MSI Payroll Version 6.0

Transcription

1 MSI Payroll Version 6.0 User s Guide Municipal Software, Inc W. Winchester Road, Ste 209 Libertyville, IL Phone: (847) Fax: (847) Contents are the exclusive property of Municipal Software, Inc. Copyright All Rights Reserved. 1

2 TABLE OF CONTENTS NEW FEATURES IN VERSION 6.0 PAYROLL... 6 PAYROLL LOGIN SCREEN... 8 PAYROLL PASSWORD MAINTENANCE... 9 PAYROLL AT A GLANCE PAYROLL INSTALL SCREEN PAYROLL SYSTEM MAIN MENU CYCLE MENU CREATE HOURS WORK FILE TIME CARD ENTRY Time Card Entry tab: Excludes tab: Tax Override tab: Deduction Overrides tab: Other Overrides tab: PRINT HOURS WORK SHEET CALCULATE PAYCHECKS Previous Check Usage message Negative Paycheck (aka employee has more deductions than net pay ) message EMPLOYEES WITH NO TAXES OR NO PENSIONS Report PRINT DEDUCTIONS REGISTER What is the Auto Deposit Total Amount? CHECK PROCESSING MENU Print Paychecks How to reprint a group of checks? Print Direct Deposit Remittances Assign Checks to be Reprinted PRINT DISTRIBUTION REPORT DISTRIBUTE TO TWO ACCOUNTING PERIODS POST TO GENERAL LEDGER Why don t my Post Payroll to General Ledger totals match the Distribution Journal? A0 UPDATE PAYROLL FILES B0 UPLOAD PAYROLL ESP FILES AND PDFS MONTHLY MENU MONTHLY PROCESSING INQUIRY MENU EMPLOYEE INQUIRY EMPLOYEE PAY/DEDUCTION INQUIRY EMPLOYEE BENEFIT HOURS INQUIRY CHECK INQUIRY CHECK REGISTER INQUIRY REPORTS MENU EMPLOYEE LISTING YTD EARNINGS REPORT STATE RETIREMENT REPORT For Illinois users CONVERTING THE IMRF.CSV FILE TO SUBMIT ONLINE TO IMRF For Wisconsin users For Minnesota users STATE UNEMPLOYMENT REPORT For Illinois users

3 4.42 For Wisconsin users For Minnesota users FEDERAL QUARTERLY PAYROLL REGISTER REPORT VOLUNTARY DEDUCTIONS REPORT YTD HOURS REPORT CHECK WARRANT REPORT A0 CHECK RECONCILIATION REPORT B0 BENEFIT HOURS REPORT C0 EEOC REPORT D0 INSURANCE DEDUCTIONS REPORT E0 SALARY REPORT F0 UNPAID EMPLOYEE REPORT MAINTENANCE MENU EMPLOYEE MAINTENANCE Personal Info tab: Pay Info tab: Benefit Info tab: Ins. Info tab: Tax Info tab: How do I setup a Tax-Exempt employee? GL Distribution tab: Direct Deposit tab: Vol. Deductions tab: Comments icon: DEPARTMENT CODES JOB CLASS CODES JOB STATUS CODES HOURS TYPE CODE PENSION CODES INSURANCE CODES VOLUNTARY DEDUCTION CODES FEDERAL TAX RATES A0 STATE TAX RATES A1 For Illinois employees A2 For Wisconsin employees A3 For Minnesota employees B0 BANK CODES C0 BENEFIT ACCRUAL CODES D0 LIABILITY CODES E0 TERMINATION CODES SUPPORT MENU EMPLOYEE YTD MAINTENANCE YTD Pay and Tax Maintenance YTD Deductions Maintenance YTD Hours Maintenance Taxable and Pension Wages EMPLOYEE MAINTENANCE AUDIT REPORT W-2 AND 1099-R PROCESSING SYSTEM SETUP System Defaults Signature Setup EMPLOYEE SERVICES PORTAL

4 6.51 Portal Configuration Re-Generate Export Files ATTENDANCE ENTERPRISE INTERFACE Define AE Benefit Codes Export AE Employee Info CHECK RECONCILIATION Enter Cleared Checks Update Cleared Checks ARCHIVE Delete History Delete Check History Remove Invalid Accrual Codes from the Employee File FILE IMPORT/EXPORT ASCII Master Download A0 CREATE NACHA FILE B0 CHECK VOID MENU B1 CHECK VOID B2 VOID A RANGE OF CHECKS C0 TRANSFER EMPLOYEE NUMBER D0 NAME SORT E0 BACKUP DATA FILES APPENDIX A SAMPLE REPORTS CREATE HOURS WORK FILE REPORT HOURS WORKSHEET DIRECT DEPOSIT AUDIT REPORT DEDUCTIONS REGISTER SAMPLE CHECK PRINT (STUB-CHECK-STUB) SAMPLE CHECK PRINT (FULL-PAGE) SAMPLE CHECK PRINT (DIRECT DEPOSIT SUMMARY/FULL-PAGE) SAMPLE DIRECT DEPOSIT REMITTANCE (WITH BENEFITS, BORDERS, AND EMPLOYER INFO) SAMPLE DIRECT DEPOSIT REMITTANCE (WITHOUT BENEFITS, BORDERS, OR EMPLOYER INFO) PAYROLL DISTRIBUTION JOURNAL REDISTRIBUTE PAYROLL FOR G/L REPORT PAYROLL POSTED JOURNAL EMPLOYEE LISTING (DETAILED) EMPLOYEE LISTING (SUMMARIZED) YTD EARNINGS REPORT (ALL DETAIL FOR SPECIFIED DEPARTMENT AND JOB STATUS) STATE RETIREMENT REPORT (ILLINOIS) STATE RETIREMENT REPORT (WISCONSIN) STATE RETIREMENT REPORT (MINNESOTA) STATE UNEMPLOYMENT REPORT (ILLINOIS) STATE UNEMPLOYMENT REPORT (WISCONSIN) STATE UNEMPLOYMENT REPORT (MINNESOTA) FEDERAL QUARTERLY PAYROLL REGISTER REPORT VOLUNTARY DEDUCTIONS REPORT YTD HOURS REPORT (SUMMARY) YTD HOURS REPORT (DETAIL) CHECK WARRANT REPORT (SUMMARIZED) CHECK WARRANT REPORT (NOT SUMMARIZED) CHECK RECONCILIATION REPORT BENEFIT HOURS REPORT EEOC REPORT

