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Employee Management Overview

Employee Management is the heart of your payroll operation. This section covers adding and maintaining employee records, configuring pay rates, setting up deductions and garnishments, managing direct deposits, and tracking paid time off. Accurate employee data ensures correct paychecks and compliant tax reporting.

What This Section Covers

From hiring a new employee to processing their final paycheck, these topics guide you through every aspect of employee record management in ProPay. You will learn how to set up pay structures, configure tax withholding, manage benefits, and handle garnishment orders.

Employee Setup and Maintenance

The foundation of payroll processing is accurate employee information. These topics cover the essential steps for adding and maintaining employee records.

  • Employee Setup - Adding new employees and managing core employee information including personal details, pay rates, and tax withholding
  • Employee Pay Rates - Configuring hourly rates, salaries, and multiple pay rate structures
  • Employee Pick List - Using the employee selection screen for quick access
  • Merging Employees - Combining duplicate employee records

Tax Configuration

Proper tax setup ensures accurate withholding and compliant year-end reporting.

Deductions and Garnishments

Manage employee deductions for benefits, retirement plans, and court-ordered garnishments.

  • Employee Deductions - Setting up voluntary deductions including 401(k), health insurance, and other benefit deductions
  • Garnishments - Understanding the garnishment tracking system and how ProPay calculates agency payments
  • Payee Setup - Configuring payees (agencies) that receive garnishment and deduction payments
  • Electronic Garnishments - Processing garnishment payments electronically

Direct Deposit

Set up electronic payment directly to employee bank accounts.

  • Employee Direct Deposit - Configuring employee bank accounts for direct deposit, including splitting deposits across multiple accounts

Time Off and Benefits

Track vacation, sick time, and other paid time off accruals.

Key Concepts

Employee records contain:

  • Personal information (name, address, SSN)
  • Pay rate and frequency
  • Federal and state tax withholding settings
  • Deduction assignments
  • Direct deposit allocations
  • Benefit accrual balances

Important notes:

  • Terminated employees are purged at year-end and do not transfer to the new year
  • Mid-year hires may require year-to-date entry if they had prior wages with another employer
  • W-4 form changes in 2020 introduced new fields that affect how federal withholding is calculated

Getting Started

For a new employee, follow these steps:

  1. Collect completed W-4, I-9, and direct deposit authorization forms
  2. Add the employee using Employee Setup
  3. Configure Tax Exemptions and Residency if needed
  4. Set up Employee Deductions for benefits
  5. Enter Employee Direct Deposit information
  6. Configure Vacation/Sick Benefits accruals

Related Sections

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