Paying salaries and recording payments

Once a payroll run is approved, you record the payment to employees. Usystems tracks how each salary was paid (bank transfer, cash, check) and posts the transaction to your ledger, updating salary expense and cash accounts.

Before you start

• The payroll run must be in Approved status.
• Ensure you have sufficient funds or credit to pay all salaries.
• Decide on the payment method: bank transfer, cash, check, or mixed (some employees paid different ways).
• Have bank account details or payment reference numbers ready.
• You need HR or finance permissions to record payments.

Steps

1. Navigate to HR → Payroll Runs Open in Usystems

2. Click the approved payroll run you want to pay.

3. Click Record Payment.

4. Select the payment method:

   • Bank Transfer: employees are paid via direct deposit to their accounts.
   • Cash: you will pay employees in cash (recorded in a cash account).
   • Check: salaries are paid by check (tracked in your account).

5. Choose the account or bank from which the payment will be deducted:

   • For bank transfer: select the business bank account.
   • For cash or check: select the cash or check account.

6. Enter the payment reference (e.g., bank batch number, check reference, or transaction ID).

7. Confirm the total payment amount matches the net salaries owed.

8. Click Confirm Payment. Usystems records the transaction and posts it to your ledger.

9. The payroll status changes to Paid. Employees' salary records are updated, and the payment is visible in your accounting reports.

Accounting impact

Payment posts to your ledger as follows:

• Salary payable account is debited (liability reduced).
• Cash or bank account is credited (cash decreases).
• If you have withholding taxes or deductions, tax payable and deduction payable accounts remain credited until those obligations are paid separately.

Tips & common mistakes

• Verify the payment date: ensure it matches when you actually paid (or will pay) employees, so your cash records stay accurate.
• Split payments (some by bank, some by cash) should be recorded in separate payment transactions for clarity.
• Keep payment references: always include a batch number, check number, or transfer ID so you can reconcile with your bank statement.
• Do not delete a paid payroll run: if you need to correct a paid salary, contact your payroll administrator to reverse and re-run.
• Tax and insurance payments (withholdings, social security) are paid separately via the Payments menu, not as part of this salary payment.