Date Paid" 2. Select Pay Slip options. Please note that the system will remember these options selected for pay slips moving forward, if you need to change these you can do so at this step at any time when finalising the pay run. 52

54 Once the pay run is finalised the pay run will be locked. Should you need to edit the pay run you can unlock at any time by selecting the "Pay Run Actions" Tab in the pay run. From here, select "Unlock" Once you select "Unlock", ensure your changes/corrections are made and then select finalise to re finalise the pay run. 53

55 2.9 Publishing Pay Slip Once you finalise pay run, you will see below options for publishing pay slip Do not make pay slips available until the Publish Pay Slips button is clicked Make pay slips available to employees now Publish pay slips at (time) on (date) If you select the second and third option, you will see below options for sending notification Send notifications to employees Do not send notifications If you select Select notifications to employees, Hero Pay will notify employee once pay slip is published, given that pay slip notification setting for the employee is set as or SMS. You can check pay slip notification setting by going to employee s record/ Pay run defaults. For client using Employment Hero and HeroPay Employment Hero users integrated with HeroPay can have payslips automatically imported. Employment Hero routinely checks HeroPay for posted payruns and automatically imports any new payslips, no additional configuration is required. Employees will receive notification via , Mobile app or both once pay slips are available on Employment Hero. Note: If you select Send notification to employees on HeroPay, employees will receive two notifications for pay slip - one from HeroPay and the other from Employment Hero. If employees do not receive notification for pay slip, check company setting and employee setting to see if notification for module has been turned on. Refer to -notification-settings for more information. 54

56 You can also manually import HeroPay payslips into Employment Hero. To do so, navigate to: Settings > Add-ons. Then select update from the actions dropdown under the 'Connected Application' heading. You will then be taken to a new page, showing different types of data that can be manually updated from HeroPay. Select the 'Update from Payroll' button under the Payslips heading, Employment Hero will manually check for any new payslips that can be imported from HeroPay. 55

57 2.10 Generating an ABA file To generate an ABA file, go to Download Payment File You can generate ABA files using the following steps: 1. After you have finalised a pay run, click the Download Payment File ->Download ABA button from the pay run actions bar If you only have one set of ABA setting, your ABA file will download automatically If you have multiple ABA settings you will be asked to select which ABA settings to use Once you ve selected the correct ABA settings, click Generate ABA. We will remember which ABA settings you last used to generate your ABA file and will automatically select it for next time. Including PAYG in Your ABA file You can transfer your PAYG payments via ABA file by following these steps Setting up your PAYG payment account To transfer your PAYG payments via ABA, you first need to setup a PAYG payment account. You can do so by following these steps: 56

58 1. Click on the 'Payroll Settings' menu and then select 'Pay Schedules' 2. Click on the pay schedule you want to process PAYG via the ABA for 3. Click the 'Pay PAYG via ABA to a nominated bank account' option and then fill in the following details for the bank account you want to pay PAYG into: Account Name BSB Account Number Reference If you want to pay your PAYG directly to the ATO, you can enter in the following details: Account Name: ATO Direct Credit Account BSB: Account Number: Reference: Your ATO Direct Credit Reference Number 4. Click Save Once you have entered these details you can generate an ABA file from within the pay run and it will include an additional line for the PAYG payment. 57

59 2.11 Downloading Journal Once payroll is finalised, you can now download the journal by going to the Download Journal button and select the format you require. 58

60 3- Setting up Categories Pay Categories are used to define the rates that employees are paid. Setting up your pay categories will help simplify the management of employee pay rates by: 3.1 Pay Category Automatically calculating linked rates through loading and penalty rate multipliers Configuring super rates Configuring leave accrual You can Create a Pay Category by following these steps; 1. The setting for Pay Categories can be accessed and updated by clicking on the 'Payroll Settings', then select 'Pay Categories': 2. When you create a new business, a few common pay categories have already been created however, you are able to delete these and create new ones that match your business needs. To create a new Pay Category, click on the green ADD button as shown below. 59

