Each payroll company has its own Payroll Overview page, where associated pay runs are displayed and managed. Pay runs are tied to a single payroll company and are processed independently. When multiple payroll companies are enabled, navigation to each company's overview page is required to create, review, and process pay runs. Employees receive a separate paycheck for each pay run processed under their assigned payroll company.
There are two pay run types: On-Cycle and Off-Cycle.
On-Cycle pay runs are created automatically for each pay period established on the payroll calendar. Active employees who have started payroll onboarding for a payroll company are automatically included in pay runs created for that company.
Off-Cycle pay runs can be created for payments that fall outside the established payroll calendar. Once created, earnings and deductions can be imported into the pay run to add employees. Applicable deductions are automatically applied based on the settings on the Payroll Tab of each employee's Employee Record.
Pay run lifecycle: Before a pay run can be approved, it must be calculated. Calculating a pay run applies applicable taxes and deductions for all employees in the pay run. Approving a pay run submits it for processing and payment distribution, and authorizes R365 to withdraw the total funding amount from the funding account on file. After a pay run is approved, paycheck runs and funding and payroll journal entries can be created.
Refer to the R365 Payroll Process Overview article to learn more about the full payroll process, including reviewing earnings and journal entry creation.
Security
Pay run permissions are found in the permission tree as follows:
Payroll
R365 Payroll
Payments
View Payments
Edit Payments
Create Payments
Approve Payments
Delete Payments
Calculate Payments
Verify Payments
These permissions can be added to custom user roles or individual users. The Permission Access report can be used to determine which user roles or users already have these permissions assigned. For more information, see User Setup and Security.
Setup and Prerequisites
Some prerequisites are configured once during initial setup and rarely change. Others should be verified before processing each pay run. The sections below are organized accordingly.
One-Time Setup
These items are configured during implementation. They typically do not need to be revisited unless organizational or tax details change.
Payroll Company
The Payroll Overview page and associated pay runs are displayed per payroll company. Typically, each legal entity associated with a location used for payroll is associated with a single payroll company. If more than one payroll company is in use, pay runs for each must be processed separately.
Learn more about payroll companies, legal entities, locations, and payroll common payers.
Funding Account
When a pay run is approved, R365 is authorized to withdraw the total funding amount of the pay run from the configured funding account. Funding accounts are verified to confirm sufficient funds are available before the approved pay run is processed.
The funding account for a payroll company can be viewed or changed on the Workforce Settings Account page.
Payroll Calendar
The Payroll Calendar defines pay periods and pay dates for R365 Payroll. Each pay period, a new pay run is automatically generated. All employees who have completed payroll onboarding for the payroll company are included in each pay period's pay run.
Employer Taxes
When pay runs are calculated, employer (ER) taxes are applied. ER taxes include state unemployment insurance (SUI) and local taxes per jurisdiction. Configured tax rates, jurisdictions, and tax types for a payroll company can be viewed on its Company Tax Profile page.
Tax jurisdictions are automatically determined by employees' work locations and home addresses. Learn more about how tax jurisdictions are determined.
For assistance with SUI rates or jurisdictions, contact R365 Support.
GL Mapping
The GL accounts assigned on the GL Account Mapping page determine which GL accounts are used for journal entries.
Verify Before Each Run
These items depend on employee data that can change between pay periods. Confirm each is current before calculating or approving a pay run.
Onboarding Employees to Payroll
Only employees who have completed payroll onboarding for the payroll company can be included in a pay run. Employees are onboarded to payroll on their Employee Records. New hires must complete onboarding before the pay run is calculated — they will not appear in a pay run if onboarding is incomplete.
Employee Deductions
When a pay run is calculated, deductions for each employee are applied. Deductions are configured per employee on the Payroll Tab of their Employee Record. Confirm deductions are current before processing, particularly after benefit changes or life events.
Learn more about configuring employee benefits and deductions.
Employee Taxes
Each employee must complete federal, state, and local tax forms for all jurisdictions associated with their home address and work location addresses. Tax forms are accessible on the Taxes tab of each Employee Record.
When a pay run is calculated, employee tax withholdings are calculated based on those jurisdictions. Confirm tax forms are complete for any new or recently updated employees before calculating the pay run.
Salary Employee Earnings
For employees with a salary job, earnings based on a calculated daily rate are automatically added when pay period and daily pay runs are created. Verify salary details are current on the Employee Record if an employee's pay rate or job assignment has recently changed.
Learn more about salary employees.
