- G/L: pay items and related general ledger accounts, standard labor pay item, and employee deduction and additional employer expense general ledger accounts,

- overtime calculation,

- No-timecard entry (NTC) payment setup & payroll premiums,

- labor burden posting setup and your labor benefits multiplier (LBM),

- Payroll import/export,

- Activating the payroll module.

· Employee setup includes designating pay type (hourly, salary, piece rate), pay period and other wage information.

· Default payroll bank account.

· Specify a sale price for hourly pay items / labor items in the Pricebook.

· Job types may be associated with pay items to automate pay item assignment to timecard and piece rate wage entries.

· Activating payroll for the general ledger.

· Payroll user abilities.

Day-to-day Processing

· Record timecard entries, commissions, piece rate wages per job, and other miscellaneous wages for employees.

Payroll Preparation & Posting

· Management of payroll periods (creation & deletion)

· Payroll preparation consolidates all timecard entries and miscellaneous wages into wage summary entries grouped by employee, pay item, premium, and department.

· Payroll period review consists of locking, automatic calculation of overtime, reviewing, and verification of employee timecards and miscellaneous wages.

· Posting the payroll period

· The Payroll Preparation Report shows the total hours and gross earnings for each employee along with a pay item/premium/departmental breakdown for a particular pay period.

External Payroll Processing

The Payroll Period Summary Report generated by SuccessWare can be used to process payroll with other payroll software or payroll service. The report contains wage information for each employee. This information can be input into the other payroll software or provided to the payroll service. You can also export this information to a file. Your other payroll software or payroll service may be able to import this information avoiding the need for manual input.

This other payroll software or payroll service will generate employee paychecks, deduction and additional employer payroll expenses figures. These figures are used in the reconciliation process. They can be manually entered or, you can import them from a file. The reconciliation import can be configured to read information from almost any tab delimited text file.

Payroll Reconciliation

· Record employee check numbers and amounts.

· Record total employee deductions and additional employer payroll expenses.

· Posting the reconciliation

Initial Setup

All of the Setup Forms can be access through SuccessWare’s Main Menu in the Setup section.

Payroll G/L Accounts (General Ledger Setup)

Within general ledger setup, create the accounts you will use for payroll:

· Default accounts: payroll accrued, estimated labor burden, labor burden applied

· Labor sales and expense accounts

· Liability account for paycheck deductions

· Liability and expense accounts for additional employer expenses

After you ensure the accounts you wish to use exist, specify your default accounts:

· Accrued Payroll—used when posting payroll periods.

· Estimated Labor Burden—used for posting the estimated labor burden when payroll is posted. This account will only be used if you specifiy “post to ‘estimated labor burden’ default G/L account” in payroll setup.

· Labor Burden Applied—used when posting period reconciliations. The sum of the labor burden posted to the pay item’s account when posting the period. This account will only be used if you specifiy “post to G/L as indicated by timecard’s pay item” in payroll setup.

Default Payroll Bank Account (Account Register)

One of your Register Accounts should be designated as the default payroll account. Edit the desired account, check the ‘default payroll account’ checkbox, and save it (this checkbox is only visible when view/editing bank accounts). The default payroll bank account is used for recording payroll checks when posting payroll period reconciliations.

Payroll Setup

Payroll Setup has four tabs/pages:

1) Payroll Periods,

2) Overtime,

3) NTCs & Premiums,

4) Payroll G/L, and

5) Labor Burden

6) Import/Export

7) Payroll Activation

For additional information regarding payroll setup when using a payroll service, click here.

Payroll Periods

Indicate the type of payroll periods your company uses by checking the checkboxes. You may use any combination of weekly, biweekly, monthly, and semimonthly pay periods, but you can have only one setup for each type of period.

Weekly periods consist of seven days and end each week on the same day. If your company uses weekly periods, check the ‘Use weekly periods’ checkbox and indicate the day of the week your weekly period ends.

Biweekly periods consist of fourteen days and end every other week on the same day. If your company uses biweekly periods, check the ‘Use biweekly periods’ checkbox and indicate the day of the week your biweekly period ends.

Monthly periods consist of a different number of days for each period (depending on the month) and end on the same day for each month. If your company uses monthly periods, check the ‘Use monthly periods’ checkbox and indicate the day of the month (1-31) on which your monthly period ends. If you select the 29^th, 30^th, or 31^st, the monthly period will end on that day for months that have that date, or the last day of the month for months that do not contain that date.

Semimonthly periods also contain a different number of days for each period. These periods end twice a month on the same days. If your company uses semimonthly periods, check the ‘Use semimonthly periods’ checkbox. Indicate the days of the month on which your semimonthly period ends. The first day must be between 1 and 15, and the second between 16 and 31. If the second end day is the 29^th, 30^th, or 31^st, the semimonthly period will end on that day for months that have that date, or the last day of the month for months that do not contain that date.

Payroll & GL (Pay Items and Additional Employer Expenses)

The ‘Payroll & GL’ page allows you to access reference books to set up your Pay Items and Employee Deduction and Additional Employer Expense Accounts. Clicking the appropriate button will cause the related reference book to popup.

Pay Items consist of a code, description, and expense type. Pay Items are utilized in the following manner:

· to indicate pay rate & labor expense type on timecard entries

· to indicate labor expense type on miscellaneous wage entries

· to control the employee wage summary grouping when preparing payroll

· to optionally define multiple pay rates for employees (by pay item)

· to automate variable pay rates and labor expensing when recording timecard entries and miscellaneous wages for jobs

· to specify GL accounts when posting labor expenses

When setting up pay items, specify:

· A unique pay item code and a description

· A pay type

- Salary items will be available when defining salary splits in employee setup.

- Hourly items will be available when making entries on the timecard, when paying piece rate wages for a job and when recording miscellaneous wages. Hourly items are also available when defining default pay items in job types reference book and when defining variable pay rates in employee setup.

- Piece rate items will be available when paying piece rate wages for a job and when recording miscellaneous wages.

- Commission items will be available when recording commissions for a job and when recording miscellaneous wages.

· Whether or not the pay item is job related—A timecard or wage entry with a job related pay item is not allowed without a job number.

· Whether or not the pay item is treated as regular time (RegOT)—Regular time timecard entries will accumulate toward automatic overtime. Both timecard entries and miscellaneous wage entries made with RegOT pay items will be used when calculating an employees regular rate for a period. This regular rate is used when determining premium pay rates for a period (a description of regular rate calculations is given in “NTCs & Premiums”).

· An expense type—The expense type specifies how to expense labor recorded with the pay item. Expense type are simply a code that specified a specific GL account subaccount combination. You will initially have to set up one or more expense type for payroll, depending on how you wish to expense your labor.

In addition, ‘Hourly’ ‘Job Related’ items will automatically show up as labor items in the Pricebook. This will allow you to maintain the sale price for this type of labor.

When making miscellaneous wage entries, hourly rate entries will allow for a rate, hours, and an optional premium code. Piece rate and Commission entries will allow entry of a base wage, total sale, and a percentage.

The Standard Labor Pay Item will be used as the default pay item on timecard entries when no other pay item is specified. This standard labor item must be an ‘hourly’ item.

