QuickBooks Online Payroll - Getting Started Guide Apr

 QuickBooks Online Payroll Getting Started Guide January 2016 Powered by Table of Contents Payroll Settings ...................................................................................................................... 2 Business Settings .................................................................................................................... 3 ABA settings ............................................................................................................................ 3 ATO Supplier settings .............................................................................................................. 7 Pay Slips .................................................................................................................................. 9 Chart of Accounts ................................................................................................................... 10 Opening Balances ................................................................................................................... 12 Pay Run Settings .................................................................................................................... 13 Pay Categories ....................................................................................................................... 13 Manage Pay Categories .......................................................................................................... 15 Leave categories .................................................................................................................... 18 Business Management .......................................................................................................... 21 Employee Self Service Portal ................................................................................................... 21 Advanced settings (paid for) .................................................................................................. 23 Reports ................................................................................................................................. 25 Payment summaries .............................................................................................................. 27 Locations (classes) ................................................................................................................. 32 1 Payroll Settings Once you have turned on payroll and set up the business details you can access the payroll settings. The payroll settings allow you to configure the main setup for your payroll. You can view all your main payroll settings by selecting > Employees > Payroll settings The main categories under payroll settings are Business Settings Pay Run Settings Business Management Pay Conditions Under each of these categories you will have the ability to configure the settings for each feature. Main features to point out are: 2 Business Settings ABA settings An ABA file is a file that is used by all major Australian financial institutions to specify payments to be made from one bank account to one or more bank accounts. The most common way for employers to pay employees is via an ABA file which is automatically generated by their payroll software. Once you have your ABA file, it’s usually a simple matter of uploading it to your business internet banking portal and authorising the payments. Setting up your business to generate an ABA file Before you can generate an ABA file, you need to first setup the ABA settings for your business using the following steps: From the “Payroll Settings” menu, select “ABA Settings” Click “Add” to create a new set of ABA settings for your business. You are also allowed to setup multiple bank accounts to pay employees from, but you only need to setup one account. Once you’ve filled in the ABA details click “Save” and you will now be able to generate ABA files from within your pay runs. 3 4 What are each of the ABA settings for? The table below provides more information on the purpose of each of the ABA settings Setting Required Description BSB Number YES The BSB number of the account that payroll payments will be made from Account YES The Account number of the account that payroll payments will be Number made from Account YES The Account Name of the account that payroll payments will be Name made from Financial YES The official 3 letter abbreviation of the financial institution that the Institution bank account that payroll payments will be made from is registered Code with. e.g. the official Westpac code is WBC Lodgement YES The description of the payroll payment that will appear on the Reference employees bank statement. e.g. “Payroll” or “Weekly wages” Name Of YES This is the name of the user or business that is creating the ABA User file. The most common value is the business name. Supplying File APCA YES This is a 6 digit number provided by your bank. If you’re not sure Number what this number is, you’ll need to contact your bank. It’s often listed on their website and for some banks such as the ANZ you can provide any 6 digit number (such as 000000) Include Self NO Selecting this option adds an additional “Self balancing” transaction Balancing to the end of the ABA file which is required by some financial Transaction institutions when generating the ABA files. You’ll need to check with your financial institution to determine if you’ll need to select this option (it’s often available on their website). Merge NO Select this option if your financial institution requires that only a multiple single transaction be made per account per ABA file. This is payments for occasionally required if you have spouses that have their pay paid the same to the same bank account, or an employee has multiple payments account into going to the same bank account. In this case, certain financial a single institutions require that those payments be merged into a single transaction transaction. 