Halfpricesoft Online: Payroll Guide

Step 3: Employee Setup

  • Step 1: Set up Company Payroll and Tax Information
  • Step 2: Check Setup
  • Step 3: Add Employees
  • Step 4: Add Payroll YTD Information Manually(Optional)
  • Step 5: Add and Print Paychecks
  • Payroll Faqs

  • 3.1 View Employee List

    You can click the left menu "Employees" then "Employee List" to view the Employee List screen.

    employee list

    3.1 Add an Employee

    3.1.1 Employee profile
    employee profile

    - SSN: When entering employee information, be sure to input the correct social security number. Keep in mind that once an employee is saved, the social security number cannot be changed.

    - Setup payroll for this employee option: If you need to issue paychecks to this employee, please check the option "Setup payroll for this employee". Otherwise, leave this option unchecked and you can skip payment, deduction and tax options set up.

    3.1.2 PTO Plan
    employee pto

    If your state doesn't mandate printing paid time off benefits on paystubs, you can skip this step.

    How to set up PTO plan:

    - Example 1:
    If the maximum paid sick time for one year is 40 hours (5 days), the PTO rate accrual by working hours should be 0.0192.

    40 /(52 weeks * 40 hours)=0.0192

    - Example 2:
    If the maximum vacation for one year is 80 hours (10 days), the PTO rate accrual by working hours should be 0.0385.

    80 /(52 weeks * 40 hours)=0.0385

    3.1.3 Payment and deduction
    - If the employee is paid a salary rate, simply select the "Salary Employee" option and enter the yearly salary. For example, if an employee receives $5000 monthly, the yearly salary for 12 months would be $60000.

    - If the employee is paid by hourly rate, uncheck the option box "Salary Employee", leave Year Salary field as "$0", and enter the hourly rate.

    - Set up the deductions for each paycheck.

    employee payment setup

    3.1.4 Tax options
    employee tax option

    Federal tax:
    IRS made significant changes to the W4 form in 2020, eliminating the use of allowances. If an employee submitted a W4 form after 2020, select the "using W-4 2020 or later" option.

    State tax:
    In case your state imposes state taxes, input the state tax information as required.

    Tax options:
    If an employee has special tax status, you have the option to uncheck taxes that don't apply to them. (For example: Nonprofits and churches that do not need to deduct FICA taxes for clergy members and some employees, can uncheck Social Security Tax and Medicare Tax options.)

    3.1.5 Save information
    When you add a new employee, one confirmation message will be sent to the employee's email account after you click the Finish button. Your employee needs to click the confirm link inside that message to complete the registration. So he can log in this system to time in/time out.

    save employee data

    Ralated Links

  • How to add a customized deduction and withhold it from each paycheck automatically

  • How to handle local tax

  • How to handle FUTA and SUTA

  • How to add and print a paycheck

  • How to change the pay peroid

  • Need Assistance?

    If you cannot find the answer from FAQs, please feel free to contact the support team. We are glad to assist you.