Employee Deductions and Additional Employer Expenses consist of a description and three GL account/subaccount combinations. These items define the payroll deductions and additional payroll expense your company uses in payroll. These are the items you will record amounts for when reconciling payroll. Use this book to set up reference to accounts for income tax withholding, disability insurance, 401k plans, etc…

This book includes a field to indicate the item is an employee deduction, in which case you will be required to enter a deduction amount for this item when reconciling. The expense field indicates if the item is an employer addition expense, in which case you will be required to enter an expense amount when reconciling.

When reconciling payroll periods, employee deduction amounts will post to the GL account/subaccount combination given here (EmpeAcct and EmpeSub). The employer expense amounts will post to the both the liability GL account/subaccount (EmprAcct and EmprSub) and the expense GL account/subaccount (ExpAcct and ExpSub).

Overtime

Overtime Setup

In order to use automatic calculation of overtime, you must define how SuccessWare should calculate overtime.

Weekly Accumulation of Overtime: If your company pays employees overtime on a weekly basis, check the ‘Accumulate overtime on a weekly basis’ checkbox and indicate the number of regular hours an employee must be on-the-clock before weekly overtime hours begin to accumulate (e.g., 40 hours).

Daily Accumulation of Overtime: If your company accumulates overtime on a daily basis, check the ‘Accumulate overtime on a daily basis’ and indicate the number of regular hours an employee must be on-the-clock before daily overtime hours begin to accumulate (e.g., 8 hours).

The Overtime Workweek: If you are accumulating overtime on a weekly basis, you need to specify an overtime workweek end day. The overtime workweek consists of seven days and ends on the same day each week.

Overtime pay rate

The overtime rate or multiplier your company pays for overtime must be specified (e.g., 1.5). Overtime is paid as a premium as described the next section.

Overtime workweeks for periods

Monthly and semimonthly periods do not have even segments of seven-day weeks. For this reason, the default overtime workweek is used for accumulating overtime for employees in monthly or semimonthly periods.

Weekly and biweekly period have even segments of seven days. These periods can accumulate weekly overtime based upon their seven day segments, or you may choose to accumulate weekly overtime based on the default overtime workweek for these periods by checking the ‘Weekly periods’ and/or ‘Biweekly periods’ under the ‘Use default work week for’ heading.

NTCs & Premiums

NTC (no timecard entry) entries are automatically maintained on employee timecards. When a gap exists between two entries, a NTC entry is automatically created to fill the gap. These entries help identify periods of time where we don’t know where an employee was.

NTC entries can be set up as non-paid time (employees will not be paid for NTC time) or as paid and either regular or non-regular time (NOTE: the flag ‘IsRegOT’ on pay items indicates whether or not time is regular or non-regular). When paying NTC time, specify a NTC pay item for expensing NTC time. This pay item will be used on the automatically generated NTC entries.

Premiums consist of a code, description and a multiplier. Premiums can be specified on timecard entries (and miscellaneous wages) to indicate double-time, overtime or any other premium pay rate. Premium pay rates are calculated during payroll preparation and are calculated as follows:

Premium Pay Rate = Regular Hourly Rate X Multiplier

The regular hourly rate of pay of an employee is determined by dividing his/her total remuneration for employment in any workweek by the total number of hours actually worked by him/her in that workweek for which such compensation was paid.

The total hours and total remuneration is a sum of all timecard entries/misc. wage entries that are marked as ‘IsRegOT’. You can set up your pay items as either IsRegOT or not IsRegOT.

Labor Burden

Labor burden is the additional employer expense of payroll such as unemployment tax, employer paid health insurance, employer 401k contributions, etc…(not paycheck deductions/withholdings). At the time payroll is initially posted (before reconciliation) the actual additional expenses are not known. SuccessWare can, at the time of posting payroll, post an ‘Estimated Labor Burden” (ELB). This estimated figure will show on daily financial statements always representing current labor liabilities. You may choose to post payroll with or without the ELB.

If you choose to post payroll with the ELB, you may choose to

a) post the ELB into a specific ELB general ledger account, or

b) post the ELB with earnings/wages to the accounts specified on the pay items recorded on timecard and miscellaneous wage entries.

Method (a) will keep the ELB separate from job cost. Method (b) will include the ELB as a part of labor job cost.

If you decide to post an ELB with your payroll, you must set up a Labor Benefits Multiplier (LBM Preset). The LBM Preset is used to estimate these expenses. The estimated labor burden will be calculated as:

ELB = (earnings X LBM) - earnings

The Average LBM: Your company’s Average LBM is used to monitor the LBM Preset to ensure that it provides a reasonable estimate for GL posting. The average is calculated based the history of previously posted and reconciled payroll periods. You may specify how many months of history you wish to use to calculate the average LBM.

The Warning Threshold: You may specify a Warning Threshold that SuccessWare will use to decide when to warn you to adjust your LBM Preset. You will be warned to adjust your LBM Preset during reconciliation if:

Average LBM < (LBM Preset – Threshold)

Average LBM > (LBM Preset + Threshold)

A threshold of 1.0 would be less sensitive than a threshold of 0.01.

Import/Export

Import/Export Folder—Specify a folder for SuccessWare to use when importing/exporting payroll files. When SuccessWare export payroll files, it will put them in the folder specified here. When SuccessWare imports payroll files, it will expect to find them in the folder specified here.

Perform External Payroll Data Integrity Check—This button performs a data integrity check between SuccessWare and your external system. If you will be exporting payroll files from SuccessWare for your external payroll system to process, you must first set the external system up to work together with SuccessWare. Once the external system is set up, you must generate a payroll setup file from the external system. This file must be placed in the import/export folder. Once this is done, the external payroll data integrity check can be performed.

Period Reconciliation Import—SuccessWare can be set up to import payroll period paycheck information, deduction information and/or additional employer payroll expense information. For more information on the reconciliation process, see “Reconciling a Payroll Period”.

To configure SuccessWare to import paycheck, deduction and/or and or additional employer expense information for reconciliations, check the appropriate checkbox and enter a the file suffix to be used for that type of data, and then set up the import filter for that type of data.

File Suffix—When importing information for period reconciliation, SuccessWare expects to find the data in one or more files in the import/export folder. The files must be named in the following manner:

“000928 W CKS.txt”

That is: year, month, date, space, period type, space, file suffix, “.txt”. The year, month, date corresponds to the end date for the period. The period type should be ‘W’, ‘B’, ‘M’, or ‘S’ for weekly, biweekly, monthly, or semimonthly. The file suffix should correspond to the file suffix entered here for the appropriate type of data contained in the file.

The example above is a reconciliation import file for the the weekly period ending September 28, 2000. This example file contains checks (CKS).

Example one

If we are going to be importing only checks and deduction information (additional expenses will be manually input), and the information will be in two different files, we would:

· check the ‘import paychecks’ checkbox

· enter “CKS” in the file suffix for paychecks

· check the ‘import deductions’ checkbox

· enter “DED” in the file suffix for paychecks

Then, when we exported the information from our external system for the weekly period ending October 12, 2000:

· we would name the file containing the paycheck information “001012 W CKS.txt”

· we would name the file containing deduction information “001012 W DED.txt”

And then, when we selected the import option when reconciliation the weekly period ending October 12, 2000, SuccessWare would automatically import the information from these two files.

