Day-to-Day Payroll Processing When Using QuickBooks

Transcription

1 Day-to-Day Payroll Processing When Using QuickBooks

2 Table of Contents Introduction... 4 Entering Wages and Other Earnings... 4 Timecard Entries...4 Call Progress...4 Manual Timecard Entries...5 Miscellaneous Wages...9 Processing a Payroll Period Payroll Manager...26 Creating and Deleting Payroll Periods...30 Preparing a Payroll Period...33 Reviewing an Employee's Payroll Period Information Reviewing Payroll Periods...34 Timecards...36 Miscellaneous Wages...39 Salaries...42 Calculating Overtime...43 Verifying Wages...45 Resetting a Payroll Period...45 Posting the Period...45 General Ledger Effects of Posting a Payroll Period...46 Payroll Reports Payroll Period Summary Report...48 Wage Source Report...48 Commissions Reports...49 Deferred Wages Report...52 Wage Summary Listing...52 Time Card Report...54 Processing Your Paychecks Creating the Export File...55 Importing To QuickBooks Pro...56 Paying Employees SuccessWare21, Inc.

3 Reconciling your Payroll Reconciliation Overview...61 General Ledger Effects of Posting Payroll Reconciliation...68 Multiple Local Payroll Taxes Withholding Local Taxes...72 Reporting Local Tax Withholding...73 Reconciling the Local Tax Withheld...73 Special Payroll Situations Changing an Employee's Pay Type...73 Changing an Employee s Pay Period...74 Changing the Ending Day for a Period Type...74 Recording Tax Payments and Other Deductions...75 SuccessWare21, Inc. 3

4 INTRODUCTION There are three steps included in the day-to-day processing of payroll: Entering Wages and Other Earnings Processing the Payroll Period Reconciling the Payroll Period This section will explain how to complete those steps. ENTERING WAGES AND OTHER EARNINGS Much of the daily payroll entry occurs automatically as you dispatch, on-site and complete calls through the CALL CENTER. Call progress creates a dispatched timecard entry using the dispatched to on-site times and an onsite entry using the on-site to completed times. Other earnings can be entered as manual timecard entries or as miscellaneous wages. You can enter hourly earnings, commissions and piece rate earnings as miscellaneous wages. Adjustments to salary earnings can be made as miscellaneous wages as well. This section explains how to maintain those entries. Timecard Entries Timecard entries can be created automatically through the entry of dispatch/onsite/completed times in the CALL PROGRESS window, or they can be created manually through the employee s timecard. Pay Item Entry Automation When making timecard entries either from CALL PROGRESS or manually on the timecard, the pay item used for the entry is automated upon selection of the timecard status. The PAY ITEM will contain an expense type, which will direct the expense associated with the timecard entry to the appropriate general ledger account. The following hierarchy is used to determine the Timecard Entry s Pay Item: If the timecard status chosen has been set up with a specific Pay Item, that Pay Item will be used. For Job related timecard entries (Onsite and Dispatched), if no Pay Item is associated with the status, the pay item associated with the job s Job/Call Type will be used. If no Pay Item is associated with the timecard status or the associated Job/Call Type, than the Default Pay Item will be used. Call Progress 4 SuccessWare21, Inc.

5 Call Progress can be recorded from the CALL CENTER, JOB FORM or the JOB MANAGER. Entering times in the CALL PROGRESS window will create a job related timecard entry for the employee. Dispatch and Onsite times will create a timecard entry with a status of Dispatched on the employee s timecard. Onsite and Completed times will create a timecard entry with a status of Onsite. The system will look at the employee s record to determine the pay rate. If you have entered pay rates for the specific pay items, the system will use those rates. Otherwise, it will use the employee s standard hourly rate. Note: Any changes to the pay item, premium code or rate of a timecard entry generated via the Call Progress window must be made in the employee s timecard. They cannot be made from the Call Progress window. Appropriate user permission is required. Manual Timecard Entries Manual timecard entries are created directly in the employee s timecard. Manual timecard entries can be job related or non-job related. Manual timecard entries could include meeting time, shop time, vacation or personal time and lunch entries. SuccessWare21, Inc. 5

6 Accessing the Timecard Timecard entries are added in the TIMECARD MANAGER. The TIMECARD MANAGER can be accessed from the: Main Menu access the MAIN MENU and click Payroll and then Timecard Manager. Call Center highlight the job for which you wish to make timecard entries. Right-click and select Employee timecard. Employee Review view of the Payroll Manager Right-click and select Timecard, or click the Timecard button. Employee Manager highlight the employee for which you wish to make timecard entries. Right-click and select Timecard, or press Ctrl+T. 6 SuccessWare21, Inc.

7 Recording Timecard Entries 1. Open the TIMECARD MANAGER. 2. Use the drop-down menu to select the employee. 3. Use the arrows or calendar to select the appropriate date. 4. Click Modify. 5. Press Insert or right-click and select Add new entry. 6. Select the appropriate timecard status. 7. Enter the IN and OUT times. 8. Use the drop-down menu to select the department to which you wish to apply the timecard entry. For non-job related entries, the employee s default department will appear 9. The PAY ITEM will be displayed. Change it if necessary 10. If the user has password permission to view payroll information, the employee s pay rate will be displayed. This will come from the employee s standard hourly rate in employee setup, or from the pay rate entry for the corresponding pay item. 11. If you wish to apply a premium rate for the block of time, select the Premium Code from the drop down list. SuccessWare21, Inc. 7

8 12. If you have applied a premium code, choose the duration of the total timecard entry that should be calculated at the Premium Rate. 13. Click Accept. Note: The Total Time (time out - time in) of any timecard entry can be broken down into five categories. Where it falls in the categories will determine how it is handled when preparing the payroll period. Regular time ordinary paid time that will accumulate and turn into overtime and effect regular/premium rate calculations. Non-regular time paid time that does not affect overtime and regular/premium rate calculations. Premium time time that is paid at a premium. Non-paid time time that is not paid. Overtime time that is paid at the overtime (OT) premium. NTCs NTCs are blocks of time on the employee timecard where there is no timecard entry. SuccessWare21 fills in the gaps between defined timecard entries with NTCs. In payroll setup you will determine whether the NTCs are paid or unpaid and whether the NTCs are counted as regular time. NTCs cannot be edited, but can be replaced by creating actual timecard entries to account for the time filled by the NTCs. Note: SuccessWare21 will only create NTCs on the current date or when making entries on the employee s timecard on previous dates. NTCs will not be created on future timecard entries. End of Day Punch Out By default, SuccessWare21 is set up with a Timecard status called DayEnded (End of Day Punch Out). This status allows you to create a timecard entry at the end of the workday for an employee that only requires an In time. It is not required but many companies find it very useful. Based upon the End of day punch out time SuccessWare21 will: Prevent the creation of timecard entries on the day after the punch out time. 8 SuccessWare21, Inc.

9 If there is a gap in time between the last out time on the timecard and the End of Day Punch out time, SuccessWare21 will create an NTC to account for the gap in time. If there is an open timecard entry and an end of day entry is entered, the end of daytime will be entered as the Out time for the previous timecard entry. Miscellaneous Wages Any wages for employees that are not entered through the TIMECARD MANAGER, or automatically as salaried earnings, are recorded through the MISCELLANEOUS WAGE MANAGER. These earnings can be additional hourly earnings, piece rate wages or adjustments to salaried earnings, or such things as commissions and bonuses. Miscellaneous Wages You can access the MISCELLANEOUS WAGE MANAGER from the following screens and/or functions: The Payroll Manager Employee Review view click Wages The Job Manager right-click and select Commissions. (This will only allow you to record job-related wages with a Pay Type of commission.) Job Summary click Commissions (This will only allow you to record jobrelated wages with a Pay Type of commission.) The Piece Rate Assistant click Wages The Employee Manager highlight the employee. Right-click and select Miscellaneous Wages. To make entries in the MISCELLANEOUS WAGE MANAGER: 1. Open the MISCELLANEOUS WAGE MANAGER. SuccessWare21, Inc. 9

10 2. Press Insert or right-click and select New. 3. Complete the fields: Field PayItem JobNo Dept EarnedDate Prem Hrs Description Select the appropriate pay item from the drop-down list. The fields that follow will depend upon the pay type (salary, hourly, commission, piecerate), of the pay item selected. If the item is associated with a job, enter the job number or select the job from the drop-down list. This is a required field if the Pay Item is marked as jobrelated. Enter, or select the department to which the item should be expensed. Job related entries will default to the job s department. Enter the Date on which the wage was earned. If you wish to apply a premium to the item, select the premium code from the drop-down list. (hourly pay type only) To record the number of hours associated with the item, enter the number of hours. (hourly pay type only) 10 SuccessWare21, Inc.

