Payroll Troubleshooting
Presented by Bronwyn Betts
Welcome
If you are applying for CPE credit, please be sure to sign in and sign out.
Please write legibly!
Additionally, fill out the survey for a chance to win a free pass to the 2017 User Conference!
Presentation Contents
Here’s the game plan for today!
1
OMG!
6
Simple Corrections of Posted P/R
2
Determining the Best Way to Correct Payroll
and Dates
7
Advanced Corrections of Posted P/R
3
Data Flow
4
Corrections During Payroll Processing
(Unposted P/R)
5
Voiding Checks
OMG!!
(and other explanatives!)
1
First – Don’t Panic!
2
Determine what is wrong, who it affects, how often is it happening, and how to correct
the issue (remembering that easiest is not always the best avenue)
3
Act with a backup in place.
Various Ways to Correct Payroll
Knowing how to fix problems before they happen can guarantee a win!
1
Voiding a P/R Check
5
General Ledger Journal Entries
2
Reversing a Timecard
6
Job Journal Entries (Rarely Used)
3
Current Adjustments
7
Payroll Correction Feature
4
History Adjustments
Payroll Integration with other Modules
Know the Flow!
3
2
1
Payroll
General Ledger
Job costing reports are instantly
updated with the payroll
General ledger reports
(financials) are instantly updated,
the payroll posting date.
Upon posting payroll, all payroll
reports are available on the
posting date.
By simply posting your payroll,
a total of three modules are
information, most commonly on
most commonly, on the payroll
posting (check) date.
Job Costing
updated!
Payroll Integration with Other Modules
Know the Flow!
3
2
1
Payroll
Upon posting PR, all PR reports
are available on the Posting
(check date)
Job Costing
By simply posting your payroll,
General Ledger
Job costing may or may not be
a total of three modules are
updated based on the G/L journal
updated!
Choosing to correct a payroll
that was used. Some journals
posting through a G/L journal
allow you to identify the jobs. If
entry will update G/L reports.
they do, then J/C reports are
updated.
Payroll Integration with Other Modules
Know the Flow!
3
2
1
Payroll
Upon posting PR, all PR reports
are available on the Posting
(check date)
Job Costing
By simply posting your payroll,
General Ledger
Job costing journals may be used
a total of three modules are
to correct P/R, but that is highly
updated!
Choosing to correct a PR Posting
inadvisable if you do Over Under/
through a GL journal entry will
WIP/ or production reporting.
update GL reports.
Corrections During Payroll
Fixing right away!
1
Updating maintenance does not change what
you put in the timecard. Correct timecards!
4
Check less than zero? – If there are not
enough hours for Misc. Deduction, use the
current adjustment feature
2
If you make a change and recompute and
you do not see the change, purge computed
payroll (not timecards).
5
G/L not defined? Think of any new item and
check that the G/L is set up.
3
Union fringes, locals, and departments can
“stick.” Delete timecards or affected lines and
reenter/recompute.
6
Checks did not print correctly? Don’t
answer “YES” to the question, “Are all
Checks/Direct Deposits correct”
Voiding Checks
1
Pay period must be set to the dates when the
check was cut.
4
At the time you are entering the void, do not
change the “Use Timecard History” setting.
Leave it as “Yes.”
2
After the voided check is computed, make sure
the net adjustment is exactly the same amount
as the original checks (just negative).
5
Don’t use a post date that is in a previous
year or a previous quarter.
3
Post date must be either the same date as
originally cut or posted to upcoming check
dates. Do not use, “today’s” date, or taxes will
be difficult to track.
6
You cannot “reuse” a payroll check
number as you can in A/P.
Wrong G/L Account
1
You can do a simple G/L journal entry to move
the money to the correct the G/L account.
4
Keep in mind that G/L expense accounts can
be overridden by P/R departments and/or cost
codes.
2
Post GL Journal Entry on the same date that
the payroll posted.
5
Check your pre-check register for the G/L
Register before posting the next payroll if
you think the issue is or is not resolved.
3
Determine if this is a setup issue or a data
entry issue, and if it will happen again.
Wrong Miscellaneous Deductions
Not Section 125 or 401K related
1
Adjusting with the next payroll is the easiest
method to fix. Use the Adjustment Genie for
current payroll.
2
If the employee is terminated and you owe an
amount, enter a timecard for negative 1 hour
and positive 1 hour to the overhead job (2
separate lines). Compute and do the current
adjustment to give a negative amount.
Remember that a negative amount for a miscellaneous
deduction gives money to the employee.
Wrong Miscellaneous Deductions
For Section 125, 401K, IRA, SEP
1
If posted, you must adjust the difference through the Adjustment Genie.
2
Doing so will ensure that the taxable amounts and limits will be changed correctly.
3
While federal and state taxable amounts are corrected, the withholding is not adjusted.
4
If the employee is terminated and you owe an amount in Section 125, you may have to reduce the amount of
the federal withholding to offset the FICA withholding.
Payroll Correction Feature
1
Only needs a “Corr” misc. deduction and to
be identified in the Payroll Control File.
5
It corrects certified payroll reports
and union reporting correctly.
2
This feature can be used even if there are
current timecards in the system.
6
Preferable to only use one time per employee
per week, so you should fix all known issues
at one time.
3
It can be used to make corrections for
previous periods of time.
7
4
It can be used to correct multiple weeks of
mistakes and it will track what is owed to
employee(s) or owed by the employee(s).
Lovely feature when a union doesn’t give
you pay rates/fringe rates for many
weeks, or when an employee “forgets” to
turn in a timecard.
Payroll Correction Flow
1
Make sure you are in the same pay period
letter. Dates are not an issue.
2
Payroll > Daily > P/R Corrections > Enter
Corrections
3
Answer the question, “Have checks been
distributed?” Applied to direct deposits also.
4
Enter the weekend date and employees
to be corrected. Click [OK].
5
Choose the employees to be
corrected. Click [Next].
6
6
7
8
Timecards originally entered will be offered up.
You can delete a timecard, add a timecard, or
modify an existing one. Click [Save &
Continue], and repeat for next employee if
applicable.
When all employee corrections are made,
choose “Done” and “Yes” to compute the
corrections.
Choose to pay differences after taxes “By
Check” or “Later.” If the employee owes
money, always choose “Later.” Click “Report”
and it will show you the difference owed.
Payroll Correction Flow
Repeat the entire process if corrections
span multiple weeks.
9
Print the Pre-Check Correction Register.
13
10
To post the correction, choose “Print
Correct Paychecks and Deposits” even if
you are not actually printing a check. This
is where it is posted
14
All differences due to or from the
employee(s) are banked in the “CORR”
misc. deduction.
Choose the date to which you want the taxes
and difference to be committed. We
recommend the upcoming payroll check date
for tax reasons.
15
During the next normal payroll, enter
current timecards. When you
compute, a message will pop up to
advise you that you can give back or
take from the employee at that time.
11
12
A check or a revised check stub will be
available to print. Do so and
adjustments will be posted.
Thanks for Attending
Payroll Troubleshooting
www.foundationsoft.com
[email protected]