Example two

If we are going to be importing all three types of information, and checks will be in one file, and deductions and additional expenses in another, we would:

· check the ‘import paychecks’ checkbox

· enter “CKS” in the file suffix for paychecks

· check the ‘import deductions’ checkbox

· enter “REC” in the file suffix for paychecks

· check the ‘import deductions’ checkbox

· enter “REC” in the file suffix for paychecks

Notice that the file suffix for deductions and additional expenses are the same. When we exported the information from our external system for the weekly period ending October 12, 2000:

· we would name the file containing the paycheck information “001012 W CKS.txt”

· we would name the file containing deduction and additional expense information “001012 W REC.txt”

And then, when we selected the import option when reconciliation the weekly period ending October 12, 2000, SuccessWare would automatically import the information from these two files.

Setting up the import filters—Click the import filter button next to the file suffix to modify the import filter for that type of data.

Row Types—This list contains the type of information the import filter will import. Selecting an item in this list will display the ‘row identification’ and the ‘row values’ for the item. For each row type, you must define the row identification and row values.

Row Identification—This lists contains the columns and values that are used to identify the type of information selected in the ‘row types’ list.

Row Values—This list contains the individual values/fields that will be imported for the type of information selected in the ‘row types’ list.

To set up the import filter for checks, first create a reconciliation import file for paychecks from your external payroll system and put it in the import/export folder. Then, from SuccessWare’s payroll setup, click the import filter button next to the file suffix for checks. The import filter setup for checks will open.

1) Right click and select “open example file…”. The ‘open file dialog’ will open listing files from your import/export folder.

2) Select the reconciliation import file for paychecks you created and click open.

3) Select ‘Checks’ in the ‘row type’ list.

4) Define the ‘row identification’ for ‘Checks’:

If all rows in the file are ‘Checks’ rows, then check the ‘All rows’ checkbox.

If all but the first row (as with a file containing column headers) are ‘Checks’ rows, check the ‘All but first’ checkbox.

If only rows where the 2 column has the value ‘PayCheck’ are ‘Checks’ rows:

a. Select the cell in column 2 that has the value ‘PayCheck’.

b. Right click and select ‘Add cell to identification’. “2=PayCheck” will be added to the ‘row idenficiation’ list.

You can test to see how well the import filter is identifying the row type. When you select ‘Next’ and ‘Prior’, the selected cell in the grid will go to the next or previous row that match the ‘row identification’.

5) Specify which columns contain the ‘row values’ for ‘Checks’:

a. Select the ‘EmployeeName’ value in the ‘row values’ list.

b. Double click the cell that contains the value for ‘EmployeeName’ (e.g., if you double clicked a cell in column 4, “EmployeeName=4” will show in the ‘row values’)

c. Select the ‘CheckNo’ value in the ‘row values’ list.

d. Double click the cell that contains the value for ‘CheckNo’ (e.g., if you double clicked a cell in column 7, “CheckNo=7” will show in the ‘row values’)

e. Select the ‘Amount’ value in the ‘row values’ list.

f. Double click the cell that contains the value for ‘Amount’ (e.g., if you double clicked a cell in column 4, “EmployeeName=4” will show in the ‘row values’)

6) Right click and select ‘Close’. SuccessWare will ask you if you want to save the filter setup. Select ‘Yes’.

The import filter setup for ‘PayChecks’ is complete. Repeat this process for deductions and additional employer expenses if you are planning on importing them during payroll period reconciliation.

Payroll Activation

The payroll module will remain turned off until you activate it. To activate the payroll module, click the ‘activate’ button at the bottom of the payroll setup form. SuccessWare will run a check to make sure everything necessary to process payroll has been set up properly. If there are any discrepancies, a list will be generated for your review. If all of setup appears to be complete, the payroll module will be turned on. Only after the payroll module has been turned on will you be able to activate payroll for the general ledger in ‘Company Setup’.

In addition to completing Payroll Setup, the following must be configured before you can activate your payroll module:

· Employee Payroll Setup

· Default Payroll Bank Account

· Payroll activation for general ledger (if general ledger is activated)

While payroll is off:

· You will not be able to access the payroll manager.

· Timecard entries will not require pay items or rates.

· Importing timecard entries onto invoices will use the employee’s bill rate and bill cost.

Employee Setup

When you choose the ‘Calculate Overtime’ option in the timecard manager, SuccessWare will determine the accumulated daily and weekly time for each timecard entry. Based upon your company’s overtime setup, daily overtime and weekly overtime will also be calculated for each timecard entry. If the employee is set up to receive automatic overtime, this daily and weekly overtime calculation will be put into the ‘AutoOT’ field for each timecard entry. The ‘TotalOT’ for an entry will be the sum of the ‘AutoOT’ and any manual overtime you have entered on the timecard entry.

If you want the employee’s timecard to automatic accumulate overtime, at the top right of the employee setup form, check the ‘Automatic Overtime’ checkbox.

On the fifth page/tab (‘Wage Information’) of employee setup, the following fields must be completed for each employee in order to use payroll:

· Pay Type (hourly, salary, or piece rate)

· Pay Period (weekly, biweekly, monthly, or semimonthly; only the pay periods selected in payroll setup will be available for selection in employee setup)

· Hourly Rate for hourly employees or Annual Salary for salaried employees

· Average Hours/Period (how many hours will the employee usually work during the period)

· Average Check (the average expected check amount for this employee)

· Automatic Overtime If ‘automatic overtime’ is checked, overtime automatically calculated based on overtime setup will be included in the employee’s total overtime for a period. If ‘automatic overtime’ is not checked, only manual overtime will be included in the employee’s total overtime. In either case, during automatic calculation, both weekly and daily overtime will be calculated and available for reference. (This ‘automatic overtime’ setting can be overridden for an individual overtime period in the employee’s timecard.)

Hourly Employees

For hourly employees, enter the employee’s hourly rate and specify the average hours/period (e.g., for a weekly pay period the average hours might be 40). Based upon the hourly rate and the average hours worked during the period, SuccessWare will estimate the employee’s annual salary and average (expected) gross check amount or earnings.

When preparing and posting payroll, hourly employees’ wages are expensed by date, pay item, department as specified on timecard and miscellaneous wage entries.

To optionally set up varying rates for different types of work (or pay items), click on the Pay Rates button to access the Employee’s Pay Rate Reference Book (variable pay rates will only apply to hourly employees). Within this book you can enter different pay rates for different hourly pay items.

Salaried Employees

For salaried employees, enter the employee’s annual salary and specify the average hours/period (e.g., for a biweekly pay period the average hours might be 80). Based upon the salary and the average hours work during the period, SuccessWare will estimate the hourly rate and the average check amount.

A sixth tab will become visible for salaried employees: ‘Salary Split’. On this tab you can designate how the employees wages should be expensed. Timecard entries: If the employee's wages are expensed to timecard entries, the ‘salary rate’ will be determined by dividing the Average Check by the total hours recorded on the timecards for the period. This ‘salary rate’ will be expensed as designated by the pay items on the timecard entries and the employee’s wage summary will be based upon the timecards and miscellaneous wage entries.

