Abc accounting 11. 0 Reference Guide

This is the paycheck number. This should match the number on the check the employee receives. The computer automatically sets this field to the next available check number.

If there is a ledger specified in the Payroll & A/P Ledger # field on the Setup Company G/L (#) screen, the computer compares the last check number used on that ledger with the last number used for a paycheck. This field is then set to one number greater than the higher of the two.

If no ledger is specified on the Setup Company G/L (#) screen, the computer numbers the checks in sequential order independently of the General Ledger numbers. (Note that the number entered into the Payroll & A/P Ledger # field is the ledger number which appears when accessing the Ledgers Select (-) screen and not the general ledger account number for the checking account.)

Enter the last day of the pay period covered by this check. This date is for information purposes, and appears on the paycheck stub and on some payroll reports.

Enter the date of payment. This is the date that appears on the check when printing paychecks with Report # 4-27, PRINT PAYROLL CHECKS.

This date determines when employee information is posted and rolled. Posting and rolling takes place on a per employee basis, when the first paycheck is entered in a new quarter for him. After an employee's file has been posted and rolled, prior payroll reports can not be obtained for him. Therefore, it is important that the End-of-quarter procedures are followed and all Quarter End reports are printed before entering the first paycheck in a new quarter.

When entering the first paycheck in a quarter, you will be prompted with the following message: "Are all Quarter End Reports Printed? Enter Password." Enter PASS only if this has been done.

When entering the first paycheck of the year you will be prompted with the following message: "Are all year end reports and W-2 forms printed? Enter Password." Enter PASS only if this has been done.

Employee Code & Name (P)

This code references the Employee (E) screen. Enter the code which you assigned on the Employee (S) screen, and the computer will load the employee's name, wage categories, rates, and deductions.

The Wage and Deduction Category Codes which appear in this section of the screen are loaded from the defaults which are set on the Employee (E) screen.

These defaults may be changed here manually. Any changes which you enter here will only apply to this one paycheck.

To enter wages or deductions which you did not establish on the Employee (E) screen, enter the codes that are set up on the Category & Tax Tables (K) screen for those wages or deductions. The rate will load from the first line of the WAGE/DEDUCTION information entered on the Employee (E) screen.

If the Wage Category on the line on which you are entering calculates on the basis of hourly wages, enter the total number of hours that apply to the category and rate. If the line on which you are entering indicates piece rate wages, enter the number of pieces.

If you already have calculated your payroll by pressing the F9 key, the tax withholdings and other deductions are also printed on this part of the screen. If the category on this line is an automatic tax deduction, the amount in this field is the taxable wage.

Rate (P)

This loads from the Employee (E) screen (for hourly wages, piece rate wages, etc.) when the employee code is entered. You may change this rate here but the new rate will only affect the current paycheck. If you wish to change the rate permanently, change it on the Employee (E) screen.

If no rate is entered here, and the Calculate# field of the wage's K screen record contains either code #24 or #25, the computer will input the rate from the first line of the Employee earning information section on the Employee (E) screen. This is the bottom third of the E screen.

If no rate is carried across from the Employee (E) screen, enter the rate manually.

The wage calculates automatically when an hourly or piece rate type pay is used. If the employee receives a salary, this loads from the Employee (E) screen, but may be changed here if necessary. Deductions that are set up on the Employee (E) screen show in this field as a negative amount.

BALANCING PAYROLL

This procedure should be followed with each payroll. It provides a manual check on the computer so that if any problems occur, they will be detected immediately.

If you do payroll for more than one classification of employees, you will need to balance each classification separately. The reports referred to in this section must all be printed for the employee classification you are currently balancing. Otherwise, your payroll will appear to be out of balance.

1. Make sure all paychecks for the current payroll are entered.

2. Print Report 4-26, PAYCHECK SUMMARY. When asked to Enter Employee Code or Enter, press Enter to print all employees. You will then be given the option to specify

whether you want the report printed for a certain class of employees, or to press Enter for all employees. If you are doing payroll for only a certain class of employees, enter the classification. If the payroll covers all employees, simply press Enter.

3. Scan the report for accuracy. Make any necessary changes on the Paycheck Entry (P) screen.

NOTE: Changes may not be made after paychecks are printed.

