Payroll Table of Contents

Payroll Table of Contents I. Payroll, Getting Started...1 General Description... 1 Reports and Forms... 2 Terminal Inquiry Options... 3 Setting Up the Basic Data Files... 4 Setting Up the Payroll System Maintenance File... 4 II. Payroll, User s Guide...43 Payroll Menu... 43 Tutorial... 45 Lesson 1: Performing File Maintenance... 45 Lesson 2: Regular Payroll Run... 52 Lesson 3: Handwritten Checks... 83 Lesson 4: Reports... 86 Miscellaneous Program Operations... 103 The Payroll Inquiry... 103 End of Period Reset (Monthly)... 103 End of Quarter Reset... 105 Clearing Timecard Data... 107 III. Payroll, Reference Guide...108 Data Files Description... 108 Transaction Files (2)... 108 Employee File... 108 Paycheck Data File... 109 Sorted Employee File... 110 Payroll System Data... 110 Payroll History Check Data... 110 i

Payroll History Pay Data... 110 Payroll History Deduction Data... 110 Gross Pay... 111 Premium Pay... 111 Deductions... 112 Coding Scheme for Employees... 114 Implementation and Training Checklist... 115 Flowchart... 116 Work Schedule... 117 Using Menus and Keys... 118 ii

I. Payroll, Getting Started General Description The Payroll Module is a complete and proven method for computerizing your payroll operations. You are able to enter timecard data, print time summary reports and payroll registers, paychecks, and check registers. All wage distributions to the General Ledger System are tracked by department and location. The Payroll System is capable of printing time sheets, time card labels, quarterly reports, W-2 s, certified payroll reports, union reports, etc. It also allows wages to be charged directly to job costing and provides for personnel records management. The Payroll System tracks up to 24 deductions and 18 pay types. It can also accommodate 401K, Cafeteria and direct deposit situations. The Payroll Module fully integrates with the General Ledger, Job Costing, Data Collection and the Productivity Modules. The software is multi-user capable, handles one or more companies, is fully user interactive and meets high standards of reliability and maintainability. 1

Reports and Forms Reports can always be printed in several formats. Each report that can vary based upon operator input is designated by an S. Those with multiple formats are identified with an F (e.g. summary or detail version). Payroll Hours Summary: Shows productive versus non-productive, overtime, sick leave and vacation hours, etc., summarized by rate and shift, with subtotals for each location and department. Hours are broken down for all pay types. Payroll Register: Shows current and year-to-date hours, deductions and wages for each employee. Paychecks: Paycheck stubs can show any combination of current and yearto-date figures. Provisions are built-in to handle hand-written paychecks, layoff checks and other special check-writing requirements. (S) Check Register: A register can be printed for each of eight bank accounts. Total wages, deductions, check number and amount of each check for each employee is listed. A hand-written check register can also be printed. Quarterly Reports: Run every three months, these reports list all employee s quarter-to-date as well as month-to-date and year-to-date total wages, hours and deductions for easy completion of required payroll forms (941, Unemployment Compensation, etc.). Grand totals for FICA tax withheld, employee contributions, federal tax withheld and total tax deposits are also calculated. W-2 s: W-2 s will show all year-to-date wage and tax information from the previous year and will print it on standard W-2 tax forms. Employee Listing: Employee records can be printed by: name, department and sort field; user-specified fields; name and employee data; deduction data; all pay and deductions; and all retirement data. 2

Terminal Inquiry Options The following data can be reviewed on screen at any time. Also, any of the above reports can be displayed on a terminal for inquiry or review purposes. Employee File Inquiry: Inquiry is performed through the Employee File Maintenance program. For each employee you can view information such as administrative data (address, SSN, start date, default deductions, etc.), personnel records, total wages and hours per week, quarter and year, and deductions per month, quarter and year. 3

Setting Up the Basic Data Files In order to begin using the Payroll Module, it is necessary to build a database in the following files: Payroll System Maintenance Employee File Maintenance In addition, you will need to enter previous quarter and year-to-date figures for each employee unless you begin at the beginning of the year. This procedure is discussed in more detail later. We will begin with the Payroll System Maintenance. The Payroll System Maintenance program maintains this data file, which contains important system flags and various preference codes necessary for the proper operation of the Payroll Module. Setting Up the Payroll System Maintenance File Step 1 From the Main menu, select the Payroll Module by typing 10. The screen will display the Payroll Menu. Figure 1.00 Payroll menu 4

Step 2 Step 3 From this menu, select the Payroll System Maintenance program by typing the number 28. You will be prompted with the standard verification prompt: O.K.? (Y)es, (V)oid or (N)otes for Operator Y Press <ENTER> to confirm that this is the program you want. At this point you can also type V (Void) to exit this program and return to the previous menu or N (Notes) to review any notes associated with this program. Figure 1.01. Payroll system data, table of contents screen. To select a page from the table of contents menu, type the reference line number. If it is a one digit number (1 through 9), press <ENTER> after the number. When finished entering new information to a page, type E (End) and you will return to the table of contents screen where you can select another page to modify. Start with Page 1, Pay Types. 5