If the employees wages are expense via ‘salary splits’, you must enter the splits specifying a percent, a pay item and a department. The percent column for all splits must add up to 100%. The average check amount will be split by the percentages indicated to the pay item / department on the split entries. The employee’s wage summary will be based upon these splits and any additional miscellaneous wage entries.

Piece Rate Employees

For piece rate employees, enter the average hours/period and an estimated average check amount. SuccessWare will calculate an estimated hourly rate and salary amount.

Piece rate wages are summarized and expensed based upon miscellaneous wages only. Timecard entries are only referenced for total hours during the period when determining the employee’s regular rate for premium pay. When an employee is set up as piece rate, the ‘piece rate’ tab is visible within employee setup. On this page you can specify whether or not to use a base amount and a percentage of sale to pay the employee. You can also specify the portion of the sale from which the employee’s percentage should be taken.

If you check the base amount checkbox, when recording piece rate wages, you will be able to enter a base amount. If you do not check it, you will not be able to enter base amounts when recording piece rate wages for the employee. The total wage recorded will equal the base amount (if any) plus the percentage of the sale amount.

Bill Rate and Bill Cost

In previous versions of SuccessWare, the employee’s bill rate and bill cost were used when importing labor from timecards onto A/R Invoices. With the inclusion of payroll, SuccessWare will continue to use the bill rate and bill cost fields when Payroll is “off”. Once payroll is turned “on”, the employee’s pay rate will be used imported as the cost and the labor/pay item’s price will be imported as the price (the bill rate and bill cost fields will no longer be used).

Labor Items / Hourly Pay Items (Pricebook)

The Pricebook labor items identify the sale price you charge your customers for particular types of work. Labor items also indicate a sale type and expense type. Any pay items you set up which are both ‘hourly rate’ and ‘job related’ will automatically show up as labor items in the Pricebook. These items will most likely show up under the category <uncategorized>. These items should be edited and a sale price entered for each. If you desire, you can create and/or move the item into a category/group.

Labor items are used when building tasks and also as line items on receivable invoices or detail for line items. Labor items are also used on the employee timecard to identify the type of labor. In addition, they can be used to set up multiple pay rates for employees.

One of the labor items must be set up as the ‘standard labor’ item. This ‘standard labor’ item will be used as the default on entries that require a labor item number or pay item. To set the standard labor item, check the ‘standard labor item’ checkbox on the labor item form when editing the labor item from the Pricebook.

This ‘standard labor’ item is the same ‘default pay item’ from payroll setup. When payroll is turned on, this ‘standard labor’ item is maintained from within payroll setup and the checkbox on the labor item form will be disabled. When payroll is turned off, the checkbox will be enabled and you can control the default labor item from the labor item form.

Job Types, Timecard Status, & Pay Item Automation (Reference Library)

Timecard Status codes can be set up to reference hourly pay items. When making timecard entries, if a timecard status references a pay item, upon selection of the status, the pay item on the timecard entry will be set to match this pay item.

Job types can also be set up to reference pay items. This specifies a specific type of labor for the job type. When dispatching or onsiting employees on job’s via call progress or timecard, the job type’s labor item will be used on the timecard entry by default (only if the timecard status does not reference a pay item). If the job type does not have a labor item set up, the ‘standard’ pay item will be used.

The General Ledger Activation Date for Payroll

Within ‘Company Setup’, access the ‘Financial’ tab. This is where you activate the different modules of SuccessWare for posting to General Ledger. Check the ‘payroll’ checkbox and enter the date on which you want payroll to start posting to the general ledger. Click the ‘save’ button.

If you have specified a general ledger activation date for the general ledger itself, you must also specify a general ledger activation date for payroll before activating the payroll module itself.

If no activate date has been specified for general ledger, a general ledger activation date for payroll is not necessary.

Activating the Payroll Module

Before you can access the payroll manager and process payroll periods. You must first activate your payroll module. This simply turns payroll on for processing and is different from payroll activation for general ledger. To turn payroll on, click the ‘activate’ button at the bottom of payroll setup. This will run the payroll configuration analsysis. This process will analyze your payroll configuration and ensure that any required configuration has been completed. If the minimum configuration requirements have not been specified, you will not be able to activate your payroll module. The following is a breakdown of payroll configuration (required items are indicated):

After the analysis is compete, a checklist is displayed showing which items are configured. A report with this information is also available which can include detail and extended detail regarding the configuration of each item.

User Abilities

Payroll User Abilities

Modify Payroll Info on Timecard	View and modify the pay item and premium on timecard entries
Access Piece Rate Assistant	Access and record piece rate wages for piece rate employees assigned to a job
Access Miscellaneous Wage Manager	Access the Miscellaneous Wage Manager and modify miscellaneous wages. Modify payroll information when recording commissions for jobs.
Override Payroll Employee/Period Locks	Modify timecard and miscellaneous wage entries for locked payroll periods
Process Payroll	Access the Payroll Manager Create, prepare, delete, reset, lock/unlock, unverify payroll periods Lock/unlock, prepare, verify and unverify employees payroll information Calculate overtime Modify entries in the Employee/timecard review mode of the Payroll Manager View and modify pay rate in timecard entries Modify timecard and miscellaneous wage entries for locked periods
Post Payroll Periods	Post payroll periods
Adjust Payroll Periods	Adjust payroll periods
Reconcile Payroll Periods	Access payroll period reconciliations
Post Period Reconciliations	Post payroll period reconciliations
Adjust Period Reconciliations	Adjust payroll period reconciliations
Payroll Setup	Access and modify payroll setup Access the wage information, salary split, and piece rate tabs of employee setup View/modify social security number, hire date, termination date on the personal information tag of employee setup Change the end dates of payroll periods in the payroll manager

Additional Customer Service User Abilities

Commissions for Job

Allows access to the Commissions for Job Form

Day-to-day Processing

Timecard Entries

Timecard entries include a status, a pay item, a pay rate, time, and a premium code. These fields are used when preparing and posting a payroll period. Until the payroll period is posted, these fields can be modified:

· The status indicates whether or not the time is paid.

· The pay item indicates the expense type to be used when the labor entry is expensed to G/L. The pay item also indicates whether or not the entry is to be treated a regular time or non-regular time (non-regular entries will be highlighted in yellow). Hourly pay items can be set up to automate pay rate entry.

· The pay rate is the regular pay rate for this block of time.

· The total time (time out - time in) of any timecard entry can be broken down into five categories (the total duration of an entry is always accounted for by these five categories of time):

Regular time—ordinary paid time that will accumulate and turn into overtime and effect regular/premium rate calculations.

Non-regular time—paid time that does not affect overtime and regular/premium rate calculations.

Premium time—time that is paid at a premium.

Non-paid time—time that is not paid.

Overtime—time that is paid at the overtime (OT) premium.

· The premium code indicates the multiplier to be used when calculating the premium rate for the period.

