Payroll FD605PAAW6 i Payroll
AddonSoftware provides this manual as is, without warranty of any kind, either expressed or implied, including, but not limited to, the particular purpose. AddonSoftware reserves the right to make improvements and/or changes in the product(s) described in this manual at any time. Periodically, new versions of this manual may be made available. Any changes to the product will be incorporated in these new versions. SpeedShip, SpeedSearch, AddonSoftware,ADD+ON, ADD+ON Software, and ADD+ON Systems are trademarks of AddonSoftware. AddonSoftware 1999 All Rights Reserved Revised September, 1999 Payroll ii
Table of Contents Introduction Overview... 1-1 Required and Optional Application Modules... 1-2 Features and Benefits... 1-2 User-Defined Pay and Deductions Codes... 1-2 Flexible Employee Numbers... 1-2 User-Defined Taxes and Contributions... 1-2 Sick and Vacation Accrual... 1-2 Multi-State Taxes... 1-2 Simple Tax Tables... 1-2 Flexible Report Formats... 1-2 Personnel Information... 1-3 Multiple Job Titles/Pay Rates... 1-3 Pay Change History... 1-3 Detail Inquiry... 1-3 Detail Check Inquiry... 1-3 Employee Termination/Reactivation... 1-3 Employee Number Change... 1-3 Automatic Pay/Deductions... 1-3 Multiple Checks Per Employee... 1-3 Manual Check and Check Reversal... 1-4 Labor Distribution... 1-4 Automatic Calculation... 1-4 Pre-Check Report... 1-4 Check Printing... 1-4 Government Reporting... 1-4 Departmental Reporting... 1-4 Union Reporting... 1-4 Multi-Company Capability... 1-4 Reports and Registers... 1-5 Payroll System Flow... 1-6 A Word to the User... 1-8 Software Registration Form... 1-9 Payroll Module... 1-9 AddonSoftware Product Suggestion/ Problem Form... 1-11 Installation Overview... 2-1 Gathering the Information... 2-2 Payroll Installation Checklist... 2-2 Check Forms... 2-3 Adhesive Labels... 2-3 W-2 Forms... 2-3 Table of Contents i
Payroll Parameters... 2-3 Employee Mask... 2-3 Regular Pay Code... 2-4 Maximum Totals... 2-4 Zip Code Size... 2-4 Multiple Titles... 2-4 Precision... 2-4 Dept Size... 2-4 Current Period... 2-5 Current Year... 2-5 Amount Mask... 2-5 Amount Mask Example... 2-5 Unit Mask... 2-5 Unit Mask Example... 2-6 Rate Mask... 2-6 Rate Mask Example... 2-6 Labels Up... 2-6 Label Length... 2-6 Label Width... 2-6 Bank Reconciliation... 2-6 Union History... 2-6 Accrue Taxes at Pay Period End... 2-7 Guidelines for Defining Numeric Masks... 2-7 Total Codes... 2-8 Report Codes... 2-8 Pay Codes... 2-9 Contribution Codes... 2-10 Deduction Codes... 2-10 Tax Codes... 2-10 Tax Tables... 2-10 Title ID Codes... 2-11 Union Codes... 2-11 Department ID Codes... 2-11 Report Form Parameters... 2-12 Payroll Name... 2-12 Address Information... 2-12 Federal ID... 2-12 State ID... 2-12 941 Code... 2-12 State Code... 2-12 Non-Taxable... 2-12 Federal Tax... 2-13 State Tax... 2-13 Defining Payroll Codes... 2-13 Employee Information... 2-13 Labor Distribution Information... 2-13 Entering the Information... 2-13 Installation/Training Schedule... 2-20 Payroll Parameters Form System... 2-21 Payroll Parameters Form Reports... 2-22 ii Payroll
Total Codes Form... 2-23 Report Codes Form... 2-24 Pay Codes Form... 2-28 Contribution Codes Form... 2-29 Deduction Codes Form... 2-30 Tax Codes Form... 2-31 Tax Table ID Form... 2-32 Title ID Codes Form... 2-33 Union Codes Form... 2-34 Department Codes Form... 2-35 Department Codes Form Contributions... 2-36 Employee Information Form Personal... 2-37 Employee Information Form Pay Rate Maintenance... 2-39 Employee Information Form Pay Codes & Deduction Codes... 2-40 Employee Information Form Tax Codes & Contribution Codes... 2-41 Employee Information Form Earnings Conversion... 2-42 Employee Information Form Deductions Conversion... 2-43 Employee Information Form Tax Conversion... 2-44 Employee Information Form Contribution Conversion... 2-45 Labor Distribution Form... 2-46 Flow of Processing Overview... 3-1 Flow of Daily Processing... 3-1 Entering Earnings Information... 3-2 Payroll Processing... 3-3 Processing Time Cards... 3-3 Defining Payroll Periods... 3-3 Entering Payroll Information... 3-4 Audit Reports and Calculating Payroll... 3-5 Printing Checks... 3-7 Running the Payroll Check Register and Update... 3-8 Payroll Periodic Processing... 3-9 Processing Month-End... 3-9 Quarterly Processing... 3-10 Year-End Processing... 3-12 Payroll Maintenance... 3-14 Employee Masterfile Maintenance... 3-14 Payroll Tax Table Maintenance... 3-14 Payroll System Code Maintenance... 3-14 Table of Contents iii
Processing Checklists... 3-15 Daily Processing... 3-15 Payroll Processing... 3-15 Monthly Processing... 3-15 Quarterly Processing... 3-15 Year-End Processing... 3-16 General Processing... 3-16 Operations Overview... 4-1 About the Payroll Tasks... 4-2 Payroll... 4-3 Function... 4-3 Payroll Daily Processing Menu... 4-5 Function... 4-5 About the Payroll Daily Processing Tasks... 4-6 Payroll Period Definition... 4-7 Function... 4-7 About the Fields... 4-8 Payroll Entry... 4-10 Function... 4-10 About the Fields... 4-11 Earnings... 4-14 Deductions... 4-18 Taxes... 4-21 Contributions... 4-24 Accruals... 4-26 Payroll Earnings Entry Report... 4-28 Function... 4-28 About the Fields... 4-29 Printing... 4-29 Payroll Earnings Register... 4-30 Function... 4-30 About the Fields... 4-31 Printing... 4-31 Payroll Distribution Report... 4-32 Function... 4-32 About the Fields... 4-33 Printing... 4-33 Payroll Calculation... 4-34 Function... 4-34 About the Fields... 4-35 Updating... 4-35 Payroll Deduction Report... 4-36 Function... 4-36 About the Fields... 4-37 Printing... 4-37 Payroll Tax Report... 4-38 iv Payroll
Function... 4-38 About the Fields... 4-39 Printing... 4-39 Payroll Contribution Report... 4-40 Function... 4-40 About the Fields... 4-41 Printing... 4-41 Payroll Accrual Report... 4-42 Function... 4-42 About the Fields... 4-43 Printing... 4-43 Payroll Exception Report... 4-44 Function... 4-44 About the Fields... 4-45 Printing... 4-45 Payroll Detail Report... 4-46 Function... 4-46 About the Fields... 4-47 Printing... 4-47 Payroll GL Distribution Report... 4-48 Function... 4-48 About the Fields... 4-49 Sorting... 4-49 Printing... 4-49 Payroll Pre-Check Report... 4-50 Function... 4-50 Printing... 4-51 Payroll Check Printing... 4-52 Function... 4-52 About the Fields... 4-53 Printing... 4-53 Payroll Check Register... 4-55 Function... 4-55 Printing... 4-56 Updating... 4-56 Payroll Daily Entry... 4-57 Function... 4-57 About the Payroll Daily Entry Tasks... 4-58 Payroll Daily Input Entry... 4-59 Function... 4-59 About the Fields... 4-60 Payroll Daily Entry Register... 4-63 Function... 4-63 Printing... 4-64 Updating... 4-64 Payroll Periodic Processing Menu... 4-65 Function... 4-65 About the Payroll Periodic Processing Tasks... 4-66 Payroll Distribution History Report... 4-67 Function... 4-67 Table of Contents v
