The Importance of Verifying Payroll Amounts CHARLOTTE FIDLER

Why Prove Out a Payroll? So your fellow employees like you and bring you chocolates because their paychecks are correct So the IRS does not come knocking at your door because of payroll inaccuracies So you can take vacation because you aren’t spending time making all kinds of corrections So you don’t have to call support to back it out Job security

Why Prove Out a Payroll? Seriously……. Efficiency – eliminate work Employees get paid correctly when payroll is run so additional correction payrolls are not needed Increase Accuracy Verify taxes are paid correctly and minimal adjustments needed to the IRS Retirement paid correctly and minimal adjustments are needed Quarterly reports like 941 more accurate Time Saving Increase Efficiency and Increase Accuracy which will save time

How Often Should a Payroll be Verified? DURING EVERY PAYROLL!!!! Always be sure at minimum Payroll Input report is accurate Verify Calculation Totals Report Amounts tie out “Subject to” amounts for taxes tie out Reasonable amounts were paid

Verifying a Payroll Agenda Increase Payroll Efficiency using Alio input forms Payroll Input Time Entry by Job Code Stipend Entry Payroll Input with Calculation ESP Time Entry or EP Time Entry Using max limits on Automated Payroll Processing Verifying amounts on Payroll Calc Verifying Federal & State Taxable Verifying SS and MED Taxable Reports helpful in verifying Using the Payroll Tracking Report Calc Inquiry a useful tool Common Labor Distribution Errors Tying out numbers for Labor Distribution Tying out FAS Journal Entry

Increase Payroll Input Efficiency 3rd Party Time Entry programs that interface with alio Payroll Input Check out WSC solution AlioTime ESP Time Entry or EP Time Entry Alio Payroll Input Enter payroll by individual Employees Most efficient if have jobs setup for various type of pays Alio Time Entry by Job Code Enter time filtering by Location, Job Code, Rate Type, Primary Job and/or Account Number Most efficient if time sheets are grouped by Job Code and possibly Location Alio Stipend Entry Most efficient if paying fixed payments for multiple employees Alio Payroll Input with Calculation Add/modify payroll input records, deductions, benefits and taxes processed thru payroll calculation payroll input records, deductions, benefits and taxes processed thru payroll calculation

Payroll Input HEPAY08A.FMX taxes processed thru payroll calculation Possible to access Payroll Input from Employee Pays

Payroll Input HEPAY08A.FMX Select ID and enter Time Adjust records as needed ALWAYS using tab to move across record If changing earn codes, use default values to populate if possible

Time Entry by Job Code HEPAY08A.FMX Filter by Location, Job Code, Rate Type and/or Primary Job Flag Key in time for appropriate employees and adjust as needed Payroll input records are created when saved

Stipend Entry HEPAY07A.FMX Create fixed payment input records for multiple employees Must create a Stipend master record using SMSTI01A.FMX Can override fields during stipend entry and add or adjust account numbers Enter Employees receiving the stipend and adjust as needed

Payroll Input with Calculation HEPAY10A.FMX Add/modify payroll input records, deductions, benefits and taxes processed thru payroll calculation Drill down capabilities Modify Employee Ded/Ben Adjustments Ability to run Calc after making adjustments

Using max limits in Automated Payroll Processing Max Total Payroll, Max Employee Pay, Max Employee Time If any limit is exceeded, payroll processing is stopped and error appears on Calc Total, errors and warning Report

Calculate your Payroll and Verify Reports Complete your Payroll Input Run Payroll Calculation Calculation Totals, Errors and Warnings report produced when running a Payroll Calculation is an invaluable tool to verify your payroll NOTE: Be sure to check the last page for errors and warnings, correct all errors and recalculate prior to proceeding. Errors will not allow payroll to continue Warnings should be checked but will not stop the payroll from running

Calculation Report – Total Wages

Verify – Gross Wages & Total Wages Regular Wages 594,325.23 Non Regular Wages 14,159.51 Overtime 8,682.62 Reimbursements + 1,075.00 Gross Wages 618,242.36 Total Wages Overtime + 8,682.62 Total Wages 617,167.36

Verify – Federal and State Wages Gross Wages 618,242.36 Retirement/Tax Def Ded - 40,099.45 IRC125 - 30,135.02 Life Ins >50,000 + 1,780.56 Reimbursements - 1,075.00 Federal/State Wages 548,713.45 Run Print Deduction/Benefits Register Ded/Ben Group = FED Pay Subject To = Federal Wages 547,725.07 not equal 548,713.45 Difference = 988.38

Verify – SS & Medicare Subject To Social Security & Medicare Gross Wages 618,242.36 IRC125 - 30,135.02 Life Ins >50,000 + 1,780.56 Reimbursements - 1,075.00 Social Security & Medicare 588,812.90 Run Print Deduction/Benefits Register Ded/Ben Group = FICA Pay Subject To = SS & Medicare Calc 588,812.90 not equal 587,824.44 Difference = 988.46 SSD Subject To 587,824.44 MEDD Subject To 587,824.44 SSB Subject To 587,824.44 MEDB Subject To 587,824.44

