1. PowerPoint Slides to accompany Copyright © 2013 by Nelson Education Ltd.

2. Processing PAYROLL Transactions Premium 2012

3.  The Payroll Cheque Run 3  Income Detail 4  Deductions Detail 5  Taxes Detail 5  Processing Individual Paycheques  (Payroll Journal) 8  Remitting Payroll Source Deductions 11  Processing Vacation Pay 13  Recording Accrued Wages 14  Processing T4 Slips 15  PAYROLL Reports 17 Contents Slideshow 7B

4. Entering PAYROLL Transactions Once the PAYROLL module is set to READY, you can start processing your company payroll!. Session Date Setting the Session Date in the PAYROLL module is different from the other modules. The PAYROLL module will use the Session Date as the processing date regardless of the Period Ending date you enter. Tax Tables Sage Simply Accounting uses tax tables issued by the Canada Revenue Agency when processing payroll transactions. Simply uses the Session Date to determine which tax table to use. Click and study the information at the right about Tax Tables. Click to continue.

5. Employee Time Sheets Companies have their own way of keeping track of employees’ work data. For discussion purposes, we will use one common way, through timesheets. Study the timesheet at the right. This employee is paid on an hourly basis. According to her Time Sheet, she had worked 80 regular hours and no overtime hours. Click. Her income is automatically calculated based on the hourly rate specified in her Payroll Ledger. According to her Payroll Ledger, she is paid $20 for each regular hour she works, to a maximum of 80 hours and $30 per hour for overtime. Click. The deductions are based on the information on the Deductions Page of her Payroll Ledger. Click to continue.

6. The PAYROLL Cheque Run Processing PAYROLL with Simply is done using the Payroll Cheque Run. Click the Payroll Cheque Run icon. Simply automatically prepares a payroll run journal entry using the default data entered in each employee’s Payroll Ledger and the timesheet information you enter for the pay period. Click the numbers in chronological order.         By default, Simply creates a payroll run journal to Pay multiple employees. If you wish to pay only one employee, you would select Pay one employee. You will learn more about paying one employee at a time later in this slideshow.  You need to fill in or select the bank account the payroll should be Paid From and the Starting Deposit Number (if the company uses Direct Deposit). The next cheque number available in the system automatically appears in Starting Cheque Number, but can be changed if necessary.  Period End Date is the end of the pay period. It is usually the same as Cheque Date, but when the pay period end falls on a holiday, the cheque date may be different.  The By Pay Period Frequency box specifies the employees matching the Pay Periods Per Year box in the Payroll Ledger.  Auto-Select has three options: -Not Yet paid on this Cheque Date – used for those paid 52, 24 or 26 times per year. -All for this Cheque Date – used when all employees are paid on the current pay period frequency. -All Employees – used when you wish to select all employees regardless of the pay period frequency.  This TOTALS line summarizes the various amounts for the salaries that will be paid out on the specified pay date.  Cheque Details - This section provides payroll details for the employees paid in the cheque run. Cheque Details will be discussed in the next slide. Click to continue.  This is called the Payroll Run Status Bar. It allows you to refine your employee selection that should be paid.

7. Cheque Details At the right shows the Income page of the cheque details for Doreen David. This employee is paid on an hourly basis. According to her Time Sheet, she had worked 80 regular hours and no overtime hours. Click. Her income is automatically calculated based on the hourly rate specified in the Payroll Ledger for the particular employee. Click. Study the items under Other Amounts. Click the DEDUCTIONS tab and study it. Click the TAXES tab and study the deductions for taxes. Click the ENTITLEMENTS tab. Nothing shows for this employee except the hours worked this pay period. Click to continue.

8. Payroll Run Journal Entry If you display the Payroll Run Journal Entry, you will find a separate journal entry for each employee paid for the cheque run. This example is for Doreen David. Click and study the items that are directly taken from the Payroll Run Journal and Cheque Details. Click on each of the numbers below.     Click to continue.  Wages Expense = Gross pay + Vacation Payable  EI Expense = The employer`s portion of Employment Insurance. EI Payable is what the company needs to remit to the government. It is equal to the employee`s deduction + employer`s contribution.  CPP Expense = The employer`s portion of the Canada Pension Plan. CPP Payable is what the company needs to remit to the government. It is equal to the employee`s deduction + employer`s contribution.  WSIB Expense = The employer`s premium for Workplace Safety Insurance for the specific employee. WSIB Payable is what the company needs to remit to the government.

9. Entering Payroll Transactions: Processing a Single Paycheque If you need to process individual paycheques (in case you miss any in the normal paycheque run, if an employee is taking or re-paying an advance, or if you made a mistake in the original paycheque), you would use the Payroll Journal. Click Create PayCheque now. When the Payroll Journal appears, you would select the employee name from a drop-down list. Click. In this example, a pop-up indicates that employee selected has a payroll loan of $30. This is a result of a note in Field 1 of the Additional Info page of the employee where the box to “Display this information when the employee is selected in a transaction” on Jordan Currie’s Payroll Ledger is checked. Click Close on the Additional Info Note.