11 Field RegularRate Total Sale Base Description The employee s regular pay rate will default. You should NOT change the pay rate. (hourly pay type only) If the item includes a percentage of a sale amount, you must enter the sale amount. You can enter the total sale if the item does not include a percentage of sale also. If the item includes a pay base, enter the base amount. This is also the field you will use to enter any lump sum earnings (i.e in commissions.) % If the item includes a percentage of a sale amount, enter the percentage. RegTotal Release Date Will calculate based on the previous fields. Enter the date on which you would like to release the listed wage for payroll. The wage will appear in the prepared wages of the pay period in which the date falls. Leaving the date blank will leave the wage as a Pending wage that can be released in any future payroll period. 4. Press Enter to save the Miscellaneous Wage Piece Rate Wages Piece Rate wages can be recorded either in the MISCELLANEOUS WAGE MANAGER, or with the PIECE RATE ASSISTANT. The PIECE RATE ASSISTANT is a tool that will help you determine the total Piece Rate wages to be paid to the employee in relation to a specific job and to commit those Piece Rate wages to the MISCELLANEOUS WAGE MANAGER. You can also enter piece rate earnings in the MISCELLANEOUS WAGE MANAGER without using the PIECE RATE ASSISTANT. If you manually enter them as miscellaneous wages you can enter them as job related or non job related earnings. Using the Piece Rate Assistant The PIECE RATE ASSISTANT can be accessed from: The Job Manager- by right clicking on the job and selecting Piece Rate Wages The Job Summary Form- by clicking the Piece Rate Wages button at the bottom of the form. SuccessWare21, Inc. 11

12 In order for the PIECE RATE ASSISTANT to be available, one or more Piece Rate employees must be assigned to the job. Only users with the appropriate ability can access the PIECE RATE ASSISTANT and pay Piece Rate wages. Piece Rate employees are paid based upon a percentage of any combination of parts, labor and miscellaneous sale and/or a base amount. This is set up in the PIECE RATE tab in the employee setup screen. For example: - If a job has $1000 part sale and $100 labor sale, and - If one employee who is paid based upon 10% of the parts and labor sales is assigned to and completes the job - The total pay for this employee should be (10% of ($1000+$100)) + no base amount for a total of $110. When you open the PIECE RATE ASSISTANT the system will list all employees that are assigned to the job. The form will allow you to enter payments to multiple piece rate employees. Other employees will be listed but data entry is not allowed. You can enter partial payments based upon percentage completion of the job. SuccessWare21 will recommend payment based upon percentage of completion. In the example above, if you enter 50% for the %complete, SuccessWare will recommend a payment of $ SuccessWare21, Inc.

13 When there is more than one employee assigned to a job, they share the percentage of the sale based upon each employee s percentage of the job. By default, SuccessWare evenly distributes the job between all employees assigned to the job. In the example above, if two employee s set up with a 10%PL and no base were assigned to the job, their total pay each would be (10% of ($ $100)) X 50% or $55 each. Total piece rate wages for the job would be $110. You can edit the % OF JOB on the employees if you need to distribute the earnings differently (i.e. 1 employee at 70% and the other 30%). In a simple case of a one employee completed service call: 1. The system will display the wages earned date. You can accept the date or change it. 2. The system will display the wages released date. Enter the date you wish to release the pay for the employees. The release date will determine which payroll period will include the earnings. 3. If invoicing is complete, select the Invoicing Complete checkbox. The system will calculate wage percentages based on actual invoiced amounts. If invoicing is not complete, enter estimated amounts for parts, labor and miscellaneous sales in order to calculate pay for employees prior to invoice completion. 4. Select the employee in the grid for which you want to record wage information and press Enter to edit the line SuccessWare21, Inc. 13

14 5. Complete the following fields: Field Description % of Job Percent of the job completed by the selected employee. Will be 100% by default for a single employee or a percentage of 100 based upon the number of employees assigned to the job. For example, if there are 2 techs listed they will both be marked at 50% of the job. Edit these values if necessary. % Complete Percent of the job that is complete, will also default to 100%, edit this value if necessary. This value is used to determine what percent of the Piece Rate wage is now due to the employee. Base Department PayItem Enter a Base amount (if any, and if the employee setup allows base amounts). The PAY NOW amount will automatically adjust. If you are paying the employee a flat rate rather than a percentage, this is where you will enter that amount. Department that will be charged the expense of the wage item. The field will default to the job s department. You can change it if necessary. PAYITEM will default to the job s pay item if one has been set up. If there is no default pay item, choose one from the drop down list. 14 SuccessWare21, Inc.

15 6. Press Enter to save the line 7. Click the Pay button to post the wage to the employee s miscellaneous wages. Note: If you have paid partial wages based upon a percent complete of less that 100, you can edit the wage to be posted with a new percent complete. SuccessWare21 will calculate a new amount owed which you can move to current wages by pressing the Pay button. In the information panel at the bottom of the grid, the following information is displayed: The employee s piece rate setup (e.g., 10%PLM = 10 percent of part, labor and miscellaneous sale). The total pay when 100% complete (this is 100% of the employee s percentage of sale plus the bonus amount). The currently owed amount (this is based upon the percentage completed) If you change the percentage of the job or percentage of completion for the employee, the TOTAL PAY, CURRENTLY OWED, and will automatically adjust. You can edit the AMOUNT TO PAY to any figure less than or equal to the TOTAL PAY. The Wage History grid to the right of the employee grid lists the date and amount of all miscellaneous wages previously recorded for the selected employee for the current job. Entering Piece Rate Earnings as Miscellaneous Wages You can enter piece rate earnings in miscellaneous wages as job related or non job related entries. If you are entering job related transactions you will enter at least one line item for each job for which you are paying the employee. Follow the steps previously described in Miscellaneous Wages. If you pay your piece rate employees a base amount per job, determined by the task performed, you can record the pay base per invoice when you post the invoice and enter the earnings later as Miscellaneous Wages. SuccessWare21, Inc. 15

16 Pay Base You can enter a pay base for each task in the pricebook. When you record a customer invoice using the tasks you will select the pay base. You will run reports to total the pay bases later. To enter a pay base on a task: 1. Open the PRICEBOOK by selecting the pricebook icon on the toolbar or select Purchasing then Pricebook from the MAIN MENU. 2. Click on the + sign to the left of the category that contains the item you wish to edit. That will display the groups within the category. 3. Highlight the group that contains the items you wish to edit. The grid in the right panel of the screen will display the items that are in the group. 4. Highlight the item you wish to edit and press Enter, or right-click to select Edit task item. You can also double-click the item to open it in edit mode. 5. Select the Standard Price tab and enter the pay base you will pay employees for the task in the OVERRIDE AMOUNT field. To record a pay base for an employee: You will record the pay base that you will pay the employee for each task as you add the tasks to the customer invoice. You can select the pay base that you entered on the item in the pricebook or enter a different amount. To select or enter the base pay, press Ctrl+B or right-click and select Employee pay base after you have saved the line item that contains the task. 16 SuccessWare21, Inc.

17 If the task includes a pay base, the system will display the default base. Press Enter to accept the default or enter a different amount if you wish. If the task does not include a pay base, the system will display a blank EMPLOYEE PAY BASE form where you will enter the desired amount. To report pay base entries: The Sales Invoice Items report includes the print option Employee Pay Base Report. Use that option to report base pay that was entered during invoicing. You will use different sorting and grouping options on the report based on how you wish to enter the earnings in Miscellaneous Wages. For instance, if you want to enter the earnings as a flat amount for the payroll period per employee, group the report by Tech. In this example, you will enter 1 item in Miscellaneous wages for $ for the technician. SuccessWare21, Inc. 17

18 If you want to enter 1 item for totals by department you can group by tech, then by department. In this example you will make 3 miscellaneous wage entries: $68.00 for department 20 $52.00 for department 22, and $34.00 for department 50 Or, you may want to make a separate entry for each date (group by tech, then by invoice date) or for each department for each date (group by tech, then by date, then by department.) Try different grouping options to get the results you need. Billable Hour You can pay employees based on billable hours, rather than actual hours, using the task duration (or standard hours) for each task in the pricebook. When you record a customer invoice using a task item, the system records the task duration. You will run reports to total the billable hours later. To enter standard hours on a task: 1. Open the PRICEBOOK by selecting the pricebook icon on the toolbar or select Purchasing then Pricebook from the MAIN MENU. 2. Click on the + sign to the left of the category that contains the item you wish to edit. That will display the groups within the category. 3. Highlight the group that contains the items you wish to edit. The grid in the right panel of the screen will display the items that are in the group. 4. Highlight the item you wish to edit and press Enter, or right-click to select Edit task item. You can also double-click the item to open it in edit mode. 18 SuccessWare21, Inc.

19 5. Enter the number of minutes to use for the task duration and save the changes. In our example we are using 285 minutes for 4.75 billable hours. Note: Your task items should already include the task duration if your task prices are calculated based on pricing formulas. To record standard hours for an employee: You will record the standard hours for each task as you add tasks to the customer invoice. You can edit the standard hours for a particular task, if necessary, during data entry. To edit the standard hours: 1. Press Ctrl+S or right-click and select Standard hours after you have saved the line item that contains the task. 2. The system will display the Standard hours based on the task duration. SuccessWare21, Inc. 19

20 3. Enter the new number of hours and press Enter to accept the change. To report standard hours: The Sales Invoice Items report includes the print option Include Hrs/PLM breakdown/margin. Use that option to report standard hours that were recorded during invoicing. You will use different sorting and grouping options on the report based on how you wish to enter the earnings in Miscellaneous Wages. For instance, if you want to enter the earnings as a flat amount for the payroll period per employee, group the report by Tech. The Std Hours column reports the standard hours per task. If any changes were made to standard hours, the changes will be highlighted and included in the Revised Std column. If there are changes, refer to the revised standard total for accurate billable hours. Multiply the number of billable hours by the employee s hourly rate to determine the rate you will enter in Miscellaneous Wages. 20 SuccessWare21, Inc.

21 If you want to enter items for totals by department you can group by Tech, then by Department. If you pay the employee different rates for different job/call types you will group by Tech, then by Job/call type. An example of that report follows: SuccessWare21, Inc. 21

22 In this example assume that the employee earns $18.00 per hour for AC calls and $20.00 per hour for ACLK calls. You will make 2 miscellaneous wage entries: $54.00 for AC calls (3 x 18.00), and $20.00 for ACLK calls (.75 x 20.00) Or, you may want to make a separate entry for each date (group by tech, then by invoice date) or for each department for each date (group by tech, then by date, then by department.) Try different grouping options to get the results you need. To pay overtime: You must manually calculate and enter overtime for employees that are paid based on billable hours. The number of hours to which an overtime premium should be applied is determined by hours worked rather than billable hours. Our sample employee has paid hours on his timecard. However, 4 of the hours are vacation hours and do not count toward overtime calculations (they are non-regular hours.) The sample employee has billable hours. Three of the hours are paid at a rate of $18.00 and hours are at $ In addition, he worked 16 hours in the shop. The shop time is included on his timecard so we will enter his earnings in Miscellaneous Wages but not additional hours. All earnings will be entered in the MISCELLANEOUS WAGE MANAGER. 22 SuccessWare21, Inc.

