This article explains how to set up an automated pay schedule in Director Pays so that pay runs are created without you performing the pay run action yourself. The setting is under Payroll Settings > Pay Run Settings > Pay Schedules, where you add a pay schedule.
Automating pay runs allows users to not have to perform the pay run action themselves. Rather, the system does it automatically in the background. You can choose what components of a pay run you want automated and what components still require manual intervention.
To set up an automated pay schedule go to Payroll Settings > Pay Run Settings > Pay Schedules.
You will need to click on the Add button to create a pay schedule. Pay schedules are used to set up pay runs. The pay schedule's settings are used each pay run to calculate what to pay employees.
There is no limit on the number of pay schedules you can create and they can be configured for any combination of pay frequencies so you can have multiple weekly, fortnightly and monthly pay schedules all running at the same time.
When you click the Add button you will see the below screen:
You can select a name for the pay schedule and chose from the drop down menu under the heading Frequency where you will have the option to select: weekly, fortnightly, four weekly, monthly, quarterly or annually.
If you have set the director up with an annual salary and want to split the payments into 12 equal basis then you need to tick the box 'Calculate monthly hours based on an annual average'.
You need to select the included employees you want to add to this pay schedule.
If you want to add any payslip messages you should do so in the pay slip message field.
If you are setting the pay schedule to be manual and not automated you would configure the pay run warnings in this section.
To set up pay run automation you should configure the warnings when you configure the automated pay run creation settings by clicking in the highlighted 'here' to configure:
You will then be taken to the screen below:
Step 1: Auto Pay Schedule Details
The details for each setting are as follows:
- Schedule first Pay Run creation on: This field will pre-populate with today's date and the upcoming hour. (Automated pay runs are scheduled on the hour). You can amend the date and time by clicking on the calendar icon. N.B. There may be a time delay as to when the pay run is finalised due to volume/size of the pay run. For example, if you have scheduled the pay run to be run at 3pm, this does not mean the pay run will be finalised at 3pm.
- Schedule last Pay Run creation: The value here always defaults to Never, which means that there is no end date to this automated pay schedule. If you do want to set an end date, click on the dropdown to enter a date and time. If you do enter a date here, the pay schedule will convert to Manual after that date. You will then be responsible for creating pay runs for this pay schedule yourself.
- For initial Pay Period Ending: If you have previously created pay runs for this pay schedule, the value that will appear here by default is the subsequent period end date of the last pay run created. If this is a newly created pay schedule or no pay runs have been created for this pay schedule, today's date will appear as the default value. Either way, you can always edit the date shown by clicking on the calendar icon.
- With initial Date Paid: If you have previously created pay runs for this pay schedule, the value that will appear here by default is the subsequent date paid of the last pay run created. If this is a newly created pay schedule or no pay runs have been created for this pay schedule, today's date will appear as the default value. Either way, you can always edit the date shown by clicking on the calendar icon.
- Run subsequent Pay Runs: This setting will only appear in pay schedules set on a monthly frequency. With this setting you can determine exactly when you want the pay run processed so that it is on a consistent day each month. You can choose it to be either (a) a specific date each month or (b) the 1st, 2nd, 3rd or 4th day (of your choosing) of the week.
- Non work day Pay Runs: This setting will only appear in pay schedules set on a monthly frequency. There are 2 sub-settings here :-
'Process Pay Run on preceding work day if the Pay Run Creation Date falls on a weekend or public holiday': By ticking this checkbox, the pay run creation date (as set in the above setting) will automatically adjust to the preceding day if the original date ends up falling on a weekend or public holiday. It will then revert back to the original setting the following month, on the basis the date does not end up falling on a weekend or public holiday.
'Automatically adjust the Date Paid to the preceding work day if the Date Paid falls on a weekend or public holiday': By ticking this checkbox, the date paid will automatically adjust to the preceding day if the original date ends up falling on a weekend or public holiday. It will then revert back to the original setting the following month, on the basis the date does not end up falling on a weekend or public holiday.
Click on Next to then proceed to Step 2.
