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PAYROLL

WINTEAM

Education Department | TEAM Software [email protected]

January 2017 | Version 2017.01

Copyright © 2017 TEAM Software, Inc. Page 1

Table of Contents Winteam ........................................................................................................................................0

Objectives ............................................................................................................................. 3

Other Compensations and Deductions ................................................................................... 3 Other Compensations .....................................................................................................................3

Compensation Method .......................................................................................................................... 5 Properties .............................................................................................................................................. 8 Defaults for Employee Setup Screen (Optional) .................................................................................... 9

Other Deductions ......................................................................................................................... 11 Deduction Method............................................................................................................................... 12 Limits – Hours Rules ............................................................................................................................. 13 Include hours ....................................................................................................................................... 14 401K Options ....................................................................................................................................... 14 Properties ............................................................................................................................................ 15 Defaults for the Employee Setup Screen (Optional) ........................................................................... 17 Garnishments ....................................................................................................................................... 17

Assign a Compensation/deduction code to an employee ............................................................... 24 Garnishment Priorities and Allocation ................................................................................................ 26

Hours Types and Hours Categories ....................................................................................... 28 What does an Hours Type Tell WinTeam?........................................................................................... 29 Where Hours Types Are Used .............................................................................................................. 30 Hours Types and Hours Categories Example ....................................................................................... 31

Payroll Taxes ....................................................................................................................... 33 Chart of Accounts ......................................................................................................................... 33 Taxes ............................................................................................................................................ 33

Defaults .............................................................................................................................. 34

Dates Used in Payroll ........................................................................................................... 34

Five Ways Timekeeping is Entered ................................................................................ 35 Timekeeping screens .................................................................................................................... 35

Timekeeping Screen Options ............................................................................................................... 36

Payroll Calculations......................................................................................................... 38 Rates by job.................................................................................................................................. 38

Ways to Use Rates By Job .................................................................................................................... 39 How the system determines an employee’s pay rate: ........................................................................ 40


Review Payroll Before Creating the Wizard................................................................. 41

Create and Edit a Payroll Batch ..................................................................................... 41 Paycheck frequency ...................................................................................................................... 43 Employee filters ........................................................................................................................... 44 Compensation/Deduction Filters ................................................................................................... 45 Creating automatic batch - notes .................................................................................................. 46 Payroll Review and edit pay .......................................................................................................... 47 Filter for paycheck accuracy .......................................................................................................... 48 Payroll review and edit pay - tabs ................................................................................................. 49

Other Info Tab ...................................................................................................................................... 49 Wages Tab ........................................................................................................................................... 49 Compensations Tab ............................................................................................................................. 50 Deductions Tab .................................................................................................................................... 51 Garnishment ........................................................................................................................................ 52 Taxes Tab ............................................................................................................................................. 53 Payroll Review and Edit Pay – Drill Downs .......................................................................................... 54

Update to GL .................................................................................................................... 55 preview payroll journals ............................................................................................................... 56

Payroll Journals – Payroll Taxes ........................................................................................................... 56 Payroll Journals – Labor Distributions ................................................................................................. 57 Payroll Journals – Other Compensations ............................................................................................. 58 Payroll Journals – Other Deductions ................................................................................................... 59 Payroll Journals – Tax Allocation ......................................................................................................... 60 Payroll Journals – Recap ...................................................................................................................... 61

Print Checks ...................................................................................................................... 62 payroll checks ............................................................................................................................... 63

Layout Type.......................................................................................................................................... 63 nacha bank transmission .............................................................................................................. 64

Check Types ......................................................................................................................................... 65

Figuring Federal/FICA Tax Deposit ................................................................................ 66 Payroll 941 Report – Tax Liability Report ....................................................................................... 67 Payroll 941 Report – Payments Report .......................................................................................... 67 Payroll 941 Report – Recap Report ................................................................................................ 68 Employee W-2 Report ................................................................................................................... 69

Output Type ......................................................................................................................................... 69 Report Type ......................................................................................................................................... 70 Unemployment Compensation Tax Report ......................................................................................... 70

Workers’ Compensation Report .................................................................................................... 71


Objectives

1. Learn how to create Other Compensations and Other Deductions.

2. Learn how to assign compensations and deductions to employees.

3. Learn where Hours Types and Hours Categories are used.

4. Learn what GL’s need to be setup for Payroll.

5. Learn how to set up Payroll Taxes.

6. Learn how Defaults are setup.

7. Learn the dates used in Payroll

8. Learn the five ways in which Timekeeping can be entered.

9. Learn how WinTeam calculates payroll.

10. Learn how to review payroll before creating the Payroll Processing Wizard.

11. Learn how to create and edit a Payroll Processing Batch.

12. Learn how to preview the Payroll Journals before you print checks.

13. Learn how to print checks and create the NACHA file.

14. Learn how to update to the General Ledger.

15. Learn how to determine your Tax and Worker’s Compensation liability.

Other Compensations and Deductions

Other Compensation and Other Deduction Codes are located in the Payroll Module. In this section, you will create templates that are later selected in the Employee Master File for individual use.

OTHER COMPENSATIONS

Description – Use the Description field to view the description of an existing Other Compensation Code or define the description of a new Other Compensation Code.

» Compensation Codes may include: o Bonuses o Government Add-ons o Reimbursements o Mileage o Back Pay o Severance


o Uniform Pay o Sales Commission

Compensation Type – Use the Compensation Type field to group similar Other Compensation Codes. For example, you can base the Compensation Type on the frequency of compensation (One Time, Per Pay Period, Monthly, Quarterly, Annually).


Compensation Method

Use the Compensation Method area to select how to calculate amounts for this Other Compensation Code. Two methods are available, and your selection determines how the system displays fields and options on the Other Compensation Codes screen.

$ Amount – Select to calculate the amount based on a fixed dollar amount entered in the Amount field.

$ Amount Per Hour – This option is not applicable for Salaried employees. Select to calculate the amount based on a per hour amount that you enter in the Amount field. If you select this option, the Min/Max Amount per Check and the Include Hours options are enabled.

GL NUMBER TO CHARGE

The system displays the GL Number to Charge area when the Compensation Method is Amount per Hour.


Normal Labor Account – Post activity for this Other Compensation code to the GL accounts selected for the Wages/Salary of each Hours Type being paid. The GL account selected for the Wages/Salary for each Hours Type is in the Hours Types screen.

Special – Displays an additional GL Number field to select a special General Ledger account. The system uses this Special General Ledger account to post all activity for this Other Compensation Code, regardless of the accounts selected in the Hours Types screen. The system then displays this GL Number in the Special GL Number field found on the Employee, Other Compensations and Deductions, and the Other Compensations Tab when this code is selected for an employee.

LIMITS

Min / Max Amount Per Check – This section displays only if the Compensation Method is Amount Per Hour. This is the minimum and maximum dollar amount that can be paid for an Amount Per Hour Compensation.

» Minimum Amount – Enter the minimum amount that can be paid for an Amount Per Hour Compensation.

» Maximum Amount – Enter the maximum amount that can be paid for an Amount Per Hour Compensation.

Example: An employee is entitled to a uniform allowance and you need to ensure that they are paid at least $15.00 toward that uniform allowance per paycheck. You could enter $15.00 in the Minimum Amount field. Even if the employee's amount per hour calculates to $12.80 for the uniform allowance, the system increases the amount paid to $15.00. Likewise, if you want to establish a maximum amount per paycheck, enter the amount in the maximum amount field. This will ensure that the employee is not paid more than the maximum allowed amount for the compensation.

Weekly Hours Limit – The system displays this field when Compensation Method is “Amount per Hour.” Use the Weekly Hours Limit field to limit the number of payable work hours per week, which the system uses to calculate amounts for this Other Compensation Code. The limit applies to the total hours worked by an employee for all Jobs during the pay period.

Example: If the Weekly Hours Limit for an Other Compensation Code is 40.00 hours, and an employee works at three different Jobs in one week for a total of 50.00 hours, the system uses only the first 40 hours worked to calculate the amount.


Combine Hours – This option is only available for Other Compensations with an Amount Per Hour Method. Select the Combine Hours check box to force the system to adhere to Weekly Hours limits if a Compensation Code is used more than once for the same employee on the same paycheck. The only time you would use this feature is to prevent an employee from being paid for hours more than what is specified for the weekly limit.

Pay OT Rate for OT Hours – The system displays this field when Compensation Method is Amount per Hour. Select the Pay OT Rate for OT Hours check box to use the overtime rate for any overtime hours related to this Other Compensation Code.