5 INSURANCE DEDUCTIONS REPORT (DETAILED) SALARY REPORT (DETAILED) SALARY REPORT (SUMMARIZED) UNPAID EMPLOYEE REPORT DIRECT DEPOSIT ACCOUNT REPORT (PRINTED FROM EMPLOYEE INQUIRY/MAINTENANCE) PR EMPLOYEE COMMENTS (PRINTED FROM EMPLOYEE INQUIRY/MAINTENANCE) EMPLOYEE MAINTENANCE AUDIT REPORT LIST CHECKS TO CANCEL (GENERATED FROM ENTER CLEARED CHECKS OFF SUPPORT MENU) CHECK VOID REPORT (PRINTS WHEN VOIDING A RANGE OF CHECKS) APPENDIX B SUBMITTING MAGNETIC MEDIA FOR ILLINOIS STATE UNEMPLOYMENT B.10 REQUIREMENTS B.20 DISKETTE SPECIFICATIONS B.30 SUBMITTING TAPES/CARTRIDGES AND DISKETTES APPENDIX C CHECK VOID GUIDE C.10 VOIDING A SPOILED/RUINED CHECK C.20 VOIDING A CHECK ISSUED TO AN EMPLOYEE C.30 CHECKLIST FOR VOIDING A CHECK C.40 HOW DO I RE-ISSUE AN EMPLOYEE S PAYROLL CHECK? C.50 CHECKLIST FOR RE-ISSUING A CHECK C.60 VOIDING LIABILITY CHECKS C.70 HOW DO I RE-ISSUE A LIABILITY CHECK? APPENDIX D BENEFIT HOUR PROCESSING APPENDIX E LIABILITY CHECK IMPLEMENTATION GUIDE APPENDIX F DIRECT DEPOSIT IMPLEMENTATION GUIDE F.10 SETTING UP SYSTEM F.10a Bank Codes F.10b System Defaults F.10c Voluntary Deduction Code(s) F.10d Employee Maintenance Direct Deposit tab F.10e Employee Maintenance Vol. Deduction tab F.10f Setting up Multiple Direct Deposits for one employee F.20 PRE-NOTE PROCESSING F.30 DIRECT DEPOSIT PROCESSING F.40 NACHA FILE LAYOUT F.50 GLOSSARY APPENDIX G RECORD LAYOUT EMPLOYEE ASCII FILE APPENDIX H RECORD LAYOUT TIME CARD INTERFACE APPENDIX I DEDUCTIONS REGISTER / DISTRIBUTION JOURNAL BALANCING APPENDIX J FORM 941 EMPLOYER'S QUARTERLY FEDERAL TAX RETURN APPENDIX K EMPLOYEE MAINTENANCE AUDIT REPORT APPENDIX L HOW FEDERAL TAX WITHHOLDING IS CALCULATED APPENDIX M ISSUING PAYCHECKS WITH NEGATIVE DEDUCTIONS AND HOURS APPENDIX N IMPUTED INCOME (AKA TAXABLE BENEFITS) APPENDIX O ATTENDANCE ENTERPRISE CSV FILE LAYOUTS O.10 AEHOURS.CSV FILE LAYOUT O.20 MSIEMP.CSV FILE LAYOUT O.30 MSIBEN.CSV FILE LAYOUT APPENDIX P ADVANCED EARNED INCOME CREDIT (EIC) GUIDE APPENDIX Q WHAT TO DO WHEN PENSION IS UNDER-DEDUCTED

6 APPENDIX R WHAT TO DO WHEN PENSION IS WITHHELD BY ACCIDENT APPENDIX S PROCESSING PAYROLL WITH EMPLOYEE SERVICES PORTAL (ESP) APPENDIX T UPDATES FOR IMRF TIER 1 AND 2 REPORTING NEW FEATURES IN VERSION 6.0 PAYROLL 1. All screens now open reduced down. In previous versions the screens were all maximized, which created too much empty space for those users who have their PC s monitor set to a resolution higher than 800x All screens are now the standard Harris gray color with blue Currently Processing bars. This provides an updated look and feel and eliminates any remaining black/white DOS screens for all standard MSI programs. 3. The F4 button will now work on ALL fields with a lookup option available. Pressing F4 on your keyboard will open the associated lookup screen. Clicking the lookup icon will also work. 4. Added new calendar icon to all date fields. Clicking the icon will open a calendar display to assist in the entry of the appropriate date: 5. Added a new option off the Support menu to Backup Data Files. 6. Removed all Social Security # references and replaced first 5 digits with * anywhere number is printed. 7. Added a new option off the Support menu to void a range of checks. 8. Updated the Create Hours Workfile screen to ease the selection process. 6

