Why this matters

Creating pay runs enables you to process employee wages, calculate tax withholdings, superannuation contributions, and generate payslips for your employees in compliance with Australian payroll requirements.

Prerequisites

• You must have Administrator or Owner access to the entity
• Employees must be set up with employment contracts
• Employee timesheets should be approved (for hourly employees)
• Bank account details configured for payments
• Superannuation fund details set up for employees

Steps

1. Navigate to Payroll section

   Go to the main menu and click on "Payroll" to access the payroll dashboard.

2. Select your entity

   Choose the entity for which you want to create a pay run from the payroll dashboard.

3. Go to Pay Runs section

   Click on "Pay Runs" to access the pay run management page.

4. Choose pay run creation method

   You have three options for creating pay runs:

   • Next Fortnightly: Creates the next fortnightly pay run automatically
   • Next Monthly: Creates the next monthly pay run automatically
   • Custom Pay Run: Create a pay run with custom dates and parameters
5. For automatic pay runs (Next Fortnightly/Monthly)

   Click the appropriate button ("Next Fortnightly" or "Next Monthly") to automatically create a pay run with the next scheduled dates.

6. For custom pay runs

   Click "Custom Pay Run" to open the creation modal and configure:

   • Pay Run Type: Select Monthly, Fortnightly, Weekly, or Custom
   • Pay Period End Date: The last day of the pay period
   • Payment Date: When employees will receive their pay (auto-calculated as 3 working days after period end)
   • Description: Optional description for the pay run
7. Configure pay period dates

   Depending on the pay run type selected:

   • Monthly: Select the month and year for the pay period
   • Fortnightly: Select the fortnight ending date and financial year
   • Custom: Manually enter the pay period end date
8. Review payment date

   The system automatically calculates the payment date as 3 working days after the pay period end date. Adjust if necessary.

9. Create the pay run

   Click "Create Pay Run" to generate a draft pay run. The system will:

   • Identify eligible employees based on their employment contracts
   • Calculate base pay according to employment type and hours worked
   • Apply tax withholding based on current tax tables
   • Calculate superannuation contributions
   • Generate individual payslips for each employee
10. Review the draft pay run

    After creation, review the pay run details including:

    • Total number of employees included
    • Total gross pay amount
    • Total net pay amount
    • Total superannuation contributions
    • Individual employee payslips
11. Process the pay run

    Once satisfied with the calculations, click "Process Pay Run" to:

    • Finalize all payslip calculations
    • Mark payslips as ready for payment
    • Generate payment instructions
    • Prepare for STP reporting to the ATO
12. Verify payments

    After processing, use the "Verify Payments" function to:

    • Link payslips to actual bank transactions
    • Confirm payments have been made
    • Update payment status in the system

Expected Results

• Draft pay run is created with all eligible employees
• Individual payslips are generated with accurate calculations
• Tax withholding is calculated according to current tax tables
• Superannuation contributions are calculated and recorded
• Payment instructions are generated for bank transfers
• Pay run is ready for STP reporting to the ATO

Example

Troubleshooting

• No eligible employees: Ensure employees have active employment contracts
• Incorrect calculations: Verify employment contract details and timesheet approvals
• Payment date issues: Check that payment date is at least 3 working days after period end
• Superannuation errors: Verify superannuation fund details are complete

What Can Go Wrong

Related Guides

• Add Employee/Contractor
• Manage Timesheets
• STP Reporting
• Verify Payments