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USER GUIDE

Payroll

Church Accounting

2

ConnectNow Church Accounting: Payroll User Guide

Pub 117, June 2017

3767 Ranchero Drive

Suite 100

Ann Arbor, MI 48108-2830

Web: www.parishsoft.com

Email: [email protected]

[email protected]

Phone: (734) 205-1000 main

(866) 930-4774 support

Fax: (734) 205-1011

© 2011-2017 ParishSOFT LLC, all rights reserved.

ParishSOFT grants licensed users the right to unlimited duplication of this publication

for internal use.

PUB117—2017—June


CONTENTS

Introduction ......................................................................................................... 7 Introduction to ConnectNow Payroll ............................................................................................ 8

Reporting ................................................................................................................................ 8 Hosting .................................................................................................................................... 8 Data Conversions ................................................................................................................... 8 Functionality and Privileges .................................................................................................... 8 System Requirements ............................................................................................................. 9 Automatic Logoff of Inactive User Sessions .......................................................................... 9 User Checklist ......................................................................................................................... 9 About This Manual .................................................................................................................. 9 Training ................................................................................................................................... 9 Support.................................................................................................................................. 10

Open Your Secure Payroll Website .......................................................................................... 11 Log In .................................................................................................................................... 11 Log Out ................................................................................................................................. 11 Change Your Password ........................................................................................................ 12

Navigation ................................................................................................................................. 13

Basic Setup ....................................................................................................... 15 Complete Initial Payroll Setup ................................................................................................... 16 Enter Employer Information ...................................................................................................... 17

Field Descriptions for the Employer Information Screen ...................................................... 18 General Information .......................................................................................................... 18 Tax IDs ............................................................................................................................. 18 ACH Info ........................................................................................................................... 18 Contact Info ...................................................................................................................... 18

Set Up Pay Groups ................................................................................................................... 19 Recommendations for Pay Groups .................................................................................. 19

Field Descriptions for the Pay Group Information Screen .................................................... 20 Manage Pay Groups ......................................................................................................... 20 Edit a Pay Group .............................................................................................................. 20 Delete a Pay Group .......................................................................................................... 20

Enter Pay Items ......................................................................................................................... 21 Field Descriptions for the Pay Item Information Screen ....................................................... 21 Manage Pay Items ................................................................................................................ 22

Edit a Pay Item ................................................................................................................. 22 Delete a Pay Item ............................................................................................................. 22

Manage Deductions and Benefits ............................................................................................. 23 Field Descriptions for the Deduction/Benefit Screen ............................................................ 24 Manage Deductions and Benefits ......................................................................................... 25

Edit a Deduction or Benefit ............................................................................................... 25 Delete a Deduction or Benefit ........................................................................................... 25

Enter Account Distributions ....................................................................................................... 26 Copy Account Distributions ................................................................................................... 27 Edit Account Distributions ..................................................................................................... 28

Set Up Payroll Check Layout .................................................................................................... 29 Pop-Up Blocker ..................................................................................................................... 31

Employee Entry ................................................................................................. 33 Enter Employee Information ...................................................................................................... 34

4 Employee General Tab ......................................................................................................... 34 Employment/Custom Tab ..................................................................................................... 35 Tax Data Tab ........................................................................................................................ 36 Pay Data Tab ........................................................................................................................ 39

Multi-Account Distribution for Pay Data ............................................................................ 41 Delete a Pay Data Line Item ............................................................................................. 41 Add More Pay Data Lines to Form ................................................................................... 41 Delete a Deduction/Benefit Line Item ............................................................................... 42 Add a Deduction/Benefit Line Item ................................................................................... 42 Add a Health Care Benefit ................................................................................................ 43

Accums Tab .......................................................................................................................... 45 Personal Tab ......................................................................................................................... 46

If Employee earns Personal Time each Pay Period ......................................................... 46 If Employee earns Personal Time as a Lump Sum amount at the beginning of the year 47

Direct Deposit Tab ................................................................................................................ 48 Add a Direct Deposit Line Item ......................................................................................... 49 Add More Lines ................................................................................................................ 49 Delete a Direct Deposit Line Item ..................................................................................... 49

Paychecks Tab ..................................................................................................................... 50

Process Payroll ................................................................................................. 51 Process Payroll ......................................................................................................................... 52

Payroll Overview ................................................................................................................... 52 Payroll Progress Indicator ..................................................................................................... 52 Editing an Existing Payroll .................................................................................................... 52

Step #1 Setup Payroll................................................................................................................ 53 Requirement for Closed Payroll ............................................................................................ 53

Step #2 Select Employees ........................................................................................................ 54 Step #3 Edit Timecards ............................................................................................................. 55

Reset a Timecard .................................................................................................................. 56 Delete Pay Items from a Timecard ....................................................................................... 56 Delete a Timecard ................................................................................................................. 56

Step #4 Calculate ...................................................................................................................... 57 Fixing Errors .......................................................................................................................... 57 Recalculate Select Employees ............................................................................................. 57 Calculation Options for Bonus Checks ................................................................................. 58

Step #5 Review ......................................................................................................................... 59 Step #6 Edit Paychecks ............................................................................................................ 60

Edit a Benefit or Deduction Item ........................................................................................... 60 Calculate Overrides Edit Paychecks ..................................................................................... 60 Edit Wages ............................................................................................................................ 60 Delete a Paycheck ................................................................................................................ 61 Void a Paycheck ................................................................................................................... 61

Step #7 Print Checks................................................................................................................. 62 Manage Check Numbers ...................................................................................................... 64

Step #8 ACH File ....................................................................................................................... 65 Print ACH Receipts ............................................................................................................... 67

Step #9 Close Payroll ................................................................................................................ 68

Optional Setup .................................................................................................. 69 Start-Up Employee Totals ......................................................................................................... 70

Enter Start-Up Employee Gross Wages ............................................................................... 71 Enter Start-Up Deductions/Benefits ...................................................................................... 72

Job Category ............................................................................................................................. 73 Personal Time ........................................................................................................................... 74


Setup Personal Time ............................................................................................................ 74 Record Personal Time .......................................................................................................... 74

If Employee earns Personal Time each Pay Period ......................................................... 75 If Employee earns Personal Time as a Lump Sum amount at the beginning of the year 76 Delete a Personal Time Line Item .................................................................................... 76 Record Personal Time ...................................................................................................... 76

End-of-Year Personal Time Processing ............................................................................... 77 PreNote Employees .................................................................................................................. 79 Local Tax Setup ......................................................................................................................... 80

End of Year Reporting ...................................................................................... 81 W-2/W-3 .................................................................................................................................... 82

Employer – ParishSOFT Responsibilities ............................................................................. 82 W-2 Setup ............................................................................................................................. 83

Box 10 Dependent Care ................................................................................................... 84 Box 11 Non-Qualified Plans ............................................................................................. 84 Box 12 403(b), Taxable Life Insurance, or other codes ................................................... 85 Box 14 Allowances ........................................................................................................... 86

Reprocess/Edit Employee’s W-2 Information ....................................................................... 87 W-2 Boxes – where is the information located in ConnectNow Payroll? ......................... 88 W-2 Boxes – where is the information located in ConnectNow Payroll? ......................... 88

Print W-2 Review .................................................................................................................. 90 Print W-2’s/W-3’s .................................................................................................................. 91 W-2/W-3 Examples ............................................................................................................... 92

W-2 Copy A, 2-Up Blank Paper (Employer’s Social Security Administration Copy) ........ 92 W-2 Copy D, 2-Up Blank Paper (Employer’s Copy) ......................................................... 93 W-2 Copy 1, 2-Up Blank Paper (Employer’s State, City, Local Copy) ............................. 94 W-2 Employee Copies B&C, 4-Up Blank Paper (Employee’s Copy) ............................... 95 W-3 Blank Paper .............................................................................................................. 97 W-3 Preprinted (Printed on preprinted forms found at www.ParishSoftForms.com) ....... 98

W-2 Electronic Filing ............................................................................................................. 99

Reports ............................................................................................................ 103 Reports .................................................................................................................................... 104

Paycycle .............................................................................................................................. 104 Employee ............................................................................................................................ 104 End of Period ...................................................................................................................... 104 Federal ................................................................................................................................ 105 State and Local ................................................................................................................... 105 Report Options .................................................................................................................... 106

Date Selections .............................................................................................................. 106 Paygroup Selections ....................................................................................................... 106 Employee Selections ...................................................................................................... 106 Tax Statement Type Options .......................................................................................... 107 Sort Options .................................................................................................................... 107 Report Format................................................................................................................. 107 Report Sub-Title ............................................................................................................. 107

Memorized Report Groups ...................................................................................................... 108 Memorize a Report Group .................................................................................................. 109 Print a Memorized Report Group ........................................................................................ 110

Exporting Reports .................................................................................................................... 111 Print 941 .................................................................................................................................. 112

Set Employer Information ................................................................................................... 112 Print 941 .............................................................................................................................. 112

6

Administrator Tasks ....................................................................................... 113 Manage Users ......................................................................................................................... 114

Reset a User’s Password .................................................................................................... 115 Deactivate a User Account ................................................................................................. 115

Permissions ............................................................................................................................. 116 Audit ........................................................................................................................................ 117

Index ................................................................................................................ 119

7

INTRODUCTION

8

Introduction to

ConnectNow Payroll

ParishSOFT’s ConnectNow Payroll brings

you a powerful, fully featured payroll system

with the freedom of anytime, anywhere

access—all delivered in an

easy-to-use interface.

An online application, Payroll is designed

especially for churches and schools, so

staff—even the non-experts—can manage

payroll, deductions, benefits, special clergy

allowances, and personal time

with confidence.

Fully integrated with our ConnectNow

Ledger and Payables program, all Payroll

processing is automatically tracked in your

general ledger, so there’s no need for

duplicate data entry or special imports. And

because Payroll is Web-based, ParishSOFT

maintains current state and federal tax

tables for you, so you can rest assured that

your Payroll system will always be updated

with the most current rates.

The ConnectNow family of Church

Accounting modules includes: Ledger and

Payables, Payroll, Accounts Receivable,

Fixed Assets, and Ledger Report Writer.

Purchase Orders is coming soon.

Reporting

Payroll offers full reporting on historical

data for all prior years, so you can quickly

access the records you need at any time. You

can even work in next year’s file without

having to close the prior year.

Hosting

ConnectNow Church Accounting programs

and databases are hosted by ParishSOFT, so

you’ll never need to update your software.

ParishSOFT automatically updates your

system; backs up your data; and provides

Web-based access, advanced encryption,

and a state-of-the-art data center that

ensures your records are safe and secure but

always available to your authorized users.

Data Conversions

Most churches that use ConnectNow Church

Accounting choose to have ParishSOFT

convert their old accounting data so that

they can get started right away without

rekeying any old records. If your church still

needs data conversion, please contact our

team of experts at [email protected]

or 866-930-4774 x2. We offer data

conversion services for the following

accounting programs: Quickbooks, PDS,

CMS, and Logos Accounting.

Functionality and Privileges

Because this guide covers functionality for

both standalone church accounting systems

and those hosted by parent organizations,

some of the options illustrated may not be

available to you. Login-based system

privilege settings may also render certain

functions unavailable to your user account.

The Payroll system provides two different

system privilege levels: Church

Administrator and Church User.

Only users with the Church Administrator

privilege can do the following:

View options in the Church

Manager tab—this tab is hidden to

Church Users

Manage Payroll system

user accounts.

Create a payroll with a date that is

prior to the current

accounting month.

mailto:[email protected]

INTRODUCTION 9


Administrators may grant staff with the

Church User permission level access to all

other functionality in the Payroll system.

For more information, see Manage Users of

the Payroll System, page 114, and

Permissions, page 116. If you find that some

of the functionality illustrated in this guide

or otherwise available in the system is not

available to you, please contact your

organization’s ConnectNow Church

Accounting administrator to discuss your

system privileges.

System Requirements

Internet Connection

Firefox 20 or above for Mac/PC

users, Safari 6 or above for Mac

users, or Internet Explorer 8 or

above for PC users

Acrobat Reader X or above

Cookies and Java Script must be

enabled on your PC

Pop-ups must be allowed for the

ConnectNow Church

Accounting site

Automatic Logoff of Inactive

User Sessions For security purposes, a user’s session logs off after 45 minutes of inactivity. The system defines an inactive user as one who has not performed any of the following actions during the 45-minute time period:

Submitted or saved a transaction

Added additional transaction items

Selected transactions in Bank Reconciliation or Credit Card Reconciliation

Refreshed the page

Navigated to another page or report in the application

If the user is in the middle of entering a transaction, the user’s session does not log off. After the user submits or saves the transaction, or after the user refreshes or leaves the page, the user’s session then logs off.

After a user is logged off, the system displays the following message: Logged off due

to inactivity. To log in again, the user must re-enter his or her login credentials.

User Checklist

Before you can log in to your secure Payroll

website, the ConnectNow Ledger and

Payables system must be set up and

functional. In addition, you will need the

following to set up payroll or to access your

payroll records:

Your church’s secure web address

A valid login (i.e., Username and

Password)

About This Manual

This guide documents the features and

functionality of the Payroll application using

simple, task-based examples to illustrate

how to use the tools to manage efficiently

your employee records, pay groups,

fund/department allocations, deductions,

special clergy benefits, check layout and

printing, and more.

The Payroll system provides informative

messages and “mouseover” tips (i.e., tips

that display after you position your mouse

pointer over a particular field or other

screen area) based on your user activity.

The examples shown in this document use

demonstration data and do not represent the

actual records of any person or organization.

Training

ParishSOFT also offers classes in two

convenient formats: teletraining or in-

person. Each class is taught by an

experienced ParishSOFT instructor and

conducted in a hands-on format that is

designed to help you get comfortable with

the Ledger and Payables software quickly.

10

Support

Convenient support links, located on your

main Payroll “dashboard,” make it easy to

contact support, open the user guide or

online help tools, or review release notes.

For customer support, please contact us via

phone or email, or use our online tools.

Toll Free: 866-930-4774

Email: [email protected]

Web: www.parishsoft.com

mailto:[email protected]

http://www.parishsoft.com/

INTRODUCTION 11


Open Your Secure Payroll

Website

Your ConnectNow Ledger and Payables

application is available from any web

browser to users with valid login credentials.

Complete the following steps to access

the application:

1. Open your web browser application

(e.g., Microsoft Internet Explorer,

Mozilla Firefox, etc.).

2. Enter your secure Ledger and

Payables http address in your

browser’s address line.

(Example – Your Site May Vary)

3. Add the website to your list of

frequently visited sites. Firefox users

can click Bookmarks >

Bookmark this Page; Internet

Explorer users can click Favorites

> Add to Favorites.

Log In

Enter the login credentials (Username and

Password) provided by your organization’s

ConnectNow Accounting Church

Administrator, and click the

Submit button.

Log Out

To protect your sensitive employee and

payroll records, log out of the Payroll

website after you are finished working in

the system or if you need to leave your

computer unattended.

The Logout button is located in the upper-

right corner of your Ledger and Payables

browser window. Simply click it to sign out

of the system.

