microsoft dynamics ax 2012 r2 payroll: payroll processing...

Microsoft Dynamics® AX 2012

R2

Payroll:

Payroll Processing

(Public Sector)

December 2012

Version 1.0

2

PS Demo Script – Payroll Processing

Contents Demo Overview .................................................................................................................................................................................... 3

INTRODUCTION ............................................................................................................................................................................. 3

AUDIENCE ....................................................................................................................................................................................... 3

SCENARIO OVERVIEW ................................................................................................................................................................... 4

PROBLEMS THIS DEMO ADDRESSES ........................................................................................................................................... 5

KEY PAINS OR BUSINESS IMPERATIVES ...................................................................................................................................... 5

PURPOSE OF DEMO (SOLUTIONS TO PAINS, BENEFITS, VALUE PROPOSITIONS) ................................................................ 5

KEY BENEFITS AND SOLUTIONS .................................................................................................................................................. 5

DEMO PRESET CONFIGURATION ................................................................................................................................................. 6

DEMO: PAYROLL PROCESSING .................................................................................................................................................... 6

INTRODUCTION ............................................................................................................................................................................. 6

GENERATE EARNINGS ............................................................................................................................................................... 7

REVIEW AND EDIT PAY STATEMENTS ...................................................................................................................................12

ISSUE PAYMENTS .....................................................................................................................................................................14

GENERATE AN ADDITIONAL PAY STATEMENT ....................................................................................................................19

POST PAY STATEMENTS ..........................................................................................................................................................25

GENERATE VENDOR INVOICES ..............................................................................................................................................27

CLOSE THE PAY PERIOD ..........................................................................................................................................................29

EMPLOYEE SELF-SERVICE ........................................................................................................................................................31

CONCLUSION ...............................................................................................................................................................................32

GLOSSARY AND ADDITIONAL BACKGROUND CONTENT ......................................................................................................32

Disclaimer ...........................................................................................................................................................................................33

3


Demo Overview

INTRODUCTION This document and its included script introduce you to the payroll process and the new features included in Microsoft Dynamics

AX 2012 R2.

When you complete this document and demo script, you will be able to:

Describe how Microsoft Dynamics AX 2012 R2 provides a timely way to pay and manage an organization’s payroll needs.

Discuss how payroll provides the flexibility needed during the payroll processing.

Manage the payroll process end to end.

AUDIENCE The included script should be used to demonstrate the value of Microsoft Dynamics AX 2012 R2 to a business decision maker

(BDM). The executives that you are presenting to will find value in this script if they are challenged with:

Meeting payroll needs in a timely way.

Ensuring accuracy in the payroll process.

Providing the flexibility to deal with challenging situations.

Maintaining tax compliancy.

Working with multi-state payroll situations,

The demo script targets the:

Payroll administrator who is challenged by the difficulties of the day-to-day payroll processes.

The following role examples represent key decisions makers, selection process personnel, and influencers and/or evaluators:

Payroll Manager – The Payroll Manager is responsible for ensuring the oversight of all payroll personnel. The person in

this role is responsible for ensuring that all business process and safeguards are enforced and reporting data is accurate

and timely.

Payroll Administrator (Mia) – The Payroll Administrator is responsible for the overall data entry and processing of

payroll. The person in this role is also responsible for accurate and timely payroll data for reporting. Employees’

earnings, tax, and deductions must be accurate and issued in a timely recurring fashion in order to meet numerous

federal, state, and local payroll and tax laws.

Human Resources Manager (Claire) – The Human Resources Manager manages the needs of a company's employees.

The person in this role develops and manages areas such as employment programs, salary compensation, job

evaluations, benefits, and training programs. The Human Resources Manager struggles with obtaining information to

make decisions, managing change, and maintaining employee data using a manual process.

Compensation and Benefits Manager (Jodi) – The Compensation and Benefits Manager conducts compensation and

benefit analysis. The person in this role maintains fairness in pay structures and ensures job analysis is tied to

compensation planning; this person also handles preferred HR vendor relationships.

Accounting Manager (Phyllis) – The Accounting Manager manages the accounting department by processing general

ledger transactions, reviewing and approving transactions, and reviewing aging reports. The person in this role also

ensures that the accounting team accurately completes financial procedures on time.

IT Manager (Tim) – Tim is responsible for the systems used within the company. Tim struggles with a complicated

security setup and manual processes.