Pay Item Entry Automation

When making a timecard entries either from Call Progress or manually on the timecard, the pay item entry is automated upon selection of a timecard status:

· If the timecard status has been set up with a pay item, this pay item is used, or

· For job related entries (onsite & dispatch), if no pay item is associated with the status, the pay item associated with the job’s “job type” will be used, or

· If no pay item is associated with the status or the related “job type”, then the default pay item will be used.

Timecard entries can be made either manually, through the timecard, or by dispatching/onsite/completing a call in the call progress form.

Manual Timecard Entries

When making manual timecard entries, pay item selection is automated when a dispatch and onsite entries will use the jobs pay item as with call progress. Other entries will use the default pay item (defined in payroll setup). This pay item can be modified. If a premium code is specified, you must also specify a portion of the time to apply to the premium (this must be equal or less than the total duration of the time block).

NOTE: Viewing/modifying pay item, premium code, and rate on the timecard requires special user abilities.

Dispatch / Call Progress

When making timecard entries via call progress, the pay item will automatically come from the pay item setup on the job type. If the job type has not been set up with a pay item, the default pay item will be used. The pay rate will either be the employee’s variable rate set up to match the pay item in employee setup or the employee’s standard hourly rate also set up in employee setup. The premium code cannot be specified when dispatching call via call progress.

Piece Rate Wages

Piece rate wages can be recorded either in the miscellaneous wage form, or with the ‘piece-rate assistant’. The ‘piece-rate assistant’ can be accessed from the job manager as well as from the job summary form. Only users with the appropriate ability can access this form and pay piece rate wages. In order to utilize this form, one or more ‘piece rate’ employees must be assigned to the job.

Piece rate employees are set up to be paid based upon a percentage of any combination of parts, labor and misc sale and/or a base amount. For example:

· a job has $1000 part sale, $100 labor sale and $10 misc sale

· one employee is assigned to the job with 10% of parts and labor

· The total pay for this employee should be (10% of ($1000+$100)) + no base amount or $110.

All employee’s assigned to the job are listed when the form opens. The form is set up to handle multiple employee’s and partial payments.

SuccessWare will recommend payment based upon percentage of completion. In the example above, if you enter 50% for the %complete, SuccessWare will recommend a payment of $55.

When there are more than one employee assigned to a job, they share the percentage of the sale based upon each employee’s percentage of the job. By default, SuccessWare evenly distributes the job between all employees assigned to the job. In the example above, if two employee’s set up with a 10%PL and no base were assigned to the job, their total pay each would be (10% of ($1000 + $100)) X 50% or $55 each. Total piece rate wages for the job would be $110.

In a simple case of a one employee completed service call:

1) Enter a ‘wages earned date’

2) If invoicing is compete, check the ‘invoicing complete’ checkbox. Wage percentages will be based upon actual invoiced amounts.

If invoicing is not complete, you must enter an estimated total for parts sale, labor sale, and misc sale in order to pay employee’s prior to invoice completion. In this case, wage percentages will be based upon the estimated amounts.

3) Focus the employee in the grid and press enter to edit the line (the job % would be 100% by default, % complete would also default to 100%)

4) Enter a base amount (if any, and if the employee setup allows base amounts). The amount to pay will automatically adjust.

5) The department will default to the jobs department (change if necessary)

6) The pay item will default to the jobs pay item if it has been set up (change if necessary)

7) Press enter to end the line edit

8) Click ‘Pay’ to post the wage to the employee’s miscellaneous wages and close the form.

In the information panel at the bottom of the grid, the following information is displayed:

· The employee’s piece rate setup (e.g., 15%PL = 15 percent of part and labor sale).

· The ‘total pay’ when 100% complete (this is 100% of the employee’s percentage of sale plus the bonus amount).

· The ‘currently owed’ amount (this is based upon the percentage completed)

A grid to the right of the employee grid lists the date and amount of all piece rate wages previously paid to the selected employee.

If you change the percentage of the job or percentage of completion for the employee, the ‘total pay’, ‘currently owned’, and ‘amount to pay’ will automatically adjust. You can edit/change the ‘amount to pay’ to any figure less than or equal to the ‘total pay’.

If you have the appropriate ability, you can access the Miscellaneous Wage Manager by click the ‘Wage’ button at the bottom of the Piecerate Assistant.

Commissions

In day-to-day processing, commissions are recorded in the miscellaneous wage manager. This manager can be accessed for commission entry from:

· the job summary form by clicking the ‘commissions’ button,

· the job manager by right clicking and selecting ‘commissions’ from the popup menu,

· the A/R Invoice / Cost entry by clicking the commissions button at the top left of the Miscellanious cost itemization.

When in ‘commissions’ mode, ‘(Commissions for Job)’ is displayed in the caption of the miscellanious wage manager; all commissions for the job are displayed and only pending commissions for the job can be modified/recorded: employee code, earned date, total sale and comment. Pending commissions are commission intended to-be-paid, but will not be paid until reviewed and released via payroll review (pending wages have an ‘earned date’ but not a ‘release date’).

To enter a commission in the ‘commissions’ mode:

1) Focus the grid and press ‘insert’ or right-click and select ‘new’.

2) Enter the employee code or select from the drop down reference book. (tab for the next column)

3) Enter the earned date. (tab for the next column)

4) Enter a Total sale amount, this is the amount of the sale on which the commission is to be based. (tab for the next column)

5) Enter a comment. For instance, what the employee sold.

6) Press ‘enter’ or right-click an select ‘save’ to save the line.

Record as many commission as needed. Any employee can receive a commission related to the job.

If the user has the appropriate ability, they can right click on the grid and select “Payroll Info”. This will show the commission base and percentage columns as well as the release date for complete payroll information entry.

Preparing, Reviewing, and Posting a Payroll Period

The Payroll Manager

The payroll manager has three modes:

· Payroll Periods Mode

· Period Review Mode

· Employee Review Mode (only accessible from Period Review Mode)

‘Payroll Periods’ Mode

This mode lists your payroll periods and their status…

locked—all of the employees within the period are locked

modified—payroll information for one or more employees in the period has been modified

verified—all of the employees within the period are verified

posted—the period has been posted go G/L

reconciled—the period has been reconciled

adjusting—the period has been adjusted, but not re-posted.

You can view all open periods or all periods for a given year. To access the Payroll Period view menu, click the period grid header, press Alt+V, or right click on the period grid and select ‘view’.

Creating, Deleting, Preparing and Resetting Payroll Periods

To create periods, while in the ‘Payroll Periods’ mode of the payroll manager, press Ctrl+Ins (or right-click the grid and select ‘create periods’). Periods will be created based upon the period types you have selected to use in your Payroll Setup. SuccessWare will automatically create periods for each type, from the ending date of most recent period of the same type, up to the current date.

If only one or two periods need to be created, they will be created without user intervention. If, for a given type, more than two (2) periods need to be created to bring the period type up-to-date, a dialog will be displayed asking you what periods (date ranges) should be created. The first time a pay period for a given type is created, this same dialog is displayed allowing you to initially create past payroll periods.

Payroll periods must be created, prepared and posted in order. SuccessWare will not allow periods to be processed out of order. For this reason, only the last period (chronologically) for any period type can be reset or deleted.