Example: An employee works 8 hours of overtime and receives an Other Compensation Amount of $0.50 per hour. If the Pay OT Rate for OT Hours check box is selected, the system pays the 8 hours at $0.75 ($0.50 x 150%) per hour assuming an overtime rate of time and one half.

INCLUDE HOURS

This area is available when the Compensation Method is $ Amount Per Hour. When creating a new compensation record based on $ Amount per Hour, the Non-Exempt check box is selected by default. Note: Exempt hours are any hours paid that belong to an Hours Type with the “Exempt from Overtime Always” option selected. Overtime – Select the Overtime check box to include all overtime and double time hours for this Other Compensation Code. If they Include Overtime Hours check box is not selected (unchecked), all overtime and double time hours will be exempt from the amount per hour compensation. Overtime Hours include those that are system calculated overtime, as well as those hours that are entered with an Hours Type set up as Treat as Overtime Always or Treat as Double Time Always (see Hours Type Defaults screen). System calculated overtime can include those overtime methods whose overtime rules are based on Daily hours limits. If someone exceeds the daily hours limits (as what can occur in California when using Overtime Methods 2 or 3) and overtime develops, the overtime hours would not be included in the computation of the amount per hour compensation.

Exempt Hours (Vacation, Sick, Holiday and Cash Outs) – Select the Exempt check box next to each exempt hours (Vacation, Sick, Holiday or Cash Outs) to include for this Compensation Code. Exempt hours are any hours paid that belong to an Hours Type with the “Exempt from Overtime Always” option selected.

Exempt - Other – Select the Exempt - Other check box next to include exempt hours that are not Vacation, Sick, Holiday or Cash Outs. This might be things such as jury duty, funeral leave or some other Hours type where the employee is being paid when not actually working.


Properties

Select from a variety of characteristics for this Other Compensation Code.

CHECK CALCULATIONS

Taxable/Nontaxable – Use the Taxable check box to set this Other Compensation Code to a Taxable amount. For a new record, the default is Taxable. The system updates Taxable earnings to the Employee’s W-2 file. Clear this check box if the earnings are Nontaxable. Include in Qualified Gross – Select to include earnings for certain Other Compensation Codes, such as bonuses and commissions, in Qualified Gross Earnings calculations. The system uses Qualified Gross Earnings as a basis to calculate certain other deduction amounts in payroll. Include in 401k Computations – Select to combine earnings for certain Other Compensation Codes, such as bonuses and commissions, with normal wages to calculate the 401(k) deduction amount for a paycheck. Do not select this check box for non-income Other Compensation Codes, such as mileage or travel reimbursement. Include in Social Security Tips on W-2 – The Taxable check box must be selected for this check box to be available as a selection. Select this check box to include this Other Compensation as Tips on the Employee W-2. When this code is used, the amounts will be shown in Box 7 (Social security tips) on the Employee W-2. These are tips the employee reported to you even if you did not have enough employee funds to collect the Social Security tax for them. This does not include Allocated Tips, which are shown in Box 8 on the W-2 form. Tips are also included in Box 1 (Wages, tips, other compensation) and Box 5 (Medicare wages and tips) on the W-2. Include in Minimum Wage calculation – The Taxable check box must be selected for this check box to be available as a selection. Select this check box to include this Other Compensation in the Minimum Wage calculation. This is normally used when the Other Compensation is for Tips. Include in Accruals – Select the Include in Accruals check box to include this Other Compensation when performing a Labor Accrual based on Method 3 (Payroll Batches). Include in Equipment Tracker Escrow – Use the Include in Equipment Tracker Escrow check box to include the total amount for this Other Compensation Code in the Equipment Escrow calculation.

CHECK PRINTING

Print YTD Balances on Check Stub – Select to print the year-to-date balance for this Other Compensation Code on the paycheck stub.


Group by Compensation and Paycheck Description – Select to total all amounts for this Other Compensation Code and group them as one item on the paycheck stub. If you do not select this check box and this Other Compensation Code is used more than one time on a paycheck, the system lists each occurrence separately on the paycheck stub. Example: An employee receives a Commission, which is an Other Compensation item, on five

separate Jobs. To include the Commission for the five Jobs on the next paycheck, you enter a separate record for each Job. If Group by Deduction and Paycheck Description check box is selected for Commissions, the system totals the five Commissions and shows them as one item on the paycheck stub. If Group by Deduction and Paycheck Description is not selected for Commissions, the system lists each of the five amounts separately on the paycheck stub.

Special Print Order – This field is visible ONLY if using the Framed Sections Paycheck Layout. If there is a print order entered for a code, this will be considered a special comp/deduction and will cause any activity for this code on the paycheck to print in the Special Comp/Ded frame of the paycheck stub. This will only occur if there is a Special Comp/Deduct Section Description entered with the Framed Sections Layout (see Payroll Defaults, Paycheck Information tab).

YEAR-END REPORTING

Special Tax Code – Select a Special W-2 Description to tie to the Compensation Code. For any activity within the calendar year for the code, this is totaled and placed on the W-2 in the appropriate spot. If there are tax adjustments for this same Special W-2 description, then the amount of the adjustments is reflected in the amount displayed on the W-2.

WORKERS’ COMPENSATION

Workers’ Comp Code – Use the Workers’ Comp Code field to define a Workers’ Compensation code for reporting purposes for this Other Compensation Code. For Other Compensation Codes that are taxable, but not reportable, you may want to set up a Workers’ Compensation Code of “None.” Include in Tax Allocation for Workers’ Comp – This check box displays only if you have selected to use the Tax Allocation program in Payroll Defaults. This applies only to those Compensations that are taxable.

Defaults for Employee Setup Screen (Optional)

Use the Defaults for Employee Setup Screen area to define optional default values. Amount – Leave blank or use the Amount field to define a default amount (either a fixed dollar amount or an amount per hour) for this Other Compensation Code. If you select this Other Compensation Code in the Other Compensations and Deductions screen for an employee, you can change the default amount if necessary.


If you are in the Employee Other Compensations and Deductions (Other Compensations tab) screen and you have selected an Other Compensation Code that uses the Compensation Method of Amount per Hour, the system displays a warning message (once you attempt to save the record) if you enter an amount that is greater than $1.00. G/L Number – The system displays this field if Compensation Method is $ Amount. Leave blank or select a default General Ledger account for this Other Compensation Code. If you select this Other Compensation Code in the Other Compensations screen for an employee, you can change the default if necessary. Job Number – The system displays this field if Compensation Method is $ Amount. Leave blank or select a default Job Number for this Other Compensation Code. If you select this Other Compensation Code in the Other Compensations screen for an employee, you can change the default if necessary. Paycheck Description – Enter the description that should be printed on the paycheck for this compensation. Basis – Use the Basis area to select the frequency of an Other Compensation Code. If you select this Code in the Other Compensations and Deductions screen for an employee, you can change the default if necessary. Three options are available for the default Basis.

» One Time – Select if this Other Compensation Code occurs one time only. After one paycheck

includes the one-time Other Compensation amount, the system removes this Code from the

Other Compensations and Deductions screen for the employee.

» Recurring - No Limit – Select if this Other Compensation Code occurs an unlimited number of

times without a dollar limit. Regardless of the number of paychecks created for this employee

with this Other Compensation Code, the system does not remove this Other Compensation

Code from the Other Compensations and Deductions screen for the employee.

» Recurring with Limit – Select to display a Limit field to enter a dollar limit for this Other

Compensation Code. The Other Compensation can occur any number of times until the dollar

limit is reached. After the dollar limit for this employee is reached, the system automatically

removes this Other Compensation Code from the employee’s Other Compensation and

Deductions screen. The system does allow you to have a negative Recurring with Limit and the

system will recognize it as "reaching the limit.”


OTHER DEDUCTIONS

Description – Use the Description field to describe the Other Deduction Code. You must enter a description for each new Other Deduction record. After you have created an Other Deduction code, the system displays this Description with the corresponding information in other areas of the Payroll module.

» Deduction Codes may include: o Medical Insurance o Dental Insurance o Vision Benefits o Union Dues o Uniforms o Pay Corrections o Employee Loans

Deduction Type – Use the Deduction Type field to group Other Deduction Codes that are similar in nature. For example, Deduction Types could be based on the underlying reasons for the deductions (i.e., Insurance, Garnishments, Savings, Union Dues, etc.). Deduction Types can also be used to set up a


frequency if the deduction is not deduction from every paycheck (Monthly Deductions, Quarterly Deductions, Annual Deductions). Active – The Active check box is selected as the default for new records. Garnishment – Select the Garnishment check box to create the deduction as a "garnishment.” Note: We will discuss how to set up a Garnishment Deduction later in our training guide. Is Admin Fee for Garnishment – Select the Is Admin Fee for Garnishment check box to associate an administrative fee for a specific garnishment. Garnishment Type – The Garnishment Type list is hard coded into WinTeam.