7 9. In Time Card Entry s Deduction Override tab, increased the number of voluntary overrides from 8 to 99 and have added a message to display when that maximum is hit. 10. In Time Card Entry s Deduction Override tab, when the binoculars are selected to lookup a deduction, only the current employee s assigned pension, insurance, or voluntary deductions will display. 11. In Time Card Entry a new icon has been added to the toolbar. The icon looks like this: When it s selected, a listing of the current employee s additional pay types will display. 12. In Time Card Entry, if more benefit hours are being paid to an employee than they have available a message will display that there are not enough available hours and display what that employee actually has available for that benefit. 13. In Time Card Entry, when available benefit hours are added via the Hourglass icon on the toolbar the system will now store that information so that it can reported on both the Hours Work Sheet and the YTD Hours Report. 14. Added a new Employee Inquiry option off the Inquiry menu, which will bring up the Employee Maintenance screen with all of the fields grayed out so that the detail can be viewed but not modified 15. Added an option to the Employee Listing report to detail employees terminated within a specified date range. 16. In Employee Maintenance, new Termination Date and Reason for Termination fields have been added. 17. Now all reports (except the YTD Hours Report) run based on check date. Previously some reports asked for period end date and others asked for check date. The YTD Hours Report still runs using the period end date because the data it reads doesn t contain a check date to reference. 7

8 PAYROLL LOGIN SCREEN Enter your assigned password here and then press Enter or click OK. 8

9 PAYROLL PASSWORD MAINTENANCE Passwords are maintained by a manager within each office. When establishing a password/user name for the payroll (PR) program, the following options are available: Access Levels Select the checkbox next to each Access Level to grant access to the corresponding menu within the MSI-Payroll system that the user logging in with this password should have rights to access. Selecting Processing 1 will give rights to the Cycle menu and all its submenus within Payroll. Selecting Processing 2 will give rights to the Monthly menu within Payroll. Selecting Inquiry will give rights to the Inquiry menu within Payroll. Selecting Reports will give rights to the Reports menu within Payroll. Selecting Maintenance will give rights to the Maintenance menu and all its submenus within Payroll. Selecting Support will give rights to the Support menu and all its submenus within Payroll. NOTE: Both the File and Help menus within Payroll are available to all users who log into the Payroll system with a valid password. Relief when out of office This option is not used for the Payroll system. It is only used for the MSI-Purchase Order program. 9

10 Payroll Access Rights Selecting Allowed to delete records from the Audit File will make the below option available to this user when they access the Employee Maintenance Audit Report off the Payroll Support menu: Note that in order for the Audit Report to work at all, the Audit Employee Maintenance option in Payroll System Defaults must be selected. Selecting Allow Access to Time Card Entry will give you the option to limit which department this employee can access via Time Card Entry. If this box is not selected the employee will have access to all employees via Time Card Entry (assuming the user has rights to the Cycle Menu). Prior Fiscal Year Access This option is not used for the Payroll system. It is only used for the MSI-General Ledger program. 10

11 PAYROLL AT A GLANCE 11

12 PAYROLL INSTALL SCREEN This screen can only be accessed and modified by a Harris Computer Employee. If you require any changes herein, please contact your Trainer (if you are not live on the system) or MSI Software Support. Payroll Employee Number Mask This allows you to establish how you will maintain employee ID numbers in the system. For more detail see the description on the screen shown above. Beginning Fiscal Month Key in the number of the month that constitutes the company s first month of their fiscal year. Pre-numbered Checks? Select this option if the payroll checks are already numbered. Check Print Line Adjustment For users who run laser checks (aka stub/check/stub) this number will be For users who run full page checks (aka check on bottom) this number will be If you increase this number by 0.15 then the Check Date, Amount, and Legal Line will move down one full line. If you decrease this number by 0.15 then the same detail will move up one full line. Set Audit Function? This function is not set on the System Defaults screen within the Payroll application. 12

13 Split Distribution Journal? If this option is selected, the Distribute to two Accounting Periods option will become available within the Cycle menu of Payroll. Remote Time Card Access? Selecting this option will activate various features within the MSI-Payroll system. For instance the new icon will become active on the Payroll System Main Menu. This icon opens the Remote Payroll Entry menu. Find Last Check Run by Period End Date? This references how the display boxes on the Payroll System main menu will derive their information. It runs significantly quicker if this flag is not set which allows the system to read the Check Reconciliation file and pull the details associated with the highest, updated check number. But in the event that this logic set is not appropriate, then this flag can be set and the check history file will be read for the most recent Period End Date and the details associated with that run will be displayed. General Ledger Interface? Select this option if the MSI-Payroll system will interface with the MSI-General Ledger system. AE Payroll Interface? Select this option if the MSI-Payroll system will interface with Attendance Enterprise. Project Costing Interface? Select this option if the MSI-Payroll system will utilize MSI-Project Costing to track project expenses. Human Resources Interface? Select this option if the MSI-Payroll system will interface with the MSI-Human Resources system. Employee Services Portal Interface? Select this option if the MSI-Payroll system will interface with Employee Services Portal (ESP). 13