Page 1: Pay Types The Payroll System can accommodate up to 18 different pay types. Each one is treated separately in regards to whether it is subject to certain types of taxes. Each pay type represents dollars to be paid to an employee. The employee s gross pay is the total of all pay types added together. The Pace System is normally installed with the pay types shown in Figure 1.02. If these pay types are sufficient to your type of operation, you may skip to the next page. Other pay types that your company may use are: Travel allowance Uniform Allowance Direct Pay Bonuses Employee Advances Meals Indirect Pay Etc. To enter a new pay type or modify one of the existing ones, follow the instructions below. Figure 1.02. Pay types. 6

Step 1 From the table of contents screen, type 01. See Figure 1.02. Step 2 Step 3 Type the line number followed by <ENTER>, of the pay type you want to modify. To add a new pay type, select a line number that is blank or type over the existing line. Pay Type: Under this column, enter a short (no more than six characters) pay description. This description will appear as headings on payroll reports, on-screen menus and on the paycheck stub. Press <ENTER> to advance to the next column. Step 4 Notes: Enter a description that explains this pay type. Up to 30 characters are allowed. These notes are for internal use only; they are not used elsewhere. Step 5 Repeat Steps 2 9 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 7

Page 2: Deductions The Payroll System can accommodate up to 24 different deduction types. Each one is defined with a description, an assigned deduction type code, a percentage or dollar rate amount for calculating the deduction, and a deduction limit. A rate is entered only if it effects all your employees the same way, such as FICA Tax. However, if a different rate is entered in an employee s master file, that rate will override any rate entered here. This limit is the maximum amount to be deducted from an employee during the year. For example, the most an employee will be charged for FICA will be based on the FICA limit shown in Figure 1.03. Deduction type codes are assigned to each deduction depending on how the deduction is calculated. 1. % of Gross: Deduction is calculated by multiplying the gross pay by this rate. 2. $ per Hour: Deduction is based on a dollar amount times the number of hours worked. The dollar amount comes from the Rate column. 3. $ per Pay: Deduction is a specified dollar amount per payroll run. 4. Graduated Tax: Deduction is calculated using the graduated tax file (see Page 10: Graduated Tax File). This type is used mainly with federal, state and local taxes. 5. % after Taxes: Deduction is calculated by subtracting all taxes from gross pay, then multiplying this amount by the rate. 6. Earned Income Credit: Deduction is calculated based on the Graduated Tax table EIC. This table is set by the IRS and may change each year. This is usually a negative deduction, that is it increases a persons pay. This directly affects the Federal Taxes, Quarterly Report and W-2 s. 7. Garnish: (min/max) Deduction is designed for the state of Georgia calculated as a percentage of pay with a maximum dollar amount. It is used to allow a 20% deduction while maintaining a minimum of pay to the employee. 8. Not used. 8

9. Sec 125 (Cafe or Other Federal Tax Exempt): This type of deduction is exempt from any federal tax. Cafeteria plans are examples of such deductions. 10. Balance of Check: This type of deduction is used if, for example, your company provides direct deposit to an employee s bank account. The balance of the paycheck is treated as a deduction, in effect leaving a zero balance check when the paychecks are printed. 11. Not used. 12. 401-K. 401-K s are assigned its own unique type code. NOTE: Additional federal, state and local tax deductions must be crossreferenced with Page 18: Misc Deduction Data, lines 1 3. On these lines, enter the additional federal, state and local deduction numbers, respectively. Figure 1.03. Deductions Step 1 From the table of contents screen, type 02. See Figure 1.03. Step 2 Type the line number, followed by <ENTER>, of the deduction type you want to modify. To add a new deduction, select a line number that is blank or type over the existing line. 9

NOTE: Deductions 1 4 are fixed and should not be moved. In other words, FICA must always be deduction #1, Medicare must always be deduction #2, etc. The rate or limit of these deductions can be changed but as these deductions are always required, they should be at the top of the list. Deductions are taken in the order they are listed. The deduction type should not be changed since the type determines how the deduction is calculated. Deductions are taken in the order they are entered on this page. Since taxes come out first, all taxes should be entered first followed by voluntary deductions. The last deduction is reserved for direct deposit, as it will reduce the check to a zero balance. Step 3 Step 4 Step 5 Description: Enter a short (six character) description for this deduction, then press <ENTER>. Type: Enter the deduction type code from the list at the bottom of the screen, then press <ENTER> Rate: Enter a percentage rate or a dollar amount, then press <ENTER>. The figure in this field is the default figure used to calculate the deduction. Any rate or dollar amount entered in the employee s file will take precedence over the rate entered here. NOTE: Since type 4 deductions are calculated based on a separate rate table, enter 0.0000 under the rate for all Type 4 deductions. NOTE: 401K deductions can be a dollar amount or a percentage. If the rate is less than $1.00, it is assumed to be a percentage. If it is more than $1.00 it is assumed to be a dollar rate. This ONLY applies to 401K deductions. Step 6 Limit: Enter a dollar amount for the deduction limit, then press <ENTER>. This limit is the maximum amount that can be deducted in one calendar year. To specify no limit, enter 999999.00. Step 7 Repeat Steps 2 6 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 10