4


SCENARIO OVERVIEW

Every pay period, Mia, the Payroll Administrator, faces a daunting task of paying all the employees at the City of Maple. With the

large workforce at the city, Mia must accurately maintain all employee payroll records and the information needed to properly

process the payroll each pay period. Employees are continually submitting changes to their tax setup information and several

other payroll related factors. Mia must update this information in a timely fashion. Part of these responsibilities also fall on the

HR Assistant and the Compensation and Benefits Manager at the city. Mia must coordinate with Brooke (HR Assistant) and Jodi

(Compensation and Benefits Manger) each pay period to make sure all updates are in place and ready for payroll. After all

updates are in, Mia starts the task of running the pay period process of paying the employees. The preceding chart highlights

this complex and critical process of managing the payroll process.

This script focuses on the payroll process and some of the various exceptions and configurations that occur at City of Maple. The

script will highlight the following:

Earnings generation:

o Entering and validating exceptions on earnings such as vacation usage (both schedule based and salary based)

o Employee on extended leave

o Employee holding multiple positions

o Employee works in an alternate location for tax purposes

o Recurring earnings (car allowance)

Pay statement generation:

o Multiple tax regions in a single pay statement

o Manual benefit adjustments

o Position specific benefit calculations

o Gross up bonus calculation

Issuing payments and posting payroll to the general ledger

o Printing checks

5


o Generating ACH bank file for direct deposit

o Posting payroll costs and liabilities to the general ledger

o Generating vendor invoices for benefit and taxes

Employee self-service

o Reviewing an employee’s pay statement history and detail from the employee self-service area of the enterprise

portal

PROBLEMS THIS DEMO ADDRESSES This script focuses on solving the challenge of processing numerous unique situations and payments that are seen in the payroll

department in a timely and accurate way each pay period.

KEY PAINS OR BUSINESS IMPERATIVES Maintaining employee setup data

Issuing payroll statements accurately

Issuing payroll statements in a timely manner

Sharing data with other areas of the organization (such as Human Resources and Finance)

Determining proper taxation and reciprocity

Maintaining tax compliance

PURPOSE OF DEMO (SOLUTIONS TO PAINS, BENEFITS, VALUE PROPOSITIONS) Integration points with other modules of Microsoft Dynamics AX 2012 R2

Date effective setup for both company and employee data

Manual overrides

Position based for greater flexibility and control

KEY BENEFITS AND SOLUTIONS Position-based payroll:

o Pay multiple positions for a single employee with unique compensation rates, benefits, and tax regions

Integrated:

o Worker (employee or contractor)

o Position

o Human Resources fixed compensation

o Human Resources benefits and deductions

Enhanced to manage garnishments and tax levies

o Employment leave

o Employee self-service

Pay statements

Benefit accruals

Automatic gross up payment calculations

Automatic deduction arrears

Flexible frequency support

Built-in tax engine maintained by Microsoft covering most federal, state, and local tax calculations

6


Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements

Generate vendor invoices

Close the pay period


DEMO PRESET CONFIGURATION 1. Make sure that the virtual machine (VM) is up and running that you are logged on. This script was written to work with

the Microsoft Dynamics AX 2012 R2 RTM VM, which was released in December 2012.

2. All users are in the CONTOSO domain and the password is “pass@word1”. So if you are to log on as Mia, you would use

CONTOSO\MiaPSUS with the password as pass@word1.

DEMO: PAYROLL PROCESSING This demo is about introducing a streamlined payroll process in Microsoft Dynamics AX 2012 R2. This demo provides an

overview of the major concepts to introduce you to new key features and functionalities that are available to users of Microsoft

Dynamics AX 2012 R2.

INTRODUCTION Microsoft Dynamics AX 2012 R2 is introducing new processes for managing the payroll process. This section provides an

overview of how users can be made productive with the payroll process in Microsoft Dynamics AX 2012 R2.

7


GENERATE EARNINGS

Enter vacation for a worker with a salary based position

Generate earnings

Scenario and presenter notes

Before you begin, highlight the value of simplicity by walking the audience through the navigation and landing page

to familiarize them with the user interface so they are able to follow you as you transition from screen to screen.

Entering earnings: In this Microsoft Dynamics AX 2012 R2 scenario, the payroll administrator, Mia, will enter all

earnings to be paid to the workers. This is demonstrated in a variety of ways, including manual edits and system

generated. You should point out that earnings can be imported using the Earnings import AIF service. They can

expose this service with a template in Excel using the Excel Add-ins for Microsoft Dynamics AX, or a custom

integration between an external time capturing system and Microsoft Dynamics AX through the AIF service

framework.