NOTE: If the system detects no

activity for 45 minutes, you will

be logged out automatically. See

“Automatic Logoff of Inactive

User Sessions” on page 9 for

more details.

12

Change Your Password

You can change your own password by

accessing your personal user profile.

1. Click your user name in the upper-

right corner of your screen. Your

personal user profile opens.

2. Enter your Current Password,

New Password, Confirm the

New Password.

3. Click Change Password

and Submit.

Your password is now changed.

INTRODUCTION 13


Navigation

A valid login takes you to the ConnectNow

Church Accounting page. Payroll setup and

processing functions are available from the

Payroll tab. Additional tabs for other

ConnectNow Church Accounting products

may also be available to you depending on

which modules your church has licensed and

the system privileges allowed for your login.

The upper right of the screen shows your

login information, parent organization, and

church name.

Navigation icons for Payroll Process,

Employees, Setup, and Reports are

available on the upper-left side of the screen

and provide fast, easy access for staff who

manage your payroll.

Below the icons is the current “dashboard”

view of your payroll. The upper-left side of

the dashboard shows real-time summary

data from your last payroll, account details

for your current payroll, and tax form

reminders. The dashboard also links you to

the Next Step needed for your current pay

cycle processing. The graph in the lower-left

shows the last 12 months of gross wages.

Your complete list of Employees displays

on the right. Employee names and email

addresses are linked, so you can make fast

updates to employee information or send a

quick email.

Click with your mouse to navigate to any

area of the Payroll program.

14

{Intentionally Blank}

15

BASIC SETUP

16

Complete Initial Payroll

Setup

The process in the flowchart on this page

illustrates the basic initial setup that new

users will need to complete before they

begin using the ConnectNow Payroll system.

Note that your ConnectNow Ledger and

Payables system must be set up prior to

processing payroll.

For instructions on completing each of the

setup items, please see the pages referenced

for each task in the following list.

1. Enter Employer Information, page 17.

2. Set Up Pay Groups, page 19.

3. Enter Pay Items, page 21.

4. Manage Deductions and

Benefits, page 23.

5. Enter Account Distributions, page 26.

6. Set Up Payroll Check Layout, page 29.

7. Enter Employee Information, page 31.

8. Prenote Employees for Direct

Deposit, page 79.

Instructions for Processing Payroll begin

on page 52.

Run Payroll Cycles

Select Employees, Edit

Timecards, Calculate,

Review/Edit, Print Checks,

Submit ACH File

Close Payroll

Reports

No

Begin Payroll Setup

Enter Employer Information

Manage Deductions/Benefits

Enter Pay Items

Is Ledger &

Payables Setup

Complete?

Set up ConnectNow Ledger

and Payables System

End Payroll Setup

Yes

Enter Account Distributions

Set Up Pay Groups

Set Up Payroll Check Layout

Prenote Employees

for Direct Deposit

Enter Employee Information

Process Payroll

BASIC SETUP 17


Enter Employer

Information

Use the Employer Information screen to set

up your general church information; your

federal, state and local tax IDs; and your

ACH (Automated Clearinghouse)

information for direct deposit processing.

1. Click the Setup button.

2. Click Employer Info.

3. Enter your church’s General

information, including the full name

of your church, address, and phone.

4. Enter the primary Payroll user’s

Contact information.

5. Enter the Tax ID numbers for

Federal, State, and Local

withholding. The system provides

four State and four Local tax

ID fields, along four state

unemployment wage max and four

state unemployment rate fields.

6. If paying your employees by Direct

Deposit, enter the ACH Information

required for processing your direct

deposits. Field descriptions are

provided on page 18.

7. Enter information to print on your

941 forms in the Additional 941

Information section.

8. Click Submit to save your entry

and proceed to Set Up Pay Groups,

page 19.

18

Field Descriptions for the

Employer Information Screen

General Information

Employer Name

Enter the name of the church or other

organization issuing payroll, up to 30

characters as it should appear on your

checks, 941 and W-2’s.

Address and Address 2

Enter the address of your organization as it

should appear on your checks, 941 and W-

2’s, up to 30 characters per address line.

City, State, ZIP Code, Phone

Enter the city (up to 30 characters), state,

ZIP Code, and phone number of the

organization. The address entered here will

display on your printed paychecks, 941 and

W-2’s —the phone number will not display

on checks.

Tax IDs

Federal Tax ID

Enter the Federal Tax ID number for

your organization.

State 1 – State 4

Enter the two digit state abbreviation and

state tax ID number for your organization.

If you pay employees who reside in multiple

states, enter up to four state abbreviations

and tax ID numbers.

Local 1 – Local 4

Enter the local tax abbreviation and local tax

ID number for your organization. If your

area has more than one local tax, enter up to

four local tax abbreviations and local tax

ID numbers.

ACH Info

The fields for ACH Information must be

completed in order to process direct

deposits. ACH files may be uploaded

directly to your Church’s bank or may be

provided to a third party ACH service.

ConnectNow Payroll can accommodate both

methods of Direct Deposit.

If you are unsure of the data you should

enter in these fields, contact your ACH

service provider for more information.

Immediate Destination

Nine-digit or ten-digit routing number of the

receiving point to which the file is being

sent. This is typically the applicable Federal

Reserve routing number.

Immediate Origin

Nine-digit or ten-digit routing number of the

sending point of the file. This is typically

your bank’s routing number.

Immediate Destination Name

Name of the receiving point for which the

file is destined. This is typically your

bank’s name.

Immediate Origin Name

Name of the sending point of the file. This is

typically your church’s name.

Originating DFI Identification

Eight-digit routing number to the

Department of Financial Institutions (DFI)

originating entries. This is typically your

bank’s routing number minus the last digit.

Account Number

Your church’s bank account number.

Batch Number

Assigned automatically and sequentially by

the system for each ACH file submission.

The number in this field indicates the total

number of batches assigned by the system.

Contact Info

Enter the Contact Name, Phone, Fax and

Email (required) for the primary Payroll

user in your Organization.

BASIC SETUP 19


Set Up Pay Groups Use the Pay Groups screen to define pay

periods for groups of employees paid at the

same frequency as specified in the Pay

Periods Per Year field.

You can set up pay groups to match

pay frequency (Monthly Salary, Monthly

Hourly, Semi-Monthly, Weekly, etc.), staff

title (Day Care, Pastor, Office Staff,

Teachers, etc.) or whatever else makes sense

for your organization. After you have Pay

Groups set up, you can process payroll by

Pay Group.

1. Click the Setup button and select

Pay Group.

2. Click New Pay Group (located above

and left of the Pay Group

Information fields).

3. Enter the Pay Group Number.

4. Enter the Description of the

Pay Group.

5. Enter the number of Pay Periods

Per Year.

6. Click Submit to save your entry.

You can now assign employees to the new

Pay Group from the Employee

Information > Pay Data screen.

Recommendations for Pay Groups

Use separate pay groups for employees paid

from different bank accounts.

If you process payroll for teachers who are

paid only for part of the year (e.g., Sept–

June), we recommend setting up a separate

pay group—then changing your payroll

processing during the summer break is as

easy as not selecting the “Teachers”

pay group.

ConnectNow Payroll uses the

Pay Periods Per Year field to

annualize the gross pay,

deductions and benefits for each

employee and use the Federal

and State Annual Tax tables to

determine applicable taxes; then

de-annualize the amounts for

the current payroll.

20

Field Descriptions for the Pay

Group Information Screen

Pay Group Number

Enter the unique ID number for your pay

group, up to 30 characters. The system sorts

your list of Pay Groups by ID number in the

Quick Find list. After you save your new Pay

Group, this field cannot be edited.

Description

Enter the unique description of your pay

group, up to 30 characters (e.g., Monthly

Salary, Monthly Hourly,

Semi-Monthly, Special).

Pay Periods Per Year

Enter the number of times payroll will be

processed for this pay group during a one-

year period.

Manage Pay Groups

Use the Quick Find to view the details of

any Pay Group in your system.

1. Click the Lookup button.

2. Select the Pay Group from the list.

3. Click Find Item.

Edit a Pay Group

The Pay Group Information displays. You

can edit the Description or Pay Periods

Per Year for any Pay Group in the system—

just make a change and click Submit. Note

the Pay Group Number cannot be changed.

Delete a Pay Group

Pay Groups that are not assigned to

employees can be deleted from the system.

If a user tries to delete a Pay Group that is in

use, the system displays an error message,

along with a list of the employees who

belong to the Pay Group. You can then

remove the employees and delete the

pay group.

To delete a Pay Group, view the details on

the Pay Group Information screen and click

the Delete button.

BASIC SETUP 21


Enter Pay Items

Use the Pay Item screen to define the things

that might be included in an employee’s pay

(e.g., salary, housing allowance, mileage,

and any reimbursements, etc.). The Pay

Item Description is printed on the

employee’s paycheck stub.

1. Click the Setup button and

click Pay Item.

2. Click New Pay Item (located above

and to the left of the Pay Item

Information fields).

3. Enter the item’s Description as you

would like it to appear on employee

paycheck stub.

4. Choose the Pay Item Type of Taxable,

Non-Taxable or Clergy.

Taxable Pay Item Types include lay

employee Salary items.

Non-Taxable Pay Item Types include

Allowances, Reimbursements,

Mileage, etc.

Clergy Pay Item Types accumulates

wages that are subject to Federal and

State income tax withholding. However,

because withholding for Social Security

and Medicare is typically not calculated

for employees in this group, you should

disable withholding for Social Security

and Medicare taxes.

5. Enter the Default Check

Sequence (required).

6. Choose the Default Gross Pay

Account (optional).

7. Click Submit to save.

Field Descriptions for the Pay Item

Information Screen

Description

Enter up to 30 characters in this field to

identify each unique Pay Item. The

Description is selectable from the employee’s

Pay Data screen, and it will print on

paychecks when selected as a line item for a

given employee.

Pay Item Type

Your selection of Taxable or Non-Taxable

determines whether the system calculates

taxes for a given Pay Item.

Default Check Sequence

The number in this field is used to control

whether Pay Items print on one check or on

separate paychecks. To print all Pay Items on a

single paycheck, always use a check sequence

of 1. When you wish to print Pay Items on

separate checks, enter a Check Sequence of 2

or more. This results in an additional paycheck

printing for the employee for the selected Pay

Item. For example, you may want to pay the

Pastor’s Salary on one paycheck but issue a

separate check for his Housing Allowance—to

accomplish this, just assign the “Housing

Allowance” Pay Item the Check Sequence 2.

Default Gross Pay Account

This selection determines the account to which

the Pay Item disbursement will be allocated in

your ConnectNow Ledger and Payables system

when you process payroll. This field is

optional. If you prefer to assign this directly

on the Employee’s Pay Data display, leave this

field blank.

22

Manage Pay Items

Use the Quick Find to view the details of

any Pay Item in your system.

1. Click the Lookup button or type

the first letter of the Pay

Item description.

2. Select the Pay Item from the list.

3. Click Find Item.

Edit a Pay Item

After you display the Pay Item Information,

you may edit any of the details—just make

the desired change and click Submit.

Delete a Pay Item

Pay Items that are not assigned to

employees can be deleted from the system. If

you try to delete a Pay Item that is assigned,

the system informs you that the item is in

use and cannot be deleted.

To delete a Pay Item, view the details on the

Pay Item Information screen and click the

Delete button.

BASIC SETUP 23


Manage Deductions and

Benefits

Use the Deductions/Benefits screen to

define any line item taken from an

employee’s pay (e.g., 403(b), Health

Insurance, Garnishment, etc.). You must

specify a liability and/or expense account

link for all gross pay accounts on the

Account Distribution screen to calculate

a payroll.

1. Click the Setup button and click

Deduction/Benefit List. Items with

Codes less than or equal to 10 are system-

defined deductions and benefits for

standard items.

2. To add a new item, click Add a New

Deduction/Benefit From Template,

and click the Select button to create a new

benefit or deduction based on an

existing template.

3. The system creates a copy of the item you

selected and assign it the next available Code

number. Scroll to the end of the list view to

locate the newly copied deduction or benefit

and click the Edit button to enter the item’s

details.

24

4. Change the Description fields as needed,

entering the text as you would like it to

display on employee paychecks.

5. Select either Deduction or Benefit as

the Type.

6. The Code Number is generated

sequentially and automatically by the

Payroll system.

7. Select a W2 Category for the item.

8. Check or uncheck the Subject to Tax

boxes as appropriate (see field

descriptions below for

more information).

9. Click Submit to save, and proceed to

page 26 to Enter Account Distributions.

Field Descriptions for the

Deduction/Benefit Screen

Description

Name of the deduction or benefit as it will

appear on employee paychecks and in your

Payroll system. The description must

be unique.

Type

Specify whether the item is a Deduction or

Benefit. Deductions are withheld from the

employee's check and accumulated in a

liability account for payment. Benefits are

calculated amounts the employer pays on

behalf of the employee for a service or tax

(e.g., insurance, Social Security). Benefit

amounts are accumulated in a liability

account for payment and are

automatically expensed.

Code Number

Assigned sequentially and automatically by

the Payroll system. You can edit this field to

assign another code number of 11

and higher.

W2 Category

Used for checking applicable boxes for Form

W-2 printing. Choices include Other,

Retirement, Tax Deferred, and Retirement

and Tax Def.

Subject to Tax

Check the boxes to determine how

deductions and benefits affect tax

calculations. When the checked taxes are

calculated, the taxable wage amount used

will be reduced by the amount of the

deduction. For benefits, the benefit amount

will be included in the taxable total.

BASIC SETUP 25


Manage Deductions and Benefits

To view the details of any deduction or

benefit, click the Edit button from the main

list view of Deductions/Benefits.

After you have the details view open, you can

use the Quick Find to view the details of

another deduction or benefit in your system.

1. Click the Lookup button or type the Code

Number of the deduction or benefit.

2. Select the deduction or benefit from the list.

3. Click Select.

Edit a Deduction or Benefit

After you have displayed the details of the

deduction or benefit, you may edit any of the

details—just make the desired change and

click Submit. Code Numbers 1-10 are

reserved by the system and cannot be edited.

Delete a Deduction or Benefit

A deduction or benefit that is not in use by

the system can be deleted from the system.

If you try to delete an item that is assigned,

the system informs you that the item is in

use and cannot be deleted.

To delete a deduction or benefit, view the

details on the Deductions/Benefits screen

and click the Delete button.

26

Enter Account

Distributions

Use the Account Distributions screen to

define liability and expense accounts

from the Ledger and Payables system that

will be updated with each payroll posting.

Liability accounts are credited (increased).

Expense accounts are debited (increased).

ConnectNow Payroll automatically takes the

monies withheld from the employee’s check

for all Deductions (e.g. Federal Tax, Health

Insurance, 403 (b), etc.) and store in the

Liability Accounts you select on this display.

The system also books the expense portion

of any Benefit (e.g. Social Security,

Medicare, 403(b),etc.) for you and store the

amounts in the Liability Accounts you select

on this display.

When it comes time to pay the bill for the

Deductions and Benefits, use the Liability

Accounts as the Bill Line Item which will

Debit (decrease) the Liability account.

Account Distributions are defined for each

gross pay account. Gross pay accounts are

normally salary expense accounts used to

pay an employee’s regular or allowance pay.

