Revised:  12/1/2020

How to Process a Manual Payroll Check

Payroll Manual Check

These instructions are for entering and printing a paycheck using the Manual Check Process.  This process may be used to replace a lost check (see How to Void a Payroll Check) or to pay out earnings between regular pay runs such as for hours missed during the regular Payroll run.

Also see the How Tos for:

• How to Adjust Earnings for an Employee
• How to Record 3rd Party Employee Payments
• How to Correct Payroll Deductions with Manual Check Processing
• How to Void a Payroll Check

Go to Activities>>Manual Check Entry

• The Transaction # will auto fill
• Select the Employee #

• Note:  Only one transaction per employee can be in Manual Check Entry at a time.  To start another transaction for the same employee, the first must be posted.  This includes a voided check transaction. See How to Void a Payroll Check

• ACH: to make this payment using an ACH bank file, check mark ACH.
  Note: When ACH is checked Check# and Check date will be unavailable.  
  If the employee is not setup for ACH payment, this option will be dimmed and unavailable.
• Check #: There are several possible options for Check Number:
  • Leave the Check Number blank for this process to print out a paper check.
  • Enter the Check Number to record a handwritten check that does not need printed out.
  • Enter a Check Number from 1 to 99 to record an adjustment that should not print a check.
  • Will be dimmed and unavailable if using ACH for this payment.
• Check Date: Enter or select the date to use for this transaction. 
  • Will be dimmed and unavailable if using ACH for this payment
  • The check date will be the date printed on the check and the date cash will be credited in the general ledger.  
  • Also on this date the liability accounts will be credited.

Earnings Information

• Enter or select the Time Card Date.  (If payroll is set to use accrual Accounting) On this date the general ledger will be debited for the Wage expenses entered here and for the Employer paid benefit expenses.
• Enter or select the Earning Code
• Enter the Hours to be paid.  For a Salary Earning Code enter zero Hours.
• Enter the Rate:  The rate will auto-fill if a default rate was entered in the Employee Master.  If the Earning Code used has a rate factor such as 1.5, the new rate will be calculated.  Enter or adjust this rate as needed.

Some of the following options may be available, depending upon settings:  These fields will also auto-fill if set up in the Employee Master.

• Select a Department Mode, if applicable (Payroll Settings has Department Mode checked, if not in department mode, this field will not be shown)
• Select an Auto Group, if applicable (this field will not be available in Department mode)
  • If No is selected, additional fields will be available for entry
    • Select an Inter-Fund Code, if applicable
    • Select a General Ledger Account

**Additional lines of earnings may be entered

When ALL earnings have been entered, review the total boxes displayed at the bottom of the view.  The Hours and Gross Boxes should total to your expected Gross Payment.  The Deductions box will still be 0.00.

Employee Deductions

Note:  If only the mandatory deductions should be calculated for this check, put a check mark in the "Mandatory Ded Only" box.  Only deductions marked as mandatory in the Deduction/Benefit Master will be calculated.  Use this option to exclude other deductions that are for set amounts and not a percentage of wages that have already been paid from another check, such as Health insurance.

Select the Employee Deductions tab

• The Deductions and Benefits that have been setup for the selected employee will be calculated and entered in the grid.
• Please review these carefully as a manual check is not part of a cycle and some deductions or benefits may need to be edited or removed.
  • For Example:  A deduction that has been setup to be withheld on the first pay of the month will be calculated and displayed in the grid.  If this is not a replacement for the first pay of the month, then this deduction may need removed.  Delete the line or change amount to Zero.
• In most cases leave the Deduction Gross as calculated.  The Employee Amount and the Employer Amount may be edited as needed.
• Review the Local Tax deductions.  The Deduction Gross on a Local Tax will be calculated as the actual gross.  This may need reduced by any pre-tax deductions.  
  • Tip:  you may review the calculated taxable grosses shown on the Standard Deduction tab to find any pre-tax items and then return to the Local Taxes on the Employee Deduction tab.  Be aware that all pre-tax items for Federal or State Taxes may not be pre-taxable for Local Taxes.

Standard Deductions

Select the Standard Deductions tab

• Social Security, Medicare, Federal and State taxes will be calculated.  The amounts displayed may be adjusted as needed, in most cases leave the Employee Gross and the Employer Gross as calculated.  If you have made changes to any pre-tax deduction amounts, press the "Recalculate Standard Deductions" button to recalculate the gross amounts and applicable taxes.
• Review the totals displayed at the bottom of the view.
• Press the Save button or tab through all the fields as the system will automatically save and clear the screen after the last field is exited.
  • Note:  The program performs an auto save after some entries and between pages.  If no changes were made on the Standard Deduction screen, the save button will be dimmed and unavailable for use.  Click the Clear/Add button or press the F2 key to clear the entry view.

Additional manual check transactions may be entered for other employees.  When finished, close the Manual Check Entry program.

Go to Activities>>Process Manual Checks

Payroll Processing - Step 1 Pay Information

• Press the Next button to calculate and prepare checks for printing

Step 2 Manual Check Edit List

• Preview or print the Pre-Check Writing Report.  Horizon recommends that a copy of the report be printed or saved to disk for your records.  Review the report for errors before continuing.
  • Review the report for correct payment method.   The top line for each employee will show either: 
    • ACH – will create an ACH file, the transaction amounts will post to checkbook and to GL interface
    • Dated: ##/##/#### with no check # listed – this will print a paper check using the next available check #, the transaction amounts will post to checkbook and to GL interface
    • Check: ####    Dated: ##/##/#### - with a check# and date no payment method will be printed or created, the transaction amounts will post to checkbook and to GL interface  
• Press Next after the report has been reviewed or printed.

Step 3 Print checks

• Verify that the Starting Check # is correct.
  • Note:  If the check # is incorrect and checks after this number have been printed, verify that all processing for those checks have been completed and posted before continuing with this processing.  Are the checks listed in the checkbook?  If not, those checks may need posted before continuing with Manual Check Processing.
  • Manual checks that were assigned check numbers in Manual Check Entry will not print out a physical check during this process, but their information will post.
• Enter a Signature Password, if applicable.
• Review the Check Printer listed.  
  • If incorrect or no printer is shown, press the Check Printer button to select the correct printer.
• Verify or load the correct checks and starting check# in the selected printer.
• Press the Print Checks button to send the checks to the printer.
• Press the Next button after checks have printed

Step 4 Check Verification

• Physically view your checks for printing errors (mangled checks, blank checks, two checks pulled at once, etc.)
  • Use this area to void or clear checks as needed.  See How to Fix Incorrect Checks During Check Processing.
• Press the Next button after all checks have been printed correctly

Step 5 Print Deposit Slips

• Enter or select the ACH payment date to be used for the ACH bank file.  Reminder: Most banks will not accept a file dated the same day, some require the ACH date to be 2 days after the upload date.
• Review the Check Printer listed.  
  • If incorrect or no printer is shown, press the Check Printer button to select the correct printer. 
  • You may also select a pdf printer to save the slips as pdf rather than printing to paper. 
• Press the Print Deposit Slips button to send to the selected printer.
• Press the Next button

Step 6 Deposit Slip Verification

• Physically view your deposit slips for printing errors
  • Use this area to void or clear checks as needed.  See How to Fix Incorrect Checks During Check Processing. 
• Press the Next button after all checks have been printed correctly

Accounts Payable Checks

• If you are using the AP Wizard, the AP Check processing grid will appear.
• You may skip this section if you will not pay vendors or taxes after this payment processing.
  • Review the AP check information shown in the Grid
  • The following fields may be edited:
    1. Employee Amount
    2. Employer Amount
    3. Process Mode
       • Skip – do not process
       • Pay now  - Print check and post
       • Voucher only – post AP voucher awaiting payment
       • Now (Electronic) – post as if paid to be used for payments that will be entered for online payment such as the Federal tax payment.
          
• Click Launch AP Interface Wizard
• Enter the Payment Date and Check date to use.  These should be the same date, usually the same as the employee payments were dated.
• Click Next to move to Check Processing - Print Checks
• Verify that the next check number and check printer are correct
• Enter the Signature Password, if required
• Click Print Checks
• Once the checks have printed, hit Next to move to the Verification Screen.  If you need to reprint checks, follow same procedure as for AP check printing.
• Once all checks have printed correctly, hit Next at the bottom of the verification view
• Click “Finish” to post the AP information…this will take you back to the AP Checks screen.
• The AP posting report will be sent to the printer
• Press the Next button

Step 7 Post Payroll

• Press the Finish button to post
• If using DocumentViewer, Press Yes to upload payment information.
• Press Yes to print the Check Register when asked after posting has completed

Payroll Check Register

• Do not change any selections; the Batch ID is set to print the transactions that were just posted.
• The register can be previewed, printed, emailed or exported.  A copy should be printed or saved for your records.

12/1/2020