This screen is used to define the various wage categories, tax withholdings, and deductions used in the payroll system, and to accumulate hours and wages or other amounts from the paychecks.
Any category you plan to use on the other payroll-related screens—Employee (E), Payroll Setup ('E), or Paycheck Entry (P)—must be defined on this screen first.
It is recommended that your ABC Accounting representative works with you to set up Payroll—with tax and wage categories—properly when you first purchase the software. If changes are necessary, contact your accountant and your ABC Accounting representative to ensure that the entries and changes made are correct.
NOTE: If you are using Job Costing, but not the optional Payroll Module, this screen is only used with the Employee (E) screen. Only the first 8 fields of the K screen (the upper left-hand corner) are utilized in this situation. Note that any documentation referring to the Job Costing Module (Material, Job, or Job Detail screens) does not apply to most users. It is a custom feature.
Helps Accessed From the Tax and Wage Tables (K) Screen
Ctrl+N—clears the screen, without saving or un-saving the current record, and sets the reference number to the next available number.
F5—exits lookup.
F6—opens lookup.
F9—saves record.
Shift+F9—deletes record.
F10—goes to the Selection Screen.
Shift+F10—goes to the Menu Bar.
Esc—exits one level.
Alt+F4—exits ABC.
Edit Help (K)
Ctrl+A—Adds a blank line at the cursor. (Used only with repeating fields.)
Ctrl+C—Copies text. Place your cursor on the field that contains the text you wish to copy and press Ctrl+C. Then move your cursor to the field you want your information copied to and use the paste (Ctrl+V) function.
Ctrl+E—Erases the line at the cursor. (Used only with repeating fields.)
Ctrl+V—pastes text. Any text that has been copied (with Ctrl+C) or cut (with Ctrl+X) may be pasted into any other field by using the Ctrl+V function. Simply place your cursor in the field you want to copy the information to and press Ctrl+V.
Ctrl+X—cuts text. Place your cursor on the field you want the text removed from and press Ctrl+X. The text will disappear. If you want to replace this text in another field, simply move your cursor to that field and use the paste (Ctrl+V) function.
Ctrl+Z—Zap! Undoes latest changes to the line the cursor is on.
Home—places the cursor at the beginning of the field.
End—moves the cursor to the end of a field.
Page Up—moves the cursor up a page.
Page Down—moves the cursor down a page.
Shift+Up arrow—moves cursor to first line on repeating fields.
Shift+Down arrow—moves cursor to next available line on repeating fields.
Ctrl+D—Duplicates. If you want to enter the same, or almost the same information under a different code, type in the new code and press Ctrl+D. You will be prompted to enter the code of the record you wish to Duplicate.
F7—loads previous record.
F8—loads next record.
Ctrl+G—Gets or jumps to the address of a certain field. When you press Ctrl+G, a message box appears telling you the address of the field your cursor is on. You are also given opportunity to jump to another address. Enter the location number of the field you want to jump to, or enter F and the field number of the field you want to jump to.
Ctrl+J—accesses a Journal to record anything that you want to remember about this category. To see previous notes, press Ctrl+J. When you are done, press F9. The notes will be saved with the date and time.
Ctrl+K—accesses a second journal. It is similar to the Ctrl+J journal, but saves your notes with only the date.
Ctrl+W—puts the currently loaded code on a Word Processor list. To see the list, press F10, W, Ctrl+N (to clear screen) and then type KLIST. Ctrl+W
Shift+F3—brings up an accountant's* calculator when your press it the first time. The second time you press it, the final calculations showing are entered into the field the cursor was on.
+ adds or totals - subtracts / divides
* multiplies ) clears ( exits calculator
= totals or equals
*If you are not familiar with an accountant’s calculator, you may want to take a little time to familiarize yourself with the differences in usage here. Figures are entered as positive or negative: i.e. 100+50-75= would be entered as 100+; 50+; 75- The answer calculates each time you press the positive or negative sign. The = sign or Enter key seldom need be used unless you are multiplying or dividing.
Code (K.0)
Enter a code of 1 to 3 characters that you will use to reference the wage, tax, or deduction category. It may be letters, numerals, or a combination of both. Do not begin any codes with a zero (0) or a number sign (#). These codes are pre-entered, and are used to specify different types of wages, taxes, deductions, and calculations.
Here are codes which have been entered for your convenience:
JL—JOB LABOR
JLO— JOB LABOR OVERTIME
JLP—PROPRIETOR'S WITHDRAWAL
JLQ—PROPRIETOR'S OVERTIME
MA—MATERIAL REIMBUSEMENT
MI—MILEAGE REIMBURSEMENT
OT—OVERTIME
PR—PIECE RATE
RT—REGULAR TIME
SL—SALARY
SLW—SALARY + WAGES
VA—VACATION PAY
NOTE: If Salary is used with Report # 4-41, PAYROLL FROM TIME CARDS, the codes used MUST be SAL or start with SL to work properly. Do NOT use these codes for anything else but salaries.