Deduction Method

Use the Deduction Method option to calculate amounts for this Other Deduction Code. Seven methods are available, and based on the one selected, the system displays different fields and options. $ Amount – If you select this option, the system calculates the Other Deduction amount based on a fixed dollar amount entered in the $ Amount field. Amount per Hour – If you select this option, the system calculates the Other Deduction amount based on a dollar amount per hour entered in the $ Amount field. The Min/Max amount Per Check area is enabled if this Deduction Method is selected. Percent of Gross – If you select this option, the system calculates the Other Deduction amount based on a percentage of the employee’s qualified gross earnings. You have the option to enter the percentage in the Percent field. The system calculates gross earnings as follows:

Qualified Gross = Normal Wages + Other Compensations that have the Include in Qualified Gross option selected.

Percent of Disposable Earnings – If you select this option, the system calculates the Other Deduction amount based on a percentage of the employee’s disposable earnings. You have the option to enter the percentage in the Percent field. Disposable Earnings (DE) are calculated as follows:

Disposable Earnings = Qualified Gross * - Mandatory Taxes ** - Other Deductions *** where *Qualified Gross = Normal Wages + Other Compensations that have the Include in Qualified Gross option selected **Mandatory Taxes = All taxes except Additional Withholdings ***Other Deductions = Other Deductions with a Deduction Method of $ Amount, Amount per Hour, or Percentage Gross where they Include in Disposable Earnings check box is selected.


Percent Adjusted DE – If you select this option, the system calculates the Other Deduction amount based on a percentage of the employee’s adjusted disposable earnings. You have the option to enter the percentage in the Percent field. This method is similar to the Percent Disposable Earnings method, except that you can choose which of the Other Deductions the system includes (or does not include) in calculating adjusted Disposable Earnings. When you select this option, the system displays the Deductions for Adjusted Disposable Earnings option field that lists all existing Other Deduction Codes, except for those with the Deduction Method of Percent Adjusted DE. You can use this option to select the Include option for just those Other Deductions you want included when calculating disposable earnings. Percent of Selected Garnishment – This option is available if the Admin Fee check box is selected. Rather than using a specified amount for Admin Fees associated with a Garnishment, the system will use a percent of the Garnishment. Percent of Form W-2 “Box 1” – If you select this option the system will calculate a percentage of an employee’s “Wages, tips, other compensation” from box 1 of the W-2 for Insurance Benefits. WinTeam will calculate the deduction each pay period based on information contained in the Employee Master File Other Comps/Deducts screen. Note: When you enter a new Other Deduction Code, you choose whether to include this new Other Deduction Code in computing adjusted disposable earnings for any existing Other Deduction Codes that use the Percent Adjusted DE method. The system will do this for any new Other Deduction Code you create, with the exception of a Deduction Method of Percent Adjusted DE.

Limits – Hours Rules

Minimum/Maximum Amount Per Check – This is the minimum and maximum dollar amount that can be deducted for an Amount Per Hour Deduction. Use this section in instances when a minimum or maximum amount must be deducted. You can use either or both of these limits when applicable. During payroll processing, the system ensures that the employee pay is deducted for at least the minimum amount, but not more than the maximum amount. Weekly Hours Limit – The system displays this field when the Deduction Method is Amount per Hour. Use the Weekly Hours Limit field to limit the number of payable work hours per week, which the system uses to calculate amounts for this Other Deduction Code. The limit applies to the total hours worked by an employee for all Jobs during the pay period.

Example: If the Weekly Hours Limit for an Other Deduction Code is 40.00 hours, and an employee works at three different Jobs in one week for a total of 50.00 hours, the system uses only the first 40 hours worked to calculate the amount.


Combine Hours – Select the Combine Hours check box to force the system to adhere to Weekly Hours limits if a Deduction Code is used more than once for the same employee on the same paycheck. The only time you would use this feature is to prevent an employee from being paid on hours more than what is specified for the weekly limit.

Include hours

This area displays when the Deduction Method is “$ Amount per Hour.” When creating a new deduction based on % Amount per Hour, the Non-Exempt check box is selected by default. Non-Exempt hours are any hours that belong to an Hours Type that is not marked as “Exempt from Overtime Always.” Include Overtime Hours – Select the Include Overtime Hours check box to include all overtime and double time hours for this Other Deduction Code. If they Include Overtime Hours check box is not selected, all overtime and double time hours will be exempt from the amount per hour deduction. Overtime Hours include those that are system calculated overtime as well as those hours that are entered with an Hours Type set up as Treat as Overtime Always or Treat as Double Time Always (see Hours Type Defaults screen). System calculated overtime can include those overtime methods whose overtime rules are based on Daily hours limits. If someone exceeds the daily hours limits (as what can occur in California when using Overtime Methods 2 or 3) and overtime develops, the overtime hours would not be included in the computation of the amount per hour deduction. Exempt Hours (Vacation, Sick, Holiday and Cash Outs) – Select the Exempt check box next to each exempt hours (Vacation, Sick, Holiday or Cash Outs) to include for this Deduction Code. Exempt hours are any hours paid that belong to an Hours Type with the “Exempt from Overtime Always” option selected. Exempt - Other – Select the Exempt - Other check box next to include exempt hours that are not Vacation, Sick, Holiday or Cash Outs. This might be things such as Jury Duty, Funeral Leave or some other Hours type where the employee is being paid when not actually working.

401K Options

Use the 401K Options to tie a deduction to an existing 401(k) plan for reporting purposes. This option accommodates those companies who have differing 401(k) plans, instead of one master company 401(k) policy.


Properties

CHECK CALCULATION

Section 125 Cafeteria Plan – Select this check box to designate the deduction as Section 125. Section 125 deductions must be pre-tax in at least one jurisdiction, so the Pre-Tax check box will select by default. Pre-Tax – Select this check box to set the status of the Other Deduction Code to tax deductible (selected) or not tax deductible (cleared). It is EXTREMELY IMPORTANT that you select the Tax Deductible option correctly, since this field determines if the Other Deduction is subtracted from earnings before they are taxed or after they have been taxed. If you select the Tax Deductible option, the system calculates and subtracts the Other Deduction amount before taxes are figured, and then updates this amount to the employee W-2 file. If you select this check box, the Include in Gross Earnings check box is available. Include in Gross Earnings – This check box is available for all Tax Deductible Other Deduction Codes. If this box is selected, the tax deductible amount does not decrease the Gross Earnings for applicable tax jurisdictions. Note that the standard 401(k) deduction that is system calculated (not through an Other Deduction Code) is considered to have this check box selected and will never deduct from the employee's Gross Earnings. Gross Earnings will print on the Employee W-2 Report under the column headings Earnings Amount and Earnings YTD. Include in Disposable Earnings – Use the Include in Disposable Earnings check box to indicate if this deduction code is included in the Disposable Earning amount. Disposable Earnings (DE) are calculated as follows:

DE = Qualified Gross * - Mandatory Taxes ** - Other Deductions *** Where *Qualified Gross = Normal Wages + Other Compensations that have the Include in Qualified Gross option selected **Mandatory Taxes = All taxes except Additional Withholdings; ***Other Deductions = Other Deductions with a Deduction Method of $ Amount, Amount per Hour or Percentage Gross where they Include in Disposable Earnings check box is selected.

Include in 401k Computations – If you select this option, the system subtracts amounts related to this Other Deduction from normal wages to calculate the 401(k) deduction amount on a paycheck. If you do not select this option, the system excludes amounts related to this Other Deduction when calculating the 401(k) deduction. For example, Other Deductions, such as payroll savings, should have this option selected so that the system subtracts this Other Deduction amount from normal wages before


calculating the 401(k) deduction. On the other hand, Other Deductions, such as Medical Insurance, should not have this option selected. Include in Accruals – Select the Include in Accruals check box to include this Other Deduction when performing a Labor Accrual based on Method 3 (Payroll Batches). Typically, Other Deductions are not items you would accrue for but you do have the option here, if you want to include them. Include in Equipment Tracker Escrow – Select the Include in Equipment Tracker Escrow check box to include the total amount of the deduction taken using this code as part of the Equipment Escrow calculation. Update to AP Invoices – Use the Update to AP Invoices check box to enable the ability to enter a Vendor Number (or have the Vendor Number default) to the Other Compensations and Deductions, Other Deductions tab in the Employee Master File. If you use this Other Deduction Code for an employee, and this option is selected, the system will require you to enter a Vendor # in the employee's Other Compensation and Deduction, Other Deductions tab. However, if you do not select this option, the Vendor # field is locked on the Employee's record and you cannot enter a Vendor #.

