SOP: Payroll Step 5

Learn how to manage payroll worksheets, add incentive pay, handle advances, and process commissions efficiently. This guide covers common payroll errors, worksheet management, and best practices for accurate payroll processing.

March 30, 2026 By Jessica Esslinger

In this guide, we'll learn how to manage payroll entries, including adding incentive hours, handling hourly employee worksheets, and processing special payments such as advances and commissions. The steps will cover how to reconcile hours, add or remove employees from worksheets, and ensure all payroll calculations are accurate. This process helps maintain accurate records and ensures employees are paid correctly.

Let's get started

For the last step, we added incentive hours, but the hours did not match the PDF totals of 22, 90, and 80.

I converted it to Excel and recalculated the sum of all the incentive hours of pay.

Step #5: Click on "2278.90" — Click on "2278.90"

There was a calculation error, but it does tie out.

Step #6: Click on "2278.90" — Click on "2278.90"

Step #7: Click on "2278.90" — Click on "2278.90"

Step #8: Click on "2278.90" — Click on "2278.90"

Next, go to Other Actions and select Manage Saved Worksheets. Now, add hourly.

Step #10: Click on "Other actions ▾" — Click on "Other actions ▾"

Step #11: Click on "Manage saved worksheets" — Click on "Manage saved worksheets"

Step #12: Click on "***" — Click on "***"

We will select the hourly create worksheet.

Step #13: Click on "Create worksheet" — Click on "Create worksheet"

I’ll choose hourly here and click Next.

Type "Hourly"

Step #16: Click on "Next >" — Click on "Next >"

It includes all hourly employees, but it appears to have selected more than just hourly staff.

Step #17: Click on "Next >" — Click on "Next >"

Hold on, let's check this worksheet.

Step #18: Click on "← Back" — Click on "← Back"

Step #19: Click on "Wrksh002" — Click on "Wrksh002"

Okay, since we added all the hourly, there are three here, but it looks like we need to add... I will work from the worksheet I exported from the PDF. It looks like I'm missing Leslie Lim. The computer paused again. Donna is missing, so we need to insert her.

Click Donna, then click Insert.

There she is. All right, on the standard hours line, Sue has 8.2.

Step #23: Double-click on "Lesley" — Double-click on "Lesley"

Regulars hour. I made a mistake.

Step #24: Click on "INSERT ▼" — Click on "INSERT ▼"

8.2 for Mary Donnelly, 16.6 for Leslie, 79, and Donna has zero. I didn't need to add her.

Step #25: Click on "Employee" — Click on "Employee"

Step #26: Click on "Search Employe" — Click on "Search Employe"

Type "donna"

Step #30: Click on "INSERT" — Click on "INSERT"

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

We are going to delete her backup.

103, 80, and we're going to quickly add these together, which equals 103.86.

Type "8.2"

Step #41: Double-click here — Double-click here

Yep. Now we will auto-balance. Click Done.

Type "8.2"

Manageability is good to go, but we need to...

Type "16.6"

Type "79"

Let's see. I think I added an extra worksheet by accident.

I did, so I'll delete this one.

Step #49: Click on "DELETE▾" — Click on "DELETE▾"

Step #50: Click on "Row" — Click on "Row"

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

Step #53: Click on "8.20" — Click on "8.20"

Okay.

Step #54: Double-click on "0.00" — Double-click on "0.00"

The next one we need to do is Health Alliance.

Step #56: Click on "AUTO BALANCE" — Click on "AUTO BALANCE"

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

They have a few things to add.

I will go to Health Alliance and Payroll, 327, Backups.

Step #59: Click on "Wrksh003" — Click on "Wrksh003"

We need to make an advance. We also have an incentive and incentives to add.

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

We'll do this in a minute.

Step #64: Click on "← Back to Payroll Dashboard" — Click on "← Back to Payroll Dashboard"

First, we will handle the incentive payments.

Step #65: Click on "Manage payroll" — Click on "Manage payroll"

And we're going to go to...

Step #67: Click on "- Master" — Click on "- Master"

Step #68: Double-click on "6Y7 Health Alliance" — Double-click on "6Y7 Health Alliance"

Step #69: Double-click here — Double-click here

Step #70: Double-click on "Ck 03.13.26" — Double-click on "Ck 03.13.26"

Step #71: Double-click here — Double-click here

Step #74: Click on "Fw_Request for Approval _4Q2025 Executive Incentive" — Click on "Fw_Request for Approval _4Q2025 Executive Incentive"

Step #75: Double-click here — Double-click here

I believe I was already in it.