Perform the following steps to understand the process:

1. Log on as MIAPSUS (or optionally as

ADMINPSUS).

2. Open the Payroll module.

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




8


3. On the Area page, under Common, select

Earnings statements, and then click Earnings

statements. The Earnings statement list page

is displayed.

Notice that the FactBoxes include information on the earnings statements. Mia can see the Position assignment

information of the worker that the earnings statement belongs to. Mia can also see summary and reference

information regarding the earnings statement, such as Worker Earnings totals, which summarize the earnings

statement by earning code; Worker earnings totals, which summarize hours and amounts; and lastly, the Pay

statements, which links to all pay statements which payout earnings for the selected earnings statement.

4. Create a new earnings statement to record

vacation time as an exception entry.

Click the Earnings statement button in the

New button group on the Action Pane.

5. Enter the following information in the header:

Worker: Brad Sutton

Pay cycle: bw

Pay period: 12/22/2013 – 1/4/2014

6. In the Earnings statement lines section, click

the Add line button on the Action Pane.

7. Enter the following information in the new

line:

Earning date: 1/4/2014

Earning code: Vacation

Quantity: 4.0000

Leave all other fields at the default values.

8. Click the Close button on the Earnings

statement form.

9


9. Generate all earnings statements for the pay

period.

On the Area page, under Periodic, select

Earning statement processing, and then click

Generate earnings.

10. Enter the following:

Pay cycle: bw

Pay period: 12/22/2013 – 1/4/2014

11. Click OK.

Note that 43 earnings statements were

created or updated.

10


GENERATE PAY STATEMENTS

Generate pay statements,

Discuss alternate flows and features within the pay statement generation process:

o Tax:

Auto reciprocity determination and tax calculation

o Benefit deduction arrears tracking:

All or nothing method or Partial method

Option to track and recover in future pay statement

o Fringe benefit calculations:

Offsetting earning record auto-generated


Pay statement generation: In this Microsoft Dynamics AX 2012 R2 scenario, the payroll administrator, Mia, will

generate the pay statements that form the basis for the employees’ actual paychecks. This is the heavy-lifting process

of payroll. During this process, all earnings from the prior scenarios are converted to earning lines on a pay statement

(this includes the creation of offset earnings for gross up and fringe benefit earnings). Then benefits (both deductions

and contributions) and taxes are all calculated. During the tax calculation, automatic tax impact is automatically

determined based on the worker’s residency, work location (from the earnings), configured employer tax regions,

and other worker-level parameters for specific taxes (such as non-resident agreements for state income taxes).

Lastly, if the calculated net pay is negative, the system will process deductions using the arrears configuration of the

benefits to prevent a negative net pay.

Perform the following steps to understand the process:


ADMINPSUS).


Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




11


3. Generate all pay statements for the pay

period.

On the Area page, under Periodic, select Pay

statement processing, and then click

Generate pay statements.


Pay cycle: bw

Pay period: 12/22/2013 – 1/4/2014

Payment date: 1/10/2014

Payment run type: Primary

5. Click OK.

Note that 44 pay statements were created or

updated.

12


REVIEW AND EDIT PAY STATEMENTS

Adjust pay statement for a worker by adding a one-time deduction.


Frequently, it is necessary to review and make edits to individual pay statements after the initial calculation has

occurred. This is done for a variety of reasons, including, but not limited to, a need to add or modify a benefit or tax

amount to correct prior issues, or to take a one-time deduction.


ADMINPSUS).



Pay statements,and then click All pay

statements. The Pay statement list page is

displayed.

Notice that the FactBoxes include information on the pay statements. In the Pay statement totals, Mia can

quickly see a summary of the pay statement, including gross pay, deductions, net pay, and contributions. In the

Position assignment FactBox, the workers positions are listed for easy reference and access. The Payments

FactBox gives reference and access to the payment journal and related information, such as check number and

direct deposit disbursement information. Lastly, if the pay statement had arrears generated from it, those newly

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




13


created arrears will show in the Arrears FactBox.

Edit a calculated pay statement:

4. Select the pay statement for Brad Sutton

with a pay period ending on 1/4/2014.

5. Select the Benefit calculations link on the

left.

6. Click the Add line button on the Action Pane

above the Benefit deductions grid.


Benefit: Flex Park Participate

Deduction amount: 10.00

Because a change was made to Brad’s pay

statement, the entire statement must go through

the recalculation process to ensure all taxes and

benefits are still accurate given the edit.

