Calculate and write a manual cheque

A manual payment is a cheque written by your company to replace or add to an incorrect or missing payment from a previous payroll or to issue a payment for a future pay period.

Although the deductions for a manual cheque can be calculated using the tables provided by the government agencies, you can also use Powerpay to calculate net pay. You can enter all values in the current pay period, preview the results including net pay, write the manual cheque, and then delete all the entries made in the current pay period. To make the results clearer, do everything before entering any current payroll data for the employee.

Manual cheques can be calculated in one of two ways:

  • By yourself – use tax tables or Payroll Deductions Online Calculator (PDOC)TODD software, available from on the Canada Revenue Agency website and Quebec’s WebRAS (Calculation of Source Deductions and Employer Contributions), where applicable. These tools are available 24/7, are user friendly and they will provide the statutory deductions. All other deductions can be subtracted from the net value calculated by PDOC and WebRAS.
  • Using Powerpay to calculate the deductions.

Video

Enter a manual payment in Powerpay

Tasks

Calculate net pay for a manual cheque using Powerpay:

  1. If the employee was paid incorrectly, you may want to put a stop payment on the Ceridian-issued cheque and reverse the payment. For more information, see Reverse any incorrect payments issued prior to this pay period.  Alternatively, skip this step if you are adding to a short payment or if the employee was missed on the regular payroll run.
  2. Click the Pay Period menu and click the Enter button for the pay period you want to work with.
  3. On the Profile tab.Closed From the People menu, select People List > Profile tab., select the employee from the Employee List.
  4. Enter any employee profile changes (including basic taxation information) that would have applied to the employee’s regular cheque had it been correct.
  5. Click Save.
  6. Enter any deductions and contribution changes or additions on the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions. You may have to enter This Pay Only values if the current pay period is set up with a different deduction and contribution cycle.
  7. Click Save.
  8. Enter any tax, CPP, or EI changes on the Statutory Deductions page.Closed From the Payroll menu, select Regular Payment > Statutory Deductions.
  9. Click Save.
  10. Enter any changes to permanent earnings or any factor or rate overrides or additions on the Permanent Rates, Factors, Earnings page.Closed From the Payroll menu, select Regular Payment > Permanent Rates, Factors, Earnings.
  11. Click Save.
  12. Enter all hours worked from timesheets and salary overrides on the Employee Timesheet page.Closed From the Payroll menu, select Regular Payment > Employee Timesheet.
  13. Click Save.

  14. To get the dollar value for deductions and the net pay for the employee’s manual cheque, request a payroll preview from the Payroll Preview page.Closed From the Process menu, select Payroll Preview.

    1. Click Request. When the preview is ready, the Employee Totals button appears.

    2. Click Employee Totals.

    3. To open the Employee Details page for the specific employee, click the employee name in the list.

    4. Print the page for the employee so that you have a record of the net pay and all deductions taken.

  15. Write the manual cheque for the employee, using the net pay value from the payroll preview.
  16. Clear all entries made on this payroll for this manual cheque. The values entered to calculate the manual cheque should not be entered as a regular payment, or the employee will be issued another cheque on the current payroll.
  17. With the information you printed from the Employee Details page, enter the manual cheque information in Powerpay. For more information, see Record manual payments issued prior to this pay period
    Note:

    If the manual cheque is issued after the final pay of the year has processed, you will need to enter a year-end adjustment on a Year-End run to adjust the employee's tax form.

    Adjustments including remittance values payable to government agencies or third-parties are your responsibility as no payments are issued with a Year-End run. For more information, see Create a Year-End Run.

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