23 After entering the employee s earnings, run the Wage Source Report to find his calculated regular rate and Premium Base. (Regular Earnings/Regular Hours) Since our sample employee worked regular hours he should be entitled to 2.25 hours of overtime. Calculate the employee s overtime earnings based on your selections for Base Rate and Premium Addition in Payroll Setup. As an example we will calculate the sample employee s overtime earnings based on his standard rate as his base rate and the calculated average for a premium addition. Since the employee s standard rate (from employee setup) is $20.00 the calculation is: ($ ) x 2.25 = You will then enter the overtime earnings in the MISCELLANEOUS WAGE MANAGER using a piece rate pay item that is not marked RegOT. SuccessWare21, Inc. 23

24 After entering the overtime earnings verify the employee. Commissions In day-to-day processing, commissions are recorded in the miscellaneous wage manager. This manager can be accessed for commission entry from: The JOB SUMMARY form by clicking the Commissions button, The JOB MANAGER by right clicking and selecting Commissions from the popup menu, The LINE ITEM COST ENTRY window in an AR Invoice (Accessed by pressing the Enter Cost button ). On the MISCELLANEOUS COST ITEMIZATION screen select the Commissions button. Note: Even though you can access and enter Commissions from the Miscellaneous Cost Itemization form, the commissions are not applied as cost to the job. When in COMMISSIONS mode of the MISCELLANEOUS WAGE manager, Commissions for Job is displayed in the caption at the top of the window. All commissions for the job are displayed. Only commissions for the job that have not yet been paid can be modified/recorded. To enter a commission in the COMMISSIONS mode: 1. Focus the grid and press Insert or right-click and select New. 2. Enter the appropriate data in the following fields: Field Employee Code Description Enter the employee code or select from the drop down reference book. 24 SuccessWare21, Inc.

25 Field Pay Item Department Earned date Total sale Base Percentage RegTotal Release Date Description Select the appropriate pay item from the drop-down list. Only Commission type pay items will be available. Will default to the job s department. You can edit the department if necessary. Enter the earned date for the commission. Enter a Total sale amount. If the employee commission is based in whole or in part on a percentage of the total sale, this total sale amount will be used in the calculation of the commission. Enter a Base amount if the employee s commission includes a base dollar amount. This field is only available if View Commission/Piecerate Rate/Amounts is selected for the user s (login) group. Enter a Percentage if the employee s commission is paid in full or in part on a percentage of the Total Sale amount. SuccessWare21 will apply the percentage entered to the Total Sale amount to determine the sale based commission owed. This field is only available if View Commission/Piecerate Rate/Amounts is selected for the user s (login) group. The RegTotal field will automatically calculate the total base commission + any percentage of sale amount earned. This field is only available if View Commission/Piecerate Rate/Amounts is selected for the user s (login) group. Enter the date on which you would like to release the listed wage for payroll. The wage will appear in the prepared wages of the pay period in which the date falls. Leaving the date blank will leave the wage as a Pending wage that can be released in any future payroll period. This field is only available if View Commission/Piecerate Rate/Amounts is selected for the user s (login) group. Note: If the Release date is left blank, the commission will be considered Pending. Pending commissions are commission intended to-be-paid, but will not be paid until reviewed and released via payroll review (pending wages have an earned date but not a release date ). 3. Press Enter or right-click and select Save to save the line. SuccessWare21, Inc. 25

26 Record as many commission as needed. Any employee can receive a commission related to the job. PROCESSING A PAYROLL PERIOD There are several steps included in processing a payroll period. Many of the steps are performed in the SuccessWare21 Payroll Manager. That information will be exported to QuickBooks Pro where you will calculate taxes and print checks. When processing a payroll period you will: Create the Period Prepare the Period Lock and Verify Earnings for Each Employee Post Export the Information to QuickBooks Pro Create and Print Checks Payroll Manager The PAYROLL MANAGER is where you will create, prepare, review, post and reconcile payroll periods. In addition, the Payroll Manager gives you access to previous payroll periods for review purposes. You can also generate Payroll based reports from the Payroll Manager. Opening the Payroll Manager 1. Click the 21 button on the toolbar to open the Main Menu 2. Click the Payroll button in the left column 3. Click the Payroll Manager button 26 SuccessWare21, Inc.

27 The PAYROLL MANAGER has three views: Payroll Periods where you will create and maintain payroll periods. This view also lists your payroll periods and their current status. The icon that appears in the first column of the row identifies the current status of a payroll period. Period Review where you will review the employees and wages associated with a specific pay period. Employee Review (only accessible from Period Review Mode) where you will review individual employee timecard entries and wages for the selected pay period. Icons and Control Menu Options in the Payroll Period View When you are working in the Payroll Period view of the Payroll Manager you will see icons next to each period. The icons indicate the status of the period. The following table identifies the icons displayed in the Payroll Periods View. Icon Description Locked all of the employees within the period are locked SuccessWare21, Inc. 27

28 Icon Description Verified all of the employees within the period are verified Posted the period has been posted to G/L Reconciled the period has been reconciled Adjusting the period has been adjusted, but not reposted. A red dot in the center of the Posted or Reconciled icons indicates that the posting or reconciliation posting has been adjusted and re-posted. Use the CONTROL MENU (right-click menu) to select the task you wish to perform. If you know the equivalent keystroke you may enter that instead. Menu Option Period View Create Periods Payroll Setup Description Allows you access to a submenu of options related to the selected payroll period including the ability to prepare and post the period as well as reset or delete the period if necessary. The Period option also allows you to review General Ledger activity related to the posting and reconciliation of the selected period. Allows you access to a submenu of options that will allow you to control the display of periods in the Payroll Manager grid Is used to create new payroll periods Allows access to the Payroll setup screen. 28 SuccessWare21, Inc.

29 Menu Option Obtain (Release) Payroll Lock Period Review Close Description When selected, the ability to edit payroll information is limited to the user who activated the lock. Other users who try to perform actions in the PAYROLL MANAGER will receive a message indicating that a Payroll Lock can not be Placed. Once Obtain has been selected, the option changes to Release Payroll Lock. To remove the lock, the user who placed the lock, must right click and choose release payroll lock. Selects the Period Review view of the Payroll Manager where you will prepare and review the selected payroll period Offers the option to close the PAYROLL MANAGER SuccessWare21, Inc. 29

30 Note: You can view all open periods or all periods for a given year. In addition to using the View option to access the Payroll Period view menu, click the period grid header or press Alt+V. Period Grid Header Creating and Deleting Payroll Periods You must create payroll periods prior to preparing and processing them. Periods will be created based upon the period types you have selected to use in your Payroll Setup. SuccessWare21 will automatically create periods for each type, from the ending date of most recent period of the same type, up to the current date. If only one or two periods need to be created, they will be created without user intervention. If, for a given type, more than two (2) periods need to be created to bring the period type up-to-date, you will be prompted to select the periods (date ranges) that you want to create. The first time you create a pay period for each period type, you will be prompted to select the period to create. The first time you create a bi-weekly pay period the system will ask you to identify a valid end date. For instance, if I selected bi-weekly as a valid period type and the period ends on Saturday, the system will ask me to select which Saturday is the correct end date. 30 SuccessWare21, Inc.

31 If neither is selected the system will display a message indicating that you should correct Payroll Setup and try again. After you select the correct end date you will receive the same display as the other period types where you will select which periods you do wish to create. Payroll periods must be created in order but you can prepare and post them as you need. Typically, you will process them in order. However, you may need to skip periods while you are in the process of implementing payroll. That will allow you to catch up prior periods and still process the current period. SuccessWare21, Inc. 31

32 To Create Payroll Periods: 1. From the PAYROLL MANAGER, press Ctrl+Ins, or right-click and select Create Periods. If payroll periods are current, the system will simply create and display the next period. For instance, if you processed the last payroll period in SuccessWare and need to create the current payroll period, you will not be prompted. If this is the first time you are creating periods, or there is a gap in payroll periods, the CREATE PERIODS form will open. Your options will depend on the Period Types you have indicated your company uses in Payroll Setup. You will be asked to select the periods you wish to create for each type your company uses. 2. Select the periods you wish to create and click OK. Note: The screen indicates that you can right-click to add more periods to the list. The system will only add prior periods. It will not create a payroll period for a future date. To Delete a Payroll Period To delete a period, select the appropriate period in the grid and press Ctrl+Del. In order to delete a period, the period must not be reconciled, posted, verified, or locked. Only the last period (chronologically) of any period type can be deleted. 32 SuccessWare21, Inc.

