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<< Click to Display Table of Contents >> Navigation: MLS 2026 Fully Integrated Accounting > Payroll > Setup of Employee Records > Payroll Setup Overview |
MLS 2026 provides a fully integrated Payroll system that handles:
•payroll tracking
•wage calculations
•deductions
•payroll history
•tax reporting
•paycheck processing
Before payroll can be processed, however:
👉 each employee must first be properly established in the Payroll system.
Employee setup is performed using:
👉 Employee → Edit
which displays the Employee Setup screen.
Payroll affects:
•employee compensation
•tax reporting
•General Ledger posting
•labor tracking
•commissions
•year-end reporting
Because of this:
⚠️ employee setup should always be completed carefully and reviewed for accuracy.
Before creating employee records, it is strongly recommended that you:
•read the Payroll section of the manual
•understand how payroll processing works
•gather all required employee information
This helps prevent:
•payroll calculation errors
•incorrect tax withholding
•reporting problems
•paycheck adjustments later
Before entering a new employee into MLS 2026, collect the following information:
•Employee’s full legal name
•Employee code you wish to assign
•Address and phone number
•Social Security number
•Federal W-4 withholding information
•Additional withholding requests
•Deduction obligations
(insurance, uniforms, tool fees, garnishments, etc.)
•Payroll frequency
(weekly, bi-weekly, semi-monthly, monthly, etc.)
•Payment method
(hourly, flat rate, commission, salary, etc.)
•Pay rate or compensation amount
Having this information prepared beforehand makes setup much faster and more accurate.
Each employee is assigned a unique employee code.
This code is used throughout MLS 2026 for:
•payroll processing
•labor tracking
•workorders
•commissions
•reporting
Choose codes that are:
•easy to recognize
•consistent
•unlikely to conflict with future employees
MLS 2026 uses the employee setup information to calculate:
•federal withholding
•state withholding
•Social Security
•Medicare
•payroll deductions
Additional withholding amounts requested by employees may also be entered.
Examples include:
•extra tax withholding
•insurance deductions
•uniform charges
•tool repayment plans
The payroll system supports multiple compensation methods, including:
•hourly pay
•salary
•flat rate
•commission
•hybrid compensation systems
The employee setup determines how payroll calculations will be handled for that employee.
⚠️ Important:
The Payroll system is NOT used for:
•labor job costing
•technician productivity tracking
Those functions use information maintained in:
👉 Tools → Setup → Costing
This separation exists because:
•payroll earnings
•productivity analysis
•labor billing
•technician efficiency
are often calculated differently.
For example:
•a technician may be paid hourly
•but labor sold may still be tracked separately for profitability analysis
Please review the:
👉 Costing section of the manual
to understand how labor costing and payroll differ within MLS 2026.
Once the employee record has been created:
•payroll calculations begin automatically
•labor activity can be tracked
•commissions may be calculated
•payroll reports become available
•accounting integration is enabled
MLS 2026 will then maintain payroll history and reporting information for that employee going forward.
For accurate payroll management:
•Verify all employee information carefully
•Double-check Social Security numbers
•Confirm withholding information
•Review deduction amounts regularly
•Keep employee records updated
•Maintain current W-4 forms on file
This section works closely with:
•Payroll Overview
•Employee Record Setup
•Payroll Processing
•Payroll Deductions
•Payroll Reports
•Costing Setup
•Payroll Troubleshooting
Together, these sections provide a complete payroll setup and processing workflow within MLS 2026.