Company contributions are an essential part of payroll management, allowing organizations to track amounts the employer pays on behalf of employees. Unlike standard deductions, these are not taken from employee pay but must be accounted for to ensure accurate payroll costing and compliance.
For Canadian payroll, company contributions previously required the Journal Generator. This is no longer required. The system now supports direct posting to the General Ledger (GL) for benefits such as:
Health and Dental benefits
Employer-paid benefit contributions
Life insurance (employer-paid portions)
How to Enable Company Contributions
Before contributions can be posted to the GL, the feature must be enabled in your payroll configuration.
Step-by-Step Instructions
Open Payroll Configuration
In the Global Search, type
Payroll Config.Select Page: Payroll Config from the search results.
Edit Your Active Payroll Template
From the Payroll Config List, locate your active payroll configuration.
Click Edit (or Edit | View) on the active template.
Navigate to the Accounting Options Tab
Within the payroll configuration, click the Accounting Options tab.
Scroll down to the posting and accounting settings section.
Enable Posting for Company Contributions
Locate the checkbox labeled Post Company Contributions.
Check the box to enable posting employer contributions to the GL.
Note: Ensure the GL accounts associated with these benefit deductions are already correctly mapped.
Save Your Changes
Click Save. The setting will apply to all future payroll runs.
What Happens After Enabling This Feature
Once enabled, employer contributions tied to benefit deductions will:
Calculate automatically as part of the standard payroll process.
Post directly to the General Ledger, removing the need for manual Journal Generator entries.
Streamline accounting by centralizing all payroll-related costs in a single posting event.
Important Considerations
No Retroactive Updates: This setting does not update past payrolls. Only payrolls processed after this checkbox is saved will post company contributions to the GL.
Avoid Duplicate Postings: If you previously used the Journal Generator to handle these amounts, you must disable or adjust those manual processes to prevent doubling your expenses in the GL.
Review GL Mapping: Before your next run, verify that your benefit codes have the correct "Employer-side" GL accounts assigned.