Enter a description of the wage, tax, or deduction.
Enter an abbreviated description of the item. This will be used on the paycheck stub, Employee (E) and Paycheck Entry (P) screens, and on some reports.
Enter the general ledger account number that has been assigned for this wage, tax, or deduction category.
The Employee (E) screen accumulate hours, units, and taxable wages. Those figures are then posted to specific fields in the Tax and Wage Categories (K) screen, to be calculated for tax purposes. The code entered in this field for this tax/wage category determines how and where the posting is to be done.
Enter the code number as follows:
026—REGULAR HOURS
027—OVERTIME HOURS
028—VACATION HOURS
029—HOLIDAY HOURS
030—SICK HOURS
031—#1 OTHER HOURS
032—#2 OTHER HOURS
033—#3 OTHER HOURS
034—FEDERAL WITHHOLDING WAGE
035—FICA WITHHOLDING WAGE
036—STATE WITHHOLDING WAGE
037—CREDIT WEEKS
038—LOCAL WAGE
039—MEDICARE WITHOLDING WAGE
040—OTHER WITHOLDING WAGE
The Employee (E) screen accumulates and stores wage, tax, and deduction information. Those figures are then posted to specific fields in the Tax and Wage Categories (K) screen, to be calculated for tax purposes. The code entered in this field for this tax/wage category determines how and where the posting is to be done.
Enter the code number as follows:
001—REGULAR WAGE
002—OVERTIME WAGE
003—VACATION WAGE
004—HOLIDAY WAGE
005—SICK PAY
006—#1 OTHER WAGE
007—#2 OTHER WAGE
008—BONUS & COMMISSIONS
009—FEDERAL WITHHOLDING TAX
010—FICA WITHHOLDING TAX
011—STATE WITHHOLDING TAX
012—OTHER STATE WITHHOLDING TAX
013—LOCAL WITHHOLDING TAX
014—MEDICARE WITHHOLDING
015—OTHER WITHHOLDING TAX
016—DEDUCTION/EARNING #1
017—DEDUCTION/EARNING #2
018—DEDUCTION/EARNING #3
019—DEDUCTION/EARNING #4
020—DEDUCTION/EARNING #5
021—DEDUCTION/EARNING #6
022—DEDUCTION/EARNING #7
023—TIPS
024—INSURANCE
025—TEMPORARY DEDUCTION
The code you enter here helps you track total hours due the employee, such as vacation or sick hours. This total is not cleared at the end of the year.
Enter any of the following codes:
096—VACATION HOURS DUE
097—SICK HOURS DUE
098—PERSONAL HOURS DUE
099—OTHER HOURS DUE
The code you enter here will indicate where the date and amount of the privilege tax or other annual one-time deduction should be tracked.
The following two number codes may be used:
092—PRIVILEGE TAX DEDUCTION
094—OTHER ONE-TIME DEDUCTION
Enter 1 for wages, D for Deductions.
With D the Deduction is itemized on the right side of the paycheck stub when you print checks with Report # 4-27, PRINT PAYROLL CHECKS.
Other available codes:
B—for Benefits
E—for Excused Hours
H—for Holidays
I—for Indirect
P—for Piece Rate
S—posts to Subcontract field
T—Taxes
U—for Unexcused Hours
V—for Vacation
Also:
F—when a Fixed amount of the wages, each pay period, are deducted, exempt from Federal W/H but subject to FICA, Medicare, State & Local taxes.
Use K when a percentage of the wage is deducted instead of a fixed amount. F or K are used with 401K Plans. See "401K Plan Setup" in your manual.
M—for Material or Mileage (non-labor reimbursement). M can also be used for a wage or deduction which is nontaxable. Using M, the hours are not included in the Total Hours on the Time Card Screen.
N—for Nontaxable deduction (such as section 125 plan insurance deductions) not taxed by Fed. W/H, Medicare & FICA, but taxed by State & local.
O—for nontaxable deduction (section 125 plan insurance deductions) that are exempt from Fed. W/H, Medicare, FICA, AND State W/H, but taxed by local.
See FUTA setup on the Employee screen.
(ABC JOB COSTING MODULE—Enter 1, 2, or 3, here, when setting up Labor Categories to specify where it is to post; to Hours 1, Hours 2 or Hours 3, on the Job Detail ('D) screen. It will post to Hours 1 if this field is blank.)
Note that any documentation referring to the Job Costing Module (Material, Job, or Job Detail screens) does not apply to most users. It is a custom feature.
401K Plan benefits provided to an employee are exempt from federal tax only. They are subject to social security, Medicare, state and local taxes.
OR If the 401K benefits are a percentage of total wages:
On the E screen of each employee that has 401K benefits, use either 401 or K10 as one of your Category codes.
With 401 as the Category, enter the amount of the benefit as a negative figure.
