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Employees – Add or Change

Employee Setup #

Overview #

This article provides comprehensive guidance on setting up new employees in the ProPay payroll software. It covers essential fields, their purposes, and best practices for accurate employee information entry.

Table of Contents #

  1. Basic Employee Information
  2. Pay Information
  3. Tax Information
  4. Additional Employee Details
  5. Troubleshooting
  6. Feedback

Basic Employee Information #

Name Entry #

  • Enter the employee’s First Name and Last Name.
  • If two employees have the same name, consider adding a middle name or initial for visual identification.

Employee Number #

  • Automatically assigned by the system.

Start Date #

  • Enter the exact start date if provided by the client.

Email Address #

  • Enter the employee’s email address if known.
  • Used for emailing pay stubs, W2 forms, and other items to employees.

Pay Information #

Pay Rate #

  • Enter the dollar amount (per hour or salary per pay period).

Pay Period #

Valid options:

  • (W)eekly
  • (B)iweekly
  • (S)emimonthly
  • (M)onthly
  • (T)erminated

Note: Choose the most frequent pay period if the employer has multiple pay schedules.

Pay Type #

Valid options:

  • (H)ourly
  • (S)alary

Additional Pay Rates #

  • Enter Rate 2-7 if applicable to the employee.
  • Descriptions for Rates 2-7 can be customized in the Employer-Deductions Set Up screen.

Other Pay #

  • Enter other pay rate if applicable.
  • The description can be changed for each paycheck.

Tax Information #

W4 Form (2025) #

  • Check the box if the employee has filed the 2025 W4 Form.
  • If checked, Federal Withholding will be calculated using deductions from the 2025 W4 Form.
  • If unchecked, Federal Withholding will be calculated using the number of exemptions times $4200 per IRS Pub 15 for 2025.

W4 Steps #

  1. Employee Marital Status
  2. Multiple Jobs or Working Spouse
  3. Dependents Annual Deduction Amount
  4. Other Annual Income Taxable
  5. Deductions Amount Other Than Standard

Exemptions #

  • Enter only if the employee has not submitted the 2025 W4 form.
  • Based on the 2019 W-4 form.
  • Enter “99” for exemptions if the employee wants to be exempt due to low income.

Additional Tax #

  • Enter any additional withholding tax indicated on the W-4 form.

Percent of Gross #

  • When entered for Fed or State withholding, tax is calculated as a percentage of Taxable Gross, ignoring tax tables.

Additional Employee Details #

Web Password #

  • Left blank by default (system uses employee number as default password).
  • Used for employee access to online earnings history and pay stubs.
  • Can be changed by the user for additional security.

Department #

  • Enter Department number if applicable (must be set up in Employer Set Up).

Special Employee Types #

  • Statutory Employee: Check if applicable (like independent contractors, exempt from all taxes except FICA).
  • Tipped Employee: Check if the employee receives tips.
  • W-2 Retirement Plan: Check if the employee is under a deferred compensation plan.
  • W-2 3rd Party Sick Pay: Check only if the employer is a 3rd Party Sick Pay payer.

Troubleshooting #

Common Issues and Solutions #

  1. Duplicate Employee Names
    • Solution: Add middle name or initial for visual identification.
  2. Incorrect Tax Calculations
    • Solution: Verify W4 information and ensure the correct box is checked for 2025 W4 Form filing.
  3. Termination Date Issues
    • Solution: Remember to set the Pay Period as (T)erminated, not just enter the Termination Date.
  4. Missing Department Information
    • Solution: Ensure the Department is set up in Employer Set Up before entering it for an employee.

Feedback #

We value your input to improve our documentation. If you have suggestions or encounter issues not covered in this article, please contact our support team through the help menu in the ProPay payroll software or visit our website at https://www.Paysoft.com.


This knowledge base article is designed to assist users of the ProPay payroll software in setting up new employees accurately. For further assistance, please refer to our comprehensive help menu or contact our support team.