10. Entering Payroll Transactions: Processing a Single Paycheque Study the time sheet for which you want to process a paycheque. Click. The INCOME Page of the cheque details should look like this. The Commission Earned is $1,385.00. Vacation Accrued = 4% of commission earned ($55.40). NET PAY amount of $1,517.50 includes the loan of $600.00. Click. Study the DEDUCTIONS Page. Click. Study the TAXES Page. Click to continue. INCOME Page DEDUCTIONS Page TAXES Page

11. Processing a Single Paycheques (continued) The Payroll Journal Entry Study the resulting Payroll Journal Entry for Jordan Currie’s paycheque. Notice the following: -$600.00 cash advance has been recorded as a debit to LOANS RECEIVABLE. -Wages Expense = Vacation Payable. -EI and CPP Expense are the company’s portion of EI and CPP Payables. -Bank Account Chequing = net pay. This is the amount that will come out of the company’s bank to cover the paycheque. -WSIB Expense is the company’s cost for Workplace Safety Insurance for this employee. WSIB Payable is the amount that the company needs to remit to the Government. -Everything else is as shown on the cheque details. Click to continue.

12. Remitting Payroll Deductions As an employer, you have to remit the CPP contributions, the EI premiums, and income tax deducted from your employees' income, along with your share of CPP contributions and EI premiums. These deductions, along with your remittance form, must be received by the CRA on or before your remittance due dates. Due dates vary depending on the type of remitter you are. For more information, see http://www.cra- arc.gc.ca/tx/bsnss/tpcs/pyrll/pymnts/menu- eng.html To start, Click PAY REMITTANCE now. The PAYMENTS JOURNAL appears (yes, it jumps to the PAYABLES module). When you select Receiver General, the balances for CPP, EI and Income Taxes Payable will appear. You can TAB from the Amount Owing column to Payment Amount to effect a payment for each particular item. Click the numbers in chronological order. Click to continue.      This is the date of the cheque.  End of Remitting Period – this instructs Simply to show the deductions not yet remitted up to the date entered here.  Remitting Frequency – Study the remitting frequency options below.  Remittance – The accounts are selected for a particular payroll authority as entered in the Settings for Payroll (see below).  Reference No. and Comment –You can enter information in these boxes which you can use for future reference. 

13. Remitting Payroll Deductions View the Payments Journal Entry. Study the entries for Jan 31, 2014 and Feb 15, 2014. Click. Before posting your remittance, you should verify the figures by comparing them to the Trial Balance at the end of remitting period (Jan 31, 2014). Click You may also check the Balance Sheet. Click to continue.

14. Remitting Payroll Deductions (continued) Other payroll deductions are processed in a similar manner. When you click Pay Remittance from the main Payroll & Employees window, you can select the appropriate payroll authority (in this Case London Medical Group for the company’s medical plan). Click. After filling in the journal, (check the Balance Sheet or the Trial Balance) you can display either the journal entry or the Remittance Detail Report. Click and study a sample Remittance Report. Be sure that the Range dates are correct (see top arrow). Notice that the payment details of each employee for the month is shown. Read the notation at the bottom (see red arrow). Click to continue.

15. Processing Vacation Pay If you retain vacation pay for employees rather than pay it out at every paycheque run, you need to release their vacation pay when they take time off, upon their request, or when they cease to work for the company. The total vacation pay owed appears in the Payroll Journal as the Vac. Accrued field (see right). The amount includes unpaid vacation pay the employee has earned over the year. Click and study the corresponding Payroll Journal Entry. Notice that the accrued vacation pay is entered in the VACATION PAYABLE account. Click. To release vacation pay, enter the amount in the Vac. Paid field. Notice the changes in the Year to Date and Net Pay figures. Click. Study the difference in the Payroll Journal Entries. WSIB Expense increases after paying vacation because it is calculated as a percentage of net pay. Click to continue. Before Vacation Pay After Vacation Pay

16. Entering PAYROLL Transactions: Recording Accrued Wages Sometimes a payday that falls at the beginning of a month may include wages earned in the previous month. Example: On the calendar at the right, payday falls on Friday, January 11, which includes wages payable from December 29 to 31. (GAAP: Time Period Concept) Wages from December 29 to 31 are considered accrued wage expenses, and should be recorded in December. (GAAP: Time Period Concept) Click. Accruals are entered in the General Journal. Study the General Journal Entry for accrued wages expense for $1,360.00 that applies to December 29 to 31 (posted on December 31). This accrual entry needs to be reversed at the start of the next period before the next regular payroll date. Click to continue. payday 2014 2015

17. Processing T4 Slips As an employer, trustee, or payer, you are responsible for deducting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax from remuneration or other types of income you pay, remitting them to the Canada Revenue Agency and reporting them on the applicable slips. A T4 or Relevé 1 (RL-1 used in Quebec) slip is printed for each employee at the end of a calendar year after all payroll have been processed. This is the slip that is used by the employee in filing income taxes. See right for a sample T4 slip printed on pre- printed form provided by the Canada Revenue Agency (CRA). Click. You are also responsible for complying with new regulations concerning payroll deductions. You can go to the website given at the bottom right to find what`s new. Click to continue. http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/menu-eng.html

18. PAYROLL Reports Study the PAYROLL reports that are available in Simply. The common employee-related reports that you can print to help you manage payroll efficiently and accurately are: Click. -Employee Summary or Detail report – you may display/print payroll information for one or all employees at once. Click. -Deductions & Expenses – you may select to display/print company payroll-related expenses for one or more items in summary or detail format. Click to continue.

19. EXITMore… Go back to your text and proceed from where you have left off. Review this slideshow when you finish the chapter to better prepare yourself for the next chapter. Press ESC now, then click the EXIT button.