SOP: Payroll Step 7

Learn how to process PTO payouts, handle payroll adjustments, and ensure accurate deductions and reimbursements. This guide covers step-by-step instructions for managing time cards, salary offsets, and payroll validation.

March 30, 2026 By Jessica Esslinger

In this guide, we'll learn how to process PTO payouts and make payroll adjustments when standard deductions or pay do not appear as expected. We will review how to use payroll worksheets to enter PTO amounts, adjust pay, and verify deductions for accuracy. This process helps ensure employees are paid correctly and all payroll records are up to date.

Let's get started

Okay. In the last video, we discussed why Drew's benefits were not included. We found that since the PTO hours appeared on his time card and are part of his regular salary, the salary will simply offset those hours.

Step #5: Click on "100200" — Click on "100200"

His PTO hours are being deducted.

But since he doesn't have any pay, no deductions are showing.

We need to process a PTO payout.

This one is hours, and he had already used hours from his PTO. Click the worksheet labeled "PTO payout." I'll go back to show where it is.

Step #10: Click on "← Back to Manage Regular Payroll" — Click on "← Back to Manage Regular Payroll"

Go to @worksheet, select PTO payout, then choose his name as shown in previous videos.

Step #11: Click on "Add worksheet" — Click on "Add worksheet"

I am going to open this.

Step #16: Click on "Wrksh004" — Click on "Wrksh004"

I will adjust this template. Since this is for hours, I will add an amount column because we do not want to...

Step #18: Click on "INSERT ▼" — Click on "INSERT ▼"

We don't want to add an additional 40 hours and choose his rate code, because that would pull 40 more hours from his bank. We want to avoid that. We need to make sure he is paid for it.

Step #20: Click on "INSERT ▼" — Click on "INSERT ▼"

I am going to the column.

Step #21: Click on "Column" — Click on "Column"

Type "Backspace"

Other earnings: we'll cover PTO.

Type "other"

Step #24: Click on "Other Earr" — Click on "Other Earr"

Type "other"

Step #26: Click on "Entered at runtime" — Click on "Entered at runtime"

We don't want to hit payout; we just want to hit PTO.

Type "pto"

Step #31: Click on "PTO - Paia" — Click on "PTO - Paia"

His other earnings include paid time for his amount.

Step #34: Click on "PTO Payout Hours Other E ..." — Click on "PTO Payout Hours Other E ..."

We will add this amount to that paycheck.

Step #36: Click on "Pay # 2" — Click on "Pay # 2"

That's fine. It is 40 hours.

Step #38: Double-click here — Double-click here

I will calculate the total amount.

Almost loaded.

Well! To calculate the amount, since he has already been paid for 80 hours... At that rate, we will take half of it, which is 923.08. We're going to place it right here, 923.08. Sometimes it doesn't work, so we copy and paste.

Save, auto balance, and double-check that I am actually going... Go to Profile and confirm that this is his usual setting. Okay. Go back to manage. We will validate this to ensure it is correct.

That's done. I'm going back in here. I need to make one change. We need to ensure the tax frequency is spread over one week, since it's 40 hours and not 80.

Step #41: Click on "236023" — Click on "236023"

Step #42: Click on "1,846.1600" — Click on "1,846.1600"

Step #43: Click on "1,846.1600" — Click on "1,846.1600"

Step #44: Click on "1,846.1600" — Click on "1,846.1600"

Type "Ctrl + C"

Now we will calculate payroll and hope it is available.

Type "Ctrl + V"

Type "923.08 + Tab"

I may need to double-check and change the replacement deduction to an adjusted deduction, as it was before. We will check that.

Step #57: Click on "SAVE" — Click on "SAVE"

Step #58: Click on "AUTO BALANCE" — Click on "AUTO BALANCE"

Step #59: Click on "236023" — Click on "236023"

There we go.

Step #60: Click on "← Back to Manage Regular Payroll" — Click on "← Back to Manage Regular Payroll"

Step #62: Click on "DONE" — Click on "DONE"

His 40 hours are shown here on his timecard. That's his payout, and then he has all of his deductions, which look good.