33 Preparing a Payroll Period Prior to processing a payroll period, the period must be prepared. Preparing a period will: Populate the period if not yet populated. Employees are added to the period according to the employee setup. This only occurs the first time a period is prepared. Summarize the employee wages. The employee wage summary does the following: - Marks all timecard and miscellaneous wages entries as prepared for the particular period. - Summarizes timecard entries for hourly employees and salaried employees who have been set up to expense wages via timecard entries. - Prepares salary splits into the wage summary for salaried employees who have been set up to expense wages using salary splits. - Summarizes miscellaneous wages for all employees. Timecard entries will be displayed, but ignored for piece rate employees. - Calculates total hours and wages for regular time entries to determine a regular rate. - Uses the regular rate, including overtime, to determine premium rates for the period. - Applies premium rates to all wages that include premiums. - If miscellaneous wages were earned in previous periods but released during the current period, the wage summary will recalculate the regular rates for the previous periods based upon the newly released wages and create miscellaneous wages for additional premiums that must be paid (if any). To Prepare a Payroll Period right click on the period you would like to prepare and select Period Prepare. When a period is first prepared, employees are inserted into the period based upon their employee setup. For example, when first preparing a weekly period, all active employees whose setup indicates a weekly pay period will be included in the period. Therefore, we recommend that you make all necessary changes to employees and payroll setup prior to creating and preparing the period. NOTE: Re-preparing a payroll period will not re-populate the period. To force repopulation of a period, you must reset the period before preparing. If you make a change to an employee s setup after the period is prepared you will also have to reset the period. SuccessWare21, Inc. 33

34 REVIEWING AN EMPLOYEE'S PAYROLL PERIOD INFORMATION Reviewing Payroll Periods Once a payroll period has been prepared, you will review each employee s earnings and as needed will: Enter any missing timecard entries, and Adjust or reset pay rates, Enter any other miscellaneous wages (i.e. commissions, piece rate, etc.), Calculate overtime, Lock and Verify each employee s earnings. Note: You must review, lock, and verify the wage information for every employee before you can post the payroll period. The PERIOD REVIEW view of the PAYROLL MANAGER lists all employees in the payroll period and summarizes their earnings. You will use EMPLOYEE REVIEW to review each employee s earning. The PERIOD REVIEW summarizes each employee s earnings in the top portion of the screen (the grid). The bottom section shows the detailed information for the selected (highlighted) employee. Use this information to ensure that each employee s earnings, hours, overtime and unreleased wages are correct. 34 SuccessWare21, Inc.

35 Note: Unreleased wages are any miscellaneous wages earned by the employee but not released into this or any other payroll period for payment. The top portion of the screen also will include an icon at the beginning of each employee s row that identifies his or her review status for the period: Icon Description Verified the employee s information has been verified and is ready for posting. (Verified information cannot be modified) Locked/unlocked users that do not have the appropriate ability cannot modify information for locked employees. A warning is displayed when modifying timecard or misc. wage information for locked employees/periods. Recalculate Overtime earnings that affect overtime have been modified and you must recalculate overtime for the employee. Modified information for this employee has been modified and the employee/period must be re-prepared before posting. Reviewing a payroll period consists of reviewing and verifying the payroll period information for all employees within the period. There are four ways that you can access EMPLOYEE REVIEW: Select the employee and click the Employee Review button at the top of the manager Select the employee and press Alt+E. Select the employee and press Enter. Select the employee. Then right-click and select Employee review. When you access EMPLOYEE REVIEW SuccessWare will ask you if you want to lock the employee s records for this period if the employee has not already been locked. Locking and Unlocking an Employee s Payroll Period Information When you open an employee to review them for the period you will be asked if you want to lock the period payroll records for this employee. SuccessWare21, Inc. 35

36 When an employee s information is locked for a period, only users with payroll abilities can modify the employee s timecard and miscellaneous wages for the date range the period covers. It is important to lock an employee s records before you review them in order to be sure the information does not change while you are reviewing it. An employee s payroll entries for the period can be locked manually by right clicking on the employee in Period Review mode and selecting Lock. To unlock an employee, while in Period Review mode right-click on the employee and select Unlock. Note: If the employee s record is locked when you are entering miscellaneous wages or other timecard entries, the system will display a message indicating that the record is locked and ask you to confirm that you do wish to post the changes for each entry. Only users with correct password permission can override the lock. If you have many entries that need to be made for the employee, and you are certain that other users are not entering data that may affect the employee s earnings you do not have to lock the employee s records at this time. If you do not lock the record prior to making the additional entries you must manually lock the employee s record when data entry is complete. Timecards The Employee Review lists all timecard entries for the selected employee for the date range covered by the selected period. Within this grid you can modify the timecard entries pay item, pay rate, premium hours and code, department, comment, and if the employee should be paid for the block of time. You can also modify the block of time to indicate whether or not the item is RegOT. (Items that are RegOT affect overtime calculations.) 36 SuccessWare21, Inc.

37 NTC entries cannot be modified. These entries will follow the setup for NTC entries in payroll setup. If you need to change the way a NTC entry is paid, make a specified time card entry for the time slot. Line items that are highlighted in yellow are pay items that are not regular time (not marked RegOT). Those items will not factor into overtime calculations. If you need to change the IN or OUT time of an entry, click the timecard button at the bottom of the manager. This will open the employee s timecard for that date. You can modify timecard entries through the timecard as usual. Adjusting Pay Rates Rates on timecard and miscellaneous wage entries are updated based on the employee s wage setup at the time of data entry. If you have different rates identified for different PAY ITEMS for the employee, the system will create each entry using the rate for the associated pay item. You can change the PAY ITEM or PAY RATE for individual entries, change the PAY ITEM for a group of entries, or reset all entries back to the employee s rate as established in the employee setup for Timecard entries. Miscellaneous wages must be edited individually in the MISCELLANEOUS WAGE MANAGER. To change the pay item or rate for individual entries you will manually edit the entries in either the timecard or miscellaneous wage entry. To change the pay item, and possibly the rate, for a group of entries you will use the Adjust pay item/rate option in the EMPLOYEE REVIEW. To reset all entries you will use the Reset all rates option in the EMPLOYEE REVIEW. To Change the Pay Item/Rate on Group of Timecard Entries: 1. Highlight the item you wish to adjust in the EMPLOYEE REVIEW. 2. Right-click and select Rates and then select Adjust pay item/rate. SuccessWare21, Inc. 37

38 3. Select the new PAY ITEM. If the employee is set up to receive a different pay rate for the new pay item, the system will change the rate. You can manually change the rate if necessary. You cannot manually change the rate in this screen without changing the PAY ITEM. 4. When you have made all necessary changes select Apply. All items in the pay period that contain the original Department, Pay Item and Rate as listed in the right panel of the PAY RATE ADJUSTMENT dialog box will be changed to reflect the newly assigned Pay Item and Rate. You will be informed of the number of entries that have been adjusted and that you must re-prepare the employee so that their wage summary reflects the new changes. To Reset an Employee s Pay Rates 1. In the EMPLOYEE REVIEW, right-click and select Rates and then select Reset all rates. 2. The system will ask you to confirm the action. 38 SuccessWare21, Inc.

39 3. If you select Yes, the system will reset the rates for all timecard entries included in the pay period to the rate that is currently listed in the employee s wage setup. Note: Any special rates that have been recorded in this pay period (that did not come from the employee s setup) will be overwritten and lost. Miscellaneous Wages To review and modify the employee s miscellaneous wages, click the Wages button at the bottom of the EMPLOYEE REVIEW window. This will open the MISCELLANEOUS WAGE MANAGER for the employee. The MISCELLANEOUS WAGE MANAGER allows you to review, modify and record miscellaneous wages for employees. The manager lists miscellaneous wages (non-timecard wages) in a grid. At the top of the form are three information panels. These panels display information regarding the currently selected wage entry: Employee information Job information Payroll period information Directly above the wage grid is the view caption panel. Use the options on the panel to display the desired records in the grid. The default display is Open wages for the selected employee. Select the down arrow on that view panel to select from: Any Wages for the selected employee All Wages for a specific job (possibly for different employees) Only Wages for an employee s payroll period You can also right-click on the grid and select from the View menu. SuccessWare21, Inc. 39

40 To change the type of wages you want to see select the down arrow at All open wages to choose between (only) open wages or all wages within a selected year. The Miscellaneous Wages listed will fall into the following classifications: Open wages are any wages that have not yet been verified. This includes both pending and released wages. Pending wages are those wages that have been earned but have not yet been released for payment. These wages have a earned date but they do not have a release date and will not be paid until released. Released wages are wages that have been released for payment. These wages have a release date and will be paid in the employee s pay period that includes this date. Verified wages are those wages that have been reviewed and verified for a particular payroll period. Use the Pending, Released and Paid filters on the view caption panel to select the wages that should be included in the view. The system uses icons to indicate the status of each item: Icon Description Pending the wages have been earned but have not been released for payment. Released the wages have been released for payment in a valid payroll period. Paid the wages have been released and the payroll period was posted. Earnings with a release date prior to your payroll activation date will also be marked as paid. Modified information for this employee has been modified and the employee/period must be re-prepared before posting. Recording Miscellaneous Wages You may enter miscellaneous wages daily as part of your job completion and invoicing procedures. However, you may still have wages that you need to add to payroll as you are processing the period. To enter miscellaneous wages from the Wages tab in the PAYROLL MANAGER: 1. Click in the wage grid; press Insert or right-click and select New. 40 SuccessWare21, Inc.