To delete a period, select the appropriate period in the grid and press Ctrl+Del. In order to delete a period, it must be unreconciled, unposted, unverified, and unlocked. Only the last period (chronologically) for any period type can be deleted.

Periods are automatically prepared when you select ‘period review’ mode. To manually prepare a period, right-click on the appropriate period in the grid and select ‘Period | Prepare’. Preparing a period will…

· clear any existing wage summaries, premium rates, reconciliation records for the period,

· if the period is not already populated with employees, preparing will populate the period with all employees currently set up for the period type,

· prepare wage summaries for each employee in the period (from timecards and/or miscellaneous wages),

· calculate the employee’s regular rate and prepare premium rates for the period.

NOTE: Preparing a payroll period will not re-populate the period. To force re-population of a period, reset the period before preparing.

To reset a period, right-click on the appropriate period in the grid and select ‘Period | Reset’. Resetting a payroll period will clear all wage summaries, premium rates, reconciliation records, and employees from the period and reset the period as if it had never been prepared (timecard entries and miscellaneous wages remain unaffected). Only the last period (chronologically) for any period type can be reset.

Preparing and Reviewing Payroll Periods

Reviewing a payroll period consists of reviewing and verifying the payroll period information for all employees within the period. An employee’s payroll period information consists of timecard entries and miscellaneous wages. To review a payroll period, select the period you wish to review in the grid, and click the Review button at the top of the manager or press Alt+R. This will put the manager in Period Review mode. If the period was not previously prepared, the period will be prepared at this time.

Preparing Periods

Preparing a pay period will:

· Populate the period if not yet populated. Employees are into the period according to employee setup. This only occurs the first time a period is prepared.

· Summarize employee wages into the employee wage summary:

- Marks all timecard and miscellaneous wages entries as prepared for the particular period.

- Based upon miscellaneous wages that were earned during previous pay periods:

- Recalculates the regular rates for the previous periods.

- Creates miscellaneous wages for additional premiums that must be paid (if any).

- Summarizes timecard entries for hourly employees and salary employees set up to expense wages via timecard entries.

- Prepares salary splits into the wage summary for salary employees set up to use salary splits.

- Summarizes all miscellaneous wages for all employees.

- Calculates total hours and wages for regular time entries (IsRegOT timecard and misc wage entries) to determine a regular rate.

- Uses the regular rate to determine premium rates for the period.

- Applies premium rates to timecard entries, miscellaneous wages and the wage summaries that include premiums.

When a period is first prepared, employees are inserted into the period based upon their employee setup. When first preparing a weekly period, all employees whose setup indicates a weekly pay period will be included in the period.

Payroll periods are automatically prepared when you enter ‘period review mode’ in the payroll manager. To prepare a period manually, right-click on the period in the period grid and select ‘period | prepare’.

Period Review mode

The period review mode lists all employees that have been added to the selected period when it was prepared. If the employee list for the period is not correct, check employee setups and then reset the period.

The grid shows the status of the employee’s records for the period:

verified—the employee’s information has been verified/approved and is ready for posting.
(verified information cannot be modified)

locked/unlocked—information for locked employees cannot be modified by users that do not have the appropriate ability. A warning is displayed when modifying timecard or misc. wage information for locked employees/periods.

modified—information for this employee has been modified and the employee/period must be re-prepared before posting.

Locking and Unlocking Employee Payroll Period Information

When an employee’s information is locked for a period, only users with payroll abilities can modify the employee’s timecard and miscellaneous wages for the date range the period covers. It is important to lock an employee’s records before you review them in order to be sure the information does not change while you are reviewing it.

To lock an employee’s records for the period, right-click on the employee and select ‘lock’. To unlock the employee, right-click on the employee and select ‘unlock’.

Reviewing and Verifying Employee Payroll Period Information

To review an employee’s timecard and miscellaneous wages for the period, click the Employee Review button at the top of the manager or press Alt+E. This will put the manager in Employee Review Mode (if the employee has not already been locked, SuccessWare will ask you if you want to lock the employee’s records for this period).

The Employee Review mode list all timecard entries for the selected employee for the date range covered by the selected period. Within this grid you can modify the timecard entries’ pay item, pay rate, premium hours and code, department, comment, and if the employee should be paid for the block of time. You can also modify the block of time to regular or non-regular time. NTC entries cannot be modified. These entries will follow the setup for NTC entries in payroll setup. If you need to change the way a NTC entry is paid, make a specified time card entry for the time slot.

If you need to change the in or out time of an entry click the timecard button at the bottom of the manager. This will open the employee’s timecard for that date. You can modify timecard entries through the timecard as usual.

Calculating Overtime

Overtime can be specified for an employee on both the timecard and/or in his/her miscellaneous wages. Overtime can be manually entered and/or calculated automatically based upon the payroll setup.

When calculating overtime automatically, overtime is calculated for all timecards in the overtime workweek. This overtime workweek can coincide with the pay period for weekly and biweekly periods. It can also be set up as a particular block of seven days separate from pay periods as specified in overtime setup. Monthly and semimonthly periods must use this particular workweek, as these period-types do not necessarily include even segments of seven-day weeks. Automatically calculated overtime on timecards is maintained separately from manually entered overtime. Both manual and automatic overtime are added resulting in the total overtime. In order for automatic calculation of overtime to effect the employee’s total overtime, the employee must be set up to use ‘automatic overtime’.

From the ‘Employee Review’ mode of the payroll manager, click the ‘Calc Overtime’ button. Overtime for the timecards in overtime week(s) included in the pay period will be calculated.

From the employee’s timecard, right-click and select ‘Calculate overtime’. Overtime for the overtime week of the current timecard will be calculated.

Adjusting/Resetting Pay Rates

You can change all timecard entries for the period from one pay item/rate to another by right-clicking on the timecard entry grid and selecting ‘Rates…| Adjust pay item/rate…’. You can change the pay item and/or the rate.

Rates on timecard and miscellaneous wage entries are automatically loaded during entry from the employee setup. The pay rates on existing timecard and miscellaneous wage entries can be reset to match the employee’s setup. From the ‘Employee Review’ mode, right-click and select ‘Reset pay rates’. Resetting will reset the rates for all timecard entries and all miscellaneous wages include in the pay period. Any special rates that have been recorded (that did not come from the employee’s setup) will be overwritten and lost.

Reviewing Miscellaneous Wages

To review and modify the employee’s miscellaneous wages, click the ‘Misc. Wages’ button at the bottom of the manager. This will open the miscellaneous wage manager for the employee. The miscellaneous wage manager allows you to review, modify and record miscellaneous wages for employees. Miscellaneous wages are any non-timecard related wage such as a bonus, commission, piece rate wage, etc….

When opened from the payroll manager, the miscellaneous wage manager opens in normal mode. In this mode any type of miscellaneous wage can be viewed, modified or entered. The manager lists miscellaneous wages (non-timecard wages) in a grid. At the top of the form are three information panels. These panels display information regarding the currently selected wage entry: employee information, job information and payroll period information. Directly above the wage grid is the view caption panel. This panel indicates the current view of the manager. Directly below the wage grid is the wage information panel. This panel displays additional information regarding the selected wage in the grid.