Step #63: Double-click here — Double-click here

Step #64: Click on "Wrksh004 ]" — Click on "Wrksh004 ]"

Double-check your deduction on the master paper to ensure everything is included.

Step #67: Double-click here — Double-click here

Since it is, we can go back to our master work paper and look at...

Step #68: Click on "DONE" — Click on "DONE"

Step #69: Click on "Calculate payroll" — Click on "Calculate payroll"

We can mark him as complete. So the, uh, comp. 1 is good to go, except for commissions. I gave Julie until tomorrow to handle that.

Step #70: Click on "✓ Payroll" — Click on "✓ Payroll"

Step #71: Click on "Download selected" — Click on "Download selected"

Now, the next step is to review each payroll to ensure everything looks correct.

Step #72: Click on "PR_PayrollRegisterCheckLeve" — Click on "PR_PayrollRegisterCheckLeve"

Step #73: Double-click on "Find Next" — Double-click on "Find Next"

Right now, Sadie is still on leave of absence.

We will follow up when she returns from her leave of absence.

Step #77: Click on "CK2 CHECKING" — Click on "CK2 CHECKING"

I will leave this yellow, remove the date, and check to make sure an additional eight hours is added for Claudia.

Step #80: Drag "86 CRE - CRITICAL ILLEE" — Drag "86 CRE - CRITICAL ILLEE"

Step #82: Double-click here — Double-click here

Go through each item one by one.

I might try a more difficult one to ensure everything is included.

Step #85: Drag "FSA - Flexible Spendi 57.69" — Drag "FSA - Flexible Spendi 57.69"

Let's choose one.

Type "com"

Step #88: Click on "Miller" — Click on "Miller"

Let's choose HAA.

Step #90: Click on "Close" — Click on "Close"

Okay, we will go to HAAs, manage payroll, and click calculate payroll.

Step #94: Click on "$ 213,044.33" — Click on "$ 213,044.33"

Step #96: Click on "Emily Dawood" — Click on "Emily Dawood"

Step #97: Click on "NR2 - TXU )" — Click on "NR2 - TXU )"

We will go to the payroll register and download the selected items.

Step #99: Click on "- Up 401K Loan from LOA" — Click on "- Up 401K Loan from LOA"

Step #100: Drag "Jess to Update Sarah and Dominque's DD on FDI , they did not transfer over from HAA Catch - Up 401K Loan from LOA" — Drag "Jess to Update Sarah and Dominque's DD on FDI , they did not transfer over from HAA Catch - Up 401K Loan from LOA"

Step #102: Click on "High - contrast only" — Click on "High - contrast only"

Step #103: Double-click on "Jordon Henderson" — Double-click on "Jordon Henderson"

Here.

Step #105: Click on "A ▾" — Click on "A ▾"

We will look under Evan Platz first because Evan had a refund for medical and dental.

Step #106: Double-click on "03/20/26" — Double-click on "03/20/26"

Step #108: Click on "Repayment of Loan" — Click on "Repayment of Loan"

Step #109: Click on "Klaudia Koperniak" — Click on "Klaudia Koperniak"

First, we will look him up. Did I spell his name incorrectly?

Step #114: Click on "FJV )" — Click on "FJV )"

Step #115: Double-click on "RPC )" — Double-click on "RPC )"

Step #116: Click on "( RES )" — Click on "( RES )"

Step #117: Click on "Rizikon ( M9H )" — Click on "Rizikon ( M9H )"

Step #118: Click on "SCA ( M9F )" — Click on "SCA ( M9F )"

Step #119: Click on "Startech" — Click on "Startech"

Step #120: Click on "Rizikon ( M9H )" — Click on "Rizikon ( M9H )"

Step #121: Click on "Do not pay under HAA ," — Click on "Do not pay under HAA ,"

Step #124: Click on "Manage payroll" — Click on "Manage payroll"

Let's... Evan Platz.

Step #125: Click on "Calculate payroll" — Click on "Calculate payroll"

Here is his refund. That looks good. Are there any other notes he had?

Step #126: Click on "Register" — Click on "Register"

Step #127: Click on "Download selected" — Click on "Download selected"

Nope. Okay. 9638.88.

