Church Accounting USER GUIDE. Payroll

Transcription

1 Church Accounting USER GUIDE Payroll

2 2 ConnectNow Church Accounting: Payroll User Guide Pub 117, August Victors Way Suite 200 Ann Arbor, MI Web: Phone: (734) main (866) support Fax: (734) ParishSOFT LLC, all rights reserved. ParishSOFT grants licensed users the right to unlimited duplication of this publication for internal use. PUB August

3 CONTENTS Introduction... 7 Introduction to ConnectNow Payroll... 8 Reporting... 8 Hosting... 8 Data Conversions... 8 Functionality and Privileges... 8 System Requirements... 9 User Checklist... 9 About This Manual... 9 Training... 9 Support Open Your Secure Payroll Website Log In Log Out Change Your Password Navigation Basic Setup Complete Initial Payroll Setup Enter Employer Information Field Descriptions for the Employer Information Screen General Information Tax IDs ACH Info Contact Info Set Up Pay Groups Recommendations for Pay Groups Field Descriptions for the Pay Group Information Screen Manage Pay Groups Edit a Pay Group Delete a Pay Group Enter Pay Items Field Descriptions for the Pay Item Information Screen Manage Pay Items Edit a Pay Item Delete a Pay Item Manage Deductions and Benefits Field Descriptions for the Deduction/Benefit Screen Manage Deductions and Benefits Edit a Deduction or Benefit Delete a Deduction or Benefit Enter Account Distributions Copy Account Distributions Edit Account Distributions Set Up Payroll Check Layout Pop-Up Blocker Employee Entry Enter Employee Information Employee General Tab ConnectNow Church Accounting: Payroll User Guide

4 4 Employment/Custom Tab Tax Data Tab Pay Data Tab Multi-Account Distribution for Pay Data Delete a Pay Data Line Item Add More Pay Data Lines to Form Delete a Deduction/Benefit Line Item Add a Deduction/Benefit Line Item Add a Health Care Benefit Personal Tab If Employee earns Personal Time each Pay Period If Employee earns Personal Time as a Lump Sum amount at the beginning of the year 45 Direct Deposit Tab Add a Direct Deposit Line Item Add More Lines Delete a Direct Deposit Line Item Paychecks Tab Process Payroll Process Payroll Payroll Overview Payroll Progress Indicator Editing an Existing Payroll Step #1 Setup Payroll Requirement for Closed Payroll Step #2 Select Employees Step #3 Edit Timecards Reset a Timecard Delete Pay Items from a Timecard Delete a Timecard Step #4 Calculate Fixing Errors Recalculate Select Employees Calculation Options for Bonus Checks Step #5 Review Step #6 Edit Paychecks Edit a Benefit or Deduction Item Calculate Overrides Edit Paychecks Edit Wages Delete a Paycheck Void a Paycheck Step #7 Print Checks Manage Check Numbers Step #8 ACH File Print ACH Receipts Step #9 Close Payroll Optional Setup Start-Up Employee Totals Enter Start-Up Employee Gross Wages Enter Start-Up Deductions/Benefits Job Category Personal Time Setup Personal Time Record Personal Time... 73

5 If Employee earns Personal Time each Pay Period If Employee earns Personal Time as a Lump Sum amount at the beginning of the year 74 Delete a Personal Time Line Item Record Personal Time End-of-Year Personal Time Processing PreNote Employees Local Tax Setup End of Year Reporting W-2/W Employer ParishSOFT Responsibilities W-2 Setup Box 10 Dependent Care Box 11 Non-Qualified Plans Box (b), Taxable Life Insurance, or other codes Box 14 Allowances Reprocess/Edit Employee s W-2 Information W-2 Boxes where is the information located in ConnectNow Payroll? Print W-2 Review Print W-2 s/w-3 s W-2/W-3 Examples W-2 Copy A, 2-Up Blank Paper (Employer s Social Security Administration Copy) W-2 Copy D, 2-Up Blank Paper (Employer s Copy) W-2 Copy 1, 2-Up Blank Paper (Employer s State, City, Local Copy) W-2 Employee Copies B&C, 4-Up Blank Paper (Employee s Copy) W-3 Blank Paper W-2 Electronic Filing Reports Reports Paycycle Employee End of Period Federal State and Local Report Options Date Selections Paygroup Selections Employee Selections Tax Statement Type Options Sort Options Report Format Report Sub-Title Memorized Report Groups Memorize a Report Group Print a Memorized Report Group Exporting Reports Print Set Employer Information Print Administrator Tasks Manage Users Reset a User s Password Permissions ConnectNow Church Accounting: Payroll User Guide

6 6 Audit Index

7 INTRODUCTION 7

8 8 Introduction to ConnectNow Payroll ParishSOFT s ConnectNow Payroll brings you a powerful, fully featured payroll system with the freedom of anytime, anywhere access all delivered in an easy-to-use interface. An online application, Payroll is designed especially for churches and schools, so staff even the non-experts can manage payroll, deductions, benefits, special clergy allowances, and personal time with confidence. Fully integrated with our ConnectNow Ledger and Payables program, all Payroll processing is automatically tracked in your general ledger, so there s no need for duplicate data entry or special imports. And because Payroll is Web-based, ParishSOFT maintains current state and federal tax tables for you, so you can rest assured that your Payroll system will always be updated with the most current rates. The ConnectNow family of Church Accounting modules includes: Ledger and Payables, Payroll, Accounts Receivable, Fixed Assets, and Ledger Report Writer. Purchase Orders is coming soon. Reporting Payroll offers full reporting on historical data for all prior years, so you can quickly access the records you need at any time. You can even work in next year s file without having to close the prior year. Hosting ConnectNow Church Accounting programs and databases are hosted by ParishSOFT, so you ll never need to update your software. ParishSOFT automatically updates your system; backs up your data; and provides Web-based access, advanced encryption, and a state-of-the-art data center that ensures your records are safe and secure but always available to your authorized users. Data Conversions Most churches that use ConnectNow Church Accounting choose to have ParishSOFT convert their old accounting data so that they can get started right away without rekeying any old records. If your church still needs data conversion, please contact our team of experts at support@parishsoft.com or x2. We offer data conversion services for the following accounting programs: Quickbooks, PDS, CMS, and Logos Accounting. Functionality and Privileges Because this guide covers functionality for both standalone church accounting systems and those hosted by parent organizations, some of the options illustrated may not be available to you. Login-based system privilege settings may also render certain functions unavailable to your user account. The Payroll system provides two different system privilege levels: Church Administrator and Church User. Only users with the Church Administrator privilege can do the following: View options in the Church Manager tab this tab is hidden to Church Users Manage Payroll system user accounts. Create a payroll with a date that is prior to the current accounting month.

9 9 Administrators may grant staff with the Church User permission level access to all other functionality in the Payroll system. For more information, see Manage Users of the Payroll System, page 113, and Permissions, page 115. If you find that some of the functionality illustrated in this guide or otherwise available in the system is not available to you, please contact your organization s ConnectNow Church Accounting administrator to discuss your system privileges. System Requirements Internet Connection Firefox 20 or above for Mac/PC users, Safari 6 or above for Mac users, or Internet Explorer 8 or above for PC users Acrobat Reader X or above Cookies and Java Script must be enabled on your PC Pop-ups must be allowed for the ConnectNow Church Accounting site fund/department allocations, deductions, special clergy benefits, check layout and printing, and more. The Payroll system provides informative messages and mouseover tips (i.e., tips that display when you position your mouse pointer over a particular field or other screen area) based on your user activity. The examples shown in this document use demonstration data and do not represent the actual records of any person or organization. Training ParishSOFT also offers classes in two convenient formats: teletraining or inperson. Each class is taught by an experienced ParishSOFT instructor and conducted in a hands-on format that is designed to help you get comfortable with the Ledger and Payables software quickly. User Checklist Before you can log in to your secure Payroll website, the ConnectNow Ledger and Payables system must be set up and functional. In addition, you will need the following to set up payroll or to access your payroll records: Your church s secure web address A valid login (i.e., Username and Password) About This Manual This guide documents the features and functionality of the Payroll application using simple, task-based examples to illustrate how to use the tools to manage efficiently your employee records, pay groups, ConnectNow Church Accounting: Payroll User Guide

10 10 Support Convenient support links, located on your main Payroll dashboard, make it easy to contact support, open the user guide or online help tools, or review release notes. For customer support, please contact us via phone or , or use our online tools. Toll Free: Web: x231

11 11 Open Your Secure Payroll Website Your ConnectNow Ledger and Payables application is available from any web browser to users with valid login credentials. Complete the following steps to access the application: 1. Open your web browser application (e.g., Microsoft Internet Explorer, Mozilla Firefox, etc.). 2. Enter your secure Ledger and Payables http address in your browser s address line. (Example Your Site May Vary) 3. Add the website to your list of frequently visited sites. Firefox users can click Bookmarks > Bookmark this Page; Internet Explorer users can click Favorites > Add to Favorites. Log Out To protect your sensitive employee and payroll records, log out of the Payroll website when you are finished working in the system or if you need to leave your computer unattended. The Logout button is located in the upperright corner of your Ledger and Payables browser window. Simply click it to sign out of the system. Change Your Password You can change your own password by accessing your personal user profile. 1. Click on your user name in the upper-right corner of your screen. Your personal user profile will open. 2. Enter your Current Password, New Password, Confirm the New Password. Log In Enter the login credentials (Username and Password) provided by your organization s ConnectNow Accounting Church Administrator, and click the Submit button. 3. Click Change Password and Submit. Your password is now changed. ConnectNow Church Accounting: Payroll User Guide

12 12 Navigation A valid login will take you to the ConnectNow Church Accounting page. Payroll setup and processing functions are available from the Payroll tab. Additional tabs for other ConnectNow Church Accounting products may also be available to you depending on which modules your church has licensed and the system privileges allowed for your login. The upper right of the screen shows your login information, parent organization, and church name. Navigation icons for Payroll Process, Employees, Setup, and Reports are available on the upper-left side of the screen and provide fast, easy access for staff who manage your payroll. Below the icons is the current dashboard view of your payroll. The upper-left side of the dashboard shows real-time summary data from your last payroll, account details for your current payroll, and tax form reminders. The dashboard also links you to the Next Step needed for your current pay cycle processing. The graph in the lower-left shows the last 12 months of gross wages. Your complete list of Employees displays on the right. Employee names and addresses are linked, so you can make fast updates to employee information or send a quick . Click with your mouse to navigate to any area of the Payroll program.

13 13 BASIC SETUP

14 14 Complete Initial Payroll Setup The process in the flowchart on this page illustrates the basic initial setup that new users will need to complete before they begin using the ConnectNow Payroll system. Note that your ConnectNow Ledger and Payables system must be set up prior to processing payroll. Begin Payroll Setup For instructions on completing each of the setup items, please see the pages referenced for each task in the following list. 1. Enter Employer Information, page Set Up Pay Groups, page Enter Pay Items, page Manage Deductions and Benefits, page Enter Account Distributions, page Set Up Payroll Check Layout, page Enter Employee Information, page Prenote Employees for Direct Deposit, page 78. Instructions for Processing Payroll begin on page 50. Is Ledger & Payables Setup Complete? No Set up ConnectNow Ledger and Payables System Yes Enter Employer Information Set Up Pay Groups Enter Pay Items Run Payroll Cycles Manage Deductions/Benefits Enter Account Distributions Set Up Payroll Check Layout Select Employees, Edit Timecards, Calculate, Review/Edit, Print Checks, Submit ACH File Close Payroll Enter Employee Information Prenote Employees for Direct Deposit Reports End Payroll Setup Process Payroll

15 15 Enter Employer Information Use the Employer Information screen to set up your general church information; your federal, state and local tax IDs; and your ACH (Automated Clearinghouse) information for direct deposit processing. 1. Click the Setup button. 2. Click Employer Info. 3. Enter your church s General information, including the full name of your church, address, and phone. 4. Enter the Tax ID numbers for Federal, State, and Local withholding. The system provides four State and four Local tax ID fields. 5. If paying your employees by Direct Deposit, enter the ACH Information required for processing your direct deposits. Field descriptions are provided on page Enter the primary Payroll user s Contact information. 7. Click Submit to save your entry and proceed to Set Up Pay Groups, page 17. ConnectNow Church Accounting: Payroll User Guide

16 16 Field Descriptions for the Employer Information Screen General Information Employer Name Enter the name of the church or other organization issuing payroll, up to 30 characters as it should appear on your checks, 941 and W-2 s. Address and Address 2 Enter the address of your organization as it should appear on your checks, 941 and W- 2 s, up to 30 characters per address line. City, State, ZIP Code, Phone Enter the city (up to 30 characters), state, ZIP Code, and phone number of the organization. The address entered here will display on your printed paychecks, 941 and W-2 s the phone number will not display on checks. Tax IDs Federal Tax ID Enter the Federal Tax ID number for your organization. State 1 State 4 Enter the two digit state abbreviation and state tax ID number for your organization. If you pay employees who reside in multiple states, enter up to four state abbreviations and tax ID numbers. Local 1 Local 4 Enter the local tax abbreviation and local tax ID number for your organization. If your area has more than one local tax, enter up to four local tax abbreviations and local tax ID numbers. ACH Info The fields for ACH Information must be completed in order to process direct deposits. ACH files may be uploaded directly to your Church s bank or may be provided to a third party ACH service. ConnectNow Payroll can accommodate both methods of Direct Deposit. If you are unsure of the data you should enter in these fields, contact your ACH service provider for more information. Immediate Destination Nine-digit or ten-digit routing number of the receiving point to which the file is being sent. This is typically the applicable Federal Reserve routing number. Immediate Origin Nine-digit or ten-digit routing number of the sending point of the file. This is typically your bank s routing number. Immediate Destination Name Name of the receiving point for which the file is destined. This is typically your bank s name. Immediate Origin Name Name of the sending point of the file. This is typically your church s name. Originating DFI Identification Eight-digit routing number to the Department of Financial Institutions (DFI) originating entries. This is typically your bank s routing number minus the last digit. Account Number Your church s bank account number. Batch Number Assigned automatically and sequentially by the system for each ACH file submission. The number in this field indicates the total number of batches assigned by the system. Contact Info Enter the Contact Name, Phone, Fax and (required) for the primary Payroll user in your Organization.