The miscellaneous wage manager allows navigation between:

· Wages for an employee

· Wages for a job (possibly for different employees)

· Wages for an employee’s payroll period

To change between these views you can:

· Click on the related information panel at the top of the manager

· Or, right-click on the grid and select from the ‘View’ menu.

· Or, select from the ‘View’ menu by clicking on the view caption which is directly above the wage grid.

When viewing wages for an employee, you can view either all ‘open’ wages for the employee, or wages for a particular year. To change your ‘employee view’:

· Press ‘Alt-W’ and select from the employee view menu

· Or, select from the employee view menu by clicking on the text at the right of the view caption directly above the wage grid.

Miscellaneous wages are described as:

Open wages are any wages that have not yet been verified. This includes both pending and released wages.

Pending wages are those wages that have been earned but have not yet been released for payment. These wages have a ‘earned date’ but they do not have a ‘release date’ and will not be paid until released.

Released wages are wages that have been released for payment. These wages have a ‘release date’ and will be paid in the employee’s pay period that includes this date.

Verified wages are those wages that have been reviewed and verified with a particular payroll period.

Recording a Miscellaneous Wage

To enter a miscellaneous wage:

1) Focus the grid, press ‘Insert’ or right-click and select ‘New’.

2) Enter an release date. By default the earned date will be the same as the release date. To pend the wage and not release it, press ‘Alt-P’

3) Select a pay item. This will determine whether the entry is salary, hourly, piece rate or commission. For salary and hourly pay items the hours, rate and premium columns are available. For piece rate and commission pay items the base, total sale and percent columns will be available.

4) Make the appropriate entries in the appropriate columns (the total earned will automatically calculate).

5) Press ‘enter’ or right-click and select ‘Save’.

Releasing Miscellaneous Wages

Pending wages can be reviewed and released in normal mode. To release a wage for payment:

1) Press ‘Alt+R’ or right-click on the wage and select ‘release’. This will put the wage into edit mode and focus the release date column in the wage grid.

2) Enter a ‘release date’ for the wage entry.

3) Press ‘enter’ or right-click and select ‘save’.

The wage will be included on the employee’s paycheck for the pay period that includes this ‘release date’. If the period that contains the ‘release date’ is already verified, you will not be able to release the wage on that date, try a later date. If the period is locked, you will be notified and only allowed to override the lock if you have the required user ability.

Release Date vs. Earned Date

Miscellaneous wages will effect the calculation of the premium rates for a period if they have been marked as a ‘regular wage’ (IsRegOT). Non-regular wages have no effect on these calculations (non-regular entries will be highlighted in yellow). The release date and earned date allow you to control the period whose premium rates is affected by the wage separately from the period in which the wage is paid to the employee. For instance, you can hold all commission and release them at the end of the month without have all the commissions effect the regular rate for the last period of the month.

A wage will effect premium rate calculations for the period that includes the earned date.

A wage will be paid to the employee in the period that includes the release date.

For wages that are earned in periods prior to the period in which they are paid (released), SuccessWare will recalculate the regular rates for the previous periods and make an special miscellaneous wage entry for additional premiums that must be paid (if any). This additional premium is based on the difference between the original regular rate of the prior period and the new regular rate as effected by the released wage.

For example:

· An employee earns a commission of $100 on 10/5/00 for the weekly period ending 10/7/00; the commission is not released.

- This commission is not included in this periods wage summary.

- This commission does not affect the regular rate or the premium rate calculation for the weekly period ending 10/7/00.

- The regular rate for the period ending 10/7/00 is calculated to be $15/hr.

- This period includes 5 hours of overtime (1.5 x regular rate) and 2 hours of a holiday pay premium (2.0 x regular rate).

· The wage is released on 10/26/00 to be included in the period ending 10/28/00:

- The commission is included in this periods wage summary.

- The commission does not affect the regular rate or the premium rate calculation for the weekly period ending 10/28/00.

- Including the newly released $100 commission, the regular rate for the period ending 10/7/00 is recalculated to be $18/hr.

- A special miscellaneous wage entry is made for the 5 hours of overtime with a regular rate of $3/hr (the difference between $15 and $18).

- The total pay for the addition 5 hours of overtime is (5*(3*1.5)) = $22.50.

- A special miscellaneous wage entry is made for the 3 hours of double time with a regular rate of $3/hr.

- The total pay for the additional 3 hours of holiday pay is (3 x (3 x 2.0)) = $18.00.

The additional premium wages are created for each related entry from the prior period. This allows SuccessWare to relate the additional premium to the appropriate pay item and job.

Pending a Miscellaneous Wage

Once a wage has been released, it can be pended again. Select the wage to be pended and press ‘Alt-P’. The release date will be cleared and the wage will now be pending.

Verifying Employees for Period Posting

When you have reviewed the timecard entries and miscellaneous wages and everything appears in order, click the ‘verify’ button on the bottom of the manager. The employee’s records for the period will be re-prepared, marked as ‘verified’ and the manager will return to Period Review mode. Once an employee is verified for a payroll period, his/her timecard or miscellaneous wages for that date range cannot be modified. All employees must be verified before the period can be posted.

Posting the Payroll Period

Once all employees have been verified, the payroll can be posted. Click the Payroll Periods button at the top of the manager. This puts the manager back in Payroll Periods mode. With the correct period selected in the period grid click the ‘Post’ button at the bottom of the manager, or, right click on the period in the grid and select ‘Post’ from the popup menu. The payroll period will post to general ledger.

Reconciling a Payroll Period

Periods can be reconciled from the payroll manager’s Payroll Periods mode. Only posted periods can be reconciled. To reconcile a posted period, select the period in the period grid and click the ‘Reconcile’ button at the bottom of the form, or, right click the period in the grid and select ‘Reconcile’ in the popup menu. This will open the Payroll Reconciliation form (this form can also be used to review previously reconciled periods).

The Payroll Reconciliation form has three tabs/pages:

· Payroll Checks

· Employee Deductions and Additional Employer Payroll Expenses

· Reconciliation

For additional information regarding reconciliation using a payroll service, click here.

Recording Employee Pay Checks

First record the check numbers and amounts of the employee’s payroll checks. This information will post checks to the bank account indicated at the top of the Payroll Checks page when you post the reconciliation.

Recording Deductions and Additional Expenses

Click the ‘Employee Deductions and Additional Employer Payroll Expenses’ button and go to the second page. The categories in this grid are preset in ‘Payroll Setup: Payroll GL: Deductions and Expenses’. In this grid, enter the employee deduction totals per category in the deduction column. Enter any additional employer expenses in the expense column. If a category is not a deduction or not an expense, the cell in the grid will be blocked out indicating that it is not applicable for that category.

Importing Reconciliation Information

If you have set up your period reconciliation import and you have created the reconciliation import files with you external payroll system and placed them in your import/export folder, you can click the import button and SuccessWare will import the paychecks, deduction and additional employer expense information according to the settings in your payroll setup.

