Setting Up a Payment Location

A Payment Location is used to define how and where employees will receive their salaries. The method of payment could vary depending on your company’s process, and setting up a payment location ensures that employees are paid consistently and accurately. Below are some common payment methods:

Common Payment Methods:

• Direct Deposits: Electronic transfers made directly from the company’s bank account to the employee’s bank account.

• Cash Payments: The employee is paid directly in the form of physical bills or coins.

• Physical Paychecks: Paper checks that the employee must cash or deposit on their own.

Fields for Payment Location Setup:

• Name:

  • Enter the name of the payment location. This could reflect the method or location (e.g., "Main Bank Account" or "Cash on Hand").

• Currency:

  • Select the currency in which the payments will be made (e.g., USD, EUR, SRD). This ensures employees are paid in the correct currency.

• Payment Reference:

  • Provide a payment reference code or number, which can be used for tracking payments (e.g., for direct deposits, this could be the transaction ID or reference number).

• Bank:

  • If using direct deposits, specify the name of the bank where the company holds the account for employee payments.

• Account Number:

  • Enter the company’s bank account number from which employee payments will be processed. This field is essential for direct deposits.

• Active:

  • Use this toggle to activate or deactivate this payment location. Only active locations will be available when processing payroll.

Example:

• Name: Main Bank Account

• Currency: SRD

• Payment Reference: EMP2024-SRD

• Bank: Bank of Suriname

• Account Number: 123456789

• Active: Toggle "On"

After setting up the payment location, you will be able to select it when processing payroll, ensuring that employees are paid from the correct source using the designated payment method.