4. If any changes have been made to paychecks appearing on the report printed in Step # 2, reprint it.

5. The Year-to-date NET PAY total from the last Paycheck summary plus the NET PAY total from this report should equal the Year-to-date NET PAY total on this report.

If the reports do not balance with each other, check the following:

- Have any checks been skipped between the two reports?

- Are there any checks that have been included on both reports?

- Have any checks been deleted since the last Paycheck Summary was printed?

6. Keep the current Paycheck Summary report in a permanent file.

7. Print paychecks with report 4-27, PRINT PAYROLL CHECKS.

8. The payroll file is now ready to begin the new payroll.

Entering Initial Employee Balances (P)

When setting up payroll from a manual system, you will probably find that the computer's calculations for the withholding taxes are slightly different than your manual calculations. Enter the employee's wage information and press F9. The computer will calculate the withholding taxes and the NET AMOUNT and display them on the screen. Instead of pressing Enter to save the paycheck, use the arrow keys to move the cursor to the WAGE/DED(-) field for the automatic taxes that need to be changed. Change them to agree with your manual tax calculations.

NOTE: Normally the taxable wage amounts do not need to be adjusted. Changing these could cause an error when printing the employee's W-2 form at the end of the year. After adjusting the withholding taxes, press Alt+A. The

computer will recalculate the NET AMOUNT, but not the automatic withholding taxes. If the information is correct, press Enter to save the paycheck.

WARNING: Do NOT use Alt+A to adjust wages. Alt+A should only be used to adjust the automatic withholding taxes when first setting up the payroll system.

Federal Payroll Requirements (P)

This is a summary of Circular E, Employer's Tax Guide.

SOCIAL SECUTITY, MEDICARE and FEDERAL WITHOLDING Social Security & Medicare rates are 6.2% and 1.45% for employee and employer.

If amount of SS, Medicare and witholding is less than $500.00 per quarter, pay quarterly to the IRS by Apr.30, Jul.31, Oct.31 and Jan.31, using Form 941.

If amount is over $500.00, pay monthly to bank with Federal Tax Deposit Coupon (Form 8109) by the 15th of the next month. (Mail at least 2 days before.)

Form 941 must be filed quarterly with the IRS whether you pay to the bank or not. If you pay monthly to the bank, you have 10 extra days to file Form 941.

Make sure the bank where you make your deposits is an authorized depositary.

FUTA - FEDERAL UNEMPLOYMENT TAXES FUTA rate is 6.2% of first $7000 earned. Up to 5.4% can be paid to SUI and credited against FUTA amount. At least .8% has to be paid as FUTA.

If FUTA is more than $100 in a quarter, pay to bank with Federal Tax Deposit Coupon (Form 8109) by Apr.30, Jul.31, Oct.31 and Jan.31.

If FUTA is less than $100 in a quarter you should carry the amount forward to the next quarter.

If FUTA is less than $100 for the year, pay it to the IRS with form 940 by Jan. 31.

Form 940 must be filed annually with the IRS whether you pay quarterly or not. If FUTA has been paid quarterly, you have an extra 10 days to file form 940.

ORDERING FORMS If you do not have the preprinted Federal Tax Deposit Coupons (Form 8109) you may use Form 8109-B. Order by phone from your local IRS office (see the phone book). Be sure to have your EIN number handy, when you contact the office.

Forms 940 and 941 can be ordered by calling 1-800-TAX-FORM.

Payroll Procedures Using Time Cards (P)

1. Employees are setup on the E screen. Make sure that the Status M/P, the Pay Period and Pay date (the previous pay period) fields have been completed. Wage categories and rates are set at the bottom of the E screen. Commonly used wage categories are JL for Job Labor, JLO for Job Labor Overtime, RT for Regular Time, OT for Overtime, HP for Holiday Pay, VP for Vacation Pay, SP for Sick Pay and SL for Salary.

2. On the T screen, enter the Employee's Name, the ending Date and the total number of hours (including overtime, vacation and holiday hours). Below, enter the job #, job class (if desired), the code for the equipment or labor, and the number of hours for the line. Use as many lines as needed.