Examples include Pastor’s Salary, Youth

Director, or priest’s Housing Allowance.

1. Click the Setup button, and click

Account Distributions.

2. Locate the desired gross pay

expense account in the Quick Find

list and click Select Account.

3. For each deduction line item, click

the lookup arrow and select the

appropriate liability account.

4. For each benefit line item, click the

lookup arrow and select a liability

and an expense account.

5. Click the Submit button to save.

BASIC SETUP 27


Copy Account Distributions

To save time, you may copy an account

distribution from one gross pay expense

account to another. This is a convenient way

to set up account distributions for like gross

pay accounts, such as Parish Clergy Salaries

and Contracted Clergy. After you copy

account distributions, you may edit liability

and expense account settings for individual

line items as needed.

1. Locate and select the gross pay

account containing the distribution

settings you wish to copy using the

Quick Find.

2. Click the Select Account button.

The account distribution

settings display.

3. Click the Copy button,

located at the bottom of

the screen.

4. Select the account to which

you wish to copy the

selected distributions, and

click the Copy button.

The system returns you to

the previous screen

containing the “copy from”

settings. To view the settings

in the “copy to” account,

select that account using the

Quick Find.

NOTE: All Gross Pay Expense

Accounts must have all

Deductions and Benefits

distributed to the appropriate

Liability and Expense accounts;

including Clergy Salary expense

accounts. You are able to choose

which taxes are withheld on each

Employee’s Tax Data tab.

28

Edit Account Distributions

Account distributions may be edited to

change expense or liability account settings

as needed.

1. Locate and select the gross pay

account using the Quick Find.

2. Select the liability or expense

account setting you wish to change

and press your <Delete> key

to clear the field.

3. Click into the lookup table and

select the new liability or

expense account.

4. Click the Submit button

to save.

BASIC SETUP 29

Set Up Payroll Check

Layout

Use the Set Up Payroll Check Layout screen

to define the layout of your payroll checks

and specify precisely the position of data

that will be printed on your check.

The default settings for checks apply to

checks purchased through

www.ParishSoftForms.com. But you can

customize the check layout for your existing

check stock.

1. Click the Setup button, and

click Payroll Check Layout.

2. Select the Bank Account from which

your payroll checks are paid. Each

account may have a different

check layout.

3. Specify any Left/Right and Up/Down

position adjustments needed for

each check field by clicking the green

arrows. Adjustments are made in 1/100

inch increments to the following fields:

Check Date

Check Amount

Check Number

Check Amount (Words)

Check Payee

Check Memo

Payee Name/Address

NOTE: Adjustments are made in 1/100

of an inch increments. To move ¼ inch,

enter 25, to move ½ inch, enter 50, to

move 1 inch enter 100.

4. Under Payroll Check Page Layout

Options, select your Payroll Check

Format from the following

four options:

Check-Stub-Stub

Stub-Check-Stub

Check-Check-Check

http://www.parishsoftforms.com/

30

5. For the option Print Check # On

Check, specify Yes or No.

NOTE: You must continue to purchase

pre-numbered checks. This option

prints the check number in small

characters near the pre-printed check

number and is for auditing purposes.

6. For the option Print Check Payee,

specify Yes or No.

If your Employee’s Name prints in an

additional line under “Pay to the order

of:”, select Yes on this option.

If the “Pay to the order of” is built into

the Employee’s Name and Address and

the employee’s name prints only once on

the check, select No on this option.

7. Under Overall Page Adjustments,

change the left and right Margins and

customize the Section Divider spacing

to change the spacing between check,

stub, or account number sections

as needed.

8. Click Save Settings. Then click Print

Test Check, print a sample check on

one of your test forms, and inspect the

positioning of all fields carefully. Make

and save any additional adjustments

needed prior to processing your

first payroll.

NOTE: You must click Save Settings

before clicking Print Test Check or

the system will revert back to your

previous settings.

9. Click Save.

The sample printed check layout below

shows the positioning of fields and sections

for a “check-stub-stub” layout.

TIP: If using the same check stock as Ledger

& Payables, and you’ve already completed

the check layout in Ledger & Payables, print

the Ledger & Payables Check Layout display

and simply insert the numbers used in the

previous layout.

BASIC SETUP 31


Pop-Up Blocker You may receive a notice that pop-ups are blocked for this site. You must always allow pop ups for this site to print checks. In Internet Explorer, right-click the yellow bar for more options. Then, choose this option: Always Allow Pop-ups from This Site.

In Firefox, click the Options button on the right. Then, choose this option:

Allow pop-ups for name of

diocese.connectnowaccounting.com.

32


33


EMPLOYEE ENTRY

34

Enter Employee

Information Use the Employee Information screen to add new employee records to the Payroll system or to edit existing employee records. Independent contractors or others who receive a 1099-MISC form should be entered and paid as a vendor in the Ledger and Payables system. Employee information is organized on a series of nine tabs. The only required tabs to enter an employee are General, Tax Data and Pay Data. The remaining tabs are either optional or informational only.

Employee General Tab To add new employee records, complete the following steps.

1. Click the Employees button. A list of previously entered employees displays.

2. Click Add a New Employee.

Enter the employee’s General Information. All fields are limited to 30 characters unless otherwise noted.

First, Middle, and Last Name

(required) Enter the employee’s

full name as you would like it to

appear on paychecks in the

available fields. We recommend

you enter the employee name

exactly as it appears on his/her

Social Security card to keep

compliant with IRS

payroll requirements.

Suffix

Enter a name suffix or credential (e.g., Jr.,

PhD, Sr).

Address, Address 2, City, State, and

ZIP Code (or postal code)

Enter the employee’s complete address as it

should be printed on paychecks.

Gender

M for male or F for female. This field accepts

only one character.

Birthdate

Enter in mm/dd/yyyy format or select from

the calendar lookup table. The employee’s

age calculates based on the date in this field

and displays to the right of the birthdate.

Phone Number, Cell Phone and Email

Enter the contact information for

the employee.

Emergency Contact name and

Emergency Phone

Enter the emergency contact person’s name

and phone number. It’s helpful to note the

relationship of the person to the employee

either field (e.g., sister, spouse) so that in

the event of an emergency, your staff will be

better informed about whom they

are contacting.

EMPLOYEE ENTRY 35


3. Click Submit to save and activate the links

to the remaining employee information tabs.

Employment/Custom Tab

Click the Emp/Cust tab, check the Active

box (if applicable), complete the fields on

this screen as appropriate for the employee.

Employment & custom information includes

the employee's job title, employment date

and physical limits. Also on this dialog are

several custom fields you can use for

whatever purposes are most useful to you.

All fields are limited to 30 characters unless

otherwise noted.

Active

Employment status of the employee. Only

employees with a status of Active are

available for a given payroll process. Check

the box to set the employment status to

Active. Inactive employee data will show up

on Payroll reports for the period in which

they were paid.

Job Title

Enter the employee’s

title as it should

appear in your

Payroll system.

Job Category

Select the Job Categories

you’ve created from the

lookup table (see Job

Category on page 73).

Employment Date and

Employment Date 2

Enter the date using

MM/DD/YYYY format or

select a date from the

calendar lookup. Use the

Employment Date 2 field

when a previously

terminated employee begins working for

your organization again.

Termination Date and Termination

Date 2

Enter the date using MM/DD/YYYY format

or select a date from the calendar lookup.

Use the Termination Date 2 field when an

employee was terminated from a position

and has a start date in the Employment

Date 2 field.

Deceased

Check to indicate the employee is deceased.

This setting is provided for the purpose of

reflecting an employee’s Deceased status

properly on the W-2 form.

Retirement Number

If applicable, enter the employee’s

retirement number.

Last Physical

Enter the date of the employee’s last

physical examination.

Physical Limitations

If applicable, enter a description of the

employee’s physical limitations.

36

Custom Number 1–2

Two custom number fields can each store up

to a 30-character alphanumeric ID for each

employee. These fields are ideal places to

track an employee number, benefit plan

number, etc.

Custom Text 1–4

Four custom text fields can store additional

information of up to 30 alphanumeric

characters each. These fields are ideal places

to track location codes, certifications, etc.

Custom Date 1–4Use the four custom date

fields to record dates that you wish to track

in your Payroll system (e.g., certification or

retirement dates). Enter dates in

MM/DD/YYYY format or select dates from

the calendar lookup.

Custom Long Text

Use the custom long text field to record

custom information of up to

30 alphanumeric characters.

Click Submit to save.

Tax Data Tab

Employee tax data defines which taxes are

withheld from the employee's paycheck. It

also records their marital status, deductions,

and allowances.

The tax tables within the ConnectNow

Payroll system are updated regularly on our

servers, so you can rest assured that each

time you process your payroll, taxes are

being calculated using the latest tables from

the IRS and each of the 50 U.S. states. You

do not need to update tax tables within the

system.

If any localities within your employees’

states of residence require that you withhold

local taxes, you can add those rates to the

system (see Error! Reference source not

found. on page Error! Bookmark not

defined.).

All fields are limited to 30 characters unless

otherwise noted.

Click the Tax Data tab to define which

taxes will be withheld from the employee’s

paycheck. Boxes are checked by default for

Social Security, Medicare, State, and

Federal Tax Withholding, as well as

Subject to State Unemployment.

Uncheck to deselect or check to select

withholding options as appropriate.

1. The Payroll system assumes that Social

Security Tax should be withheld for each

employee, so the Withhold Social

Security Tax box is checked by default. If

Social Security Tax should not be withheld

for the selected employee (e.g. Clergy),

uncheck the box.

2. The Payroll system assumes that Social

Security Tax should be withheld for each

employee, so the Withhold Medicare Tax

box is checked by default. If Medicare Tax

should not be withheld for the selected

employee (e.g. Clergy), uncheck the box.

3. In the Tax Statement field (required),

select W-2 or No Statement. Employees

defined as No Statement are not included

when you print your W-2s.

4. Under State Tax Withholding, select the

State of residence and Marital Status,

and enter the data in the Allowances,

Dependents, or Extra withholding fields

as needed.

EMPLOYEE ENTRY 37


5. Withhold State Tax

This box is checked by default. If

U.S. State Tax should not be

withheld for the selected

employee, uncheck the box.

When unchecked, the data fields

that define State

Tax withholding are hidden.

Applicable State

Select the employee’s state of

residence from the lookup. State

Tax deductions are calculated

based on the selected state’s

tax table.

Marital Status

Select the marital status for the

State tax calculations as

appropriate for the employee.

Options include: Single, Head of

Household, Married –

Jointly/Spouse Employed, Married –

Jointly/Spouse Unemployed, Married –

Separately/Spouse Employed, Married –

Separately/Spouse Unemployed.

If your state does not differentiate between

an employed spouse, the system simply

assumes Married-Jointly or Married-

Separately based on the selection made.

Allowances

Enter the number of exemptions to be

considered in each of the State calculations

as appropriate for the employee based on

the employee’s W-4 form.

Dependents

Enter the number of dependents to be

considered in the State Tax calculations as

appropriate for the employee. Not all States

use the concept of Dependents; use only if

applicable for your State.

Override

Enter the dollar amount (as a positive

number, not a negative number) that will be

deducted per paycheck instead of the

standard State Tax calculations. This

replaces what the system calculates for State

Taxes and use the amount entered. Include

the 2 decimal places required by the system.

If the dollar amount entered is $0.00, no

taxes are withheld.

Extra

If the employee wishes to have additional

tax withheld, enter the amount per paycheck

in the field for State Extra withholding (as a

positive number, not a negative number).

Include the 2 decimal places required by the

system. If an Override amount was entered

for State Tax Withholding, the Payroll

system ignores any amount in the

Extra field.

Subject to State Unemployment

This field is checked by default to indicate

that the employee is to be included on the

State Unemployment report. No taxes are

withheld from the employee if this box

is checked.

6. Under Federal Tax Withholding, select

the Marital Status and enter data in the

38

NOTE: If you have Clergy who

want their wages to be reported

as Federal Taxable Wages on

the W-2, but do not want taxes

withheld, check the box at

Withhold Federal Tax and enter

a $0.00 in the Override field.

Allowances, Override, and Extra

withholding fields as needed.

Withhold Federal Tax

When unchecked, the data fields that define

federal tax withholding is hidden.

Marital Status

Select the marital status for the Federal tax

calculations as appropriate for the employee.

Options include: Single, Married, Married

but use Single Tables.

Head of House tables are identical to Single

tables in the Federal Tax Tables. If you have

an employee who has defined themselves as

Head of House on their W-4, select the

Marital Status of Single.

Allowances


considered in each of the Federal

calculations as appropriate for the employee

based on the employee’s W-4 form.

Override




standard Federal Tax calculations. This

replaces what the system calculates for

Federal Taxes and use the amount entered.


system. If the dollar amount entered is

$0.00, no taxes are withheld.

Extra



in the field for Federal Extra withholding (as

a positive number, not a negative number).



for Federal Tax Withholding, the Payroll


Extra field.

7. If Local Tax Withholding applies, check the

Withhold Local Tax box.

Withhold Local Tax

This field is unchecked by default, and the

data fields that define local tax withholding

are hidden. If local tax withholding applies

to the employee, check the box to display the

data fields that define local tax withholding

(See Error! Reference source not

found. on page Error! Bookmark not

defined.).

EMPLOYEE ENTRY 39


Applicable Local

Select the applicable local tax from

the lookup.

Marital Status

Select the marital status for the Local tax

calculations as appropriate for the employee.

Options include: Single, Head of

Household, Married – Jointly/Spouse

Employed, Married – Jointly/Spouse

Unemployed, Married – Separately/Spouse

Employed, Married – Separately/Spouse

Unemployed.

If your locality does not differentiate

between an employed spouse, the system

simply assumes Married-Jointly or Married-

Separately based on the selection made.

Allowances


considered in each of the Local calculations

as appropriate for the employee based on

the employee’s W-4 form.

Override




standard Local Tax calculations. This

replaces what the system calculates for Local

Taxes and use the amount entered. Include

the 2 decimal places required by the system.

If the dollar amount entered is $0.00, no

taxes are withheld.

Extra



in the field for Local Extra withholding (as a

positive number, not a negative number).



for Local Tax Withholding, the Payroll


Extra field.

8. Click Submit to save the Tax Data entered.

Pay Data Tab

Click the Pay Data tab and define the

employee’s Pay Group, Pay Items, Hourly

Rate or Salary, and Account.

1. Under Pay Group, select the appropriate

item from the lookup table. The Pay Group

options listed are added to your Payroll

system using the Set Up Pay Groups

procedure on page 19 (e.g., options may

include Monthly, Semi-Monthly, Special).

2. Using the option buttons on the right, select

Hourly or Salary, and Full-Time or

Part-Time. These options are used by the

Employee Pay Status report and the

Blank Timecards report.

3. Select the appropriate Pay Description

from the lookup items for which the

employee should be paid. Options in the Pay

Description lookup are added to your Payroll

system using the Enter Pay Items procedure

on page 21.

4. Specify either the Hours/Units and Rate

or enter a Pay Period Amount.

Hourly Employees

40

If the employee is paid for the same number

of hours each pay period, type the number of

hours in the Hours/Units field and the

system auto-populates the employee’s

timecard each pay cycle.

