Configure Prior Payroll

If you’ve started using Zoho Payroll mid-way through a calendar year, it is important to record the details of the pay runs you’ve already processed this year outside Zoho Payroll.

This ensures that your employees’ year-to-date (YTD) values for *earnings, deductions, and taxes (including CPP, EI, and federal/provincial taxes) are accurate.

The Prior Payroll feature helps you transfer your historical payroll data seamlessly into Zoho Payroll.

Importing prior payroll data helps you:

• Maintain accurate YTD values for each employee.
• Generate compliant year-end forms such as T4.

Enable Prior Payroll

If you had chosen not to record prior payroll during setup and want to enable it now:

1. Go to Dashboard and click Getting Started at the top right.
2. Click Configure Prior Payroll.
3. If you haven’t configured your pay schedule yet, click Configure Pay Schedule and set it up. Otherwise, click Enable Prior Payroll.

Configure Prior Payroll

If you haven’t added any employees yet, you can:

• Add active and terminated employees by clicking Add Employee, or
• Import employee data by clicking Import Employees.

If you’ve already added employees, click Set up Prior Payroll. You’ll then be guided through a three-step setup process:

1. Employee Information
2. Employer Information
3. Summary

Employee Information

In this step, you’ll see all the employees you’ve already added to your organization. You can also add active and terminated employees by clicking Add Employee.

Then, click each employee and add YTD wage and tax information for the current calendar year for components such as Regular Pay, Overtime Pay, tax amounts, and other relevant values.

Make sure that all employees who’ve received payments in the current calendar year are included in the Employee Information section.

Once the list is complete, click Next.

Employer Information

Here, you’ll need to enter your organization’s YTD contribution amounts to payroll taxes for the current year (such as employer CPP and EI contributions).

Once all details are entered, click Save and Continue.

Summary

Once the setup is complete, you’ll see:

• An Overall Summary, and
• An Employee Wise Summary

Review these summaries carefully and click Submit.

This completes your prior payroll setup. You can now proceed to process payrolls in Zoho Payroll.