Wages = Sum Subject To for SS and Federal Federal Wages 548,713.45 FEDM Subject To 316,056.36 FEDS Subject To 231,668.71 Difference 988.38 547,725.07 SS & Medicare Calc 588,812.90 MEDD, SSD 587,824.44 Difference 988.46 Calculation Higher than Subject to Reason: People Missing FEDM or FEDS, MEDD, MEDB, SSD, SSB Use Mandatory Deductions on Pay Control Ded/Ben Subject to higher than manually calculated FED and SS Reason: Employees being paid have duplicate Ded/Bens Use Print Deduction/Benefits Register to find Employees with duplicates

Use Mandatory Deduction/Benefit Groups

Use Mandatory Deduction/Benefit Groups

New Ded/Ben Calc/Amounts Comparison Report – HCDBA01B.FMX/REP New Report/Tool to assist in balancing Compares payroll calc Ded/Ben amounts to payroll calc Amounts Provides listing of employees processed in Calc with option to run Detail Summary Discrepancies only Filtered by date range with Pay Control required Optional filtered by Pay Control Ded/Ben Codes Employee Nos

Created New Report – HHDBA01A.FMX/REP

Created New Report – HHDBA01B.FMX/REP

Created New Report – HHDBA01B.FMX/REP

Verify – Number of Employees Paid + Net Pay Check Count 4 Direct Deposit Count 348 Number of Employees Paid 352 Check + Advice = Net Pay Check Total 4,344.14 Advice Total 419,930.23 Net Pay 424,274.37

Verify – Reimbursements and Life Ins > 50,000 Verify Reimbursement amount Run Payroll Input Report or Print Earnings Register Select Control No Select Earn Code Group for all Reimbursement Earn Codes Verify Life Ins. > 50,000 amount Select Earn Code Group for 4800 Earn Code

Payroll Input Report

Print Earnings Register

Payroll Input Report Most errors occur during payroll input Verify using the Print Payroll Input Report or Print Payroll Input by Account Report Select sort that matches time sheet order – Emp Category or Emp Name or Location Verify totals Verify account numbers Save report These reports are not available after Payroll Update

Payroll Input Report

Payroll Input Report by Account No

Print Deduction/Benefit Register Verify Deductions and Benefits Run Print Deduction/Benefit Register for All Payroll Calc Ded Total 193,967.99 & Payroll Calc Ben Total +216,233.21 = Amount Cur Total at end of report 410,201.20

Verify Deductions & Wages Net Pay + Deductions = Gross Wages Net Pay 424,274.37 Ded Total + 193,967.99 Gross Wages 618,242.36

Calculation Check Register Grand Total = Payroll Calc Net Pay

Verify Direct Deposit–Emp Direct Deposit Listing Total = Advice Total 419,930.23 = 419,930.23

Additional Useful Payroll Registers Print Short Payroll Register Includes gross, federal, state, social security, misc ded total, and net 1 line per employee Print Long Payroll Register Detailed listing of employee checks including account information and federal tax information New version includes custom signoff Labor Distribution Edit List Shows Labor Distribution breakdown Shows errors if select Show errors only = yes Allows fixing error prior to running checks and advices and updating payroll Calculation Totals/Error & Warnings Duplicate copy of final Payroll Calc Report

Additional Useful Payroll Registers Print Short Payroll Register Includes gross, federal, state, social security, misc ded total, and net 1 line per employee

Additional Useful Payroll Registers Print Long Payroll Register Detailed listing of employee checks including account information and federal tax information

Additional Useful Payroll Registers Labor Distribution Edit List Shows Labor Distribution breakdown Shows only errors if select Show errors only = yes Allows fixing error prior to running checks and advices and updating payroll

Payroll Tracking Reports Identifies differences between salaries and ded/ben amounts comparing target payroll to current payroll being run Select Payroll Tracking On/Off check box during final calc on the Pay Control screen to flag payroll as payroll used for comparison Be sure to click “save” When Payroll Update is run, records in check history are marked with payroll tracking flag of “Y” Reports compare current payroll against payroll with records with tracking flag and shows differences over specified %

Payroll Tracking Reports Payroll Tracking Report – HPTRC01A.REP Displays old and new data for employee pays records that differ when meeting or exceeding defined thresholds for Employee pay period rate change Employee total pay change Employee time change Payroll Tracking Deductions/Benefits Report – HPTRC02A.REP Displays prior data, current data and difference for employee deductions and benefit amounts that differ when meeting or exceeding defined thresholds for defined Ded/Ben Group Amount % change Payroll Comparison Report – HPTRC04A.Rep Compares and displays Earn Codes and Deduction/Benefit amount variances between two payrolls For more information see Alio Pay - Guide to Payroll Inquiries And Reports Chapter 2: Running a Payroll Tracking Report Resource ID: 4671

Calculation Inquiry a Useful Tool Found on Payroll Processing Menu Based on latest Payroll Calc by Control No Unique Control No. allows multiple records – same Control No. overrides Check tab = check information Click on Pay Rate amounts to drill down to pay record information Amounts tab = pay type (buckets) totals Direct Deposit tab = Bank no, acct number and amounts Other tab = pay related info NOTE: If history is changed after updating payroll, Calculation Inquiry will NOT reflect the change

