SOP - Payroll Step 2

Learn how to efficiently review and update your master payroll work paper, manage payroll reminders, process terminations, pay increases, and ensure accurate payroll records every pay period.

March 30, 2026 By Jessica Esslinger

In this guide, we will review and update the Master Payroll Work Paper to ensure all payroll changes—terminations, new hires, salary adjustments, and leave updates—are accurately recorded.

We will also cover organizing payroll backup files and verifying all updates before finalizing payroll.

Part Two focuses on the Master Payroll Work Paper, the central hub for tracking payroll reminders and updates.

Step #2: Double-click on "Payroll - Master" — Double-click on "Payroll - Master"

During the payroll period, we may receive updates such as terminations, new hires, benefit catch-ups, missed hours, or salary adjustments.

Any updates received via email are immediately saved to the appropriate Payroll Backup folder. For example, if case management hours are submitted by Gayle, the email and any attached documents are saved to the next payroll check date folder.

Step #3: Double-click on "10- RES ManageAbility" — Double-click on "10- RES ManageAbility"

Step #4: Double-click here — Double-click here

Upon receiving the update, save both the email and the payroll hours to the folder for the upcoming payroll check date. For example, the folder for this Friday, March 27th, has already been created (not March 26th).

Step #6: Click on "Ck 03.26.26" — Click on "Ck 03.26.26"

I'll open it.

Type "7"

Step #9: Double-click here — Double-click here

I will create a folder named Payroll Backups and save all email correspondence and related documents here.

Step #10: Double-click here — Double-click here

Step #11: Click on "03.22.26 CM Hours for" — Click on "03.22.26 CM Hours for"

To get there, it's in our HR and Accounting folder.

Step #12: Click on "HR & Accounting - Documents" — Click on "HR & Accounting - Documents"

Payroll Master, Company Payroll Reminders.

Step #13: Double-click on "Master - Company Payroll Reminders" — Double-click on "Master - Company Payroll Reminders"

Each tab lists the company code, ADP, and company name for reference. The first one we will work on is Comp 1.

Step #14: Click on "CompOne" — Click on "CompOne"

This is a good example because we have a lot to add here.

I usually highlight the check dates here.

You can see the check date here, the employee it applies to, and any notes added by Erika, Alyssa, or me.

Step #17: Click on "Pay referral bonus of $" — Click on "Pay referral bonus of $"

You can either highlight them in yellow, or filter to the 27th so that's all you see.

Step #19: Click on "Dru Hamilton" — Click on "Dru Hamilton"

Step #20: Click on "Employee" — Click on "Employee"

Step #21: Click on "Amanda Karagosian" — Click on "Amanda Karagosian"

I highlight it in yellow for my own preference.

Step #25: Click on "all deductions ." — Click on "all deductions ."

The first one we will look at is that Autumn has been terminated, and I have already processed the final payment.

Step #26: Click on "Autumn Moore" — Click on "Autumn Moore"

I need to make sure she is not on this payroll.

Step #27: Click on "effective" — Click on "effective"

We will go back to the ADP. These are the payroll work papers that were brought over.

I will go into the batch that shows any hours and quickly look for her.

Step #31: Click on "Name" — Click on "Name"

Or her name. Autumn. Autumn Moore. I do not see Autumn Moore listed here, which is great.

Step #32: Click on "Back to Manage Regular Payroll" — Click on "Back to Manage Regular Payroll"

I will also check the PTO, as she may have had PTO included, and we do not want it processed.

Step #33: Click on "PTO001" — Click on "PTO001"

Okay, nothing there.

Step #34: Click on "CANCEL" — Click on "CANCEL"

Okay, that looks good. I won't mark this as complete on the sheet until the end of payroll, when I review all the reports to make sure she's not listed on any payroll reports.

Julia, ensure the pay increase is effective on 3/8.

Step #37: Click on "Kiili" — Click on "Kiili"

Step #38: Click on "Make sure pay increase is" — Click on "Make sure pay increase is"

My salary should be 2961.54, and she will be eligible. We need to ensure her salary on this check is $2,961.54.

Step #39: Click on "Julia Kiili" — Click on "Julia Kiili"

I will wait until I am processing payroll and reviewing the reports at the end.

Step #41: Click on "- weekly salary for this check should be $ 2961.54" — Click on "- weekly salary for this check should be $ 2961.54"

Step #42: Click on "effective 3/8/26" — Click on "effective 3/8/26"

Jeremy Hamilton, leave of absence.

Step #43: Click on "Telly Miller on LOA as of 3/17/26" — Click on "Telly Miller on LOA as of 3/17/26"

We need to ensure this pay includes only 40 hours of PTO and that all deductions are maintained. I will wait to double-check the deductions section when payroll is processed.

Step #44: Double-click on "." — Double-click on "."

Step #45: Drag "Keep all deductions" — Drag "Keep all deductions"

I will find Drew Hamilton and ensure that only 40 hours of PTO are applied.

Step #46: Click on "Dru Hamilton on LOA as of 3/9/26" — Click on "Dru Hamilton on LOA as of 3/9/26"

I'm going back.

I am going to look for Drew Hamilton.

Another way is to type names instead of scrolling.

Step #49: Click on "Search Employee by File # or Name" — Click on "Search Employee by File # or Name"

Drew Hamilton. There are already 40 hours of PTO here, so I don't need to add anything manually.

