Payroll Troubleshooting Guide

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Payroll Troubleshooting Guide

Payroll Troubleshooting Guide (MLS 2026)

Payroll is one of the most sensitive and important areas of any management system.

When payroll problems occur:

👉 they can affect:

employee trust

tax reporting

accounting balances

government compliance

payroll liabilities

year-end reporting

Fortunately, most payroll issues are usually caused by:

setup errors

missing data

incorrect employee configuration

outdated tax tables

incomplete processing steps

rather than actual software failures.

This guide will help isolate and correct the most common payroll difficulties encountered within MLS 2026.


Problem: Payroll Totals Look Incorrect

Possible Causes

Employee setup errors

Incorrect pay method

Missing timeclock data

Incorrect commission setup

Incorrect payroll period selected

Missing labor entries on workorders

Recommended Actions

1.Review the employee Pay Methods setup

2.Verify workorder labor entries

3.Confirm timeclock records

4.Review overtime settings

5.Recalculate Gross Pay

6.Compare results to prior payroll periods


Problem: Employee Did Not Receive A Paycheck

Possible Causes

Employee missing payroll period code

Employee marked inactive

Gross Pay not calculated

Payroll period processed incorrectly

Timecard missing

No earnings generated

Recommended Actions

1.Verify employee setup

2.Confirm payroll period assignment

3.Check timeclock and workorder activity

4.Re-run Gross Pay Calculation

5.Verify deductions were processed

6.Confirm Payroll Accounting was completed


Problem: Tax Withholding Amounts Are Wrong

Possible Causes

Outdated tax tables

Incorrect W-4 setup

Wrong marital status

Incorrect exemptions entered

State formulas not updated

Incorrect payroll frequency

Recommended Actions

1.Verify Federal tax tables

2.Verify State tax tables

3.Confirm payroll period type

4.Review employee withholding setup

5.Confirm additional withholding amounts

6.Recalculate deductions

⚠️ Do NOT simply override withholding amounts unless absolutely necessary.

Correct the underlying setup problem first.


Problem: Payroll Checks Will Not Print

Possible Causes

Payroll Accounting not completed from prior payroll

Printer alignment issues

Invalid bank account setup

Missing check format selection

Payroll checks not generated yet

Recommended Actions

1.Verify prior payroll is closed

2.Confirm payroll checks were created

3.Verify bank account setup

4.Test printer alignment on plain paper

5.Review check format settings

6.Confirm check numbering sequence


Problem: Payroll Period Cannot Be Processed

Possible Causes

Previous payroll still open

Payroll Accounting not completed

Gross Pay processing incomplete

Payroll period conflict

Recommended Actions

1.Complete Payroll Accounting

2.Verify prior payroll closed correctly

3.Check payroll period numbering

4.Re-run payroll review procedures

⚠️ MLS 2026 will not allow overlapping payroll periods.


Problem: Timeclock Hours Are Incorrect

Possible Causes

Employee forgot to clock out

Manual edits incorrect

Wrong payroll date range

Duplicate sessions

Missed punches

Recommended Actions

1.Review Time Clock records

2.Edit incorrect sessions

3.Remove duplicate entries

4.Verify payroll date range

5.Recalculate Gross Pay


Problem: Payroll Advances Are Not Deducted

Possible Causes

Advance entered after Gross Pay processing

Wrong employee selected

Payroll not recalculated

Advance not saved properly

Recommended Actions

1.Verify advance record exists

2.Confirm employee code

3.Recalculate Gross Pay

4.Review payroll deductions


Problem: Vacation Or Sick Pay Totals Are Wrong

Possible Causes

Incorrect employee accrual setup

Manual adjustments not entered

Incorrect hire date

Excessive advance sick pay

Recommended Actions

1.Verify employee accrual setup

2.Review Days/Year settings

3.Confirm hire dates

4.Review prior payouts

5.Adjust balances carefully if needed


Problem: Payroll Accounting Is Out Of Balance

Possible Causes

Missing General Ledger accounts

Invalid payroll defaults

Incomplete accounting process

Deleted General Ledger account

Manual accounting edits

Recommended Actions

1.Verify Payroll G/L Defaults

2.Run General Ledger Analysis

3.Confirm all payroll liability accounts exist

4.Review payroll deduction accounts

5.Re-run payroll accounting if appropriate


Problem: W-2 Totals Are Incorrect

Possible Causes

Payroll processed after year-end closing

Incorrect payroll adjustments

Tax tables updated mid-year incorrectly

Employee deduction setup errors

Recommended Actions

1.Review Year-To-Date payroll totals

2.Compare Payroll Tax Reports

3.Verify quarterly summaries

4.Review employee deduction history

5.Confirm Payroll Year-End Closing timing


Problem: Payroll Taxes Do Not Match Government Deposits

Possible Causes

Tax payments not entered

Incorrect tax payment processing

Manual checks issued outside payroll

Incomplete payroll accounting

Recommended Actions

1.Run Payroll Tax Report

2.Run Zone Tax Summary

3.Review tax payment history

4.Confirm all deposits entered

5.Verify Federal and State payment setup


Problem: Payroll Reports Do Not Match Accounting

Possible Causes

Payroll Accounting not completed

General Ledger defaults incorrect

Payroll processed outside normal workflow

Manual journal entries

Recommended Actions

1.Verify Payroll Accounting completed

2.Review General Ledger postings

3.Run Trial Balance

4.Compare Payroll Period Summary to G/L

5.Verify liability balances


Common Payroll Processing Mistakes

The most common payroll problems involve:

Outdated tax tables

Incorrect employee setup

Wrong payroll periods

Missed timeclock punches

Incorrect overtime settings

Skipping Payroll Accounting

Manual overrides without correcting setup

Incomplete General Ledger defaults

Processing payroll before reviewing reports


Recommended Payroll Safety Procedure

Before EVERY payroll:

1.Review employee setup

2.Verify timeclock records

3.Confirm tax tables are current

4.Calculate Gross Pay

5.Review payroll carefully

6.Process deductions

7.Review Net Pay totals

8.Print Payroll Period Summary

9.Print payroll checks

10.Perform Payroll Accounting

11.Backup payroll data


Important Payroll Reminder

⚠️ Payroll should never be rushed.

Payroll errors can create:

employee frustration

tax penalties

accounting problems

government reporting issues

A careful review process is always recommended.


Recommended Companion Sections

This troubleshooting guide works closely with:

Payroll Processing

Gross Pay Calculation

Payroll Accounting

Payroll Reports

Payroll Tax Setup

Employee Time Clock

General Ledger Troubleshooting

Payroll Year-End Closing

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