The purpose of this article is to provide the Payroll Processor with instruction on how to record a manual cheque in Canadian Payroll.
There are times when you must issue a manual cheque to an Employee. In this example Employee “PS” was owed one week’s pay, prior to the regular monthly pay due to timing of his hire date versus the pay dates. He did not want to wait five weeks to be paid for the one week, so a manual cheque was issued.
The Manual Cheque must now be recorded in Canadian Payroll for his total earnings and deductions to be accurate.
Navigate from the Payroll Worksheet to the Actions Tab. Click on the Income Details Icon.
A new window will appear.
Change the Income Type to “Retroactive Pay” from “Wages” and the Entry Source to “Person” from “Automatic Calculation” and then close out of the screen.
Go back into Income Details, and enter the “Net Amount” of the Manual Cheque issued to the employee in “Employee Amount”. Remember to enter the Pay Period that this Manual Cheque was created for.
Close out of the screen.
By Calculating the Gross, this will update the entries to reflect the Manual Cheque. The Payroll Income will now show both entries.
And the “Gross Pay” is in BOLD, indicating that the original amount has been Modified.
In order not to pay the employee twice for the same amount, a Deduction needs to be recorded for the net value of the Manual Cheque. On the Actions Tab, click on the Deduction icon. and enter the gross amount net amount of the Manual Cheque.
In this example the Miscellaneous Deduction code is used.
The wages have been successfully recorded, however, you must also record the taxes that were deducted from the Manual Cheque.
From the Payroll Worksheet, click on the Employee Record No., and you will be redirected to the Employee Card.
Once in the Employee Card, click on the “Change Year To Date” icon.
Using the information from the Manual Cheque, update the CPP Employee and Employer; EI Employee and Employer; Federal Tax and Provincial Tax deductions.
Add them to the amount that is currently showing on the Year To Date Deductions.
When you make changes to the Year To Date amounts, a warning will appear, asking you to confirm that you want to modify the value. Say Yes or No.
Once completed entering the Tax entries, click out of the field and the information is saved. Close out of the screen.
Continue with Payroll Processing.