This document will lead you through a proper setup of an employee for payroll runs.
From the Main Menu go to 9.3.1. Employee Entry.
The first required field is for an employee number. You may hit a period “.” or enter your own employee number which will be used by the employee for timecard purposes and for the payroll for creating checks for them.
Field 1 is the date entered. You can change this date or use the date given to record the time the employee began working for you for record-keeping purposes.
Fields 2-5 are the Employee’s name and address. Fill these out appropriately.
Field 6 is for the social security number. This field is important because what is entered here is used in the Timecard entry when the employee clocks in for the day. It will ask the employee to enter the last 4 digits of the SS# as a secret code. This is a mandatory field.
Field 7 is the birth date and field 8 is for the drivers license number.
Field nine is a multi-valued field. Here you can enter one or more telephone numbers for the employee (maybe a beeper or cell phone number as well as a regular phone number.)
Field 10 is the location; this is the location where the employee usually works. Some companies have more than one location. For payroll purposes the module needs to know what location he is working from.
A Department code is used for field 11. You can use a “?” question mark to see all the codes entered. Choose the one appropriate for the employee. (Department codes are entered into the system for lookup in 9.3.5).
Field 12 is the position the employee has in the company. It is a text field. You can type anything in here you would like.
Field 13 is the date hired. Enter the date the employee began working for you. (Date Hired can be the same as Date Entered.)
Field 14 is the Employee Type. You can enter <H>=Hourly, <S>=Salary, <N>=Non-Employee, or <C>=Contractor. Non-Employees are considered Vendors and are not taxed on anything (This is for your 1099's). Contractors can not be posted to payroll. They are posted to AP only. Every employee must be deemed one of these options.
Field 15 is for Marital Status. Enter whether the employee is married or single.
Field 16 is for the Payroll Frequency for Employee. He may be <D>=Daily, <W>=Weekly, <B>=Biweekly, <S>=Semi-Monthly, <M>=Monthly. This answer the question, “How often is the employee paid?”
Field 17 is the General Ledger Expense Account to Apply Earning to. You may enter a wage account for the GL if you would like, or you can leave it blank to default to Earning Code Wage Account in Earning Code Entry. To see what GL accounts you have available us the <?> for Account Lookup.
Field 18 is the Pension Plan field. Does Employee Participate in a Pension Plan? Answer “Y” or “N”. This data is required to correctly print the W-2 Form.
Field 19 is for the W2 Insurance Premium the employee may have. Enter any annual insurance premium paid by the employer on a policy whose face value is in excess of the IRS limit for non-taxable insurance premiums. This data is a note for you to correctly print the W-2 Form.
Field 20 is for the Last Raise Date. Fill this in if needed.
Field 21 is for the Next Review Date. Fill this in if needed.
Field 22 is for the Termination Date. Fill this in if needed.
Field 23 is for the total Salary the employee will earn. This is filled out whether the employee is a Salary or hourly employee. Calculate the total amount and enter here.
Fill in field 24 as the employee’s hourly rate. Field 25 will automatically calculate when field 24 is filled out. Field 26 is for any special rates you may have for the employee.
Field 27 is for the Earning codes the employee may have. (To enter an earning code, go from the Main Menu to 9.3.6.1. You can use a “?” to see the earning codes already created, or you can enter a new code. For example, use “S” for Salary as a code. You can enter a description to explain the code. Then it needs a GL account number which this particular earning code will hit, or you can leave it blank so that it defaults to field 17 in employee entry (Wage Account). You can then enter the type of earning code it is: <S>=Salary, <H>=Hourly, <OT>=Overtime, SP>=Special Rate. Then you can enter the a <Y> if this is a Supplemental Earning subject to a flat rate tax for Withholding which is setup in Federal, State and City Tax Values. This Earning will calculate tax based on the flat rate even if Marked Exempt. Lastly, to complete the earning code, fields 5-15 allow you to exempt this code from being taxed.)
Field 28 is for deduction codes. They are entered almost the exact same way as an earning code except they are used to deduct extra deductions for the employee (such as child support or the like). (See step #23 above for an explanation of earning code. The entry for a deduction code is the same except deduction codes are entered at 9.3.7.1).
Field 29 is a special field that allows job costing to be entered when creating a payroll entry. There are few customers who actually use this. Leave this blank.
Field 30 is the vendor code used for this employee. If the employee will be reimbursed for expenses incurred on a training day out of town, or some other larger expenses, then you must create a vendor code for this employee in 7.6.1 and enter the employee in the system as a vendor. Otherwise leave it blank.
Field 31 on the last page of employee entry is for Direct Deposit. Is this a Direct Deposit Employee? If Yes then you will be given an option to print a Payroll Check Stub only for this employee during a Payroll run. Setup a separate Direct Deposit Bank Number in Payroll Setup if using this option (9.4.2 and field 17 from the Main Menu).
When the employee is finished being entered, hit “S” to save it at the bottom of the screen. Then hit ESCAPE to go back to the Main Menu.
Next, go to 9.3.2 and fill in Employee Tax Info. Enter the number of the employee and hit ENTER. Fields 1, 2, and 10 are most important. Field 1 is the Federal Exemptions taken by the Employee. Field 2 is for State exemption (if there are any), and field 10 is the State Tax Table used for this employee. (To set up a state tax table go from the Main Menu to 9.4.6 and use you Circular ENTER. To enter the proper table here. If you are unsure of the entry for the tax table, see your accountant.)
All other fields here are used as optional fields.
Next you will want to fill out the employee’s benefit hours. If they do not have any you are finished entering the employee for Payroll purposes.
From the Main Menu go to 9.3.3 and enter the employee’s number at the top of the screen and hit ENTER.
You can enter benefit hours here for things like personal days, vacation and sick days. You must have an Earning Code for the kind of benefit you are giving the employee. You may have to set these up first. (See step 23 above for instructions). Then you will give the code a description, the Hours Per Period they receive, the maximum number of hours they receive, the hours they have due and the due date which those hours must be used up by.
After these are entered, the employee may use the timecard and then be used during a payroll run.