Posting the Period Reconciliation

The third page shows the variance between the original posting of the period and the reconciliation. After all the check entries have been made and deductions and expenses recorded, the reconciliation total must balance. The lower left of the second page shows the reconciliation totals. The ‘Total Earnings’ should match the ‘Posted Earnings’ figure at the top of the reconciliation form. If these figures don’t match, you will be warned to review your payroll check entries and your deduction entries. You should double check these entries and correct them if necessary. Once you are sure your entries are correct, you can post the reconciliation.

The ‘LBM monitor’ section monitors your LBM Preset. It shows the LBM for this period, the average LBM (calculated on reconciled period history), and your LBM Preset. If the average LBM is less than or greater than the Preset by more the ‘Warning Threshold’, a message will appear indicating that you may want your adjust your LBM Preset in Payroll Setup.

Special Situations

Changing an Employees Pay Type

When changing an employee’s pay type from one type to another, care should be taken to make sure the employee is prepared for the last pay period of the original pay type before changing the pay type in employee setup.

When an employee is first prepared for a pay period, he/she is included in the period with the current pay type in the employee’s setup. Once the employee is in a prepared period, changing employee setup has no effect on the employee’s pay type for the prepared period.

For instance, if changing an employee from hourly to salary:

· First prepare the employee’s last hourly pay period (this is the last period chrologically in which the employee will be paid on an hourly basis).

· Then change the employee setup to have a salary pay type.

· When you prepare new periods for the employee, he/she will be inserted and prepared on a salary basis.

If an employee has already been prepared as hourly for the period ending 10/11/00, and he/she should have been salary for that period:

· Reset the period (this will remove all employees from the period),

· Change the employee setup

· Prepare the period

The employee will be reinserted into the pay period with the pay type specified in the employee’s setup.

NOTE: As a general rule of thumb, be sure all employees are set up properly before creating/preparing new periods.

Changing an Employees Pay Period

As with changing an employee’s pay type, when changing an employee’s pay period, make sure the last period of the original period type has been prepared before changing the employee setup.

When periods are first prepared, employees are included in the period as per their employee setup. When first preparing a weekly period, all employees set up as weekly will be included in the period.

Period ‘Effective Date’

Employees are inserted into a period with an ‘effective date’. This ‘effective date’ is the date after the ‘end date’ of the employee’s previous period, but not before the ‘start date’ of the period being prepared. Normally, this ‘effective date’ will be the same as the ‘start date’ of the period being prepared. When changing an employee’s pay period, the effective date will be different. For example, when changing an employee from a weekly to a monthly period:

· The employee’s last weekly period ending 10/11/00 has been prepared,

· We change the employee setup to a monthly pay period.

· We then prepare the monthly pay period ending 10/25/00.

· The employee is inserted into the monthly period with an effective date of 10/12/00.

Timecard entries and miscellaneous wages with dates between an employees ‘effective date’ and the periods ‘end date’ are included in wage summaries for the period.

Changing the Ending Day for a Period Type

If you need to change the ending day for a period, be sure to:

· Create and prepare any period of the particular type before you change the ending day for that type in payroll setup.

· If any periods have been created that should reflect the change for the particular type, they should be reset and deleted.

· Change the ending day for the period type in payroll setup

The next time you create a period for the particular type, it will use the new ending day.

Technical Information

Payroll and General Ledger Posting

Payroll Posting

Payroll posting can be set up to post using one of three different methods:

a) without an Estimated Labor Burden (ELB)

b) with an Estimated Labor Burden separate from job cost (posting to the default ‘Estimated Labor Burden’ account)

c) with an Estimated Labor Burden as part of job cost (posting to pay item accounts with earnings/wages)

		Figure/Amount	Where its posted	Where it comes from	ByDept
a.	(1)	Earnings	(Dr) Pay Item Accounts	Each WageSummary entry	X
	(2)	Posted Earnings	(Cr) Accrued Payroll (default)	Payroll Posted (Totals from 1)
OR
b.	(1)	Earnings	(Dr) Pay Item Accounts	Each WageSummary entry	X
	(2)	ELB	(Dr) Estimated Labor Burden (default)	(Earnings * LBMpreset) – Earnings	X
	(3)	Posted Earnings + Posted ELB	(Cr) Accrued Payroll (default)	Payroll Posted (Totals from 1 & 2)
OR
c.	(1)	Earnings + ELB	(Dr) Pay Item Accounts	Each WageSummary entry (Earnings * LBMpreset)	X
	(2)	Posted Earnings + Posted ELB	(Cr) Accrued Payroll (default)	Payroll Posted (Totals from 1)

All G/L posting for a period will use the date of the wage entry. For timecard entries this is the timecard date; for miscellaneous wages it is the release date.

Payroll Reconciliation

Depending upon the method used to post payroll, reconciliation posting will also post using one of three methods (all posting during reconciliation uses the ‘Check Date’ as the posting date):

		Figure/Amount	Where its posted	Where it comes from	ByDept
a.	(1)	Posted Earnings	(Dr) Accrued Payroll (default)	Original Posting Total
	(2)	Checks	(Cr) Payroll Bank Account	Employee check entries
	(3)	Deductions	(Cr) Employee Liability Accounts	Deduction entries
	(4)	Expenses	(Cr) Employer Liability Accounts (Dr) Employer Expense Accounts	Expense entries
OR
b.	(1)	Posted Earnings +Posted ELB	(Dr) Accrued Payroll (default)	Original Posting Total
	(2)	Posted ELB	(Cr) Estimated Labor Burden (default)	Original Posting Total
	(3)	Checks	(Cr) Payroll Bank Account	Employee check entries
	(4)	Deductions	(Cr) Employee Liability Accounts	Deduction entries
	(5)	Expenses	(Cr) Employer Liability Accounts (Dr) Employer Expense Accounts	Expense entries
OR
c.	(1)	Posted Earnings +Posted ELB	(Dr) Accrued Payroll (default)	Original Posting Total
	(2)	Posted ELB	(Cr) Burden Applied (default)	Original Posting Total
	(2)	Checks	(Cr) Payroll Bank Account	Employee check entries
	(3)	Deductions	(Cr) Employee Liability Accounts	Deduction entries
	(4)	Expenses	(Cr) Employer Liability Accounts (Dr) Employer Expense Accounts	Expense entries

NOTES: ByDept indicates a posting will be departmentalized. (default) indicates a default general ledger account which Is specified in General Ledger Setup.

Data Model

Tables

PR_EmpPayRate employee payrates related to pay items

PR_EmpPeriod period totals for an employee, links to wage summary

PR_MiscWages individual misc wages record for employee

PR_PayItem code, description, GL account/subaccount for labor expenses

PR_Period period totals for the entire period (all employees), links to emp period

PR_Premium premium code, description, multiplier

PR_PremiumRate premium rates for employees per period

PR_Reconciliation contains description, deduction amount and/or expense amount for reconciliation

PR_SalarySplit salaried employee split percentages (percentage, pay item, department)

PR_Setup Payroll setup (periods, OT, LBM)

PR_SetupExpense description, Employee GLAcct/Sub, IsDeduction, IsExpense, Employer Liability GLAcct/Sub, Employer Expense GLAcct/Sub (feeds each new reconciliation)

PR_WageSummary Summarizes all timecard entries and misc wages by employee, payitem/premium/department
(generated during payroll preparation)