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When you set up an organisation you will be led through a series of steps to set up all the necessary information, people, tax options, etc. etc.
Most of the fields on the Organisation Set Up page are fairly self explanatory. Where necessary you can follow the links on that page for more information.
If you are setting up a new Organisation, you should go to the Getting Started page. (If you are setting up your own organisation rather than looking at our Sample Company, this page will contain a series of steps to follow rather than a story about our Sample Company).
Other useful help information to get you started includes:-
When setting up an organisation, you can also set up the following details:-
Account Codes are an optional feature that allow you to analyse your payments and deductions and transfer journals to a General Ledger (Accounting program), providing an electronic interface to your financial system.
Note: To use account codes, costing must be enabled. (In Angling Adventures (Demo), costing is currently enabled).
For an example of a journal see the sample GL Postings Report.
Follow these steps to set up Account Codes.
In your Account Codes page there are a number of Clearing Accounts that are used by the accounting features.
| Payroll Clearing |
Note: Leave this account blank if you do not operate a
Payroll Clearing Account in your General Ledger.
Enter the account code for your Payroll Clearing Account. The GL Postings will then contain an extra debit and credit transaction to this account. The credit will be for the total charged to each cost centre, and the debit will be the total of all deductions (including tax and nett pay, etc). These will almost certainly be for the same amount, leaving a balance of zero in your Payroll Clearing account. (Any residual balance will need to be investigated and cleared). |
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| Bank Account | This is a 'catch-all' account code for any bank deductions that do not have a specific account code specified. |
| Tax Account | This is a 'catch-all' account code for any tax deductions that do not have a specific account code specified. |
| Cheque Account | This is a 'catch-all' account code for any cheque deductions that do not have a specific account code specified. |
| Cash Account | This is a 'catch-all' account code for any cash deductions that do not have a specific account code specified. |
| Employer's Superannuation Contribution (ESC) | |
| DR: ESC Gross | Enter the account code to charge superannuation subsidies to. Tip: If you leave this account code blank, superannuation subsidies will be charged to each persons default cost centre. This is useful if your organisation charges superannuation against each cost centre rather than to a single specific account. |
| CR: Employer's Superannuation Contribution Tax (ESCT) |
Enter the account code to credit the Employer's Superannuation Contribution Tax
(ESCT) to. (See
Superannuation Subsidy
help for more information).
Note: This is part of the "contra" entry to ESC Gross. The remainder (i.e. the ESC Nett amount) is credited to the Cost centre defined on the ESC Deduction. |
| Overpayments Clearing |
Enter the account code to post any Overpayments Raised to.
Overpayments are raised when you reverse out transactions, (using a negative quantity on the timesheet), resulting in a net debt rather than a net pay to a person. (See Overpayments and Recovery for more information). |
| Cash Roundings Clearing |
Note: You can leave this account blank if you do not make any
Cash payments.
If you make any Cash payments, the person pay will be rounded to avoid you having to handle small denominations. The amounts advanced for these cash roundings will be posted to this account. |
| Leave Provision |
Note: You must tick the "Post Leave Provisions" checkbox to enable this feature.
Leave Provisions can be posted on your GL Postings report if desired. Enter the Account Code to debit the leave provision to here. The credit entries will be posted to the account codes for your AL-ENT - Annual Leave Entitlement transactions. |
| Tax Split |
Note: Usually leave this account code blank. The Gross Pay will be credited to each cost centre.
Gross Payments debited to each Cost Centre can split between Nett and Tax amounts. Enter the Account Code to debit the tax split portion to here. (A template can be used to split the Tax to different cost centres). The Nett pay portion will still be debited to the accounts specified against each payment. The credit entries will be posted to the account codes for your Tax Deductions. |
Tip: Generally, if you leave one of these accounts blank, any
postings to that account will go to the Payroll Clearing Account instead. (However,
read the description above for each account, as some have special rules).
Costing is an optional feature thats allows you to track and report payroll costs
in various categories called Cost Centres.
The Costing features also allow the transfer of journals to a General Ledger
(Accounting program), providing an
electronic interface
to your financial system.
Note: In Angling Adventures (Demo), costing is currently
enabled
Follow these steps to set up Costing:
When you enter timesheets, a drop-down list of cost centres is displayed so you can easily pick the
correct cost centre. However this can get unwieldy when you have lots of cost centres.