5 Generating ABA files You can generate ABA files using the following steps: After you have finalised a pay run, click the “Download ABA” button from the pay run actions bar If you only have one set of ABA setting, your ABA file will download automatically If you have multiple ABA settings you will be asked to select which ABA settings to use Once you’ve selected the correct ABA settings, click “Generate ABA”. We will remember which ABA settings you last used to generate your ABA file and will automatically select it for next time. 6 ATO Supplier settings These details are used to populate the supplier information when generating reports to be submitted to the ATO. The "ATO Supplier Settings" section allows you to enter the following information: ABN Name Branch Number Address Line 1 Address Line 2 Suburb Contact Name Phone number Fax Number All are required fields apart from "Branch Number", "Address Line 2" and "Fax Number". A handy feature in this screen is the ability for it to "Copy from Business Settings". If you click this button (to the right of the "save" button, it will populate the relevant fields from the information entered in your Business Details. 7 8 Pay Slips Pay Slips can be configured via the Pay Slip settings. You have the ability to upload a company logo which will be visible on all pay slips Select > Pay Slips > Choose a logo > upload logo > select file > confirm upload (we recommend dimensions of no larger than 150px by 350px) You can also configure the settings by selecting what information you would like visible on the Pay Slips. Once you are happy with your settings simply select save. 9 Chart of Accounts With the QuickBooks + KeyPay online integration, once you import your chart of accounts the journals will be exported directly to QuickBooks each time you complete a pay run. To set up the Chart of Accounts: Select > Chart Of Accounts > Import Accounts Select each account you wish to import/map into the payroll Chart of Accounts. Once you are happy with your selected accounts simply select > save account list. Once saved you will be taken back to the Chart of Accounts to map your QuickBooks Online Accounts to your Payroll Accounts. 10 Select > Default Accounts and begin mapping in each account You also have the option to map the Chart of Accounts for Pay Categories, Deductions, Expense Categories and Location specific Accounts. Once you are happy with your mapped accounts simply select save. 11 Opening Balances The Opening Balances settings page allows the user to configure the initial financial year for your business as well as import/export the opening balances for employees in the business. To get to the Opening Balances settings page, go to Payroll Settings, then Opening Balances. The following page will be displayed 12 The initial financial year for the company may be adjusted here. This is the year that the opening balances for Gross/PAYG/Super will apply to. (Leave balances are simply adjusted by the opening balance specified). Note that opening balances have an effective 'Date Paid' of 2nd of July in the financial year that you specify. To include opening balances in reports, the report period should be run from 1/7 of the initial financial year. Additional Functions ● To Import the opening balances, click on the Import button ● To Export the opening balances to a CSV or Excel file, click the Export button ● To configure the opening balances for a specific employee, open up the employee file and then go to the Opening Balances section. Pay Run Settings Pay Categories Pay Categories are used to define the rates that employees are paid. Setting up your pay categories will help simplify the management of employee pay rates by: ● Automatically calculating linked rates through loading and penalty rate multipliers ● Configuring super rates ● Configuring leave accrual Create a Pay Category You can Create a Pay Category by following these steps;; The setting for Pay Categories can be accessed and updated by clicking on the Employees tab click on Payroll Settings, then choose Pay Categories from the list under Pay Run Settings. 13 When you create a new business, a number of common pay categories have already been created however, you are able to delete these and create new ones that match your business needs. To create a new Pay Category click on the green ADD button as shown below. A New Pay Category box will open. Type the name of the New Pay Category in the Pay Category Name box. Then click on the blue ADD button on the bottom right. See Image below. Fields in this category include: Name Units -­ Hourly, Annually, Fixed, or Daily Super Rate -­ as a percentage PAYG Tax Exempt Accrues Leave Rate Loading -­ this is loading that is applied on top of the base rate that the pay category is linked to. For example, if you have a base rate of $10 and set a rate loading of 50%, then the linked rate will be $15. Penalty Loading -­ this is penalty loading that applied on top of the base rate and the rate loading. The key difference here is that penalty loading does not accrue superannuation. 