Page 3: Pay Types Cross-Reference to General Ledger This page is used to cross-reference the pay types for each department with a general ledger account number. Up to thirty departments can be defined, ten are displayed at a time on each page (see Page 7: Department Descriptions). For this cross-reference system to work properly, each employee must be assigned a department in Program 12: Employee File Maintenance. Figure 1.04. Pay types cross-reference Step 1 From the table of contents screen, type 03. See Figure 1.04. Step 2 Step 3 Step 4 Type the line number, followed by <ENTER>, of the department you want to modify. To add a department, type a line number that is blank or type over the existing line. Department: Enter the three character code for the department, then press <ENTER>, or press <ENTER> to leave this field alone (if a code is already there) and advance to the next field. The department descriptions are set up on Page 7: Department Descriptions. The pay types are displayed at the top of each column. Types 1 9 are displayed in Figure 1.04. To show pay types 10 18, type > and <ENTER>. 11

Ten departments are displayed on the screen at one time. To show the next group of departments, type P and <ENTER>. Enter the seven character general ledger account number for each pay type for each department. To duplicate the same account number for all pay types, type D in the first pay type field (no other characters can be in this field), and <ENTER>, then type the account number. When you press <ENTER> again, the account number will automatically be entered in all eighteen pay types. To repeat the account number from the department line immediately above the one you are entering, type R in the first pay type field (no other characters can be in this field), and <ENTER>. The account number immediately above will automatically be entered in all eighteen pay types. Step 5 Repeat Steps 2 4 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 12

Page 4: Deductions Cross-Reference to General Ledger This page is used to cross-reference the deduction types with a general ledger account number. Figure 1.05. Deductions cross-reference Step 1 From the table of contents screen, type 04. See Figure 1.05. Step 2 Step 3 Step 4 Type the line number, followed by <ENTER>, of the deduction account number to modify. Account to Credit: Enter the seven character general ledger account number to credit, then press <ENTER>. Repeat Steps 2 3 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 13

Page 5: Rate Calculation Table This page controls certain pay types (premium pay) that are calculated based on hourly rates. Here, you can set up different pay premiums or shift rates that are some combination of base pay plus a certain amount or percentage over regular pay. These pay types are then cross-referenced for general ledger and other record keeping purposes. Up to eighteen different rate calculations can be defined. For each rate type there are seven pieces of information to enter: a rate code, description, calculation method type, base rate, premium rate, base pay type and premium pay type. Pay type calculations are based on the method type code, of which there are nine: 1. Base rate times first factor (x BASE column) plus second factor (+ BASE column). 2. Not used. 3. Base rate from job operation code. 4. Dollar amount entered. 5. Hourly rate entered. 6. Salary. 7. Base rate #2 is used from the employee file. 8. Base rate #3 is used from the employee file. 9. Base rate #4 is used from the employee file. For example, referring to Figure 1.06, rate type 2 (overtime) is calculated as follows: Base rate x 1.5 = Overtime rate Step 1 From the table of contents screen, type 05. See Figure 1.06. Step 2 Type the number, followed by <ENTER>, of the rate type you want to modify. To add a new rate type, enter a line number that is blank or type over the existing line. 14

Figure 1.06. Rate calculations table. Step 3 Step 4 Step 5 Step 6 Code: Enter a two character code for this rate type, then press <ENTER>. Description: Enter a short description for this rate type, then press <ENTER>. Method (MTH): Enter the calculation method code from the menu at the bottom of the screen, then press <ENTER>. x Base: Enter a percentage the base rate will be multiplied with, then press <ENTER>. As in the earlier example, if a rate type is to be 1.5 times more than the base, enter 1.5000, to enter a rate 2 times more than the base, enter 2.0000. For method codes 4 6, enter 0.0000. Zeroes in this field will force the computer to prompt you for an input when necessary. Step 7 + Base: Enter a dollar amount to add to the calculation, then press <ENTER>. For example, if you entered.25 on line 1, $0.25 will be added to the base hourly rate. This is useful for shift premiums, etc. 15

Step 8 Step 9 Base $ To: Enter the pay type code that will be the result of this rate calculation, then press <ENTER>. For example, line 3 is the rate calculation line for double time. Under this column, enter the pay type code corresponding to double time pay. In this case, it is pay type 3. Premium $ To: If you have a premium amount, like 1.5 times the base, you can have the base amount (1.0 times hours) go to one general ledger account, and the premium portion (0.5 times hours) go to another general ledger account. To do this, enter the Premium To pay type in this column. Step 10 Repeat Steps 2 9 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 16

Page 6: Timecard Charge Codes This page defines the charge codes that are available when entering timecard data in Program 1: Enter Timecard Data. Each charge code listed under the Code column, is cross-referenced with a rate type calculation from Page 5: Rate Type Calculations (see preceding section) if desired. Consequently, Page 5 should be completed before you can proceed with this page. When entering timecard data, you have the option of entering either a charge code (from the Code column of Figure 1.07) or a job number. If you enter a charge code, pay will be calculated using the corresponding rate calculation code. Entering a job number will calculate the pay based on the rates as they are set up in the specified operation code. Figure 1.07. Timecard charge codes. Step 1 From the table of contents screen, type 06. See Figure 1.07. Step 2 Step 3 Type the line number, followed by <ENTER>, of a charge code to modify. To create a new charge code, type a line number that is blank. Code: Enter a charge code (up to six characters) then press <ENTER>. This code will be what you enter when entering timecard data. 17