17 17 Set Up Pay Groups Use the Pay Groups screen to define pay periods for groups of employees paid at the same frequency as specified in the Pay Periods Per Year field. You can set up pay groups to match pay frequency (Monthly Salary, Monthly Hourly, Semi-Monthly, Weekly, etc.), staff title (Day Care, Pastor, Office Staff, Teachers, etc.) or whatever else makes sense for your organization. Once you have Pay Groups set up, you can process payroll by Pay Group. Use separate pay groups for employees paid from different bank accounts. If you process payroll for teachers who are paid only for part of the year (e.g., Sept June), we recommend setting up a separate pay group then changing your payroll processing during the summer break is as easy as not selecting the Teachers pay group. 1. Click the Setup button and select Pay Group. 2. Click New Pay Group (located above and left of the Pay Group Information fields). 3. Enter the Pay Group Number. 4. Enter the Description of the Pay Group. 5. Enter the number of Pay Periods Per Year. ConnectNow Payroll uses the Pay Periods Per Year field to annualize the gross pay, deductions and benefits for each employee and use the Federal and State Annual Tax tables to determine applicable taxes; then de-annualize the amounts for the current payroll. 6. Click Submit to save your entry. You can now assign employees to the new Pay Group from the Employee Information > Pay Data screen. Recommendations for Pay Groups ConnectNow Church Accounting: Payroll User Guide

18 18 Field Descriptions for the Pay Group Information Screen Pay Group Number Enter the unique ID number for your pay group, up to 30 characters. The system will sort your list of Pay Groups by ID number in the Quick Find list. Once you save your new Pay Group, this field cannot be edited. Description Enter the unique description of your pay group, up to 30 characters (e.g., Monthly Salary, Monthly Hourly, Semi-Monthly, Special). Delete a Pay Group Pay Groups that are not assigned to employees can be deleted from the system. If a user tries to delete a Pay Group that is in use, the system will provide an error message, along with a list of the employees who belong to the Pay Group. You can then remove the employee(s) and delete the pay group. To delete a Pay Group, view the details on the Pay Group Information screen and click the Delete button. Pay Periods Per Year Enter the number of times payroll will be processed for this pay group during a oneyear period. Manage Pay Groups Use the Quick Find to view the details of any Pay Group in your system. 1. Click the Lookup button. 2. Select the Pay Group from the list. 3. Click Find Item. Edit a Pay Group The Pay Group Information will display. You may edit the Description or Pay Periods Per Year for any Pay Group in the system just make a change and click Submit. Note the Pay Group Number cannot be changed.

19 19 Enter Pay Items Use the Pay Item screen to define the things that might be included in an employee s pay (e.g., salary, housing allowance, mileage, and any reimbursements, etc.). The Pay Item Description(s) is printed on the employee s paycheck stub. 1. Click the Setup button and click Pay Item. 2. Click New Pay Item (located above and left of the Pay Item Information fields). 6. Choose the Default Gross Pay Account (optional). 7. Click Submit to save. Field Descriptions for the Pay Item Information Screen Description Enter up to 30 characters in this field to identify each unique Pay Item. The Description will be selectable from the employee s Pay Data screen, and it will print on paychecks when selected as a line item for a given employee. Pay Item Type Your selection of Taxable or Non-Taxable determines whether the system calculates taxes for a given Pay Item. 3. Enter the item s Description as you would like it to appear on employee paycheck stub. 4. Choose the Pay Item Type of Taxable, Non-Taxable or Clergy. Taxable Pay Item Types would include lay employee Salary items. Non-Taxable Pay Item Types would include Allowances, Reimbursements, Mileage, etc. Default Check Sequence The number in this field is used to control whether Pay Items print on one check or on separate paychecks. To print all Pay Items on a single paycheck, always use a check sequence of 1. When you wish to print Pay Items on separate checks, enter a Check Sequence of 2 or more. This will result in an additional paycheck printing for the employee for the selected Pay Item. For example, you may want to pay the Pastor s Salary on one paycheck but issue a separate check for his Housing Allowance to accomplish this, just assign the Housing Allowance Pay Item the Check Sequence 2. Clergy Pay Item Types accumulates wages that are subject to Federal and State income tax withholding. However, because withholding for Social Security and Medicare is typically not calculated for employees in this group, you should disable withholding for Social Security and Medicare taxes. 5. Enter the Default Check Sequence (required). ConnectNow Church Accounting: Payroll User Guide

20 20 Default Gross Pay Account This selection determines the account to which the Pay Item disbursement will be allocated in your ConnectNow Ledger and Payables system when you process payroll. This field is optional. If you would prefer to assign this directly on the Employee s Pay Data display, leave this field blank. Manage Pay Items Use the Quick Find to view the details of any Pay Item in your system. 1. Click the Lookup button or type the first letter of the Pay Item description. Edit a Pay Item Once you have displayed the Pay Item Information, you may edit any of the details just make the desired change and click Submit. Delete a Pay Item Pay Items that are not assigned to employees can be deleted from the system. If you try to delete a Pay Item that is assigned, the system will inform you that the item is in use and cannot be deleted. To delete a Pay Item, view the details on the Pay Item Information screen and click the Delete button. 2. Select the Pay Item from the list. 3. Click Find Item.

21 21 Manage Deductions and Benefits Use the Deductions/Benefits screen to define any line item taken from an employee s pay (e.g., 403(b), Health Insurance, Garnishment, etc.). You must specify a liability and/or expense account link for all gross pay accounts on the Account Distribution screen to calculate a payroll. 1. Click the Setup button and click Deduction/Benefit List. Items with Codes less than or equal to 10 are systemdefined deductions and benefits for standard items. 3. The system will create a copy of the item you selected and assign it the next available Code number. Scroll to the end of the list view to locate the newly copied deduction or benefit and click the Edit button to enter the item s details. 2. To add a new item, click Add a New Deduction/Benefit From Template, and click the Select button to create a new benefit or deduction based on an existing template. ConnectNow Church Accounting: Payroll User Guide

22 22 4. Change the Description fields as needed, entering the text as you would like it to display on employee paychecks. 5. Select either Deduction or Benefit as the Type. 6. The Code Number is generated sequentially and automatically by the Payroll system. 7. Select a W2 Category for the item. 8. Check or uncheck the Subject to Tax boxes as appropriate (see field descriptions below for more information). 9. Click Submit to save, and proceed to page 24 to Enter Account Distributions. Field Descriptions for the Deduction/Benefit Screen Description Name of the deduction or benefit as it will appear on employee paychecks and in your Payroll system. The entry must be unique. Type Specify whether the item is a Deduction or Benefit. Deductions are withheld from the employee's check and accumulated in a liability account for payment. Benefits are calculated amounts the employer pays on behalf of the employee for a service or tax (e.g., insurance, Social Security). Benefit amounts are accumulated in a liability account for payment and are automatically expensed. Code Number Assigned sequentially and automatically by the Payroll system. You can edit this field to assign another code number of 11 and higher. W2 Category Used for checking applicable boxes for Form W-2 printing. Choices include Other, Retirement, Tax Deferred, and Retirement and Tax Def. Subject to Tax Check the boxes to determine how deductions and benefits affect tax calculations. When the checked taxes are calculated, the taxable wage amount used will be reduced by the amount of the deduction. For benefits, the benefit amount will be included in the taxable total.

23 23 Manage Deductions and Benefits To view the details of any deduction or benefit, click the Edit button from the main list view of Deductions/Benefits. Edit a Deduction or Benefit Once you have displayed the details of the deduction or benefit, you may edit any of the details just make the desired change and click Submit. Code Numbers 1-10 are reserved by the system and cannot be edited. Once you have the details view open, you can use the Quick Find to view the details of another deduction or benefit in your system. 1. Click the Lookup button or type the Code Number of the deduction or benefit. Delete a Deduction or Benefit A deduction or benefit that is not in use by the system can be deleted from the system. If you try to delete an item that is assigned, the system will inform you that the item is in use and cannot be deleted. To delete a deduction or benefit, view the details on the Deductions/Benefits screen and click the Delete button. 2. Select the deduction or benefit from the list. 3. Click Select. ConnectNow Church Accounting: Payroll User Guide

24 24 Enter Account Distributions Use the Account Distributions screen to define liability and expense accounts from the Ledger and Payables system that will be updated with each payroll posting. Liability accounts are credited (increased). Expense accounts are debited (increased). ConnectNow Payroll will automatically take the monies withheld from the employee s check for all Deductions (e.g. Federal Tax, Health Insurance, 403 (b), etc.) and store in the Liability Accounts you select on this display. The system will also book the expense portion of any Benefit (e.g. Social Security, Medicare, 403(b),etc.) for you and store the amounts in the Liability Accounts you select on this display. When it comes time to pay the bill for the Deductions and Benefits, use the Liability Accounts as the Bill Line Item which will Debit (decrease) the Liability account. Director, or priest s Housing Allowance. 1. Click the Setup button, and click Account Distributions. 2. Locate the desired gross pay expense account in the Quick Find list and click Select Account. 3. For each deduction line item, click the lookup arrow and select the appropriate liability account. 4. For each benefit line item, click the lookup arrow and select a liability and an expense account. 5. Click the Submit button to save. Account Distributions are defined for each gross pay account. Gross pay account are normally salary expense accounts used to pay an employee s regular or allowance pay. Examples include Pastor s Salary, Youth

25 25 Copy Account Distributions To save time, you may copy an account distribution from one gross pay expense account to another. This is a convenient way to set up account distributions for like gross pay accounts, such as Parish Clergy Salaries and Contracted Clergy. After you copy account distributions, you may edit liability and expense account settings for individual line items as needed. 1. Locate and select the gross pay account containing the distribution settings you wish to copy using the Quick Find. NOTE: All Gross Pay Expense Accounts must have all Deductions and Benefits distributed to the appropriate Liability and Expense accounts; including Clergy Salary expense accounts. You will be able to choose which taxes are withheld on each Employee s Tax Data tab. 2. Click the Select Account button. The account distribution settings will display. 3. Click the Copy button, located at the bottom of the screen. 4. Select the account to which you wish to copy the selected distributions, and click the Copy button. The system will return you to the previous screen containing the copy from settings. To view the settings in the copy to account, select that account using the Quick Find. ConnectNow Church Accounting: Payroll User Guide

26 26 Edit Account Distributions Account distributions may be edited to change expense or liability account settings as needed. 1. Locate and select the gross pay account using the Quick Find. 2. Select the liability or expense account setting you wish to change and press your <Delete> key to clear the field. 3. Click into the lookup table and select the new liability or expense account. 4. Click the Submit button to save.