41 2. Tab to the PAY ITEM field and select a pay item. This will determine whether the entry is salary, hourly, piece rate or commission. For salary and hourly pay items the hours, rate and premium columns are available. For piece rate and commission pay items the base, total sale and percent columns will be available. 3. Fill in the appropriate fields for the wage entry. 4. Enter an EARNED DATE for the wage. 5. The RELEASE DATE will determine which pay period should include the earnings. If you know the date you wish to release the earnings, enter the release date. If you leave the field blank, the system will consider the earnings as pending wages. You can edit the earnings to release them later. 6. Press Enter or right-click and select Save. Releasing Miscellaneous Wages Pending wages are miscellaneous wages that have been entered but not released for payment. To release pending wages you can either edit the line item in the MISCELLANEOUS WAGE MANAGER to enter the appropriate RELEASE DATE, or use the Release option. To use the Release option: 1. Press Alt+R or right-click on the wage and select Release. This will put the wage into edit mode and insert the current date in the release date field. 2. Save the line item with the current date or enter a different Release Date for the wage entry. 3. Press Enter or right-click and select Save. The wage will be included on the employee s paycheck for the pay period that includes this release date. If the period that contains the release date is already verified, you will not be able to release the wage on that date; you will need to enter a later date. If the period is locked, you will be notified and only allowed to override the lock if you have the required user ability. Wages that were earned in a prior payroll period but released in the current payroll period are considered Deferred Wages. Deferred wages will appear red in the miscellaneous wage manager. They may affect overtime calculations. Pending a Miscellaneous Wage Once a wage has been released, it can be pended again. Select the wage to be pended and press Alt-P. The release date will be cleared and the wage will now be marked as pending. SuccessWare21, Inc. 41

42 Deferred Wages and Premium Rates Miscellaneous wages will affect the calculation of the premium rates for a period if they have been marked as regular earnings (ISREGOT is marked on the pay item). Nonregular wages have no effect on these calculations (non-regular entries will be highlighted in yellow). For detailed information on how the system calculates the regular rate, refer to the Overview section of this manual. The release date and earned date allow you to control the period whose premium rate is affected by the deferred wage separately from the period in which the wage is paid to the employee. For instance, you can hold all commissions and release them in the last period of the month without having the commissions affect the regular rate for the last period of the month. A deferred wage will affect premium rate calculations for the period that includes the earned date. A deferred wage will be paid to the employee in the period that includes the release date. If those wages are earned in periods prior to the period in which they are paid (released), SuccessWare21 will recalculate the premium rates for the previous periods and make a special miscellaneous wage entry for additional premiums that must be paid (if any). This additional premium is based on the difference between the original premium rate of the prior period and the new premium rate as affected by the released wages. You may see overtime entries for departments and pay items that are not in the current payroll period and for small amounts. Those are the entries for the additional premium. For details on how the system calculates the deferred premium rate, refer to the Payroll Overview documentation. Salaries If a salaried employee s wages are expensed based on timecard entries as opposed to a salary split, you will need to confirm that all timecard entries and the department associated with them are correct. Additionally, salaried employees can also have miscellaneous wages added to their gross wage for the period. These additional wages can be added as you would add any other miscellaneous wage. 42 SuccessWare21, Inc.

43 Calculating Overtime The calculation of overtime for an employee is performed in the Employee Review Mode. Overtime can be specified for an employee on both the timecard and/or in his/her miscellaneous wages. Overtime can be manually entered and/or calculated automatically based upon the payroll setup. When calculating overtime automatically, overtime is calculated for all timecards in the overtime workweek. This overtime workweek can coincide with the pay period for weekly and biweekly periods. It can also be set up as a particular block of seven days separate from pay periods as specified in overtime setup. Monthly and semimonthly periods must use this particular workweek, as these period-types do not necessarily include even segments of seven-day weeks. SuccessWare21 keeps totals of two types of Overtime. Manual Overtime this is overtime that is manually recorded on an employee s timecard or in a miscellaneous wage entry by choosing the Overtime Premium code. In the Employee Review, manual overtime is listed in the Manual OT column. Manual overtime is always included in the calculation of Total Overtime for the period for the selected employee. Automatic Overtime Automatic Overtime is calculated based upon the Period s Overtime setup (for example OT after 40 hours in the week) and the total number of hours accumulated by the employee. In the Employee Review, the calculated Automatic Overtime is listed in the Auto OT column. Whether or not the calculated automatic overtime is included in the calculated Total Overtime for the pay period depends upon whether AUTOMATIC OVERTIME is selected for the employee when setting up the employee. If Automatic Overtime is selected, the AutoOT + ManualOT= Total OT If Automatic Overtime is NOT selected, AutoOT will still display, but Total OT will only include the total ManualOT for the period. If you want to include the AutoOT hours, you must edit the timecard entries and manually include the OT using the OT Premium code. SuccessWare21, Inc. 43

44 Manually Entering Overtime To manually enter overtime, you will manually enter the appropriate time segment in either the TIMECARD MANAGER or MISCELLANEOUS WAGE MANAGER. When entering the time segment, you will assign a premium code to the item. When you select a premium code on a timecard entry you can specify how much of the time segment should be calculated at the premium rate. When assigning a premium to miscellaneous wage entries you will enter separate line items for the regular vs. premium rate hours. The system will refer to the premium code selected to determine the multiplier for the time segment. Calculating an Employee s Overtime Calculating overtime considers the following: Whether you accumulate overtime on a weekly or daily basis. The number of hours you have defined after which you wish to accumulate overtime. The default overtime workweek. Whether the employee is set up to use automatic overtime. Your overtime multiplier. Wages for pay items marked as ISREGOT. If you have not calculated overtime or changes have been made that affect overtime since you did, the system will display the icon to indicate that overtime should be calculated. To calculate overtime From the EMPLOYEE REVIEW mode of the payroll manager, click the Calc Overtime button. Overtime for the timecards in overtime week(s) included in the pay period will be calculated and included in the TotalOT column. Once you have pressed the Calc Overtime button the icon in front of each timecard entry will change to the modify icon. This icon indicates that the employee needs to be reprepared to recalculate total gross wages. 44 SuccessWare21, Inc.

45 Note: Overtime can also be calculated from the employee s timecard by rightclicking and selecting Calculate overtime. Overtime for the overtime week of the current timecard will be calculated. Verifying Wages When you have reviewed the timecard entries and miscellaneous wages and everything appears in order, you must verify each employee s wages. The employee s records for the period will be re-prepared, marked as verified and the manager will return to Period Review mode. Once an employee is verified for a payroll period, his/her timecard or miscellaneous wages for that date range cannot be modified unless the employee is unverified. All employees must be verified before the period can be posted. Verifying Wages To verify employee wages, click the Verify button located at the bottom of the EMPLOYEE REVIEW form. You can also right-click and select Verify or press Ctrl+V. The system will ask you to confirm the verification. If you discover that changes need to be made to an employee s wages after his or her wages have been verified, you can unverify the wages if you have permissions to do so in SuccessWare21. Unverifying Wages To unverify an employee s wages, go to the EMPLOYEE REVIEW for the employee whose wages you wish to un-verify and click the Unverify button located at the bottom of the EMPLOYEE REVIEW form and confirm. The employee s wages must be verified again prior to posting the payroll period. Resetting a Payroll Period There are certain changes that you can make in an existing payroll period simply by editing the record. For instance, you can edit timecard entries to change a pay item or rate. However, some setup changes that will affect a prepared payroll period must be recognized by resetting the payroll period. The period can then be repopulated and prepared. To reset a period, right-click on the appropriate period in the grid and select Period Reset. Resetting a payroll period will clear all wage summaries, premium rates, reconciliation records, and employees from the period and reset the period as if it had never been prepared (timecard entries and miscellaneous wages remain unaffected). Only the last period (chronologically) for any period type can be reset. Posting the Period Once all employees have been verified, the payroll period can be posted. Posting the period makes all of the appropriate entries in the General Ledger related to the Payroll Period. This puts the manager back in Payroll Periods mode. Payroll can be set up to post using one of three different methods depending upon your setup choices in relation to Estimated Labor Burden: SuccessWare21, Inc. 45

46 Post without an Estimated Labor Burden. Post an Estimated Labor Burden, to the default Estimated Labor Burden account as defined in General Ledger setup. With an Estimated Labor Burden based on timecard pay items (this will post the estimated burden to each pay item s account when it posts earnings). To Post the Payroll Period 1. Click the Payroll Periods button at the top of the manager. 2. With the correct period selected in the period grid click the Post button at the bottom of the manager, or, right click on the period in the grid and select Post from the popup menu. The payroll period will post to the General Ledger. The system will use the wage dates for the post dates. The post date is the date on the timecard for timecard entries and the release date for miscellaneous wages. General Ledger Effects of Posting a Payroll Period When you post a payroll period the system will use the wage dates for the post dates. The wage date is the date of a timecard entries or the release date for miscellaneous wages. Refer to the Overview section of this manual for examples of General Ledger posting tables for sample payroll posting using the different methods. 46 SuccessWare21, Inc.

47 PAYROLL REPORTS Payroll reports can be run at various stages of processing your payroll period. Some reports, such as the Commissions Report and the Time Card Report can assist you in verifying earnings for the current period prior to posting the period. Other reports, such as the Payroll Period Summary and Period Stubs, are typically run after a payroll period has been posted. Some, such as the Period Stubs report may even be distributed to your employees as backup for their earnings. All payroll reports can be accessed from the PAYROLL MANAGER and some from the REPORT GALLERY. From the PAYROLL MANAGER, select the Reports button at the bottom of the window. Highlight the report you wish to run and choose the appropriate filters. SuccessWare21, Inc. 47

48 Payroll Period Summary Report The Payroll Period Summary can also be run from the Payroll group in the REPORT GALLERY. This report generates a Payroll summary for a selected payroll period. It includes total gross wages earned by each employee. Select Include detail to report total hours and earnings for each pay item and department per employee. Select Hours in decimal format to report hours in decimal format rather than the hour:minute format. The following is a sample including detail in decimal format: The check number and amount will be included when the report is generated after the payroll period has been reconciled. Wage Source Report The Wage Source Report includes detailed information for a particular payroll period or a range of periods. It can also be run from the Payroll group in the REPORT GALLERY. You can run the report for all employees or for a single employee. If you run the report for all employees you can select to start a new page for each employee. Use the radio buttons and checkboxes in the top section of the report form to select the details you wish to include. DETAIL OPTIONS the following samples show the format of the different detail options for the same report information. 48 SuccessWare21, Inc.