14 0.00 PAYROLL SYSTEM MAIN MENU This is the main menu for the Payroll System. You can access each option in the system here and all processing begins with this menu. The following options are available: TOOLBAR MENU File This option exits processing from the Payroll System and returns you to your desktop. Cycle This menu is used to generate the payroll for each pay period. It takes you through the entire cycle, from entering hours, to check printing and updating the check run to the payroll history file. Monthly This program is used monthly to control the amounts that are accumulated in the monthly, quarterly and year-to-date fields. It is used at the end of each month before a new payroll begins to clear the previous month s pay buckets. Inquiry This menu is used to make inquiries into the data in the system. It allows you to view the information only. No changes can be made to it with these programs. 14

15 Reports This menu contains the options that generate reports for the Payroll System. Maintenance This menu is used to maintain employee files for each person on the payroll, the codes used within those files, and codes used in other programs. Tax rate tables are also maintained here. Support This menu contains programs that are used less frequently than others, but are needed for proper functioning of the system. This includes W-2 forms printing and year-to-date maintenance. Help This selection offers different methods for contacting Municipal Software, Inc. and contains important program information. Last Check Date Used: This field will display the date of the checks from the last UPDATED pay run. ALWAYS check this field before starting a new payroll work file (Create Hours Work File) to make sure that the last run processed is the run displayed. If it is not, then call MSI for assistance. Last Period End Date: This field will display the period end date from the last UPDATED pay run. ALWAYS check this field before starting a new payroll work file (Create Hours Work File) to make sure that the last run processed is the run displayed. If it is not, then call MSI for assistance. Total Number of Checks: This field will display the number of checks that were printed during the last UPDATED pay run. ALWAYS check this field before starting a new payroll work file (Create Hours Work File) to make sure that the last run processed is the run displayed. If it is not, then call MSI for assistance. NOTE: The Last Check Date Used, Last Period End Date, and Total Number of Checks display is based upon the "newest" Period End Date's check run details. So if a check run was processed with a Period End Date of 12/10/08 and then a second check run was processed with a Period End Date of 12/01/08, it would display the details of the 12/10/08 check run on the main menu because that is the newest Period End date in the system even though it was not the last check run processed. 15

16 1.00 CYCLE MENU This menu is used every pay period to generate the payroll for your employees. It contains each step in the payroll cycle, beginning with Create Hours Work File and ending with either Update Payroll Files or Upload Payroll ESP Files and PDFs (for those who use the Employee Services Portal). Each option is listed below and must be taken sequentially for proper functioning. Create Hours Work file This program is the first step in the payroll cycle. It is used to indicate which employees are to be included in the payroll. It creates a work file for those employees and includes the base hours and rates of pay that they normally receive. Time Card Entry This option is used to modify the hours work file that was created for the payroll. Any changes to the regular hours which will be used to determine the gross pay are made here. This includes hours entry for part-time employees. Print Hours Worksheet This option is used to print a worksheet that lists the gross pretax earnings of all employees in this payroll. It serves as a worksheet to check that the correct employees will receive the proper amount of pay, before net pay is calculated in the next step. Calculate Paychecks This option takes the gross pay for all employees included in the payroll and calculates their net pay. This includes taxes, pensions, voluntary deductions, and other net pay calculations. Print Deductions Register This program prints a register of all deductions that were taken from the employees gross pay to determine their net pay. It also provides totals for the employers portion of payroll expenses. 16

17 Check Processing Menu: Print Paychecks This option is used to print the employee paychecks that have been calculated using the previous steps. Print Direct Deposit Remittances This option will be grayed out unless the Direct Deposit Remittances flag in System Defaults is selected. Once activated via System Defaults, this option will be used to print out pay stubs to give to those employees who receive 100% of their net pay as direct deposit. Employees who receive part of their net pay as direct deposit and part via check will NOT receive a separate remittance; instead the direct deposit detail will print out on their paycheck s stub. Once this feature is activated, individual s direct deposits will no longer print out onto check stock (although one check will still be used to print out a total of all net pay issued via remittances during the run). These remittances are designed to be printed to blank paper. Assign Checks to be Reprinted This option will allow you to reprint a RANGE of checks. It is useful if say you are printing out 100 checks and one gets jammed in the printer so the last 15 checks come out on wrong number. You can use this feature to reprint the last 15 checks to a new set of check numbers so they will be properly tracked within the payroll system. Print Distribution Report This option is used to generate a report that shows the effects of this payroll in the general ledger. It is only used if the MSI General Ledger System has been installed at your installation and is interfaced with the Payroll System. Distribute to two Accounting Periods This option has to be activated by an MSI Representative. Once setup, you can use this feature to split a given payroll between two accounting periods. This is most commonly used at the start of a new fiscal year where part of the pay run is for work completed in the prior and part in the new fiscal year. Post to General Ledger This option posts the information from the current payroll to the general ledger. It is used only if the MSI General Ledger System has been activated at your location. Update Payroll Files This option is the final step in the payroll process (if you do not utilize the ESP online interface). It takes the information created by this payroll and updates the files within the Payroll System. Upload Payroll ESP Files and PDFs For those who use the ESP online interface, this will be the final step of the payroll process. It submits the payroll s information to be displayed online by those employees who ve setup their online accounts. The ESP interface is an additional purchase and so this option will be grayed out for those who do not utilize this service. 17

