Payroll Procedures

After creating the company, the next step is to configure the company’s tax accounts (registration numbers) in the dashboard. These accounts include the identifiers used for remittances and filings with the CRA (Canada Revenue Agency) and Revenu Québec, as well as for integration with company settings.

Without configured tax accounts, it is impossible to properly generate the remittances and payroll-related filings.

👉 The company must have been created in order to configure the registration numbers.

Follow these steps to configure the registration numbers:

1. From the left menu, navigate to Payroll > Dashboard. On this page, click on the square containing 3 horizontal lines (☰) at the top left. In the menu that opens, click on Business Settings and on the Tax Accounts tab.
2. Under the Tax Accounts tab, add each applicable tax account for the company. Here are the supported tax accounts:

• CRA: Account with the Canada Revenue Agency (identifier of the type 123456789RP0001).
• Revenu Québec: Account with Revenu Québec (identifier of the type 1234567891RS0001).
  💡Note that it is possible to have more than one CRA tax account and more than one Revenu Québec tax account.

3. For each account, provide:

• The type (CRA or Revenu Québec)

• The account identifier

• A label to distinguish it in the interface

• An optional note

4. Save

Accounting entries convert each payroll into debit and credit lines ready to be exported to your accounting system. With tags, amounts can be allocated according to dimensions such as department, project, or location. The system can then directly generate an accounting entry that is already allocated, meaning already distributed according to these categories, ready to be exported without manual adjustments.

Tags are not available by default. Contact us to enable them.

In this article

• Creating Tag Groups
• Assigning Tags to an Employee
• Configuring Accounting Rules

Creating Tag Groups

Tag groups represent categories used for payroll allocation, and tags are their values. For example, a Department group containing Marketing, Sales, and Admin; an Operating Site group containing Montreal and Quebec; a Origin group containing International and Local.

The person responsible for payroll can create tag groups as follows.

1. In Folks, go to Payroll > Dashboard > ☰ > Business Settings > Tags.
2. Click + Add Tag Group.
3. In the window that opens, enter a name for the tag group. You can also add a description and select a colour.
4. Check the Journal Entry Dimension option so that the tag group is used as a dimension in journal entry reports. A business entity can have up to three journal entry dimensions.
5. Click Save.

Once the group is created, to add tags, click on it then click + New Tag.

You can edit or delete the tag group.

Assigning Tags to an Employee

The next step is to assign the appropriate tags and allocations to each employee.

An employee can have tags from multiple groups at once, and their compensation is allocated independently within each group.

Any changes in structure or allocation must be manually updated on the employee’s record.

1. For each created tag, click the three dots > Tag employees or click on the tag itself to assign employees and contractors.

2. Select the desired employee(s) then click Assign.

3. Then go to the employee’s record (menu ☰ > Employees) and click the Tags tab. You will see the assigned tags, or No tags assigned if none have been assigned. You can assign allocations by clicking Edit Tags, then Add Allocation. The menu shows existing groups and, for each, its tags. The total allocation must be 100%.

4. Click Save.

Configuring Accounting Rules

Once tags are assigned, accounting rules link each tag to an expense account and a liability account. This step makes the allocation usable in the entry.

The configuration must cover all types of lines you want allocated, including the employer portion of statutory deductions. If you allocate your expenses across each of your departments, you must configure rules so these contributions are recorded in each of your departments, not just the earnings.

In the dashboard, click > ☰ > Company Settings > Accounting Rules.

You can import time data and amounts from an external system into Folks Payroll to transmit them for payroll processing.

To do this, you must first configure your payroll item codes and export your time data via a CSV or Excel file. Please refer to the article Required Configurations for Time Import.

Once the pay codes are configured and you have the import file, the import is done in three steps. A description of the behaviour of multiple imports for the same pay period is provided at the bottom of the article.