Step 4 Step 5 Step 6 Description: Enter a short description of this charge code, then press <ENTER>. Rate Calculation: Enter the rate calculation code from the preceding section, then press <ENTER>. Repeat Steps 2 5 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 18

Page 7: Department Descriptions This page defines the description for each department code. These descriptions are used in all payroll reports and when printing header information referring to locations and departments. The Payroll System can have up to thirty departments. On this page, you can only add or change the department descriptions. Adding or changing the department code itself is done on Page 3: Pay Types Cross- Reference to General Ledger. Figure 1.08. Department Descriptions. Step 1 From the table of contents screen, type 07. See Figure 1.08. Step 2 Step 3 Step 4 Enter the line number, then press <ENTER>, of the description you want to change. Enter the new description, use the spacebar to erase any unwanted characters, then press <ENTER>. Repeat Steps 2 3 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 19

Page 8: Define Personnel Record This page defines the data fields for the personnel records page in Program 12: Maint: Employee File. You can have up to 27 fields. The personnel records page allows you to enter employee information that does not relate to any pre-defined field. Some examples are shown in Figure 1.09. These data fields are also available as sort fields in Program 13: Sort Employee File. As you define a new data field on this page, it will be added to the list of sort options. Figure 1.09. Personnel records definition Step 1 From the table of contents screen, type 08. See Figure 1.09. Step 2 Step 3 Step 4 Enter a line number, then press <ENTER>. Enter a description for this data field, then press <ENTER>. Enter the length (in characters) of this data field, then press <ENTER>. Lines 1 9 can be up to 32 characters long, while lines 10 27 are limited to 12 characters. The total length of all fields cannot exceed 249 characters. Step 5 Repeat Steps 2 4 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 20

Page 10: Federal & State Tax File This page is used to define different federal, state and local tax codes. Each tax code uses a graduated tax table specific to the particular code in order to calculate the proper deduction. Step 1 From system control, type 10. See Figure 1.10. Figure 1.10. Federal and state tax file, opening screen. Figure 1.10 lists the available tax codes already set up and available. Notice that each code begins with the two letter abbreviation for the state/locality, then a number to distinguish between subsequent tax rates for the state/locality. The federal tax codes are usually FD1 and FD2 for Federal, Single and Federal, Married. 21

Step 2 At the prompt: Enter next tax CODE, (L)ist File, or (E)nd To modify an existing tax rate, enter that tax code. To add a new tax rate, enter the new code. If the code you enter is not on file, a verification prompt will appear: Not on File. (A)dd code or <ENTER> _ Type A to add the code and continue, or press <ENTER> and you will return to the previous prompt. You can also type L to print a listing of all the tax codes on file. You must specify the printer you want this list to print from. For this example, FD1, the federal tax code for single employees, was entered. See Figure 1.11. Figure 1.11. Federal and state tax file, input screen. Step 3 Any line item in Figure 1.11 can be changed. To do so, type the line number to change, enter the new information, then press <ENTER>. Lines 4 and 7 14 have multiple data fields. Press <ENTER> to advance to the next one. Step 4 Repeat Steps 2 3 for each tax code. Type E (End) followed by <ENTER> to return to the table of contents screen. 22

The following is an explanation of each line item: Line 1 Line 2 Line 4 State Tax Code: This is the tax code itself. It does not have to be a state tax code as the line label implies, since this data file stores federal and local tax codes as well. Description: This is the description of the above tax code. Standard Deduction %: If your state uses a standard deduction percentage, you can enter it here. Standard Deduction Minimum: This is the minimum dollar amount for a standard deduction. Standard Deduction Maximum: This is the maximum dollar amount for a standard deduction. Line 5 Line 6 $ Deduction/Exemption: This is the standard deduction per dependent that is deducted before calculating the taxable base. This file is usually set up for annual rates. It should be set up to compliment the way your payroll is set up. Standard Deduction $: This is the standard deduction for all employees for this tax area. Lines 7 14 These lines make up the graduated rate table. There are three columns:! The base tax amount for a particular tax bracket. " A percent figure used to calculate additional tax above the base amount. # A dollar figure representing the amount for the next tax bracket. For example, according to the information on line 7 of Figure 1.11, if an employee earned $2,650 or less, there will be no federal withholding. If the same employee earned more than $2,650 but less than $27,850, federal withholding will be the taxable gross pay multiplied by 0.15 (15 percent). NOTE: Lines 7 14 are used for the different tax brackets, however, you will rarely need to use all 8 lines. In order for the graduated tax file to work properly, enter the tax bracket information beginning with line 7, then enter zero, on the remaining lines, except for line 14. Line 14 must repeat the last non-zero tax bracket. 23

Page 11: Paycheck Types This page is used to setup up to six different paycheck types. Each type is defined with a description, and Yes/No flags used to control whether a check can be printed for this type. A paycheck type must be selected when entering timecard data. The Pace System is already set up with the paychecks types shown in Figure 1.12. If these will suffice for your type of operation, you can skip this page, otherwise, follow the instructions below to make the necessary changes. Figure 1.12. Paycheck types. Step 1 From the table of contents screen, type 11. See Figure 1.12. Step 2 Step 3 Step 4 Type the line number, followed by <ENTER>, of the paycheck type you want to change. To add a paycheck type, enter a number that is blank. Description: Enter a short description, then press <ENTER>. This description will appear as a menu item in Program 1: Enter Timecard Data. Print Check: Type Y (Yes) and <ENTER> if you want to be able to print a check for this paycheck type, or type N (No) so that no check will be printed. NOTE: For manual checks, this field should be N, since a check has already been written. Step 5 Repeat Steps 2 4 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 24