8. Click the Recalculate button in the yellow

message pane.

9. Click the Close button on Brad’s pay

statement form.

14


ISSUE PAYMENTS

Submit pay statements to a payment journal.

Print checks.

Generate ACH bank file for direct deposit.


At this point, customers have a couple of options on the next steps to proceed with. Some customers may need to

post their payroll-related costs to the general ledger prior to issuing the checks and creating the direct deposit file,

and others may choose to post after issuing the payments. Typically, the most common is to issue prior to posting, so

this is how the scenarios will proceed. But it is good to note that this step and the “Post pay statements” scenario are

interchangeable. But in switching them, the posting may need to be run multiple times for each batch of pay

statements processed (including one off payments).


ADMINPSUS).


3. Submit all pay statements for the pay period.


statement processing, and then click Submit

pay statements.

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




15



Pay cycle: bw

Pay period: 12/22/2013 – 1/4/2014

5. Click OK.

Note that a payment journal with 52

vouchers was created along with a single

invoice. Keep track of the journal number for

later use.

Note: The invoice is used to pay out the net

pay of all pay statements. It is a single invoice

that all payment journal vouchers will be

automatically settled to on the posting of the

payment journal. This invoice and all

payment journal vouchers are created for the

payroll vendor specified in the payroll

parameters. The actual payment documents

(check and direct deposit) are created for the

actual employee.

6. Generate all payments (checks and direct

deposit file) for the payment journal created

earlier.



Payment journal.

16


7. Select the payment journal with the Journal

batch number matching the journal number

noted earlier.

8. Click the Lines button on the Action Pane.

Generate check payments.

9. Click Functions, and then click Generate

payments.

Enter the following:

Method of payment: Payroll-CK

Bank account: PSUS PAYRL

10. Click OK.

17


11. Verify the next available check number.

Note: If you want to print the checks to

screen for demonstration purposes, click the

Document button, select Screen in the left

pane, and then click OK.

12. Click OK.

Note: If you printed to screen, you will need

to close the report that displays the pay

statements.

Generate a direct deposit file for the electronic

payments.


payments.


Method of payment: Payroll-EL


14. Click OK.

18


15. Click the Yellow folder icon to browse to

the location where you want to save the

ACH file. Also provide a file name in the File

name field.

16. Enter the actual payment date of the

payments being processed, 1/10/2014.

Note: Optionally, you can print the actual

pay statements for distribution to

employees at this point by marking the Pay

statement check box in the Print group. The

printer can be specified by clicking the Pay

statement button and selecting the

appropriate printer.

17. Click OK.

Note that 29 transactions were included in

the ACH file. The total dollars is also listed.

At this point, all payments have either been

included in an ACH file for offline submission to

the bank, or a check was printed for them. The

payment journal must now be posted to commit

the cash disbursement to the bank and general

ledger. This posting does not post the payroll

costs. It simply credits the bank, debits the payroll

proxy vendor, and settles the payment journal

lines with the invoice that was created earlier.

The actual pay statement will be posted later on

in the Post Pay statements scenario, which will

post the payroll costs and liabilities.

18. Click Post, and then click Post.

Note that 52 vouchers were posted.

19. Click the Close button on the Journal

voucher form and also on the Payment

journal form.

19


GENERATE AN ADDITIONAL PAY STATEMENT

Create a gross up bonus pay statement as a secondary payment for a worker in the same pay period.


Now that the primary pay run has been run for the pay period, it is common that additional payments may need to

be made for things like bonuses, corrects, gross up payments, and so on. This step will walk through giving a gross up

bonus to a worker who already received primary pay in the last run. However, note that additional pay runs do not

have to be run after the primary. There is no dependency or requirements to the order in which pay runs are

processed.


ADMINPSUS).



Earning statement, and then click Earning

statements. The Earnings statement list

page is displayed.

4. Select the earnings statement for Brad

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




20


Sutton with a pay period ending on

1/4/2014.

Note that only a single earnings statement

can exist for a worker and pay period

combination. The individual lines may be

processed in different pay statements. In

this example, a statement already exists for

Brad because the Primary pay run has

already been completed. A new line will be

added to it to be processed in a different

pay statement.

5. In the Earnings statement lines section,

click the Add line button.

6. Enter the following information on the new

line:

Earnings date: 1/4/2014

Earning code: Anniversary award

Rate: 1,000.00

7. Select the new line, and then click the

Release lines for payment button on the

Action Pane.

21


8. Since a single pay statement needs to be

generated, we are able to quickly generate

an invoice for Brad for his gross up

Anniversary award bonus.