Step #128: Click on "RegisterCheckLeve" — Click on "RegisterCheckLeve"

Okay. I can mark that as complete.

Step #130: Click on "Add 7 hours to this pay as 7 hours was missing from previous pay period due to employee timecard error . Make sure it isn't calculated as OT ." — Click on "Add 7 hours to this pay as 7 hours was missing from previous pay period due to employee timecard error . Make sure it isn't calculated as OT ."

We need to ensure Ava Marie Jordan has only 16 hours of pay from her time card, a payout of 40 hours, the PTO is included, and her refunded insurance premiums are present.

Step #131: Click on "and Dental" — Click on "and Dental"

Step #134: Click on "S1 MI 82.03" — Click on "S1 MI 82.03"

135

Type "Ctrl + F"

136

Type "evan"

Step #137: Click on "Find Next" — Click on "Find Next"

Okay.

Step #138: Double-click here — Double-click here

Step #139: Click on "Find Next" — Click on "Find Next"

Step #140: Click on "OK" — Click on "OK"

She has 16 hours.

She has her PTO and PTO payout.

But it looks like...

148

Type "plets"

149

Type "plets"

Step #150: Double-click here — Double-click here

She is salaried and has her 16 hours.

Step #151: Double-click here — Double-click here

Step #153: Click on "Find Next" — Click on "Find Next"

It isn't paying her for the 16 hours because we don't have a rate code for those hours, as it pulled from her time card.

Step #154: Click on "34.50 )" — Click on "34.50 )"

We need to add an adjustment worksheet and calculate the 16 hours and what that looks like.

All of her deduction reimbursements are listed. Make sure they match what was entered earlier, which they do.

159

Type "c"

160

Type "c"

Step #161: Double-click here — Double-click here

She is missing 16 hours of pay, but she still has 40 hours of PTO.

165

Type "Ctrl + A"

166

Type "eva"

Step #167: Click on "Find Next" — Click on "Find Next"

We need to make that change.

Generally, you only need to do that when it appears on a time card.

Step #169: Click on "40.00" — Click on "40.00"

Let's see.

Step #171: Click on "300017" — Click on "300017"

HIA. Huh. That was weird.

I did. Okay. "" We'll make sure she's here first and see what it did. 16 hours, okay.

Step #175: Click on "ACC Accident Ins" — Click on "ACC Accident Ins"

So then... ""

Step #176: Click on "Totl Hrs Worked" — Click on "Totl Hrs Worked"

I will add a new worksheet because we need to delete it.

Step #178: Double-click on "1,455.08" — Double-click on "1,455.08"

Additional hours.

I will choose Maria—Ava Maria Jordan. Submit.

Step #182: Click on "Manage payroll" — Click on "Manage payroll"

Step #183: Click on "90" — Click on "90"

All right.

Step #184: Click on "Name" — Click on "Name"

We need to insert a column.

Step #185: Click on "Search Employee by File # or Name" — Click on "Search Employee by File # or Name"

Since her hours are already on her time card, we just need to pay out the 16 hours.

186

Type "eva"

Step #187: Click on "Back to Manage Regular Payroll" — Click on "Back to Manage Regular Payroll"

188

Type "eva"

We will do it a little differently. "" Earnings. And then we will do Regular...

Step #190: Click on "..." — Click on "..."

Let's see.

There should be a Regular Pay listed here.

193

Type "Add'l Hours - Eva"

Step #194: Click on "Next >" — Click on "Next >"

I'll select Other Earnings.

Step #195: Click on "Next >" — Click on "Next >"

Click Done.

Step #196: Click on "Search by name or posi ..." — Click on "Search by name or posi ..."

197

Type "eva"

Step #198: Click on "< status is active >" — Click on "< status is active >"

We will calculate what the 16 hours represents.

Step #200: Click on "< status is active >" — Click on "< status is active >"

She is at 29/10/15. We will do it on the payroll register.

Her rate is 36.34.

Step #204: Click on "INSERT▾" — Click on "INSERT▾"

Oh, we gotta click...