Page 12: Weekly Sequence Flags This page governs what type of operations must be performed during each pay period. Unless specifically told to do otherwise by a Pace customer service representative, each line should be set to Y (Yes), except for line 4 (the deduction summary is an optional report that is not required to be printed). This will ensure that each operation is performed. For example, with line 1 set to Y (Yes), you are required to print the payroll register before you can print the payroll checks. Each operation on this page coincides with a program from the Payroll Menu: 1. Print Payroll Register Program 5: Print Payroll Register 2. Print Checks Program 8: Print Employee Paychecks 3. Post Payroll Data Program 10: Update & Post Payroll 4. Print Deduction Summary Program 6: Print Deduction Summary 5. Print Hours Summary Program 3: Print Payroll Hours Summary 6. Print Check Register Program 9: Print Check Register If this page on your system looks like Figure 1.13, you can skip this page, otherwise, follow the steps below to make the necessary changes. Figure 1.13. Weekly sequence flags. Step 1 From the table of contents screen, type 12. See Figure 1.13. These are the defaults, or what we recommend for your initial settings. 25

Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Type line number 01, then type Y (Yes) and <ENTER>. This will force you to print the payroll register before you can print the employee paychecks. Type line number 02, then type Y (Yes) and <ENTER>. This will force you to print the employee paychecks before you can print the check register. Type line number 03, then type Y (Yes) and <ENTER>. This will force you to update and post the payroll data at the end of each pay period. Type line number 04, then type Y and <ENTER>. This will make the deduction summary a required report. To make this an optional report, type X. Type line number 05, then type Y (Yes) and <ENTER>. This will force you to print the payroll hours summary before you can print the payroll register. Type line number 06, then type Y (Yes) and <ENTER>. This will force you to print the check register after printing the employee paychecks. Type E (End) followed by <ENTER> to return to the table of contents screen. 26

Page 13: Period Report Flags Similar in function to the previous page, this page governs what operations must be performed at the end of each period. Unless specifically told to do otherwise by a Pace customer service representative, each line should be set to Y (Yes). This will ensure that each operation is performed. When the operation is performed, the system will change the flags set here. For example, with line 1 set to Y (Yes), you are required to print the payroll quarterly summary before you can perform an end-of-period reset. Each operation on this page coincides with a program from the Payroll Menu: 1. Must Print Quarter Summary Program 17: Print Quarterly Payroll Summary 2. Must Print 941 Report Program 18: Print Quarterly 941 Report 3. Must Print W-2 s Program 20: Print Employee W-2 Tax Forms 4. Must Close Month Program 21: End-of-Period Reset (M)onthly 5. Must Close Quarter Program 21: End-of-Period Reset (Q)uarterly 6. Must Close Year Program 21: End-of-Period Reset (A)nnually Line 9 tracks the current pay month according to your fiscal calendar. For instance, if you use the calendar year as your fiscal calendar, January is month #1, February is month #2, etc. This line is used by the computer to determine when the quarterly reporting periods occur. For a calendar year, they are at the end of months #3, #6, #9 and #12. This line can be changed if it displays the wrong month or you closed the period earlier or later than the default. If this page on your system looks like Figure 1.14, you can skip this page, otherwise, follow these steps to make the necessary changes. Figure 1.14. Period Report Flags. 27

Step 1 From the table of contents screen, type 13. See Figure 1.14. Step 2 Step 3 Step 4 NOTE: Step 5 Step 6 Step 7 Step 8 Type line number 01, then type Y (Yes) and <ENTER>. This will force you to print the quarterly payroll summary before you can run the End-of-Period Reset program for the quarter. Type line number 02, then type Y (Yes) and <ENTER>. This will force you to print the quarterly 941 report before you can run the Endof-Period Reset program for the quarter. Type line number 03, then type Y (Yes) and <ENTER>. This will force you to print the W-2 tax forms before you can run the End-of- Period Reset program for the year. Steps 5, 6, & 7 are only set up once. Once run, they become selfregulated. Type line number 04, then type Y (Yes) and <ENTER>. This will force you to run the End-of-Period Reset program at the end of each month. Type line number 05, then type Y (Yes) and <ENTER>. This will force you to run the End-of-Period Reset program at the end of each quarter. Type line number 06, then type Y (Yes) and <ENTER>. This will force you to run the End-of-Period Reset program at the end of the fiscal year. Type E (End) followed by <ENTER> to return to the table of contents screen. 28