18 1.10 CREATE HOURS WORK FILE Running this program is the first step in the payroll creation cycle. It is used to define pay period information and which employees are to be included in the payroll. It creates a work file of standard hours for the employees and prints a worksheet of this data. This worksheet is used in the next step to make any modifications to the work file. The following fields are used to begin the payroll generation. Begin New Payroll Cycle? If you are starting a new payroll (after the last payroll has been successfully updated), then this field will default to Yes so that a new hours work file can be created. If an hours work file already exists (meaning one was created and not updated), then this field will default to No. Leave the selection at No in order to edit the work file s details (Pay Period, Check Date, etc) without overwriting the existing time card entries. If you want to begin a new payroll without updating the existing workfile, then simply click Cancel to change this option back to Yes. 18

19 CAUTION!!!! If you receive the below message when you select Yes to Begin New Payroll Cycle? : Then that means the last hours work file to be created has not been successfully updated. If you choose OK on this message then that work file will be wiped out and all time card entries will be lost. If you receive this message and you are unsure of how to answer then select Cancel and call MSI Software Support at for assistance. Pay Period This field is used to indicate the pay period being processed. A pay period will be numbered as (1), (2), (3), (4) or (5), where Period 1 is the first payroll of the month, Period 2 the second, etc. The number of the period determines calculations that will be made for deductions based on frequencies and standard liability check processing along with any benefits set to only accrue on a given pay period. When selecting Period 1, the program will prompt you with the following message: It is intended to remind you to make sure that monthly processing has been completed prior to beginning the first payroll of a new month. Select No if you ve not run Monthly Processing and you ll be taken back to the Payroll System Main Menu to run that procedure before proceeding. Period End Date Enter the date of the last calendar day in the pay period. Meaning, the day through which the employee s are being paid. The program has been designed to make sure that the date entered here is likely to be a valid end date. If you are prompted with the below warning, then verify that the date entered is accurate before proceeding: 19

20 A NEW feature in version 5.0 payroll will generate the below warning if the period end date you entered has already been used in the system. THIS WARNING SHOULD NOT BE IGNORED!! If you are prompted with the below message, make sure that the employee(s) you are about to pay during this new pay run have not already received a check with this same period end date. If they have, then you will not be able to update this payroll to their history files. In fact, when the MSI-Payroll system tries to update this run and encounters an employee who already has this same period end date, the update process will halt and your data s integrity will be compromised. Recovery from this type of scenario is not always possible. It is HIGHLY recommended, if you get this error, to press Cancel and select a different period end date. Simply making the date one day earlier or later is usually all that s required. Accounting Period If the MSI-General Ledger application is installed, select the number of the accounting period to which data in this payroll will be posted to the general ledger. Check Date The issue date that will appear on the checks is entered in this field. The program is designed compare the Period End Date and Check Date in order to warn you that there might be a discrepancy between the two. If you are prompted with the below warning, simply verify both the Period End Date and Check Date for accuracy: 20

21 The program is also designed to look for possible invalid dates. If you are prompted with either of the below warnings, then verify the date entered for the Check Date is valid before proceeding: 21

22 Beginning Check Number The number that will be assigned to the first check printed is entered in this field to determine check order. This will default the value from the Next Check Number field in the System Defaults. Liability Control This field controls which liability checks will be printed during the payroll process. It is only used if Print Liability Checks in System Defaults is selected. If Print Liability Checks is not selected, you will receive the following warning: A. (S)tandard: Indicates that the liability codes with frequencies that correspond with the specified Pay Period will be printed. This is the default entry. B. (N)one: Indicates that no liability checks should be printed, regardless of the Pay Period. This is recommended for use with special check runs that may fall between standard pay periods, or whenever it is not necessary to distribute liability checks C. (A)ll: Indicates that a liability check should be printed for all codes with accumulated amounts, regardless of the specified Pay Period. NOTE: If (N)one is used, the liability amounts accumulated for this check run will still be held in the liability code table for payment at a future time. Please check the methods of pay to be included This next section is used to indicate which employees are to be included in the work file. Select the applicable employees by selecting the appropriate pay method. The program will include any employee with a corresponding pay method code in their maintenance files. The pay methods listed below are available. NOTE: Only employees with qualifying status codes in their master files will be included using any of the following methods: A. All Methods of Pay Use this option to include all active employees in the payroll check run. B. No Methods of Pay (Empty Hours Work File) This option creates an empty work file, meaning no employees are imported. It is useful when a single or small group of checks are being processed. All hours that are to be paid will need to be entered manually via Time Card Entry. C. Selected Method of Pay SALARY and HOURLY The remaining fields are used include only those employees who are setup with the selected Pay Method on their Master file. Indicate any combination of hourly and/or salary pay methods for weekly, bi-weekly, semi-monthly, monthly or quarterly pay periods. 22