If the number of hours worked is variable,

leave the Hours/Units field blank. The

number of hours entered here can be

overridden during payroll processing if

needed. See the step

Step #3 Edit Timecard beginning on page 55

for more information.

If the employee is being paid by the hour,

enter the hourly rate in the Rate field.

If you have entered data into the Rate field

the system calculates the Pay Period Amount

using the following equation:

Pay Period Amount = Hours/Units * Rate

Salaried Employees

If the employee is paid a salaried amount

instead of an hourly rate, enter that amount

into either the Pay Period Amount or

Annual Amount field.

The system automatically calculate s the

Annual Amount only if the Pay Period

Amount is entered. It also calculates the Pay

Period Amount if only the Annual Amount

is entered.

Annual Amount = Pay Period Amount *

number of pay periods per year (defined by

the Pay Group selection)

Pay Period Amount = Annual Amount /

number of pay periods per year (defined by

the Pay Group selection)

Select an Account for the pay item.

If you associated an Expense Account when

entering the pay items, this field is

automatically populated based on your setup

(see page 8), but you can change the

distribution by selecting another option

from the lookup table if needed.

If you did not associate an Expense Account

to the pay items, enter the correct gross pay

Expense Account in the Account field.

You may enter multiple pay item types and

associated different gross pay Expense

Accounts for each pay item type if needed.

If you would like to distribute the

EMPLOYEE ENTRY 41


employee’s pay over multiple accounts, see

the section below for more information.

5. Repeat steps 2-4 for any additional

pay items.

6. Click Submit to save the Pay Data.

Multi-Account Distribution for Pay Data

If you have pay items that need to be

distributed among two or more accounts,

select the Pay Description and enter the

Hours/Units, Rate, Pay Period

Amount or Annual Amount.

Then click the Use Distribution checkbox

and click the Distribution button.

Enter the gross pay Expense Accounts

and Percentages and the system

automatically distributes the employee’s pay

to those gross pay Expense Accounts each

time payroll is processed.

For example, if you have a custodian who

works for both the school and the church,

and he or she is paid out of different

accounts, you could add two Custodian

Salary pay data line items and enter the

typical distribution here (e.g., 75% of is

salary should be booked to the church

account, while 25% of his salary should be

booked to the school account). This helps

ensure that salary expenses are distributed

appropriately during each pay cycle.

The Account field remains empty on the

display, but the Use Distribution checkbox

remains checked.

Delete a Pay Data Line Item

Click the X to remove any pay data line item

from an employee’s record.

Add More Pay Data Lines to Form

To add more line items to an employee’s pay

data record, click the More Lines link,

located in the lower-left of your screen.

42

Deductions/Benefits Tab

Click the Ded/Ben tab to associate elective

deductions and/or benefits (codes 11 or

higher) with the employee. Deductions and

benefits that you have added as part of your

Payroll Setup are available from the lookup

table. Add each line item and amount as

appropriate for the employee, and click

Submit to save.

1. Under Deduction/Benefit Description,

choose the appropriate items from the

lookup table. Options in this table are added

to your Payroll system using the Manage

Deductions and Benefits setup procedure

on page 23.

2. Deductions and benefits can be entered by

amount or percentage. Enter either the

Amount or Percentage.

If the deduction or benefit is a fixed dollar

amount, enter the amount.

3. If the deduction or benefit is calculated as a

percentage of the employee’s paycheck,

enter the percent.

4. Enter the Limit. Type the maximum

amount that can be deducted from the

employee's paycheck or added to the benefit

total during the calendar year. If there is no

limit for this Deduction/Benefit, the system

automatically populates 999999.99 upon

clicking Submit.

Current Year, Prior Year

The calendar amounts are automatically

updated by the Payroll system. These read-

only fields show accumulated deduction and

benefit totals for the calendar year indicated.

Delete a Deduction/Benefit Line Item

Click the X to remove any line item from an

employee’s record.

Add a Deduction/Benefit Line Item

To add more line items to an employee’s pay

data record, click the More Lines link,

located in the lower-left of your screen.

NOTE: Deductions are listed on the

employee’s paycheck stub, but Benefits

are not listed; as no amounts are

withheld from the employee’s check

for a Benefit.

EMPLOYEE ENTRY 43


Add a Health Care Benefit

To save processing time, you can automate

the benefit calculation within the application

by setting up a healthcare deduction and

then creating a new benefit code for the

employer’s portion of the health care cost

in Payroll.

Alternatively, you can manually edit an

employee’s W-2 to add health care

benefit information.

These two methods are documented in the

following sections.

Automating a Health Care Benefit

Calculation

This process has three main steps. Follow

the steps in the order given.

Step 1: Add the Health Care Benefit

to Your System

1. Select the Payroll tab.

2. Click Setup.

3. Select Deduction/Benefit List.

This list shows all of the deductions and

benefits currently set up in

your system.

4. Select Add a New Deduction/Benefit

From Template.

5. For Employer Health Care Benefit,

click Select.

The application adds the employer

health care benefit to the list of benefits

and deductions available in system. You

can now add it to an employee’s record

and specify the amount of the deduction.

You will perform this task in Step 2.

Step 2: Add the Health Care Benefit

to an Employee’s Record


2. Click Employees.

3. To the left of the desired employee’s

name, click Go.

The selected employee’s record is

displayed. The name of the employee

appears at the top.

4. Under the employee’s name, select the

Ded/Ben tab.

44

6. Add the health care benefit deduction to

the record by clicking the down arrow

and then selecting Employer Health

Care Benefit from the list. Type the

amount of the benefit in the Amount

field or the percent of the benefit in the

Percent field.

Note: If necessary, click More Lines to

add a new line.


The deduction is now added to the

employee’s record. When you run your

next payroll, the amount is shown on the

employee’s paycheck.

Step 3: Set up the W-2 Form

In this final step, you will set up the W-2 to

track and report the employee’s health

care costs.


2. Click Forms.

3. Select W-2 Setup.

4. For Employer Health Care Benefit,

select Box 12 for W-2 Box, and then

type DD for W-2 Code.


Manually Editing a W-2


2. Click Forms.

3. Under W-2 Setup and Edit, select

Edit Employee’s W-2 Information.

The employee’s W-2 form is displayed.

4. In Box 12, type DD. Then, to the right

of the box, type the dollar amount of the

benefit. For example:


EMPLOYEE ENTRY 45


Accums Tab The Payroll system updates data shown in

the Accums (i.e., Accumulations) screen

automatically when payroll is posted.

This is an informational window only; data

may not be entered or edited on this display.

Accumulations and Gross Accumulations are

tracked for the current month to date, by

quarter, and by fiscal and calendar years.

Use the Month and Year lookups to select

any period.

If you select a different Accumulations

period, click the ReCalculate button to

refresh your screen based and display

records based on the new period.

Accumulations are displayed for the

following items:

Gross Pay Social Security Withheld Medicare Withheld Federal Tax Withheld State Tax Withheld Local Tax Withheld Other Deductions Allowance Net Pay

Gross Accumulations, or the total taxable

income, are displayed for the

following items:

Social Security Gross Medicare Gross Federal Tax Gross State Tax Gross Local Tax Gross

46

Personal Tab

Click the Personal tab to enter the number

of paid time off, such as Vacation, Sick,

Personal, or Family, days the employee

Earns Per Payroll or for a lump sum

time for year. The system accumulates

earned time, records used time, and

calculates available time. It also lets you

write and store notes for each line item. See

pages 60 and 70 for instructions on logging

earned or used time.

Personal time can either be recorded in

hours or days for time earned and used. You

can choose which you would like to use, just

keep consistent between your employees.

You can record Personal Time in one of

two concepts:

Employee earns Personal time each

Pay Period

Employee receives Lump Sum Personal

Time at the beginning of the year

If Employee earns Personal Time each

Pay Period

If the Employee earns a fixed number of

hours or days each time a Payroll is

processed, click the Earn Per Payroll box.

The Amount Per Payroll field is visible

after the box is checked.

The Amount Per Payroll field is visible

only if the Earn Per Payroll box is

checked. Enter the number of hours or days

of personal time to be earned per pay cycle.

The Earned, Used and Available times remain at zero until a Payroll is processed. Click Submit to save.

EMPLOYEE ENTRY 47


If Employee earns Personal Time as a

Lump Sum amount at the beginning of

the year

Do not check the Earn per Payroll box.

Instead, enter the Date, Activity, Amount

and Notes in the data entry section, and

click Submit.

This automatically updates the Earned,

Used and Available times.

Limit Enter the maximum number of personal

time hours or days that the employee can

earn within a given calendar year.

Earned, Used and Available The system calculates the values in these

read-only fields automatically as hours or

days are entered manually as earned or used

personal time on this screen.

Delete a Personal Time Line Item

Click the X to remove any earned or used

personal time line item from an


Add a Personal Time Line Item

To record earned or used personal time,

select the applicable Personal Time

category. Enter the Date, choose either

Earn or Used from the Activity lookup,

enter the number of hours or days in the

Amount field, and record a Note if desired.

Click Submit to save. To add more line

items to an employee’s personal time record,

click the More Lines link, located in the

lower-left of your screen. See page 70

for details.

48

Direct Deposit Tab

Use the Direct Deposit tab to enter employee

information for direct deposit of paychecks

into a checking and/or savings account.

Direct Deposit Participation The system defaults to None. If the

employee wishes to set up direct deposit,

select the ACH File option.

If the employee would like their check

deposited electronically, click Direct

Deposit, click the ACH File button, and

specify the Account Number, Routing

Number, Account Type, Percent or

Amount distribution, and Prenote Date.

Click Submit to save. See page 79 for

instructions on prenoting for direct deposit.

Employees can choose to deposit fixed

amounts or fixed percentages of their pay

into one or more accounts. The system lets

you set up unlimited direct deposit accounts,

but we recommend you limit your

employees to two or three direct deposit

accounts to reduce administration for your

staff—establish the limit that works best for

your church. You may find it helpful to

request a voided check from each account

you are adding to the system for

direct deposit.

You must prenote an employee at least

10 days prior to his or her first direct deposit

and any time you make a change to the

employee’s account information. For more

information, see Prenote Employees for

Direct Deposit, page 79.

1. Choose to distribute to Accounts by

either Percent or Amount.

2. Enter the employee’s checking or

savings Account Number.

3. Enter the employee’s 9-digit

Routing Number.

4. Select either Checking or Savings

from the Account Type lookup.

5. Enter either the fixed dollar amount or

percentage to be deposited electronically

into the selected account.

For Percent distribution, the total

Percent value must equal 100.00.

For Amount distribution, the last bank

account in the list receives any balances

that remain due to rounding

percentages or a discrepancy between

the paycheck amount and the

distribution amount set in the


EMPLOYEE ENTRY 49


For example, you may have an hourly

employee who wants their pay

distributed $100 to Savings and the

remaining to checking. Set the

Distribute to Accounts to Amount and

enter the Savings account information in

Line 1 with the Amount, then enter the

Checking account in Line 2 and leave the

amount 0.00. The system sends $100 to

the employee’s Savings account and the

remainder to their Checking account.

6. Select the Date for the prenote. The

prenote date must be at least 10 days

prior to their first direct deposit and any

time you make a change to the

employee’s account information. If

using the Prenote File Upload, this date

is automatically populated.

Add a Direct Deposit Line Item

To set up an employee for direct deposit,

select the ACH File option, enter the

banking information, the percent or amount,

and prenote date. Click Submit to save.

Add More Lines

To add more line items to an employee’s

direct deposit record, click the More Lines

link, located in the lower-left of your screen.

Delete a Direct Deposit Line Item

Click the X to remove any direct deposit line

item from an employee’s record.

50

Paychecks Tab

The Paychecks screen displays each payroll

check issued to the selected employee with a

total paid for the selected year. This is an

information window only and cannot be

added or edited.

Display Year

Select the current year or any prior years in

your system and click the Display Year

button to change the records

currently displayed.

Date

Date of the payroll in which the check was

issued (i.e., date entered when you created

the New Payroll).

Number

Check number.

Amount

Net amount of the check.

Voided

If a payroll check was voided, the void date

displays here.

Cleared

The check clearing date displays here.

51

PROCESS PAYROLL

52

Process Payroll

Payroll Overview

Before processing your first payroll, you

must complete the initial system setup and

prenote any direct deposit employees using

the instructions beginning on page 79.

If your initial system setup is complete, the

ConnectNow Payroll system is ready to

guide you step-by-step through the payroll

process. You will create and process one

payroll “session” per pay date. An open

payroll session must be processed and

closed before you can create and process a

new payroll session.

This section contains procedures for the

following items:

1. Set Up Payroll

2. Select Employees

3. Edit Timecards

4. Calculate

5. Review

6. Edit Paychecks

7. Print Checks

8. Prepare and Send ACH File

9. Close Payroll

Payroll Progress Indicator

As you complete the steps of the payroll

process, the system highlights your

completed steps in yellow, the currently

selected step in green and uncompleted

steps in white. For example, in the following

screen, steps 1-3 are completed, and the user

is in the process of selecting employees

in step 4.

Editing an Existing Payroll

If you are modifying an existing payroll, you

do not need to click through steps that you

have already completed— you may click on

the step you need.

1. Click the Payroll Process icon.

2. Select your existing payroll from

the list.

3. Click on the step you wish to

complete, make your changes, and

click Submit to save.

PROCESS PAYROLL 53


Step #1 Setup Payroll

Use this procedure to create a new payroll

session or select an existing payroll

to process.

1. Click the Payroll Process icon.

2. If you are beginning a new payroll,

click Create a New Payroll. If you

are editing an existing payroll, select

it from the list.

3. The system automatically assigns a

payroll Number. Select the Bank

Account from which payroll

is withdrawn.

4. Enter a Check Date.

5. Enter a Description for your

payroll if desired.

6. Enter the Pay Period Begin and

Pay Period End dates. These dates

print in the Check Memo field on

your paycheck stubs, but can be

removed or edited when you print

your checks.

7. Click Submit. The system prompts

you to complete step 2, Select

Employees (see the following page

for instructions).

Requirement for Closed Payroll

The system requires that you close a prior

open payroll session before creating a new

payroll. For closing procedures, please see

page 68.

54

Step #2 Select

Employees

In step 2, you will select the employees

who should be included in this

payroll processing.

Employees may be selected from a complete

employee list or by Pay Group.

1. Select All Groups or choose a

particular Pay Group—active

employee names display based on

your Pay Group selection.

2. Check the boxes to select the

names of employees you wish to

include in this payroll processing.

Use the system’s Select All and

Deselect All options, along with

individual click selections, to choose

employees quickly from the list.

3. Click the Submit button to save

your selections and proceed to step

3, Edit Timecards (see the following

page for instructions).

If you need to add more employees to an

open payroll, begin at step 2) Select

Employees. Choose the names of the

individuals needing payroll checks and

proceed to steps 3–7 as usual. See

Recalculate Select Employees, page 57, for

more information.

PROCESS PAYROLL 55


Step #3 Edit Timecards

The information you’ve entered on the

Employee Entry displays automatically

transfer into the Timecard entry. In step 3,

you will edit the timecard for each hourly

employee selected in step 2 and verify the

amount each employee is to be paid. You

may add, remove or edit Pay Items on the

employee timecards as needed.