Rehiring an Employee
Important: Rehiring an employee does not automatically include them in payroll.
When an employee is rehired:
The rehire applies only to the selected Legal Entity / Payroll Company.
Payroll eligibility is restored for that payroll company only.
The employee must complete payroll onboarding for that payroll company before they appear in On-Cycle or Off-Cycle pay runs, receive a paycheck, or have earnings, taxes, or deductions calculated.
If a rehired employee has not completed payroll onboarding, they will not appear in pay runs — even though their status shows as active.
Before processing payroll for a rehired employee, confirm that:
The employee was rehired to the correct payroll company.
Payroll onboarding is complete for that payroll company.
Required tax forms and payroll details are finished.
Failing to complete these steps may result in missing employees, delayed pay, or failed pay runs.
Pay Run Approval Deadline
Pay runs must be approved before 11:00 am MT two days prior to the selected pay date to allow adequate time for processing and fund transfers. Funding for pay runs will be withdrawn from the funding bank account two days prior to the selected pay date.
All pay dates must be at least two business days after the pay period end date, unless a one-business-day submission schedule has been approved.
To avoid delays and potential issues with payroll disbursement, ensure that funds are available in the funding bank account on file before submitting payroll.
Example
A pay run with a Friday pay date must be approved before 11:00am MT on Wednesday.
Funding for the pay run will be pulled from the funding account on file on that Wednesday.
If the funding transaction cannot be processed due to insufficient funds, payments to employees cannot be processed and the pay date will be delayed.
Adding Earnings and Deductions to Pay Runs
Earnings are added to pay runs in several ways, depending on the employee type and data source:
Salary employees: Earnings are automatically added to On-Cycle pay runs.
Hourly employees: Earnings are pulled from the Daily Sales Summaries (DSS) using the Pull Labor Data button on the Pay Run Details page.
Earnings and Deduction Imports
Earnings and deductions can also be imported using an import template. Imports are useful when earnings or deductions originate outside R365 or require bulk entry.
Adding or Editing Earnings and Deductions Manually
Earnings and deductions can also be added or edited directly on the Payment Details screen. Manual entry is appropriate for individual adjustments or corrections to a specific employee's payment.
Pay Run Pages
Payroll Overview Page
The Payroll Overview Page displays active and historical pay runs, with options to calculate, approve, and create Off-Cycle pay runs and import earnings and deductions.
Pay Run Details Screen
The Pay Run Details screen displays employee-level totals, surfaces errors, and provides navigation to each employee's Payment Details screen.
Payment Details Screen
The Payment Details screen contains earnings, deductions, and taxes for a single payment. Details for a single payment within a pay run can be viewed and edited here.
Off-Cycle Pay Runs Window
The Off-Cycle Pay Runs window is accessed from the Payroll Overview page and sets the parameters for a new Off-Cycle pay run.
Imports Page
The Imports page displays in-progress and completed pay run imports for earnings and deductions. New imports can be added and existing ones reviewed or completed from this page.
Pay Run Reports
Report | Description |
|---|---|
Paystub | Earnings, deductions, and taxes from processed pay runs appear on each employee's paystub. Paystubs can be viewed on paycheck runs and Employee Records, and are accessible to employees via the My Pay section of the R365 Mobile App. |
Processed funding transactions are viewable on the Funding Report page. Navigation to the associated Funding Detail report is available from each transaction. | |
This downloadable report contains accrued payroll information by calendar month, including pay run summaries and payment details. | |
This downloadable report contains payroll information for a selected pay period, including pay run summaries and payment details. | |
This downloadable report contains payroll information for a selected date range (rather than a specific pay period), including pay run summaries and payment details. | |
W-2s | Year-end W-2s reflect earnings and taxes from processed pay runs. |
Other Areas Related to Pay Runs
Daily Sales Summary
Earnings for hourly employees are brought into R365 from the POS and associated with the Daily Sales Summary. Changes made to earnings in the DSS are reflected when earnings are pulled into a pay run.
Paycheck Runs
Paycheck runs contain paystubs for all employees and paper paychecks for employees who have elected to be paid by check. A paycheck run is created for each approved pay run.
Journal Entries
After a paycheck run is created, funding and payroll journal entries can be created for R365 Accounting.
Funding journal entries are standard journal entries that record the funding for direct deposit payments and paper paychecks.
Payroll journal entries contain estimated amounts from the DSS, actual amounts from the approved pay run, and the GL distribution difference. Learn more about estimated and actual payroll journal entries.