CHECK PRINTING

Print YTD Balances on Check Stub – Select this option to print the year-to-date balance for this Other Deduction Code on the paycheck stub. If you do not select this option, the system saves the year-to-date balance for this Other Deduction, but does not print the year-to-date balance on the stub. Group by Deduction and Paycheck Description – Use this option to group the same deduction code with the same paycheck description together on one line instead of seeing each line separated. If you do not select this option, and this Other Deduction Code/Paycheck Description is used more than one time on a paycheck, the system lists each occurrence of this other deduction separately on the pay stub.

YEAR-END REPORTING

Special Tax Code – Select a Special W-2 Description to tie to the Deduction Code. For any activity within the calendar year for the code, this is totaled and placed on the W-2 in the appropriate spot. If there are tax adjustments for this same Special W-2 description, then the amount of the adjustments is reflected in the amount displayed on the W-2.

WORKERS’ COMPENSATION

Workers’ Comp Code – If an Other Compensation/Deduction Code is set up as taxable/tax deductible, you are required to enter a Workers’ Compensation Code. This is used for reporting purposes. Otherwise, you may leave this field blank. You will need to set up a Workers’ Compensation Code of


None to use for any Other Compensation/Deduction Codes that are taxable/tax deductible but are not reportable for Workers’ Compensation purposes. Include in Tax Allocation for Workers’ Comp – This check box displays only if you have elected to use the Tax Allocation program in Payroll Defaults. This applies only to those Deductions that are tax-deductible. Select this check box to include this Deduction when computing the Workers’ Compensation on the Tax Allocation Journal. This check box is NOT selected by default.

Defaults for the Employee Setup Screen (Optional)

The selections made here default to the Other Compensations and Deductions, Other Deductions tab in the Employee Master File. Amount - The system displays this field if you select the Deduction Method of $ Amount, Amount per Hour or Garnishment. You may leave this field blank or enter a default amount (either a fixed dollar amount or an amount per hour) to use when pulling this Other Deduction into the Employee Master File Other Compensations and Deductions, Other Deductions screen. You may overwrite this default amount on the Employee Master File. Percent – The system displays this Percent field if you select the Deduction Method of Percent of Gross, Percent of Disposable Earnings or Percent of Adjusted DE. GL Number – The GL Number field displays for all Deduction Methods. You may leave this field blank or use it to select a default General Ledger account for the system to use when pulling this Other Deduction Code into the Employee Master File, Other Compensations and Deductions (Other Deductions tab) screen. You may overwrite this default amount in the Employee Master File, Other Compensations and Deductions screen. The GL Number you select is then used to post activity for this Other Deduction. Job Number – The Job # field is optional. You may leave this field blank or use it to select a default Job Number for the system to use when pulling this Other Deduction Code into the Employee Master File, Other Compensations and Deductions, Other Deduction screen. You may overwrite this default amount in the Employee Master File, Other Compensations and Deductions screen. The Job Number you select is then used to post activity for this Other Deduction. Vendor Number – The Vendor # field displays for all Deduction Methods and is used when Other Deductions have AP Invoices with specific vendors to update. Use the Vendor # field to enter or select a default Vendor # for the system to use when pulling this Other Deduction Code into the Employee Master File, Other Compensations and Deductions, Other Deductions screen. Note that only Other Deductions Codes with the Update to AP Invoices option selected allow a Vendor # to be entered in the Employee Master File, Other Compensations and Deductions screen. If defaulted, the Vendor Number displays in the footer section of the Other Deductions tab.


Paycheck Description – The Paycheck Description prints on employee paychecks to describe the Deduction. The Description of the deduction code is what initially defaults to this field. However, you may modify it to be something different.

BASIS

Use the Basis options to select how often an Other Deduction should occur. The selection made defaults to the Employee Master File, Other Compensation and Deductions, Other Deductions screen when this Other Deduction Code is added to the employee record. You may overwrite this default amount in the Employee Master File, Other Compensations and Deductions screen. Three options are available for the Basis that applies to this Other Deduction Code. One Time - If you select this option, this Other Deduction occurs just one time. For example, assume the Other Deduction Code has been set up with a Basis of One Time and this code has been selected in the Other Compensations and Deductions, Other Deductions screen for an employee. After one paycheck is created for this employee, and this paycheck includes the One Time Other Deduction, the system removes this Other Deduction Code from the screen for this employee. Recurring No Limit – If you select this option, the Other Deduction occurs an unlimited number of times without a dollar limit. In other words, if an Other Deduction Code is set up with a Basis of Recurring – No Limit in the Other Compensations and Deductions, Other Deductions screen for an employee, each paycheck includes this Other Deduction. The deduction continues until the code is deleted from the Employee Master File, Other Compensations and Deductions screen for this employee. Recurring with Limit – If you select this option, the system displays a Limit field to enter a dollar limit for this Other Deduction Code. This indicates that this Other Deduction occurs as many times as needed, until the dollar limit is reached. In other words, if an Other Deduction Code is set up with a Basis of Recurring with Limit on the Other Compensations and Deductions (Other Deductions tab) screen for an employee, the Other Deduction continues to appear on this employee’s paychecks until the cumulative total of this Other Deduction is equal to the dollar limit. Once the dollar limit for this employee is reached, the system removes this Other Deduction Code from the Other Compensation and Deductions screen automatically. The system does allow you to have a negative Recurring with Limit and the system will recognize it as reaching the limit. Tax Jurisdictions – This area displays only when Pre-Tax is selected. Use the Tax Jurisdictions area to define all or some of the tax jurisdictions in which this Other Deduction Code is tax deductible. Select All if the Other Deduction Code is tax deductible for all tax jurisdictions. This is the default selection. Select Pick From List to display a Taxable selection box containing all of the available tax jurisdictions. Select the check box for the tax jurisdictions that apply to this Other Deduction Code.


Garnishments

Garnishments are generally described as involuntary deductions in which neither the employer nor the employee has control. The employer is required by law to deduct a certain amount of the employee’s pay and send (remit) it to a person or government agency to satisfy the employee’s debt. Garnishments and their associated fees are set up on the Other Deduction Codes screen and then added to the Employee Master File. When a withholding order is received for a particular employee and state, you only need to set up one Deduction Code for that particular state’s rules. You can indicate the specifics of a garnishment at the employee level. If there is not enough pay left in the employee’s wages (after any exempt amounts have been taken into consideration) to pay all the orders, the employer must decide, based on the legal documents and state laws, which withholding order should be deducted first -- priorities. These priorities determine deduction amounts when several garnishment orders have been received against an employee’s wages.

GENERAL TAB

Setting Up a Garnishment:


» Select the Garnishment check box to create the deduction as a "garnishment.” Once the Garnishments check box is selected, the Garnishments Settings tab is enabled. You can’t clear the Garnishment check box if the deduction has already been assigned to an employee.

» The Garnishment Type field is enabled if you select the Garnishment check box. » If the Garnishment check box is selected, the Garnishment Type becomes a required field. The

Garnishment Type list is hard coded into WinTeam. » Use the Deduction Method to calculate amounts for this Other Deduction Code. Six methods

are available, and based on the one selected, the system displays different fields and options. » Use the Update to AP Invoices check box to enable the ability to enter a Vendor Number (or

have the Vendor Number default) to the Other Deductions screen in the Employee Master File. » Defaults for the Employee Setup Screen – The selections made here default to the Other

Deductions screen in the Employee Master File.

GARNISHMENT SETTINGS TAB – LIMIT 1

The information entered here is used to default information in the Employee Master File, Other Compensations and Deductions (Deductions tab). You can select one limit, multiple limits or no limits. When multiple limits are selected, the minimum result (minimum calculated deduction) will rule. Select Limit 1 to set the garnishment limit on a % of Disposable Earnings or Adjusted Disposable Earnings. This limit is typically used for support orders and creditor garnishments where consumer credit


protection limits apply. If Limit 1 is selected, the percent field and the basis (% of Disposable Earnings or Adjusted Disposable Earnings) fields are enabled. These fields are not required to be set up with the Other Deduction Code, but are required when using this Limit in the Employee Master File. When the Limit 1 check box is selected, the Percent field is blank and the basis defaults to Disposable Earnings. You can enter up to four decimal places for the percentage and the percentage must be greater than zero and less than 100%. In this example, no more than 50% of the employee’s disposable earnings are subject to garnishment.


Select Limit 2 to enter a dollar amount to remain after Disposable Earnings or Adjusted Disposable Earnings minus the garnishment amount. In this example, we want the employee to retain at least $200.00 of Disposable Earnings per pay period.