Calculation Inquiry Search by Control No Emp No Emp Name

Calc Inquiry – Checks tab – Pay info Click on Pay Rate amount to drill down to pay record information

Calc Inquiry – Checks tab – Ded/Ben Click on Ded Ben Code to drill down to Ded Ben Code information

Calc Inquiry – Direct Deposit tab Click on Ded Ben Code to drill down to Ded Ben Code information

Calc Inquiry – Direct Deposit tab Click on Ded Ben Code to drill down to Ded Ben Code information

Labor Distribution Verification Run using check date as cutoff date Run as Show Errors Only = “YES” first time and correct all errors before proceeding Will process all entries up to that date Will include voids, account adjustments and single checks if labor distribution not run for these Verify Pay Control totals to Payroll Calculation amounts

Solving Labor Distribution Errors If you get errors when running Labor Distribution Update: Identify type of error Identify record error occurs in Follow procedure to correct Rerun Labor Distribution

Solving Labor Distribution Errors

Error Message on Labor Distribution Employee number and name Code/Plan that is incorrect Check number Type BE = Benefit Expense BL = Benefit Liability DL = Deduction Liability DTRG – Due to/Due From Account Amount, debit = 1, credit = -1 Invalid Account No or Ded/Ben plan

Labor Distribution Most Common Errors Account number does not exist in Chart of Accounts in FAS Masked account number is not correct or missing in the Deduction Benefit Master Distribution Group is either blank or incorrect on Emp Pays, Distribution or Payroll Input record

Account Number Does Not Exist Possible reason: Account number was not built when entering a new fund or dimension If determine account number SHOULD exist: To correct: Go to Chart of Account Add new account number Rerun Labor Distribution Update

Account Number Does Not Exist Possible reason: Ded/Ben Master mask trying to build an inaccurate number If determine account number SHOULD NOT exist: To correct: If BE type and Benefit Pay Type is PREG, identify check and use Check History Inquiry to check Pay Class If supplemental Pay Class is regular pay (01-04) and it should be nonregular (11 & higher), account mask is trying to prorate benefit amount to incorrect number Use Pays History Change to change Pay Class Rerun Labor Distribution Update

Employee’s Distribution is Incorrect or Missing Identify Check Use Check History Inquiry to verify Distribution Group Double Click on Pay Rate on Employee’s Check Add account on Employee Distribution screen if needed Use Pays History Change to select appropriate Distribution Group Rerun Labor Distribution Update

Account Number Does Not Exist or Incomplete BE type and Benefit Pay Type is PREG Use Check History Inquiry to check Pay Class

Account Number Does Not Exist or Incomplete Use Pays History Change HHPAY02A.FMX to Change Pay Class or Distribution Group on individual Checks lines for an employee Caution: Be sure you are on the correct check and pay line when making changes

Account Mask Incorrect or Missing Identify Ded/Ben causing problem Go to Ded/Ben Master Check account masks for accuracy Check Select Account Mask BE = Debit Account Mask BL or DL = Credit Account Mask Correct errors or add accounts Be sure to check ALL plans Rerun Labor Distribution Update

Error Message on Labor Distribution Error of this type usually is a setup issue Go to Ded/Ben Master, find code and plan Fix Select Account Mask and rerun Labor Distr

Labor Distribution Verification Match Labor Distr to Payroll Calc Gross = Calc Gross Gross………………………………………..………………….618,242.36 Benefits = Calc Benefits Total Benefits Total………….......................................216,233.21 Debits = Calc Gross + Benefits Total Gross + Benefits Total……………………………........834,475.57 Ded Liability = Deductions Total Deduction Total………………………………………......193,967.99 Ben Liability = Benefits Total Benefit Total……………………………………………..…216,233.21 Net = Calc Net Calc Net……………………………………………………..…424,274.37 Credits = Calc Net + Ded Total + Ben Total 424,274.37 + 193,967.99 + 216,233.21 = 834,475.57 Due to From = varies according to funds used If all Ded Liabilities go to one fund Due to From = Gross

Labor Distri – Post to Adjust Journals

FAS Journal Entry Verification Debit Amount = 834,990.73 Benefit Expense 216,233.21 Gross Pay (Expense) 618,242.36 Due to From Total 515.16 Credit Amount = 834,990.73 Benefit Liability 216,233.21 Deduction Liability 193,967.99 Net Pay 424,274.37

Check History Inquiry – Check tab

Validating Employee Check Accounts

Verifying Employee Check Amounts Benefit Expense = Benefit Liability 511.04 = 511.04 Gross = Deduction Liability + Net 1,662.95 + 500.00 = 2,162.965 = 586.71 + 1,576.24 Interfund Debit = Interfund Credit Only if multiple funds

Verifying a Payroll Checklist Visit infolink to download a copy of: “Verifying and Proving Out a Payroll Checklist” http://infolink.hammer.net/login Limit to Resource ID: 693 OR Limit with Text Search: Verifying and Proving Out a Payroll