The Timesheet Input Method lets you change the timesheet entry page so
that you can type in a cost centre instead of selecting it from the list. This can be much faster
if you have lots of data entry. Using this option (called "Pop-Up Window"), you can still get a list
of all cost centres by clicking the '...' link after the input box.
You can set up your own special Deductions to supplement the many standard
deductions that are set and and maintained for you by iPayroll®. Your own special
deductions allow you to easily calculate and deduct any unique deductions
that are used within your organisation.
Tip: Before setting up your own deduction, please check that no
standard deductions already do what you need.
To set up a special deduction follow these steps:-
Each Deduction contains a number of pieces of information that control how the deduction
is calculated and paid.
Cost Centres
Setting Up Costing
Costing Options
Deductions
Adding a Deduction
The Deduction Code appears in the drop-down list when you add transactions to
timesheets. You should use a short, easy to type, code that you can remember
easily. (If you are used to another payroll system that has deduction codes
or numbers, you may like to use those for your deduction code).
Information on a Deduction
| Description | Enter a description that will clearly describe to a person what
this deduction is for. This is displayed on peoples timesheets and payslips.
Note: If you include %rate% in your description, it will be replaced by the transaction's rate on the person's payslip. |
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| Calculation Rule | Select the appropriate type from the list. This is the main
way to determine how a deduction is calculated.
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| Rate Amount | This entry depends on the Rate Type selected (above).
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| Priority | Leave this blank, and an appropriate priority will be generated for
you. (You will only rarely have to change the default priority).
The priority determines the order in which deductions are calculated, paid and displayed on timesheets and payslips. This order is quite important for standard deductions - for example tax must be deducted at the appropriate point and a remaining pay deduction must be made right the the end. Fortunately, the order of your special deductions is not too important and you will often just accept the default priority. If you are concerned about the order that deductions are made, review the priority numbers on your deduction page and change them as required. Priorities are significant when a person doesn't have enough pay to make all their deductions, ones with smaller priority numbers will be made first. |
| Payment Method |
Select an option to determine how the actual money for this deduction is paid.
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| Bank Details | Enter the Bank Account, Payee Particulars, Payee Code and Payee Reference required for this deduction. (Obviously this is only required where the Payment Method is Bank). This information will be available from the organisation you are making this deduction for. |
| Cost Centre |
Note: This is only displayed if you have the
costing features
turned on.
Select how this deduction is to be costed. You have four options:-
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| Deduction Type | Select the one that best describes this deduction:-
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| Allow Partial Deduction | Tick this box if part of the amount should be deducted, even if the person doesn't have enough remaining pay to make the entire deduction. (Note: Always tick this for a reducing balance deduction, otherwise the final deduction made to clear the balance may not be made). |
| Reducing Balance Deduction |
Tick this box to make this deduction a Reducing Balance deduction.
These deductions require that you enter a Balance when setting up the deduction. The deduction will be made as usual, and the balance will reduce. When the balance reaches zero, the deduction will automatically stop. (Read the Tax Arrears help for an example of a reducing balance deduction). |
iPayroll® fully complies with the Holidays Act 2003 (in force from 1-Apr-2004) and allows you to correctly calculate and record all entitlements, leave taken and payments.
If you are interested in details on the new Act, The Employment Relations Service has a very clear set of Holiday Fact Sheets.
For more information please Contact Us.
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You can set up your own special Leave to supplement the many standard leave types that are set and and maintained for you by iPayroll®. Your own special leave allows you to easily calculate and pay any unique leave types that exist in your organisation's employment contracts.
Tip: Before setting up your own leave, please check that no standard leave already does what you need.
To set up special Leave follow these steps:-
The Leave Code appears in the drop-down list when you add transactions to timesheets. You should use a short, easy to type, code that you can remember easily. (If you are used to another payroll system that has Leave codes or numbers, you may like to use those for your leave code).
Each Leave page contains a number of pieces of information that control how the leave is calculated and reported. What appears depends on whether you are setting up a Leave Entitlement or Leave Taken. Select the appropriate link for details.
Sick Leave, Bereavement Leave and Alternative Holiday leave balances may be recorded in days. There are several additional features for Leave in Days.