9. Click the Pay statement button in the

Process group on the Action Pane.

Enter the following information:

Payment date: 1/10/2014

Payment run type: Gross up

10. Click OK.

Note that one pay statement was

generated.

11. Click the Close button on the earnings

statement form.


Pay statements, and then click All pay

statements. The Pay statement list page is

displayed.

13. Double-click the pay statement for Brad

Sutton with a pay period ending on

1/4/2014 and a Payment run type of Gross

up.

Note that the 1,000.00 Anniversary award earning shows

along with a system generated Anniversary award gross up

earnings for 441.96. The Anniversary award earning code

is configured as a gross up earning and in turn specifies the

gross up earning code to use for the additional earnings.

Since the payment run type of gross up was selected all

gross up earnings for Brad were included and the gross up

was auto calculated based on the sum of all employee

taxes. This calculation also includes any tax on the system

22


generated earnings. The result of the payment is a net pay

of 1,000.

14. Click the Submit for payment button on the

Action Pane to submit the pay statement to

payment journal for payment.

Note: The option to post this single pay

statement to the general ledger at the same

time exists by selecting the Post the

selected pay statement check box. This will

not be done for this scenario because this

pay statement will post to the general

ledger with all other pay statements created

in prior scenarios for the Primary pay run in

a later scenario.

15. Click the Submit button.

Note that a payment journal with two

vouchers was created along with a single

invoice. Keep track of the journal number

for later use.

20. Generate all payments (checks and direct

deposit file) for the payment journal created

earlier.



Payment journal.

23


21. Select the payment journal with the Journal

batch number matching the journal number

noted earlier.

22. Click the Lines button on the Action Pane.

Generate a direct deposit file for the electronic

payments.


payments.


Method of payment: Payroll-EL


24. Click OK.

24


25. Click the Yellow folder icon to browse to

the location where you want to save the

ACH file. Also provide a file name in the File

name field.

26. Enter the actual payment date of the

payments being processed, 1/10/2014.

27. Click OK.

Note that two transactions were included in

the ACH file. The total dollars is also listed.

The payment journal must now be posted to

commit the cash disbursement to the bank and

general ledger.

28. Click Post, and then click Post.

Note that two vouchers were posted.

29. Click the Close button on the Journal

voucher form and also on the Payment

journal form.

25


POST PAY STATEMENTS

Post pay statements to the general ledger.


This scenario will post all pay statements to the general ledger. All payroll costs (earnings, benefit contributions,

employer taxes) will be posted. All pay statements for the selected pay period that have not previously been posted

to the general ledger will be included in the process together. Depending on the batch transfer rules setup in the

general ledger for the pay statement document, the pay statement lines may post in detail or be summarized.

The following is a list of all the postings that will occur as a result of running this process:

Earnings:

o Earning cost is debited to the main account specified on the earning code.

o Earning costs are credited to the Salary clearing account defined in the Payroll parameters form.

Benefit deductions:

o Deduction amount debits the Salary clearing account defined in the Payroll parameters form.

o Deduction amount credits the deduction main account specified on the benefit plan.

Benefit contributions:

o Contribution amount debits the contribution main account specified on the benefit plan.

o Contribution amount credits the main account, as defined in the Posting definitions in the general

ledger setup based on the main account used for the debit.

Employee taxes:

o Tax amount debits the Salary clearing account defined in the Payroll parameters form.

o Tax amount credits the main account specified on the tax code.

Employer taxes:

o Tax amount debits the main account specified on the tax code.

o Tax amount credits the main account as defined in the Posting definitions in the general ledger setup

based on the main account used for the debit.

If you want to show the full ledger entry for a specific pay statement, you can go to the pay statement list page or

open the detail of a specific pay statement (Payroll > Common > Pay statements > All pay statements) and click the

Financials tab on the Action Pane. From there, you can click the Subledger journal entries button to see the full entry

for the selected pay statement. This can be done before or after posting has been run. If you do this before posting is

run, it shows how it will appear in the ledger. If it is viewed after the posting is run, it shows the actual posted entry.

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




26



ADMINPSUS).


3. Post all pay statements for the pay period.

On the Area page, under Periodic, select

Pay statement processing, and then click

Post pay statements.


Pay cycle: bw

Pay period: 12/22/2013 – 1/4/2014

2. Click OK.

Note that 45 pay statements were

successfully posted to the general ledger.

27


GENERATE VENDOR INVOICES

Generate invoices for vendors associated with benefits and taxes.


