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Payroll Payments - Current

The Payroll Payments-Current module is used to add payroll information for employees not included in the regular payroll (during initialization) or to modify or delete payroll information for employees already included in the current payroll.

A Warning will be issued if no current payroll is IN PROGRESS:

View Payroll Payments Current Entry

If additional columns on the grid are needed this can be done by create by clicking on the  in the upper right hand corner of the grid and check marking the column header name(s) you want included on the grid. The order of the columns can be changed by simply dragging them to the desired location.

The Payroll Payments-Current grid allows the user to search for existing records. You can either enter in the Number or a few characters in any of the grid headings and all occurrences of that search will show up and then you can choose the item(s) you are wanting to view or edit.  Example - First Name  is one of my grid options. If I type in %San% (% is use as a wildcard) in the First name field, all occurrences of anyone with  San in the first name will appear. You can then click on the to view or  to edit next to the desired Payroll Payments-Current record.

Pop Up Payroll Report in Current

While entering data in the Current option, a pay report can be generated and displayed on your terminal screen. Select the employee or employees to display and click on  to display  This feature allows you to verify the data and make changes at this point in the payroll if necessary.



Click on :


Create a Payroll Payments-Current Entry

  1. From the Payroll  Menu, select 'Payroll Payment-Current' option
  2. Click on 
  3. In the Payroll field from the drop down box, choose the payroll that you want this payment or modification for.
  4. In the Employee field type in either a partial identification number for the employee or a few alpha characters of the employee's first or last name. When entering in either a partial ID number or a few characters of the employee's first or last name  a list of employees matching that criteria will appear. From here you can then select the employee you are searching for from the drop down box.
  5. In the Position field select the position you are wanting to pay or modify for this employee in this payroll by clicking on the .
  6. Click

You will then get a Message stating 'No errors or warnings':

Click on the  to add pay information:

   7.You will then need to enter in the desired pay information by clicking on in the  in the bottom left hand corner:

  8. Select the Pay Type from the drop down box for this Current record:

    • Adoption Assistance - NC2
    • Dock - Dock amounts are subtracted from gross wages.
    • Irregular - Irregular pays update the contract amount paid, but do not update pays paid and days worked. This can be used to pay retro amount on a separate check.
    • Life Insurance Premium - NC1This pay type is used in the processing of the taxable amount of life insurance premiums on W2's for coverage in excess of $50,000.  Any NC1 amounts are taxed by Medicare and Social Security, as applicable. No Federal, state, or OSDI tax is deducted from this amount. The software provides the ability to withhold city tax on non-cash earnings. This can be activated by checking the "Tax Non Cash Earn" box on the city tax record in the Core/Payroll Item Configuration option.
    • Miscellaneous -  Does not update the contract amount paid. Miscellaneous pays can be taxed at different rates and charged to different accounts.
    • Non-cash Taxable Benefit - NC3  This pay type will represent the non-cash taxable benefit amount.
    • Non-taxable Reimbursement - Can be used to pay mileage or meal reimbursement
    • Overtime - These do not update the contract amount paid. If the rate field is left blank the system will enter a rate of 1 1/2. Overtime wages are charged to an overtime account based on the employee's regular pay account.
    • Pay Off Accrued Wages - Pay off of total accrued wages. This pay type updates the contract amount paid. This amount is calculated by the system.
    • Regular - Regular wages for contracted employees. These count toward the fulfillment of the contract. When adding regular wages to an employee leaving the rate blank will cause the system to default to the employee's regular rate. Regular pay types are charged according to how they are set-up in Core/Payroll Accounts.
    • Retro - BCKRetro pay updates the contract amount paid.  Can be used as a negative or positive pay.
    • Shift Premium - Shift premiums can be defined in............ as a percent or fixed amount.
    • Termination -  Pays an employee a specific amount as termination pay, for example severance pay. You must supply the tax and retirement options. The Job Status field will be changed to 'Termination' once the payroll has been posted.

  9. Choose the Compensation record you are wanting to use for this payment from the drop down box. This is a required field.  An error will be created:

10. Enter in the Units (hours/days) you are paying the employee for.

11. The Rate for the job is the amount an employee earns per unit they work. This amount could be for a day, hour, etc.If the Rate field is left blank it will automatically default to the Position screen rate.

If the Overtime pay type is used and the rate field is left blank, when clicking  the rate will automatically be calculated at 1.5 times the normal listed rate on the compensation record. Overtime wages are charged to an overtime account based on the employee's regular pay account. -(OBJ codes must be defined in System/Configuration/Overtime Object Code Configuration)


12. The Gross will automatically be populated when the record is saved.

13. The Contracted Gross would be pulled in if this was a stretch paid employee.

14. Enter in the Hours Worked. This field is important for retirement reporting as well as Affordable Care Act reporting purposes.

15. A  brief Description can be entered to reference what the payment is for.

16. Does this payment count toward retirement?  If so check the next to the Applies for Retirement field. If this payment does not count toward retirement uncheck the  next to the Applies for Retirement field.

17. Is this to be taxed as a Supplemental payment? If it should be taxed as a supplemental payment check the box next to Supplemental if it is not to be taxed as a supplemental payment uncheck the box next to Supplemental. This only applies to Miscellaneous and Termination Pay Types.

18. Choose the Supplemental Tax Option by clicking on the (Federal Exemptions will be ignored if 'Supplemental Tax Options' are selected)

  • Apply Annuities to Supplemental
  • Apply Annuities to Regular
  • None

19. Once data is added for the employee, click on      If you do not want to add this record click on

Once the posting has been Saved if this posting needs to be deleted  click on the  button at the top left of the screen and then click the  next to the entry. You will be prompted asking if you are sure you want to delete this entry  if you click Delete the entry will be removed.

