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Setting Up Sage HRMS Payroll Checklist

For additional information and a printable guide with setup checklist, see the .

How to Set Up Payroll in Sage HRMS Payroll

Step 1: Prepare your payroll data.

If you are moving from a manual payroll system or from another computerized payroll system to Sage HRMS Payroll, gather all records from your current system, including printed listings and reports.

Step 2: Set Up General Ledger accounts.

Select Setup > Payroll > General Ledger > Create Accounts, add the accounts you need for your payroll processing, including the Salary and Wages Payable account(s), the Suspense account, and all the other expense and liability accounts related to your payroll.

Step 3: Set up bank information and check stock.

Use the Banks and Bank Options windows in Setup > Payroll > Bank Servicesto set up bank accounts, related default information, and the default check stock (forms format) to be used in Sage HRMS Payroll.

Step 4: Set up payroll processing defaults.

From Payroll Setup, choose Options to select basic processing options and define the general ledger segments used to build Payroll cost centers. Enter a valid tax number (Employer Identification Number or EIN) in the Tax Number field. This is a required field as the Sage Payroll Tax Forms and eFiling by Aatrix electronic filing feature is included with Sage HRMS Payroll which uses this information and enables you to file tax forms electronically from a Sage HRMS Payroll client workstation.

Step 5: Set up Payroll G/L integration.

From Payroll Setup, choose Payroll G/L Integration to specify how your Payroll system should integrate with your General Ledger.

Step 6: Set up optional fields (optional).

You can set up optional fields that allow you to store additional information in payroll records and transactions.

Step 7: Set up class codes (optional).

From Payroll Setup, choose Class Codes to set up employee classes for processing and printing reports.

Step 8: Set up earnings, deductions, and other pay factors.

From Payroll Setup, choose Earning/Deduction Codes to define earnings, deductions, benefits, accruals, and expense reimbursements for assignment to employees.

Step 9: Set up workers' compensation codes.

From Payroll Setup, choose Workers' Compensation Codes to set up and produce data for the workers' compensation reports required by insurance companies.

Step 10: Set up overtime schedules (optional).

From Payroll Setup, choose Overtime Schedules to define pay rates for overtime hours.

Step 11: Set up shift differential schedules (optional).

From Payroll Setup, choose Shift Differentials to define pay rates for shift workers.

Step 12: Set up work classification codes (optional).

From Payroll Setup, choose Work Classifications to define occupational classifications for employees.

Step 13: Set up income taxes.

From Payroll Setup, choose Income Taxes to select applicable taxes for assignment to employees.

Step 14: Set up employee payroll records.

Open the Employee Payroll window to add each employee with associated earnings/deduction information, associated tax information, and employee-specific general ledger account posting information.

Step 15: Enter employee historical payroll data.

From Payroll Tasks, choose Transaction History to enter historical data from your previous payroll system. The Transaction History function allows you to enter payroll history for any historical periods and this information is recorded in the system for tax purposes.

Step 16: Set up employee selection lists (optional).

From Payroll Tasks, choose Employee Selection to create lists of employees that you can use when calculating payroll and printing reports.

Step 17: Set up Common Deduction limits (optional).

From Payroll Setup, choose Common Deduction Limits to associate multiple payroll deductions based on a single limit and ensure that employee deductions do not exceed defined maximums.

Step 18: Set up EFT (direct deposit) of paychecks (optional).

You can set up your Sage HRMS Payroll system to directly deposit payroll checks into your employees' bank accounts using EFT (electronic funds transfer).

Step 19: Back up your company data.

Create a backup of your company data. It is recommended that you create and store backups of your company data on a regular basis. If something should happen to your data, you can restore it from the backup instead of having to re-enter the information.