Select Limit 3 to enter a % of Gross, Disposable or Adjusted Disposable Earnings minus an annual standard exemption. The annual standard exemption amount is the sum of the standard deduction and the total amount of the deductions for exemptions. The amount of income that is exempt from the garnishment/levy is figured by adding the standard deduction an employee can claim on his/her income tax return and the amount the employee can claim on it for exemptions. In this example, the garnishment is 15.00% of Gross Income minus the annual standard exemption. This employee’s filing status is married filing separately with one personal exemption (this figure is based on 2009 tax tables).



Select Limit 4 to enter Disposable or Adjusted Disposable Earnings minus exempt annual net earnings of a specified dollar amount. If Limit 4 is used, you can also select to Calculate Exempt Net Earnings based on a specified number of weekly hours at a minimum wage amount. In this example, Disposable Earnings minus exempt net earnings is the garnishment limit. We have chosen to have the system calculate exempt net earnings using 40 weekly hours at a minimum wage of $9.00: 40 weekly hours X 9.00 X 52 (weeks) = annual exempt net earnings of $ 18,720.00.


GARNISHMENT SETTINGS TAB – ADMIN FEES

Garnishment Administrative Fees The Garnishment Administrative Fees grid is used to link an Administrative Fee with a Garnishment. Select from the list of garnishment administrative fees. You can double-click to open the Garnishment Admin Fee Deduction Code. When adding garnishments to an employee record, the system will prompt you to include the Admin Fee if it is linked to a Garnishment Deduction Code.


GARNISHMENT – ADMIN FEE

How to set up a Garnishment Administrative Fee

» Select the Is Admin Fee for Garnishment check box to associate an administrative fee for a

specific garnishment.

» If the Is Admin Fee for Garnishment check box is selected, the Deduction Method must be

either a $ Amount or a Percent of Selected Garnishments.

Deduction Method » $ Amount – If you select this option, the system calculates the Other Deduction amount based

on a fixed dollar amount entered in the $ Amount field.

» Percent of Selected Garnishment – This option is available if the Admin Fee check box is

selected. Rather than using a specified amount for Admin Fees associated with a Garnishment,

the system will use a percent of the Garnishment.

▪ Example: If the Garnishment was $100, and we want to use 2% as the Admin

Fee, the Admin Fee would be $2.00.

» Update to AP Invoices - Select this check box to enable the ability to enter a Vendor Number (or

have the Vendor Number default) to the Other Deductions screen in the Employee Master File.


» Defaults for the Employee Setup Screen - The selections made here default to the Other

Deductions screen in the Employee Master File.

ASSIGN A COMPENSATION/DEDUCTION CODE TO AN EMPLOYEE

From the Payroll module, select Employee Master File. Locate the correct Employee by entering the Employee number in the Lookup field or using the search feature to find the employee Number. Once the screen displays for that Employee, select Other Comps/Deducts in the upper right corner.

From the screen, select the Deduction or Compensations Tab. Select the correct type of code to be paid. Press the Tab key to have the system populate the Basis, Type and GL # fields. Note that any of these fields can be changed for any Code.

Most compensations will be set to a Basis of One Time, meaning the compensation will be paid with the next paycheck only. Once the amount is included on a paycheck and posted to the General Ledger, it will no longer appear on this screen and will not be paid again unless someone enters it again. Remember that recurring compensations will be paid repeatedly until someone removes them or the system reaches a limit set for that code.


When entering Deductions using the Update to AP Invoice feature, you will be required to enter the Vendor number and AP Memo line. Most deductions will be set to a Basis of Recurring – No Limit, meaning the deduction will be taken with every paycheck until it is manually removed. One Time deductions are taken with the next paycheck only. Once the amount is included on a paycheck and posted to the General Ledger, it will no longer appear on this screen and will not be deducted again unless someone enters it. All compensations, deductions or garnishments processed for an employee will be stored under the History Tab.

To enter a garnishment, select the Garnishments button from the Deductions tab.


Select the Garnishment Deduction Code you want attached to this employee record. The information defaults from the Deduction Code record. Enter all required information. Once the required information is complete, the system checks to see if there is an Admin Fee associated with this Garnishment. If there is, a message displays:

Garnishment Priorities and Allocation

If an employee is already subject to one or more withholding orders, decisions must be made to establish the priority of the order and how the available disposable earnings are allocated.


You, as the employer, must prioritize, based on the legal documents and state laws, which withholding order should be deducted first. These priorities determine deduction amounts when several garnishment orders have been received against an employee’s wages.

HOW TO PRIORITIZE YOUR GARNISHMENT DEDUCTIONS

In general, withholding orders must be satisfied according to the following list. Note: We recommend you contact your company's legal counsel to review the order and answer any questions regarding validity, disposable earnings determinations, complying with out-of-state orders, priorities and allocation, etc.

» Child support

» Bankruptcy order

» Federal Administrative Garnishment *

» Federal Tax Levy *

» Student Loan

» State Tax Levy

» Local Tax Levy

» Creditor Garnishment

» Employer deductions

* All deductions in place have priority over the order when the federal tax levy or federal administrative garnishment is received.

GARNISHMENT PRIORITIES


Priority – The Priority field is used to enter a number (whole numbers 1 - 255) to determine the order that garnishments are paid.

» If you do not assign any priorities, it will calculate based on the order in which the

garnishment was entered on the employee’s record.

» If the Priority is blank, these garnishments will be handled last.

» If the Priority number is not unique (meaning two or more garnishments are assigned the

same Priority), then you will need to assign an Allocation.

» Admin Fees will display directly below the parent garnishment record.

» Admin Fees display with a green background.

Allocation can either be prorated or distributed evenly between garnishments that have the same priority number. This is generally based on the court order or state laws. Prorated Distribution – Make a proportional distribution across two or more garnishments.

Example: Garnishment 1 is $400 and Garnishment 2 is $600. Prorated Garnishment 1 = 400 / (400+600) = 40% Prorated Garnishment 2 = 600 / (400+600) = 60% If only $500 is available to garnish, then 40% (or $200) goes to Garnishment 1 and 60% (or $300) goes to Garnishment 2.

Even Distribution – Distributes available funds to two or more garnishments in the same amount. Example: There is $500 available to garnish and there are 2 garnishments to pay Even Garnishment 1 = 500 / 2 = $250 Even Garnishment 2 = 500 / 2 = $250 Each garnishment receives the same amount of funding.

Hours Types and Hours Categories

HOURS TYPES

Hours Types are used to pay anyone receiving wages in WinTeam. An Hours Type tells the system how to handle overtime, which Workers Compensation Code to allocate the labor under, where to allocate the labor in the General Ledger, and how the system should treat the labor (e.g., vacation, sick). Hours Types are used in Personnel Scheduling, Timekeeping, Rates by Job, Human Resources benefits and Budgets.


What does an Hours Type Tell WinTeam?

» The different types of labor and to whom that type of labor is paid.


» How to calculate the pay.

o Example: o 49.5 Total Hours

o 8.0 Sick Hours

o 1.5 Overtime Hours

» The Workers’ Compensation Code this labor will be grouped under.

The General Ledger Number this labor will be posted to.

Where Hours Types Are Used

WinTeam and TeamTime use Hours Types in many areas, including: » Selecting an Hours Type in the Hours Categories window of the Job Costing module.

» Selecting an Hours Description in the Rates by Job screen.

» Selecting an Hours Description in the Timekeeping By Job, Timekeeping By Employee and Daily

Timekeeping windows in the Payroll module.

» Selecting an Hours Description in eHub Web and Mobile.

» Selecting an Hours Description in the Payroll Module Permanent Timecards window.

» Selecting an Hours Type in the Job Costing Module Absenteeism Notification Schedule window

under TeamTime Job Attributes.

» Selecting a Regular Hours Description and a Holiday Hours Description in the Personnel

Scheduling Module Post Setup window.

» Selecting an Hours Description in the Personnel Scheduling Module Detail Cell Information

window.

» Selecting an Hours Type when budgeting labor in the Job Costing Module Job Master File

(Budgets).

» Selecting an Hours Type when adding Budget Descriptions to Work Scheduling.

» Reports within the Payroll and Personnel Scheduling modules include options to sort and display

by Hours Types.


HOURS CATEGORIES

Hours Categories are used to group related Hours Types into a single Category. Each Job in the Job Master File has an Hours Category tied to it. During Timekeeping entry or in Personnel Scheduling entry, the only Hours Types available for a Job are those in the Hours Category of that Job.

Use the Hours Categories screen to group related Hours Types into a single category.