1. Click on the employee name to view

each timecard. The system displays the

selected employee’s name and pay

information as it was entered into the Pay

Data tab on the Employee

Information screen.

2. For employees paid an hourly or unit rate,

enter the number of hours or units for the

pay period. For salaried employees, the Pay

Period Amount can be edited if needed—

just click and type. Pay amounts are

automatically recalculated. Permanent

changes to employee Pay Items need to be

made to the Pay Data tab in the

employee record.

3. To add a Pay Item, click into the Pay

Description lookup, select an item, enter

the Hours/Units and Rate or the Pay

Period Amount, and select an Account.

4. The Check Sequence (i.e., abbreviated

“Chk Seq” on your screen) denotes whether

the items print on 1 check or separate

checks. Edit as desired. Permanent changes

to the Default Check Sequence of a Pay Item

must be made in the Pay Item Information

screen—see page 21 for more information.

5. Click the Submit button to save the

employee’s timecard.

6. Select the next employee name and repeat

steps 2–5 as appropriate.

7. When finished editing timecards, proceed to

step 4, Calculate, on page 57.

If you do not have Hourly Employees,

and only have Salaried Employees, you

can skip this step.

56

Reset a Timecard

The Reset button restores the selected

employee’s timecard to its default settings,

abandoning any changes that you have made

to the employee’s Time Card settings.

Delete Pay Items from a Timecard

To remove an individual Pay Item from a

timecard, click the red X button to the left of

the Pay Description.

Delete a Timecard

The Delete button removes an employee’s

timecard record from your current payroll.

The employee’s Pay Data remains in the

Payroll system and can be selected again for

the current or for a future payroll cycle.

PROCESS PAYROLL 57


Step #4 Calculate

During the Calculate process, the system

does the following:

Checks to ensure that each deduction

and benefit within the gross pay

accounts used in this payroll have an

Account Distribution established. You

will be notified and required to correct

any blank distributions before you can

process your current payroll.

Calculates payroll earnings, taxes,

benefits and deductions for

selected employees.

Updates payroll reports and

accumulated pay information for

selected employees in the Employee

Information screen.

Click the Calculate Payroll button to run

the system calculation. Or, click the

Calculation Options button to select the

specific deductions and benefits to include

in the calculation for bonus checks (see the

Calculation Options for Bonus Checks

section on the next page). Then, return and

click the Calculate Payroll button. If the

system calculates 100% with no errors, click

5) Review to examine your payroll data

(see Review, page 59, for instructions).

Fixing Errors

If the system detects errors, you will receive

a message identifying the specific issue and

a remedy for the issue.

Account

Distribution

errors are easily

corrected under

Setup >

Account

Distribution.

See Enter Account Distributions on page 26

for more information.

After any errors are fixed, repeat the

Calculate Payroll step. Review, edit and

complete your payroll process as usual.

Recalculate Select Employees

The system recalculates payroll for selected

employees with unprinted paychecks and

checks without assigned check numbers.

Deselecting an employee, if no check

number is assigned, results in the employee

not being paid in the current payroll.

Click 2) Select Employees, check the

name of the employee, click 3) Edit

Timecard and make the necessary change,

and click 4) Calculate. Review, edit and

print as usual.

58

Calculation Options for Bonus

Checks The Calculation Options page allows you to select specific deductions and benefits to include in the calculation for bonus checks. For example, for bonus checks you may want to only withhold and calculate Social Security and Medicare but no other deductions or benefits. Removing a deduction does not withhold the deduction from the current calculation and removing a benefit does not calculate the benefit for the current calculation. Click the check marks in the Include column to remove the deductions and benefits from the current calculation. Click the Submit button to save your changes and return to the Calculate tab.

PROCESS PAYROLL 59


Step #5 Review

After the Calculate process is 100% complete

and error-free, click 5) Review to display a

preview of that data that prints on your

employee paychecks. Ensure paychecks are

correct before you print checks and submit

ACH data for direct deposit.

Check data displays in alphabetical order by

employee last name. Scroll down as needed

to review each check.

If changes are needed to deductions or

benefits, proceed to step 6 Edit Paychecks

(see page 60 for instructions).

If all checks are correct, you may print

checks and create your direct deposit ACH

File using the buttons at the bottom of the

screen. For instructions on printing checks,

see page 62; for instructions on creating an

ACH File for direct deposit, see page 65.

If all of the checks on Step #5

Review Checks are correct and

you do not need to make any

changes to the checks, you can

skip Step #6 Edit Paychecks.

60

Step #6 Edit Paychecks

Use the Check Information screen to add,

edit, or delete a benefit or deduction line

item to a paycheck that has not been

printed, or to void a check that you have

already printed.

If you add, change or delete a pre-tax

deduction or benefit, you must manually

recalculate the taxes and update this display.

Edit a Benefit or Deduction Item

Employee names are listed in the

Employees box on the left side of your

screen. You may edit checks one at a time by

completing the following steps.

1. Select the employee name from the

Employees paycheck list to display the

Check Information.

2. To edit a deduction or benefit amount, click

into the Pay Period Amount field

and edit.

3. To remove a deduction

or benefit line item, click

the red X to the left

of the item’s description.

4. Click the Submit button

to recalculate the

paycheck Amount.

5. Proceed to step 7, Print

Checks, on page 62.

Calculate Overrides Edit

Paychecks

The Calculate process overwrites any

changes made on the Check

Information screen.

Edit Wages

Edits to wages are not permitted from the

Edit Paychecks screen—if you discover that

the employee’s wage is incorrect, click 2)

Select Employees, check the name of the

employee, click 3) Edit Timecard and

make the necessary change, and

click 4) Calculate.

PROCESS PAYROLL 61


Delete a Paycheck Paychecks that have not been printed may be deleted.

1. Select the payroll containing the check.

2. Click 6) Edit Paychecks.

3. Select the employee name from the Employees paycheck list to display the Check Information.

4. Click the Delete button, located at the bottom of the screen.

5. If you need to issue a new paycheck, recalculate the payroll for the selected employee. See Calculate Selected Employees on page 57 for instructions.

Void a Paycheck

You can void a check or ACH

transmission directly from the

Check Information screen using

the following steps.

1. Select the payroll containing

the check.

2. Click 6) Edit Paychecks.

3. Select the employee name

from the Employees paycheck

list to display the

Check Information.

4. Click the Void Check button,

located at the bottom of

the screen.

5. Enter the Void Date and click the

Void button.

The Check Information now displays the

check marked as Void.

6. The system creates an automatic journal

entry in the Ledger and Payables system that

reverses the paycheck.

7. If you need to issue a new paycheck,

recalculate the payroll for the selected

employee. See Calculate Selected Employees

on page 57 for instructions.

62

Step #7 Print Checks

When your checks are ready to be printed

onto check forms, use the following steps to

process paychecks.

1. If you are currently on the step 5) Review

screen, click the Print Checks button;

otherwise, click the step 7) Print Checks

link on your Payroll screen.

2. The Check Selection screen displays your

Beginning Check Number and only those

employees who will receive a check.

Employees who are paid by Direct Deposit

are be listed in Step #8. Click the

Submit button.

3. On the Print Checks screen, select the Bank

Account from which your payroll will be

withdrawn and click the Print

Selected button.

NOTE: If you need to change a

check number, you can click into

the Number field on this display

and edit the check numbers listed.

NOTE: By default, the Check

Memo field displays the pay period

dates. You can click into the field

and edit the information that prints

on your checks.

PROCESS PAYROLL 63


4. An Adobe Reader pop up window displays

with your check information. Click the Print

icon <Ctrl + P> on the Adobe Reader display

to send the check information to your

printer. Close the Adobe Reader window.

5. Go to the printer and ensure all of your

checks printed correctly.

a. If all checks printed correctly, choose

“Yes, I clicked the Print icon and

Check(s) printed correctly” and

click Submit.

b. If some of the checks printed correctly

and some did not (ran out of ink, paper

jam, etc.) choose the option “Some

checks did not print correctly.

First incorrect printed on check:”

and select the check number and click

Submit.

The system takes you back to the Print

Checks window allowing you to change

check numbers, if needed, and reprint

the checks.

c. If the printer did not print any checks

(wrong printer selected, forgot to put

checks in printer, printer problems,

etc.), choose the option “I didn’t

print any checks” and click Submit.

The system takes you back to the Print

Checks window allowing you to change

check numbers, if needed, and reprint

the checks.

NOTE: You may receive a notice that pop-ups

are blocked for this site. You must always

allow pop ups for this site to print checks.

In Internet Explorer, right-click the yellow bar for more options and choose the “Always Allow Pop-ups from This Site”. In Firefox, click the Options button on the right and choose “Allow pop-ups for diocesename.connectnowaccounting.com”.

64

Manage Check Numbers

Check numbers are very important in

tracking and issuing paychecks, and the

ConnectNow Church Accounting system

tracks those check numbers by bank

account. When processing payroll, the

system automatically assigns the next

sequential check number to the first

paycheck in a given payroll cycle.

The Beginning Check Number field can

be edited if necessary in step 7) Print

Checks (e.g., if you need to record a

manually written paycheck).

For security purposes, after a check number

is issued, it cannot be used again; and

payroll checks cannot be reprinted.

The Close Payroll process cannot be run

until check numbers are assigned to all

paychecks in the current payroll.

PROCESS PAYROLL 65


Step #8 ACH File

Before you can process direct deposit

payments using an ACH File, the following

items must be completed:

ACH Info entered into the Payroll

system as part of the Enter Employer

Information setup (see page 17)

Employee direct deposit account

information is entered into the Payroll

system and prenoted at least 10 days

prior to direct deposit

Payroll calculated and reviewed

for accuracy

After these items are complete, prepare an

ACH File for direct deposit using the

following steps.

1. Click 8) ACH File.

2. Select the names of employees to receive

direct deposits of their paychecks and

click Submit.

3. Your Bank Account selection and

Current Balance display at the top of the

ACH File screen. Check the Include debit

in file for the bank account box to

include extra line in the ACH file that

includes the church’s bank account number

and total debit amount. Consult your bank

to see if they require this field.

4. Click the Print Receipts button to print

one file containing individual paycheck

receipts for each employee (see ACH

Receipts on page 67 for an example).

5. Click the Create File button to open a print

preview of your direct deposit data file.

a. To print a report of your ACH file data,

click the Printer icon. You may also

print a report of your file data from

Notepad—see step 6a below.

66

6. Save your file as a .txt file by clicking

the Save button . The open and save

options may vary depending on the browser.

Internet Explorer prompts you to open or

save the file to a location that you select.

Firefox saves the file to your desktop.

7. Your ACH direct deposit data file is now

ready to be uploaded to your bank’s direct

deposit application.

PROCESS PAYROLL 67


Print ACH Receipts

The Payroll system provides ACH direct

deposit remittance advices that you can

print on plain 8 ½ x 11 copy paper rather

than on expensive check forms.

Payroll’s ACH

Receipts are

formatted to

include current

period and

accumulated

wages, benefits,

deductions, and

personal time.

Your return

address and the

employee’s

mailing address

are positioned on

the report to fit

into a window

envelope.

68

Step #9 Close Payroll

Use the Close Payroll process to post all

payroll data to the Ledger and Payables and

Payroll systems. After posting is complete,

all reports and accumulations reflect the

latest posted amounts, and you are

permitted to Create a New Payroll session

with a different pay date.

Paychecks cannot be edited after check

numbers are assigned and the payroll is

closed, and you cannot begin a new payroll

cycle until the prior payroll is closed.

Payroll can be closed at any time after

checks are printed and your ACH Direct

Deposit file is created. For your convenience,

the main Payroll “Dashboard” displays Next

Step: Close Payroll to inform

you that payroll is ready to

be closed.

Complete the following steps to

close payroll.

1. Click on Close Payroll–

links are available from

your dashboard and from

step 9 of the payroll process.

2. Click the Submit button.

3. Click OK on the popup.

4. The system closes your selected

Payroll and return you to the main

Payroll Process screen. Your payroll

now shows as “Closed.”

69

OPTIONAL SETUP

70

Start-Up Employee Totals If your church did not opt for a comprehensive conversion, and are starting to use ConnectNow Payroll in a month other than January, you can enter the Start-Up Employee Totals to record payrolls for the calendar year paid from another source. The data you enter in Start-Up Employee Totals are added to the payrolls you process in ConnectNow Payroll and will correct Calendar Year To Date Totals on the employee’s paycheck stub as well as report the entire year payments on the 941 and W-2. You may choose to process W-2’s mid-year in your previous application to calculate the amounts to enter in Start-Up Employee Totals.

1. Click Setup and choose Start-Up Employee Totals under Optional Setup.

2. Enter the appropriate date in Calendar year totals for all employees as of: field.

3. Select each Employee’s name from the Employee’s list on the left.

OPTIONAL SETUP 71


Enter Start-Up Employee Gross

Wages

Enter the Start-Up Gross Wages for the employee.

a. Taxable – Enter the Total Gross Taxable Wages for the Employee for each Pay Item Type defined on the Employee’s Pay Data tab. Pay Items indicating Allowances are not entered in this field.

b. Non-Taxable – Enter the Non-Taxable Gross Wages for each Allowance, Reimbursement or any other non-taxable Pay Item. These items may report in Box 14 of the W-2.

c. Soc Sec – Enter the Gross Social Security Wages for each Taxable Pay Item. This number reports in Box 3 of the W-2.

d. Medicare – Enter the Gross Medicare Wages for each Taxable Pay Item. . This number reports in Box 5 of the W-2.

e. Federal – Enter the Gross Federal Wages for each Taxable Pay Item. This number reports in Box 1 of the W-2.

f. State – Enter the Gross State Wages for each Taxable Pay Item. This number reports in Box 16 of the W-2

If you have any pre-tax deductions or

benefits the Social Security, Medicare,

Federal and State Gross Wages

numbers may be different from the

Taxable Gross Wages.

72

Enter Start-Up Deductions/Benefits

1. Enter the Start-Up Deductions and Benefits

for each employee. a) Benefit Social Security Employer –

Enter the total amount of Social Security Taxes the church paid for the employee.

b) Deduction Social Security Withheld – Enter the total amount of Social Security Taxes withheld from the employee’s check. Box 4 on the W-2.

c) Benefit Medicare Employer - Enter the total amount of Medicare Taxes the church paid for the employee.

d) Deduction Medicare Withheld - Enter the total amount of Medicare Taxes withheld from the employee’s check. Box 6 on the W-2.

e) Deduction Federal - Enter the total amount of Federal Taxes withheld from the employee’s check. Box 2 on the W-2.

f) Deduction State - Enter the total amount of State Taxes withheld from the employee’s check. Box 17 on the W-2.

g) Deduction Local - Enter the total amount of Local Taxes withheld from the employee’s check. Box 19 on the W-2.

h) User Defined Deductions/Benefits – If you have set up additional Deductions or Benefits (see page 23) and added them to the employee (see page 42) they are also be listed on the Start-Up Deduction/Benefit display. Enter the totals for each additional Deduction/Benefit for the employee.