27 Set Up Payroll Check Layout Use the Set Up Payroll Check Layout screen to define the layout of your payroll checks and specify precisely the position of data that will be printed on your check. The default settings for checks apply to checks purchased through But you can customize the check layout for your existing check stock. 1. Click the Setup button, and click Payroll Check Layout. 2. Select the Bank Account from which your payroll checks will be paid. Each account may have a different check layout. Check Date Check Amount Check Number Check Amount (Words) Check Payee Check Memo Payee Name/Address 27 NOTE: Adjustments are made in 1/100 of an inch increments. To move ¼ inch, enter 25, to move ½ inch, enter 50, to move 1 inch enter Under Payroll Check Page Layout Options, select your Payroll Check Format from the following four options: Check-Stub-Stub Stub-Check-Stub Check-Check-Check 3. Specify any Left/Right and Up/Down position adjustments needed for each check field by clicking the green arrows. Adjustments are made in 1/100 inch increments to the following fields:

28 28 5. For the option Print Check # On Check, specify Yes or No. NOTE: You must continue to purchase pre-numbered checks. This option will print the check number in small characters near the pre-printed check number and is for auditing purposes. 6. For the option Print Check Payee, specify Yes or No. If your Employee s Name prints in an additional line under Pay to the order of:, select Yes on this option. needed prior to processing your first payroll. NOTE: You must click Save Settings before clicking Print Test Check or the system will revert back to your previous settings. 9. Click Save. The sample printed check layout below shows the positioning of fields and sections for a check-stub-stub layout. If the Pay to the order of is built into the Employee s Name and Address and the employee s name prints only once on the check, select No on this option. 7. Under Overall Page Adjustments, change the left and right Margins and customize the Section Divider spacing to change the spacing between check, stub, or account number sections as needed. 8. Click Save Settings. Then click Print Test Check, print a sample check on one of your test forms, and inspect the positioning of all fields carefully. Make and save any additional adjustments TIP: If using the same check stock as Ledger & Payables, and you ve already completed the check layout in Ledger & Payables, print the Ledger & Payables Check Layout display and simply insert the numbers used in the previous layout.

29 29 Pop-Up Blocker You may receive a notice that pop-ups have been blocked for this site. You must always allow pop ups for this site to print checks. In Firefox, click the Options button on the right. Then, then choose this option: Allow pop-ups for name of diocese.connectnowaccounting.com. In Internet Explorer, right-click the yellow bar for more options. Then, choose this option: Always Allow Popups from This Site. ConnectNow Church Accounting: Payroll User Guide

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31 31 EMPLOYEE ENTRY ConnectNow Church Accounting: Payroll User Guide

32 32 Enter Employee Information Use the Employee Information screen to add new employee records to the Payroll system or to edit existing employee records. Independent contractors or others who would receive a 1099-MISC form should be entered and paid as a vendor in the Ledger and Payables system. Employee information is organized on a series of nine tabs. The only required tabs to enter an employee are General, Tax Data and Pay Data. The remaining tabs are either optional or informational only. Employee General Tab To add new employee records, complete the following steps. 1. Click the Employees button, a list of previously entered employees will display. 2. Click Add a New Employee. Enter the employee s General Information. All fields are limited to 30 characters unless otherwise noted. Suffix Enter a name suffix or credential (e.g., Jr., PhD, Sr). Address, Address 2, City, State, and ZIP Code (or postal code) Enter the employee s complete address as it should be printed on paychecks. Gender M for male or F for female. This field accepts only one character. Birthdate Enter in mm/dd/yyyy format or select from the calendar lookup table. The employee s age will calculate based on the date in this field and display to the right of the birthdate. Phone Number, Cell Phone and Enter the contact information for the employee. Emergency Contact name and Emergency Phone Enter the emergency contact person s name and phone number. It s helpful to note the relationship of the person to the employee either field (e.g., sister, spouse) so that in the event of an emergency, your staff will be better informed about whom they are contacting. 3. Click Submit to save and activate the links to the remaining employee information tabs. First, Middle, and Last Name (required) Enter the employee s full name as you would like it to appear on paychecks in the available fields. We recommend you enter the employee name exactly as it appears on his/her Social Security card to keep compliant with IRS payroll requirements.

33 33 Employment/Custom Tab Click the Emp/Cust tab, check the Active box (if applicable), complete the fields on this screen as appropriate for the employee. Employment & custom information includes the employee's job title, employment date and physical limits. Also on this dialog are several custom fields you can use for whatever purposes are most useful to you. All fields are limited to 30 characters unless otherwise noted. Active Employment status of the employee. Only employees with a status of Active will be available for a given payroll process. Check the box to set the employment status to Active. Inactive employee data will show up on Payroll reports for the period in which they were paid. Job Title Enter the employee s title as it should appear in your Payroll system. Job Category Select the Job Categories you ve created from the lookup table (see Job Category on page 72). Employment Date and Employment Date 2 Enter the date using MM/DD/YYYY format or select a date from the calendar lookup. Use the Employment Date 2 field when a previously terminated employee begins working for your organization again. ConnectNow Church Accounting: Payroll User Guide

34 34 Termination Date and Termination Date 2 Enter the date using MM/DD/YYYY format or select a date from the calendar lookup. Use the Termination Date 2 field when an employee has been terminated from a position and has a start date in the Employment Date 2 field. Deceased Check to indicate the employee is deceased. This setting is provided for the purpose of reflecting an employee s Deceased status properly on the W-2 form. Retirement Number If applicable, enter the employee s retirement number. Last Physical Enter the date of the employee s last physical examination. Physical Limitations If applicable, enter a description of the employee s physical limitations. Custom Number 1 2 Two custom number fields can each store up to a 30-character alphanumeric ID for each employee. These fields are ideal places to track an employee number, benefit plan number, etc. Custom Text 1 4 Four custom text fields can store additional information of up to 30 alphanumeric characters each. These fields are ideal places to track location codes, certifications, etc. Custom Date 1 4Use the four custom date fields to record dates that you wish to track in your Payroll system (e.g., certification or retirement dates). Enter dates in MM/DD/YYYY format or select dates from the calendar lookup. Custom Long Text Use the custom long text field to record custom information of up to 30 alphanumeric characters. Click Submit to save. Tax Data Tab Employee tax data defines which taxes will be withheld from the employee's paycheck. It also records their marital status, deductions, and allowances. The tax tables within the ConnectNow Payroll system are updated regularly on our servers, so you can rest assured that each time you process your payroll, taxes are being calculated using the latest tables from the IRS and each of the 50 U.S. states. You do not need to update tax tables within the system. If any localities within your employees states of residence require that you withhold local taxes, you can add those rates to the system (see Local Tax Setup on page 79). All fields are limited to 30 characters unless otherwise noted. Click the Tax Data tab to define which taxes will be withheld from the employee s paycheck. Boxes are checked by default for Social Security, Medicare, State, and Federal Tax Withholding, as well as Subject to State Unemployment. Uncheck to deselect or check to select withholding options as appropriate. 1. The Payroll system assumes that Social Security Tax should be withheld for each employee, so the Withhold Social Security Tax box is checked by default. If Social Security Tax should not be withheld for the selected employee (e.g. Clergy), uncheck the box. 2. The Payroll system assumes that Social Security Tax should be withheld for each

35 35 employee, so the Withhold Medicare Tax box is checked by default. If Medicare Tax should not be withheld for the selected employee (e.g. Clergy), uncheck the box. 3. In the Tax Statement field (required), select W-2 or No Statement. Employees defined as No Statement will not be included when you print your W-2 s. 4. Under State Tax Withholding, select the State of residence and Marital Status, and enter the data in the Allowances, Dependents, or Extra withholding fields as needed. Applicable State Select the employee s state of residence from the lookup. State Tax deductions will be calculated based on the selected state s tax table. Marital Status Select the marital status for the State tax calculations as appropriate for the employee. Options include: Single, Head of Household, Married Jointly/Spouse Employed, Married Jointly/Spouse Unemployed, Married Separately/Spouse Employed, Married Separately/Spouse Unemployed. Withhold State Tax This box is checked by default. If U.S. State Tax should not be withheld for the selected employee, uncheck the box. When unchecked, the data fields that define State Tax withholding will be hidden. If your state does not differentiate between an employed spouse, the system will simply assume Married-Jointly or Married- Separately based on the selection made. Allowances Enter the number of exemptions to be considered in each of the State calculations ConnectNow Church Accounting: Payroll User Guide

36 36 as appropriate for the employee based on the employee s W-4 form. Dependents Enter the number of dependents to be considered in the State Tax calculations as appropriate for the employee. Not all States use the concept of Dependants; use only if applicable for your State. Override Enter the dollar amount (as a positive number, not a negative number) that will be deducted per paycheck instead of the standard State Tax calculations. This will replace what the system would calculate for State Taxes and use the amount entered. Include the 2 decimal places required by the system. If the dollar amount entered is $0.00, no taxes will be withheld. Extra If the employee wishes to have additional tax withheld, enter the amount per paycheck in the field for State Extra withholding (as a positive number, not a negative number). Include the 2 decimal places required by the system. If an Override amount has been entered for State Tax Withholding, the Payroll system will ignore any amount in the Extra field. Subject to State Unemployment This field is checked by default to indicate that the employee is to be included on the State Unemployment report. No taxes are withheld from the employee if this box is checked. 5. Under Federal Tax Withholding, select the Marital Status and enter data in the Allowances, Override, and Extra withholding fields as needed. Withhold Federal Tax When unchecked, the data fields that define federal tax withholding will be hidden. Marital Status Select the marital status for the Federal tax calculations as appropriate for the employee. Options include: Single, Married, Married but use Single Tables. Head of House tables are identical to Single tables in the Federal Tax Tables. If you have an employee who has defined themselves as Head of House on their W-4, select the Marital Status of Single. Allowances Enter the number of exemptions to be considered in each of the Federal calculations as appropriate for the employee based on the employee s W-4 form. Override Enter the dollar amount (as a positive number, not a negative number) that will be deducted per paycheck instead of the standard Federal Tax calculations. This will replace what the system would calculate for Federal Taxes and use the amount entered. Include the 2 decimal places required by the system. If the dollar amount entered is $0.00, no taxes will be withheld. NOTE: If you have Clergy who want their wages to be reported as Federal Taxable Wages on the W-2, but do not want taxes withheld, check the box at Withhold Federal Tax and enter a $0.00 in the Override field. Extra If the employee wishes to have additional tax withheld, enter the amount per paycheck in the field for Federal Extra withholding (as a positive number, not a negative number). Include the 2 decimal places required by the system. If an Override amount has been entered for Federal Tax Withholding, the Payroll system will ignore any amount in the Extra field.

37 37 6. If Local Tax Withholding applies, check the Withhold Local Tax box. Withhold Local Tax This field is unchecked by default, and the data fields that define local tax withholding are hidden. If local tax withholding applies to the employee, check the box to display the data fields that define local tax withholding (See Local Tax Setup on page 79). Applicable Local Select the applicable local tax from the lookup. Marital Status Select the marital status for the Local tax calculations as appropriate for the employee. Options include: Single, Head of Household, Married Jointly/Spouse Employed, Married Jointly/Spouse Unemployed, Married Separately/Spouse Employed, Married Separately/Spouse Unemployed. If your locality does not differentiate between an employed spouse, the system will simply assume Married-Jointly or Married-Separately based on the selection made. Allowances Enter the number of exemptions to be considered in each of the Local calculations as appropriate for the employee based on the employee s W-4 form. Override Enter the dollar amount (as a positive number, not a negative number) that will be deducted per paycheck instead of the standard Local Tax calculations. This will replace what the system would calculate for Local Taxes and use the amount entered. Include the 2 decimal places required by the system. If the dollar amount entered is $0.00, no taxes will be withheld. Extra If the employee wishes to have additional tax withheld, enter the amount per paycheck in the field for Local Extra withholding (as a positive number, not a negative number). Include the 2 decimal places required by the system. If an Override amount has been entered for Local Tax Withholding, the Payroll system will ignore any amount in the Extra field. 7. Click Submit to save the Tax Data entered. ConnectNow Church Accounting: Payroll User Guide