With K10 as the Category, enter a positive number to indicate what percentage of the total wage is 401K benefits.
This is an informational field for entering a remark.
In the event of a long remark, just keep typing. The field will scroll and allow you to enter quite a lot here. To view it later, click on the little curved arrow icon. A box opens up for viewing whatever was entered here in its entirety.
A second use for this field works on any payroll code of 30 or greater. In this case, you may use the Remark field to enter numbers (from the list below) to reduce taxable wages. Numbers should be separated by commas.
Always consider calling your ABC Accounting representative to make changes of this nature.
1—REGULAR WAGE
2—OVERTIME WAGE
3—VACATION WAGE
4—HOLIDAY WAGE
5—SICK PAY
6—#1 OTHER WAGE
7—#2 OTHER WAGE
8—BONUS & COMMISSIONS
9—FEDERAL WITHHOLDING TAX
10—FICA WITHHOLDING TAX
11—STATE WITHHOLDING TAX
12—OTHER STATE W/H TAX
13—LOCAL WITHHOLDING TAX
14—MEDICARE WITHHOLDING
15—OTHER WITHHOLDING TAX
16—DEDUCTION/EARNING #1
17—DEDUCTION/EARNING #2
18—DEDUCTION/EARNING #3
19—DEDUCTION/EARNING #4
20—DEDUCTION/EARNING #5
21—DEDUCTION/EARNING #6
22—DEDUCTION/EARNING #7
23—TIPS
24—INSURANCE
Setting Up Taxable Wage Deductions
Category records having a Calculate # greater or equal to #30 may make deductions to the wage before the tax is calculated. The Wage or Deduction number listed on the field help for the Non-tax/Remark is placed into the Non-tax/Rmk field. Multiple deductions may be entered separated by commas. A Remark may not start with a number from 1 to 25 and must follow the deduction #s.
For example:
The code entered here indicates which routine should be used to calculate this wage or deduction amount.
The following codes determine how wages are entered on the Paycheck Entry (P) screen:
The following codes determine how taxes are calculated when a record is saved on the Paycheck Entry (P) screen. Taxable wages, when the calculate # is 30 or greater, may be reduced by entering deduction #s in the Non-tax/Remark field.
1. It uses the number of OTHER Dependents as entered in the Employee (E) screen.
2. It subtracts the amount of Federal taxes from the Employee's wages before the state tax is calculated.
1. It uses the number of OTHER Dependents as entered in the Employee (E) screen.
2. It rounds the tax to the nearest dollar.
This is an informational field used with some state tax programs.
ABC JOB COSTING MODULE—Enter the amount per hour that you have to pay out for labor overhead such as worker's compensation, etc. When labor is entered on the Time Card (T) screen, the labor burden is added to the labor cost. Now that burden is included in the total labor cost posted to the job.
Note that any documentation referring to the Job Costing Module (Material, Job, or Job Detail screens) does not apply to most users. It is a custom feature.
ABC JOB COSTING MODULE—Enter a percent of wages that you have to pay out for labor overhead such as worker's compensation, etc. When labor is entered on the Time Card (T) screen, labor burden is added to labor cost. Now the burden is included in the total labor cost posted to the job.
This field is used with federal taxes and some state taxes. Before calculating taxes for an employee, this amount may be deducted from his yearly wage for each dependent he claims.
Tax Rate % (K)
Enter the percent that is to be used to calculate the tax specified by this record.
For example, enter 15.00 for 15%.
Anniversary #
If you are entering an automatic vacation credits table, use this field to enter an anniversary number on which an employee becomes eligible for vacation. See “Vacation Credits” in Paycheck Entry (P) screen helps.
The tax will be calculated on any wage that is more than the amount entered here and less than the amount entered in the OVER WAGE field on the next line. If there is nothing entered here, the tax will be calculated on any wage that is less than the amount entered in the OVER WAGE field on the next line.
Taxes such as Occupational Privilege Tax are exceptions for this field. Such taxes are deducted once a year, when the employee's year-to-date wage exceeds a certain limit. Enter that limit here.
FICA Tax is another exception. Enter the FICA ceiling into this field. Remember that the Social Security part of the FICA Tax has one ceiling and the Medicare portion of it another.
Vacation Hours
If you are entering an automatic vacation credits table, use this field to enter the number of vacation hours to be credited. See “Vacation Credits” help.
Plus Amount Tax (K)
After the tax amount has been calculated using the TAX RATE % and OVER WAGE fields, that amount will be added to the amount entered in this field. The total will be deducted from the employee's gross pay.
For taxes such as FICA and Occupational Privilege Tax, this amount will be deducted from the employee's gross pay once a year, when his year-to-date wage exceeds the limit entered in the OVER WAGE field on this line.
Interval (Years)
If you are entering an automatic vacation credits table, use this field to enter the award interval in years. See “Vacation Credits” help.