2. Click Submit to save your changes.

OPTIONAL SETUP 73


Job Category You can create job categories such as Administration, Clergy, and Maintenance and associate each employee with those job categories to allow for easy reporting on Accumulations and Taxable Pay & Withheld.


2. Click Job Category.

3. Type a unique Description for the job category.

4. Click Submit. Job Categories that you enter into your system are available from the Quick Find lookup and from any Job Category lookup available on your Employee entry display.

To delete a Job Category, locate it in the Quick Find list, click Find Item, and click the Delete button.

74

Personal Time

The Payroll system tracks user defined

categories of Personal Time for each

employee, such as:

Family

Personal

Sick

Vacation

You can enter time earned and time used

within each category defined, and these

totals are reflected on your employees’ pay

item details.

Setup Personal Time You can customize the concepts for Personal Time


2. Click Personal Time.

3. Type a unique Description for the personal time.

4. Click Submit.

Personal Time that you enter into your system is available from the Quick Find lookup and on the Employee entry display.

To delete a Personal Time code, locate it in the Quick Find list, click Find Item, and click the Delete button.

Record Personal Time Click the Personal tab to enter the number of paid time off, such as Vacation, Sick, Personal, or Family, days the employee Earns Per Payroll or for a lump sum time for year. The system accumulates earned time, records used time, and calculates available time. It also lets you write and store notes for each line item. Personal time can either be recorded in hours or days for time earned and used. You can choose which you prefer, just keep consistent between your employees. You can record Personal Time in one of two concepts:

Employee earns Personal time each Pay Period

Employee receives Lump Sum Personal Time at the beginning of the year

OPTIONAL SETUP 75


If Employee earns Personal Time each

Pay Period

If the Employee earns a fixed number of hours or days each time a Payroll is processed, click the Earn Per Payroll box. The Amount Per Payroll field is visible after the box is checked. The Amount Per Payroll field is visible only if the Earn Per Payroll box is checked. Enter the number of hours or days of personal time to be earned per pay cycle. The Earned, Used and Available times remains at zero until a Payroll is processed. Click Submit to save.

76

If Employee earns Personal Time as a

Lump Sum amount at the beginning of

the year

Do not check the Earn per Payroll box. Instead, enter the Date, Activity, Amount and Notes in the data entry section, and click Submit. This automatically updates the Earned, Used and Available times. Limit Enter the maximum number of personal time hours or days that the employee can earn within a given calendar year. Earned, Used and Available The system calculates the values in these read-only fields automatically as hours or days are entered manually as earned or used personal time on this screen.

Delete a Personal Time Line Item Click the X to remove any earned or used personal time line item from an employee’s record.

Record Personal Time

If using Earned Per Payroll, the system automatically inserts the Line Item for the Date and Amount Earned on the Employee’s Personal Tab each Paycycle. To record additionally earned or used personal time, select the applicable Personal Time category. Enter the Date, choose either Earn or Used from the Activity lookup, enter the number of hours or days in the Amount field, and record a Note if desired. Click Submit to save. To add more line items to an employee’s personal time record, click the More Lines link, located in the lower-left of your screen. See page 70 for details.

OPTIONAL SETUP 77


End-of-Year Personal Time

Processing

Some churches allow their Employee’s Personal Time to carry forward each year and accumulate; while other churches wish to reset their Employee’s Personal Time to a fixed number of hours. You may also choose to clear the activity that you entered on the Employee’s Personal Tab. ConnectNow Payroll helps you process Personal Time at the end of the year for your employees. You can choose to:

Clear out all activity and retain available time as new earned.

Completely clear out all used and earned activity.

Clear all activity and apply a fixed number of hours as available

Retain all activity but adjust available time to a fixed number of hours as new available time.

You can select on a date range, paygroups, and individual employees and run the process multiple times for differing paygroups or employees (e.g. if hourly personal time should be handled differently than salary personal time).


2. Click Personal Time.

3. Click the down arrow at Quick Find and choose the Personal Time code you’d like to process, click Find Item.

4. Select the Processing Option that’s most appropriate for your church (see page 78 for Processing Option Definitions).

5. Enter the Date Range of the Activity to Process.

6. Make a selection on Paygroups

if needed.

7. Make a selection on Employees if needed.

8. Click Submit to process.

9.

78

Clear out all activity and retain

available time as new earned

Use this option if you want to clear out

the activity that you entered on the

Employee’s Personal tab, recording

earned and used by date, but keep the

available time as new earned. You can

choose to limit the maximum to a fixed

number of hours.

Completely clear all used and earned

activity. Zero available.

Use this option if you want to start from

scratch year to year! This clears out all

earned and used activity and set the

available time to zero.

This option is generally used when the

Earn Per Payroll option is checked on

the Employee’s Personal Tab.

Clear out activity and apply a fixed

number of hours as new

hours available

Use this option if you want to clear out

the earned and used activity for each

employee, and reset their available time

to a fixed number of hours.


Earn Per Payroll option is not checked

on the Employee’s Personal Tab.

Retain all activity but adjust available

time to a fixed number of hours as the

new available time

Use this option if you prefer to keep all

of the earned and used activity on the

Employee’s Personal Tab, but reset their

available time to a fixed number

of hours.


Earn Per Payroll option is not checked

on the Employee’s Personal Tab.

Available Time

Earn Per Payroll

Option

Earned and

Used Activity

OPTIONAL SETUP 79


PreNote Employees

For Churches who upload the ACH file for

Direct Deposits to a banking organization,

you must prenote an employee at least

10 days prior to her first direct deposit and

any time you make a change to the

employee’s account information.

The PreNote file contains all of the

information in a standard Direct Deposit

ACH file except for the amount to pay. This

file ensures that all of the Employer’s and

Employee’s Bank Account and Routing

Numbers are entered properly.

The bank uses this file to ping the

Employee’s bank account. If any

information was entered improperly, the

bank will contact you.


2. Click PreNote Employees.

3. Make a selection on Paygroups if needed.

4. Select the Employees you wish to include in the PreNote File.

5. Click the Create File button.

6. Save your file as a .txt file by clicking the

Save button . The open and save options

may vary depending on the browser.

Internet Explorer prompts you to open or

save the file to a location that you select.

Firefox saves the file to your desktop.

7. Your ACH direct deposit prenote file is now

ready to be uploaded to your bank’s direct

deposit application.

80

Local Tax Setup

Employees who live in certain regions may have a concept of a Local Tax. You can create and set the Local Tax as needed 1. Click the Setup button.

2. Click Local Tax Setup.

3. Type the Locality for the job category.

4. Enter the Calendar Year Withheld Limit. After the Employee reaches the Calendar Year Withheld Limit, the system automatically suspends future withholdings for the calendar year.

5. Enter the Percentage of Gross Pay.

6. Click Submit. Local Taxes that you enter into your system are available on the Local Tax lookup on the Employee’s Tax Data Tab.

81


END OF YEAR REPORTING

82

W-2/W-3 You can print W-2’s and W-3’s directly from ConnectNow Payroll for each of your employees. W-2’s and W-3’s can be printed either on W-2/W-3 preprinted forms or on IRS approved blank paper, both of which can be purchased at www.ParishSoftForms.com W-2 information is stored in the W-2/W-3 Report window allowing for quick and easy reprinting of lost W-2’s for the year. You must complete each of the following steps to properly process W-2’s each year.

1. Setup W-2’s (see page 83)

2. Reprocess W-2’s/Edit Employee’s W-2 Information/ (see page 87)

3. Print W-2 Review Report (see page 88)

4. Print W-2’s (see page 88)

5. Electronic Filing W-2’s (see page 99 )

Employer – ParishSOFT

Responsibilities It is each employer's responsibility to determine which payments to employees are taxable and which deductions and benefits are assigned to the categories required on the W-2 statements. Each deduction and benefit you have should be reviewed for the tax consequences and proper reporting on the W-2 forms. The Payroll system prints W-2 and W-3 statements. It does not print any other statements you may be required to prepare. ParishSOFT support personnel are not licensed accountants, tax consultants, or law advisors. Please contact qualified parties for detailed or specialized tax or law information. ParishSOFT shall have no liability or responsibility to purchaser or any other person or entity with respect to any liability, loss, or damage caused or alleged to be caused directly or indirectly by this software, including but not limited to any interruption of service, loss of business or

anticipatory profits, or consequential damages resulting from the use of this software. ParishSOFT is not liable for any IRS penalties for which you may be assessed. This document explains what data the Payroll program requires to print W-2 and W-3 statements and explains what steps you should take to prepare for the printing of W-2 and W-3 statements in your ConnectNow Payroll system. This Payroll User’s Guide for W-2 and W-3 Tax Statement assumes you are using the ConnectNow Payroll System in the printing of W-2 and W-3 Statements using tax forms available at www.ParishSoftForms.com. The information in this manual is based on current instructions in The Department of Treasury, Internal Revenue Service documents "Instructions for Forms W-2 and W-2P", which is updated each calendar year, for filling out the W-2 and W-3 Forms and is subject to change as tax laws and procedures change.


END OF YEAR REPORTING 83


W-2 Setup Prior to printing W-2’s, you must first designate the deductions and benefits which should print in boxes 10-14 on the W-2.

1. Click Forms and choose Setup W-2 under Optional Setup.

2. Select the appropriate box where you want the pre-tax deductions and/or benefits to appear from the W-2 Box from the lookup window. See pages 84 and 85 for more information.

3. Enter the appropriate code in the W-2 Code field.

4. Non-Taxable Pay Item types may report in Box 14 of the W-2. Check the box at Print in W-2 Box 14 for those Non-Taxable pay item types you want to report in Box 14 (e.g. Housing Allowance)

5. Enter the three digit code you want to print in Box 14 in W-2 Box 14 Code (e.g. HOU). See page 86for more information.


84

Box 10 Dependent Care

If you have a benefit for dependent care which falls under IRS §129, enter the code on this window. Normally, only benefit codes are entered on this window. In the case where a Cafeteria Plan is being run as a deduction, dependent care deduction codes may be entered on this window so the system may print the calendar year amount in Box 10 on the W-2 for participating employees. Be sure the amount of dependent care over $5,000 is also included in Box 1, 3, and 5 of the W-2. Alternately, if only reporting a few employees, you may directly enter the amount to be reported in Box 10 on the Edit W-2 window after preparing the W-2s (see Edit W-2 on page 87).

Box 11 Non-Qualified Plans

This window allows you to enter benefit codes you used to accumulate amounts of non-qualified deferred compensation benefits. Please note that this procedure is intended for an Eligible §457(b) and fully employer vested Non-Qualified Deferred Compensation plans only. Should you have a plan that is not either of the above, please contact a qualified tax accountant for assistance for filing a proper W-2 report. Be sure the amount of the benefit is also included in Box 1 of the W-2. Alternately, if only reporting a few employees, you may directly enter the amount to be reported in Box 11 on the Edit W-2 window after preparing the W-2s (See Edit W-2 on page 87).



Box 12 403(b), Taxable Life Insurance, or

other codes

Report life insurance benefit costs for over $50,000 in coverage and deferred compensation deductions on this window.

Use the follow codes for reporting amounts in Box 12.

Code Description Additional

C

Taxable benefit of group term-life

insurance over $50,000. The Calendar

Year amount for the code on the Ded/Ben

tab on the Employee window for the

employee must be the cost of the coverage

over $50,000.

Be sure the amount is added

to the Taxable Wages in

Boxes 1, 3, and 5 (See Edit

W-2 on page 87).

D Non-taxable elective salary deferrals to a

401(k) or SIMPLE 401(k) retirement plan.

E

Non-taxable elective salary deferrals to a

403(b) retirement plan. This amount of

deferred compensation is not included

in Box 1.

F


408(k)(6) SEP retirement plan. This

amount of deferred compensation is not

included in Box 1.

G

Non-taxable elective salary deferrals and

non-elective employer contributions to a

457(b) retirement plan. This amount of


in Box 1.

H


501(c)(18)(D) tax-exempt plan. This

amount of deferred compensation is not

included in Box 1.

R

Used to report employer contributions to a

Medical Savings Account (MSA) benefit

code. The effect of this kind of deduction

varies from plan to plan. Depending on the

specific plan you have, this same amount

may need to be also included in boxes 1

and/or 3, and/or 5, and/or 16 on the W-2.

Edit these amounts on the

Edit W-2 window (See Edit

W-2 on page 87).

86

Code Description Additional

S

Non-taxable salary deferral to a 408(p)

SIMPLE retirement plan. This amount of


in Box 1.

T

Employer paid adoption benefits. This

amount is not included in Box 1 wages.

You must use IRS Form 8839 to calculate

the taxable and non-taxable portion of

these adoption benefits.

Like code R above, the

reporting of this benefit as

wages varies from plan to

plan. If needed, edit the

wage amounts on the Edit

W-2 window (see page 87).

AA After-tax contributions to a Roth 401(k)

retirement plan.

BB After-tax contributions to a Roth 403(b)

retirement plan.

CC

Report the employee’s amount of HIRE

exempt wages for 2010. Use the Edit W-2

window to enter the code and

wage amount.

DD

Report the aggregate cost of the applicable

employer-sponsored health insurance

coverage (optional in 2010 and 2011,

mandatory in 2012).

If only reporting a few

employees, you may

directly enter the codes and

amounts to be reported in

Box 12 on the Edit W-2

window after preparing the

W-2s (See Edit W-2 on

page 87).

Box 14 Allowances

Box 14 on the W-2 is for your own use to report information to employees. The Social Security Administration and the IRS ignore this box. The calendar year amounts of the codes, deductions or benefits you enter on this window are printed in Box 14 of the W-2 statement. A three-letter code may be printed to denote the printed amount. Also, if only reporting a few employees, you may directly enter the codes and amounts to be reported in Box 14 on the Edit W-2 window after preparing the W-2s (See Edit W-2 on page 87).



Reprocess/Edit Employee’s W-2

Information

1. Click Forms and choose Edit Employee’s W-2 Information under W-2 Setup and Edit.

2. Select the Calendar Year from the lookup and click Show Year.

3. To insert that year’s information, click the Reprocess All button. This gathers the information entered in the system for that year and refresh the display.

4. If you need to manually adjust an Employee’s W-2, select the Employee’s name from the list on the left.

5. Click into any field to make manual adjustments to the W-2 if needed (e.g. adjust for Taxable Life Insurance over $50,000). You may not enter into fields grayed out; see

Enter Employer Information on page 17 and Tax Data Tab on page 36 to adjust if needed.

6. Click Reprocess to save your changes.

You must click the Reprocess All button to

refresh the W-2 information before making

any manual changes to the W-2.

If you click the Reprocess All button after

making manual changes, the system replaces

the W-2 back to its original data and you will

lose your manually entered changes.

88

W-2 Boxes – where is the information

located in ConnectNow Payroll?

Box Name Where in ConnectNow Payroll?

A Employee’s Social Security

Number

Employees > Tax Data Tab

B Employer EIN Setup > Employer Info > Federal Tax ID

C Employer Name & Address Setup > Employer Info

D Control Number Assigned by the system

E Employee Name Employees > General Tab

F Employee’s Address Employees > General Tab

Suff. Employee’s Suffix (Jr., Sr.,

etc.)