38 38 Pay Data Tab Click the Pay Data tab and define the employee s Pay Group, Pay Items, Hourly Rate or Salary, and Account. 1. Under Pay Group, select the appropriate item from the lookup table. The Pay Group options listed have been added to your Payroll system using the Set Up Pay Groups procedure on page 17 (e.g., options may include Monthly, Semi-Monthly, Special). 2. Using the option buttons on the right, select Hourly or Salary, and Full-Time or Part-Time. These options are used by the Employee Pay Status Report. 3. Select the appropriate Pay Description from the lookup item(s) for which the employee should be paid. Options in the Pay Description lookup have been added to your Payroll system using the Enter Pay Items procedure on page Specify either the Hours/Units and Rate or enter a Pay Period Amount. Hourly Employees If the employee is paid for the same number of hours each pay period, type the number of hours in the Hours/Units field and the system will auto-populate the employee s timecard each pay cycle. If the number of hours worked is variable, leave the Hours/Units field blank. The number of hours entered here can be overridden during payroll processing if needed. See the step Step #3 Edit Timecard beginning on page 53 for more information. If the employee is being paid by the hour, enter the hourly rate in the Rate field. If you have entered data into the Rate field the system will calculate the Pay Period Amount using the following equation: Pay Period Amount = Hours/Units * Rate Salaried Employees If the employee is paid a salaried amount instead of an hourly rate, enter that amount into either the Pay Period Amount or Annual Amount field. The system will automatically calculate the Annual Amount if only the Pay Period Amount is entered. It will also calculate the Pay Period Amount if only the Annual Amount is entered. Annual Amount = Pay Period Amount * number of pay periods per year (defined by the Pay Group selection) Pay Period Amount = Annual Amount / number of pay periods per year (defined by the Pay Group selection)

39 39 5. Select an Account for the pay item. If you associated an Expense Account when entering the pay items, this field will autopopulate based on your setup (see page 8), but you can change the distribution by selecting another option from the lookup table if needed. If you did not associate an Expense Account to the pay items, enter the correct gross pay Expense Account in the Account field. You may enter multiple pay item types and associated different gross pay Expense Accounts for each pay item type if needed. If you would like to distribute the employee s pay over multiple accounts, see the section below for more information. 6. Repeat steps 2-4 for any additional pay items. here (e.g., 75% of is salary should be booked to the church account, while 25% of his salary should be booked to the school account). This helps ensure that salary expenses are distributed appropriately during each pay cycle. The Account field will remain empty on the display, but the Use Distribution checkbox will remain checked. Delete a Pay Data Line Item Click the X to remove any pay data line item from an employee s record. Add More Pay Data Lines to Form To add more line items to an employee s pay data record, click the More Lines link, located in the lower-left of your screen. 7. Click Submit to save the Pay Data. Multi-Account Distribution for Pay Data If you have pay items that need to be distributed among two or more accounts, select the Pay Description and enter the Hours/Units, Rate, Pay Period Amount or Annual Amount. Then click the Use Distribution checkbox and click the Distribution button. Enter the gross pay Expense Accounts and Percentages and the system will automatically distribute the employee s pay to those gross pay Expense Accounts each time payroll is processed. For example, if you have a custodian who works for both the school and the church, and he/she is paid out of different accounts, you could add two Custodian Salary pay data line items and enter the typical distribution ConnectNow Church Accounting: Payroll User Guide

40 40 Deductions/Benefits Tab Click the Ded/Ben tab to associate elective deductions and/or benefits (codes 11 or higher) with the employee. Deductions and benefits that you have added as part of your Payroll Setup will be available from the lookup table. Add each line item and amount as appropriate for the employee, and click Submit to save. 1. Under Deduction/Benefit Description, choose the appropriate item(s) from the lookup table. Options in this table have been added to your Payroll system using the Manage Deductions and Benefits setup procedure on page Deductions and benefits can be entered by amount or percentage. Enter either the Amount or Percentage. If the deduction or benefit is a fixed dollar amount, enter the amount. 3. If the deduction or benefit is calculated as a percentage of the employee s paycheck, enter the percent. 4. Enter the Limit. Type the maximum amount that can be deducted from the employee's paycheck or added to the benefit total during the calendar year. If there is no limit for this Deduction/Benefit, the system will auto-populate upon clicking Submit. Current Year, Prior Year The calendar amounts are automatically updated by the Payroll system. These readonly fields show accumulated deduction and benefit totals for the calendar year indicated. Delete a Deduction/Benefit Line Item Click the X to remove any line item from an employee s record. Add a Deduction/Benefit Line Item To add more line items to an employee s pay data record, click the More Lines link, located in the lower-left of your screen. NOTE: Deductions are listed on the employee s paycheck stub, but Benefits are not listed; as no amounts are withheld from the employee s check for a Benefit.

41 41 Add a Health Care Benefit To save processing time, you can automate the benefit calculation within the application by setting up a healthcare deduction and then creating a new benefit code for the employer s portion of the health care cost in Payroll. Alternatively, you can manually edit an employee s W-2 to add health care benefit information. These two methods are documented in the following sections. Automating a Health Care Benefit Calculation This process has three main steps. Follow the steps in the order given. Step 1: Add the Health Care Benefit to Your System 1. Select the Payroll tab. 2. Click Setup. 3. Select Deduction/Benefit List. 4. Select Add a New Deduction/Benefit From Template. 5. For Employer Health Care Benefit, click Select. The application adds the employer health care benefit to the list of benefits and deductions available in system. You can now add it to an employee s record and specify the amount of the deduction. You will perform this task in Step 2. Step 2: Add the Health Care Benefit to an Employee s Record 1. Select the Payroll tab. 2. Click Employees. 3. To the left of the desired employee s name, click Go. The selected employee s record is displayed. The name of the employee appears at the top. 4. Under the employee s name, select the Ded/Ben tab. This list shows all of the deductions and benefits currently set up in your system. ConnectNow Church Accounting: Payroll User Guide

42 42 6. Add the health care benefit deduction to the record by clicking the down arrow and then selecting Employer Health Care Benefit from the list. Type the amount of the benefit in the Amount field or the percent of the benefit in the Percent field. Note: If necessary, click More Lines to add a new line. 7. Click Submit to save. The deduction is now added to the employee s record. When you run your next payroll, the amount is shown on the employee s paycheck. Manually Editing a W-2 1. Select the Payroll tab. 2. Click Forms. 3. Under W-2 Setup and Edit, select Edit Employee s W-2 Information. The employee s W-2 form is displayed. 4. In Box 12, type DD. Then, to the right of the box, type the dollar amount of the benefit. For example: Step 3: Set up the W-2 Form In this final step, you will set up the W-2 to track and report the employee s health care costs. 1. Select the Payroll tab. 2. Click Forms. 5. Click Submit to save. 3. Select W-2 Setup. 4. For Employer Health Care Benefit, select Box 12 for W-2 Box, and then type DD for W-2 Code. 5. Click Submit to save.

43 43 Accums Tab The Payroll system updates data shown in the Accums (i.e., Accumulations) screen automatically when payroll is posted. This is an informational window only; data may not be entered or edited on this display. Accumulations and Gross Accumulations are tracked for the current month to date, by quarter, and by fiscal and calendar years. Use the Month and Year lookups to select any period. If you select a different Accumulations period, click the ReCalculate button to refresh your screen based and display records based on the new period. Accumulations are displayed for the following items: Gross Pay Social Security Withheld Medicare Withheld Federal Tax Withheld State Tax Withheld Local Tax Withheld Other Deductions Allowance Net Pay Gross Accumulations, or the total taxable income, are displayed for the following items: Social Security Gross Medicare Gross Federal Tax Gross State Tax Gross Local Tax Gross ConnectNow Church Accounting: Payroll User Guide

44 44 Personal Tab Click the Personal tab to enter the number of paid time off, such as Vacation, Sick, Personal, or Family, days the employee Earns Per Payroll or for a lump sum time for year. The system accumulates earned time, records used time, and calculates available time. It also lets you write and store notes for each line item. See pages 58 and 69 for instructions on logging earned or used time. Personal time can either be recorded in hours or days for time earned and used. You can choose which you would like to use, just keep consistent between your employees. You can record Personal Time in one of two concepts: If Employee earns Personal Time each Pay Period If the Employee earns a fixed number of hours or days each time a Payroll is processed, click the Earn Per Payroll box. The Amount Per Payroll field will be visible once the box is checked. The Amount Per Payroll field is visible only if the Earn Per Payroll box is checked. Enter the number of hours or days of personal time to be earned per pay cycle. The Earned, Used and Available times will remain zero until a Payroll is processed. Click Submit to save. Employee earns Personal time each Pay Period Employee receives Lump Sum Personal Time at the beginning of the year

45 45 If Employee earns Personal Time as a Lump Sum amount at the beginning of the year Do not check the Earn per Payroll box. Instead, enter the Date, Activity, Amount and Notes in the data entry section, and click Submit. This will automatically update the Earned, Used and Available times. Limit Enter the maximum number of personal time hours or days that the employee can earn within a given calendar year. Earned, Used and Available The system calculates the values in these read-only fields automatically as hours or days are entered manually as earned or used personal time on this screen. Delete a Personal Time Line Item Click the X to remove any earned or used personal time line item from an employee s record. Add a Personal Time Line Item To record earned or used personal time, select the applicable Personal Time category. Enter the Date, choose either Earn or Used from the Activity lookup, enter the number of hours or days in the Amount field, and record a Note if desired. Click Submit to save. To add more line items to an employee s personal time record, click the More Lines link, located in the lower-left of your screen. See page 69 for details. ConnectNow Church Accounting: Payroll User Guide

46 46 Direct Deposit Tab Use the Direct Deposit tab to enter employee information for direct deposit of paychecks into a checking and/or savings account. Direct Deposit Participation The system defaults to None. If the employee wishes to set up direct deposit, select the ACH File option. If the employee would like their check deposited electronically, click Direct Deposit, click the ACH File button, and specify the Account Number, Routing Number, Account Type, Percent or Amount distribution, and Prenote Date. Click Submit to save. See page 78 for instructions on prenoting for direct deposit. Employees can choose to deposit fixed amounts or fixed percentages of their pay into one or more accounts. The system lets you set up unlimited direct deposit accounts, but we recommend you limit your employees to two or three direct deposit accounts to reduce administration for your staff establish the limit that works best for your church. You may find it helpful to request a voided check from each account that you will be adding to the system for direct deposit. You must prenote an employee at least 10 days prior to his or her first direct deposit and any time you make a change to the employee s account information. For more information, see Prenote Employees for Direct Deposit, page Choose to distribute to Accounts by either Percent or Amount. 2. Enter the employee s checking or savings Account Number. 3. Enter the employee s 9-digit Routing Number. 4. Select either Checking or Savings from the Account Type lookup. 5. Enter either the fixed dollar amount or percentage to be deposited electronically into the selected account. For Percent distribution, the total Percent value must equal For Amount distribution, the last bank account in the list will receive any balances that remain due to rounding percentages or a discrepancy between the paycheck amount and the distribution amount set in the employee s record.

47 47 For example, you may have an hourly employee who wants their pay distributed $100 to Savings and the remaining to checking. Set the Distribute to Accounts to Amount and enter the Savings account information in Line 1 with the Amount, then enter the Checking account in Line 2 and leave the amount The system will send $100 to the employee s Savings account and the remainder to their Checking account. 6. Select the Date for the prenote. The prenote date must be at least 10 days prior to their first direct deposit and any time you make a change to the employee s account information. If using the Prenote File Upload, this date will automatically populate. Add a Direct Deposit Line Item To set up an employee for direct deposit, select the ACH File option, enter the banking information, the percent or amount, and prenote date. Click Submit to save. Add More Lines To add more line items to an employee s direct deposit record, click the More Lines link, located in the lower-left of your screen. Delete a Direct Deposit Line Item Click the X to remove any direct deposit line item from an employee s record. ConnectNow Church Accounting: Payroll User Guide

48 48 Paychecks Tab The Paychecks screen displays each payroll check issued to the selected employee with a total paid for the selected year. This is an information window only and cannot be added or edited. Display Year Select the current year or any prior years in your system and click the Display Year button to change the records currently displayed. Number Check number. Amount Net amount of the check. Voided If a payroll check has been voided, the void date will display here. Cleared The check clearing date will display here. Date Date of the payroll in which the check was issued (i.e., date entered when you created the New Payroll).

49 PROCESS PAYROLL 49

50 50 Process Payroll Payroll Overview Before processing your first payroll, you must complete the initial system setup and prenote any direct deposit employees using the instructions beginning on page 78. If your initial system setup is complete, the ConnectNow Payroll system is ready to guide you step-by-step through the payroll process. You will create and process one payroll session per pay date. An open payroll session must be processed and closed before you can create and process a new payroll session. This section contains procedures for the following items: 1. Set Up Payroll 2. Select Employees 3. Edit Timecards 4. Calculate 5. Review 6. Edit Paychecks 7. Print Checks 8. Prepare and Send ACH File 9. Close Payroll Payroll Progress Indicator As you complete the steps of the payroll process, the system will highlight your completed steps in yellow, the currently selected step in green and uncompleted steps in white. For example, in the following screen, steps 1-3 have been completed, and the user is in the process of selecting employees in step 4. Editing an Existing Payroll If you are modifying an existing payroll, you do not need to click through steps that you have already completed you may click on the step you need. 1. Click the Payroll Process icon. 2. Select your existing payroll from the list. 3. Click on the step you wish to complete, make your changes, and click Submit to save.

