In your software, the components of an employee’s pay, such as wages, accruals, and taxes, are called payroll categories. These are assigned to an employee’s card to calculate their recurring pay. Some payroll categories (deductions, expenses, and taxes) determine what are known as payroll liabilities. These are amounts withheld for later payment to the appropriate authority or agency.
When you process pays, you can vary an employee’s pay by overriding the recurring pay values, such as the actual number of hours worked and the number of hours of vacation leave taken. At year-end, you can print out W-2 forms for your employees to use at tax time. For more information, see ‘Starting a new payroll year’.