3. Run Report # 4-41, PAYROLL FROM TIME CARDS. Press Enter until you get to Period End Date. Enter the correct date. Press S for screen. Choose the correct letter for your pay period, (W,B,M,T,Q,S,Y). Make sure you have the correct starting check #. Type in the correct number if necessary.

4. To view the payroll checks calculated by the computer from the time cards, press F10 and then P. Use the F7 key to page back through the calculated records for each employee.

5. Run Report # 4-26, PAY CHECK SUMMARY, using the check numbers from the P screen. Review the report, make sure the hours are reasonable and no one has been missed. As a final accuracy test, make sure the Year-to-date net pay

(on the bottom line) from your previous PAY CHECK SUMMARY, plus the net pay on the current PAY CHECK SUMMARY (on the 3rd line from the bottom) equals the Year-to-date net pay (on the bottom line) on the current report.

6. Run Report # 4-27, PRINT PAYROLL CHECKS.

7. Run Report # 4-39, PAYROLL CATEGORY & POSTING REPORT, to post the checks to the General Ledger. If you are running this report on your computer screen instead of the printer, BE SURE to press Enter until you are back at the G/L & PAYROLL REPORTS screen. This effects the way the payroll data is posted.

Payroll Procedures - Not Using Time Cards (P)

1. Employees are setup on the E screen. Make sure that the Status M/P, the Pay Period and Pay date (the previous pay period) fields have been completed. Wage categories and rates are set at the bottom of the E screen. Commonly used wage categories are JL for Job Labor, JLO for Job Labor Overtime, RT for Regular Time, OT for Overtime, HP for Holiday Pay, VP for Vacation Pay, SP for Sick Pay and SL for Salary.

2. Press F10 and then P. Type the Period End date, the last day in the period that you are paying. Press Enter. Type the Pay Date. Press Enter. Type the code of the Employee who the check is for. Press Enter. The computer loads the employee's name, labor categories and wage rates.

3. Enter the number of hours for each category of wage. Press F9. The computer calculates the witholding tax and enters the net amount of the pay check near the top right corner of the screen.

4. Run Report # 4-26, PAY CHECK SUMMARY, using the check numbers from the P screen. Review the report, make sure the hours are reasonable and no one has been missed. As a final accuracy test, make sure the Year to Date net pay (on the bottom line) from your previous PAY CHECK SUMMARY, plus the net pay on the current PAY CHECK SUMMARY (on the 3rd line from the bottom) equals the Year-to-date net pay (on the bottom line) on the current report.

5. Run Report # 4-27, PRINT PAYROLL CHECKS, to print the payroll checks.

6. Run Report # 4-39, PAYROLL CATEGORY & POSTING REPORT, to post the checks to the General Ledger. If you are running this report on your computer screen instead of the printer, BE SURE to press Enter until you are back at the G/L & PAYROLL REPORTS screen. This effects the way the payroll data is posted.

State Payroll Requirements (P)

PA STATE REQUIREMENTS Use Form UC2A to file the PA State Unemployment Taxes. This is done quarterly by April 30, July 31, October 31, January 31.

Use Form PA501/W3 to file the PA Withholding Taxes by April 30, July 31, October 31 and January 31.

PA COUNTIES - Most PA Counties also have quarterly payroll forms which are due on the same dates as the state quarterly forms.

OTHER STATES - Most States collect payroll tax. This varies greatly from state to state. Ask your accountant for what the requirements are in your state. See your ABC dealer for help in setting up the correct tax tables for your state.

OTHER LOCALITIES - Many states do not collect a local or county payroll tax. Some times this is included in the state payroll tax. Ask your accountant for what the requirements are in your locality. Your ABC dealer can help you in setting it up.

END-OF-QUARTER PROCEDURES

Employee reports for the prior quarter can not be obtained after a paycheck has been entered in the new quarter. Therefore, it is important that End-of-quarter procedures are followed after the last pay in a quarter, and before the first pay in a new quarter.

1. Make sure all paychecks for the quarter have been entered.

2. Print Report # 4-30, QUARTER PAYROLL REPORT. Compare Total Wage with Quarter-to-date (Report # 4-26) for the quarter. The two totals should be equal. This will confirm that the total is accurate, since you have been manually checking the Year to Date NET PAY totals on the Paycheck Summary report every pay. You may want to print several extra copies of this report to send in with your quarterly payroll tax returns.