51 PROCESS PAYROLL 51 Step #1 Setup Payroll Use this procedure to create a new payroll session or select an existing payroll to process. Requirement for Closed Payroll The system requires that you close a prior open payroll session before creating a new payroll. For closing procedures, please see page Click the Payroll Process icon. 2. If you are beginning a new payroll, click Create a New Payroll. If you are editing an existing payroll, select it from the list. 3. The system will automatically assign a payroll Number. Select the Bank Account from which payroll will be withdrawn. 4. Enter a Check Date. 5. Enter a Description for your payroll if desired. 6. Click Submit. The system will prompt you to complete step 2, Select Employees (see the following page for instructions). ConnectNow Church Accounting: Payroll User Guide

52 52 Step #2 Select Employees In step 2, you will select the employees who should be included in this payroll processing. Employees may be selected from a complete employee list or by Pay Group. 1. Select All Groups or choose a particular Pay Group active employee names will display based on your Pay Group selection. 2. Check the boxes to select the names of employees you wish to include in this payroll processing. Use the system s Select All and Deselect All options, along with individual click selections, to choose employees quickly from the list. 3. Click the Submit button to save your selections and proceed to step 3, Edit Timecards (see the following page for instructions). If you need to add more employees to an open payroll, begin at step 2) Select Employees. Choose the names of the individuals needing payroll checks and proceed to steps 3 7 as usual. See Recalculate Select Employees, page 55, for more information.

53 PROCESS PAYROLL Step #3 Edit Timecards The information you ve entered on the Employee Entry displays will automatically transfer into the Timecard entry. In step 3, you will edit the timecard for each hourly employee selected in step 2 and verify the amount each employee is to be paid. You may add, remove or edit Pay Items on the employee timecards as needed. 1. Click on the employee name to view each timecard. The system will display the selected employee s name and pay information as it has been entered into the Pay Data tab on the Employee Information screen. 4. The Check Sequence (i.e., abbreviated Chk Seq on your screen) denotes whether the items will print on 1 check or separate checks. Edit as desired. Permanent changes to the Default Check Sequence of a Pay Item must be made in the Pay Item Information screen see page 19 for more information. 5. Click the Submit button to save the employee s timecard. 6. Select the next employee name and repeat steps 2 5 as appropriate. 7. When finished editing timecards, proceed to step 4, Calculate, on page For employees paid an hourly or unit rate, enter the number of hours or units for the pay period. For salaried employees, the Pay Period Amount can be edited if needed just click and type. Pay amounts will automatically recalculate. Permanent changes to employee Pay Items need to be made to the Pay Data tab in the employee record. If you do not have Hourly Employees, and only have Salaried Employees, you can skip this step. 3. To add a Pay Item, click into the Pay Description lookup, select an item, enter the Hours/Units and Rate or the Pay Period Amount, and select an Account. ConnectNow Church Accounting: Payroll User Guide

54 54 Reset a Timecard The Reset button restores the selected employee s timecard to its default settings, abandoning any changes that you have made to the employee s Time Card settings. Delete Pay Items from a Timecard To remove an individual Pay Item from a timecard, click the red X button to the left of the Pay Description. Delete a Timecard The Delete button removes an employee s timecard record from your current payroll. The employee s Pay Data remains in the Payroll system and can be selected again for the current or for a future payroll cycle.

55 PROCESS PAYROLL Step #4 Calculate During the Calculate process, the system does the following: Checks to ensure that each deduction and benefit within the gross pay accounts used in this payroll have an Account Distribution established. You will be notified and required to correct any blank distributions before you can process your current payroll. Calculates payroll earnings, taxes, benefits and deductions for selected employees. Updates payroll reports and accumulated pay information for selected employees in the Employee Information screen. Click the Calculate Payroll button to run the system calculation, or click the Calculation Options button to select the specific deductions and benefits to include in the calculation for bonus checks (see the Calculation Options for Bonus Checks section on next page). Then, return and click the Calculate Payroll button. If the system calculates 100% with no errors, click 5) Review to examine your payroll data (see Review, page 57, for instructions). Fixing Errors If the system detects errors, you will receive a message identifying the specific issue and a remedy for the issue. Account Distribution errors are easily corrected under Setup > Account Distribution. See Enter Account Distributions on page 24 for more information. Once any errors are fixed, repeat the Calculate Payroll step. Review, edit and complete your payroll process as usual. Recalculate Select Employees The system will recalculate payroll for selected employees with unprinted paychecks and checks without assigned check numbers. Deselecting an employee, if no check number has been assigned, results in the employee not being paid in the current payroll. Click 2) Select Employees, check the name of the employee, click 3) Edit Timecard and make the necessary change, and click 4) Calculate. Review, edit and print as usual. 55 ConnectNow Church Accounting: Payroll User Guide

56 56 Calculation Options for Bonus Checks The Calculation Options page allows you to select specific deductions and benefits to include in the calculation for bonus checks. For example, for bonus checks you may want to only withhold and calculate Social Security and Medicare but no other deductions or benefits. Removing a deduction will not withhold the deduction from the current calculation and removing a benefit will not calculate the benefit for the current calculation. Click the check marks in the Include column to remove the deductions and benefits from the current calculation. Click the Submit button to save your changes and return to the Calculate tab.

57 PROCESS PAYROLL Step #5 Review 57 After the Calculate process is 100% complete and error-free, click 5) Review to display a preview of that data that will print on your employee paychecks. Ensure paychecks are correct before you print checks and submit ACH data for direct deposit. Check data will display in alphabetical order by employee last name. Scroll down as needed to review each check. If changes are needed to deductions or benefits, proceed to step 6 Edit Paychecks (see page 58 for instructions). If all checks are correct, you may print checks and create your direct deposit ACH File using the buttons at the bottom of the screen. For instructions on printing checks, see page 60; for instructions on creating an ACH File for direct deposit, see page 63. If all of the checks on Step #5 Review Checks are correct and you do not need to make any changes to the checks, you can skip Step #6 Edit Paychecks. ConnectNow Church Accounting: Payroll User Guide

58 58 Step #6 Edit Paychecks Use the Check Information screen to add, edit, or delete a benefit or deduction line item to a paycheck that has not been printed, or to void a check that you have already printed. If you add, change or delete a pre-tax deduction or benefit, you must manually recalculate the taxes and update this display. Edit a Benefit or Deduction Item Employee names are listed in the Employees box on the left side of your screen. You may edit checks one at a time by completing the following steps. Calculate Overrides Edit Paychecks The Calculate process overwrites any changes made on the Check Information screen. Edit Wages Edits to wages are not permitted from the Edit Paychecks screen if you discover that the employee s wage is incorrect, click 2) Select Employees, check the name of the employee, click 3) Edit Timecard and make the necessary change, and click 4) Calculate. 1. Select the employee name from the Employees paycheck list to display the Check Information. 2. To edit a deduction or benefit amount, click into the Pay Period Amount field and edit. 3. To remove a deduction or benefit line item, click the red X to the left of the item s description. 4. Click the Submit button to recalculate the paycheck Amount. 5. Proceed to step 7, Print Checks, on page 60.

59 PROCESS PAYROLL Delete a Paycheck 59 Paychecks that have not been printed may be deleted. The Check Information will now display the 1. Select the payroll containing the check. 2. Click 6) Edit Paychecks. 3. Select the employee name from the Employees paycheck list to display the Check Information. 4. Click the Delete button, located at the bottom of the screen. 5. If you need to issue a new paycheck, recalculate the payroll for the selected employee. See Calculate Selected Employees on page 55 for instructions. Void a Paycheck check marked as Void. 6. The system creates an automatic journal entry in the Ledger and Payables system that reverses the paycheck. 7. If you need to issue a new paycheck, recalculate the payroll for the selected employee. See Calculate Selected Employees on page 55 for instructions. You can void a check or ACH transmission directly from the Check Information screen using the following steps. 1. Select the payroll containing the check. 2. Click 6) Edit Paychecks. 3. Select the employee name from the Employees paycheck list to display the Check Information. 4. Click the Void Check button, located at the bottom of the screen. 5. Enter the Void Date and click the Void button. ConnectNow Church Accounting: Payroll User Guide

60 60 Step #7 Print Checks When your checks are ready to be printed onto check forms, use the following steps to process paychecks. 1. If you are currently on the step 5) Review screen, click the Print Checks button; otherwise, click the step 7) Print Checks link on your Payroll screen. 2. The Check Selection screen will display your Beginning Check Number and only those employees who will receive a check. Employees who will are paid by Direct Deposit will be listed in Step #8. Click the Submit button. 3. On the Print Checks screen, select the Bank Account from which your payroll will be withdrawn and click the Print Selected button. NOTE: If you need to change a check number, you can click into the Number field on this display and edit the check numbers listed.

61 PROCESS PAYROLL An Adobe Reader pop up window will display with your check information. Click the Print icon <Ctrl + P> on the Adobe Reader display to send the check information to your printer. Close the Adobe Reader window. 5. Go to the printer and ensure all of your checks printed correctly. a. If all checks printed correctly, choose Yes, I clicked the Print icon and Check(s) printed correctly and click Submit. Print Checks window allowing you to change check numbers, if needed, and reprint the checks. c. If the printer did not print any checks (wrong printer selected, forgot to put checks in printer, printer problems, etc.), choose the option I didn t print any checks and click Submit. The system will take you back to the Print Checks window allowing you to change check numbers, if needed, and reprint the checks. b. If some of the checks printed correctly and some did not (ran out of ink, paper jam, etc.) choose the option Some checks did not print correctly. First incorrect printed on check: and select the check number and click Submit. NOTE: You may receive a notice that pop-ups have been blocked for this site. You must always allow pop ups for this site to print checks. In Internet Explorer, right-click the yellow bar for more options and choose the Always Allow Pop-ups from This Site. In Firefox, click the Options button on the right and choose Allow pop-ups for diocesename.connectnowaccounting.com. The system will take you back to the ConnectNow Church Accounting: Payroll User Guide

62 62 Manage Check Numbers Check numbers are very important in tracking and issuing paychecks, and the ConnectNow Church Accounting system tracks those check numbers by bank account. When processing payroll, the system automatically assigns the next sequential check number to the first paycheck in a given payroll cycle. The Beginning Check Number field can be edited if necessary in step 7) Print Checks (e.g., if you need to record a manually written paycheck). For security purposes, once a check number is issued, it cannot be used again; and payroll checks cannot be reprinted. The Close Payroll process cannot be run until check numbers have been assigned to all paychecks in the current payroll.

63 PROCESS PAYROLL Step #8 ACH File Before you can process direct deposit payments using an ACH File, the following items must be completed: ACH Info entered into the Payroll system as part of the Enter Employer Information setup (see page 15) Employee direct deposit account information has been entered into the Payroll system and prenoted at least 10 days prior to direct deposit Payroll calculated and reviewed for accuracy Once these items are complete, prepare an ACH File for direct deposit using the following steps. 1. Click 8) ACH File. 2. Select the names of employees to receive direct deposits of their paychecks and click Submit. 3. Your Bank Account selection and Current Balance will display at the top of the ACH File screen. Check the Include debit in file for the bank account box to include extra line in the ACH file that includes the church s bank account number and total debit amount. Consult your bank to see if they require this field. 4. Click the Print Receipts button to print one file containing individual paycheck receipts for each employee (see ACH Receipts on page 65 for an example). 5. Click the Create File button to open a print preview of your direct deposit data file. a. To print a report of your ACH file data, click the Printer icon. You may also print a report of your file data from Notepad see step 6a below. 63 ConnectNow Church Accounting: Payroll User Guide

64 64 6. Save your file as a.txt file by clicking the Save button. The open and save options may vary depending on the browser. Internet Explorer will prompt you to open or save the file to a location that you select. Firefox will save the file to your desktop. 7. Your ACH direct deposit data file is now ready to be uploaded to your bank s direct deposit application.

