Setting up Sage HRMS Payroll Checklist

For additional information and a printable guide with this setup checklist, see the Sage HRMS Payroll Getting Started Guide.

How to set up Payroll in Sage HRMS

Perform the setup steps in the following order. Some of the steps have dependencies on the setup of core items, such as General Ledger and Bank Services.

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 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 accounts, 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 Services to set up company 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.

Select Setup > Payroll and 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) for Tax Number; this is a required for the Sage Payroll Tax Forms and eFiling by Aatrix electronic filing feature that is included with Sage HRMS Payroll so you can file tax forms electronically from a Sage HRMS Payroll client workstation.

Step 5: Set up Payroll G/L integration.

Select Setup > Payroll and choose Payroll G/L Integration to specify how your Sage HRMS Payroll system should integrate with your General Ledger.

Step 6: Set up optional fields (optional).  

Select Setup > Payroll > Optional Fields to set up optional fields to store additional information in payroll records and transactions.

Step 7: Set up class codes (optional).  

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

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

Select Setup > Payroll and choose Earnings and Deductions to define earnings, deductions, benefits, accruals, and expense reimbursements that can be assigned to employees.

Step 9: Set up workers' compensation codes. 

Select Setup > Payroll and 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). 

Select Payroll Setup and choose Overtime Schedules to define pay rates for overtime hours.

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

Select Setup > Payroll and choose Shift Differentials to define pay rates for shift workers.

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

Select Setup > Payroll and choose Work Classifications to define occupational classifications for employees.

Step 13: Set up taxes.  

Select Setup > Payroll and choose Federal and State Taxes (U.S.) or Income Taxes (Canada) to select federal and applicable state income taxes (and any other taxes supported by Sage HRMS Payroll tax updates) for assignment to employees.

Step 14: Add local and other tax codes.  (applies to U.S. Payroll only)

Select Setup > Payroll and choose Local and Other Tax Codes to set up system-supported local taxes (such as a city LST or Local Services Tax) or to create payroll taxes that you maintain yourself when rates change.

Step 15: Set up employee payroll records.

Select Employees > Tasks > View/Edit  Employee and choose Employee Payroll to add each employee along with associated earnings/deduction information, associated tax information, and (if applicable) employee-specific general ledger account posting information.

Step 16:  Enter employee historical payroll data.

Select Payroll > Tasks and choose Transaction History to enter historical data from your previous payroll system. Use this Transaction History function to enter payroll history for any historical periods so it is available for tax purposes.

Step 17: Set up employee selection lists (optional).

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

Step 18: Set up Common Deduction limits (optional).

Select Setup > Payroll and 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 19: Set up 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 20: 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.