About the Fields... 4-68 Printing... 4-68 Monthly Check Report... 4-69 Function... 4-69 About the Fields... 4-70 Printing... 4-70 Month End Update... 4-71 Function... 4-71 About the Fields... 4-72 Updating... 4-72 Earnings Status Report... 4-73 Function... 4-73 About the Fields... 4-74 Printing... 4-74 Deduction Status Report... 4-75 Function... 4-75 About the Fields... 4-76 Printing... 4-76 Tax Status Report... 4-77 Function... 4-77 About the Fields... 4-78 Printing... 4-78 Contribution Status Report... 4-79 Function... 4-79 About the Fields... 4-80 Printing... 4-80 Accrual Status Report... 4-81 Function... 4-81 About the Fields... 4-82 Printing... 4-82 Payroll Check History Report... 4-83 Function... 4-83 About the Fields... 4-84 Printing... 4-84 Earnings History Report... 4-85 Function... 4-85 About the Fields... 4-86 Printing... 4-86 Union History Report... 4-87 Function... 4-87 About the Fields... 4-88 Printing.... 4-88 Union History Purge... 4-89 Function... 4-89 About the Fields... 4-90 Payroll Date List... 4-91 Function... 4-91 About the Fields... 4-92 Sorting... 4-93 Printing.... 4-93 vi Payroll
W-2 Processing Menu... 4-94 Function... 4-94 About the W-2 Processing Menu Tasks... 4-95 W-2 Configuration... 4-95 W-2 Configuration Hard Copy... 4-99 Printing.... 4-99 Copy/Remove W-2 Configuration... 4-100 Archive Year End Totals... 4-102 W-2 Calculation... 4-104 W-2 Printing... 4-106 Printing.... 4-108 Magnetic Media Calculation... 4-109 Technical Note... 4-110 Magnetic Media Audit Report... 4-111 Printing.... 4-111 Magnetic Media Creation... 4-112 Year End Update... 4-113 Function... 4-113 About the Fields... 4-114 Updating.... 4-114 Payroll Maintenance... 4-115 Function... 4-115 About the Payroll Maintenance Menu Tasks... 4-116 Employee Masterfile Maintenance... 4-117 Function... 4-117 About the Fields... 4-118 About the Employee Masterfile Maintenance Options... 4-118 Employee Number... 4-119 Employee Information... 4-119 Pay Rate Maintenance... 4-125 Pay Code Maintenance... 4-128 Deduction Code Maintenance... 4-131 Tax Code Maintenance... 4-134 Contribution Code Maintenance... 4-137 Payroll Check History Inquiry... 4-140 Union History Inquiry... 4-141 Terminate/Reactivate Employee... 4-142 Employee Number Change... 4-144 Create Pay/Deduct/Tax/Contrib Codes... 4-145 Create Union Pay/Deduct/Contrib Codes... 4-146 Employee Comments... 4-147 Hard Copy Printing... 4-148 Employee Maintenance Listing... 4-149 Function... 4-149 About the Fields... 4-150 Printing... 4-150 Employee Master List... 4-151 Function... 4-151 About the Fields... 4-152 Printing... 4-152 Table of Contents vii
Employee Cross Reference Report... 4-153 Function... 4-153 About the Fields... 4-154 Printing... 4-154 Employee Labels... 4-155 Function... 4-155 About the Fields... 4-156 Labels Per Record Example... 4-156 Printing... 4-157 Contribution Code Maintenance... 4-158 Function... 4-158 About the Fields... 4-159 Department Maintenance... 4-163 Function... 4-163 About the Fields... 4-164 Description Example... 4-164 About the Department Maintenance Options... 4-166 Description Maintenance... 4-166 Pay Code Distribution... 4-167 Tax Code Distribution... 4-168 Contribution Distribution... 4-170 Deduction Code Maintenance... 4-172 Function... 4-172 About the Fields... 4-173 Limit... 4-175 Balance... 4-175 Labor Distribution Maintenance... 4-177 Function... 4-177 About the Fields... 4-178 Pay Code Maintenance... 4-180 Function... 4-180 About the Fields... 4-181 Standard Units Example... 4-183 Accrual Rate Example... 4-184 Special Pay Example... 4-184 Report Code Maintenance... 4-186 Function... 4-186 About the Fields... 4-187 Report Codes... 4-188 Tax Code Maintenance... 4-190 Function... 4-190 About the Fields... 4-191 Tax Table Maintenance... 4-196 Function... 4-196 About the Fields... 4-197 Table ID Example... 4-197 Title Code Maintenance... 4-200 Function... 4-200 About the Fields... 4-201 Total Code Maintenance... 4-203 viii Payroll
Function... 4-203 About the Fields... 4-204 Union Code Maintenance... 4-206 Function... 4-206 About the Fields... 4-207 About the Union Code Maintenance Options... 4-208 Heading Maintenance... 4-208 Pay Code Assignments... 4-209 Deduction Code Assignments... 4-210 Contribution Codes... 4-211 Parameter Maintenance... 4-213 Function... 4-213 About the Parameter Maintenance Options... 4-214 System Parameters... 4-214 Precision Example... 4-216 Report Parameters... 4-218 Payroll Utilities... 4-221 Function... 4-221 About the Payroll Utilities Tasks... 4-222 Payroll Installation Menu... 4-222 Employee Masterfile Conversion Entry... 4-223 Earnings Conversion... 4-223 Deduction Conversion... 4-224 Tax Conversion... 4-226 Contribution Conversion... 4-227 Employee Cross Reference Rebuild... 4-229 Updating... 4-229 Purge Check Work File... 4-230 Update Tax Tables For The New Year... 4-231 Appendix A Registers, Reports, & Listings... 5-1 Appendix B Entering Special Payrolls... 6-1 Appendix C Payroll Total Codes... 7-1 Appendix D Multi-State Payroll... 8-1 Appendix E Table of Contents ix
Taxable Tip Reporting... 9-1 Appendix F Deferred Income Plan 401(K)... 10-1 Appendix G Payroll Postings... 11-1 Appendix H Payroll Year End Checklist... 12-1 Index A-Z... 13-1 x Payroll
Introduction Overview Thank you for selecting the AddonSoftware Payroll module. This manual will introduce you to the capabilities of the software, help you install and operate the software with the guidance of your dealer, provide complete processing instructions, and serve as a reference guide for all menu tasks and data entry fields. The manual is divided into five main sections. Introduction This section contains an overview of the Payroll module features, a list of standard reports and registers, and a flow chart of system processing. A software registration card is also included to fill out and return directly to AddonSoftware. Installation This section contains information to assist you and your dealer with the installation of the software. Instructions are provided for gathering the required information, making decisions for setting module parameters, and entering the information you have gathered. Data collection forms are provided at the end of the section for use in gathering