The purpose of this process is to ensure employee records are accurately set up, and payroll information, including salary, benefits and tax data is entered and maintained accurately. There is a tremendous amount of information contained within the Employee record affecting their payroll.
Employee State Code
The Payroll System requires you to select a two-digit state code for each employee record. This code is important as it determines the proper calculation of some benefits and payroll taxes. Be sure you have selected the proper code for the employee. This code is based on the US Postal Service two digit state codes. This code is necessary to create multiple employee records for an employee who works in more than one state.
Basic Employee Information
See the the On-Line help for the Employee Maintenance program (menu# 3.1.1). When you create an employee record you enter their name and address in the Address Book, which is done when you add the employee. Other personnel information is maintained in the Employee record. This information is used to properly prepare and mail payroll checks, maintain employee and tax accumulation totals, and prepare salary and other reports. It is important this information be maintained on a regular basis. The Address Book entries MUST be correct in order to ensure the P/R checks and Federal W-2 forms are prepared properly.
The following additional explanations are provided for Employee information:
Employee Tax Withholding Information
The withholding and deduction information in an employee record will be obtained from the W-4, and other documents, submitted by the employee. A form should be submitted for both federal and state taxes if applicable. Once the appropriate information is submitted you can then change their withholdings or tax deductions.
The following is a more detailed explanation of the purpose of withholding information:
Delete an Employee Record
Records of employees terminated during the year should be maintained on the system until after year-end reporting and updating is completed. Some employees may be seasonal and should be maintained on the system from year-to- year, not deleted and added every year.
Add and Maintain Salary Data
The Payroll System allows you to pay employees on either an hourly or salaried basis, or a combination of both. In order to process salaried information you need to maintain a separate salary record. Since a salary record is selected for a supplemental wage creation run, make sure the amount of the salary corresponds to the correct employee PayCycle as recorded in their employee file.
You can allocate any salary to a maximum of 10 different clients or G/L account#s. Because changing a payrate also may change the employee salary file, you must have sufficient security clearance to take this action.
Since the number of hours in a pay period fluctuate, you need to allocate each line item in the salary record as a percentage of the hours processed.
Please note the following: