Third Party Payroll Posting

If you are using a third party application or service for payroll, you can use a standard journal entry to record the payroll run in the General Ledger in SRM. To enter a standard journal entry, go to System Maintenance -> Configure System Settings -> Accounting. Payroll is generally setup as a Clearing Journal Entry. After posting this type of entry, the amounts are automatically reset to zero in preparation for the next entry. Once standard journal entries are setup they can be completed and posted from General Ledger -> Post Standard Journals.
In general, a payroll journal entry could have the following entries:

  • Credit the bank account
  • Credit the RRSP contribution payable account
  • Credit employee benefits
  • Debit payroll expenses
  • Debit payroll expense benefits such as CPP and EI
  • Debit commission expenses
  • Debit service charges for payroll provider fees
  • Debit HST payable for payroll provider fees