information and as a record of the initial module installation. Flow of Processing This section consists of step-by-step procedures for daily, monthly, and quarterly processing within the module. A processing checklist is also provided for frequent reference when operating the Payroll module. Month-end and year-end lists are also available on the web site www.addonsoftware.com. Contact your dealer for more information. Operations This section is comprised of instructions for operating each Payroll task. Each menu task is explained in the order in which it appears on the standard software, with descriptions of each field and operator prompt. Appendixes The appendixes in the Payroll manual display sample copies of the reports and registers generated by the module, provide additional information regarding special payroll entries such as bonuses or vacation checks, offer a broader explanation of payroll codes, and show how to enter taxable tip income, etc. The AddonSoftware Payroll module greatly simplifies the task of payroll processing, ensuring accurate earning, deduction, tax, and accrual calculations, and providing comprehensive report and inquiry features. Throughout this manual, it is assumed the reader has a working knowledge of accounting or will have the advice of an accounting professional for the installation and operation of the Payroll module. It is very important that each of the installation steps be implemented carefully and thoroughly so that the Payroll module produces the expected results and posts correctly to the General Ledger module (if installed). Required and Optional Application Modules Introduction 1-1
The AddonSoftware Administrator module provides a listing of the systems that must be in place to operate each new AddonSoftware software module. The AddonSoftware Administrator module is provided for easy referencing with your first-time purchase of any AddonSoftware. If the AddonSoftware Shop Floor Control and General Ledger modules are installed, they may be integrated with the AddonSoftware Payroll module. Whenever several different AddonSoftware modules are to be used, your dealer will help determine the best installation sequence. Features and Benefits The following is a list of standard payroll features and a description of their function within the Payroll module. User-Defined Pay and Deduction Codes As many different types of earning and deduction codes as needed may be defined. Standard codes applicable to all employees may be designated for automatic assignment when adding a new employee to the payroll. Flexible Employee Numbers Employee numbers are variable from 1 to 9 alpha-numeric digits and may be segmented as needed to designate divisions, departments, etc. User-Defined Taxes and Contributions Employee tax codes, employer tax codes, employer union contributions, and others may be created in response to changes in federal, state, or local regulations. Sick and Vacation Accrual Any type of earnings may be used as a basis to accrue sick leave, vacation, or other compensatory time or dollar earnings. Simply designate the basis to be used when establishing the earning codes. Time or dollars are automatically accrued each specified pay period. Multi-State Taxes Each employee may have taxes and employer contributions for multiple states, counties, and/or cities. Multiple states may be processed in the same payroll run. Simple Tax Tables Tax tables are entered just as they appear in government publications. Since the Payroll module uses the Exact Calculation Method, only an annual table needs be entered for each tax category. Flexible Report Formats Earning, deduction, tax, and contribution reports may be formatted for specific needs. Report headings may be customized to reflect industry-specific terminology or special categories. Personnel Information Emergency contact information; hire, review, anniversary, and termination dates; pension participation and other key personnel information is stored for each employee. The 1-2 Payroll
information may be printed on a report or viewed on the screen in the Employee Masterfile Maintenance task. Multiple Job Titles/Pay Rates Each employee may be assigned pay rates for up to five different job titles. This allows processing of an employee who may routinely work under different titles during one pay period. Earnings are calculated based on the specific rates for each job title and can be combined into one earnings line on the employee s paycheck. Pay Change History A history of the last five pay rate changes, and increase or decrease in the number of hours worked, may be kept for each employee. Status Inquiry Inquiry into the status of each pay type, deduction type, tax, or employer contribution for an employee may be done. Information is retained on a monthly, quarterly, and year-to-date basis. Summarized Check Inquiry All checks issued to an employee for the current year may be displayed. The inquiry display includes all computer checks, manual checks, and reversed checks issued to date. Earnings, deductions, taxes, and net check amount are displayed in the same summarized format as the Payroll Check Register. Employee Termination/Reactivation Employees may be terminated or reactivated at any time. Protection devices automatically ensure that terminated employees cannot be issued a paycheck and that all employee information is retained until year-end for tax reporting purposes. Employee Number Change An employee number may be changed (e.g. for an employee who has transferred to a different department) prior to entering information for the current payroll period. All related payroll history information for the employee will be automatically changed. New entries will be posted to the correct general ledger accounts for the new department. Automatic Pay/Deductions Earnings and deductions for salaried and hourly employees working a standard number of hours per pay period may be automatically generated each payroll period. This feature results in a substantial savings of entry time and may eliminate data entry requirements for these employees other than the exceptional situation. Multiple Checks Per Employee From 1 to 99 separate checks may be issued per employee per pay period. This feature is useful when issuing a regular, vacation, bonus, or commission check to the same employee during the same pay period. Manual Check and Check Reversal Multiple Checks Per Employee Manual (handwritten) checks may be recorded or reversal of a computer/manual check may be entered. When recording manual checks that have not yet been written and distributed, the Introduction 1-3