» Categories may use different combinations of the same Hours Types.

» Each Job in the Job Master File screen has an Hours Category tied to it.

» During Timekeeping entry, only the Hours Types you entered for the Hours Category of the Job

are available for selection.

» Several Hours Types are grouped together into an Hours Categories record, which is then used

by multiple Jobs.

» Normally, you will have a limited number of Hours Categories set up, since the same Hours

Category can be used by multiple Jobs.

Hours Types and Hours Categories Example


Below is an example of how you could set up your Hours Types and Hours Categories.


Payroll Taxes

CHART OF ACCOUNTS

Identify the General Ledger Numbers needed to post all payroll taxes including Federal withholding, FICA, Medicare, state withholding, disability and local taxes.

TAXES

Payroll taxes for Federal withholding, FICA, Medicare, FUTA, SUTA, State withholding and all local county and city taxes are maintained in Payroll, Taxes. TEAM updates the formulas used to calculate the taxes for all jurisdictions except city, county, some disability and school districts on a yearly basis or as required by statutory changes. Users apply Tax Updates when notified of a change. SUTA rates for your company are entered by you when changes are received. Local city and county taxes are also maintained by the user.


Defaults

In Defaults, you specify Timekeeping and Overtime options, Employee Master File settings, GL Posting options and other Payroll-related information.

Dates Used in Payroll

Several dates are important in Payroll. Dates used in the module are defined below.

» Check date is the date on the paycheck.

» Posting Date is the date the entries will be posted to the General Ledger. Typically, the Labor

Distribution Journal, Other Compensations Journal and Payroll Journal for Employer Tax Portion

are posted to the Pay Period End Date, which the Other Deductions and Payroll Journal for Net

Pay and withholdings post to the Check Date. The posting dates are determined by standard

accrual accounting guidelines.

» Date refers to the period you wish to view. Often this is a month or a pay period.


» For Other Compensations and Deductions, Start Date refers to the date a compensation or

deduction is entered to begin.

» Effective Date is the date a pay change, status or other entry is set to begin or change.

» Transaction Date is the date a transaction occurred.

Five Ways Timekeeping is Entered

» Manually – Hours worked can be collected via timesheets and entered manually into the

Timekeeping screen.

» Permanent Time Cards (PTC) – Hours are entered in Permanent Time Cards and imported

each pay period. Manually make necessary corrections to the Timekeeping records.

» Personnel Scheduling – Hours are tracked in the Personnel Scheduling module and

uploaded to Timekeeping when the Personnel Scheduling Wizard is run. Hours should be

verified using the Scheduling Activity report before the Personnel Scheduling Wizard is run.

Manually make necessary corrections to the Timekeeping records.

» TeamTime and TeamTime Portal – Clock in and out times are collected using TeamTime

(telephone timekeeping) or TeamTime Portal (biometric authentication) and uploaded into

Timekeeping. Verify that all uploads have been completed prior to beginning payroll

processing.

» eHub and eHub Mobile – Hours are verified and can be modified or added in eHub.

Timekeeping records can be collected via eHub Mobile. Verify that all timekeeping changes

have been entered and approved.

TIMEKEEPING SCREENS

» Two Options to View Timekeeping o By job

o By employee

» Items needed for a timekeeping record o Employee number

o Job number

o Hours type

o Number of hours


Timekeeping Screen Options Use the Timekeeping screen to view, add and edit Timekeeping records by job or employee. You can also view exceptions, a recap by employee, recap by hours description and other info.

PERMANENT TIMECARDS Use the Permanent Timecards button to import permanent time cards into Timekeeping. You can import PTCs for all Jobs, Jobs you have specifically filter for, or for a single selected Job. When importing PTCs it is important not to import the same Job multiple times. This will cause a duplication of hours.

OTHER INFO

The Other Info tab displays clock in and out time, pay and work ticket information for the selected cell, or you can change in and out times, lunch hours and the pay rate. The change history will also display in a separate grid. By double clicking the on the Hours cell, a user can create an Absence Tracker entry.


The History section will display changes to timekeeping records from the following sources: » Permanent Timecards » Manual entry » Split shifts » Personnel Scheduling » TeamTime » Cash outs » PAY Update - Void Checks » eHub » TK Import » Daylight Saving Update » Payroll - Create Batch » Payroll - Recalculate Batch » Payroll - Delete Batch » Payroll - Create Void Batch » Paycheck Review and Edit

RECAP BY EMPLOYEE

The Recap By Employee tab displays a summary of hours for the selected employee or employees. The Hours Recap Grid will display the Timekeeping hours for the specified date range, including those labeled Total Hours, hours Subject to Calc. OT, and the hours Not Subject to Calc OT. The Overtime Recap Grid will display any hours that have been calculated as overtime, including total overtime hours.

RECAP BY HOURS DESCRIPTION


The Recap By Hours Description tab is used to view a summary of hours for the selected job or jobs during the specified date range. The total number of hours worked is compared to the budgeted hours and the variance is displayed. Whether the hours are included in the Budget Comparison or Excluded Hours grid depends on how the Hours types are entered in SYS: Hours Types Defaults.

EXCEPTIONS TAB

Use Filters in Timekeeping to review and validate times. Check for No Hours, Hours Limit, Empty In/Out Times, Inactive with Hours, Flagged OT, Negative Hours and Overlapping Time

Payroll Calculations Qualified Gross Compensation Calculations

» Wages + Other Compensations

Disposable Earnings Calculation

» Qualified Gross - Mandatory Taxes - Other Deductions

Adjusted Disposable Earnings Calculation

» Qualified Gross - Mandatory Taxes - Other Deductions for Adjusted Disposable Earnings.

This method is similar to the Disposable Earnings calculation, except that you can choose

which of the other deductions the system includes (or does not include) in calculating

adjusted Disposable Earnings.

RATES BY JOB

http://solutionsonline.teamsoftware.com/Content/WT_JOB/JOB_Tasks/JOB_Learning_Hours_Types.htm

http://solutionsonline.teamsoftware.com/Content/WT_SYS_Setup/SYS_Setup_Concepts/DEF_HoursTypes.htm


Use the Rates By Job to assign pay and bill rates for Job by Employee, Employee Title, Hours Description, Job Post or Shifts. The Rates By Job screen can be used to differentiate pay and bill rates by employees for a given task when there are job-level requirements. It can also be used when individual employee pay rates vary by job and other employee factors such as employee's length of service (employee title) where the pay rate applies to a group of employees, rather than a specific individual.

Ways to Use Rates By Job

» The entire job and any Hours type, without post, shift or hours description

» By employee title, with and without special bill rates

» By Hours type, with and without special bill rates

» By post, with and without special bill rates

» By post, Hours type; with and without special bill rates

» By shift, with and without special bill rates

» By shift, Hours type; with and without special bill rates

» By post, shift, Hours type; with and without special bill rates


How the system determines an employee’s pay rate:


» Employee Master File – Accept Alternate Pay Rates selected. » Hours Category Min/Max – If the employee is setup to accept alternate pay rates, then the

system will use this rate that is setup in the Hours Category details. » Rates by Job – The Rates by Job overrides Employee Master File and Hours Category Min/Max

pay rate if the employee is set up to accept alternate pay rates. » Use this Rate – Overrides ALL other pay rates.

Review Payroll Before Creating the Wizard

» Timekeeping Report – Review hours » Other Compensations or Deductions Report – Review what has been set up in the Employee

Master File » Pay Info History Report – Pay increases » Hours By Employee – Daily details with pay rate information

Create and Edit a Payroll Batch


Note: Payroll security levels will prevent a user from processing payroll for an Employee with a higher security level. There are five options available using the wizard.

» Create a new Batch - Use the Create a New Batch option to process automatic checks, single

entry checks, handwritten checks, void checks and make adjustments.

» Edit an Existing Batch - Use the Edit an Existing Batch option to edit existing batches that have

not been posted to the GL.

» Delete an Existing Batch - Use the Delete an Existing Batch option to delete an unposted batch.

To unpost a posted payroll batch, use the Journal Update Log.

» Show All Batches (Not an Edit) - Use the Show All Batches option to display detailed batch

information for all processed batches. Once you select a batch, you may drill down to the

Supplemental Information screen for the batch by clicking the Detail button. When a payroll

batch has been updated to the General Ledger, it will be annotated in the Payroll Check Batch's

Status History area. A user can also unlock a batch that has been locked during processing.

» Labor Accrual - Use the Labor Accrual option to expense labor into the fiscal period in which

hours were worked.

Once you’ve chosen a function, you must also choose a Batch type.


» Automatic Checks – If all timekeeping, other compensations and other deductions have been

entered, you should be ready to process checks.

