Setup of Employee Records

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Setup of Employee Records

Employee Record Setup (MLS 2026)

A Payroll record must be created for every employee who will be paid through MLS 2026.

The employee record is used throughout the system for:

•payroll processing

•labor tracking

•commission calculations

•workorder assignments

•General Ledger posting

•payroll history

•reporting

Because MLS 2026 is highly integrated, the employee code assigned here is also used within:

•Workorders

•Labor Entries

•Productivity Tracking

•Commission Calculations

•Payroll Reports

For this reason:

⚠️ employee setup should be completed carefully and consistently.


Important Setup Requirement

For new employees, you must also create the employee in:

👉 Tools → Setup → Costing

This step is required for:

•labor tracking

•technician productivity

•commission calculations

•workorder posting

If the employee is not established properly in both locations:

•labor reporting may be incorrect

•commissions may not calculate properly

•payroll tracking may become inconsistent


Why Accurate Setup Matters

The employee record controls:

•how payroll is calculated

•how taxes are withheld

•how commissions are tracked

•where payroll expenses post in the General Ledger

Errors in employee setup can lead to:

•incorrect payroll checks

•tax reporting problems

•inaccurate commissions

•accounting discrepancies

Taking a few extra minutes during setup prevents many payroll issues later.


Information Typically Maintained

Employee records may include:

•employee code

•name and address

•Social Security number

•pay type

•withholding information

•commission structure

•payroll deductions

•tax status

•General Ledger defaults

Some of this information affects:

•payroll calculations

•year-end reporting

•W-2 generation

•tax deposits


Best Practices

When creating employee records:

•Use consistent employee codes

•Verify spelling of legal names

•Confirm Social Security numbers carefully

•Review tax withholding settings

•Verify commission and labor tracking setup

•Confirm G/L posting defaults


Important Reminder

Before processing payroll for a new employee:

✅ verify that:

•the employee exists in Payroll

•the employee exists in Costing Setup

•labor tracking works properly

•commissions calculate correctly

This helps ensure accurate integration throughout MLS 2026.


In The Following Sections

The next pages explain:

•employee controls

•payroll setup fields

•pay rates

•taxes and deductions

•commissions

•payroll processing

•payroll reporting

•troubleshooting procedures

These sections work together to create a complete payroll management workflow within MLS 2026.