automatic earnings and tax calculation features of the system may be used to assist with check preparation. Labor Distribution All earnings are distributed by department and job title. A labor distribution report may be printed itemizing labor expense by department and title prior to printing checks. A monthly, quarterly, and yearly history is available. Automatic Calculation Based on earnings entered and voluntary deductions defined, all taxes, employer contributions, and accruals are automatically calculated for each employee. All tax, contribution, or accrual figures may be overridden after the calculation is complete. Pre-Check Report In addition to other payroll audit reports, a report showing the earnings, deductions, and net pay for each employee may be printed prior to printing checks. This allows a last-minute look at the figures that will be printed on employee checks. Check Printing The module produces printed checks for all active employees within the specified pay period. Detailed earnings, deductions, and taxes for the current period and year-to-date are printed on the check stub. In the event of a paper jam or printer malfunction, reprinting may begin with a specific employee number. Government Reporting Reports are available for earnings, deductions, taxes, employer contributions, accruals, and other employee status information. W-2 information may be printed, on demand, at any time throughout the year. Departmental Reporting By using the appropriate department number as part of each employee number, payroll information by department may be captured as each payroll is processed. This allows printing of a wide variety of reports, sub-totaled by department. Union Reporting Any number of union codes and related information may be established for reporting earnings, deductions, and employer contributions to employee unions. This allows printing of a monthly union report detailing weekly employee earnings, hours worked, deductions, taxes, and employer contributions, as well as the percentages used for calculations. Multi-Company Capability This allows processing for more than one company, each with its own separate set of payroll parameters, employees, period processing, and reporting. 1-4 Payroll
Reports and Registers The Payroll module also includes a full range of reports and registers, providing up-to-date information concerning the status of each employee s earnings, deductions, taxes, accruals, employer contributions, and data recently entered. The standard reports and registers are: Employee Masterfile Listing Payroll Check Register Employee Master List Payroll Daily Entry Register Employee Cross Reference Report Payroll Distribution Report Payroll Earnings Entry Report Payroll Distribution History Report Payroll Earnings Register Payroll G/L Distribution Report Payroll Deduction Report Earnings Status Report Employee Labels Earnings History Report Payroll Tax Report Deduction Status Report Payroll Contribution Report Tax Status Report Payroll Accrual Report Contribution Status Report Payroll Exception Report Accrual Status Report Payroll Detail Report Payroll Check History Report Monthly Check Report Union History Report Payroll Pre-Check Report Payroll Date List Payroll Check Printing W-2 Printing Magnetic Media Audit Report W-2 Configuration Hard Copy Each register and report is described in more detail in the Operations section of this manual and sample copies are shown in Appendix A. In addition to the standard features, your dealer can customize the software to tailor reports to your exact needs. Introduction 1-5
Payroll System Flow This chart shows the flow of data through the AddonSoftware Payroll module. A detailed description of how the system operates is provided in the Flow of Processing section and the Operations section of this manual. Payroll Period Definition Payroll Daily Processing Payroll Entry Payroll Daily Entry Daily Entry Register Contribution Maintenance Department Maintenance Payroll Calculation Earnings Entry Report Earnings Register Deduction Code Maintenance Labor Distribution Maintenance Distribution Report Deduction Report Employee Masterfile Maintenance Pay Code Maintenance Tax Report Contribution Report Accrual Report Exception Report Detail Report GL Distribution Report Pre-Check Report Check Printing Check Register Employee Labels Payroll Maintenance Employee Maintenance Listing Employee Master List Employee Cross Reference Hard Copy Printing Report Code Maintenance Tax Code Maintenance Tax Table Maintenance Title Code Maintenance Total Code Maintenance Union Code Maintenance Parameter Maintenance 1-6 Payroll
Payroll System Flow, con't. W-2 Configuration Month End Update Hard Copy Printing Copy/Remove W-2 Configuration Archive Year End Totals Union History Purge W-2 Processing Year End Update Payroll Periodic Processing Distribution History Report Monthly Check Report Earnings Status Report W-2 Calculation Deduction Status Report W-2 Printing Tax Status Report Contribution Status Report Accrual Status Report Magnetic Media Calculation Check History Report Earnings History Report Magnetic Media Audit Report Union History Report Payroll Date List Magnetic Media Creation Introduction 1-7
A Word to the User AddonSoftware wants to keep you updated! Periodic enhancements are made to the Payroll module and we want you to know about them. To register your software, fill out the Software Registration Form and send it to AddonSoftware at the registration address shown below. We are also very interested in keeping our documentation as up-to-date and relevant as possible. If procedures are missing or not detailed enough for you, they may also be lacking for someone else. Please send us a note describing the problem or question to the documentation address shown below. A Product Suggestion Form is also provided for you to document any suggestions on how we can enhance our software to make it as relevant to you as possible. We value your suggestions and will welcome them gladly. For registration, documentation changes or product suggestions: AddonSoftware 15050 SW Koll Parkway, Suite C Beaverton, OR 07006 FAX: 503-643-1386 Attn: Product Development 1-8 Payroll
