Here’s what I do to pay employees.

1. Generate a payslip by going to Payroll > Pay runs, Click “+ Add Pay Run” and choose your pay period e.g. Weekly Pay: Week ending 02 Feb 2014
2. After I’ve posted my pay run – a button for pay run option appears. I email my employees their payslips by clicking on “Email Payslips” in the drop down and following the prompts.
3. Now, I’ll create a draft bill so that I can reconcile it to the salary payments that I’ve paid from my bank account. From the same area where you had the drop down for “Email Payslips” is a dropdown item of “Create Draft Bill”. I’ll click on that.
4. In Accounts > Purchases > Draft – I’ll find the draft salary bill. Click on the relevant items and if all’s ok, I’ll approve it.
5. Once approved, you will see it in the “Awaiting Payment” tab of the Main Accounts tab. It’s ready for reconciling!
6. Now I can finally reconcile my bank payments to the salary bill! Yay! All done now.