Payroll setup: schedules, pay items, and coverage

Configure pay schedules, earnings and deduction items, employer tax settings, payroll accounts, and the jurisdiction coverage check before running payroll.

Plans: Payroll import and W-2 readiness: Core and above. Calculation preview: rolling out
Availability: Rolling out in prelaunch
For: Owners, Bookkeepers, Accountants
In KontoCore: Payroll → Settings · Schedules · Items · Coverage

What this does

Setup tells KontoCore how often you pay, what kinds of pay and deductions exist, and which ledger accounts each one posts to.

The Coverage page checks each employee’s work and residence jurisdiction against supported rules. Anyone outside 2026 federal + Ohio is flagged as not covered.

Before you start

Add employees with address, filing status, and W-4 details (People → Employees).
Have your federal EIN and Ohio withholding account details ready.

How to

Configure

1Payroll → Settings: enter employer identifiers and payroll liability/expense accounts.
2Payroll → Schedules: create weekly, biweekly, semimonthly, or monthly schedules and assign employees.
3Payroll → Items: add earnings (salary, hourly, overtime, bonus) and deductions (pre-tax, post-tax), each mapped to an account.
4Payroll → Coverage: resolve every not-covered flag before running.

Statuses and lifecycle

Status	Meaning
Covered	Employee’s jurisdictions are within supported rules.
Not covered	Use your payroll provider for this employee.
Incomplete	Missing W-4, address, or schedule.

Corrections, voids, and reversals

Item and account changes apply to future runs; posted runs keep their original accounts.

Provider and availability notes

Payroll calculations are produced by KontoCore’s computation engine for 2026 federal rules and Ohio state rules. Independent CPA verification of these calculations is still in progress, so review every result before relying on it.

Permissions

Owners, administrators, and users with payroll administration permission.

What happens in your books

Setup posts nothing. It determines which accounts future payroll runs post to.

Common mistakes

Mapping all deductions to one liability account, which makes remittance reconciliation hard.

Troubleshooting

Employee shows Not covered

They live or work outside Ohio, or their address is incomplete.

Payroll in KontoCore: what it does todayHow payroll works in KontoCore: importing provider payroll, previewing calculations for 2026 federal and Ohio rules, and which filing and payment steps need a provider.Running payroll and pay statementsPrepare a pay run, review calculated gross-to-net figures, approve and post the payroll journal, and produce pay statements — or import a run from your provider.Employees and payroll importMaintain the employee directory, import payroll journals, and prepare for W-2 reporting.Chart of accountsOrganize accounts by type, add or rename accounts, use sub-accounts, and deactivate accounts safely.

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Last reviewed October 6, 2026