65 PROCESS PAYROLL Print ACH Receipts 65 The Payroll system provides ACH direct deposit remittance advices that you can print on plain 8 ½ x 11 copy paper rather than on expensive check forms. Payroll s ACH Receipts are formatted to include current period and accumulated wages, benefits, deductions, and personal time. Your return address and the employee s mailing address are positioned on the report to fit into a window envelope. ConnectNow Church Accounting: Payroll User Guide

66 66 Step #9 Close Payroll Use the Close Payroll process to post all payroll data to the Ledger and Payables and Payroll systems. Once posting is complete, all reports and accumulations will reflect the latest posted amounts, and you will be permitted to Create a New Payroll session with a different pay date. Paychecks cannot be edited once check numbers are assigned and the payroll is closed, and you cannot begin a new payroll cycle until the prior payroll has been closed. Payroll can be closed at any time once checks have been printed and your ACH Direct Deposit file has been created. For your convenience, the main Payroll Dashboard will display Next Step: Close Payroll to inform you that payroll is ready to be closed. Complete the following steps to close payroll. 1. Click on Close Payroll links are available from your dashboard and from step 9 of the payroll process. 2. Click the Submit button. 3. Click OK on the popup. 4. The system will close your selected Payroll and return you to the main Payroll Process screen. Your payroll will now show as Closed.

67 PROCESS PAYROLL 67 {Intentionally Blank} ConnectNow Church Accounting: Payroll User Guide

68 OPTIONAL SETUP 68

69 69 Start-Up Employee Totals If your church did not opt for a comprehensive conversion, and are starting to use ConnectNow Payroll in a month other than January, you can enter the Start-Up Employee Totals to record payrolls for the calendar year paid from another source. The data you enter in Start-Up Employee Totals will be added to the payrolls you process in ConnectNow Payroll and will correct Calendar Year To Date Totals on the employee s paycheck stub as well as report the entire year payments on the 941 and W-2. You may choose to process W-2 s mid-year in your previous application to calculate the amounts to enter in Start-Up Employee Totals. 1. Click Setup and choose Start-Up Employee Totals under Optional Setup. 2. Enter the appropriate date in Calendar year totals for all employees as of: field. 3. Select each Employee s name from the Employee s list on the left. ConnectNow Church Accounting: Payroll User Guide

70 70 Enter Start-Up Employee Gross Wages 1. Enter the Start-Up Gross Wages for the employee. a. Taxable Enter the Total Gross Taxable Wages for the Employee for each Pay Item Type defined on the Employee s Pay Data tab. Pay Items indicating Allowances are not entered in this field. b. Non-Taxable Enter the Non- Taxable Gross Wages for each Allowance, Reimbursement or any other non-taxable Pay Item. These items may report in Box 14 of the W-2. c. Soc Sec Enter the Gross Social Security Wages for each Taxable Pay Item. This number reports in Box 3 of the W-2. d. Medicare Enter the Gross Medicare Wages for each Taxable Pay Item.. This number reports in Box 5 of the W-2. e. Federal Enter the Gross Federal Wages for each Taxable Pay Item. This number reports in Box 1 of the W-2. f. State Enter the Gross State Wages for each Taxable Pay Item. This number reports in Box 16 of the W-2 If you have any pre-tax deductions or benefits the Social Security, Medicare, Federal and State Gross Wages numbers may be different from the Taxable Gross Wages.

71 71 Enter Start-Up Deductions/Benefits 1. Enter the Start-Up Deductions and Benefits for each employee. a) Benefit Social Security Employer Enter the total amount of Social Security Taxes the church paid for the employee. b) Deduction Social Security Withheld Enter the total amount of Social Security Taxes withheld from the employee s check. Box 4 on the W-2. h) User Defined Deductions/Benefits If you have set up additional Deductions or Benefits (see page 21) and added them to the employee (see page 40) they will also be listed on the Start-Up Deduction/Benefit display. Enter the totals for each additional Deduction/Benefit for the employee. 2. Click Submit to save your changes. c) Benefit Medicare Employer - Enter the total amount of Medicare Taxes the church paid for the employee. d) Deduction Medicare Withheld - Enter the total amount of Medicare Taxes withheld from the employee s check. Box 6 on the W-2. e) Deduction Federal - Enter the total amount of Federal Taxes withheld from the employee s check. Box 2 on the W-2. f) Deduction State - Enter the total amount of State Taxes withheld from the employee s check. Box 17 on the W-2. g) Deduction Local - Enter the total amount of Local Taxes withheld from the employee s check. Box 19 on the W-2. ConnectNow Church Accounting: Payroll User Guide

72 72 Job Category You can create job categories such as Administration, Clergy, and Maintenance and associate each employee with those job categories to allow for easy reporting on Accumulations and Taxable Pay & Withheld. 4. Click Submit. Job Categories that you enter into your system will be available from the Quick Find lookup and from any Job Category lookup available on your Employee entry display. 1. Click the Setup button. 2. Click Job Category. To delete a Job Category, locate it in the Quick Find list, click Find Item, and click the Delete button. 3. Type a unique Description for the job category.

73 73 Personal Time The Payroll system tracks user defined categories of Personal Time for each employee, such as: Family Personal Sick Vacation You can enter time earned and time used within each category defined, and these totals will be reflected on your employees pay item details. Setup Personal Time You can customize the concepts for Personal Time 1. Click the Setup button. 2. Click Personal Time. 3. Type a unique Description for the personal time. To delete a Personal Time code, locate it in the Quick Find list, click Find Item, and click the Delete button. Record Personal Time Click the Personal tab to enter the number of paid time off, such as Vacation, Sick, Personal, or Family, days the employee Earns Per Payroll or for a lump sum time for year. The system accumulates earned time, records used time, and calculates available time. It also lets you write and store notes for each line item. Personal time can either be recorded in hours or days for time earned and used. You can choose which you would like to use, just keep consistent between your employees. You can record Personal Time in one of two concepts: Employee earns Personal time each Pay Period Employee receives Lump Sum Personal Time at the beginning of the year 4. Click Submit. Personal Time that you enter into your system will be available from the Quick Find lookup and on the Employee entry display. ConnectNow Church Accounting: Payroll User Guide

74 74 If Employee earns Personal Time each Pay Period If the Employee earns a fixed number of hours or days each time a Payroll is processed, click the Earn Per Payroll box. The Amount Per Payroll field will be visible once the box is checked. The Amount Per Payroll field is visible only if the Earn Per Payroll box is checked. Enter the number of hours or days of personal time to be earned per pay cycle. The Earned, Used and Available times will remain zero until a Payroll is processed. Click Submit to save.

75 75 If Employee earns Personal Time as a Lump Sum amount at the beginning of the year Do not check the Earn per Payroll box. Instead, enter the Date, Activity, Amount and Notes in the data entry section, and click Submit. This will automatically update the Earned, Used and Available times. Limit Enter the maximum number of personal time hours or days that the employee can earn within a given calendar year. Earned, Used and Available The system calculates the values in these read-only fields automatically as hours or days are entered manually as earned or used personal time on this screen. Delete a Personal Time Line Item Click the X to remove any earned or used personal time line item from an employee s record. Record Personal Time If using Earned Per Payroll, the system will automatically insert the Line Item for the Date and Amount Earned on the Employee s Personal Tab each Paycycle. To record additionally earned or used personal time, select the applicable Personal Time category. Enter the Date, choose either Earn or Used from the Activity lookup, enter the number of hours or days in the Amount field, and record a Note if desired. Click Submit to save. To add more line items to an employee s personal time record, click the More Lines link, located in the lower-left of your screen. See page 69 for details. ConnectNow Church Accounting: Payroll User Guide

76 76 End-of-Year Personal Time Processing Some churches will allow their Employee s Personal Time to carry forward each year and accumulate; while other churches wish to reset their Employee s Personal Time to a fixed number of hours. You may also choose to clear the activity that you entered on the Employee s Personal Tab. ConnectNow Payroll helps you process Personal Time at the end of the year for your employees. You can choose to: Clear out all activity and retain available time as new earned. Completely clear out all used and earned activity. Clear all activity and apply a fixed number of hours as available Retain all activity but adjust available time to a fixed number of hours as new available time. 3. Click the down arrow at Quick Find and choose the Personal Time code you d like to process, click Find Item. 4. Select the Processing Option that s most appropriate for your church (see page 77 for Processing Option Definitions). 5. Enter the Date Range of the Activity to Process. You can select on a date range, paygroups, and individual employees and run the process multiple times for differing paygroups or employees (e.g. if hourly personal time should be handled differently than salary personal time). 1. Click the Setup button. 2. Click Personal Time Make a selection on Paygroups if needed. 7. Make a selection on Employees if needed. 8. Click Submit to process.

77 77 Clear out all activity and retain available time as new earned Use this option if you want to clear out the activity that you entered on the Employee s Personal tab, recording earned and used by date, but keep the available time as new earned. You can choose to limit the maximum to a fixed number of hours. Completely clear all used and earned activity. Zero available. Use this option if you want to start from scratch year to year! This will clear out all earned and used activity and set the available time to zero. This option is generally used when the Earn Per Payroll option is checked on the Employee s Personal Tab. Clear out activity and apply a fixed number of hours as new hours available Use this option if you want to clear out the earned and used activity for each employee, and reset their available time to a fixed number of hours. This option is generally used when the Earn Per Payroll option is not checked on the Employee s Personal Tab. Retain all activity but adjust available time to a fixed number of hours as the new available time Use this option if you prefer to keep all of the earned and used activity on the Employee s Personal Tab, but reset their available time to a fixed number of hours. This option is generally used when the Earn Per Payroll option is not checked on the Employee s Personal Tab. Earn Per Payroll Option Available Time Earned and Used Activity ConnectNow Church Accounting: Payroll User Guide

78 78 PreNote Employees For Churches who will be uploading the ACH file for Direct Deposits to a banking organization, you must prenote an employee at least 10 days prior to her first direct deposit and any time you make a change to the employee s account information. 4. Select the Employees you wish to include in the PreNote File. 5. Click the Create File button. The PreNote file contains all of the information in a standard Direct Deposit ACH file except for the amount to pay. This file ensures that all of the Employer s and Employee s Bank Account and Routing Numbers have been entered properly. The bank will use this file to ping the Employee s bank account. If any information has been entered improperly, the bank will contact you. 1. Click the Setup button. 2. Click PreNote Employees. 3. Make a selection on Paygroups if needed. 6. Save your file as a.txt file by clicking the Save button. The open and save options may vary depending on the browser. Internet Explorer will prompt you to open or save the file to a location that you select. Firefox will save the file to your desktop. 7. Your ACH direct deposit prenote file is now ready to be uploaded to your bank s direct deposit application.

79 79 Local Tax Setup Employees who live in certain regions may have a concept of a Local Tax. You can create and set the Local Tax as needed 1. Click the Setup button. 6. Click Submit. 2. Click Local Tax Setup. 3. Type the Locality for the job category. Local Taxes that you enter into your system will be available on the Local Tax lookup on the Employee s Tax Data Tab. 4. Enter the Calendar Year Withheld Limit. Once the Employee reaches the Calendar Year Withheld Limit, the system will automatically suspend future withholdings for the calendar year. 5. Enter the Percentage of Gross Pay. ConnectNow Church Accounting: Payroll User Guide

80 80 END OF YEAR REPORTING

81 81 W-2/W-3 You can print W-2 s and W-3 s directly from ConnectNow Payroll for each of your employees. W-2 s and W-3 s can be printed either on W-2/W-3 preprinted forms or on IRS approved blank paper, both of which can be purchased at W-2 information is stored in the W-2/W- 3 Report window allowing for quick and easy reprinting of lost W-2 s for the year. You must complete each of the following steps to properly process W- 2 s each year. 1. Setup W-2 s (see page 82) 2. Reprocess W-2 s/edit Employee s W-2 Information/ (see page 86) 3. Print W-2 Review Report (see page 87) 4. Print W-2 s (see page 87) 5. Electronic Filing W-2 s (see page ) Employer ParishSOFT Responsibilities It is each employer's responsibility to determine which payments to employees are taxable and which deductions and benefits are assigned to the categories required on the W-2 statements. Each deduction and benefit you have should be reviewed for the tax consequences and proper reporting on the W-2 forms. The Payroll system prints W-2 and W-3 statements. It does not print any other statements you may be required to prepare. ParishSOFT support personnel are not licensed accountants, tax consultants, or law advisors. Please contact qualified parties for detailed or specialized tax or law information. ParishSOFT shall have no liability or responsibility to purchaser or any other person or entity with respect to any liability, loss, or damage caused or alleged to be caused directly or indirectly by this software, including but not limited to any interruption of service, loss of business or anticipatory profits, or consequential damages resulting from the use of this software. ParishSOFT is not liable for any IRS penalties for which you may be assessed. This document explains what data the Payroll program requires to print W-2 and W-3 statements and explains what steps you should take to prepare for the printing of W-2 and W-3 statements in your ConnectNow Payroll system. This Payroll User s Guide for W-2 and W-3 Tax Statement assumes you are using the ConnectNow Payroll System in the printing of W-2 and W-3 Statements using tax forms available at The information in this manual is based on current instructions in The Department of Treasury, Internal Revenue Service documents "Instructions for Forms W-2 and W-2P", which is updated each calendar year, for filling out the W-2 and W-3 Forms and is subject to change as tax laws and procedures change. ConnectNow Church Accounting: Payroll User Guide

82 82 W-2 Setup 6. Click Submit to save. Prior to printing W-2 s, you must first designate the deductions and benefits which should print in boxes on the W Click Forms and choose Setup W-2 under Optional Setup. 2. Select the appropriate box where you want the pre-tax deductions and/or benefits to appear from the W-2 Box from the lookup window. See pages 83 and 84 for more information. 3. Enter the appropriate code in the W-2 Code field. 4. Non-Taxable Pay Item types may report in Box 14 of the W-2. Check the box at Print in W-2 Box 14 for those Non- Taxable pay item types you want to report in Box 14 (e.g. Housing Allowance) 5. Enter the three digit code you want to print in Box 14 in W-2 Box 14 Code (e.g. HOU). See page 85for more information.

