Canadian Payroll Processing
Detailed Agenda Course Description New Combined Time Entry Method Quick Pay vs Manual Pay Employer Pay Calculations Shift Premium/Differential Charge Out Rates Web ROE
New Combined Time Entry The New Combined Time Entry screen allows multiple types of hours and earnings to be entered in from the same entry screen. In addition while in this screen you are able to access employee s setup and union setup without having to exit the screen or do a bookmark. The only functions that cannot currently be done in this screen are the ability to enter VP to do a vacation pay release and ability to do a C2 cheque. Click into employee s detail. Enter hours, earnings or deductions Running total of employee s hours & other earnings including previously entered entries PR CODE R/O/D Hours: To enter regular, overtime, double time, enter in code H or X, specify the allocation and then the hours under the respective column. (H option will automatically pull in G/L account from Payroll Department screen (if setup) when entering hours to a G/L account). To pull G/L account from employee s payment screen enter F9 when it the account allocation field. H80-H99 Hours: To enter in hours for these codes you must enter the corresponding E code (i.e. for H80 hours enter in code E80) and then enter the hours under Reg Hrs Column (will be broken out on reports and pay stubs)
T/V/O Hours (H04-H06): To enter these hours enter in the code O, the descriptions will then change under the hours columns to be what you have customized these codes as. All these hours will be paid out at regular rate. Other Earnings and Deductions: For all other taxable and non taxable earnings (E07-E24, N03- N15) and any deduction code simply enter the respective code in for the PR code and then specify the allocation and then the amount.
Editing Lines To edit lines, simply double click on the line, details will be put back in the top section of the screen and then can be edited. Click OK after making changes. Click OK when done editing You can also delete a line done in error. Click on the line, hit the delete button on your keyboard and message will come up confirming if you want to delete the entry. Lines shows as deleted.
Configuring Focus By default the focus does not go down to the Union, Rate and Trade fields. However if one or more of these fields need to be frequently changed you can have the focus automatically go to these fields as well. To define the order of the focus click on the Configure button (shows when first going into screen) on the right. Then click on the items in the order you want the focus to follow. Note that Hours/Amount field is the last field for entry so the focus will not go to any items after this. Default Entry Order
Revised Entry Order (to have focus go to Union Group)
Quick Pay Cheque vs Manual Pay Cheque Quick Pay Cheque Quick Pay Cheque can be used for multiple purposes: 1) Issue a cheque in advance of the regular payroll 2) Issue a cheque for employee who was missed when processing regular payroll 3) Redo a cheque to replace an incorrect cheque in the current run As far as processing a quick pay cheque the process is very similar to that of a layoff except employee is not being terminated. You must first enter any hours and earnings through Employee Earnings and Deductions. Quick Pay program will then calculate the taxes, allow you to review and edit deductions if necessary and then print a cheque. In addition the record gets flipped to be a M1 record so that it does not get picked up again when doing the regular check run. Once you go into Quick Pay and hit proceed, you cannot exit out of program until you print the cheque. Therefore it is recommended that before going into Quick Pay you run Calculate Deductions and Taxes first and then review the pay using Employee Pay Record Inquiry or Print Pay Journal to verify wages are accurate. First select employee and click OK Once all employee(s) are selected then click on Proceed
Can edit deductions if necessary at this point Manual Pay Cheque Main difference between doing a Manual Cheque and a Quick Cheque is that in addition to calculating taxes and printing a cheque when using the Manual Pay program you must also enter the earning under the Manual Pay Program as opposed to Employee Earnings and Deductions. Manual Pay Cheque can be used for multiple purposes: 1) Issue a cheque in advance of the regular payroll 2) Issue a cheque for employee who was missed when processing the regular payroll 3) Issue a second cheque in the same period for an employee (can include ROD hours as well)
Choose Manual Cheque Enter in cheque # and date and then click on Earnings button at the bottom
Enter in applicable earnings along with allocation and amounts. All earnings, even hours must be entered with E code (i.e. enter E01 for regular earnings, E02 for OT Earnings) When you come out of the earnings button, click on the Auto-Calc to calculate taxes and deductions (note that if necessary you can still go into Deductions afterwards to edit further but it is a lways best to do Auto Calc first.
