Payroll Troubleshooting Presented by Bronwyn Betts

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Presentation Contents Here’s the game plan for today! 1 OMG! Determining the Best Way to Correct Payroll and Dates Data Flow Corrections During Payroll Processing (Unposted P/R) Voiding Checks Simple Corrections of Posted P/R Advanced Corrections of Posted P/R

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 Reversing a Timecard Current Adjustments History Adjustments General Ledger Journal Entries Job Journal Entries (Rarely Used) Payroll Correction Feature

Payroll Integration with other Modules Know the Flow! Payroll 1 Upon posting payroll, all payroll reports are available on the posting (check) date. General Ledger 2 General ledger reports (financials) are instantly updated, most commonly, on the payroll posting date. Job Costing 3 Job costing reports are instantly updated with the payroll information, most commonly on the payroll posting date. By simply posting your payroll, a total of three modules are updated!

Payroll Integration with Other Modules Know the Flow! Payroll 1 Upon posting PR, all PR reports are available on the Posting (check date) General Ledger 2 Choosing to correct a payroll posting through a G/L journal entry will update G/L reports. Job Costing 3 Job costing may or may not be updated based on the G/L journal that was used. Some journals allow you to identify the jobs. If they do, then J/C reports are updated. By simply posting your payroll, a total of three modules are updated!

Payroll Integration with Other Modules Know the Flow! Payroll 1 Upon posting PR, all PR reports are available on the Posting (check date) General Ledger 2 Choosing to correct a PR Posting through a GL journal entry will update GL reports. Job Costing 3 Job costing journals may be used to correct P/R, but that is highly inadvisable if you do Over Under/ WIP/ or production reporting. By simply posting your payroll, a total of three modules are updated!

Corrections During Payroll Fixing right away! 1 Updating maintenance does not change what you put in the timecard. Correct timecards! Union fringes, locals, and departments can “stick.” Delete timecards or affected lines and reenter/recompute. If you make a change and recompute and you do not see the change, purge computed payroll (not timecards). Check less than zero? – If there are not enough hours for Misc. Deduction, use the current adjustment feature G/L not defined? Think of any new item and check that the G/L is set up. 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. 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. After the voided check is computed, make sure the net adjustment is exactly the same amount as the original checks (just negative). At the time you are entering the void, do not change the “Use Timecard History” setting. Leave it as “Yes.” Don’t use a post date that is in a previous year or a previous quarter. 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. Determine if this is a setup issue or a data entry issue, and if it will happen again. Post GL Journal Entry on the same date that the payroll posted. Keep in mind that G/L expense accounts can be overridden by P/R departments and/or cost codes. 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

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. 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. 2 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. While federal and state taxable amounts are corrected, the withholding is not adjusted. Doing so will ensure that the taxable amounts and limits will be changed correctly. 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. This feature can be used even if there are current timecards in the system. It can be used to make corrections for previous periods of time. 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). It corrects certified payroll reports and union reporting correctly. Preferable to only use one time per employee per week, so you should fix all known issues at one time. 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 Make sure you are in the same pay period letter. Dates are not an issue. Payroll > Daily > P/R Corrections > Enter Corrections Answer the question, “Have checks been distributed?” Applied to direct deposits also. Enter the weekend date and employees to be corrected. Click [OK]. 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. 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 the employees to be corrected. Click [Next]

Payroll Correction Flow Print the Pre-Check Correction Register. 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 Choose the date to which you want the taxes and difference to be committed. We recommend the upcoming payroll check date for tax reasons. A check or a revised check stub will be available to print. Do so and adjustments will be posted. 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. Repeat the entire process if corrections span multiple weeks. All differences due to or from the employee(s) are banked in the “CORR” misc. deduction

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