<Page Up> Move the cursor up a page.
Entering Initial Employee Balances (P)
Federal Payroll Requirements (P)
Payroll Procedures Using Time Cards (P)
Payroll Procedures - Not Using Time Cards (P)
State Payroll Requirements (P)
Vacation for a Salaried Employee
Automatic Vacation Credits Table Example
Calculating the Withholding Taxes (P)
<Edit Help . . .> New record <Ctrl N> Add a line <Ctrl A> close lookup <F5> Erase a line <Ctrl E> close all lookups<Shift F5> to first line <Shift Up> open lookup <F6> to next blank line <Shift Down> alternate lookup <Shift F6>
PAYROLL SCREEN EDIT HELP
<Ctrl A> Add blank line at cursor (repeating fields)
<Ctrl E> Erase line at cursor (fepeating fields)
<Ctrl Z> Undo present changes to line cursor is on.
<Crtl Home> Move the cursor to the beginning field on the screen from any location.
<Ctrl End> Move the cursor to the ending (non-repeating) field on the screen from any location. Use Shift Up arrow and Shirt Down arrow to go to the first and last repeating field, such as in an inventory item list.
<Page Up> Move the cursor up a page.
<Page Down> Move the cursor down a page.
<Shift Up-Arrow> Move cursor to first line on repeating fields
<Shift Down-Arrow> Move cursor to next available line on repeating fields
PAYROLL SCREEN FILE HELP
<F5> exit lookup <Shift F5> close all lookups
<F6> open lookup <Shift F6> alterate lookup
<F9> save record <Shift F9> delete record
<F10> selection screen <Shift F10> go to menu bar
<Esc> Exit one level <Alt-F4> exit ABC
PAYROLL SCREEN LOAD HELP
<Alt F> search Forward for next paycheck for employee
<Alt N> load Next employee
<Alt P> load Previous employee
<F7> open/load previous record
<F8> open/load next record
<Shift F7> When the cursor is on an indexed field, press
<Shift F8> When the cursor is on an indexed field, press
PAYROLL SCREEN TOOLS HELP
<F4> Start macro from the line the cursor is on. Press <Shift F4> Record Macro. Press <Shift F3> calculator. Use + to add and total and - to
subtract. Use / to divide and * to multiply. Use ) to
clear and ( for off. Use = or
Check # (P)
If there is a ledger specified in the Payroll & A/P Ledger
# field on the System Setup 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 System Setup 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 with
Period End (P)
Pay Date (P)
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
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)
Category (P)
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 screen (E), enter the codes that are set
up on the Category & Tax Tables screen (K) for those wages
or deductions. The rate will load from the first line of
the WAGE/DEDUCTION information entered on the Employee
screen (E).
Hours/Taxable Wage (P)
If you already have calculated your payroll by pressing
the
Rate (P)
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 screen (E). This is the bottom third of the E
screen.
If no rate is carried across from the Employee screen (E),
enter the rate manually.
Wage/Deduction (P)
BALANCING PAYROLL
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
employees, or to press 3. Scan the report for accuracy. Make any necessary change
on the Paycheck Entry screen (P).
NOTE: Changes may not be made to paychecks after they have
been printed.
4. If any changes have been made to paychecks appearing on
the report printed in Step 2, reprint it.
5. To make sure payroll is in balance, get the Year to
Date NET PAY total from the last Paycheck Summary, and add
the NET PAY total from this report to it. The result
should match 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)
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
computer will recalculate the NET AMOUNT, but not the
automatic withholding taxes. If the information is
correct, press WARNING: Do NOT use
Federal Payroll Requirements (P)
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)
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
4. To view the payroll checks calculated by the computer
from the time cards, press 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
Payroll Procedures - Not Using Time Cards (P)
2. Press
3. Enter the number of hours for each category of wage.
Press 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
State Payroll Requirements (P)
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
1. Make sure all paychecks for the quarter have been
entered.
2. Print report 4-30 QUARTER PAYROLL REPORT. Compare Total
Wage with QTR 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)
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, from 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, sorting by Employee
to find total wages and deductions for the time period.
2. Setup 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 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
where OPR is the code, but type it in as a positive. Use
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 pay check
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 pay
check till the total has been reached.
PAYROLL OVERPAYMENTS (with Job Costing)
If you wish to correct the job cost amounts because of the
overpayment, after you do the foregoing 9 steps, do 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 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)
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 in the same way, but using
codes for sick hours credit and sick pay (typically SCR
and SP).
Vacation for a Salaried Employee
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
To set up automatic vacation credits:
1. Set up an automatic vacation credit category on the
Category screen (K). For G/L#, you can use a suspense or
transfer account, as there will be no amounts, only hours,
with this category. Enter 028 for Hours/Unit/Wage, 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
Calculating the Withholding Taxes (P)
After the employee's wages and deductions have been
entered, press
END-OF-YEAR PROCEDURES
2. Any figures entered in the TOT AMT column in Section 2
of the Employee file (E) 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)
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
If you do not use Time Cards:
<Alt A> Save Adjustment Entry. When using
<Alt B> search Back for previous paycheck for employee
<Alt W> Put the currently loaded code on a Word Processor
list. To see the list, press F10, W, Ctrl N (to clear
screen), and then type PLABELS. To learn more, press <W>.
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.
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 code references the Employee file (E). Enter
the code which you assigned on the Employee screen
(E), 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 screen (E).
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.
This loads from the Employee file (E) (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 file (E).
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
file (E), but may be changed here if necessary.
Deductions that are set up on the Employee file
(E) show in this field as a negative amount.
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.
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
This is a brief summary of Circular E, Employer's Tax
Guide.
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.
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.
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.
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.
PAYROLL OVERPAYMENTS (without Job Costing)
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.
To track vacation credits for a salaried employee, enter
vacation credits just as you would for an hourly employee.
When paying vacation wages, 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.
If you have a uniform method of awarding vacation to all
employees, you may be able 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 automatically enter the vacation credit on
his next paycheck.
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
20.00 200.00 1.00
On a paycheck:
1. Follow the End-of-Quarter procedures.
PAYROLL OVERPAYMENTS (small amounts, to correct in one
payroll period)
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