Software Registration Form Payroll Module To ensure you receive any available updates to your AddonSoftware, as well as other important information, register your software by filling out this form and returning it to the address on the reverse side. Your dealer can help you complete the form. Your AddonSoftware Dealer s Name Your Company Name Address City State Zip Telephone ( ) Your name Title Date Please describe your primary business Number of Employees Computer Type and Model Other software used Comments Introduction 1-9
AddonSoftware Sales Services 15050 SW Koll Parkway, Suite C Beaverton, OR 97006 Remove from binder, fill out other side, fold and mail to address above. 1-10 Payroll
Product Suggestion/ Problem Form Submitted by: Company: City, State: Phone: FAX: Date: Version: Application: Menu/Program: OS and Language: Suggestion/ Problem NOTE: Always document any error number and error message with a screen-print where possible. Attach any supporting documentation or examples and a description of how it occurred. Introduction 1-11
AddonSoftware Product Development 15050 SW Koll Parkway, Suite C Beaverton, OR 97006 Remove from binder, fill out other side, fold and mail to address above. 1-12 Payroll
Installation Overview The Installation section provides the information required to successfully convert an existing payroll system to an AddonSoftware payroll system. Careful planning of the installation will enhance the total benefits of the new Payroll module. Generally, the installation of the software and the transfer of payroll information should be managed and directed by your AddonSoftware dealer. The installation process involves five major steps. Step One Prepare the facility before the physical installation of the computer equipment, and order any necessary forms and supplies. Some of these items are explained in the AddonSoftware Administrator manual ( Getting Started with AddonSoftware ) and will make the work that follows easier. Step Two Collect the information required for operation of the Payroll module. Step Three Load the Payroll tasks onto the computer by following the Media Installation Instructions. Step Four Following the Payroll Installation Menu, enter the codes necessary for payroll processing. This menu is part of the Payroll Utilities Menu accessed by your dealer or someone with a security level of 9. Step Five Using the Employee Masterfile Conversion Entry on the Payroll Installation Menu, enter each employee s information, all appropriate codes and all existing balances for all codes into the module in preparation for live operation. NOTE: If the Payroll module is to process more than one company, steps two, four, and five must be performed for each company. Read the Installation section before starting any work, and consult with the person managing the installation if there is any question about the proper choice for any of the parameter or code settings. If the installation process appears to be a lot of work, remember it is done only once. After the payroll is converted to the new computer system, the management of payroll processing will require much less work. The installation checklists in this section are important. Use them to ensure all the steps required for a successful installation are covered. Installation 2-1
Gathering the Information Much of the information required to install the Payroll module can be gathered before the installation. This includes the parameter settings that form the foundation of how the module will function, employee information, and earnings, tax, deduction, contribution, etc., codes. All information should first be collected and the required codes defined before attempting to enter anything into the module. Payroll Installation Checklist Check Forms Adhesive Labels W-2 Forms Parameter Information Employee Numbers and Names Contribution Codes Department Codes Deduction Codes Labor Distribution Information Pay Codes Report Codes Tax Codes Title Codes Union Codes Total Codes Tax Tables 2-2 Payroll
Check Forms A standard check form is available from companies specializing in check printing. If a custom check form is required (e.g., to use a special size form, print additional information, etc.), your AddonSoftware dealer can be of assistance. Adhesive Labels The Payroll module can print employee labels for use in preparing time cards and employee mailings. To use this feature, it is necessary to order adhesive labels. Adhesive labels may be ordered 1, 2, 3, or 4 across on a sheet. Spacing for a standard label is 1 inch between the labels vertically, and 3.6 inches horizontally. Since the Payroll module parameters allow definition of print spacing, it may be possible to use existing labels. Consult your AddonSoftware dealer to find out if existing labels are suitable. W-2 Forms The standard W-2 form must be IRS approved. Consult your dealer for the currently approved W- 2 form. If required by the government or by terminated employees to prepare W-2 forms before the payroll year-end, these forms should be ordered and available for use before installing the Payroll module. Payroll Parameters The parameters allow the Payroll module to be tailored to the specific requirements of the business. Each parameter must be set to best match the manner of operation for the company. This requires a careful study of each option. Some options presented here may be changed after the payroll is in operation. However, be sure to check with your AddonSoftware dealer if it appears a change is needed after the module is in use. Use the Payroll Parameters form at the end of this section to collect the necessary information. This form will provide a record of the initial module definition and should be retained for future reference. NOTE: Refer to the Payroll Parameter Maintenance task in the Operations section of this manual for further information concerning the parameters. Consult your AddonSoftware dealer and use the forms at the end of this section when defining the payroll codes. Employee Mask The employee number structure is defined by a alpha-numeric mask made up of the characters # and -, allowing the definition of multiple segments in the employee number. Any numbering system may be used, depending on the reporting requirements. However, if the Payroll module is to be departmentalized, the department number must be placed in the first segment of the employee number to result in subtotals by department. Installation 2-3
