Your software can calculate your business' employee payroll, and if desired, print payroll checks. Payroll calculations are made based on information taken from the following items:
Employee payroll settings for income and deductions, including tables for income and deductions.
Product and service sales commission recorded in closed tickets.
Time clock information, if applicable.
Configuration Overview
Before you can run a payroll, your software has to be set up to make payments and enforce payroll deductions for employees. These are configured using the Payroll Configuration screen. It can be reached by selecting Payroll Configuration from the Accounting pull-down menu.
The Select Country screen will appear.
Select your country and click OK. Federal tax tables may be installed or updated.
The Payroll Configuration screen will appear.
There are three types of information for payroll configuration (left column):
Setting: basic inclusion and hours worked settings
Income: set how the money is earned
Deduction: set any number of deductions to be taken out
The Commission System (lower section) has two settings:
Use single commission system: if employees earn commission for the entirety of the sale and use of services and products
Use dual commission system: if different commissions are earned on the original sale and when/if the service is used
Applying Your Settings
Each employee has a vertical column and each line is one of the three types listed in Step 4 of the previous section. The Payroll Configuration window can be expanded to show more employees than the default window size if you have many employees to configure. Adding any setting is as simple as double-clicking the desired row to change for each entry. A screen with the options for each item type will appear.
Double-click the box directly underneath the desired employee that is horizontally in-line with the Include field.
The Include screen will appear.
Select whether or not to include this employee in payroll calculations.
Click OK to return to the Payroll Configuration screen.
Double-click the box underneath the desired employee that is horizontally in-line with the Hours
Worked field.The Hours Worked screen will appear.
Select from the following choices:
Hours based on time clock entries: use time clock entries to calculate hours worked
Prompt me for the number of hours worked for this employee each time I run payroll: set hours based on a prompt before payroll is calculated
Use |___| hours: set a specific amount of hours to be used for each payroll
Click OK to return to the Payroll Configuration screen.
Click OK to save the settings.
Hourly vs. Commission
Since many businesses have a system where the employees are paid based on the greater of either hourly pay or commission pay in a pay period, the payroll system in your software is able to calculate this for you automatically.
Set up the Service Commission and Product Commission for the desired employee. See the article here for more on setting up commissions.
Double-click on the Hourly field for the same employee.
Select Rate of |___| per hour and enter the employee's wage. Or select Based on hourly table depending on hourly pay rate.
Check the Use product and service commission amount, if greater box.
Click OK.
Payroll for this employee will be calculated from either commission amounts or hourly wages, not both. When payroll is run, if the employee's total commission pay (service commission + product commission) is greater than the hourly pay over that time period, the employee's hourly pay will be set to zero for this pay period and only the commission pay will be paid. Otherwise, if the hourly pay is greater than the total from both commission amounts, the two commission amounts will be set to zero and the hourly total will be paid.