» Single Entry Checks – Begin an empty batch and create checks individually. The system will

calculate the necessary taxes for each check.

» Handwritten Checks – Enter information for handwritten checks that have already been issued.

» Void Checks – Void a payroll check or checks. The Void Checks option is used to void a paycheck

that has been issued in error, is incorrect, lost or destroyed and isn’t available to be cashed.

• You may void checks that meet the following conditions:

▪ Check has been printed and updated to the General Ledger.

▪ Check must still be outstanding (hasn’t cleared the bank).

▪ Check must not have been previously voided.

▪ Check hasn’t been replaced by another check.

» Adjustments – Make one-time adjustments to amounts that will appear on the employee’s W-

2s and tax reports or adjust the Other Compensations and Other Deductions Detail.

PAYCHECK FREQUENCY


The Paycheck Frequencies are set up in Payroll Defaults and are assigned to employees. The batch is limited to only the employee belonging to the selected paycheck frequency. Check Date – Enter the check date to print on the paychecks. Pay Periods Dates – Enter the Pay Period dates to indicate Timekeeping records to process. The date range must be consistent with the paycheck frequency. Timekeeping records already processed with another batch are not processed again. The system fills in the pay period dates of the last batch of checks issued for the paycheck frequency selected.

EMPLOYEE FILTERS


Employee Filters allow you to choose all, some or none of the employee types, distributions, companies and locations in this batch. You can also choose to include paper and/or direct deposit checks or to include subcontractors and/or employees. Note: The Outsource Payroll option is available for companies who don’t process payroll with WinTeam. This option may only be used if an interface exists between WinTeam and the other company's software.

COMPENSATION/DEDUCTION FILTERS

The Compensation and Deduction Filters allow you to choose all, some or none of the compensation or deduction types in this batch. Select All to include all compensation or deduction types setup in the Employee Master File. Use the Pick From List for the selection of codes to include. Select None to exclude all compensations or deductions in the batch. Click the Next button. If you want to print the batch criteria, select the Print Batch Criteria check box. As soon as the batch is done processing, the Batch Criteria will display in Preview mode. If the Print Batch Criteria button isn’t selected, the batch criteria page will not display after the batch is processed.


CREATING AUTOMATIC BATCH - NOTES

Notes – Use the Notes page to enter any notes to keep with the batch. These notes don’t print and are not visible except when editing a batch. Select the Finish button. Suppress 401k calculation check box – Selecting this check box will prevent a 401(k) deduction from being calculated on this batch. Suppress Additional W/H calculation – Selecting this check box will prevent any additional Federal or State withholding if defined on the Employee Master File. Print Batch Criteria – If you select the “Print Batch Criteria” check box, a Batch Criteria report will be printed. During Check Processing, you may receive a message stating there were issues encountered while calculating. The system will generate a report that you can review and print. At this point, you can continue to edit the problem areas, then recalculate or cancel the processing, resolve the problems and then create a new batch. Click OK to see the checks in the Review and Edit Paychecks screen.


PAYROLL REVIEW AND EDIT PAY

Once the processing is complete, the Review and Edit Paychecks screen displays. You may now make changes to the checks, run filters to review only certain checks or add checks to this batch. You may make changes to any checks in this batch. Once you make changes to any check, the system will automatically flag that check record as “Needs to be Recalculated.” The system will not allow you to print a check batch if there is a check needing to be recalculated or if there is a negative check. You can add or delete checks in this batch. Use the Find feature to locate checks by employee number. If you’re currently in a batch and that employee has a check in the batch, the system automatically displays that specific paycheck for the employee. If you’re not in a batch, the system displays the Find Paychecks screen displaying all checks for the employee, and then you may choose the check you want to review.


FILTER FOR PAYCHECK ACCURACY

When reviewing your paychecks, you’ll first want to run the available filters for:

» Negative Checks – Deductions that are higher than the net pay amount can cause a check to be

negative. The system will not allow a batch to be printed if there is a negative check in that

batch. These checks MUST be corrected. This is often caused when deductions exceed the

employee’s wages or compensations.

» Duplicate Checks – The filter will check for employees that have multiple checks in the batch.

» Rate Limit – The filter will check that hourly and salary rate limits have not been exceeded.

» OT Hours Limit – This filter will find checks that include overtime hours that exceed the user-

defined limit.

» Terminated Employees – This filter will look for employees who have been terminated, yet have

a check in the batch.

» Max Check Amount – Use this filter to ensure that no check in the batch has exceeded the user-

defined limit.

» Subcontractor Checks – This filter will look for checks in the batch that are for employees

marked as subcontractors.

» Minimum Wage – Use the Minimum Wage filter to find checks within a batch where the

employee wasn’t paid at least the minimum wage. The Minimum Wage field defaults to $7.25,

but this amount can be overwritten. Once the filter has been applied, a new status field will

display “Min Wage Deficit” in bold, green text next to the Wages area on the paycheck record.


PAYROLL REVIEW AND EDIT PAY - TABS

Other Info Tab

Check Type – Displays the type of check (e.g., computer generated and printed, manually entered and printer, or manually entered and computer printed). Direct Deposit – Displays whether this check was direct deposit or not. If this check box is selected, the check was distributed via direct deposit. Date Escheated – Use this field to enter a date that this payment record was escheated. Notes – Use this field to enter any notes pertaining to this paycheck record.

Wages Tab

View an employee’s wages by Pay Week Ending date. You can’t edit this information. If you need to make a change, you must drill down on the Total Wages record at the top of the screen.


Compensations Tab

Review an employee’s other compensations. You can select to add a new compensation to the grid. You can also delete or edit a compensation from this tab.


Deductions Tab

Review the employee’s other deductions. You can select to add a new deduction to the grid. You can also delete or edit a deduction from this tab.


Garnishment

On the Deduction tab in order to see the garnishment that were taken as part of this check, change the view using the radio button from deductions to garnishment. Under this tab the system will list any garnishment and fee associated with these garnishments. In order to review how the system determines the amount for the garnishment, click on Settings button.


Taxes Tab

If you’re reviewing subcontractor checks, you’ll see the Taxes tab, but no information displays, since there are no tax calculations for subcontractors. During check processing, the Employer Only and Shared Taxes totals on handwritten checks are read only. Only the Employee Withhold Only tax code totals are editable.

SETTINGS

On the Deduction tab, click on Garnishments, then click the Settings button to display how the system figured the amount for the garnishment and garnishment fees.


Payroll Review and Edit Pay – Drill Downs

Wages – Displays the total amount of wages for the selected record. You may click the Detail button to display the source of the wages. It drills down to Timekeeping information (hourly employee) or the Employee Master File (salaried employee). It can still be edited until the checks are printed. Other Compensations – Displays the total amount of other compensations for the selected record. You may click the Detail button to display the details of the other compensations. Other Deductions – Displays the total amount of other deductions for the selected record. You may click the Detail button to display the details of the other deductions. Taxes – Displays the total amount of taxes for the selected record. You may click the Detail button to display the source of the calculated taxes. Tax information is stored in the Employee Master File>Tax Info tab. 401K – Displays the total amount of 401(k) deductions for the selected record. You may click the Detail button to display the source of the calculated taxes. 401(k) information is stored in the Employee Master File>Other Info tab. Net Pay – Displays the net pay amount for the selected record.


Update to GL

The Payroll Process Update General Ledger screen is used for two purposes:

» To preview and print the journals for a batch prior to printing checks.

» Once checks are printed, to update the printed batch of checks to the General Ledger.

We recommend as part of your payroll procedure to preview all Payroll Journals. Note that once a check has been printed it CAN’T be edited. Check each journal for accuracy. If these reports aren’t correct, find the errors and make the corrections in the Check Processing Wizard>Edit an Existing Batch>Review and Edit Paychecks screen. If all of the reports are correct, proceed with printing the checks. The Preview button generates the Payroll Tax, Labor Distribution, Other Compensations, Other Deductions and Tax Allocation Journals, if applicable.


PREVIEW PAYROLL JOURNALS

Payroll Journals – Payroll Taxes

The Payroll Tax Journal updates the GL Payroll Tax accounts (Federal, FICA, Medicare, State Taxes, etc.) and net payroll is credited. In order to balance (debits and credits have to equal), the system debits the total amount to the GL Payroll Clearing account. This Payroll Tax Journal shows all payroll taxes related to this payroll. When information is updated to the General Ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the check date of the batch. ER Tax Portion – You may elect to use either the check date or the pay period end date to update the employer’s portion of the payroll taxes. This will default to the option you have set up in Payroll Defaults. If you change this date the tax allocation date also changes to match this field.