69 times 16.

Step #206: Click on "Select a paydata field" — Click on "Select a paydata field"

This is what we will enter: 582.03.

207

Type "other "

Step #208: Click on "Other Eart" — Click on "Other Eart"

Save, AutoBalance, done.

209

Type "other "

Step #211: Click on "Entered at runtime" — Click on "Entered at runtime"

212

Type "reg"

I'm going to open this because it needs to be validated again.

Step #214: Click on "LFC - LifeCommission" — Click on "LFC - LifeCommission"

Step #215: Drag "Other Earnings - Other Ea" — Drag "Other Earnings - Other Ea"

217

Type "ngs"

Step #218: Double-click on "DONE" — Double-click on "DONE"

Step #219: Drag "Regular Hours Other E ..." — Drag "Regular Hours Other E ..."

I'm double-checking with Jordan to make sure everything is there.

Step #220: Double-click here — Double-click here

Step #221: Click on "PR_PayrollRegisterC" — Click on "PR_PayrollRegisterC"

Step #224: Click on "20.28" — Click on "20.28"

226

Type "+"

Step #227: Click on "Enable" — Click on "Enable"

Then we select Done.

We will calculate payroll.

229

Type "+36.3769*16 + Enter"

Step #231: Click on "% 950 00" — Click on "% 950 00"

Then we'll open it back up.

234

Type "582.03"

We will download the paycheck and level totals worksheet and check that the information is correct.

Step #236: Click on "SAVE" — Click on "SAVE"

Step #238: Click on "DONE" — Click on "DONE"

Here are her 16 hours.

Step #241: Click on "90" — Click on "90"

Here are the earnings for it. Here is her PTO. That looks good. You can put all of this on one check if you want.

Step #242: Click on "Search Employee by File # or Name" — Click on "Search Employee by File # or Name"

Generally, for the PTO payout, I put it on a separate check.

243

Type "jor"

245

Type "jor"

247

Type "jor"

Everything looks good. Okay. Everything looks great.

Step #248: Click on "Calculate payroll" — Click on "Calculate payroll"

Step #249: Click on "Calculate payroll" — Click on "Calculate payroll"

We will go back to the Payroll Master. Press Complete. Those two are ready. When they are ready, I usually do it as I go. This way, the girls can add it to their cash flow.

Step #250: Click on "Payroll Register" — Click on "Payroll Register"

Step #251: Click on "Download selected" — Click on "Download selected"

I give them a quick cash requirement, and then it's ready to go.

Step #253: Click on "Find Next" — Click on "Find Next"

Step #254: Click on "Find Next" — Click on "Find Next"

I go to my email.

Step #255: Click on "Find Next" — Click on "Find Next"

I have a template set up in my email, so I don't need to copy and paste as much.

I go to Insert.

Step #258: Click on "1,455.08" — Click on "1,455.08"

Except it isn't there. Let's return to it for a moment.

Step #259: Click on "LifeSP" — Click on "LifeSP"

Since my templates aren't working right now, I copied and pasted what it normally would be. You could probably do this too, since I think you have access to them.

See below for the cash requirement for 3/27. I will handle payroll or the cash requirement.

264

Type "c"

Step #265: Click on "Annual Retention Incentive for 2025" — Click on "Annual Retention Incentive for 2025"

Let's do this one. We're doing HIA.

Step #269: Click on "Don't Save" — Click on "Don't Save"

The cash requirement number is always the total debited: 248,127.19.

I am going to do the HIA payroll check.

Step #273: Double-click here — Double-click here

Step #274: Double-click on "Insert" — Double-click on "Insert"

I will address this to Paula and Amanda.

My email is acting up right now, so we'll see if it actually sends. This gives them a figure for the cash requirement. Then I press Send. I generally do that for each payroll. I'll take it from here.

Another check and balance I use is always pulling the statistical summary at the end. I want to make sure everything looks good. The main things I'll look at are in this section right here. "" "" That looks good. There are usually no checks. If I see a check number here, I will contact either Erica or that person to see if they changed the direct deposit information.

Other than that, everything looks good. This concludes this part of payroll.