14 Payment Summary Classification -­ this is used for pay categories that need to be reported separately on an employee's payment summary. Once you have completed the Pay Category, press the save blue button on the bottom left of the screen. Manage Pay Categories In addition to the base value pay category, you are able to create linked categories. For example a pay category could have the base value of Part-­time weekdays but have linked categories of Part-­time Saturday and another one for Part-­time Sunday. When a pay category is linked to a base pay category, you only need to specify the base rate for the employee and the rate for the linked pay categories will be automatically calculated. You can create Linked Categories, by following the the steps below;; Click on the "Add Link Category" button in the bottom right hand corner of the chosen Pay Category. 15 You will see this screen (see image below) after clicking the Add Link Category button. Type in a name you want to call the linked category, for this example we are calling it Casual -­ Saturday. Then press the blue Add button. Please note, you have the opportunity to delete the Linked Pay Category before actually using it. If you move your cursor towards the end you will see a figure like this Category. by clicking on this figure you are able to delete the new Linked Pay 16 Once the Linked Pay Category is added you will need to complete the relevant fields. The image below is explained;; Units -­ Pre-­populated according to main Pay Category i.e. Hourly Super Rate % -­ Entered with percentage required by SGS legislation Rate Loading % -­ As per award/employment agreement Penalty Loading % -­ As per award/employment agreement "Tick" the remaining fields, by clicking on the box adjacent to the field, if you require this function, e.g. Accrues Leave, PAYG Exempt etc. Press the blue Save button in the bottom left hand corner. 17 Leave categories This screen allows you to set up your leave categories and control which of them accrue automatically, whether or not to include them in termination payments, and decide which should appear in your employee's payslips. The settings for Leave Categories can be accessed and updated by selecting the Payroll Settings tab, then go to Leave Categories under the Pay Run Settings heading. The default setup for a new business includes 5 Leave Categories: 1. Annual Leave 2. Leave Without Pay 3. Personal/Carer's Leave 4. Time in Lieu 5. Long Service Leave You can choose to add more categories by clicking on the green "Add" button to the right of the screen. When doing so, you'll be presented with the following screen: 18 When adding a new leave category you need to enter: ● Name (required) ● Leave Loading percentage -­ used to automatically apply leave loading. ● Leave Category Type -­ drop down box to choose from 'Standard' or 'Long Service Leave' ● Employee Leave Balance -­ drop down box to choose from 'Tracked' or 'Not tracked'. Note: For some types of leave that aren't accrued in the usual way (e.g. leave without pay) it might not make sense for an employee to have a 'balance'. In these cases you should set this value to 'Not tracked' to tell the system it doesn't need to keep track of how much of this type of leave an employee is entitled to. ● Automatically accrues ● Exclude from termination payout 19 ● Hide accruals from payslips -­ Select this option if you do not wish to allow employees to see the amount of leave accrued for this leave category within a pay run on their pay slips. ● Hide balances from payslips and in employee portal -­ Select this option if you do not wish to allow employees to see the balance of this leave category on their pay slips or in the employee portal. ● Standard allowance (only shows if the leave is automatically accrued) -­ how many weeks per year ● Payment Setup: This determines whether the employee is paid for the leave taken and the pay category that is assigned when leave is taken. ○ Basic: When an employee does not use timesheets (see screenshot below), the employee's leave balance will be reduced. When an employee is using timesheets to submit all time worked, an earnings line will be created and the leave balance will be reduced. ○ Don't pay for the leave taken: When an employee does not use timesheets (see screenshot below), an earnings line with negative will be added to reduce the earnings for the employee. When an employee is using timesheets to submit all time worked, no earnings line will be created. ○ Report the earnings for the leave taken against another pay category: When wanting to report payments for leave taken in a separate pay category (for reporting/journaling purposes), select this option. The earnings related to the leave taken will be assigned against the specified pay category instead of the employee's primary pay