Preparing payroll is a complex, meticulous process. Here is a summary of steps to be followed and tools provided by Umana.

Payroll process

Each company has different payroll procedures, notably the following:

• How hours are entered. Some companies enter hours via time sheets, while others import them from a time clock or other system.
• How to calculate net pay. Net pay can be calculated by Umana, or it may be processed by an external service with an interface to Umana.

On this page

• 1. Updating employee files
• 2. Entering, importing or generating hours worked
• 3. Control quality
• 4a. Exporting a file (for external net pay)
• 4b. Calculating net pay (integrated Umana net pay
• 5. Finalizing pay

See also:

• Our payroll procedures and policies (payroll.htm)
• Visual overview of payroll

1. Updating employee files

This is clearly an ongoing process that is independent from payroll. It is important, however, for employee files—especially salary—to be up to date before the payroll is done.

• Employee file
• Employment history: status, salary
• Payroll information: bank account, statutory deductions, etc.
• Benefits

Here are some reference tables that are crucial to doing payroll:

• Rates table
• Pay calendar

2. Entering, importing or generating hours worked

Here are some ways to acquire hours:

• Time sheet

• Import in Attendance detail – Umana provides a generic import function from Excel (.xls), as well as customized imports from time clocks and other systems.

• Generation of salaries If only the exceptions are entered, you still need to create regular working hours. This tool can also generate monthly or semimonthly salaries.

3. Control quality

Many reports are available from the Print | Gross pay menu. They are described in the Gross pay control tools section. To make corrections to gross pay, use the Attendance detail window.

4. Calculating net pay

There are two separate ways to calculate payroll:

1. Export to an external payroll service, e.g. Ceridian.
2. Use the integrated net pay in Umana (best solution).

4a. Exporting a file (for external net pay)

If you use an external payroll service, in Umana you will create (export) a transaction and changes file via the Export to net pay interface.

This file is then read (imported) by your net pay provider. Ask your provider for more details. Usually, the external payroll system lets you import this file in test mode. The net pay validates it and gives you the results (totals), but without finalizing it.

Once the file is imported to net pay, print a summary report from your net pay system. Validate the total hours and dollars by earning code (option) with the total in Umana. The Earnings by option report is specifically designed for this audit.

Once everything adds up, finalize the payroll in your pay system. Otherwise, make the desired corrections and restart the process.

4b. Calculating net pay (Umana net pay)

If you use Umana net pay, you will first have to calculate net pay (temporary). Afterwards, you will have to print the net pay summary reports and compare with the gross pay reports.

The net pay reports are available via Print | Net pay from the menu bar and include, among others:

• Net summary breakdown
• Payroll journal by Entity1
• Remittances (summary)

Transactions generated at time of payroll

Some transactions in "Attendance detail" (TIMEDT file) may be generated during the net pay calculation or the export to an external pay service.

These show up in the Attendance detail TEMP tab before the pay is finalized.

These transactions are linked to the time banks when the bank's rule specifies entitlement calculated at each pay period. The transactions may be only deposits in the time banks, or they may be paid to the employee. The paid-out transactions are usually vacation paid to casual employees at each pay.

These transactions are in a temporary file ("ADJUST") and are visible in the Attendance detail window, under a fifth tab (at the bottom) called "Temp." They are combined with regular transactions (TIMEDT) when payroll is finalized. If you redo the payroll without finalizing it, these transactions are created again.

5. Finalizing pay

The finalization step applies to both Umana net pay and to the export via external pay.

5a. Finalizing Umana net pay

This step records the gross pay transactions with the pay period number. It also transfers the payroll transactions into a permanent file.

To finalize payroll, open the period in the pay calendar, click the Tools icon and select "Finalize pay." In the calendar window, the icon for the period turns green once payroll is finalized.

Before finalizing pay, you can redo the net pay calculation with no problems. Each new calculation will overwrite the previous one.

Once payroll is finalized, do the following,

• Create the direct deposit file
• Upload it to your bank

You should also print the various net pay reports, such as:

• Payroll journal - brief
• Payroll journal by employee
• Payroll journal by Entity1
• Breakdown of net pay
• Remittances (detail)
• Payroll files

5b. Finalizing external net pay

This step records the gross pay transactions with the pay period number. It also turns off the change indicators in the employee files, so that the same changes are not exported to net pay. See the update after payroll