Once entry is verified as correct click on Post Entry, system will produce an audit trail first, it will then prompt if you want to print the cheques. If you say no, you will not have an option to try and print them afterwards.
EMPLOYER PAY CALCULATIONS Employer Pays are items setup under Union Agreements to cost out different types of burdens that apply only to select groups of employees. Even though it is referred to as Union Agreements you do not have to be unionized to use these. Most common use of these agreements is for the tracking of vacation pay. For the agreement to take effect it must be attached to the employee file under their payment screen.
For Employer Pays there are several different types of calculations that can be setup: Hours Calculations Method W will calculate on rate * Reg+OT+DT+H80-H99 hours Method E will calculate on rate * Reg+OT*1.5+DT*2+H80-H99 hours Method R rate * regular hours Method O rate * OT hours Method D rate * DT hours When using Method E or W you can additionally have it calculate on other hours (H04, H05 and H06). To do this, enter in the corresponding E code in the based on field. When using Method E or W you can also have it max at a certain # of hours per pay by entering MAXHRxx in the based on field. In below example would stop once 40 hours are reached.
Percentage Calculations Employer pays can also be set to calculate as a percentage of earnings. The method must be set to P for percentage. If the based on field is left blank it will calculate as a percentage or Reg, OT, DT and E04 and E06 earnings. Otherwise you can specify the earning codes you want it to calculate on in the based on field. To have a percentage calculation also calculate on vacation pay paid out (E07) you must add VACPD to the end of the based on field. Percentage based on regular rate of pay To setup a percentage to be a percent of R/O/D hours * regular rate enter in REG in the based on field (excludes premium portion of OT and DT). Based on Calculations Employer Pays can also be setup to match a deduction, benefit or even a dollar amount. The method must be A for these. Deductions - set to 1.00 A Dxx Benefits set to 1.00 A Bxx Amount set to 1.00 A x.xx
Union Pension The first employer pay that shows as Union Pension is meant specifically for employe r contributions to an employee pension plan (not RRSP plan). The resulting amount for this line will get stored in memo code M07 (Pension Adjustment) and will show in Box 52 of the T4 at the end of the year. G/L Allocation The default credit for all employer pays is the Union Burdens Applied line setup in the Jrnl Entry under the Payroll Profile. However you do have the ability to redirect the credit to a different account for Other 4 and Other 5 as well as Other 6-25 under the More button by clicking on G/L to the right of each of these fields.
Shift Premium/Differential There are many ways shift differential/premiums can be paid out. One of the newer ways is to use codes H80-H99 (tied to E80-E99). These codes can be setup with a factor under the Customize button in the Payroll Profile or can be set with rates through union/group agreements. Note: Both your earning statement and cheque design must support these codes to be able to use them. Customize Setup Under the Customize button in the Payroll Profile if you pull up H80-H99 codes you can specify either a percentage or amount both of which are then added to employee s base rate when time is entered. For example, if you put in $1.50 and employee s base rate is $15.00 then when you enter in time for these codes the rate would change to $16.50.
Union Group Setup Rates entered in this screen replace employee s base rate they do not add to it. As a result the rates can be set up in one of two ways: 1) Base rate + premium (i.e. base rate is $35.00, premium is $2.00, $37.00 would be entered here) 2) Premium only (in above example $2.00 would be entered here) **Important, if using this option, there is a flag on Page 2 of Special Payroll Options called Exclude H80-H99 From Cost Allocation and ROE that must be checked so hours are not picked up twice for reporting and calculations**.
Processing of Shift Differential Codes These codes can only be entered via New Combined Time Entry or the Spreadsheet Upload entry programs. For both you enter in the corresponding E code (i.e. E80) and then enter in the hours under the hour field.