A numeric employee number, such as the employee s Social Security Number, would use the mask ###-##-####. Decide upon the mask for the employee number and write it in the blank provided on the form. The mask may not exceed nine characters (dashes do not count as one of the nine characters). For example, the mask ##-##### may be an alpha-numeric representation of a two digit department number and a five digit employee number. This will provide department subtotals on the Payroll Earnings, Distribution, Deduction, Tax, Contribution, Accrual, and Exception Reports, as well as the Payroll Pre-Check Report and Check Register and the periodic Payroll Earnings History and Distribution History Reports. Regular Pay Code The AddonSoftware Payroll module provides for the automatic calculation of earnings for salaried employees and employees who regularly work a fixed number of hours (e.g., 40 hours per week). This parameter designates the pay code to be used as regular pay. When the Automatic Processing field is set to Y in the Payroll Period Definition task, earnings of employees are calculated automatically. Maximum Totals This parameter defines the maximum number of pay, deduction, and tax codes that can be printed on each paycheck. For the standard check form printed by the AddonSoftware Payroll module, the maximum should be set for 10 lines. If non-standard checks allowing more than 10 totals are used, a program modification may be necessary (consult your AddonSoftware dealer). Zip Code Size This specifies the maximum size for employee zip codes. Enter 5 for a standard zip code or 9 for a zip code with a block suffix. If required, this parameter may be changed from a 5-digit code to a 9-digit code later. Changing from a 9-digit zip code to a 5-digit code is not recommended. Multiple Titles An employee may have more than one job title code, at different pay rates. Setting this parameter to Y allows total earnings for separate titles/pay rates to be automatically calculated during Payroll Entry. It will also cause earnings to be itemized by job title for each employee on the Payroll Distribution Report, the Labor Distribution Report and the Payroll Distribution History Report. If multiple pay rates are not used for individual employees, this parameter should be set to N. Precision Precision refers to the calculated number of places available to the right of the decimal point. The precision setting should correspond to the number of decimal places in the Rate mask. Dept Size The department size parameter determines how subtotals are calculated and printed on payroll reports showing labor expense by department. Ordinarily, departments in payroll would correspond to overall departmentalization in the general ledger. Consequently, if the general 2-4 Payroll
ledger account number mask (as defined in the General Ledger module) is ####-##, with the last two digits representing the department number, the Dept Size would be 2. When the first two digits of the employee number (representing the department) change during report printing, a department subtotal would be printed on the Payroll Earnings, Distribution, Deduction, Tax, Contribution, Accrual and Exception Reports, the Pre-Check Report and Check Register, and the Earnings History and Distribution History Reports. NOTE: In a departmentalized payroll, the department number segment must be first in the employee number mask. Current Period This parameter identifies the fiscal accounting period when the payroll module is currently operating. The current period does not necessarily correspond to the current calendar year period. For example, if the fiscal year runs from June 1 through May 31, and the new payroll begins processing in January, the Current Period for January would be 8. This number is automatically incremented when the Payroll Month-End Update is performed. All payroll data is stored and displayed in calendar quarters. Current Year This parameter identifies the calendar year when the current fiscal year began. Using the example above, if the fiscal year runs from June 1, 1998 through May 31, 1999 and payroll becomes operational in January of 1999, the current fiscal year would be 1998. If the fiscal year corresponds to the standard calendar year, the current year would be entered. Amount Mask The amount mask defines the largest dollar amount (including totals) used in the Payroll module. When defining the amount mask, remember reports containing many columns of earnings, deduction, and/or tax totals (e.g., the Payroll Distribution reports and Quarterly Tax reports) require enough blank spaces between columns to prevent dollar amounts from running together. Before establishing the length of the amount mask, review the sample reports in Appendix A to ensure the mask does not contain too many character spaces to fit the report format requirements. This consideration applies also to the Unit Mask field. Amount Mask Example A mask of #,###,###.00- will allow an amount up to $9,999,999.99. Negative amounts will appear on reports and screen displays with a - to the right of the amount (i.e., 500.00-). Refer to Guidelines for Defining Numeric Masks in this section. Unit Mask The unit mask defines the largest unit (including totals) used in the Payroll module. Units will usually be hours. Unit Mask Example Installation 2-5
A mask of ###,###.#- will allow 999,999.9 units. Negative units will appear with a - (minus sign) to the right of the unit total (i.e., 1,875.8-). NOTE: When using this mask, 12.75 hours will round up to display as 12.8 hours. Rate Mask The rate mask defines the largest salaried or hourly amount used in the Payroll module. The number of decimal places in the mask should agree with the precision defined for the payroll (Refer to Precision, previously). Rate Mask Example A mask of ###.000- will allow a maximum salary per pay period of 999.999. If the precision to be used is defined as 3, this mask would agree with the amount precision and allow pay rates to be established using up to three decimal places (i.e., 5.785 per hour). Negative rates (rarely used) would appear with a - (minus sign) to the right of the amount (i.e., 5.785-). Labels Up This is the number of adhesive labels (used for employee mailings and internal records) across a page on continuous label sheets. One, two, three, or four labels across the page may be specified, depending on the width of the individual labels (Refer to Label Width). Label Length This is the number of print lines between the top of the first label and the top of the next label. The standard is six lines. Label Width This is the number of characters between the start of the first label across and the start of the second label across. Thirty-six characters in width is standard for 1, 2, and 3 labels up; thirty characters is standard for 4 labels up. Bank Reconciliation