Step 2: Warnings & Notifications
In this screen you can select the pay run warnings that will stop the automated pay run when triggered. Manual intervention will then be required to finalise the pay run. By default, all pay run warnings will be selected (unless you have already deselected any pay run warnings from the pay schedule setting). If there are pay run warnings you do not want causing the automated pay run to stop then deselect them. Any warning that is selected will cause the pay run to stop.
It is important to note here that special attention should be made to what warnings are selected or not as it may have some impact to the pay run.
The other setting on this screen is to select the users that will need to be notified:
- of any events causing a pay run to stop and thereby requiring manual intervention;
- of any post pay run errors, ie payroll journal not posting successfully;
- when the pay run has successfully finalised.
The only users that can be selected are those with full access permissions within the business from the pre-configured list (i.e., you cannot manually add a user in this field). The reason for this is that the email notifications sent include a link to the pay run and only full access users have the ability to access pay runs. To select a user(s) from the pre-configured list, click within the field so the list appears. From there, click on each user you want to receive notifications.
Click on Next to then proceed to Step 3.
Step 3: Pay Run Finalisation Options
In this screen, you will configure the level of automation for each component involved in finalising the pay run.
This screen will default to the following setting:
If you keep the setting as per the above screenshot, all other components will need to be processed manually. The users (select in the previous step) will receive an email advising them the pay run is ready to be finalised. If, instead, you select the Finalise pay run immediately option, the following additional finalisation options will appear:
Journals: This option will only appear if the business is connected to an online journal service and has a configured Chart of Accounts. If you select Export journals immediately, the payroll journal will be posted automatically once the pay run is automatically finalised. The selected users will be notified via email if there is any issue with the journal posting. Alternatively, if you select the option to Export journals manually, a full access user will be required to post the journal from within the pay run once the pay run is finalised.
Publish Pay Slips: Choosing to 'Make pay slips available to employees immediately' means that pay slips will be automatically published immediately at the time the pay run is finalised. Your other option is to 'Make pay slips available on the Date Paid at "x" (specified time)'. This will ensure pay slips are automatically published at the time specified on the pay date of that pay run. Alternatively, if you select the option 'Do not make pay slips available until the Publish pay slips button is clicked', a full access user will be required to publish the pay slips manually from within the pay run.
Report Packs: This option will only appear if there are report packs set up in the business. If you select Run the following Report Packs, a list of all configured report packs will appear. You will then need to select which report packs are to be sent automatically once the pay run is finalised. Please note the following:
1. Report packs are sent to the recipient setup within the report pack setting, NOT the user(s) set up in step 2 of this wizard. If you want the user(s) to be sent the report packs you will need to add them as a recipient to the support pack.
2. If a "?" icon appears to the right of a report pack name this indicates that the report pack is setup on a recurring schedule and so the recipients may receive it more than once - first time being once the pay run is finalised and second time being on the day/time scheduled in the report pack setup. You can still select that report pack as part of the automated pay run and edit the schedule in the report pack.
Step 4: Summary
This section is purely a summary of all selected settings. This gives you the opportunity to review all choices. To make any changes, click on Previous till you get to the relevant screen that requires a change. You will then need to click on Next till you get to the last screen and then click on Complete to finish the setup.
The pay schedule will show as pictured below. You will then need to click on Save to finish the setup.
Stopping the Automation of a Pay Schedule
If you no longer want a pay schedule processed automatically, you will need to stop the automation. This will basically remove all automation settings and cannot be retrieved thereafter. To stop, and thereby delete, the automation of the pay schedule click on Stop (refer to above screenshot). You will then be asked to confirm you want the automation deleted:
Click on Delete and then Save - this will remove the automation for that pay schedule.
Pausing the Automation of a Pay Schedule
If you want to pause the automation of a pay schedule, say because you need to create a pay run for that pay schedule manually, click on Pause (refer to above screenshot) and then Save. You will see there is now a Resume option in the pay schedule. You will need to click on this when you are ready to commence the automation again. N.B. There will be no automated pay runs processed for that pay schedule whilst the pay schedule is in pause status.
To watch a YouTube video of how to Automate your Director Payrolls please click here.