3. Print Report # 4-31, EMPLOYEE QTD SUMMARY. The totals should equal the QTR to Date totals on the last Paycheck Summary for the quarter.

4. Print Report # 4-32, EMPLOYEE YTD SUMMARY. The totals should equal the Year to Date totals on the last Paycheck Summary for the quarter.

5. Keep the Quarter Payroll Report, Employee QTD Summary, and Employee YTD Summary in a permanent file. The payroll system is now ready for the next quarter's entries.

Payroll Accounting Tips (P)

PAYROLL OVERPAYMENTS (without Job Costing)

If you discover that you were overpaying an employee, and you want to deduct an amount from his paycheck each pay period, over a period of time, to make up the difference; here's how to do it. (If you want to make all the adjustment in one pay check, go to the P screen, press Shift+F1, select Questions, and then option Z.)

1. Find out how much in gross wages he was overpaid and how much was withheld in the various categories of withholding taxes. Use Report # 4-40 and sort by employee to find total wages and deductions for the time period.

2. Set up a Payroll Overpayment Reversal account on the G screen. (ABC's standard Payroll Overpayment Reversal account # is 139.)

3. Setup an Overpayment Reversal Category on the K screen. Use OPR as the code and use the G/L # setup in step 2. Use 022 in the Amount/Tax field and #29 in the Calculate# field.

4. Setup an Overpayment Category on the K screen. Use JOP as the code and use your regular Labor G/L Account #. (ABC's standard # is 615.) Use 001 in the Amount/Tax field and #29 in the Calculate# field.

5. On the P screen, enter the employee's code. On the first Cat.Description line, enter JOP as the code and enter the gross overpayment as a negative.

6. On the 2nd line enter OPR as the code but let the rest of the line blank.

7. Press F9 to save. This causes Witholding Codes to

display on the screen. Make sure the gross overpayment amount is listed as a negative number with each deduction category.

8. Enter the actual amounts that were withheld as positive figures. Use Alt+A to calculate. This displays a negative check amount. Put the negative amount on the 2nd line with OPR as the code, but type it in as a positive. Use Alt+A again. The check amount should be blank and the message should prompt you to press Enter to save.

9. On the E screen, use the code OPR on FLD# 22 as the DED/ADV CODE. In the PAY DED field, enter as a positive figure the amount you want to deduct from each paycheck to recover the overpayment. In the TOT AMT field, enter the total amount of the overpayment to be recovered. The computer will deduct the specified amount from each paycheck till the total has been reached.

PAYROLL OVERPAYMENTS (with Job Costing) To correct job cost amounts because of overpayment, do the 9 foregoing steps; then the following:

10. On the T screen, enter the Employee Code, but do not enter anything in Total hours. Below, enter the Job Class and the Job # which need the costs reversed. Enter a negative 1 in Total Hours and change the rate to the amount of overpayment.

11. On the next line enter the same Job Class and Job #. Enter 1 in Total Hours and blank out the rate. Use F9 to save.

12. On the E screen for the Employee, change the Next Time Card number to the number immediately following the Time Card which you just used on the T screen in step 10. (This is so the computer does not calculate that time card when you do your next payroll.)

VACATION CREDITS (P)

Vacation due an employee can be entered manually each year or as desired. You can track other benefit hours such as sick pay in the same way. There is also an option to apply vacation credits to employees automatically. We'll discuss the manual method first, then the automatic.
Manually Entering Vacation Credits

You can enter vacation credits on an employee's paycheck at any time. If vacation is based on an employee's hire anniversary, you would enter the credit on the first paycheck after the hire date.

On the paycheck, after entering the hours and rates as normal, enter the vacation credit code (typically VCR), then enter the number of vacation hours due, with a minus sign (-). For example, if you're crediting two weeks' vacation (ten 8-hour days), enter -80.00.

The number of vacation hours due the employee will appear on each pay stub until the hours are used up. This balance does not clear at the end of the calendar year, but carries into the next year.

To pay vacation wages, enter the vacation pay code (typically VP) on a paycheck, and the number of hours for which to pay the employee. The computer will deduct the vacation hours paid from the hours due.