23 D. Time Card Interface Selecting this option allow you to import an ASCII filed created from an outside vendor source into the payroll work file to track and process hours worked for your employees. This option eliminates manual entry of hours worked for the employees included in this file. (See Appendix H for the required file layout). Once all your selections are made, click OK to allow the system to create the work file. Click OK once you ve verified all selections made are accurate. Selecting OK will create the new hours work file or save any edits to the existing work file. Will clear your selections and allow you to start over. Exits you from this program without saving any changes specified. If, after clicking OK, you see the Apply Job/Wage Change to PR screen appear (see below), then changes have been made to an employee s Job/Wage setup in the MSI-Human Resources module and the MSI-Payroll module is asking for permission to import the updates. You can remove a given update by highlighting it and selecting the Remove button before clicking OK. Click OK on the Apply Job/Wage Changes to PR screen if you want to accept all the listed selections. 23

24 If you don t want to import any of the listed changes, then select Exit. Note: When selecting which records to list for import, the Payroll system first looks to see if the Payroll Updated field in Job/Wage Maintenance is flagged. As long as it s blank then the system will proceed to compare the Payroll s Period End Date (specified when processing Create Hours Work file ) to the Effective Date in HR s Job/Wage Maintenance screen. If the Period End Date is one day prior to the Effective date, then the changes will be available for import. Otherwise the Effective Date must be on or before the Payroll s Period End Date for the changes to be listed for import. So, for instance, if the Effective Date in HR is 12/01/08, then the changes will be available for import if the period end date in Payroll is 11/30/08, 12/01/08, or any day after. While the program is creating the payroll work file you will be prompted with the below message: After it is created, you will be prompted with the message below and the CREATE HOURS WORKFILE report will print that lists all employees (sorted by Employee ID) that were included in the pay run along with their pay rate, base hours and gross pay. It then gives totals for the number of employees and gross pay. This printout serves as your worksheet for any modifications that are to be made to the work file during editing in the next step. NOTE: The CREATE HOURS WORKFILE report will not print when an Empty Hours Workfile is generated. This is because the report lists the employees imported to the pay cycle, and an Empty Hours Workfile does not import any employees, it gives you the opportunity to input the specific employees to be paid out. 24

25 1.20 TIME CARD ENTRY This program is used to make any changes to the work file that was created for the current payroll being processed. These include adding in additional employees and/or making any changes to the standard base hours that are paid to the employee, such as for benefit hours or part-time employee hours. Net pay is calculated using the gross pay that is established in this program. If no changes are made in this program, net pay is calculated using the employees base hours. The following fields are used to modify the work file. NOTE: Only those employees that are to have changes made to their base hours or for which hours are to be initially entered need be accessed using this program. All other employees will be paid for their base amounts. Time Card Entry tab: Employee # The identification number of the employee to be modified is entered here. Binoculars are available, if you need to look up the number. Check Sequence # The field will default to 00. If the employee is to receive more than one check during this pay period then number up sequentially with 01 for the second check, 02 for the third, etc. 25

26 Dept, Job Class, and Job Class Pay Rate The employee s department code/description, job class, and default pay rate as defined in their employee maintenance screen are displayed here. Use the next section to maintain the specific types of hours for which the employee is being paid on the check sequence indicated at the top of the screen. Each separate Hours Type that is being paid will have a unique line # to distinguish it from other entries. The employee s base hours (displayed as REG hours code) and any additional pay types will automatically appear as separate line items (unless this is an Empty Hours Workfile). Click the additional pay type icon to see a listing of the current employee s additional pay types as defined in their Employee Maintenance setup. # This field is used to identify each individual line item of hours that is maintained. It will run sequentially from 01 through however many hours codes are paid. Action Date This is the date that the hours were earned. The period end date will default, but may be modified. Hours Type The code that represents the type of hours that this employee is being paid for is entered here (i.e. Vacation Hours, Regular Hours, Overtime Hours). Rate The rate of pay the employee receives for the indicated hours is entered here. Hours The number of hours being paid for this code is entered here. Default Override G/L Acct. # Use this field to specify an alternate G/L account number to which these wages should be posted. Modifying the default account will override both the employee and hours code G/L setups. 26

27 Click the icon to view the employee s disbursement account(s) as setup in Maintenance: Project Use this field to tie the wages to a project. Add line items detail to the Time Card Removes a highlighted line item s detail from the Time Card Regular Hours Displays the total amount of REG hours for which the employee is being paid. Other Hours Displays the total amount of hours, other than REG, for which the employee is being paid. Total Hours Displays the total amount of ALL hours for which the employee is being paid. Click the hourglass icon to open a Benefit Hours Entry. Use this to add available hours to an employee s benefit code. This can be especially useful for COMP time. 27

28 The options on the remaining tabs are used to temporarily override the standard calculation of an employee s paycheck; allowing you to process variations (such as one-time changes to voluntary deductions) without making changes to the employee s master file that would then need to be changed back once the pay run was finished. Excludes tab: The changes made here will effect only for the current check on the current payroll. If an employee receives any other checks during the same pay cycle, they will not be affected by these entries. Once updated, the system reverts to its original values. The entries made here will override all other variables defined in the system. It is important to understand how entries on this screen affect the payroll history files. This is especially true when selecting the Exclude Taxes option as doing so will not affect the employee s TAXABLE WAGES on which the deductions are based. For example, say an employee receives $ gross pay each pay period with a $ Federal Tax deduction. And because this employee has no deferred deductions or earnings, the FEDERAL TAXABLE WAGE is also $ for each pay period. Assuming the employee earns 26 paychecks a year, their annual Federal Wage would be $26, (as reported in Box 1 of the W-2). And their annual federal withholding would equal $ (as reported in Box 2 of the W-2). 28