Supplemental Payments and Taxing Options

The software offers a choice as to how annuities may be applied to a Miscellaneous or Termination Pay Type The following examples illustrate the difference in tax withholding based on the way annuities are applied to payments (selecting either Taxing Option to Apply to Regular or Supplemental Wages when processing a miscellaneous or termination pay through PAYROLL PAYMENTS - CURRENT or FUTURE).

Note: If taxation option , Apply to Regular or Apply to Supplemental wages, is selected for a supplemental job and this payment is the only job being processed, any additional withholding amounts specified in the federal and/or state tax deduction records will NOT be withheld.

In the examples below, it is assumed that a regular teaching position is receiving a payment of $1619.04 and a supplemental payment of $3358.00.

**NOTE** The below calculations are based on the Federal Tax Table of 2018 

Example 1

Assume that the supplemental payment is entered as a Miscellaneous Pay Type and the Supplemental Tax Payment is selected as 'Apply Annuities to Regular' wages.

Federal tax calculations:
 
    $1619.04 Gross from teaching position
   -  462.86 Annuity
    --------
     1156.18 Gross subject to federal tax
   -   00.00 Exemption amounts (married with zero)
    --------
     1156.18 Federal taxable gross amount
 
According to the tax table calculations for percentage method of
withholding:
 
    $1156.18 Federal taxable gross amount
   -  444.00 Threshold amount for married and biweekly table
    --------
      712.18 Amount subject to 10% tax
 
      712.18
   x     .10
    --------
       71.22 Tax amount on regular teaching position
 
     3358.00 Supplemental wages
   x    .220 Supplemental tax rate
    --------
      738.76 Tax amount on supplemental wages
 
       71.22 Tax on teaching job
   +  738.76 Tax on supplemental job
    --------
      809.98 Total tax for employee

Example 2

Assume that the supplemental payment is entered as a Miscellaneous Pay Type and the Supplemental Tax Option is selected as 'Apply Annuities to Supplemental' wages.

Federal tax calculations:
 
    $1619.04 Gross from teaching position
 
     1619.04 Gross subject to federal tax
   -   73.30 Exemption amounts (married with zero)
    --------
     1545.74 Federal taxable gross amount
 
According to the tax table calculations for percentage method of
withholding:
 
    $1545.74 Federal taxable gross amount
   1177.00 Threshold amount for married and biweekly table
    --------
      368.74 Amount subject to 12% tax
 
      368.74
   x     .12
    --------
       44.25 Tax amount on regular teaching position
 
     3358.00 Supplemental wages
   -  462.86 Annuity
    --------
     2895.14 Amount subject to 22.0% tax
 
     2895.14 Amount subject to 22.0% tax
   x    .220 Supplemental tax rate
    --------
      636.93 Tax amount on supplemental wages
 
       44.25 Tax on teaching job
   +  636.93 Tax on supplemental job

    --------
      681.18 Total tax for employee


Applying the annuity to the regular wages (Example 1) results in a total tax of $809.98

Applying the annuity to the supplemental wages (Example 2) results in a total tax of $681.18

Both methods are compliant with IRS regulations regarding application of the annuity to the employee.

Using the Supplemental Tax Option field on Compensation screen to automatically select a taxing option for supplemental payments

CORE/COMPENSATION includes a field called Supplemental Tax Option. This is used to identify supplemental jobs and the associated taxing option to use with the job. Values for the field are "Apply Annuities to Supplemental, Apply Annuities to Regular, and None".

If "Apply Annuities to Regular" option is used, all amounts paid on this job will be taxed at the inflated supplemental rate using taxing (annuities applied to regular wages) during payroll calculation.  If "Apply Annuities to Supplemental" option is used, all amounts paid on this job will be taxed at the inflated supplemental rate (annuities applied to supplemental wages) during the payroll calculation. The current supplemental tax rate is 22.0% for federal taxes and 3.5% for Ohio taxes. The Compensation 'Supplemental Tax Option' should be set prior to Initializing the payroll or a delete and re-add will be required through Payroll Payments Current or Future to activate the field.

Note: If a 'Supplemental Tax Option' Type is selected for a supplemental job and this payment is the only job being processed, any additional withholding amounts specified in the federal and/or state tax deduction records will NOT be withheld.

INITIALIZING the payroll will check active compensations with the Supplemental Tax Options and add these compensations to the current payroll using the associated supplemental taxing option.

If a job is added in PAYROLL/PAYROLL PAYMENTS - Current or Future and that job has a "Apply Annuities to Supplemental" or "Apply Annuities to Regular" wages, the taxing option will be set automatically. The taxing option will appear in PAYROLL PAYMENTS/CURRENT OR FUTURE and can be modified on these supplemental jobs if necessary.

If payments made on a compensation always require taxation at the 22.0% rate, you could set the Supplemental Tax Option to "Apply Annuities to Supplemental" or "Apply Annuities to Regular" and taxation on all payments made to that compenstion would always be at the higher rate. This might be useful for coaching or other supplemental compensation. This may eliminate the need to miscellaneous pay some Compensations in PAYROLL PAYMENTS to activate the higher tax rate.

Specific Pay Accounts

Once the posting has been Saved but needs to be Modified, click on the button at the top left of the screen and then click the next to the entry. You can then make your changes or add Specific pay Accounts.  Click on  to save the account update.   Click on  to save the current record.


Errors

Error - PayAmount.rateNonZero: Rate must not equal zero. Pay amount rate could not be defaulted for selected Positions. A unit amount must be entered on the compensations for these positions. (Value: 'false')

Payroll Payments-Current Video


 



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