Payroll Journals – Labor Distributions

The Labor Distribution Journal Updates the GL Labor accounts (Wages, Salary, Overtime, Vacation, Holiday, Sick, Training, etc.) that are processed with this payroll and creates a debit. In order to balance (debits and credits have to equal), the system credits the total amount to the GL Payroll Clearing account. The Labor Distribution Journal shows all labor associated down to the job level related to this payroll. When the information is updated to the General Ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the pay period ending date of the batch.


Payroll Journals – Other Compensations

The Other Compensation Journal updates the Other Compensation accounts (Back Pay, Bonuses, Commissions, Car Allowance, Mileage Reimbursements, Severance, Uniform Pay, etc.) that are processed with this payroll and creates a debit. In order to balance (debits and credits have to equal), the system credits the total amount to the GL Payroll Clearing account. The Other Compensations Journal shows all other pay related to this payroll. When this information is updated to the General Ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the pay period ending date of the batch.


Payroll Journals – Other Deductions

The Other Deduction Journal updates the Other Deductions accounts (Garnishments, Child Support, Insurance, Savings, Union Dues, etc.) that are processed with this payroll and creates a debit. In order to balance (debits and credits have to equal), the system debits the total amount to the GL Payroll Clearing account. This Other Deductions Journal shows all other deductions related to this payroll. When the system updates this information to the General Ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the check date of the batch.


Payroll Journals – Tax Allocation

The Tax Allocation Journal displays for all payroll batch types with the exception of Labor Accrual batches. Only those labor accrual batches that were created using the Based on Payroll Batches method and where a percentage of taxes were entered for the accrual will show this journal when updating to the General Ledger. This journal allocates and updates the employer's portion of payroll taxes and insurance down to the job level.

For Group A accounts (FICA, Medicare, FUTA, SUTA and SDI), the expense accounts and job number that were posted for the payroll taxes when the Payroll Journal posted will be reversed with this Tax Allocation Journal and this expense allocated down to the job level.

The Tax Allocation program includes any city or county tax set up with a calculation method that included an employer portion for expensing. Any local tax that has an employer portion will update with the other payroll taxes when the Tax Allocation Journal is posted. The General Ledger number under the SDI (State Disability Insurance) column will be used to determine where the employer's portion of local taxes will post.


For Group B accounts (W/C, GL, Umbrella, Other 1 and Other 2), the employer’s expense is calculated and posted with the Tax Allocation Journal based on the percentages and GL numbers set up in the job’s Tax and Insurance screen. The date defaults to the date used in the ER Tax Portion field.

Payroll Journals – Recap


Print Checks

Print checks from the Payroll Module by selecting the Print Checks Icon. Once a check has been printed it CAN’T be edited. Use this option to print checks generated through the Check Processing Wizard. You have the option to print any batch that hasn’t been updated to the General Ledger or to reprint a batch that has been previously printed but not updated to the General Ledger. You may want to preview the batch journal (Payroll Processing Update General Ledger) prior to printing checks.


PAYROLL CHECKS

Layout Type

Select the layout type for your paychecks. You can choose from the Standard, Framed Sections and Legal Size Self Sealer layouts. Note that Canadian clients will not see the Type of Form or Position of Check options since they have specific check format requirements and can only use the Standard Layout Type. Standard – This is the normal paycheck layout. Framed Sections – This is a paycheck layout that will section off compensations, deductions, taxes and benefits. Legal Size Self Sealer – Select this layout to print check forms using a self-sealed format. The stub will print on the top of the check form.

Print Timekeeping Details – The Print Timekeeping Details check box is available if the Layout type is Standard or Legal Size Self Sealer. Type of Form – You can select from Preprinted Checks or Blank Check Stock. Preprinted checks are available when you have selected Standard as the Layout type. Blank Check Stock is available when the Layout type is Standard. You can then select to have the check print on the bottom of the stub or top of the stub.


NACHA BANK TRANSMISSION

Use the NACHA Bank Transmission screen to create a transmission file to allow direct deposit of paychecks. This screen is also used to create a file for account reconciliation plan. Note that even though the paychecks are being deposited directly into a bank account, checks must still be printed prior to creating the NACHA Bank Transmission. When direct deposit checks are printed, the system will print "NON-NEGOTIABLE” in the signature area of the paycheck. You can give these checks to employees so that they have their paycheck stub information.


Check Types

Use the Check Types option group to select one or more of the Payroll, Check Processing Wizard batch types from which paychecks were created.

» Automatic – Select Automatic to include paychecks created in Automatic Check batches that

were not direct deposit checks.

» Single Entry – Select Single Entry to include paychecks created in Single Entry Check batches that

were not direct deposit checks.

» Hand Written – Select this to include checks created in Handwritten Check batches.

» Void – Select this to include checks voided in Void Check batches. The voided checks will show

up with negative numbers and amounts on the check register. If you don’t mark to include

voided checks, the original check will still print on the report with its original amount and will

show as void with a void check date next to the payee name.

Include $0 Checks – Select this check box if you want to include checks with a $0.00 amount in the

NACHA transmission. Note: Some banks cannot process files that have a $0.00 amount in the ACH file.

Include Only Direct Deposit Checks – Select the Include Only Direct Deposit Checks check box to show only checks that were created as direct deposit checks within the Check Processing Wizard on the report. To verify whether checks were processed using direct deposit, you can go to Review Checks. Checks that were processed as direct deposit have the Direct Deposit option selected. If you clear the Include Only Direct Deposit Checks option, the system will ignore the status of the Direct Deposit option on the Review and Edit Paychecks screen. Instead, the system will look at the Employee Master File>Other Information screen to determine which employees are setup for direct deposit. Employees with the Begin Direct Deposit option selected will have paychecks included in the Direct Deposit transmission. Pre-Note – Select this check box if the transmission is a pre-note. Employees who wish to have their paychecks directly deposited may need to go through a pre-note procedure, if your bank requires it. Use Federal ID in Header – Select the Use Federal ID in Header check box to include the Federal ID in the header record of the transmission file. You won’t see the Federal ID on the printed report. Output File Type selected of ARP – Banks occasionally make requests to download a file that contains payroll check information that they can use in an Account Reconciliation Program (ARP). By selecting the ARP option, the system will create a list of payroll checks that should clear from your bank. The created file includes paycheck numbers and corresponding check amounts. However, the file format may vary from bank to bank. If your bank requests an ARP file, you’ll need to obtain the file format from your bank and send this information to TEAM Software. We’ll verify that the existing file format in WinTeam is compatible with the file format used by your bank. Specific bank formats are already available in WinTeam. The bank format is added to the Cash Account Setup screen located in the System Module.


Figuring Federal/FICA Tax Deposit

Use the 941 report to assist in calculating the amount to remit for your tax liability and track payments made. The report can include tax liability, payments, or both (using Recap as the Output type). Subcontractor checks are excluded from this report. There are three ways to run this report:

» Tax Liability Report

» Payments Report

» Recap Report


PAYROLL 941 REPORT – TAX LIABILITY REPORT

Run the Tax Liability report to determine the amount of your Federal, EIC, FICA and Medicare tax liability. It should be run following each payroll.

PAYROLL 941 REPORT – PAYMENTS REPORT

Run the Payment report to review the amount of taxes you have already paid to a specific vendor (IRS).


PAYROLL 941 REPORT – RECAP REPORT

In the Recap report, if Line 10 is more than Line 11, you have a balance due. If Line 11 is more than Line 10, the overpayment is the difference of those two amounts.


EMPLOYEE W-2 REPORT

Use the Employee W-2 report to view employee W-2 information, print W-2 forms and prepare W-2 info. The various taxes display along with the gross earnings, taxable income and taxes withheld.

Output Type

» Report – Report prints a standard report.

» Electronic File – This creates an electronic file for submission to the federal, state or local taxing

authority.

» W-2 Laser Forms – This output type prints the report to W-2 forms using a laser printer.


Report Type

» Total By Employee – Select this to print each employee separately.

» Recap Totals Only – Select this to print the totals for each tax.

» Details by Check – Select this to print the tax information for each employee and each check

issued for the selected check date range. Employee totals also display.

Unemployment Compensation Tax Report

The Unemployment Compensation Tax report is used to gather unemployment compensation detail for each state and the federal government. This report displays gross earnings, as well as taxable earnings for each employee, although there are a few state UC formats that don’t want the taxable earnings shown on the report. You may print this report or prepare it in an electronic format. This report should be run at the end of each quarter.


WORKERS’ COMPENSATION REPORT

Use the Workers’ Compensation report to list all wages, compensations and deductions by state and workers’ compensation codes. Normally you’ll run this on a quarterly basis.

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