Step #76: Click on "Payroll Report_2026 HAA_Incentive Payments" — Click on "Payroll Report_2026 HAA_Incentive Payments"

Managed payroll. We will add a worksheet.

Step #77: Click on "Advance - Mike Dulapa" — Click on "Advance - Mike Dulapa"

Do I have an incentive?

Step #78: Click on "Report 2026 HAA_Incentive Payments" — Click on "Report 2026 HAA_Incentive Payments"

Step #79: Double-click on "Report_2026" — Double-click on "Report_2026"

I have incentive pay. Let me check if I have a worksheet.

I don't. Go to Add Worksheet and select Incentive Pay.

Type " "

Next.

Step #86: Click on "← Back to Payroll Dashboard" — Click on "← Back to Payroll Dashboard"

We will select the employees listed on this worksheet.

Step #87: Click on "Manage payroll" — Click on "Manage payroll"

Step #88: Click on "+ Add worksheet + Add time / time off worksheet" — Click on "+ Add worksheet + Add time / time off worksheet"

Step #89: Click on "Select one ..." — Click on "Select one ..."

So we have...

Step #91: Click on "← Back" — Click on "← Back"

doo-doo-doo... I will split the screens again.

Step #92: Click on "Other actions ▾" — Click on "Other actions ▾"

Try naming. I'll go down one to make it easier.

Step #93: Click on "Manage saved worksheets" — Click on "Manage saved worksheets"

Step #94: Double-click on "← Back to Manage Regular Payroll" — Double-click on "← Back to Manage Regular Payroll"

Step #95: Click on "+ Add worksheet + Add time / time off worksheet" — Click on "+ Add worksheet + Add time / time off worksheet"

Step #96: Click on "Select one" — Click on "Select one"

Type "Incentive Pay"

100

Type "Incentive Pay"

Step #101: Double-click on "Next >" — Double-click on "Next >"

Step #106: Click on "Search by name or posi ..." — Click on "Search by name or posi ..."

Make sure I choose the correct Taylor.

Dan Werman.

Then we will click Submit. Same thing.

Go to Options, select Fill Column, then choose Overwrite All Cells. Pay number two; it needs to be two.

Tax frequency should be set to C, which stands for supplemental wage bonus.

Click Done, and it will autofill for us.

We go line by line to ensure everyone has their incentive pay added. For checks and balances, I'll do a quick sum of this.

Step #120: Drag "Name Swans ..." — Drag "Name Swans ..."

Step #122: Click on "Submit" — Click on "Submit"

Step #125: Click on "OPTIONS ▾" — Click on "OPTIONS ▾"

Step #126: Click on "Fill Column" — Click on "Fill Column"

Step #127: Click on "Overwrite all cells" — Click on "Overwrite all cells"

Step #134: Click on "C - Supplemental Wage Bonus" — Click on "C - Supplemental Wage Bonus"

Step #135: Click on "DONE" — Click on "DONE"

137

Type "2500 + Tab + Tab + Tab6738.55"

Step #138: Click on "6,738.55" — Click on "6,738.55"

23,338.55.

139

Type "2500"

141

Type "2500"

That looks good. Auto balance.

143

Type "1400"

"" Okay.

145

Type "1100"

Step #146: Click on "2,500.00 2,500.00 1,400.00 1,100.00" — Click on "2,500.00 2,500.00 1,400.00 1,100.00"

147

Type "1100"

Next, we have an executive example.

149

Type "2500"

Step #150: Click on "1,100.00 2,500.00" — Click on "1,100.00 2,500.00"

151

Type "800"

153

Type "600"

I need to open that because I can't remember the amount. I forgot to save all of these, but I will.

155

Type "1600"

Step #157: Double-click here — Double-click here

158

Type "=sum("

Step #159: Drag "1,600.00" — Drag "1,600.00"

160

Type "Enter"

Shh.

Step #161: Click on "AUTO BALANCE" — Click on "AUTO BALANCE"

Sec-incentive income generated.

Step #162: Click on "DONE" — Click on "DONE"

We will copy that. Next, I will return to the incentive pay and find Barb.

Step #164: Click on "HAA Monthly Incentives - Email" — Click on "HAA Monthly Incentives - Email"

Step #165: Click on "Mike Dulapa" — Click on "Mike Dulapa"

Step #166: Double-click on "Mike Dulapa" — Double-click on "Mike Dulapa"

I will insert a new row for her. I will put this on a third check, do C supplemental, and add the amount that was there.