83 83 Box 10 Dependent Care If you have a benefit(s) for dependent care which falls under IRS 129, enter the code(s) on this window. Normally, only benefit codes are entered on this window. In the case where a Cafeteria Plan is being run as a deduction, dependent care deduction codes may be entered on this window so the system may print the calendar year amount in Box 10 on the W-2 for participating employees. Be sure the amount of dependent care over $5,000 is also included in Box 1, 3, and 5 of the W-2. Alternately, if only reporting a few employees, you may directly enter the amount to be reported in Box 10 on the Edit W-2 window after preparing the W- 2s (see Edit W-2 on page 86). Box 11 Non-Qualified Plans This window will allow you to enter benefit codes you used to accumulate amounts of non-qualified deferred compensation benefits. Please note that this procedure is intended for an Eligible 457(b) and fully employer vested Non-Qualified Deferred Compensation plans only. Should you have a plan that is not either of the above, please contact a qualified tax accountant for assistance for filing a proper W-2 report. Be sure the amount of the benefit is also included in Box 1 of the W-2. Alternately, if only reporting a few employees, you may directly enter the amount to be reported in Box 11 on the Edit W-2 window after preparing the W- 2s (See Edit W-2 on page 86). ConnectNow Church Accounting: Payroll User Guide

84 84 Box (b), Taxable Life Insurance, or other codes Report life insurance benefit costs for over $50,000 in coverage and deferred compensation deductions on this window. Use the follow codes for reporting amounts in Box 12. Code Description Additional Taxable benefit of group term-life insurance over $50,000. The Calendar Be sure the amount is added to the Taxable Wages in C Year amount for the code on the Ded/Ben Boxes 1, 3, and 5 (See Edit tab on the Employee window for the W-2 on page 86). employee must be the cost of the coverage over $50,000. D Non-taxable elective salary deferrals to a 401(k) or SIMPLE 401(k) retirement plan. Non-taxable elective salary deferrals to a E 403(b) retirement plan. This amount of deferred compensation is not included in Box 1. Non-taxable elective salary deferrals to a F 408(k)(6) SEP retirement plan. This amount of deferred compensation is not included in Box 1. Non-taxable elective salary deferrals and non-elective employer contributions to a G 457(b) retirement plan. This amount of deferred compensation is not included in Box 1. Non-taxable elective salary deferrals to a H 501(c)(18)(D) tax-exempt plan. This amount of deferred compensation is not R S T included in Box 1. Used to report employer contributions to a Medical Savings Account (MSA) benefit code. The effect of this kind of deduction varies from plan to plan. Depending on the specific plan you have, this same amount may need to be also included in boxes 1 and/or 3, and/or 5, and/or 16 on the W-2. Non-taxable salary deferral to a 408(p) SIMPLE retirement plan. This amount of deferred compensation is not included in Box 1. Employer paid adoption benefits. This amount is not included in Box 1 wages. You must use IRS Form 8839 to calculate Edit these amounts on the Edit W-2 window (See Edit W-2 on page 86). Like code R above, the reporting of this benefit as wages varies from plan to

85 85 AA BB CC DD the taxable and non-taxable portion of these adoption benefits. After-tax contributions to a Roth 401(k) retirement plan. After-tax contributions to a Roth 403(b) retirement plan. Report the employee s amount of HIRE exempt wages for Use the Edit W-2 window to enter the code and wage amount. Report the aggregate cost of the applicable employer-sponsored health insurance coverage (optional in 2010 and 2011, mandatory in 2012). plan. If needed, edit the wage amounts on the Edit W-2 window (see page 86). If only reporting a few employees, you may directly enter the codes and amounts to be reported in Box 12 on the Edit W-2 window after preparing the W-2s (See Edit W-2 on page 86). Box 14 Allowances Box 14 on the W-2 is for your own use to report information to employees. The Social Security Administration and the IRS ignore this box. The calendar year amounts of the codes, deductions or benefits, you enter on this window will be printed in Box 14 of the W-2 statement. A three-letter code may be printed to denote the printed amount. Also, if only reporting a few employees, you may directly enter the codes and amounts to be reported in Box 14 on the Edit W-2 window after preparing the W- 2s (See Edit W-2 on page 86). ConnectNow Church Accounting: Payroll User Guide

86 86 Reprocess/Edit Employee s W-2 Information 1. Click Forms and choose Edit Employee s W-2 Information under W-2 Setup and Edit. 2. Select the Calendar Year from the lookup and click Show Year. 3. To insert that year s information, click the Reprocess All button. This will gather the information entered in the system for that year and refresh the display. 4. If you need to manually adjust an Employee s W-2, select the Employee s name from the list on the left. 5. Click into any field to make manual adjustments to the W-2 if needed (e.g. adjust for Taxable Life Insurance over $50,000). You may not enter into fields grayed out; see Enter Employer Information on page 15 and Tax Data Tab on page 34 to adjust if needed. 6. Click Reprocess to save your changes. You must click the Reprocess All button to refresh the W-2 information before making any manual changes to the W-2. If you click the Reprocess All button after making manual changes, it will replace the W-2 back to its original data and you will lose your manually entered changes.

87 87 W-2 Boxes where is the information located in ConnectNow Payroll? Box Name Where in ConnectNow Payroll? A Employee s Social Security Employees > Tax Data Tab Number B Employer EIN Setup > Employer Info > Federal Tax ID C Employer Name & Address Setup > Employer Info D Control Number Assigned by the system E Employee Name Employees > General Tab F Employee s Address Employees > General Tab Suff. Employee s Suffix (Jr., Sr., Employees > General Tab etc.) 1 Wages, tips, other Employees > Accums Tab > Federal Tax Gross compensation in Calendar Year column 2 Federal Income Tax Employees > Accums Tab > Federal Tax Withheld in Calendar Year Column 3 Social Security Wages Employees > Accums Tab > Social Security Tax Gross in Calendar Year column 4 Social Security Withheld Employees > Accums Tab > Social Security Tax Withheld in Calendar Year column 5 Medicare Wages Employees > Accums Tab > Medicare Tax Gross in Calendar Year column 6 Medicare Withheld Employees > Accums Tab > Medicare Tax Withheld in Calendar Year column Social Security Tips Not available in ConnectNow Payroll; may be 7 edited on Edit Employee s W-2 Information display. Allocated Tips Not available in ConnectNow Payroll; may be 8 edited on Edit Employee s W-2 Information display. Advance EIC Payment Not available in ConnectNow Payroll; may be 9 edited on Edit Employee s W-2 Information display. 10 Dependent Care Setup > Setup W-2 s 11 Nonqualified Plans Setup > Setup W-2 s (b), Taxable Life Setup > Setup W-2 s Insurance, other Statutory Employee Not available in ConnectNow Payroll; may be edited on Edit Employee s W-2 Information display. 13 Retirement Plan If employee has a deduction or benefits that has a category of Retirement or Retire and Tax Deferred. ConnectNow Church Accounting: Payroll User Guide

88 88 Third Party Sick Not available in ConnectNow Payroll; may be edited on Edit Employee s W-2 Information display 14 Other Setup > Setup W-2 s 15 State Employees > Tax Data Tab > Applicable State 15 Employer s State ID Setup > Employer Info > State ID 16 State Wages, tips, etc. Employees > Accums Tab > State Tax Gross in Calendar Year column 17 State Income Tax Employees > Accums Tab > State Tax Withheld in Calendar Year column 18 Local Wages, tips, etc. Employees > Accums Tab > Local Tax Gross in Calendar Year column 19 Local Income Tax Employees > Accums Tab > Local Tax Withheld in Calendar Year column 20 Locality Name Employees > Tax Data Tab > Locality

89 89 Print W-2 Review Before printing the W-2 s, ParishSOFT recommends that you print the W-2 Review report to examine the information that will print on the W-2 s. 1. Click Forms > W-2 s/w Select the Calendar Year from the lookup. The system will default to the current calendar year. 3. Select Paygroups as needed. The default is to include all Paygroups. 4. Select Employees as needed. The default is to include all Employees. 5. Choose W-2 Review from the Form Name options. 6. Click Preview Report. Review this report for accuracy. If you find that you need to make changes to an Employee s W-2, see page 86. If the W- 2 Review report looks accurate, you can continue with printing your W-2 s. ConnectNow Church Accounting: Payroll User Guide

90 90 Print W-2 s/w-3 s Once you have Setup W-2 s, Reprocessed/Edit Employee s W-2 Information, and have examined the W-2 Review Report, you can now print the W-2 s. W-2 s can be printed on pre-printed or perforated blank forms. Forms are available at NOTE: If you must file more than 249 employee s W-2 s, you must file them electronically (see page 97). default is to include all Employees. 5. Choose the appropriate W-2/W-3 form from the Form Name options (see page 91 for W-2 Form Examples). 6. Click Preview Report. 7. Load your printer with the W-2 forms and print just the first W-2 page to your printer. If you need to make any form adjustments, you can do so on the W- 2/W-3 Report Selection Display. 1. Click Forms > W-2 s/w Select the Calendar Year from the lookup. The system will default to the current calendar year. 3. Select Paygroups as needed. The default is to include all Paygroups. 4. Select Employees as needed. The NOTE: Adjustments are made in 1/100 of inch increments. To move ¼ inch, enter 25, to move ½ inch, enter 50, to move 1 inch enter Once you have the W-2 forms lined up properly with your printer, print the remaining W-2 s to your printer. The IRS produces new W-2/W-3 forms each year and generally not available until the last few months of the calendar year. If you are attempting to print a W-2 mid-year in the current year and receive an error message, the forms may not be available from the IRS.

91 91 W-2/W-3 Examples W-2 Copy A, 2-Up Blank Paper (Employer s Social Security Administration Copy) ConnectNow Church Accounting: Payroll User Guide

92 92 W-2 Copy D, 2-Up Blank Paper (Employer s Copy)

93 93 W-2 Copy 1, 2-Up Blank Paper (Employer s State, City, Local Copy) ConnectNow Church Accounting: Payroll User Guide

94 94 W-2 Employee Copies B&C, 4-Up Blank Paper (Employee s Copy)

95 95 W-2 2-Up Pre-Printed (Printed on preprinted forms found at ConnectNow Church Accounting: Payroll User Guide

96 96 W-3 Blank Paper

97 97 W-3 Preprinted (Printed on preprinted forms found at ConnectNow Church Accounting: Payroll User Guide

98 98 W-2 Electronic Filing Once you have Setup W-2 s, Reprocessed/Edit Employee s W-2 Information, and have examined the W-2 Review Report, you can now choose to file your W-2 s Electronically (charges will apply). NOTE: If you must file more than 249 employee s W-2 s, you must file them electronically. Some States also require electronic filing, check with your State for their filing requirements. 1. Click Forms > W-2 Electronic Filing. 2. Select the Calendar Year from the lookup. The system will default to the current calendar year. NOTE: If you have already created an account, enter the Username and Password and skip to step Enter and confirm your address and password and click Step 2. NOTE: Passwords must be between 8 and 30 characters. 9. Enter the required information on the User Information window, including your Name, Company/Church Name, Address and Phone information. Click Step Select Paygroups as needed. The default is to include all Paygroups. 4. Select Employees as needed. The default is to include all Employees. 5. Click Transmit W-2 s; you will be redirected to the Nelco/ParishSOFT Electronic Filing page. 6. Click Filing Information at the top and review the information About your Data, Filing Instructions, and Pricing Information. Charges reflected in the W-2 Service box are per employee. 7. Click Dashboard. If this is your first year filing electronic W-2 s in ConnectNow Payroll, click the Create Account link and create an account for your church. 10. Confirm the User Information entered and click Yes, I want to start filling out forms.