Employees > General Tab

1 Wages, tips, other

compensation

Employees > Accums Tab > Federal Tax Gross

in Calendar Year column

2 Federal Income Tax Employees > Accums Tab > Federal Tax

Withheld in Calendar Year Column

3 Social Security Wages Employees > Accums Tab > Social Security Tax

Gross in Calendar Year column

4 Social Security Withheld Employees > Accums Tab > Social Security Tax

Withheld in Calendar Year column

5 Medicare Wages Employees > Accums Tab > Medicare Tax

Gross in Calendar Year column

6 Medicare Withheld Employees > Accums Tab > Medicare Tax

Withheld in Calendar Year column

7

Social Security Tips Not available in ConnectNow Payroll; may be

edited on Edit Employee’s W-2

Information display.

8

Allocated Tips Not available in ConnectNow Payroll; may be



9

Advance EIC Payment Not available in ConnectNow Payroll; may be



10 Dependent Care Setup > Setup W-2’s

11 Nonqualified Plans Setup > Setup W-2’s

12 403(b), Taxable Life

Insurance, other

Setup > Setup W-2’s



Box Name Where in ConnectNow Payroll?

13

Statutory Employee

Retirement Plan

Third Party Sick

Not available in ConnectNow Payroll; may be



If employee has a deduction or benefits that has

a category of “Retirement” or “Retire and

Tax Deferred”.

Not available in ConnectNow Payroll; may be


Information display

14 Other Setup > Setup W-2’s

15 State Employees > Tax Data Tab > Applicable State

15 Employer’s State ID Setup > Employer Info > State ID

16 State Wages, tips, etc. Employees > Accums Tab > State Tax Gross in

Calendar Year column

17 State Income Tax Employees > Accums Tab > State Tax Withheld


18 Local Wages, tips, etc. Employees > Accums Tab > Local Tax Gross in

Calendar Year column

19 Local Income Tax Employees > Accums Tab > Local Tax Withheld


20 Locality Name Employees > Tax Data Tab > Locality

90

Print W-2 Review Before printing the W-2’s, ParishSOFT recommends that you print the W-2 Review report to examine the information that prints on the W-2’s.

1. Click Forms > W-2’s/W-3.

2. Select the Calendar Year from the lookup. The system will default to the current calendar year.

3. Select Paygroups as needed. The default is

to include all Paygroups.

4. Select Employees as needed. The default is to include all Employees.

5. Choose W-2 Review from the Form Name options.

6. Click Preview Report. Review this report for accuracy. If you find that you need to make changes to an Employee’s W-2, see page 87. If the W-2 Review report looks accurate, you can continue with printing your W-2’s.



Print W-2’s/W-3’s After you have Setup W-2’s, Reprocessed/Edit Employee’s W-2 Information, and have examined the W-2 Review Report, you can now print the W-2’s. W-2’s can be printed on pre-printed or perforated blank forms. Forms are available at www.ParishSoftForms.com. NOTE: If you must file more than 249 employee’s W-2’s, you must file them electronically (see page 98).

1. Click Forms > W-2’s/W-3.

2. Select the Calendar Year from the lookup. The system defaults to the current calendar year.

3. Select Paygroups as needed. The default is to include all Paygroups.

4. Select Employees as needed. The default is to include all Employees.

5. Choose the appropriate W-2/W-3 form from the Form Name options (see page 92 for W-2 Form Examples).

6. Click Preview Report.

7. Load your printer with the W-2 forms and print just the first W-2 page to your printer. If you need to make any form adjustments, you can do so on the W-2/W-3 Report Selection Display. NOTE: Adjustments are made in 1/100 of inch increments. To move ¼ inch, enter 25, to move ½ inch, enter 50, to move 1 inch enter 100.

8. After you have the W-2’ forms lined up correctly with your printer, print the remaining W-2’s to your printer.

The IRS produces new W-2/W-3

forms each year and generally not

available until the last few months of

the calendar year. If you are

attempting to print a W-2 mid-year in

the current year and receive an error

message, the forms may not be

available from the IRS.


92

W-2/W-3 Examples W-2 Copy A, 2-Up Blank Paper (Employer’s Social Security Administration Copy)



W-2 Copy D, 2-Up Blank Paper (Employer’s Copy)

94

W-2 Copy 1, 2-Up Blank Paper (Employer’s State, City, Local Copy)



W-2 Employee Copies B&C, 4-Up Blank Paper (Employee’s Copy)

96

W-2 2-Up Pre-Printed (Printed on preprinted forms found at www.ParishSoftForms.com)



W-3 Blank Paper

98

W-3 Preprinted (Printed on preprinted forms found at www.ParishSoftForms.com)



W-2 Electronic Filing

After you have Setup W-2’s,

Reprocessed/Edit Employee’s W-2

Information, and have examined the W-2

Review Report, you can now choose to

file your W-2’s Electronically

(charges apply).

NOTE: If you must file more than 249

employee’s W-2’s, you must file them

electronically. Some States also require

electronic filing, check with your State

for their filing requirements.

1. Click Forms > W-2

Electronic Filing.

2. Select the Calendar Year from the

lookup. The system defaults to the

current calendar year.

3. Select Paygroups as needed. The

default is to include all Paygroups.

4. Select Employees as needed. The

default is to include all Employees.

5. Click Transmit W-2’s; you are

re-directed to the Nelco/ParishSOFT

Electronic Filing page.

6. Click Filing Information at the top and

review the information About your Data,

Filing Instructions, and Pricing

Information. Charges reflected in the

W-2 Service box are per employee.

7. Click Dashboard. If this is your first

year filing electronic W-2’s in

ConnectNow Payroll, click the Create

Account link and create an account for

your church.

NOTE: If you create an account, enter

the Username and Password and skip to

step 11.

8. Enter and confirm your email address and

password and click Step 2.

NOTE: Passwords must be between 8 and

30 characters.

9. Enter the required information on the

User Information window, including

your Name, Company/Church Name,

Address and Phone information.

Click Step 3.

10. Confirm the User Information entered

and click Yes, I want to start filling

out forms.

100

11. In the Services box, select from the e-

filing offerings, and note the options

selected next to each employee’s name:

a. Package 1 includes Federal and State

E-filing and will print and mail each

employee their W-2.

The church will only have to print

the Employer’s copy for their

records from ConnectNow Payroll.

b. Package 2 includes Federal E-filing

and will print and mail each

employee their W-2.

The church will have to submit to the

State on paper and print only the

Employer’s copy for their records

from ConnectNow Payroll.

c. Federal E-filing includes only E-

filing to the Federal Government.


State on Paper and print and

distribute the Employee’s W-2 and

print the Employer’s copy for

their records.

d. State Filing includes only E-filing to

the State.


Federal Government on Paper and

print and distribute the Employee’s

W-2 and print the Employer’s copy

for their records.

e. Recipient Mailing includes only the

employee’s W-2’s printed and

mailed to each employee.


Federal and State on Paper and print

the Employer’s copy for

their records.

12. Select the Employees by clicking the

checkbox next to the

affected Employees.

13. Click Next.

14. At the Checkout window, you can

choose to print a Summary Report or

Detail Report for your records.



15. You can also choose to remove an

Employee should you have selected an

employee in error.

16. Review the total charges and click Next.

17. Enter the Credit Card information and

click Next.

18. Review the Credit Card information

provided and edit the cart if needed.

Click the checkbox at the Affidavit and

click Confirm and Submit.

19. You will receive an Order Confirmation

with a Batch Number. Record this

Batch Number for your records.

20. Click the View Status and Reports

button to review the status of the filing.

21. Click the Print Forms button to print,

view or save the Employer’s copies and

any additional State, City, or Local W-

2’s that need to be provided to

your employees.

22. Click the Print Receipt

button to print a receipt of the

applicable W-2 filing charges

for your records.

23. Click the X in the upper right

corner of the display to exit

this window.

24. Return to Payroll > Forms >

W-2 Electronic Filing and

click the Check Status

button periodically over the

next day or two to verify that

your electronic filing was

accepted or if there were

issues or problems you need

to address.

102


103


REPORTS

104

Reports

The ConnectNow Church Accounting Payroll

system offers a complete selection of

standard reports. You can also memorize

and save reports.

To view your standard and

memorized reports, click on the

Payroll tab and click the

Reports icon.

The system saves your Standard Report

formatting and sort selections, so when you

run those reports in the future, your

preferences are already selected for you.

Reports are organized into the following

categories. Click any category heading to

view and select reports.

Paycycle

Current Earnings

Payroll Summary

Taxable Wages

Ledger Distribution

Pay Distribution

Detailed Deductions

Retirement Wages

Paycheck Register

Paycheck Stub

Deduction Benefit – Employee Detail

Employee Blank Timecards

Employee Directory

Employee Record

Tax Status

Personal Time

Employee Pay Status

End of Period Accumulations

Taxable Pay and Withheld

Deduction/Benefit Accumulations

Retirement Accumulations

REPORTS 105


Federal Federal Unemployment

Federal Tax Remittance

State and Local State Unemployment

State Accumulations

Local Accumulations

106

Report Options

Date Selections

Standard report selections default to the

current fiscal month and year. But you can

choose to print reports in Payroll for any

time frame needed.

Review the Payroll Dashboard, or the

current fiscal month located under Log Out

in the upper right corner of the display for

your current fiscal month and year.

End of Period reports have the following

date range selection availability.

You can select from:

Month to Date

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Fiscal Year to Date

Calendar Year to Date

Some reports are based on a “Period

Ending” concept. You can select any fiscal

month and year to report on.

Paygroup Selections

In most reports, you can make a selection on

Paygroup, choosing to print a report for a

single, multiple or all Paygroups in the

system. The default selection is to include

all Paygroups.

Selected items turn from white to blue. To

select multiple items, hold down the Ctrl key

on the keyboard and click the items you’d

like to select.

To clear the selections, click the X in the

upper right corner of the box.

Employee Selections

In many reports, you can make a selection

on specific Employees, choosing to print a

report for a single, multiple or all Employees

in the system. The default selection is to

include all Employees.

Selected items turn from white to blue. To

select multiple items, hold down the Ctrl key

on the keyboard and click the items you’d

like to select.

To clear the selections, click the X in the

upper right corner of the box.

REPORTS 107


Tax Statement Type Options

Two End of Period reports, Accumulations and Taxable Pay and Withheld, allow you to print the report for W-2 employees only, no statement employees only, or all employees. Click the down arrow at Tax Statement Type: to choose the report option.

Sort Options

Many reports allow you to choose how you

would like your report to be sorted

and sub-totaled.

Click the down arrow at Sort report data by:

and choose from the items on lookup table.

Report Format

The Ledger Distribution report allows you to

print the report either in Summary or Detail.

If you choose to print the report in

Summary, you see only the totals based on

the Group Sections you previously selected.

If you choose to print the report in Detail,

you see each individual account listed on

your Chart of Accounts.

Report Sub-Title

You may choose to add a Report Sub-Title to

your Reports.

108

Memorized Report

Groups

Any Payroll report groups that your church

staff has memorized display in this area.

Memorized reports are unique to each

church—the examples shown below are

from a demonstration church database

and will not be available in your system.

REPORTS 109


Memorize a Report Group

Use the Memorize feature to save your report with any special selections and/or

filters that you have applied.

To memorize a report, complete the following steps.

1. Select your report and apply any special selections or filters.

2. Click the Memorize Report button.

3. Type a name for your report and select a Group from Existing Group lookup table. If

you have not previously created a new Group, click into the Enter New Group

Name and enter the name of the Memorized Report Group.

4. Click the Memorize Report button.

Your report is available from the Memorized Reports menu, located on the right side of your

Reports screen.

Memorized reports can be modified and saved or deleted.

110

Print a Memorized Report Group

After you have Memorized the various reports needed into Report Groups, you can quickly edit

and print them as needed.

1. Click Reports and select the Memorized Report Group to print.

2. A listing of all of the reports in the Memorized Report

Group displays.

3. Click Preview All Reports to view and print all of the reports in the Memorized

Report Grouping.

4. Click Rename Group if you would like to change the name of the Memorized

Report Group.

5. To edit the selections on any report in the Memorized Report Group, click the report

name and make any edits to the selections as needed.

REPORTS 111


Exporting Reports

All reports can be exported from ConnectNow Fund Accounting into various report types. The

exported reports can then be viewed, edited and emailed as needed.

Select the report you would like to export and make any selections as needed, then click

Preview Report.

Click the lookup table in the upper right corner to determine the format of the export.

PDF – Portable Data File - Defaults to Adobe Reader (report may not be edited in

PDF format)

XLS – Defaults to Microsoft Excel

RTF – Rich Text Format - Defaults to Microsoft Word

MHT – MIME HTML - Defaults to Microsoft Internet Explorer

Text – Defaults to Notepad

CSV – Comma Separated Value - Defaults to Microsoft Excel

Image – Defaults to PNG Image reader

To export directly to your hard drive, click the button. You are prompted to select where you

would like to save the file on your local computer.

To export the report and open it in the default application, click the button. The report

opens in the file type’s default application.

112

Print 941 At the end of each Quarter, you must print a 941 and submit to the Federal Government with a payment for any taxes due.

Set Employer Information First time users of Ledger & Payables must set up their Employer Information prior to printing the 941 (see page Enter Employer Information on page 17).

Print 941

1. Click Forms > 941.

2. Select the Calendar Year from the lookup table (system defaults to the current calendar year).

3. Select the appropriate quarter from First Quarter, Second Quarter, Third Quarter or Fourth Quarter.

4. If needed, select any paygroups (system defaults to All Paygroups).

5. Choose either 941 Blank Paper or Schedule B (941) Blank Paper from Form Name.

6. Click Preview Report.

7. You are given the opportunity to edit the information to print on the 941. If you edit the form, keep in mind the following: a. If you adjust any number in a box on the

form, the system does not recalculate values.

b. If you adjust any number in a box on the form, you must make the same adjustment to all related values.

c. The form 941 data page enables you to edit both the 941 and Schedule B forms. If you need to make changes to both forms, you must complete the process twice – specifically for the area that each form addresses – because changes to the Schedule b are not recalculated in the 941 form (and vice versa). For example, suppose that you change the amount of

a tax liability for a month in the Schedule B’s data area, you must also reflect that change by editing the Month total on Form 941 (line 17).

d. If you need detailed information and specific instructions on completing the 941, go to www.irs.gov for more information.

8. Click Submit to print the 941 or Schedule B.

http://www.irs.gov/

113


ADMINISTRATOR TASKS

114

Manage Users Administrators can create new user accounts, reset passwords, and deactivate user accounts. You can choose to have as many people access your ConnectNow Church Accounting System as you would like, and you can have multiple people listed as a Church Administrator. Those people listed as Church Administrator have complete access to everything in your system. Those people listed as Church Users have a concept of Permissions; where you can determine what you want them to have access to and what you do not want them to access.

Add New User

1. Click the Church Manager tab.

2. Click the Add a User button.

3. Enter the User Name, Password, and Confirm Password. Passwords must be between 8 and 12 characters and must contain at least one letter and at least one number.

4. If you would like the user to determine their own password, click the Force Password

Change box and the system prompts them for a new password the first time they log in.