Page 14: General Operation Flags This page controls how the Payroll Module operates. It is flexible enough to allow you to tailor the system to your specific needs. Step 1 From the table of contents screen, type 14. See Figure 1.15. Step 2 Step 3 Step 4 Type the reference line number, followed by <ENTER>, of the item you want to change,. Type the new information, then press <ENTER>. Repeat Steps 2 3 as necessary. The item descriptions are shown below. After changes are made, type E (End) to return to the table of contents screen. Figure 1.15. General operation flags The following is an explanation of each line item: Line 1 Start/Stop Times, P/R: With this line you set how time will be entered into Program 1: Enter Timecard Data 0 = Enter Hours with decimals (ie 8.25) 1 = Enter hours and minutes with start and stop times 2 = Military Time In Hours and Minutes with start / stop 3 = Hours and Minutes in 10ths 4 = Hours and minutes entered (ie 8 and 15) Line 2 Start/Stop Times, J/C: This line is the same as line 1 above except it is used for Program 2: Enter or Edit Timecards in the Job Costing Module. 29

Line 3 Line 4 Line 5 Line 6 Line 7 Line 8 Line 9 Default Hours for Payroll: This is the number of hours that will be the default amount when entering timecard data in Program 1. This amount will be used (unless manually changed) for each employee s timecard entry. Salary Rate Calculation #: This is the default rate calculation number for salary as set up in Page 5: Rate Calculation Table. Ask Shift During P/R Entry: With this line set to Y (Yes), the computer will prompt you for the employee s shift (number 1 4) in Program 1: Enter Timecard Data. With this line set to N (No), the system defaults to shift number 1. Check Print Format: This is the P/R check format program to load to print checks. It is set by Pace unless you modify it as your requirements change. G/L Interface? This is the flag that determines if journal entries will be made for the General Ledger. This is set to Y if you have G/L licensed and N if you do not have or do not want journal entries created by the system. Default Bank Number: This is the default bank number for new employees. It is used to determine the G/L account number for the respective bank, and also uses this number when posting to Bank Account Reconciliation. It is a default and can be changed on the employee record individually. Default State: This is the default state for new employees. It is used when new employees are added to the system. The state is used for State income taxes, State Unemployment taxes and reporting purposes. Line 10 Auto Backup? This flag is used to determine whether the Payroll file should be automatically backed up. If set to yes, then the Payroll will be backed up before zeroing out the details in the employee file. This prevents a reset from being run when a report has not yet been completed. If backed up, the data can be restored. Line 11 Print Zero Amount Check? Set this flag to Y es if a zero amount check should be printed. Examples include direct deposit checks and any checks where the amount of the deductions zero out the pay. 30

Page 17: Employee Status Codes This page allows you to setup up to fourteen different employee status codes. Each code is defined with the code itself, a description and a status flag. The flag determines whether a code is active or inactive. Each employee is assigned a status code through Program 12: Maint: Employee File. The most common status codes you will use are already set up as shown in Figure 1.17. Step 1 From the table of contents screen, type 17. See Figure 1.17. Step 2 Type the line number, followed by <ENTER> of the status code you want to change. To add a status code, type a number that is blank or type over the existing line. Figure 1.17. Employee status codes. Step 3 Step 4 Step 5 Step 6 Code: Enter a one character code for this status type, then press <ENTER>. Description: Enter a short description for this status code, then press <ENTER>. Considered Inactive: If this status code is considered inactive, type Y (Yes) and <ENTER>. Employees cannot be deleted if they are still active. Repeat Steps 2 5 as necessary. Type E (End) followed by <ENTER> to return to the table of contents screen. 31

Page 18: Misc. Deduction Data This page allows you to cross reference certain deductions to the deductions file and set state and federal unemployment limits and percentages for reporting purposes. Step 1 From the table of contents screen, type 18. Step 2 Type the line number, followed by <ENTER> of the line you want to change. Enter the appropriate answer to change. Figure 1.18. Misc. Deduction Data. A brief description of each line follows: Line 1 Line 2 Line 3 Line 4 Additional Federal Tax Deduction #: This is the deduction number that corresponds to additional federal tax deductions. If you have no deduction set up for additional federal tax, enter 00. Additional State Tax Deduction #: This is the deduction number that corresponds to additional state tax deductions. If you have no deduction set up for additional state tax, enter 00. Additional Local Tax Deduction #: This is the deduction number that corresponds to additional local tax deductions. If you have no deduction set up for additional local tax, enter 00. Local Tax Deduction #: This is the deduction number that corresponds to local tax deductions. If you have no deduction set up for local tax, enter 00. 32

Line 5 Line 6 Line 7 Line 8 Line 9 Employee Loans Deduction #: This deduction number is used so that when the end of year reset is run, this deduction is not zeroed out so that it may track the deduction for the next year. In order to use this feature, you must call Customer Support before running your end of year reset. Vacation Hours Pay Type #: This pay type is used to print on checks for reporting the remaining vacation hours available. This pay type is set here so the computer can accurately determine the vacation hours pay type. Sick Hours Pay Type #: This is identical to the vacation hours except that it relates to sick hours. Earned Income Credit Deduction Number: This is the deduction number set for Earned Income Credit, if any. If you use the Earned Income Credit then this flag must be set. The deduction number identified here must be added to the deduction section (Page 2) and the Graduated Tax File Maintenance code EIC must be set up (Page 10). State Unemployment Tax %: This is the percentage amount the system will use when calculating the state unemployment tax amounts in the quarterly report. Line 10 State Unemployment $Limit: This is the maximum amount an employee can earn that will be subject to state unemployment tax for the quarterly report. Line 11 Federal Unemployment $Limit: This is the maximum amount an employee can earn that will be subject to federal unemployment tax and is used in the quarterly report. Line 12 Federal Unemployment Tax %: This is the percentage amount the system will use when calculating the federal unemployment tax on the quarterly report. 33