99 In the Services box, select from the e- filing offerings, and note the options selected next to each employee s name: d. State Filing includes only E-filing to the State. The church would have to submit to the Federal Government on Paper and print and distribute the Employee s W-2 and print the Employer s copy for their records. e. Recipient Mailing includes only the employee s W-2 s printed and mailed to each employee. The church would have to submit to the Federal and State on Paper and print the Employer s copy for their records. a. Package 1 includes Federal and State E-filing and will print and mail each employee their W Select the Employees by clicking the checkbox next to the affected Employees. The church would only have to print the Employer s copy for their records from ConnectNow Payroll. b. Package 2 includes Federal E-filing and will print and mail each employee their W-2. The church would have to submit to the State on paper and print only the Employer s copy for their records from ConnectNow Payroll. c. Federal E-filing includes only E- filing to the Federal Government. 13. Click Next. 14. At the Checkout window, you can choose to print a Summary Report or Detail Report for your records. The church would have to submit to the State on Paper and print and distribute the Employee s W-2 and print the Employer s copy for their records. ConnectNow Church Accounting: Payroll User Guide

100 You can also choose to remove an Employee should you have selected an employee in error. 16. Review the total charges and click Next. 17. Enter the Credit Card information and click Next. 20. Click the View Status and Reports button to review the status of the filing. 21. Click the Print Forms button to print, view or save the Employer s copies and any additional State, City, or Local W- 2 s that need to be provided to your employees. 22. Click the Print Receipt button to print a receipt of the applicable W-2 filing charges for your records. 18. Review the Credit Card information provided and edit the cart if needed. Click the checkbox at the Affidavit and click Confirm and Submit. 23. Click the X in the upper right corner of the display to exit this window. 24. Return to Payroll > Forms > W-2 Electronic Filing and click the Check Status button periodically over the next day or two to verify that your electronic filing was accepted or if there were issues or problems you need to address. 19. You will receive an Order Confirmation with a Batch Number. Record this Batch Number for your records.

101 101 {Intentionally Blank} ConnectNow Church Accounting: Payroll User Guide

102 102 REPORTS

103 103 Reports The ConnectNow Church Accounting Payroll system offers a complete selection of standard reports. You can also memorize and save reports. To view your standard and memorized reports, click on the Payroll tab and click the Reports icon. Employee Blank Timecards Employee Directory Employee Record Tax Status Personal Time Employee Pay Status The system saves your Standard Report formatting and sort selections, so when you run those reports in the future, your preferences will already be selected for you. Reports are organized into the following categories. Click any category heading to view and select reports. Paycycle Current Earnings Payroll Summary Taxable Wages Ledger Distribution Pay Distribution Detailed Deductions Retirement Wages Paycheck Register Paycheck Stub Deduction Benefit Employee Detail End of Period Accumulations Taxable Pay and Withheld Deduction/Benefit Accumulations Retirement Accumulations ConnectNow Church Accounting: Payroll User Guide

104 104 Federal Federal Unemployment Federal Tax Remittance State and Local State Unemployment State Accumulations Local Accumulations

105 105 Report Options Date Selections To clear the selections, click the X in the upper right corner of the box. Standard report selections default to the current fiscal month and year. But you can choose to print reports in Payroll for any time frame needed. Review the Payroll Dashboard, or the current fiscal month located under Log Out in the upper right corner of the display for your current fiscal month and year. End of Period reports have the following date range selection availability. You can select from: Month to Date First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal Year to Date Calendar Year to Date Employee Selections In many reports, you can make a selection on specific Employees, choosing to print a report for a single, multiple or all Employees in the system. The default selection will be to include all Employees. Selected items will turn from white to blue. To select multiple items, hold down the Ctrl key on the keyboard and click the items you d like to select. To clear the selections, click the X in the upper right corner of the box. Some reports will report on a Period Ending concept. You can select any fiscal month and year you would like to report on. Paygroup Selections In most reports, you can make a selection on Paygroup, choosing to print a report for a single, multiple or all Paygroups in the system. The default selection will be to include all Paygroups. Selected items will turn from white to blue. To select multiple items, hold down the Ctrl key on the keyboard and click the items you d like to select. ConnectNow Church Accounting: Payroll User Guide

106 106 Tax Statement Type Options Two End of Period reports, Accumulations and Taxable Pay and Withheld, allow you to print the report for W-2 employees only, no statement employees only, or all employees. Click the down arrow at Tax Statement Type: to choose the report option. Report Format The Ledger Distribution report allows you to print the report either in Summary or Detail. If you choose to print the report in Summary, you will see only the totals based on the Group Sections you previously selected. If you choose to print the report in Detail, you will see each individual account listed on your Chart of Accounts. Sort Options Many reports allows you to choose how you would like your report to be sorted and subtotaled. Report Sub-Title You may choose to add a Report Sub-Title to your Reports. Click the down arrow at Sort report data by: and choose from the items on lookup table.

107 107 Memorized Report Groups Any Payroll report groups that your church staff has memorized will display in this area. Memorized reports are unique to each church the examples shown below are from a demonstration church database and will not be available in your system. ConnectNow Church Accounting: Payroll User Guide

108 108 Memorize a Report Group Use the Memorize feature to save your report with any special selections and/or filters that you have applied. To memorize a report, complete the following steps. 1. Select your report and apply any special selections or filters. 2. Click the Memorize Report button. 3. Type a name for your report and select a Group from Existing Group lookup table. If you have not previously created a new Group, click into the Enter New Group Name and enter the name of the Memorized Report Group. 4. Click the Memorize Report button. Your report will be available from the Memorized Reports menu, located on the right side of your Reports screen. Memorized reports can be modified and saved or deleted.

109 Print a Memorized Report Group 109 Once you have Memorized the various reports needed into Report Groups, you can quickly edit and print them as needed. 1. Click Reports and select the Memorized Report Group you would like to print. 2. A listing of all of the reports in the Memorized Report Group will display. 3. Click Preview All Reports to view and print all of the reports in the Memorized Report Grouping. 4. Click Rename Group if you would like to change the name of the Memorized Report Group. 5. To edit the selections on any report in the Memorized Report Group, click the report name and make any edits to the selections as needed. ConnectNow Church Accounting: Payroll User Guide

110 110 Exporting Reports All reports can be exported from ConnectNow Fund Accounting into various report types. The exported reports can then be viewed, edited and ed as needed. Select the report you would like to export and make any selections as needed, then click Preview Report. Click the lookup table in the upper right corner to determine the format of the export. PDF Portable Data File - Defaults to Adobe Reader (report may not be edited in a PDF format) XLS Defaults to Microsoft Excel RTF Rich Text Format - Defaults to Microsoft Word MHT MIME HTML - Defaults to Microsoft Internet Explorer Text Defaults to Notepad CSV Comma Separated Value - Defaults to Microsoft Excel Image Defaults to PNG Image reader To export directly to your hard drive, click the button. You will be prompted to select where you would like to save the file on your local computer. To export the report and open it in the default application, click the open in the file type s default application. button. The report will

111 Print 941 At the end of each Quarter, you must print a 941 and submit to the Federal Government with a payment for any taxes due. Set Employer Information First time users of Ledger & Payables must set up their Employer Information prior to printing the 941 (see page Enter Employer Information on page 15). Print Click Forms > Select the Calendar Year from the lookup table (system will default to the current calendar year). 3. Select the appropriate quarter from First Quarter, Second Quarter, Third Quarter or Fourth Quarter. 4. If needed, select any paygroups (system will default to All Paygroups). 5. Choose either 941 Blank Paper or Schedule B (941) Blank Paper from Form Name. 6. Click Preview Report. 7. You will be given the opportunity to edit the information to print on the 941. If you edit the form, keep in mind the following: a. If you adjust any number in a box on the form, the system does not recalculate values. b. If you adjust any number in a box on the form, you must make the same adjustment to all related values. c. The form 941 data page enables you to edit both the 941 and Schedule B forms. If you need to make changes to both forms, you must complete the process twice specifically for the area that each form addresses because changes to the Schedule b are not recalculated in the 941 form (and vice versa). For example, suppose that you change the amount of a tax liability for a month in the Schedule B s data area, you must also reflect that change by editing the Month total on Form 941 (line 17). d. If you need detailed information and specific instructions on completing the 941, go to for more information. 8. Click Submit to print the 941 or Schedule B. 111 ConnectNow Church Accounting: Payroll User Guide

112 112 ADMINISTRATOR TASKS

113 113 Manage Users Administrators can create new user accounts, reset passwords, and deactivate user accounts. You can choose to have as many people access your ConnectNow Church Accounting System as you would like, and you can have multiple people listed as a Church Administrator. Those people listed as Church Administrator have complete access to everything in your system. Those people listed as Church User s will have a concept of Permissions; where you can determine what you want them to have access to and what you do not want them to access. Add New User 1. Click the Church Manager tab. Password Change box and the system will prompt them for a new password the first time they log in. 5. Enter the First Name and Last Name. 6. Enter the user s Address. We will use that address to contact each ConnectNow user when updates and system maintenance tasks are scheduled. 7. Select the Role (e.g., Church User or Church Administrator). 8. The Active box will be checked by default to activate the user s account. 9. Click Submit. 2. Click the Add a User button. 3. Enter the User Name, Password, and Confirm Password. Passwords must be between 8 and 12 characters and must contain at least one letter and at least one number. 4. If you would like the user to determine their own password, click the Force ConnectNow Church Accounting: Payroll User Guide

114 114 Reset a User s Password Administrators can reset passwords for other users. 1. Click the Church Manager tab. 2. Click the Go button to view the user account. 3. Click Reset Password. 4. The system will display a system generated Password. Give this password to the user. 5. Click Submit. The next time the user logs in to Ledger and Payables with the system generated password, he or she will be asked to reset the password. Deactivate a User Account To prevent a user from logging into the system, open the user s account details using the procedure listed above. Uncheck the Active button and click Submit. The user s account will now display on the Login User List with False indicated under the Active column. Users may log in to Ledger and Payables display True in this field.

115 115 Permissions Those listed as Church Administrators have complete access to everything in the ConnectNow Fund Accounting system, and there is no concept of Permissions. It is recommended that you limit the number of Church Administrators to just a few people within your organization. The Payroll system s Permissions settings allow administrators to control which Parish Users can perform certain tasks or access certain information. For example, you may allow a specific staff member to enter timecards and personal time but prevent that same user from printing checks. Administrators click the Permissions icon to manage privileges for users with the Church User login type. Use the checkboxes to grant or remove access to any of the ConnectNow Church Accounting modules, as well as any Read, Write or Delete privileges to the following specific functions within the payroll system. 1. From the Church Manager tab, Permissions. click Show box must be checked if any individual items are checked. For example, you may want the Payroll tab to show, but not the Ledger & Payables tab. Simply remove the checkmark at Ledger & Payables Show and the user cannot see the Ledger & Payables tab or access any element of Ledger & Payables. NOTE: You must Show either the Ledger & Payables Tab or the Payroll Tab for the Church User to log in. If neither tab is set to Show, the user will be unable to log in. 4. You can select from Read, Allow/Write and Delete columns. The Read column allows the user to view the display. The Allow/Write column allows the user to add new or change existing data for that item. The Delete column allows the user to remove the item in its entirety. 5. Place a checkmark in the columns and items that you want the user to access. 6. Click Submit to save. 2. Click the down arrow at Quick Find and you ll notice only those listed as Church Users. Select the Church User that you would like to edit their permissions. 3. You can choose to have the Ledger and Payables and/or Payroll tab Show or not show when the user logs into ConnectNow Fund Accounting. The ConnectNow Church Accounting: Payroll User Guide

116 116 Audit ConnectNow Fund Accounting offers a complete Audit trail of your system, including the ability to filter for the specific item in which you are inquiring. to hide the details on the display. 5. If you would like a print out of the Audit, click the Preview Report button. 1. From the Church Manager tab, click Audit. 2. The items are listed in chronological order and you can view 100 records at one time. 3. Select the Manager (user name), Area and/or Audit Date range of the items you would like to review and click Search. 4. For more information on the transaction, click the Expand button to the right of the entry to gather more information about the transaction. Click Collapse