5. Enter the First Name and Last Name.

6. Enter the user’s Email Address. ParishSoft uses that email address to contact each ConnectNow user when updates and system maintenance tasks are scheduled.

7. Select the Role (e.g., Church User or Church Administrator).

8. The Active box is checked by default to activate the user’s account.

9. Click Submit.

ADMINISTRATOR TASKS 115


Reset a User’s Password Administrators can reset passwords for other users.

1. Click the Church Manager tab.

2. Click the Go button to view the user account.

3. Click Reset Password.

4. The system displays a system generated Password. Give this password to the user.

5. Click Submit.

The next time the user logs in to Ledger and Payables with the system generated password, he or she is asked to reset the password.

Deactivate a User Account To prevent a user from logging into the system, open the user’s account details using the procedure listed above. Uncheck the Active button and click Submit. The user’s account now displays on the Login User List with False indicated under the Active column. Users may log in to Ledger and Payables display True in this field.

116

Permissions Those listed as Church Administrators have complete access to everything in the ConnectNow Fund Accounting system, and there is no concept of Permissions. It is recommended that you limit the number of Church Administrators to just a few people within your organization. The Payroll system’s Permissions settings allow administrators to control which Parish Users can perform certain tasks or access certain information. For example, you may allow a specific staff member to enter timecards and personal time but prevent that same user from printing checks. Administrators click the Permissions icon to manage privileges for users with the Church User login type. Use the checkboxes to grant or remove access to any of the ConnectNow Church Accounting modules, as well as any Read, Write or Delete privileges to the following specific functions within the payroll system.

1. From the Church Manager tab, click Permissions.

2. Click the down arrow at Quick Find and you’ll notice only those listed as Church Users. Select the Church User that you would like to edit their permissions.

3. You can choose to have the Ledger and Payables and/or Payroll tab Show or not

show when the user logs into ConnectNow Fund Accounting. The Show box must be checked if any individual items are checked. For example, you may want the Payroll tab to show, but not the Ledger & Payables tab. Simply remove the checkmark at Ledger & Payables Show and the user cannot see the Ledger & Payables tab or access any element of Ledger & Payables. NOTE: You must Show either the Ledger & Payables Tab or the Payroll Tab for the Church User to log in. If neither tab is set to Show, the user will be unable to log in.

4. You can select from Read, Allow/Write and Delete columns.

The Read column allows the user to view the display.

The Allow/Write column allows the user to add new or change existing data for that item.

The Delete column allows the user to remove the item in its entirety.

5. Place a checkmark in the columns and items

that you want the user to access.


ADMINISTRATOR TASKS 117


Audit ConnectNow Fund Accounting offers a complete Audit trail of your system, including the ability to filter for the specific item in which you are inquiring.

1. From the Church Manager tab, click Audit.

2. The items are listed in chronological

order and you can view 100 records at one time.

3. Select the Manager (user name),

Area and/or Audit Date range of the items you would like to review and click Search.

4. For more information on the transaction, click the Expand button to the right of the entry to gather more information about the transaction. Click Collapse to hide the details on the display.

5. To create a printed copy of the Audit, click the Preview Report button.

Expand button

118


119


INDEX

120

1099 Vendor Setup, 34

403(b), 23

About this Manual, 9

Absence

Personal Time Management, 74

Account Distributions, 26

Copy, 27

Edit, 28

Expense Accounts, 26

Fix Errors, 57

Gross Pay Expense Accounts, 26

Liablity Accounts, 26

Payroll Requirement, 57

Quick Find, 28

Accumulations

Allowance, 45

Federal Tax Gross Wages, 45

Federal Tax Withheld, 45

Gross Pay, 45

Local Tax Gross Wages, 45

Local Tax Withheld, 45

Medicare Gross Wages, 45

Medicare Withheld, 45

Net Pay, 45

Other Deductions, 45

Social Security Gross Wages, 45

Social Security Withheld, 45

State Tax Gross Wages, 45

State Tax Withheld, 45

ACH File

Create, 65

ACH Information, 17, 18

Administrator

Add New User, 114

Audit, 117

Deactivate User Account, 115

Permissions, 116

Reset Password, 115

Allowance Accumulations, 45

Allowances, 37, 38, 39

Annual Pay Amount, 39

Audit, 117

Benefits, 23

Add New, 23

Code Number, 24

Delete, 25

Delete from Employee, 42

Description, 24

Edit, 23, 25

Quick Find, 25

Subject to Tax, 24

Template, 23

Type, 24

W-2 Category, 24

Calculate, 57

Fix Errors, 57

Change a Check Number, 62

Check Layout, 29

Check Stock

Where to purchase?, 29

Checks

Change a Check Number, 62

Church Responsibility, 82

Clergy Salary, 27

Close Payroll, 68

Check Number Assignment

Requirement, 64

Dashboard

Graph, 13

Wage Totals, 13

Dashboard View, 13

Data Conversion, 8

Deduction

Add New, 23

Deduction/Benefit

Add More Lines, 42

Amount, 42

Current Year, 42

Delete, 42

Edit Paycheck Line Items, 60

Elective, 42

Limit, 42

Prior Year, 42

Deductions, 23

Code Number, 24

Delete, 25

Delete from Employee, 42

Description, 24

Edit, 23, 25

Quick Find, 25

Subject to Tax, 24

INDEX 121


Template, 23

Type, 24

W2 Category, 24

Default Check Sequence, 21

Delete Paycheck, 61

Direct Deposit

Account Type, 48

ACH setup, 17

Add More Lines, 49

Amount or Percentage, 48

Bank Account Number, 48

Create ACH file, 65

Delete, 49

Direct Deposit Participation, 48

Distribute to Accounts by, 48

Employee Setup, 48

Percentage or Amount, 48

Plain Paper Allowed, 67

Prenote Date, 48, 49

Print Receipts, 65, 67

Remittance Advices, 65

Routing Number, 48

Unlimited Number of Accounts, 48

Edit Employee's W-2 Information, 87

Edit Paycheck, 60

Calculate Process Overrides Edits, 60

Edit Timecards, 55

Email

ParishSOFT, 2

Emergency Contact, 34

Employee

Active, 35

Add New, 34

Address, 34

Allowances, 37, 38, 39

Annual Amount, 40

Applicable State, 37

Birthdate, 34

Custom Date, 36

Custom Long Text, 36

Custom Number, 36

Custom Text, 36

Deceased, 35

Dependents, 37

Emergency Contact, 34

Employment & Custom Information,

35

Employment Date, 35

Extra, 37, 38, 39

Federal Tax, 38

First, Middle, Last Name, 34

Gender, 34

Hours/Units, 40

Job Category, 35

Job Title, 35

Last Physical, 35

Local Tax, 38

Marital Status, 37, 38, 39

Multi-Account Distribution, 41

Override, 37, 38, 39

Pay Group, 39

Pay Period Amount, 40

Phone Numbers, 34

Physical Limitations, 35

Rate of Pay, 39

Record Payroll Totals for New Users, 70

Reports, 104

Retirement Number, 35

Salary Expense Account, 40

Social Security Tax, 36

State Tax, 37

State Unemployment, 37

Suffix, 34

Termination Date, 35

Employee 1099 Vendors, 34

Employee Information, 34

Employee Record

Accumulations Tab, 45

Deductions/Benefits Tab, 42

Direct Deposit Tab, 48

Employment/Custom Tab, 35

General Tab, 34

Pay Data Tab, 39

Paycheck History Tab, 50

Personal Tab, 46

Tax Data Tab, 36

Employees Icon, 14

Employer Information, 17

941, 112

Address and Address 2 fields, 18

122

Bank Account Number, 18

Batch Number, 18

Contact Information, 18

Federal Tax ID field, 18

Immediate Destination field, 18

Immediate Destination Name field, 18

Immediate Origin field, 18

Local Tax ID, 18

Originating DFI, 18

State Tax ID, 18

Employer Name field, 18

Employer Responsibility, 82

End of Year Processing

Personal Time, 77

W-2, 82

Errors

Fix Issues Found in Payroll

Calculation, 57

Exporting Reports, 111

Extra Tax Withholding, 37, 38, 39

Federal Tax

Gross Accumulations, 45

Tax ID Number, 17

Tax ID Number field, 18

Withheld Accumulations, 45

Withhold, 38

Flowchart of Payroll Setup, 16

Garnishment, 23

Gross Pay Account, 27, 28

For Pay Item, 21

Gross Pay Accumulations, 45

Health Care Benefits, adding, 43

Hours in Pay Period, 39

Insurance, 23

Introduction, 8

Job Category

Delete, 73

Quick Find, 73

Set up, 73

Job Title, 35

Ledger & Payables

integration with, 8

Setup Required Prior to Payroll

Processing, 16

Local Tax

Delete, 80

Find, Select, 80


Set up, 80

Tax ID Number, 17, 18


Withhold, 38

Log In, 11

Log Out, 11

Manage Deductions and Benefits, 23

Marital Status (state, federal, and local),

37, 38, 39

Medicare



Memorized Report Group, 108, 109

Monthly

Pay Group Setup, 19

More Lines, 41, 42, 47, 49, 76

Navigation, 13

Net Pay Accumulations, 45

Next Step of Payroll Process, 13

Other Deductions Accumulations, 45

Override Tax Withholding, 37, 38, 39

Parish Administrator

Privileges, 8

rights versus Parish User, 8

Parish User Privileges, 8

Parishsoft Responsibility, 82

Pay Data

Add More Lines, 41

Delete a Line Item, 41

Pay Group, 39

Pay Frequency, 19

Pay Group

Delete, 20

Description, 20

Edit, 20

Pay Group Number, 20

Pay Periods Per Year, 20

Quick Find, 20

Pay Groups

Select During Payroll Processing, 54

Setup, 19

Pay Item, 21

Check Sequence, 55

Default Check Sequence, 21

INDEX 123


Default Gross Pay Account, 21

Delete, 22

Delete on Timecard, 56

Description, 21

Edit, 22

Pay Item Type Field, 21

Quick Find, 22

Taxable and Non-Taxable, 21

Pay Periods Per Year, 19

Paycheck

Delete, 61

Printing, 62

Void, 61

Paychecks

Beginning Check Number, 64

Check Numbers, 64

History, 50

No Checks Printed, 63

Number Restrictions, 64

Pop Up Blocker, 63

Printed Correctly, 63

Some Printed Correctly, 63

Paychecks Tab

Amount, 50

Cleared, 50

Date, 50

Display Year, 50

Number, 50

Voided, 50

Payroll

Requirements, 57

Payroll Check Layout, 29

Customize, 29

Payroll Process

ACH Receipts, 65

Calculate, 57

Check Numbers, 64

Check Sequence Defaults, 55

Close Payroll, 68

Closed Payroll Requirement, 53

Delete Deduction/Benefit, 60

Delete Paycheck, 61

Delete Timecard, 56

Delete Timecard Item, 56

Direct Deposit ACH File, 65

Edit Deduction/Benefit, 60

Edit Existing, 52

Edit Paychecks, 60

Edit Wages, 60

New, 53

Overview, 52

Paygroup Selection, 54

Pop Up Blocker, 63

Print Checks, 62

Problems Printing Paychecks, 63

Recalculate Select Employees, 57

Requirements, 57

Reset Timecards, 56

Review, 59

Save ACH File, 66

Select Employees, 54

Timecard Entry, 55

Void a Paycheck, 61

Payroll Process Icon, 14

Payroll Process Steps

#1 Setup Payroll, 53

#2 Select Employees, 54

#3 Edit Timecards, 55

#4 Calculate Payroll, 57

#5 Review, 59

#6 Edit Paychecks, 60

#7 Print Checks, 62

#8 ACH File, 65

#9 Close Payroll, 68

Permissions, 116

for ConnectNow Church Accounting, 116

Personal Time

Add, 47, 76

Amount per Payroll, 46

Delete, 47, 74, 76

Earned, 47

Earned as Lump Sum, 76

Earns per Payroll, 75

End of Year Processing, 77

Entry, 74

Limits, 47, 76

Management, 74

Quick Find, 74

Record, 47, 74

Set up, 74

Personal Time Processing Options, 78

124

Phone numbers

for ParishSOFT, 2

Pop Up Blocker, 31, 63

Prenote Employees, 79

Print Checks, 62

Print W-2 Review, 90

Print W-2's, 92

Privilege Levels, 8

Tabs Visible to your Log in, 13

Process W-2's, 87

Quick Find


Deductions/Benefits, 25

Job Category, 73

Pay Group, 20

Pay Item, 22

Personal Time, 74

Rate of Pay, 39

Reporting, 8

Reports, 104

Date Selections, 106

Employee, 104

Employee Selections, 106

End of Period, 104

Exporting Reports, 111

Memorize, 109

Memorized Report Group, 108

Options, 106

Paycycle, 104

Paygroup Selections, 106

Report Format, 107

Report Sub-Title, 107

Sorting and Grouping, 107

State and Local, 105

Review Payroll, 59

Salary Expense Account, 21

Security

Add New User, 114

Audit, 117

Deactivate User, 115

Log In, 11

Log Out, 11

Permission settings, 116

Permissions, 116

Reset Password, 115

Semi-Monthly

Pay Group Setup, 19

Set Up Payroll Process, 53

Setup

Local Tax, 80

Setup


ACH Information, 18

ACH Prenotification, 79

Employer Address, 18

Employer Information, 17

Employer Name, 18

Federal Tax ID, 18

Flowchart for New Users, 16

Job Category, 73

Local Tax ID, 18

Pay Groups, 19

Pay Items, 21

Personal Time, 74

Prenote Employees, 79

Start Up Employee Totals, 70

State Tax ID, 18

Setup

W-2, 83

Social Security


Recommended format for employee

name, 34


Withhold Tax from Employee Pay, 36

Start Up Employee Totals, 70

Enter Employee Deductions/Benefits, 72

Enter Employee Gross Wages, 71

State Tax


Tax ID Number, 17


Withhold, 37

State tax ID fields, 18

State Unemployment, 37

Subject to Tax

Deductions/Benefits, 24

Support

phone and email information, 2

Support Links, 10

Tax Data Data Fields, 36

INDEX 125


Tax tables

auto-updated, 8

Technical support, 2

Timecard

Delete, 56

Delete Pay Item, 56

Edit Wages, 60

Entry, 55

Reset, 56

Training, 9

User Checklist, 9

Users

Add New User, 114

Deactivate, 115

Permission Settings, 116

Permissions, 116

Reset Password, 115

Void a Paycheck, 61

W-2, 82

Box 10 Definition, 84


Box 12 Code Descriptions, 85



Deceased Employee Status, 35

Deduction/Benefit Box Designation, 83

Edit Employee W-2 Information,

87

Examples, 92, 93, 94, 95, 96

Print, 91, 99

Process W-2, 87

Reprocess W-2, 87

Review, 90

Setup, 83

Where is the information located?, 88

W-2 Category

Field Definition, 24

Other, Retirement, Tax Deferred, 24

W-2 Electronic Filing, 99

W-3, 82

Examples, 97, 98

Print, 91, 99

Review, 90

Setup, 83

Wages

Edit Line Items on Paycheck, 60

Weekly

Pay Group Setup, 19

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