61 3. A New Pay Category box will open. Type the name of the New Pay Category in the Pay Category Name box. Then click on the blue ADD button on the bottom right. See Image below 4. Fields in this category include: Name Units - Hourly, Annually, Fixed, or Daily Super Rate - as a percentage PAYG Tax Exempt Accrues Leave Rate Loading - this is loading that is applied on top of the base rate that the pay category is linked to. For example, if you have a base rate of $10 and set a rate loading of 50%, then the linked rate will be $15. Penalty Loading - this is penalty loading that applied on top of the base rate and the rate loading. Payment Summary Classification - this is used for pay categories that need to be reported separately on an employee's payment summary. You can find more information about this here Rate Precision - option to set rate at between 0 and 5 decimal places. Regarding rate precision, please note the following: * Additional earnings lines (configured at the bottom of the employees' pay rates screen) can be specified to up to 5dp, regardless of the pay category setting. * In the pay run, rates may be specified to up to 5dp, regardless of the pay category setting. 60

62 5. Once you have completed the Pay Category, press the save blue button on the bottom left of the screen. Manage Pay Categories In addition to the base value pay category, you can create linked categories. For example, a pay category could have the base value of Part-time weekdays but have linked categories of Part-time Saturday and another one for Part-time Sunday. When a pay category is linked to a base pay category, you only need to specify the base rate for the employee and the rate for the linked pay categories will be automatically calculated. You can create Linked Categories, by following the steps below; 1. Click on the "Add Link Category" button in the bottom right hand corner of the chosen Pay Category. 61

63 2. You will see this screen (see image below) after clicking the Add Link Category button. Type in a name you want to call the linked category, for this example we are calling it Casual - Saturday. Then press the blue Add button. Please note, you could delete the Linked Pay Category before actually using it. If you move your cursor towards the end you will see a figure like this able to delete the new Linked Pay Category. by clicking on this figure you are 3. Once the Linked Pay Category is added you will need to complete the relevant fields. The image below is explained; Units - Pre-populated according to main Pay Category i.e. Hourly Super Rate % - Entered with percentage required by SGS legislation 62

64 Rate Loading % - As per award/employment agreement Penalty Loading % - As per award/employment agreement "Tick" the remaining fields, by clicking on the box adjacent to the field, if you require this function, e.g. Accrues Leave, PAYG Exempt etc. 4. Press the blue Save button in the bottom left hand corner. 63

65 3.2 Leave Category This screen allows you to set up your leave categories and control which of them accrue automatically, how they will behave in the pay run, whether to include them in termination payments, and decide which should appear in your employee's pay slips. The settings for Leave Categories can be accessed and updated by clicking on the Payroll Settings tab on the payroll dashboard, then go to Leave Categories under the Pay Run Settings heading Note: Any changes that are made to your business's leave category settings will not be applied to existing employees, the new settings will only apply "automatically" to any new employees who are subsequently added to your payroll. If you want to change the leave settings for your existing employees you will also need to make the same adjustments on each employee's, leave allowances page. You can do this "in bulk" by using a leave allowance template, then apply that template to each employee's record - this is all explained here... Leave Allowance Templates The default setup for a new business includes 5 Leave Categories: 1. Annual Leave 2. Leave Without Pay 3. Personal/Carer's Leave 4. Time in Lieu 5. Long Service Leave 64

66 You can choose to add more categories by clicking on the green "Add" button to the right of the screen. You will then need to enter the following information: Name (required) External Id - This is only required if you are using an external system to capture leave requests or timesheet entries and hence need to map the code used from such external system; Leave Loading percentage - Used to automatically apply leave loading, such as annual leave loading; Leave Category Type - Dropdown box to choose from 'Standard' or 'Long Service Leave'; Employee Leave Balance - Dropdown box to choose from 'Tracked' or 'Not tracked'. Note: For some types of leave that aren't accrued in the usual way (e.g. leave without pay) it might not make sense for an employee to have a 'balance'. In these cases, you should set this value to 'Not tracked' to tell the system it doesn't need to keep track of how much of this type of leave an employee is entitled to; Automatically accrues - Select this option if the leave is to accrue automatically. You will then be required to choose whether the leave will accrue on an ongoing basis or accrue based on a defined leave year. The leave year can be set as the employee's start date or another specific date. This date is specified via the employee's "Leave Allowances" page; Exclude from termination pay out; Hide accruals from pay slips - Select this option if you do not wish to allow employees to see the amount of leave accrued for this leave category within a pay run on their pay slips; Hide balances from pay slips and in employee portal - Select this option if you do not wish to allow employees to see the balance of this leave category on their pay slips or in the employee portal; 65