49 No Detail Time Breakdown Detail Job Location Detail Users who have local payroll taxes and have selected Enable assisted local payroll tax withholding in Payroll setup will use the Wage Source Report to report the local taxes. When payroll is setup to report local taxes, the report form will include additional fields for local tax reporting. The Local Tax Withholding Analysis option includes an additional DETAIL OPTION, Withholding detail. Withholding detail Commissions Reports There are three commission reports that can be run from the PAYROLL MANAGER: Period Stubs- Provides a separate page for each employee which includes detail for all commissions earned and their source. Period Summary- Allows for a report of all commissions earned in a selected pay period. Commissions Report- Reports on commissions earned and/or released through a defined date range. SuccessWare21, Inc. 49

50 The Commissions Report can also be run from the Management Reports group of the REPORT GALLERY. Period Stubs You can print this report to give to commission employees as detail of the commissions they earned for the pay period. It will start a new page for each employee. Period Summary The Period Summary includes the same detail as found on the Period Stubs but does not start a new page for each employee. This is a report that you will print for your records rather than to distribute to your employees. Commissions Report The Commissions Report has more printing options that the period reports. It can be run independent of a payroll period for many purposes. It can also be run from the Management Reports Group in the REPORT GALLERY. You can run the Commissions report for only Sales jobs, only jobs that are not Sales jobs, or all jobs. You can select whether you wish to report commissions that are only earned and not released or those that have been released for payment. 50 SuccessWare21, Inc.

51 The following is a sample Commissions Report run for all wages released in the month of March. It is grouped by employee and sorted by release date. SuccessWare21, Inc. 51

52 Deferred Wages Report As you know from setting up and processing your payroll you may have deferred wages that, when released, can affect the regular rate of a prior payroll period. The changed regular rate may result in the recalculation of premium wages for the prior payroll period. The Deferred Wages report will display the original rates and earnings and compare them to the recalculated rates. Sample Deferred Wages Report Wage Summary Listing The Wage Summary Listing is another report of earnings. It reports every item of wage entry whether it is a timecard entry or has been entered as a miscellaneous wage. It also includes the amount of estimated labor burden and the total cost (including the labor burden) for each item. The Wage Summary Listing can be run prior to posting the payroll period and can be run from the REPORT GALLERY as well as the PAYROLL MANAGER. This report can be run for a date range, rather than a specific payroll period, and includes selection fields for Employee and Employee Type. 52 SuccessWare21, Inc.

53 The following is a sample of the Wage Summary Listing report grouped by Employee Code. SuccessWare21, Inc. 53

54 Time Card Report The Time Card Report only includes entries to the employee s timecard. Miscellaneous wages will not be included on the report. It can also be run from the Job/Call Reports group of the REPORT GALLERY. The Time Card Report is run by date range and you can select to include all or only selected employees or timecard status codes. It is subtotaled by employee by default but you can select whether you wish to group items for each employee by Date, Department, or City. Sample Time Card Report 54 SuccessWare21, Inc.

55 PROCESSING YOUR PAYCHECKS Once you have posted your payroll period in SuccessWare21 you will export the information and import it into QuickBooks Pro. SuccessWare has provided you with the QBLink utility that will interface with QuickBooks Pro for that purpose. You will reconcile your payroll after processing in order to record payroll checks and actual benefits in SuccessWare21. Creating the Export File The export file will contain all payroll information that was used in the current payroll period. The file will include all pay items, employees, and earnings that are included in the period. To create the export file: Select the Export button located at the bottom of the Payroll Manager. The export menu will display. Select Export Period and confirm the period you wish to export. (The first time you export payroll you may need to select the extended export. If this is the first time you are exporting, refer to the Setup section of this documentation for more information.) The system will display a message indicating that the export was successful. Possible Causes of Export Failure The following issues may cause your period not to export (ensure that these situations do not exist): If an employee has a blank or otherwise inappropriate value in the following required fields: social security number, first name, and last name. (While Sex is required, it won t cause an export failure) If an employee s social security number does not have the format xxx-xxxxxx. IMPORTANT Note: The QBLink import utility matches employees by social security number. If you create employees in QuickBooks or change an employee s social security number, you must manually make sure the social security number in SuccessWare21 matches the social security number in QuickBooks. Failure to properly follow this procedure may result in the employee being added to QuickBooks a second time with the different social security number. SuccessWare21, Inc. 55

56 If an employee s total wages for any individual pay item is less than zero. All rates must be greater than zero. If an employees timecard entries exceed 24 hours for a day. QuickBooks does not allow more than 24 hours for any date. If any of the conditions listed above exist, correct them and re-export the period. Importing To QuickBooks Pro Once the export file is created successfully you will run the QBLink utility. Before running the utility, open the QuickBooks Pro software and make sure that only the Company Navigator is in Open Windows. Having other QuickBooks Pro windows open will cause QBLink to fail. We recommend backing up the QuickBooks company to your local drive prior to importing from SuccessWare21. If there is a problem with the import you will restore the backup prior to importing again. To Launch QBLink: 1. LAN Users Select the Export button at the bottom of the Payroll Manager. ASP Users Select the QBLink shortcut on your local desktop. 2. The export menu will display. 3. Select Launch QBLink. 4. The system will display a message for you to start QuickBook and click Connect. If you did not open QuickBooks Pro prior to launching QBLink, open it now. 5. Click the Connect button. 56 SuccessWare21, Inc.

57 6. The system will display a message to confirm that you are importing the correct period and company information. 7. Select Import. 8. If there are any changes to employees or pay items in the current payroll period, the system will display a message asking you to review a report that displays the new information being added to QuickBooks. Print the report and review it for accuracy then select Import again. When it is complete the system will display a message that the import was successful. Problems Importing To QuickBooks If any errors occur during the import, you will be notified, and you can print a report. Fix the appropriate data in SuccessWare21 and re-export the period and then attempt the import again. IMPORTANT: If the Import fails after some timecard entries have been imported, the timecard entries will exist in QuickBooks. If time sheet entries exist for the period, when you try to re-importing you will be notified. Cancel the import. If you backed up the QuickBooks company to your local drive prior to importing as we recommend, restore the backup. If you did not backup prior to importing you must delete all Time Sheets for the period within QuickBooks to ensure that double entries are not created. To delete all entries on a Time Sheet, select Time Tracking>Use weekly timesheets to open the Time Sheet. Press Ctrl+D to delete. SuccessWare21, Inc. 57

58 The following is a list of known QB import errors and resolutions: Error (Error 3000) The given object ID xxx in the field xxx is invalid. (Error 3100) The name "" of the list element is already in use. (Error 3110)The enumerated value "" in the field "Gender" is unknown. (Error 3110) The enumerated value "" in the field "State" is unknown. (Error 3140) There is an invalid reference to QuickBooks Expense Account. Resolution Check and make sure Social Security numbers in SuccessWare21 match Social Security numbers in QuickBooks. They must be identical including dashes. Possibilities: QBLink is trying to add an employee (or pay item) to QuickBooks and that item is already in use. Check and make sure Social Security numbers in SuccessWare21 match Social Security numbers in QuickBooks. They must be identical including dashes. If they do not match, make the appropriate changes in either QuickBooks or SuccessWare21 and export again. Then retry the import. SuccessWare21 may not have access to Social Security number/personal Information info in QuickBooks. You need to: In QuickBooks click Edit Preferences Integrated Applications Company Preferences Select SuccessWare21 Properties and checkmark Allow this Program Access to Social Security Numbers The employee or pay item may have been deactivated in QuickBooks Pro. Employee in SuccessWare must have the field "Sex" appropriately completed. Edit the employee in SuccessWare21 and select the appropriate gender for the employee. Employee in SuccessWare must have "State" and other address fields appropriately specified. Edit the employee in SuccessWare21 and enter the appropriate address and state. The account attached to the pay item may be set up in QuickBooks as a subaccount to another account. Make the account a top level account. 58 SuccessWare21, Inc.

59 Error (Error 3170) Error updating employee, element. (Error 3175) There was an error adding, modifying, or deleting xxxxx-xxxxxx (Error 3180) There was an error when saving a TimeTracking. (Error 3180) There was an error saving a Accounts list, element xxxx. Resolution There may be more than one employee in QuickBooks with the same name or social security number. Employee(s) are open in QuickBooks, or employees have been modified in QuickBooks since opening QBLink; In QuickBooks, close all windows but not the company itself, close and restart QBLink and then the import should work. Time tracking is not properly enabled. You need to: In QuickBooks click Edit Preferences Time Tracking Company Preferences and set Do you track time = Yes. In QuickBooks click Edit Preferences Payroll & Employees Company Preferences Employee Defaults and make sure Use time data to create paychecks is checked. For any individual employee that gets this error, edit the employee (in QuickBooks), change tabs to Payroll & Compensation Info and make sure Use time data to create paychecks is checked. Use account numbers may be enabled. In QuickBooks, select Edit Preferences Company Preferences. Either disable the feature or manually add the accounts in QuickBooks. SuccessWare21, Inc. 59

60 Paying Employees After you have successfully imported the payroll period information from SuccessWare21you will create and print the checks in QuickBooks Pro. We recommend printing the Payroll Period Summary report for the payroll period to use for verifying that the information is correct in QuickBooks. To create paychecks: 1. Select Employees, then Pay Employees, from the QuickBooks Pro toolbar. 2. It is important that you enter the correct Check Date and Pay Period Ends dates. The Hours column displays the hours included in the pay period that contains the end date you enter here. If the hours do not appear to be correct, verify that you have entered the correct pay period end date. 3. Confirm that Enter hours and preview check before creating is selected. 4. Use the mouse to checkmark the employees you wish to pay. If all employees on the list are included in this payroll period, select Mark All. 5. The system will open each employee s paycheck for your review. 60 SuccessWare21, Inc.