29 If Exclude Taxes is selected for one of their checks, the FEDERAL TAXABLE WAGE will remain at $ for this paycheck. That amount will NOT be reduced due to this selection. Therefore (from the above example) the employee s W-2 would print with the full $26, wage to Box 1, but only $ in withholding reported in Box 2. So they may end up owing money come time to file their tax return. The following fields are available for modifications. The employee s Number and Name will appear at the top of the screen. Exclude Taxes Selecting this option will exclude Federal, State, FICA, Medicare, AND local taxes from the employee s paycheck. If you do not want ALL the taxes to be excluded, then use the Tax Override tab to exclude only certain tax deductions. Note: If the wages being paid out to the employee are not FICA/Medicare deferred and Exclude Taxes is selected, then it becomes the employer s responsibility to pay the full amount to be deducted from the wages. Therefore you will see the Employer Totals on the Deductions Register reflecting the full FICA/Medicare amount due for the wages paid. And the full amount due will print onto the liability check issued to the IRS. This amount will be charged to the employer s expense when the payroll distribution journal is posted to the general ledger. This ensures that the FICA/Medicare will be fully expensed regardless of the changes that are made here. Exclude Voluntary Deductions This option will exclude voluntary deductions that would normally be subtracted from this paycheck; this includes direct deposit. Meaning if the employee typically receives their pay by direct deposit, then these wages will be issued on a check rather than by direct deposit. And, if any of the voluntary deductions are tax deferred, then the employee will be taxed at the higher/non-deferred rate of pay which in turn affects the employee s taxable wages as reported on their W-2. Exclude Pension Will exclude both the employee s deduction and employer s contribution to the pension program in which the employee participates. This option will also prevent the employee s pay from increasing their PENSION WAGES. And, if the pension deduction is tax deferred, then the employee will be taxed at the higher/non-deferred rate of pay which in turn affects the employee s taxable wages as reported on their W-2. Exclude Benefits This option indicates to the system not to accrue benefit hours that would normally be earned. Note: If an employee is receiving more than one check in the same payroll, benefit hours should be EXCLUDED from all checks other than their standard check. If they are not, you are actually increasing the number of times benefits are accrued per year for the employee, which is the same as increasing the number of pay periods for that employee. This would overstate the accrued or available hours for the employee. This would also be true for special check runs outside the normal pay cycle. Exclude Insurance Will exclude both the employee s deduction and employer s contribution to the insurance plan(s) in which the employee participates. If the insurance deduction is tax deferred, then the employee will be taxed at the higher/non-deferred rate of pay which in turn affects the employee s taxable wages as reported on their W-2. 29

30 Tax Override tab: It is important to understand how entries on this screen affect the payroll history files. If the calculated values for taxes are either excluded or overridden: THESE OVERRIDES WILL NOT AFFECT THE "TAXABLE WAGES" ON WHICH THESE DEDUCTIONS ARE BASED! For example, say an employee receives $ gross pay each pay period with a $ Federal Tax deduction. And because this employee has no deferred deductions or earnings, the FEDERAL TAXABLE WAGE is also $ for each pay period. Assuming the employee earns 26 paychecks a year, their annual Federal Wage would be $26, (as reported in Box 1 of the W-2). And their annual federal withholding would equal $ (as reported in Box 2 of the W-2). If Federal is overridden with a reduced amount of $75.00, the FEDERAL TAXABLE WAGE will remain at $ for this paycheck. That amount will NOT be reduced due to this override. Therefore the employee s W-2 would print with the full $26, wage to Box 1, but only $ in withholding reported in Box 2. So they may end up owing money come time to file their tax return. 30

31 The following fields are available for modifications. The employee s Number and Name will appear at the top of the screen. Federal, FICA, State, Local 1, Local 2, or Medicare Modifying these fields allows you to override the normal, system-calculated tax deduction amounts. If an amount is entered, the system will deduct that amount from the employee s check INSTEAD OF the normal calculation for the tax. If ($0.00) should be deducted, enter 9999 in the field as prompted. This tells the system NOT to make a deduction for the tax. If no change is needed the field should remain blank. Note: If the wages being paid out to the employee are NOT FICA/Medicare deferred and the changes made to the FICA and/or Medicare fields are less than what the system would normally calculate, the difference becomes the employer s responsibility to pay. Therefore you will see the Employer Totals on the Deductions Register increase to make up for the portion not being deducted from the employee. And the full amount due will print onto the liability check issued to the IRS. This amount will be charged to the employer s expense when the payroll distribution journal is posted to the general ledger. This ensures that the FICA/Medicare will be fully expensed regardless of the changes that are made here. If the changes are greater than the normal calculation, the employer s expense will increase to match the higher deduction taken from the employee s check. To setup an employee so their wages ARE FICA and/or Medicare deferred, you ll need to setup a new pension code and apply it to the employee s master setup. The new pension code should be flagged to Include FICA and/or Medicare where applicable, for more details see Section 5.60 PENSION CODES. 31