Additional infiormation is available on setting up
Long Service Leave.
Leave Entitlement
| Description | Enter a description that will clearly describe to a person what
this leave is for.
Note: If you include %rate% in your description, it will be replaced by the transaction's rate on the person's payslip. |
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| Default Cost Centre |
Note: This is only displayed if you have the
costing features
turned on.
Select how this leave is to be costed. You have three options:-
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| Leave Type | Select the leave type that best describes this entitlement.
Note: If you require separate balances for different "Other Leave" types, enter a Balance Name. |
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Entitlement Rules | |||||
Entitlement Rules control how and when a person is given additional leave entitlements.
Correctly setting up leave rules can automate a lot of leave recording and balancing.
To set up Leave Rules:
Enter the appropriate details and press the Add button. |
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| Entitlement Given After | This is how long a person must be employed before getting this leave entitlement. For example, often people must be employed for 6 months before receiving a Sick/Special leave entitlement. | ||||
| And Then Every |
Often leave entitlements are given on a regular basis (e.g. annually). Enter the frequency here.
Entering 0-0 means that this entitlement is given only once. Entering 1-0 means that this entitlement is given every year. |
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| Entitlement Due | This is the actual amount of leave entitlement that is given to the person by this rule. | ||||
| Maximum Entitlement | This is the maximum leave entitlement that will be allowed when a new entitlement is given. For example, often Sick/Special leave has a maximum value (e.g. 5 days given each year, non-accumulating, or sometimes 5 days per annum to a maximum of 40 days). | ||||
Accrual Details | |||||
| The accrual fields are usually only required for Annual Leave. Usually enter No Accrual and 0%. See Annual Leave Entitlement for more details. | |||||
| Basis for Accrual |
The hours accrued each pay period is always based on the actual number of hours recorded on the timesheet.
Actual: The "Actual" method uses this figure when performing a leave anniversary rollover. Standard: The "Standard" method ignores the accrual figure on the person's rollover (except when the rollover is for less than a full year) and instead gives the person the entitlement due figure. |
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| Accrual % |
This is the percentage at which the accrual is valued at.
(It is used for Annual Leave liability calculations).
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| Description | Enter a description that will clearly describe to a person what
this leave is for. This is displayed on peoples timesheets and payslips.
Note: If you include %rate% in your description, it will be replaced by the transaction's rate on the person's payslip. |
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| Multiplier | Enter 1.0. The amount calculated is multiplied by this multiplier, and it should always be 1.0 for practically any leave. |
| Calculation Rule | Select the appropriate type from the list. This is the main
way to determine how leave taken is paid.
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| Rate Amount | This entry depends on the Rate Type selected (above).
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| Priority | Leave this blank, and an appropriate priority will be generated for
you. (The default priority is rarely changed, in practice).
The priority determines the order in which transactions are calculated, paid and displayed on timesheets and payslips. Often this order isn't important, but sometimes calculations depend on other payments in the same timesheet. (e.g. a payment that is calculated on a percentage of Taxable Earnings must be calculated after all Taxable Earnings have been calculated). |
| Default Cost Centre |
Note: This is only displayed if you have the
costing features
turned on.
Select how this leave is to be costed. You have four options:-
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| Leave Type | Select the category that best describes this leave.
Note: If this is an "Other Leave" type, you can select the appropriate leave balance to update from the Balance Name drop-down list. (Set up the Leave Entitlement first to create a new Balance Name). |
| Tax Type | Select the one that best describes this payment type.
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Multiple Users can be set up within each organisation, with differing security access as required.
For security purposes, we set up additional users on your behalf. Please contact us if you want us to set up additional users for your organisation.
You can set up your own special Payment elements to supplement the many standard payments that are set and and maintained for you by iPayroll®. Your own special payments allow you to easily calculate and pay any unique allowances or other payment types that exist in your organisation's employment contracts.
Tip: Before setting up your own payment, please check that no standard payments already do what you need.
To set up a special payment follow these steps:-
The Payment Code appears in the drop-down list when you add transactions to timesheets. You should use a short, easy to type, code that you can remember easily. (If you are used to another payroll system that has allowances codes or numbers, you may like to use those for your payment code).