Frequently, many of the benefit and tax liabilities (both employee and employer) need to be paid to the respective

vendor for the benefit or tax. This scenario will automatically create and post invoices on the vendors that are

configured for the respective benefit plans, worker benefit enrollments, or tax codes. This is useful for those

transactions where the actual amount must be directly paid, such as garnishments, and some withholding taxes.


ADMINPSUS).


3. Generate vendor invoices for all pay

statements for the pay period.



Generate vendor invoices.

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




28



Pay cycle: bw

Pay period: 12/22/2013 – 1/4/2014

Select All invoices

5. Click OK.

Note that 18 vendor invoices were created.

29


CLOSE THE PAY PERIOD

Close the pay period to processing so that no additional transactions can be generated in the pay period.


This step will close the period to further processing. Earnings, pay statements, and other processes can no longer be

run for closed periods. Earning lines can still be added to earnings statements for a closed period, but they will be

paid in a later pay period.


ADMINPSUS).


3. On the Area page, under Setup, select Pay

cycles and pay periods.

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




30


4. In the list on the left, select the bw pay cycle.

5. In the list on the right, select the pay period

with a Period start date of 12/22/2013 and a

Period end date of 1/4/2014.

6. Change the Status to Closed.

31


EMPLOYEE SELF-SERVICE

Review pay statements on the Employee Self-Service area of the Enterprise Portal.


1. Log on as BradPSUS.

2. On the taskbar, click the Internet Explorer

icon.

3. Navigate to the Employee services portal at

http://dynamicsax.contoso.com/sites/Dynami

csAx/EmployeeServices/.

4. In the Personal information group, click the

Pay statements link.

5. Pay statements for Brad are displayed.

6. Click one of the pay statements to view and

print the details.

Note: The pay statements displayed here are

automatically filtered to show only pay

statements with a payment date less than or

equal to today.

Generate earnings

Review earnings

Generate pay

statements

Review and edit pay

statements

Issue payments

Additional pay

statement

Post pay statements




http://dynamicsax.contoso.com/sites/DynamicsAx/EmployeeServices/

http://dynamicsax.contoso.com/sites/DynamicsAx/EmployeeServices/

32


CONCLUSION This demonstration has taken you through many of the typical processes Mia runs in a normal pay period at the City of Maple.

Various worker and position configurations and situations have been highlighted, including:

Earning exceptions for workers in both scheduled and salary positions.

Employment leave integration.

Multiple positions for a single worker.

Automatic tax reciprocity for multiple tax regions.

Benefit adjustments.

Gross up payment.

Primary payroll process for a full pay period.

Integration with Accounts Payable for benefit and tax invoice creation.

Pay statements on the Employee self-service.

GLOSSARY AND ADDITIONAL BACKGROUND CONTENT Worker – An internal party (person). A worker is hired to work for a company, organization, or legal entity and can be an

Employee or a Contractor.

Position – Represents an allocation for headcount. Controls numerous settings on how payroll performs calculations.

Earnings statement – A source document that contains all earnings for a specific pay period for a worker. May include

earnings for multiple positions for the worker. This document is always open to be able to make adjustments to prior

period earnings for payment in a current pay period.

Pay statement – A financial source document that contains all the earnings, benefits, and taxes for a specific payment to

a worker. This document is a financial document that records costs and liabilities in the general ledger when posted. It is

also the source for payment journal lines, which are created for paying out the net pay of a pay statement.

Gross up payment – Gross up payments are used when workers receive a specific, additional amount in their paycheck

after taxes and all deductions. An example might be a car payment or relocation expense. The taxes are added to the

payment as additional earnings automatically by the system after calculating the taxes.

Fringe benefits – Fringe benefits are earnings that workers are taxed on, even though they do not receive any additional

currency amount increase in their pay. An example might be a life insurance policy or a fitness allowance.

Deduction arrear – If the net pay of a pay statement is negative, the system will back off benefit deductions until the

check is at or above zero. Deductions that are removed are considered in arrears, and are owed to the employer.

Depending on the configuration of the benefit, these deduction arrears amounts may be tracked for recovery in a future

pay statement.

Benefit accruals – Benefit accrual plans, such as vacation and sick time off, let you track accrual balances as they

increase and decrease throughout the plan year. These balances accrue based on a rate per hour.

33


Disclaimer

© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista, Microsoft Dynamics and other

product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names

and brands may be claimed as the property of others.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of

the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be

interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information

provided after the date of this presentation.

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