Run a Payroll

Purpose

This guide walks you through processing one payroll cutoff end to end, from creating the pay run to generating approved payslips. Follow it every time you prepare pay for a period.

Before you start

• Confirm attendance for the cutoff is finalized, including overtime, holidays, night differential, and approved leaves.
• Confirm employee salary history and earning and deduction templates are current.
• Confirm any commissions and payroll adjustments for the period are recorded and approved.
• You need the Create Payroll permission to add a run and Payroll Manager rights (or be the assigned signatory) to process it.

Procedure

1. Open the pay runs list. Go to Compensation > Payrolls.
2. Create the pay run. Click Add, then set the pay period start and end dates, the account, the department or coverage, and a title. Save. The new run appears with a Draft status.
3. Set the payroll options. From the run's actions menu, choose Set Options and confirm the tax table, pay rates, contribution handling, and inclusions for this cutoff. This controls how pay is computed.
4. Initialize the run. From the actions menu, click Initialize. The status changes to Ongoing, which locks the run's setup and prepares it for processing. A Draft run can still be edited or deleted before this step.
5. Open the Run Wizard. On an Ongoing run, click Run Wizard. The wizard builds a payslip for each included employee and computes gross pay, statutory deductions, taxes, and net pay from the attendance and compensation data.
6. Work through each employee. Review the computed figures. Where a rate changed mid-cutoff, the wizard applies the correct rate per day. Use Investigate on a payslip to see the detailed breakdown behind any number.
7. Resolve exceptions. Fix any employee flagged with missing rates, incomplete attendance, or unexpected totals before continuing. Correct the source data, then recompute that payslip.
8. Approve the payslips. Move each reviewed payslip from Pending to Approved. Only approved payslips are ready for release.
9. Complete the run. Once all payslips are approved and checked, finalize the payroll so its status becomes Completed. You can then view the payroll summary and distribute payslips.

Expected result

The pay run shows Completed, every included employee has an Approved payslip with correct net pay, and the payroll can be viewed, exported, and posted for payment. Government contributions and taxes are captured for later BIR reporting.

Troubleshooting

• An employee has no pay or a zero rate. Check that their salary history has an approved current rate, then recompute the payslip.
• Hours or overtime look wrong. Return to Attendance, finalize the cutoff, then re-run the wizard.
• You cannot edit the run. Only Draft runs are editable. An Ongoing or Completed run must be cancelled first if setup was wrong.
• A figure looks off. Open the payslip's Investigate view to trace how it was computed before making changes.