67 The following image will only be displayed where leave is set to accrue automatically on an ongoing basis: Standard allowance - Enter the number of hours per hour worked OR hours per pay run the employee is to accrue. You can also click on the calculator icon to assist with calculating the entitlement and ensuring the correct figure is being applied, for example Leave accrual capping - This setting allows you to select whether the number of hours accrued will be capped. If the accrual is to be capped, select "limited to" 66

68 from the dropdown list and then enter the maximum number of hours that should accrue The following image will only be displayed where leave is set to accrue automatically based on the employee's leave year: Standard allowance - Enter the number of hours per hour worked OR hours per pay run the employee is to accrue. You can also click on the calculator icon to assist with calculating the entitlement and ensuring the correct figure is being applied; Accrue in advance - Select this option if you want employees to accrue their whole entitlement in advance. This means that the full annual entitlement will be accrued in the employee s first pay run and will be added to their leave balance; Leave accrual capping - This setting allows you to select whether the number of hours accrued will be capped. If the accrual IS NOT to be capped, select "not limited" from the dropdown list. If the accrual IS to be capped, select "limited to" from the dropdown list and then enter the maximum number of hours that should accrue; Carrying over the balance - This setting allows you to cap the number of leave hours to carry over to the next leave year. If the entire leave balance is to be carried over, keep the default setting of "the entire balance". If only a portion of the leave balance is to be carried over, select "a maximum of" from the dropdown list and then enter the maximum number of hours to be carried over. Payment Setup : This determines whether the employee is paid for the leave taken and the pay category that is assigned when leave is taken. 67

69 Basic: When an employee does not use timesheets, the employee's leave balance will be reduced, earnings are not impacted. When an employee is using timesheets to submit all time worked, an earnings line will be created and the leave balance will be reduced. To check or assign the employee's timesheet setting, go to the employee's 'Pay Run Defaults' page. The timesheets option is near the top of the page. Don't pay for the leave taken: When an employee does not use timesheets, an earnings line with negative hours will be added to reduce the earnings for the employee. When an employee is using timesheets to submit all time worked, no earnings line will be created. Report the earnings for the leave taken against another pay category: When wanting to report payments for leave taken in a separate pay category (for reporting/journaling purposes), select this option. The earnings related to the leave taken will be assigned against the specified pay category instead of the employee's primary pay category. When this alternative is selected, the option will be given to use the rate of pay from the employee's primary pay category. 68

70 Custom: For advanced users only, this option allows the user to deduct hours from an arbitrary pay category and transfer them to another arbitrary pay category when leave is taken. NOTE: We have recently removed the weeks per year and days per year leave accrual methods. So, for all new businesses and businesses that aren t using these accrual methods they will no longer be displayed as an option in the leave category or employee leave allowances pages. If your business is already using either of these leave accrual methods, nothing will change and you will continue to accrue leave as you always have, however we would strongly encourage you to consider switching to the hours per hour worked leave accrual method. 69

71 3.3 Deduction Category To set up a deduction category: 1. Go to Payroll Settings > then "Deduction Categories": 2. There will already be 3 basic deduction categories for you (Salary Sacrifice Super, Pre-Tax Deduction and Post-Tax Deduction) you can edit any of these by clicking on the name of the deduction category. To add a new deduction category, click the green Add button in the top right corner 3. Enter a name for the deduction category, select whether it will be a pre or post tax deduction and use the other settings there if required - click save. 70