32 Deduction Overrides tab: Use this tab to override the normal, system-calculated deductions for Pension, Insurance, and Voluntary Deduction codes. A deduction can be excluded from this check by entering the deduction code and $0.00 as the amount (or 9999 for Pension). The normal amount can also be overridden with any dollar amount (greater or smaller than the typical deduction). Whatever amount that s specified here is the amount that will be deducted from the employee s wage. Pension Code The code for the pension program in which the employee participates will default into this field. If you wish to key in an override, simply input the Amount to be deducted from their paycheck. Notes: This override will not affect the employer s contribution amount, only what is deducted from the employee s check. The employer s contribution will calculate as normal. If the pension contribution is tax deferred, then the employee s taxable wage and tax deduction will be altered based upon the override amount. The override amount does not alter the employee s PENSION Wages. So the pay amount that the pension would ve been calculated on is still what will be printed on the Retirement Report as the employee s earnings; along with the amount actually deducted from this paycheck. PENSION Wages are not reported on the W-2, only the total pension withheld. 32

33 Insurance Codes Enter in the Code for the insurance program(s) in which the employee participates and then input the Amount to deduct from their paycheck. Notes: This override will not affect the employer s contribution amount, only what is deducted from the employee s check. The employer s contribution will calculate as normal. If the insurance deduction is tax deferred, then the employee s taxable wage and tax deduction amounts will be altered based upon the override amount. Voluntary Deduction Codes You cannot process an overriding voluntary deduction without first having added it to the employee via Employee Maintenance. This option will override the amount, regardless of the deduction s frequency code. (Ex: If the voluntary deduction in Employee Maintenance has a frequency of 5, and this is the 1st pay period, the deduction will still be taken out). Enter in the Code for the voluntary deduction(s) and then input the Amount to deduct from the paycheck. Click Add to include the override and key any additional overrides as needed. Note: If the voluntary deduction being overridden is tax deferred, then the employee s taxable wage and tax deduction amounts will be altered based up on the override amount. 33

34 Other Overrides tab: This section allows you to alter the payroll information that was defined when creating the work file. If the data is altered, it will affect the individual check of this employee only. It is normally used for sequenced checks that effect future pay periods. A. Pay Period B. Check Date C. Accounting Period Will save your entry Will clear what you have entered and allow re-entry Will delete the employee s check from this pay cycle Will exits you from this program without saving your entries 34

35 1.30 PRINT HOURS WORK SHEET This option is used to print a worksheet which details what comprises the gross earnings of all employees in the current payroll. This worksheet reflects the changes made to the work file in Time Card Entry. The gross pay for the employees listed will be used in the calculations to determine net pay. The worksheet can be generated using one of three different selections: 1. All employees in the workfile will include all employees in the work file. 2. Employees in a specified department will only include employees in a certain department. 3. Employees in a specified Job Class will only include employees in a certain class. There are three additional (optional) selections that can be chosen: 1. Entries for a specified date includes entries for a given Action Date only 2. Print Employee Distribution by default, any REG hours will either be printed on this report as REGULAR HOURS, or if the REG hours code is setup with a G/L Account Number and/or Substitution Account #, then that account number will be listed. To see what G/L account(s) the expenses will post to, select this option and the account numbers will be listed next to the employee s name. 3. Print Benefit Time Entered via the Timecard Entry s Hourglass Icon this will include any available benefit time input via Time Card Entry. Review the worksheet after it s printed. If the information on the worksheet requires no further edits, you may continue with the Calculate Paychecks option. If some of the data is NOT correct, you must return to Time Card Entry to make the appropriate corrections before proceeding. This report should 35

36 be run after edits are made to that the work file so the detail can be verified before proceeding with further within the pay cycle CALCULATE PAYCHECKS This option takes the gross pay in the current work file and calculates the net pay for the employees. This includes taxes, pensions, voluntary deductions, insurance and any other net pay calculations. It also determines the benefit hours and year-to-date amounts for this payroll. This program will calculate paychecks in the below order: 1. Gross Pay less tax deferred Hours Codes 2. Tax Deferred Voluntary Deductions (processed alphabetically) 3. Tax Deferred Insurances (processed alphabetically) 4. Pension 5. Federal Tax 6. FICA Tax 7. Medicare Tax 8. State Tax 9. Local Tax Local Tax Non-Deferred Insurance (processed alphabetically) 12. Non-Deferred Voluntary Deductions (processed alphabetically) 13. Direct Deposit Deductions less than 100% (processed alphabetically) 14. Direct Deposit Deductions equal to 100% 15. Benefits 36

37 To calculate your paychecks, just click OK. If you do not want to calculate, then select Exit. The length of time it takes to complete this process will depend on the number of checks being calculated. After the calculations are made, you may continue with the payroll processing by printing and reviewing the Deductions Register. Previous Check Usage message You will receive the below message during the calculate process if the system encounters a check number that s to be included in this pay cycle, but is already processed in the system. The offending check number will display. To correct this, go back to Create Hours Workfile and specify a new starting check number. 37

38 Negative Paycheck (aka employee has more deductions than net pay ) message You will receive the below message during the Calculate Paychecks process if the system encounters a check where there are too many deductions being taken from their gross pay and thus resulting in a negative paycheck. The offending employee number will display. To correct this, simply review the employee s deductions (taxes, pension, insurance, and voluntary deductions) and compare them to the gross pay they are receiving for this pay cycle. If any deductions need to be overwritten, you may do so in Time Card Entry. EMPLOYEES WITH NO TAXES OR NO PENSIONS Report When Calculate Paychecks is run, if the program encounters one or more employees who are not having taxes and/or pension amounts deducted from their paychecks, a report similar to the one below will print. This gives you the opportunity to correct the situation in Time Card Entry before printing the checks. 38