category. When this alternative is selected, the option will be given to use the rate of pay from the employee's primary pay category. Otherwise (if the leave needs to be paid), the rate should be set in the employee's Pay Rates section for the pay category that is being transferred to. ○ Custom: For advanced users only, this option allows the user to deduct hours from an arbitrary pay category and transfer them to another arbitrary pay category when leave is taken. To check or assign the employee's timesheet setting, go into the 'Employee Details' section for the relevant employee. The timesheets option is at it's at the top of the Pay Run Defaults page. 20 Business Management Employee Self Service Portal 1. Timesheets entered: Employees have the ability to enter timesheets by selecting > Enter timesheets 2. How did you find work this week: Employees can select from the emojis how they felt about their work week which is then available for the payroll administrator to view via the management dashboard. 3. Leave Balances: Employees can view leave balances and apply for leave 4. Recent Payslips: Employees can view/download recent payslips, payment summaries 21 Employees also have the ability to update their details via the > my details tab
Employee Details Once the employee has selected > my details they will then be able to update details such as 1. Details > Employee Details 2. Emergency Contacts 3. Bank Accounts 4. Super Funds 5. Upload a profile picture 22 (please note these settings need to be turned on via the main payroll settings > employee portal by a payroll administrator and the employee needs to be granted access). Advanced settings (paid for) The price for the use of Advanced Payroll features is $6.00 per active employee per month -­ an active employee is one that gets paid during the period of a calendar month. The main components to the "advanced" payroll features include: ● All features of the “standard” plan ● Automated Pay Conditions ● Pre-­built Awards ● Time & Attendance Kiosk ● ClockMeIn Time & Attendance iPad App ● Employee scheduling/rostering To upgrade to the advanced features select: > Employees > payroll settings > subscription 23 > view other plans > select upgrade to advanced, enter in credit card details if not already supplied and save. Once saved you will then be upgraded to the advanced plan and the features will be enabled within seconds. Please note you can downgrade plans at any time by following the above instructions and select downgrade against the Standard plan, this will then disable the advanced plan features. 24 Reports A wide variety of payroll reports can be accessed via the reports tab. Select > Employees > reports Once you have selected reports, you will be able to view the payroll reports , employee reports and ATO reports: 25 Important Reports to note: Detailed Activity Report A breakdown of activity by location per employee over a given period of time. Super contributions View all super contributions over a period of time PAYG Withholding A breakdown of the PAYG withheld per month for a given date range Pay Run Audit Report Shows the full pay run details for a given pay run. Includes earnings, super payments, bank payments, leave and deductions. Leave balances Shows the current leave balances for each employee. Leave liability Shows the leave liabilities for each employee at a point in time. Super Payments Manage automated superannuation payments. You can easily pay employee super contributions directly to any registered super fund in Australia by taking advantage of the in built integration with the ClickSuper super fund clearing house. 26 KeyPay is 100% Superstream compliant and GOLD certified with the ATO. Simply register via Reports > Super Payments > complete registration form. Tax File Declaration Report Shows the leave liabilities for each employee at a point in time. Payment Summaries Allows generation and printing of the payment summaries for all employees for a financial year. Payment summaries At the end of each financial year, one of the tasks payroll administrators start preparing for is generating individual non-­business payment summaries (aka group certificates) for their employees. The good news is, what was previously a time consuming process, can now be completed in a few simple clicks by following these steps: Log in and ensure that all pay runs have been finalised for the current financial year. Once all pay runs and housekeeping tasks have been finalised, click on the “Reports” menu and under the “ATO" Reporting” section, click on the “Payment Summaries” link From the payment summaries screen, select the financial year you wish to generate Payment summaries. 27 You can then click the “Generate Payment Summaries” button to generate payment summaries for all employees in the business. Once you payment summaries are generated you will be able to preview them before publishing for print or download by employees via the employee self service portal. To view all payment summaries, click 'Download' > 'Download all as PDF'. 28 To view a single payment summary, click the 'Actions' menu next to a particular employee, then click 'Download' Once you are happy with the payment summaries, you can publish them by clicking the Actions button and then 'Publish x Payment Summaries'.