61 Compare each employee s earnings to the Payroll Period Summary report you created in SuccessWare21. Make any corrections, if necessary. If you did not import commissions, be sure to add them to the Other Payroll Items section. Confirm that any deductions that should be included in the employee s check are in the Other Payroll Items section. 6. Once you have confirmed that the employee s check is correct, select Create. 7. The system will create that employee s paycheck and display the next employee for review. 8. Repeat the steps until all employees checks have been created. 9. QuickBooks will return to the SELECT EMPLOYEES TO PAY window. 10. Select Print Paychecks and print paychecks for all employees. Note: These instructions are included to assist you in processing your payroll through SuccessWare21. If you need assistance, or have questions on, using QuickBooks Pro you should contact Intuit support. RECONCILING YOUR PAYROLL Reconciliation Overview Once payroll checks have been created and printed you will import the information back into SuccessWare21 for reconciliation. In order to import the information you must create the import file in QuickBooks Pro. You will reconcile each payroll period from the Payroll Manager's Period mode. The period must have been posted prior to reconciling. Creating the Reconciliation Import File You will create the import file in the QuickBooks Pro software by running the Payroll Reconciliation Report that was created during the setup process. To create the import file: 1. Select the QuickBooks Pro Reports menu. 2. Highlight MEMORIZED REPORTS and select Payroll Reconciliation Report. 3. At the top of the report form, enter the check date you used for the paychecks into both the FROM and TO fields. 4. Select the Print button 5. In the Print To section of the PRINT REPORTS dialog, select File. SuccessWare21, Inc. 61

62 6. From the drop down that follows select Tab delimited. 7. Select the Print button. 8. In the CREATE DISK FILE window, locate and open your default import/export folder and double click the subfolder of the company for which you are currently processing payroll. Note: The company subfolders will be named 1001, 1002, etc. In the default import export folder, in addition to the company subfolders, you will you will also see files named 1001= <<Company Name>> And 1002=<<Company Name>>. These files will help you to identify which subfolder represents each company. By exporting the file to the correct subfolder, SuccessWare21 will be able to automatically find the file when you import the reconciliation within SuccessWare Enter the file name in the format YYMMDD <periodtype>rec. Using this naming convention: YYMMDD- represents the end date for the pay period. Period Type- Use a W, B, S or M to represent a Weekly, Bi-weekly, Semimonthly or Monthly period REC This is the default suffix that must be used for a file when importing QuickBooks information into the SuccessWare21 payroll reconciliation. 62 SuccessWare21, Inc.

63 For instance, when exporting reconciliation information for the weekly period ending 03/28/04, enter W REC (the file extension.txt will automatically be added). Note that there are spaces between the date and period type, and between the period type and REC. 10. Make sure the Save as type is text (*.txt). 11. Select the Save button (The report will be saved to the file for SuccessWare to access) Reconciling a Payroll Period After creating the import file in QuickBooks Pro you will return to the SuccessWare21 PAYROLL MANAGER to complete the reconciliation. In order for a payroll period to reconcile, Posted earnings must match Reconciled earnings. Reconciled Earnings = (Total Checks + Total Deductions) To reconcile a Payroll Period: 1. Highlight the period you wish to reconcile and click the Reconcile button at the bottom of the PAYROLL MANAGER. You can also right-click on the period and select Reconcile. 2. The PAYROLL RECONCILIATION form will open. The PAYROLL RECONCILIATION form has three tabs. They are: - PAYROLL CHECKS/DISBURSEMENTS - EMPLOYEE DEDUCTIONS AND ADDITIONAL EMPLOYER PAYROLL EXPENSES, and - RECONCILIATION. 3. Click the Import button at the bottom of the Reconciliation window 4. Click Yes to confirm the payroll period you wish to import. 5. You will be asked to confirm that any previous reconciliation imports for this payroll period will be overwritten, select Yes. 6. The payroll checks will be displayed. SuccessWare21, Inc. 63

64 7. Verify that the correct bank account is displayed in the Payroll Bank Account field. If not, use the drop-down menu to select the correct register account. 8. Enter the check date in the Payroll Check Date field. 9. Select the Reconciliation tab. 10. The Reconciliation page shows the variance between the original posting of the period and the reconciliation. It also displays total expenses entered in the reconciliation and the variance between that value and the estimated expenses 64 SuccessWare21, Inc.

65 that were posted as Estimated Labor Burden. If you are not using Estimated Labor Burden, the expense variance will be equal to your total expenses. After importing, the earnings should balance. If they do not balance the system will display a message in red indicating that you should review the entries to determine the discrepancy. Note: If the discrepancy is a few cents, it may be due to rounding and will not require corrections in the PAYROLL MANAGER. You may wish to make journal entries at month or quarter end to zero out the discrepancy which is left in the accrued wages liability account and re-distribute it to another account. To Balance Earnings If you find a variance between Posted and Reconciled earnings you should determine where the discrepancy is coming from and make corrections as necessary. You must determine if the discrepancy is coming from Gross Pay Payroll Checks, or Employee Deductions Gross Pay Before checking the detail for checks or deductions, determine if gross pay has been posted correctly. The Posted earnings amount should match gross pay in QuickBooks Pro. If it does not, compare gross pay for each employee to his or her earnings as posted in SuccessWare21 to determine which employee(s) is incorrect. If the error is in SuccessWare21 1. Close the RECONCILIATION form and return to the PAYROLL PERIODS view of the PAYROLL MANAGER. 2. Select the Adjust button to un-post the payroll period. SuccessWare21, Inc. 65

66 3. Unverify each employee that requires correction and make the necessary corrections. Verify the employee once his or her earnings are correct. 4. Once all employees have been corrected and verified, re-post the payroll period by selecting the Post button located at the bottom of the form. 5. Select the Reconcile button to resume the reconciliation. 6. Confirm that Posted earnings now matches gross pay. If the error is in QuickBooks Pro and you have not handed out the checks, you should void checks for each incorrect employee. Edit paycheck information in QuickBooks or the other software and reprint the correct checks. After correcting, you should create a new import file and re-import the reconciliation into SuccessWare. and you have handed out the checks, you should determine whether you should correct the earnings this payroll period or wait and correct the earnings in the next payroll period. If you must correct the earnings this payroll period you will create an additional check for the earnings discrepancy for each affected employee. After correcting, you should create a new import file and re-import the reconciliation into SuccessWare or reprint payroll reports. If you have determined that you can make the corrections in the next payroll period you must change the earnings in SuccessWare21 to match your payroll source. Follow the instructions for If the error is in SuccessWare21 to un-post, unverify, and correct each employee. You will use Miscellaneous Wages to add or subtract the error when processing next payroll period. Once corrections are made to earnings you will resume the reconciliation. Confirm that Posted earnings now match gross pay. If your Posted earnings match gross pay but there is still a variance in earnings, there is an error in either payroll checks or deductions. Payroll Checks Since you are importing paychecks from QuickBooks Pro there should not be an error in the paychecks. However, you should still confirm that your net pay is correct. Go to the first tab in the payroll reconciliation form, PAYROLL CHECKS. Compare Total Checks at the bottom of the form to Net Pay on your QuickBooks reports. 66 SuccessWare21, Inc.

67 If the amount is different, compare net pay for each employee to his or her check amount as posted in QuickBooks Pro to determine which employee(s) is incorrect. If the error is in QuickBooks Pro you will need to make the necessary corrections there. After correcting, you should create a new import file and re-import the reconciliation into SuccessWare. If, for some reason, the check amount is correct in QuickBooks but did not import correctly you can manually enter the correct amount in SuccessWare21. You should investigate the reason for the error and correct it for future payroll periods. Confirm that your memorized report is correct in QuickBooks and that your import filters are correct in SuccessWare. Deductions To confirm that deduction entries are correct open QuickBooks Pro and display the Payroll Summary report for the payroll period (enter the check date in both from and to date fields.) Print the last page which includes the totals for all earnings and deductions. Go to the PAYROLL MANAGER in SuccessWare. Click on the second tab, EMPLOYEE DEDUCTIONS & ADDITIONAL EMPLOYER EXPENSES. Compare all deductions to Taxes Withheld and Deductions from Net Pay on the QuickBooks report. If the error is in QuickBooks Pro you will need to make the necessary corrections there. After correcting, you should create a new import file and re-import the reconciliation into SuccessWare. Before you re-import the reconciliation, click the Reset Ded. button at the bottom of the EMPLOYEE DEDUCTIONS & ADDITIONAL EMPLOYER EXPENSES page of the reconciliation. If, for some reason, the deduction amount is correct in QuickBooks but did not import correctly you can manually enter the correct amount in SuccessWare21. You should investigate the reason for the error and correct it for future payroll periods. Confirm that your memorized report is correct in QuickBooks and that your import filters are correct in SuccessWare. To Balance Expenses You should not expect a 0.00 variance for Expenses as you do for Earnings. You can expect a variance each payroll period. If you are not using Estimated Labor Burden, the expense variance will be equal to your total expenses. If you are using Estimated Labor Burden, the variance will be the difference between the estimated labor burden (calculated based on total earnings times a labor benefits multiplier) and your actual employer expenses. SuccessWare21, Inc. 67

68 Refer to the LBM (Labor Benefits Multiplier) Monitor to determine whether you should adjust the multiplier in payroll setup. The LBM Monitor will report the preset you entered in payroll setup and track the average based on prior periods actual expenses. In the example, when we set up payroll we asked the system to use a Warning Threshold of.10. That will allow us to post an estimated labor burden that is either 10% higher or lower than the preset without displaying a warning. If the current period s expenses cause the average to exceed that range, the system will display a message indicating that you may wish to edit setup to adjust your preset. General Ledger Effects of Posting Payroll Reconciliation When Payroll is reconciled, the amount credited to Accrued Payroll at the time of posting will be debited. Balancing entries will be made in the accounts defined for listed deductions and additional expenses as determined in Payroll setup. All posting during reconciliation use the Check Date as the posting date. Method 1 Posting payroll without an Estimated Labor Burden Original Posting Account/department Debit Credit 2101 Accrued Payroll 8, Cost of Sale Commissions 5, Salesperson Wages 3, , , Reconciliation Posting Account/department Debit Credit 2101 Accrued Payroll 8, Checking Payroll 6, FICA & Medicare Withheld Federal Withholding 1, FICA & Medicare Employer State Unemployment SuccessWare21, Inc.