If the Accounts Payable module is interfaced to your system, this parameter allows the Check Register Update process to update payroll check net totals to that module s bank reconciliation system, automatically reconciling payroll checks with the monthly bank statements. Select Y if the bank reconciliation module is installed and the update is to be performed. Select N if the module is not installed or if the update is not to be performed. Union History Setting this parameter to Y allows earnings, deduction, and contribution codes to be established and set by union code, for each union where employee earnings information is reported. This information is collected and stored as each payroll update is performed and is used to print the Union History Report. The Union History Report itemizes employee hours worked and earnings, deductions, and employer contributions by week, based on a specified week ending date. If the employees do not belong to unions, or if this information does not need to be reported to the employee unions, this parameter should be set to N. Accrue Taxes at Pay Period End 2-6 Payroll
Enter a Y if taxes are to be accrued at the end of each pay period. Entering an 'N' will accrue taxes as of the check date for each payroll. For more information about tax accrual, refer to Appendix G. Guidelines for Defining Numeric Masks Numeric masks are used to define the format and size of the dollar and unit amounts displayed or printed by the software. For example, a mask of #,###,###.00- will allow an amount from - 9,999,999.99 to 9,999,999.99. Study the following guidelines on how numeric masks control the printing and displaying of data before defining masks in the Payroll module parameters. Masks Format the Printing Only It is important to know the amount mask only controls the printed and displayed format of a numeric amount, not the form of the input amount. This means a mask without a format element for negative numbers (i.e., to allow check reversal entries), will still accept a negative number and will display and print without a negative indicator (if the same mask is used.) If this is allowed to occur, the dollar and unit extensions on reports and screens may appear incorrect. Examples: Mask Amount Display #,##0.00-12.375 12.38 #,##0.00-0- 0.00 #,###.## - -0- (nothing) #,###.00-12.375 12.38 Mask Size While the Payroll module will handle numbers with almost no size limit, the reports and screen displays may become crowded and hard to read if the masks are set for numbers above 99,999,999.99. Report print positions and screen displays adjust automatically to the size of the mask. Reports containing many columns of earnings, unit, deduction, and tax totals (i.e., the Payroll distribution reports and quarterly tax reports) require at least enough blank spaces between columns to prevent amounts from running together. The practical limit for mask size is ##,###,###.00, allowing up to 99 million. (Remember to include the minus sign (-) in all numeric masks.) Before establishing the length of the payroll masks, it is best to review the sample reports in the Appendix section to ensure the mask to be used does not contain too many character spaces to fit the report format requirements. Total Codes Total codes are used to accumulate earnings, deductions, taxes, and contributions in the Payroll module. Often total codes are also used to determine the basis for deductions, taxes, and Installation 2-7
contributions. For example, set up a total code for an accrual based on a percentage of employee hours worked. Determine how many different total codes are necessary for processing the payroll and enter them on the Total Codes form. NOTE: Refer to the Total Code Maintenance task in the Operations section and to Appendix C, Payroll Total Codes. Report Codes Report codes, defined in various maintenance tasks found on the Payroll Maintenance Menu, are used to identify the headings and column locations when printing information on payroll reports. Separate heading descriptions and column positions are established for earnings, deductions, taxes, contributions, accruals, and exception earnings for printing check registers, payroll checks, the Check History Report and the Payroll Check History Inquiry available through the Employee Masterfile Maintenance task. A separate column (01-07) and heading must be defined for each type of earnings, deduction, employee tax, employer contribution, accrual, and exception earnings in the payroll module to be printed on the following reports: Report Type A Earnings (Regular, Overtime, Vacation, etc.) Payroll Earnings Register Payroll Earnings History Report Payroll Distribution Report Payroll Distribution History Report Report Type B Deductions (Health Ins, Union Dues, Charity, etc.) Payroll Deduction Report Report Type C Taxes (Federal, State, FICA, etc.) Payroll Tax Report Report Type D Contributions (FUTA, Workers Comp, SUI, etc.) Payroll Contribution Report Report Type E Accruals (Sick Pay, Vacation, etc.) Payroll Accrual Report Report Type G Exceptions (Overtime, Double Time, Sick Pay, etc.) Payroll Exception Report 2-8 Payroll
For Report Types A (earnings), B (deductions), and C (taxes), first assign a column for printing this information on the check reports, registers, and the Check History Report. This information is also available on demand through the Payroll Check History Inquiry option accessed through the Employee Masterfile Maintenance task. On the reports listed below, taxes are detailed by type (i.e., Federal, State, FICA, etc.). Earnings and deductions are summarized (e.g., only total earnings and total deductions are reported). On payroll checks, all earnings, deductions, and taxes are detailed by type. When establishing pay, deduction and tax codes (Refer to the Operations section), assign the columns where each type of earning, deduction, and tax is to be printed on the payroll reports described below. Totals from all columns assigned to pay and deduction codes are consolidated in the Register column and Check History column defined below. Tax amounts from each column assigned to the various tax codes are shown in the individual register column and check history columns defined below. Report Type F Registers/Checks (assign one column for all types of earnings, one column for all types of deductions and one column for each type of employee tax) Payroll Pre-Check Report and Payroll Check Register Prints total earnings, total deductions, and itemized taxes. Payroll Checks Prints itemized