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Special Pays

Sometimes it is necessary to run a payroll outside of the normal weekly / fortnightly / monthly cycle. To run such a payroll:-

1. Go to the Open a new Payroll page
2. Select the Open a One-Off Payroll.
3. Enter the Pay Day
4. Press the 'Open a One-Off Payroll' button.
   (Then the Enter Timesheets page will be displayed).
5. Press the 'Add a new Timesheet' button.

Special Pays may be run for many reasons, which are discussed below.

"Empty" Timesheets

When entering Special Pays you may want to start with "empty" timesheets. For example, when making one-off bonus payments you will want an "empty" timesheet that doesn't include the person's Ordinary Time or any deductions (such as second bank accounts or union fees).

To add an "empty" timesheet, choose the Special Pay ("Empty" Timesheet) option on the Add a new Timesheet page. This will save you having to manually delete the extra transactions.

To make adjustments to a person's pay, you can either include them in the next payroll that you process, or else you can open a one-off payroll (which is sometimes called an "out-of-cycle" pay).

When you have an Open Payroll, enter the appropriate transactions on the persons timesheet. For example:-

To Pay...	Enter...
Pay 3 hours overtime missed from the last pay:	Quantity 3.00 Payment T1.5
Change the ordinary hours paid from 32 to 36 (incorrectly recorded last pay):	Quantity 4.00 Payment T1
Record 1 day Annual Leave from last pay, just advised: Note: In this example, we have to remove the T1 hours already paid, and replace them with the correct Annual Leave hours.	Quantity 8.00 Leave AL Quantity -8.00 Leave T1
Record an extra weeks pay for a person, who recently started and was missed last pay Note: If this is paid along with the person's next normal weekly pay, also change the PAYE quantity to 2.0 (2 pay periods), to calculate the correct tax.	Quantity 40.00 Leave T1

Leave Adjustments

The easiest way to change or remove leave that was recorded in an earlier pay is to follow the instructions on that person's Leave History page. (See a Sample Leave History).

You can also change or remove leave by entering the appropriate transactions on the person's timesheet, but the Leave History page will automatically create the correct transactions for you.

Advances

The person will no longer be paid until this date passes. (The persons Timesheet Template will not be copied over when opening as payroll, but you can still Add a Timesheet if you do need to make any payments before this date).

2. Adjust the Tax Calculation

1. Select the PAYE transaction on the person's timesheet.
2. Change the Quantity to be the number of pay periods that are being advanced.
3. Press the Change this Transaction button.

The correct tax will now be calculated. If this step is not performed, the person may be taxed too much as their earnings for this pay will be higher than usual.

Backpays

See the help for the Standard BACKPAY Payment for details.

Bonus Payments

Bonus payments can either be processed as part of a person's normal payroll, or as a separate one-off payroll.

Bonus payments that you make irregularly, such as Christmas bonuses, are taxed at the lump sum rate.

To make a Bonus payment, add a BON - Bonus transaction to the person's timesheet. Typically use a Quantity of 1.00 and enter the amount of the bonus into the Rate field.

Final Pays

Final Pay Payrolls

Final pays are always processed in a payroll, just like any other payments. Depending on when the person is finishing, you have several options.

• If the final pay is to be made on the same pay day as your normal payroll, include the final pay with your usual payroll.
• If the final pay is to be made after your normal pay day, process and confirm your normal payroll as usual. Then open an one-off payroll to calculate the final pay.
• If the final pay is to be made before your normal pay day, and you haven't started your normal payroll, open an one-off payroll to calculate the final pay. Then you can process and confirm your normal payroll as usual.
• If you have a "sudden" termination, and you have to make up a final pay, but are in the middle of processing your normal payroll for a later payday, you will have to do a manual payment.
  1. Process the person's final pay within the normal payroll you are working on.
  2. Change the person's remaining pay transaction (the very last entry on their timesheet) to CHEQUE. (This will remove the person's pay from the banking schedules, ensuring that the person isn't paid this amount in the normal banking).
  3. Manually pay the person their final pay, either via a cheque or by transferring the money into their bank account yourself (i.e. not through our services).