Setting Up the Employee File Program 12 is the master file maintenance program which allows you to add, delete or modify employees in the employee data file. This section will show you how to enter a new employee into the employee file. Once this is done, you will also be instructed how to enter quarter-to-date and year-to-date figures so that tax and FICA limits will work properly. Refer to Lesson 1: Performing Payroll File Maintenance in the User s Guide section for a detailed explanation of each line item. General Employee Data Figure 1.19. Employee file maintenance, general information screen. To add a new employee: Step 1 Step 2 From the Payroll Menu, type 12 to run the Employee File Maintenance program. You will be presented with the standard add-delete-modify prompt: (A)dd, (D)elete, (M)odify, (N)ext, (P)revious or (E)nd _ Type A to add a new employee. 34

Step 3 Enter an employee code for this new employee, followed by <ENTER>. If the code you enter is already used by another employee, you will be alerted to re-enter another code. Each employee must be assigned a unique employee code. This code can be alpha-numeric up to 6 characters. Refer to the section entitled Coding Schemes for Employees in the Reference Guide of this manual for suggestions. Figure 1.18 is the general administrative information screen. Personal information is entered on this screen as well as default information that will carry through when entering timecard data. You will be prompted for the first thirteen lines of information. Other information can be entered during this session or can be entered at another time. It is a good practice to enter all relevant information at this time to reduce the chance of an error later on. Line 1 Line 2 Last Name: The cursor is already on line 1. Enter the employee s last name. Use the left and right arrow keys or the backspace key to correct any mistakes. Press <ENTER> when done. First Name: Enter the employee s first name, then press <ENTER>. Line 3-5 Address Line #1 3: Enter the employee s street and/or post office address, city, state and zip code on these lines. Line 6 Line 7 Line 8 Line 9 City: Enter the city or province desired. State / Zip: Enter the state one column, zip code in the next column. Social Security Number: Enter the employee s social security number, then press <ENTER>. Phone Number: Enter the employee s telephone number, then press <ENTER>. If you do not know the employee s address or telephone number and want to input this information later, simply press <ENTER>. The cursor will move down to the next field. 35

Line 11 The cursor will move to the department code. Enter the appropriate department. Line 12 Line 13 Start Date: Enter the employee s date of hire. Birth Date: Enter the employee s date of birth. Step 4 The cursor will then return to the top of the page. To change the information on any line, enter the line number and <ENTER> to edit that line. You have completed entering the required general information for an employee. It is recommended that you fill in the rest of the input fields with the appropriate information for a more complete record. Refer to the tutorial entitled Lesson 1: Performing File Maintenance for a complete explanation of each line item. This is page 1 of 6 total pages for an employee record. To access any of these pages, use the <Page Up> or <Page Down> keys to move between the pages desired. The pages are defined below: Page 1 General Employee Data Page 2 Deductions # 1-12 Page 3 Deductions #13-24 Page 4 Page 5 Page 6 Wages #1-18 By Period, QTD, YTD Hours #1-18 By Period, QTD, YTD User defined personnel information 36

Deductions (pages 2 & 3) Figure 1.20 is the screen where you specify what deductions were taken for each employee. NOTE: Any rates that you enter here will override the defaults set up in Program 28, Page 2: Deductions in the system control setup. For each deduction, you will specify if it is taken and, if so, when is it taken, the rate, the maximum year-to-date limit, and month-to-date, quarter-to-date and year-to-date withholding amounts already taken out. This information is necessary for accurate quarterly reports and for deduction calculations, especially those with specified maximum limits. This ensures an employee is not charged too much withholding on subsequent payroll runs this year. Figure 1.20. Employee file maintenance, deductions screen. Step 1 Step 2 From the Payroll menu, type 12 to run the maintenance employee file program. Enter the employee code and then enter <Page Down> to access page 2, deductions 1 through 12. Type the line number, followed by <ENTER>, of the deduction you want to modify. Only twelve deductions are displayed at one time. To see the next twelve, enter <Page Down>. 37

Step 3 Period: Under the PD column, enter the code that will define when this deduction is taken, then press <ENTER>. They are: A Always taken out for each payroll run (unless manually overridden). 1 5 Taken out only on the specified week (1 = first week, 2 = second week, etc.) 0 Never take this deduction. Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Rate: Enter the amount to take out, then press <ENTER>. The rate entered here refers to the type of deduction. If the deduction is a percentage deduction, then a percentage must be entered. If the amount is a fixed amount, then this amount will be deducted. Limit: Enter the maximum amount that can be taken out per year, then press <ENTER>. If you enter 0.00 then the limit stated in Program 28, Page 2: Deductions will be used. M-T-D: Enter the amount already deducted for the current month, if desired, then press <ENTER>. Q-T-D: Enter the amount already deducted for the current quarter, then press <ENTER>. This figure is used in quarterly reports. Y-T-D: Enter the amount already deducted for the current year, then press <ENTER>. This amount should include the total for the year-todate including the deductions for the current month and quarter. To exit, type E (End) and <ENTER>. To continue, enter <Page Down> until you get to page 4. 38