Each Payment contains a number of pieces of information that control how the payment is calculated and reported.
| Description | Enter a description that will clearly describe to a person what
this payment is for. This is displayed on peoples timesheets and payslips.
Note: If you include %rate% in your description, it will be replaced by the transaction's rate on the person's payslip. |
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| Multiplier | Enter 1.0, unless the Payment is for overtime or penal time. The amount calculated is multiplied by this multiplier, and it should always be 1.0 except for overtime / penal time payments. (e.g. T1.5 - Time and a Half). |
| Calculation Rule | Select the appropriate type from the list. This is the main
way to determine how a payment is calculated.
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| Rate Amount | This entry depends on the Rate Type selected (above).
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| Priority | Leave this blank, and an appropriate priority will be generated for you.
(You will only rarely have to change the default priority).
The priority determines the order in which payments are calculated, paid and displayed on timesheets and payslips. Often this order isn't important, but sometimes payment calculations depend on other payments in the same timesheet. (e.g. a payment that is calculated on a percentage of Taxable Earnings must be calculated after all Taxable Earnings have been calculated). See the Payments page for a list, in priority order. |
| Default Cost Centre |
Note: This is only displayed if you have the
costing features
turned on.
Select how this payment is to be costed. You have four options:-
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| Liable Earnings | Tick all that apply to this payment type.
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| Earnings Type | Select the one that best describes this payment type.
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Reporting Groups are a powerful feature that allow you to set up your own table-driven reporting fields for your people. Once you have set up your reporting groups, you can record them against each person by going to their details.
Reporting Options |
User Defined Fields
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Reporting Groups
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Reporting Groups are often used for Human Resource related reporting. For example they could be used for these purposes:-
When you set up a new category of Reporting Groups, a new report is automatically created on your Personal Reports.
You can view and change your own Reporting Groups. You can then record them against each person on your Current People.
The power of Reporting Groups is that you can define exactly what information is recorded on Personal Files. Only reporting groups that you have previously set up can be used.
This information is then an ideal basis for reporting, as the details on your staff's personal files are consistent.
Special pre-defined Reporting Groups have additional fields to let you manage extra information.
To record Emergency Contact Details against your people:-
To record additional Position Details against your people:-
To record Emergency Contact Details against your people:-
To record a Termination Reason when a person finishes:-
To calculate Pay Rates that vary from person to person iPayroll® contains a powerful feature to let you define your own pay rate tables based on a Reporting Group:-
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You can set up special deduction codes to manage any personal or company superannuation schemes.
Note: KiwiSaver deduction codes are already set up for you with the appropriate rules. See KSE - KiwiSaver and KSR - KiwiSaver Employer Contribution.
Simply set up a deduction to record details of the person's superannuation deduction.
Note: Select the 'Standard Deduction' Deduction Type when creating this deduction.
Where the organisation makes a contribution (subsidy), it is necessary to set up a second deduction code to record details of the subsidy. The person will be given two deductions on their Timesheet Template - one for their contribution and one for the subsidy.
Note: Select the appropriate 'Super Subsidy' option for this deduction's Deduction Type. As well as identifying this as a superannuation subsidy, it also ensures that the correct Contribution Tax (ESCT) is calculated.
Superannuation information can be found on several reports:-
Often people contribute at different percentage rates into the same superannuation scheme.
If this occurs, set up the superannuation deductions to calculate at 1%
(i.e. enter 1.00 into the Rate Amount field).
Then enter the person's individual percentage in the Quantity
field on the person's deduction on their Timesheet Template.
User Defined fields allow you to choose your own sort field for your people.
Once you have set up your user defined fields, you can record them against each
person by going to their Personal Details.
User Defined Field
Reporting Options |
User Defined Fields
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Reporting Groups
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User Defined fields are often used for Locations, Branches or Departments. For example, in our sample company the User Defined field is called Workplace, and the following have been created:-
You can view and change your own User Defined Fields. You can then record them against each person on your Current People.
You have the option to sort your payslips by your User Defined Field. This may make it quicker and easier to distribute them - especially if you have a reasonable number of them.
To sort your payslips, go to the User Defined Fields page, tick the Print Payslips in Workplace order box, and then press the 'Save User Defined Field Options' button.
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To override the percentage on individual people,
enter the Rate Amount as 1.0 and then enter the actual percentage for each person into the