What is the first step in the payroll cycle process?

Starting a new cycle is the foundational step in the payroll process. It involves setting up the payroll system for a specific pay period, which is crucial as it establishes the framework for all subsequent activities, such as entering pay data, verifying entries, and reviewing results. This initial step ensures that all employees included in that pay period are accounted for and that the payroll system is prepared to handle the calculations, deductions, and disbursements for that cycle. Without initiating the new payroll cycle, no data can be entered, and no payroll can be processed, making it an essential starting point in the payroll workflow. This preparation sets the stage for accurate and timely payroll processing.