• Step 1 - File import
• Step 2 - Data validation
  • Errors and causes
• Step 3 - Summary and sending to payroll

Step 1 - File import

1. In Folks, go to Payroll > Payroll Preparation.
2. On the payroll preparation page, at the top right, click the arrow on the payroll submission button and select Import time. If you do not have the timesheet, the submission button will take you directly to the import feature.
   
3. Next, import the CSV or Excel file you exported from your time management application. The maximum allowed size is 15 MB. Refer to the article Time Import File Format.
   The time and compensation data of your employees supported by Folks will be integrated into the current period. Data in columns not supported by the system are simply ignored during import. If an employee already has hours for this period, they will be replaced. Others will simply be added.
4. Once your file is uploaded, click Next.

Step 2 - Data validation

This step ensures that the data is consistent. The table displays the data line by line.

If your file contains errors, make the necessary corrections and re-import it. Refer to the Errors and causes section for assistance. You can also click Next to proceed with the imported lines. However, lines with errors will be excluded from the import.

Errors and causes

Each invalid cell has an error indicator with a tooltip explaining the cause. As soon as at least one cell in a row is invalid, the row status changes to Ignored, is greyed out, and excluded from aggregate totals.

A filter by status (All lines by default, Imported lines, Ignored lines) with count badges, a search across all data columns, and pagination facilitate analysis.

This section comprehensively presents the errors and warnings handled during time import. Note that the columns Line no., Employee, and Status never carry an error icon. An unfound employee is indicated by a long dash in the Employee column, with the error carried by the Employee no. cell.

Step 3 - Summary and sending to payroll

The summary presents the import in two sections — General Information and Payroll Code Information. By clicking Send to Payroll, a confirmation window informs you that sending may take a few minutes and offers a checkbox to receive an email upon completion. You can therefore launch the sending and continue with other tasks in parallel.

The data will be transmitted for employees included in the synchronization and whose profile is complete.

Behaviour of multiple imports for the same pay period

When you import time multiple times for the same payroll period, it does not add hours together nor erase everything previously assigned. The update is done by preset.

• Hours are updated according to their type (preset).

• If you re-import for the same employee and same preset → previously imported data is replaced by the new file’s data (no addition).

• If you import for the same employee but a different preset → both are retained (hours from the first preset remain intact).

• Presets absent from the new file are not affected.

Here is an example:

In Folks Payroll, Records of Employment (ROEs) are not linked to a specific pay period and can be submitted at any time.

However, it is recommended to wait until the employee’s last pay has been submitted so that all their data is included. It is not necessary to wait for this pay to be officially deposited into the employee’s bank account.

Generating a Record of Employment

1. Go to Payroll > Dashboard > ☰ > Employees.
2. Click on the desired employee, then on the ROEs tab.
3. Then click on Generate New ROE.
4. In the window that opens, enter the first day worked and the last day for which the employee was paid. For more information on what to include in the different fields, refer to Employers: How to complete the record of employment (ROE) form.
   • Block 10 – First Day Worked: In this block, you usually enter the employee's first day of work for which he or she received insurable earnings. However, if you have previously issued an ROE for that employee, the date you enter in Block 10 will be the first day the employee worked after the last interruption of earnings (that is, since the last ROE was issued). Folks will automatically generate the first date worked and paid recorded in the system for this employee. Therefore, you do not need to change this date unless your employee has been on a work stoppage since then.
   • Block 11 – Last Day Paid: In this block, enter the last day for which the employee received insurable earnings. This date usually coincides with the last day of work; however, in some cases, employees continue to receive insurable earnings after their last day of work. This occurs with paid leave, such as vacation or sick leave, earned days off, or salary continuance.
5. Select the separation code and the expected recall code.
6. Click on Generate ROE.

The system then creates an ROE in draft mode. You can click on it to review and make any necessary changes, for example, if errors have been detected.

When everything is correct, click Finalize so that the ROE can be processed by our internal team and sent directly to Service Canada. As soon as Service Canada processes the document, you will be able to find it in your ROE Web account.