Payroll processing converts:

👉 employee work activity

into:

•earnings

•deductions

•taxes

•payroll checks

•accounting entries

•payroll reports

Much of the raw payroll information is gathered automatically through:

•workorders

•technician labor postings

•timeclock activity

•commission tracking

•payroll setup records

However:

👉 converting that information into actual payroll results

is handled through the Payroll Processing routines.

Integrated Payroll Management

MLS 2026 is a fully integrated management and accounting system.

As employees:

•perform work

•generate labor

•clock time

•earn commissions

•process workorders

the system continuously accumulates:

•payroll hours

•units

•commissions

•earnings totals

•deduction calculations

These values are later used during:

👉 payroll processing

to calculate final employee compensation.

Why Payroll Processing Is Important

Payroll processing affects:

•employee compensation

•tax withholding

•payroll liabilities

•General Ledger accounting

•payroll reporting

•year-end tax documents

Because of this:

⚠️ payroll setup accuracy is extremely important.

Most payroll problems occur because:

•setup information is incorrect

•withholding values are incomplete

•tax tables are outdated

•employee pay methods were configured improperly

Before Processing Payroll

Before processing employee payroll:

👉 verify:

•employee setup information

•withholding deductions

•payroll periods

•tax tables

•deduction companies

•General Ledger defaults

•employee pay methods

All setup areas described in the previous sections should be reviewed carefully.

Payroll Processing Functions

The Payroll Processing routines are used to:

•calculate employee earnings

•process taxes and deductions

•generate payroll checks

•update payroll totals

•create General Ledger postings

•maintain payroll history

The system performs most calculations automatically based on:

•employee setup

•workorder activity

•timecards

•payroll configuration data

Integrated Accounting

When payroll is processed:

👉 MLS 2026 automatically updates:

•payroll totals

•deduction balances

•employee records

•liability accounts

•payroll expense accounts

•General Ledger transactions

This eliminates much of the repetitive bookkeeping normally associated with payroll systems.

Review Results Carefully

⚠️ Before finalizing payroll:

always review:

•gross pay

•deductions

•taxes

•net pay

•overtime

•commissions

•payroll reports

Careful review helps avoid:

•paycheck corrections

•tax problems

•accounting imbalances

•employee disputes

Payroll Accuracy Depends On Setup

If payroll results are not accurate:

👉 the cause is usually:

•incorrect employee setup

•incorrect deduction setup

•outdated tax tables

•incorrect payroll periods

•missing General Ledger defaults

The payroll processing system itself is highly automated and generally very reliable once setup properly.

Recommended Payroll Workflow

A typical payroll cycle should include:

1.Verify workorders and timecards

2.Review employee setup data

3.Confirm tax tables are current

4.Review payroll deductions

5.Process payroll calculations

6.Review payroll reports carefully

7.Print or process payroll checks

8.Verify General Ledger postings

9.Backup payroll data regularly

Important Recommendation

⚠️ Never rush payroll processing.

Payroll errors can create:

•employee frustration

•accounting discrepancies

•tax penalties

•reporting corrections

A careful review process is always recommended before final payroll completion.

Recommended Companion Sections

This section works closely with:

•Payroll Overview

•Employee Setup

•Employee Pay Methods

•Payroll Tax Setup

•Payroll Reports

•Payroll Troubleshooting

•Payroll Year-End Closing

Together, these sections provide a complete payroll management and processing workflow within MLS 2026.