69 Account/department Debit Credit 2207 Federal Unemployment (k) Contribution (k) Withheld FICA & Medicare Expense Payroll Taxes Other Group Medical Reimbursement (k) Expense , , Method 2 Post an Estimated Labor Burden to the default Estimated Labor Burden account as defined in General Ledger setup. (In our example-6510.) Original Posting Account/department Debit Credit 2101 Accrued Payroll 10, Cost of Sale Commissions 5, Salesperson Wages 3, Estimated Labor Burden 1, , , Reconciliation Posting Account/department Debit Credit 2101 Accrued Payroll 10, Checking Payroll 6, FICA & Medicare Withheld Federal Withholding 1, FICA & Medicare Employer State Unemployment Federal Unemployment (k) Contribution (k) Withheld FICA & Medicare Expense SuccessWare21, Inc. 69

70 Account/department Debit Credit Payroll Taxes Other Estimated Labor Burden 1, Group Medical Reimbursement (k) Expense , , The original posting applied the estimated labor burden to the default estimated labor burden account (6510) and the same department to which the earnings were posted. The system credits the estimated labor burden from the default estimated labor burden account (6510) and department 00 and posts the actual payroll expenses when it is reconciled. Method 3 With an Estimated Labor Burden as indicated by the timecard Pay Items (labor burden is added directly to each payroll item, including the item s department number.) Original Posting Account/department Debit Credit 2101 Accrued Payroll 10, Cost of Sale Commissions 6, Salesperson Wages 3, , , Reconciliation Posting Account/department Debit Credit 2101 Accrued Payroll 10, Checking Payroll 6, FICA & Medicare Withheld Federal Withholding 1, FICA & Medicare Employer State Unemployment Federal Unemployment (k) Contribution (k) Withheld SuccessWare21, Inc.

71 Account/department Debit Credit Burden Applied 1, FICA & Medicare Expense Payroll Taxes Other Group Medical Reimbursement (k) Expense , , The original posting applied the estimated labor burden to the same expense and department to which the earning was posted. Reconciling left that estimated amount in the expense and department but reversed the original estimated amount using a burden applied account. The net result is that the labor burden (albeit an estimate) will appear on financials with the labor. Since there is an offsetting entry to 4610 the bottom line remains the same. MULTIPLE LOCAL PAYROLL TAXES In some areas, multiple local payroll taxes are imposed based upon the location of the work being performed in combination with the employee s place of residence. Managing the withholding for these types of multiple taxing jurisdictions can be a complicated task. If the local governments in your area require this type of withholding and your payroll service or external payroll software cannot handle this task (note that QuickBooks is unable to calculate multiple taxes in this manner), then SuccessWare21 may be able to help. If your company does calculate local payroll taxes you will select Enable assisted local payroll tax withholding when setting up payroll. When payroll periods are prepared, the period s timecard entries, and miscellaneous wages are associated with their appropriate payroll tax code as set up at the time of preparation. This information is then used to generate reports of taxes owed to particular municipalities. The local payroll tax code will be assigned to entries as follows: Job related entries will use the tax code associated with the city/zip of the service location Non-job related entries will use the tax code setup on the employee s setup: EMPLOYER TAX CODE Residence Balance withholding will be based on the tax code associated with the city/zip of the employee s residence in employee setup: ADDRESS. SuccessWare21, Inc. 71

72 Withholding Local Taxes The withholding of all taxes, federal, state or local must take place within QuickBooks Pro. Since QuickBooks does not allow you to calculate multiple local taxes you will manually enter those deductions when you create checks. Run the Wage Source Report and select the Local Tax Withholding Analysis option as the Analysis Type. That report will list the totals you need to withhold for each of the multiple local taxing jurisdictions. You will use the information on this report to manually enter the tax deductions when you create paychecks. 72 SuccessWare21, Inc.

73 Reporting Local Tax Withholding You will also use the Wage Source Report with the Local Tax Withholding Analysis option for information you will need to complete tax forms. This option will analyze timecard entries and miscellaneous wages and summarize the total local tax withheld by: - Employee Or - By individual tax code Reconciling the Local Tax Withheld No special steps are required when reconciling payroll periods to reconcile the local tax liabilities. These liabilities will be set up to import with all other tax withholding liabilities. SPECIAL PAYROLL SITUATIONS Changing an Employee's Pay Type When changing an employee s pay type from one type to another, care should be taken to make sure the employee is prepared for the last pay period of the original pay type before changing the pay type in employee setup. When an employee is first prepared for a pay period, he/she is included in the period with the current pay type in the employee s setup. Once the employee is in a prepared period, changing employee setup has no effect on the employee s pay type for the prepared period. For instance, if changing an employee from hourly to salary: First prepare the employee s last hourly pay period (this is the last period chronologically in which the employee will be paid on an hourly basis). Then change the employee setup to have a salary pay type. When you prepare new periods for the employee, he/she will be inserted and prepared on a salary basis. If an employee has already been prepared as hourly for a payroll period, and he/she should have been salaried for that period: Reset the period (this will remove all employees from the period), Change the employee setup Prepare the period SuccessWare21, Inc. 73

74 The employee will be reinserted into the pay period with the pay type specified in the employee s setup. Note: As a general rule of thumb, be sure all employees are set up properly before creating/preparing new periods. Changing an Employee s Pay Period As with changing an employee s pay type, when changing an employee s pay period, make sure the last period of the original period type has been prepared before changing the employee setup. When periods are first prepared, employees are included in the period as per their employee setup. When first preparing a weekly period, all employees set up as weekly will be included in the period. Employees are inserted into a period with an Effective Date. This Effective Date is the date that the employee becomes a member of the period. Normally, this Effective Date will be the same as the Start Date of the period being prepared, but when changing an employee s pay period, the effective date will be different. For example, when changing an employee from a weekly to a monthly period: The employee s last weekly period ending 06/11/04 has been prepared, We change the employee setup to a monthly pay period. We then prepare the monthly pay period ending 06/25/04. The employee is inserted into the monthly period with an effective date of 6/12/04. Timecard entries and miscellaneous wages with dates between an employee s Effective Date and the periods End Date are included in wage summaries for the period. Changing the Ending Day for a Period Type If you need to change the ending day for a period, be sure to: 1. Create and prepare any period of the particular type before you change the ending day for that type in payroll setup. 2. If any periods have been created that should reflect the change for the particular type, they should be reset and deleted. 3. Change the ending day for the period type in payroll setup. The next time you create a period for the particular type, it will use the new ending day. Understand that the first payroll period with the new end date will be a shorter payroll period that usual. For instance: My weekly payroll period has been set up to end on Saturday. The last weekly payroll that I process prior to changing my end date is from 3/28/04 to 4/3/ SuccessWare21, Inc.

75 After processing that payroll period, I edit Payroll Setup to change the end day of my weekly payroll period to Thursday. The first weekly period that I create to end on Thursday will be a short payroll period, 4/4/04 to 4/8/04. Since my last payroll period ended on 4/3/04, this one must start on 4/4/04 even though it doesn t create a full week. Recording Tax Payments and Other Deductions When you post the payroll reconciliation, the system will post tax accruals and other deductions to the appropriate liability accounts based on your payroll setup. You will record the payments for the accruals through the Account Register or through Accounts Payable as they are disbursed. Setup In order to process accrued deductions or expenses correctly you must set up the following: Deductions and Employer Expenses that are accrued must contain the proper general ledger setup for accrual If the disbursement will be recorded as a Manual Payment in the account register you must set up a Check Distribution Code for each liability account used for accrual If the disbursement will be recorded as an accounts payable invoice and payment you must set up an Expense Type and Miscellaneous Pricebook Item for each liability account used for accrual Deductions and Employer Expenses To setup Deductions and Employer Expenses select the G/L tab in PAYROLL SETUP. Select Edit, then Deductions Etc... Right-click to select the appropriate edit, or insert option. Items that are deducted from employee paychecks as well as accrued as an employer expense will be marked as both a deduction and an expense. The system will require you to enter liability accounts for the employee deduction and the employer accrual. SuccessWare21, Inc. 75

76 Check Distribution Codes If you plan to record the payments for accruals as Miscellaneous Payments in the Account Register you must set up Check Distribution Codes to ensure that the payments post to the correct general ledger accounts. To add Check Distribution Codes: 1. Select Setup, then Reference Library from the Main Menu. 2. Select Accounting from the list of Volumes, then select Check Distribution Codes. 3. Press Ctrl+Enter, or right-click and select Modify mode, to open the table for editing. 4. Right-click to select the appropriate edit or insert options. Miscellaneous Pricebook Items and Expense Types If you plan to record payments for accruals as Accounts Payable Invoices and Payments you must set up Miscellaneous Items in the Pricebook to use for processing. Each Miscellaneous Item should contain an Expense Type that will post to the correct general ledger account for the accrual. 76 SuccessWare21, Inc.

77 To add Miscellaneous Pricebook Items: 1. Select Purchasing, then Pricebook from the Main Menu. 2. Click in the Overhead section of the pricebook on the left side of the screen. 3. Press Ins or right-click and select New overhead item. Note: If you get the option to add a New part item, or New labor item (anything other than overhead) you are not in the correct section of the pricebook. Be sure to click in the Overhead section first. If you use Ins to add the item and the screen heading reads New Item (Parts), or anything other than Overhead, cancel the entry and click in the Overhead section before you continue. 4. Use the drop down menus to select the Category and Group that you wish to use for the item. 5. Enter the Item number and description that you wish to use for the item and enter 0.00 as standard cost. 6. Use the down arrow to display a list of valid Expense Types. 7. While displaying the list, press Ctrl+Enter or right-click and select Modify mode. 8. Press Ins to add a new Expense Type and complete the fields to add the Item number, general ledger account, and description. 9. Press Enter to save the new Item, then press Esc to exit Modify mode. 10. Select the new Expense type from the drop-down list. 11. Select New to save the item and add another new item or, Save to save the item and return to the pricebook. SuccessWare21, Inc. 77