Reinstating a Person

A person who has not finished, or has returned to work can be reinstated.

1. Go to the Person's "Reinstate" tab, within the People Menu, and press the "Reinstate Person" button.
2. Review the Person's Personal Details page, updating information as required.
   (e.g. the person may now have a different bank account, if they left some time ago).
3. Review the Person's Leave Balances page.

1. Open a new Payroll, entering your future Pay Day.
2. Enter, Print and Confirm your payroll as usual.
3. Contact us and we will close this payroll immediately so you can open your next normal or advanced payroll.
4. We will create your banking files dated in advance so the payroll will still be paid on the correct date.

Note: Once the payroll has been closed no transactions in this payroll can be changed. You can make any changes in a new pay run.

Processing Dates

	Pay Day	Holiday		Confirm By
Sun	12-Feb-2012		Fri	10-Feb-2012	noon
Mon	13-Feb-2012		Fri	10-Feb-2012	noon
Tue	14-Feb-2012		Mon	13-Feb-2012	noon
Wed	15-Feb-2012		Tue	14-Feb-2012	noon
Thu	16-Feb-2012		Wed	15-Feb-2012	noon
Fri	17-Feb-2012		Thu	16-Feb-2012	noon
Sat	18-Feb-2012		Fri	17-Feb-2012	noon
Sun	19-Feb-2012		Fri	17-Feb-2012	noon
Mon	20-Feb-2012		Fri	17-Feb-2012	noon
Tue	21-Feb-2012		Mon	20-Feb-2012	noon
Wed	22-Feb-2012		Tue	21-Feb-2012	noon
Thu	23-Feb-2012		Wed	22-Feb-2012	noon
Fri	24-Feb-2012		Thu	23-Feb-2012	noon
Sat	25-Feb-2012		Fri	24-Feb-2012	noon
Sun	26-Feb-2012		Fri	24-Feb-2012	noon
More >>

1. Open a one off payroll.
2. Record the details of your manual pay on the person's timesheet.
3. Check and adjust the calculations so that the correct values are calculated.
   (In particular, check the tax calculation. Override the figures we calculate if you have deducted different figures in your manual payment).
4. Remove any deductions or standard hours from the timesheet that don't apply.
5. Change the person's remaining pay transaction (the very last entry on their timesheet) to CHEQUE.
   (This will remove the person's pay from the banking schedules, ensuring that the person isn't paid this amount a second time).
6. Review your Cheque Schedule and double check that the amount here is the same as your manual payment.

When this payroll is confirmed and closed, all records will be updated to include details of your manual payment. By changing the person's timesheet to a CHEQUE, no banking files will be created. Obviously you will not actually draw a cheque, as you will have already paid the person.

1. Open a one off payroll.
2. Re-enter the transactions that were overpaid, using a negative value for the quantity. (e.g. if you overpaid 3 hours T1.5 last pay, enter -3.0 T1.5 this pay).

This will correctly reverse out the overpayments, and recalculate the correct tax adjustments etc. The resulting pay for this person will be negative, and details will be shown on your Overpayment Schedule.

While the persons pay records are now updated, you will still have to recover the money that was overpaid.

Recover any Money

Sometimes the person overpaid will repay the money themselves, for example they may provide a personal cheque for the amount they were overpaid. Then you do not have to do anything special to recover the money - just follow the steps above to record details of the overpayment.

In other circumstances you may come to some arrangement to recover the overpayment from the person, typically they agree to repay a regular amount out of their pay until the overpaid has been fully repaid.

In that case, you can set up a reducing balance deduction on their Timesheet Template. This will automatically recover the overpayment at the agreed amount, and automatically stop when the overpayment has been fully repaid.

To recover money via a reducing balance deduction:-

1. Select the Person from your People.
2. Go to their Timesheet Template
3. Add an ORG deduction.
4. Enter the per pay repayment amount in the Rate field.
5. Enter the total amount to recover in the Balance field.

- The Internet Payroll Service for New Zealand

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