You can track sick hours due the same way, but using codes for sick hours credit and sick pay (typically SCR and SP).

Vacation for a Salaried Employee

Enter vacation credits for a salaried employee just as you would for an hourly employee. Enter the vacation code as normal, the number of vacation hours, and an appropriate hourly rate. If you are paying some salary in addition to the vacation, enter the additional amount on the line where the salary normally appears.

For example, an employee has a weekly salary of $1,000, and you want to pay them $1,000 for a week's vacation. Clear the normal salary line. Enter the vacation code (VP), 40.00 hours, and a rate of 25.00.

Suppose you are paying 3 days' vacation plus 2 days' salary. Enter $400 (2 days) on the normal salary line, then enter vacation pay on the next line as 24.00 hours (3 days) at $25.00 per hour.

Automatic Vacation Credits

A uniform method of awarding vacation, makes it possible to apply vacation credits automatically. These credits are awarded at intervals based on an employee's Hire Date. Whenever an employee reaches an anniversary that entitles him to vacation, the computer will enter the vacation credit on his next paycheck.

1. Set up an automatic vacation credit category on the K screen. For a G/L #, you can use a suspense or transfer account since there are only hours included in this category. Enter 028 for the Hours/Unit/Wage field, 096 for Hours/Deduct, and #35 for Calculate#.

2. After you enter Calculate #, a heading will appear for the Automatic Vacation Credits Table. This table has the

following fields: Anniversary #, Vacation Hours, and Interval (Years). Enter the table, as shown in the example below. Save the record.

3. On the Employer screen ('e), in Automatic Vacation Credit, enter the code for the category you have set up. Save the record. This enables automatic vacation credits.

To pay out vacation wages, follow the procedures described above for the manual credits method.

You can also adjust vacation credits manually (using the VCR category) as described above. Use a negative number of hours to inrease vacation credit, or a positive number to decrease it.

To disable automatic vacation credits entirely, clear Automatic Vacation Credit on the Employer screen ('e).

Automatic Vacation Credits Table Example

Suppose an employee gets 7 days vacation (56 hours) each year after 2 years, then 10 days (80 hours) after 5 years, and an extra day (8 hours) each year after that until 20 years, when it levels off at 25 days per year. You would enter the chart as follows. (If Interval is specified and the following Anniversary# is blank, the following Vacation Hours is the amount to add at each interval.)
ANNIVERSARY# VACATION HOURS INTERVAL (YR)

2.00 56.00 1.00

5.00 80.00 1.00

8.00

Calculating the Withholding Taxes (P)

On a paycheck:

After the employee's wages and deductions have been entered, press F9. The computer will automatically calculate the Net Amount and the withholding taxes and display them on the screen. If the information is correct, press Enter to save the paycheck.

END-OF-YEAR PROCEDURES

1. Follow the End-of-quarter procedures.

2. Any figures entered in the TOT AMT column in Section 2 of the Employee (E) screen need to be changed to reflect the amount that still needs to be deducted. These deduction accumulations are zeroed at the end of the year. If they are not changed to reflect the remaining balance, the comptuter will begin the deduction accumulations over.

3. Make an end-of-year backup. Keep this backup until the end of the next year.

Payroll Accounting Tips (P)

PAYROLL OVERPAYMENTS (small amounts, to correct in one payroll period)

If you use Time Cards:

At the bottom of the Time Card, after you entered the hours for the current period, enter the Job Class and the Job # which were overpaid. Enter a negative 1 in Total Hours and change the rate to the amount of overpayment. On the next line enter the same Job Class and Job #. Enter 1 in Total Hours and blank out the rate. Use F9 to save. Do the rest of your Payroll as you normally would.

If you do not use Time Cards:

On the P screen after you enter the current number of regular and overtime hours, use the same Category Code as you normally do on the blank line. Enter a negative 1 in the HRS/TAX WAGE column and in the RATE column put in the amount of the overpayment deduction. On the next line use the same Category Code again, put a positive 1 in the HRS/TAX WAGE column and blank out the RATE column. Use F9 to save and do the rest of the Payroll as you normally do.

K - Payroll Category Setup
CATEGORY & TAX TABLES SCREEN EDIT HELP

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