Wages and Hours (pages 4 & 5) Figure 1.21. Employee file maintenance, wage earnings screen. Step 1 For each pay type, you want to enter the quarter-to-date earning for the current quarter, then the year-to-date earnings for this year. This information is necessary for accurate quarterly reports. Type the line number of the pay type, then press <ENTER> until the cursor is at the Q-T-D column. Enter the amount the employee has been paid for this quarter and for this pay type, then press <ENTER>. The WEEK 1 through WEEK 5 are only necessary if you want monthly figures. All amounts entered in the quarterly column should include the monthly totals, if any, and the year-to-date figures should include the quarter-to-date figures. The totals for all types of pay and hours are shown on the bottom of the screen. Under the Y-T-D column, enter the amount the employee has been paid for this year for this pay type, then press <ENTER>. 39

Step 2 Repeat this step for all applicable pay types. When done, type E (End) and <ENTER>. To access the Hours information, press <Page Down>. The screen will look like Figure 1.21 except the top line will read HOURS RECORD. Step 3 Step 4 Repeat Step 1. This time, enter quarter- and year-to-date hours worked for each applicable pay type. When done, type E (End) and <ENTER>. You will see the same prompt as in Step 2 and have the same options to go down a page to see the personnel record or page up to go back a page or press E and <ENTER> to end. 40

Personnel Data Record (Page 6) At the prompt at the top of the screen, enter <Page Up> to review the employee s personnel record. See Figure 2.03. The data fields are userdefinable in System Control, Program 28, page 8: Define Personnel Record. Figure 2.03. Payroll file maintenance, personnel records screen. Entering information on this screen is done by typing the line number of the field you want to modify, then entering the new information. To exit this program, type E (End), then E and <ENTER> to return to the payroll menu. 41

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II. Payroll, User s Guide Payroll Menu Figure 2.01. Payroll menu. The options shown on the Payroll Menu are the basic programs that allow for daily processing of the Payroll System. Items are generally grouped in a sequence to allow the user an easy path to follow for daily operations. The four main groups daily maintenance, reporting, inquiry, and system administration and maintenance are arranged by activity type. The first group, daily maintenance, comprises the first ten programs on the menu. It consists of recording employee timecard data, printing registers and summary reports, printing the employee paychecks, then updating and posting the Payroll Module. Provisions are also included to record handwritten checks. Program 23 is used for this purpose. The second group, reporting, allows various groupings of items for periodic reporting requirements. These include various quarterly reports, W-2 tax forms and the employee listing. Programs 14, 15, 17, 18, 20 and 26 comprise this group. 43

The third group, inquiry, allows you to review on the screen general employee information, wage and deduction figures for each pay period, month, quarter and year, as well as personnel records information. Program 19, the Employee File Inquiry program is used for this purpose. The last group, system administration and maintenance, provides basic housekeeping activities that are performed on an as-needed basis. The rest of the programs belong to this group. 44

Tutorial Lesson 1: Performing File Maintenance Figure 2.02 is an example of the permanent record for our test employee MART. Each employee must be set up here before they can be used in the system. They must be set up here before they can be used in Data Collection, Job Costing & Productivity and Payroll. The file maintenance program maintains all employee codes, names, addresses, tax information, pay information, personal data, etc. The operator can use this program to add, delete or modify employee information. When adding employees, it is very important to use proper coding methods to come up with the best code for each new employee. It is highly recommended that a single person be in charge of adding new employees or approving their codes to ensure consistent coding for maximum efficiency for all concerned. (See Coding Schemes in the reference section for suggestions.) Figure 2.02. Employee file maintenance, general information screen. 45

The available options when working with this program are: (A)dd (D)elete (M)odify (N)ext (P)revious (E)nd Add a new employee to the Payroll System. Delete an existing employee from the Payroll System. Modify an employee to change an address, phone number, etc. Go to the next employee if scanning for accurate detail information. Go to the previous employee if scanning for accurate detail information. End this program and return to the Payroll Menu. NOTE: Before you can delete an employee from the employee file, the employee must first have an inactive status on line 10. Selecting D (Delete) from the adddelete-modify prompt, then entering the employee code will bring up the employee s general information screen and prompt you for final verification: DELETE (Y, N) Entering Y (Yes) will remove the employee from the file, rendering the employee unavailable for inquiry, reports or modification. It is very important not to delete an employee during the year if they have any payroll data on file. This will cause all reports to be incorrect. For this tutorial, we will review the master information for our test employee, MART. Step 1 Step 2 From the Payroll Menu, type 12 to run the Employee File Maintenance Program. You will be presented with the standard add-delete-modify prompt: (A)dd, (D)elete, (M)odify, (N)ext, or (E)nd M Press <ENTER> to modify an employee, then enter the employee code MART and <ENTER>. If you do not have a test employee set up in your employee file, then choose option A to add a test employee to your file. Duplicate the information from Figure 2.02. NOTE: Delete the employee when finished with the tutorials. Step 3 To change any line item, type the reference line number of the line you want to change, enter the new information, then press <ENTER>. 46