Type "ham"

Step #51: Click on "DONE" — Click on "DONE"

Okay.

Step #53: Click on "Make sure pay increase is effective 3/8/26 , bi - weekly salary for this check should be $ 2961.54 . Julia will be eligible for implementation bonuses in the future ." — Click on "Make sure pay increase is effective 3/8/26 , bi - weekly salary for this check should be $ 2961.54 . Julia will be eligible for implementation bonuses in the future ."

Telli Miller.

Step #54: Click on "Miller on LOA as of 3/17/26" — Click on "Miller on LOA as of 3/17/26"

Only pay for hours recorded on the time card. It should be 48.42 hours. Keep deductions.

Step #55: Click on "Keep" — Click on "Keep"

For the keep deductions section, I will wait until we are processing payroll.

Step #56: Double-click on "." — Double-click on "."

Step #57: Click on "13.72" — Click on "13.72"

We will look up Telli Miller.

And there is...

Step #62: Click on "Search Employee by File # or Name" — Click on "Search Employee by File # or Name"

Type "miller"

I'll add this quickly. 43... Not sure if they should have overtime. So, in this...

The computer screen keeps blacking out. My screen keeps blacking out, but it probably didn't for you. Okay. Well, we're gonna pause here...

Step #67: Click on "Company" — Click on "Company"

Because I just lost connection. Check the video cable and video source.

Type "Esc"

Okay. To continue, we added the hours to ensure they matched the 48.42 hours. I opened my calculator quickly, and it works, so we can press done. That looks good. I will not mark it complete until the payroll reports are available.

Pay increase for Caitlin Bradley. Make sure her salary is set to 2,000. We will check that next. Pay separation compensation: Linda Roberts. This is her final check. We will look up Linda Roberts. Okay. We will go to Add Worksheet.

We're going to select... I have several worksheets already created. For this one, we will add additional hours. Pay separation... Press next.

Step #71: Drag "Calculator" — Drag "Calculator"

We are going to look up Linda. She isn't showing because our list is currently set to "Active." To fix this, select the "All Employees" list.

Step #72: Double-click here — Double-click here

Step #76: Click on "Pay increase effective 3/8/26" — Click on "Pay increase effective 3/8/26"

Here she is. Click Linda, then click submit. The report states to compensate her for $1,225.70.

Step #77: Click on "should have approxmiately 40 hours for" — Click on "should have approxmiately 40 hours for"

Step #78: Click on "should have approxmiately 40 hours for first check ." — Click on "should have approxmiately 40 hours for first check ."

I just lost connection on my computer.

Step #79: Click on "This" — Click on "This"

There we go.

Okay. We need to insert a column.

I will make sure there is a separation pay worksheet, so you don't have to do this.

Step #83: Click on "Search Employee by File # or Name" — Click on "Search Employee by File # or Name"

Type "linda"

Step #85: Click on "← Back to Manage Regular Payroll" — Click on "← Back to Manage Regular Payroll"

This is for other earnings. For the code, use separation pay or severance pay.

Step #86: Click on "Add worksheet + Add time / time off worksheet ± Import file" — Click on "Add worksheet + Add time / time off worksheet ± Import file"

This is the column that...

The amount from earlier. Click Save and Auto-Balance. My computer keeps freezing.

Type "Seperation Pay"

Step #93: Click on "Seperation Pay" — Click on "Seperation Pay"

Okay, pause.

Step #94: Right-click on "Seperation Pay" — Right-click on "Seperation Pay"

Step #95: Click on "Seperation Pay" — Click on "Seperation Pay"

Step #96: Right-click on "Seperation Pay" — Right-click on "Seperation Pay"

Step #97: Double-click on "Seperation" — Double-click on "Seperation"

Type "a"

Step #100: Click on "Next >" — Click on "Next >"

Step #101: Click on "Next >" — Click on "Next >"

Step #102: Click on "Search by name or posi" — Click on "Search by name or posi"

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Type "lind"

Step #104: Click on "< status is active >" — Click on "< status is active >"

Step #105: Click on "< all employees >" — Click on "< all employees >"

Step #106: Drag "< all employees >" — Drag "< all employees >"

Step #109: Click on "Submit" — Click on "Submit"

Step #111: Double-click on "Pay separation compensation $ 1,225.70" — Double-click on "Pay separation compensation $ 1,225.70"

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Type "Ctrl + C"

Step #115: Click on "INSERT ▼" — Click on "INSERT ▼"

Step #116: Click on "Column" — Click on "Column"

117

Type "other"

Step #118: Click on "Other Earr" — Click on "Other Earr"

Step #119: Click on "Entered at runtime" — Click on "Entered at runtime"

120

Type "se"

Step #121: Click on "SP1 - Severance" — Click on "SP1 - Severance"

Step #122: Drag "Other Earnings - Severan" — Drag "Other Earnings - Severan"

124

Type "Pay"

Step #125: Click on "DONE" — Click on "DONE"

Step #126: Drag "Regular Hours Severan ..." — Drag "Regular Hours Severan ..."

128

Type "Ctrl + V"

Step #130: Click on "AUTO BALANCE" — Click on "AUTO BALANCE"

Step #131: Click on "AUTO BALANCE" — Click on "AUTO BALANCE"

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Click here