NOTE: If any new pay runs are created for that financial year or any changes are made, the payment summaries must be re-­generated for any changes to take effect. How to I enter the Reportable Fringe Benefits amount? Once the payment summaries are generated, you are able to enter the Reportable Fringe Benefits (RFBA) amount. To do so, click the 'Actions' button next to the payment summary and click 'Edit'. The Reportable Fringe Benefit Amount (RFBA) field is open to enter in a dollar amount. You may need to seek advice on which FBT deductions are reportable. What happens when I publish payment summaries? Once you publish the payment summaries, they become available to the employees for download via the self-­service portal. If you would like to send the employees an email notification to let them know that their payment summaries are generated, click the 'Send Notifications' button. What if I need to change the values in the payment summaries after I’ve published them? There’s two options available: You can unpublish an individual payment summary by clicking on the Actions menu next to the particular employee and then “Un-­publish”. 29 You can unpublish ALL payment summaries by clicking on the top-­level Actions button and then “Unpublish x Payment Summaries” Once you have unpublished the payment summaries, they will no longer be available for download to the employee self-­service portal. You can now make any necessary changes to the pay runs, then re-­generate the payment summary/summaries. If you have already issued the payment summaries to the employees/ATO, you may need to mark the new payment summaries as 'Amended'. To do this, click the check-­box when generating the payment summaries: You may then re-­publish the payment summaries. Generate PAYG payment summary Report -­ EMPDUPE File to submit to the ATO 30 The ATO requires that all businesses submit PAYG payment summary report (EMPDUPE file) for their employees by August 14. To make this simpler for you, You can automatically generate the required “EMPDUPE” file which allows you to lodge your payment summary annual report online. To generate a the EMPDUPE file follow these simple steps: First, make sure you have generated and published your PAYG payment summaries for your employees. Make sure you have updated your ATO Supplier details. You can update these by clicking on the “Business” menu and selecting “ATO Settings”. Once you have generated your PAYG payment summaries and updated your ATO Supplier details, go to the “Reports” menu and under “ATO Reporting” click “Payment Summaries”. Within the payment summaries section, click the “Generate EMPDUPE file” button and then select the appropriate option.
Once you've done this, your browser will download the EMPDUPE file. Save this file to your desktop or some other 'known' location. 31 You will then need to refer to the ATO website to lodge your EMPDUPE File. https://www.ato.gov.au/Business/PAYG-­withholding/In-­detail/Reporting-­and-­paying-­to-­
us/Lodging-­your-­PAYG-­withholding-­annual-­reports-­online/ Locations (classes) You can export a journal with classes and locations pre-­populated by following these steps: Before exporting the journal, ensure that you have performed the following actions: Imported locations from QuickBooks You can import locations into KeyPay by following these steps: Log into QuickBooks Online and go to the "Employees" tab Click on "Settings" and then "Locations" From the locations screen, click the "Add" button and select the "Import QuickBooks Locations" option 32 Your QuickBooks locations will now be available in KeyPay If you also want to assign classes to your journal entries, you will also need to ensure that you have assigned classes to your locations You can assign classes to locations by following these steps: Log into QuickBooks Online and click on the "Employees" tab Click on the "Settings" tab and select "Locations" Click on the location to which you want to assign a class 33 From the "Classes" drop down, choose the class you want to assign to the location 34 Click "Save" Your class will now be assigned to your location Next, ensure you have the "Split by location" option set in the chart of accounts. You can check this by following these steps: ● Click the "Employees" tab -­> "Settings" -­> "Chart of Accounts" ● From the chart of account, click the "Defaults" link ● For each journal transaction type that you want classes and locations to be assigned to, click the "Split by location" option against each transaction type. In this case, we're going to split the wages expenses by location ● Click "Save" The final step is to process a pay run. Ensure that your earnings lines for your employees are allocated to the correct locations 35 Once you have allocated the locations to the earnings lines in the pay run, you can finalise the pay run and the journal will be posted with transaction lines created for each location / class 36