For checks and balances, I will add these together to ensure they are correct.

Step #168: Double-click on "is $ 46,415.28" — Double-click on "is $ 46,415.28"

169

Type "Ctrl + C"

170

Type "Ctrl + C"

69,753.83.

Step #173: Click on "Wrksh007" — Click on "Wrksh007"

Auto balance. Okay. This separates the items onto different checks.

Done.

Step #175: Click on "INSERT▾" — Click on "INSERT▾"

Step #176: Click on "New Row for selected Employee" — Click on "New Row for selected Employee"

Okay.

The next one is advance for Mike DeLuca.

Step #180: Click on "0 - Std freq - O weeks worked" — Click on "0 - Std freq - O weeks worked"

Step #181: Click on "C - Supplemental Wage Bonus" — Click on "C - Supplemental Wage Bonus"

Step #182: Click on "800.00" — Click on "800.00"

183

Type "Ctrl + V"

Do, do, do.

Okay.

186

Type "Ctrl + V"

There is an advanced code.

I just need to make sure it's on here. We are going to add a worksheet.

188

Type "=sum("

Step #189: Click on "23,338.55" — Click on "23,338.55"

We're going to choose...

190

Type "Enter"

There is usually an advance.

Step #191: Click on "AUTO BALANCE" — Click on "AUTO BALANCE"

Let's see, let's see, let's see.

Okay.

Step #193: Click on "DONE" — Click on "DONE"

For this specific example for Michael, his case is being treated a little differently since it is an advance draw on his incentive pay.

Step #195: Click on "Advance - Mike Dulapa" — Click on "Advance - Mike Dulapa"

Step #197: Click on "+ Add worksheet" — Click on "+ Add worksheet"

We will add another line for him so it is taxed.

Oops. Generally, we would do an advance code so it's not taxed and then pay it back. Since they're paying it back through his incentive pay, that's how it will work for this case. We'll use pay code 3 for his third paycheck, supplemental wage, and enter 30,000. If I hear back from Amanda or Barb, I will likely make a different note in this training video. For now, we will tax it as his advance. Any future draw or monthly incentive pay he receives will be deducted from this amount. Barb will keep track of it. We will press "Done" on that.

We will check if there is anything else. There is not. Health Alliance is finished. Take action repeatedly. Risicon was good.

Financial Designs was good, as far as I know. I will double-check the folders. Generally, everything will be in the master work paper. 27. We have her missing amounts.

Then we have case managers. Already checked that one. Star Tech. There is no additional funding. Let's see.

Comp 1, we are waiting on commissions. I missed commissions for Risicon, so we will do them now. Eric and Misty. Okay. Eric's commission is $10,061.88.

We will go to Risicon and manage payroll. Go to Add Worksheet. Select 1, Commissions. Click Next. We will click Eric and Misty. Since Misty is terminated, I needed to select all employees and then submit. Here, the tax frequency is C.

And C. We will process the second paycheck for both of them. Eric is different, so we will delete him. I have three minutes left in this video, so I will quickly do Misty, then show you how to do Eric's, since he says "Different." Misty is 102,241. Renaming this now.

Auto balance completed. Let's see if I can do it in two minutes. For Eric, go to Process, then Add/Adjust or Estimate Pay. Add Eric, select Add a Payment, choose Gross or Net, then click Next. Next, we'll go to Eric. For him, the basis of pay is commission.

Tax frequency is C. His department is Risikon. Then, the selected code will be commission. We are going to put his earnings there. Eric's earnings were...

1,061.88. I will type 1,061.88. "" It might make me do that. I am not sure if it will. Go to Deductions and select Edit Deductions.

We will not withhold any deductions except for his 401(k). Does he have a 401? Yep. We will uncheck everything except his 401. Next, we will set up direct deposit.

He prefers it recorded on the worksheet. Eric Risikon wants it noted for checking two. We will enter the full amount here: 1,061.6. There we go. And we're going to do it by percentage. He prefers it at 100%. We will delete checking one because he only wants it in this checking account.

Next, we will calculate. If there are any errors, we will be notified. Okay, let's double-check his amount again. So, it is... 10,061.88. 10,061.88.

Okay. Everything looks good. All his taxes will be deducted, except for the 401(k). That looks good. Next, click submit.

Then we're going to click done. When doing this, make sure it is within the week you are processing it.