earnings, itemized deductions, and itemized taxes. Report Type H Check History (assign one column for earnings, one column for deductions, and one column for each type of employee tax) Payroll Check History Report and Payroll Check Inquiry Display Prints total earnings, total deductions, and itemized taxes. Decide upon the descriptions and column positions to be used for printing payroll information on the reports outlined above, and enter them on the Report Codes form. Refer to the Report Code Maintenance task in the Operations section of this manual. Pay Codes Pay codes are used for calculating employee earnings. A separate code must be established for each type of earnings paid to employees (e.g., regular pay, overtime, vacation pay, etc.). Specific pay codes applying to all employees (e.g., the code for regular pay) may be set up to automatically assign to new employees when added to the Employee Masterfile. For businesses such as restaurants, an automatic deduction feature may be set up for pay codes. This allows taxes to be calculated on earnings such as employee tips, and automatically deducted from total earnings before check printing (refer to Appendix E). Decide how many different pay codes must be defined and enter them on the Pay Codes form. Refer to the Pay Code Maintenance task in the Operations section of this manual. Contribution Codes Installation 2-9
Contribution codes are used for calculating employer taxes payable. Contributions include all employer taxes affected by employee earnings (e.g., workers compensation, state unemployment taxes, etc.), though not printed on the employee s pay check. Specific contribution codes applying to employer taxes for all employees may be set up to automatically assign to new employees when added to the Employee Masterfile. Determine the different employer contribution codes required and enter them on the Contribution Codes form. Refer to the Contribution Code Maintenance task in the Operations section of this manual. Deduction Codes Deduction codes are used for voluntary (non-tax) employee deductions such as health insurance, credit union savings, etc. Deductions may be either a fixed dollar amount or may be based on a percentage of total hourly units or earnings per pay period. Specific deduction codes applying to all employees (i.e., the code for health insurance) may be set up to automatically assign to new employees when added to the Employee Masterfile. A general ledger account must be specified for each deduction code. Determine how many different deduction codes must be defined and enter them on the Deduction Codes form. Refer to the Deduction Code Maintenance task in the Operations section of this manual. Tax Codes Tax codes are used for calculating employee taxes. A separate code must be established for each type of tax withheld from employee earnings. Tax codes applying to all employees (such as codes for Federal Income Tax, Social Security Tax, etc.) may be set up to automatically assign to new employees when added to the Employee Masterfile. Determine how many different tax codes must be defined for payroll processing and enter them on the Tax Codes form. Refer to the Tax Code Maintenance task in the Operations section of this manual. Tax Tables Tax tables are used for the automatic calculation of employee taxes. Federal, state, and local tax tables must be entered, as applicable to the company s payroll taxing jurisdictions. Each table established is assigned a separate table ID code. Taxes that are based on a percentage of earnings, such as FICA, and applicable to all employees, will not require a table. Refer to the most recent Circular E Employer s Tax Guide to enter the necessary federal information and use the appropriate State and Local Tax Guides for entering the correct state and local tax information. Determine what tax tables are required and enter the appropriate information on the Tax Tables form. Refer to the Tax Table Maintenance task in the Operations section of this manual. Title ID Codes 2-10 Payroll
Title ID codes are used to categorize employee earnings for reporting of labor expense by title on the Payroll Labor Distribution and Labor Distribution History reports. A separate title ID code must be set up for each title to be assigned to employees in the Payroll module. Determine what title ID codes are required and enter them on the Title ID Codes form. A standard rate may also be associated with the title ID code. Refer to the Title Code Maintenance task in the Operations section of this manual. Union Codes (Optional) Union codes are used to accumulate earnings, deduction, and employer contribution information by employee to meet the reporting requirements of employee unions. A separate code is assigned to each employee union, along with all applicable pay codes, tax codes, and contribution codes. The codes are used to accumulate information (during the Payroll update process) for the monthly Union History Report detailing employee earnings, hours worked, deductions, taxes, and employer contributions. This information is also available on demand through the Union History Inquiry option accessed through the Employee Masterfile Maintenance task. Determine what union codes are required (if applicable) and enter the codes and related information on the Union Codes form. Refer to the Union Code Maintenance task in the Operations section of this manual. Department ID Codes Department ID codes are used to define, by department, all General Ledger accounts for the payroll except those associated with deduction codes. These include, the general ledger cash account where payroll checks are drawn and the general ledger accrual account used for accruing payroll. The cash and accrual accounts defined for each department are posted during the Payroll Check Register Update process. Besides these two accounts, the general ledger expense accounts to be posted must be defined for each pay code and tax code, along with the expense and accrual accounts for each contribution code. NOTE: Since all GL account numbers are file verified, before defining the cash, payroll accrual, expense, and liability accounts for each department, the appropriate general ledger accounts must be established in the General Ledger module (refer to the General Ledger manual). Determine the department ID codes required and enter them on the Department ID Codes form with the appropriate General Ledger account information. Refer to the Department Maintenance task in the Operations section. Installation 2-11