Payroll for groups

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No matter what business you're in, calculating payroll can be tricky. This is especially true if there are late client payments or you take insurance. Luckily, we've created a report that will help you stay on top of changes and figure out what to pay your team members each month. 

Payments Received by Clinician Report

Many group practices successfully calculate their payroll in SimplePractice using the Payments Received by Clinician Report (located in the Insights section). This article will explain how to read this report.

How it works

As shown below, this report lists all clinicians who received payments for their appointments this month. The date range can also be altered to show payments received over a certain period of time.

The Amount column on the right side indicates how much each clinician received based on payments that were allocated to invoices.Screen_Shot_2017-10-31_at_3.57.06_PM.png

Important: If a payment is added to a client’s file, but that payment isn’t allocated to an invoice, it will not appear as part of a clinician’s total, nor on the Total allocated to Clinicians line.

FYI: What does allocated mean in this context? Payments that are entered into SimplePractice are automatically applied to first the smallest, then the oldest invoice in a client’s billing record. If a session hasn’t been invoiced, the payment can’t be allocated, and instead sits in the client’s account as a credit. Learn more about how payments are applied to invoices.

Practices who are currently having success with this report are making sure that all payments are allocated. A best practice that helps every type of business with payroll, is invoicing and collecting payment at the time of service.

If there are payments that haven’t been allocated to invoices, you’ll see this in line with a link to the Unallocated Payments and Credits report (below). Click on this report to view how much in payments hasn’t been allocated to invoices yet for each client.

Unallocated Payments and Credits Report

As you can see above, this report lists clients who have unallocated payments in their accounts. The report also displays credit invoices (or invoices that are generated in client accounts to make up for a fee adjustment). 

Note: The report will default to the current month, and only displays payments that were added in the visible date range. Widen the date range for more information about past payments. 

Some other useful tips to keep in mind

  1. Create individual invoices for each session, rather than one invoice that contains many sessions. This way payments can cover the whole invoice.

Note: You can’t allocate a partial payment to a specific invoice. The entire invoice amount must be entered into the client’s account in order for that invoice to be marked PAID.

If the invoice is too large and there are not enough payments to cover the invoice, the payments will be unallocated and not included as part of the clinician's total.

For example: An invoice is created for $300 and it covers two sessions. A payment is added for $150 (or one of the sessions). The $150 will NOT appear on the report because it hasn’t been allocated to an invoice yet. The $150 is therefore unallocated.

  1. Date your invoice in the same month as the client's session. If you invoice October's session in November, the session fee amount will display as part of November's income (even if you enter the payment in October). 
  2. Date payments correctly as soon as you receive them. When you add a payment, the payment date defaults to the current date. If you'd like to line up payments with sessions and you add a payment later, be sure to edit the date so that it matches the session.
  3. Each pay period, export the report for your records so you can compare any changes between pay periods. Adjustments happen using any payroll system, and comparing the current pay period to past ones helps you stay on top of the changes. 

Accounting for adjustments

If you make edits to past invoices or payments and don't correctly update the payment date or if you add backdated payments (payments with a date in the past) these reports can shift from month to month.

Also, when insurance payments are added, they could span sessions from previous months (and previous reports).

Important: For these reasons, we recommend that you keep a paper trail (especially if you deal with insurance payments) so if anything changes, you'll have an accurate record of what changed.

We make it easy for you to do this--simply export the report to an Excel/CSV file each time you pay your clinicians to account for any changes. Compare the past report the next time you're running payroll.

Reviewing past payroll reports and checking for adjustments is a necessary process in any payroll workflow. We’re working on making it easier to look for and identify adjustments, then take the next step to alert you when these adjustments happen.

If you have any questions or suggestions on the best way that we can communicate when an adjustment happens based on how you manage payroll for your practice, please feel free to send us a message.

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