Charge Out Rates Charges out rates are used in conjunction with the job costing module. They allow an employee to be paid one rate but charged out at another rate when posting time to a job. The difference is posted to predefined G/L account referred to as labor variance. They can be set up for hourly or salaried employees. Setup To activate this process you must first specify the G/L account that you want the variance to be charged too. This is done under Payroll Configuration> Redirection of Job Burdens>
You can setup rates based on a fixed rate method (same rate for all jobs) or rate can be setup by occupation code. Fixed Rate Method For this method, the charge out rate is specified in the employee s file under the Misc Info screen.
Occupation Code Method For this method, the rate gets setup under a rate table under Payroll Configuration> Occupation Codes > click on Chg Out. With this method you can specify up to 20 different charge out rates per occupation code. You then attach the desired code to the Job Master under PR Burdens screen.
Processing To enter hours and have it use charge out rates, the hours must be entered in one of the following screens: ROD Time Entry, Combined Time Entry or Shift Differential With Combined Time Entry. As of 12.2 these hours can also be entered through New Combined Time Entry. On the audit trails the employee s rate will show as 0.00 but when you calculate taxes and deductions the system will insert the employee s actual rate at that time. The Cost Allocation will calculate burdens as if a charge-out rate did not exist, and the direct costs for each person will be reduced so that the direct costs + Burdens = charge-out rate. (You might differ by a penny here or there, because of rounding.)
Example: Employee is set up as salaried at $1000.00 per pay with a charge out rate of $60.00. 40 hours are entered to a job. Resulting calculation would show as follows on employee s pay and cost allocation report:
Total cost is showing as $2400.00 (40*$60.00). Labor Rate Variance is showing at $1092.91 which is the total cost less actual wages less burdens ($2400-1000-307.09)
WEB ROE WEB ROE has been designs by Service Canada to submit record of employments on line. Many clients have started to use this as opposed to paper ROE s however they are manually keying in details onto the website. Jonas has the ability whether in the Terminate Employee Program or the Layoff Program to create a file of ROE details that can then be uploaded to WEB ROE instead of manually keying in details. Jonas Setup 1) Ensure your 9 digit business number is setup under Administration > Company Profile (entire 15 digit business number including RPXXXX can be entered In here if preferred). 2) Go to Payroll Config > Payroll Profile and pull up profile screen for each payroll code that you use. On the main screen ensure Employer ID (RP portion of the business #) and ROE Issuer fields are filled. Click on ROE Addr button and enter in your company address and phone # (comment fields are not required to be filled).
Terminate Employee Program When creating the file through the Terminate program, select WEBROE option under Form. Under HRDC File Name box, enter in name for the file. File can be named anything, only stipulation is that it ends with.blk (i.e. mike.blk or sept01.blk or roemikesmith.blk etc.). If desired you can also specify exact path you want to save file to. After entering employees and updating, system will confirm again the name of the file and where it has been saved. Layoff Program In the Layoff program, when you are prompted if you want to Print ROE s, simply click on WEB ROE button, Jonas will create the file and advise what the name is and where it has been saved.
UPLOADING TO ROE Web Below is a brief description of how file can be uploaded to ROE Web. More detail guidelines can be found through Service Canada as far as uploading the file and checking and submitting it (once file is submitted you are then able to print the ROE itself on your local Laser printer) Once you are logged into ROE Web follow prompts for ROE Payroll Extract and choose Upload. After saying ok to the disclaimer you will then be able to browse and choose the file from your computer that Jonas has created and after entering Epass Password, click on Upload File.
Once file is uploaded you can then click on View and will see the file you have uploaded. Click on File name and window will come up advising if the ROE submitted has either Passed, Failed or Rejected. You are able to view passed or failed ROE s but not rejected (rejected ROE are normally due to invalid business # or Company address and/or phone number missing). To view passed or failed ROE click on SIN #, you are able to edit ROE on line when viewing it. If ROE shows as passed, if you click on Submit ROE it will submit it automatically and you will not be able to view if first. If you want to view it even if it shows as passed just click on the SIN #.