Payroll

Introduction

Payroll is a comprehensive module designed for the complex environments often found within K-12. Such organizations often deal with a multitude of benefit packages, including 125 plans and flexible spending accounts, deferred contract pay, special tax deferrals and retirement programs, to name a few. The Payroll module elegantly manages all such requirements. It provides tax tables and calculations for all 50 states, as well as providing for city and other local taxes. With direct integration into General Ledger, Job/Project Ledger, Position Control, Budgeting, Work Order Management, Accounts Payable, and Human Resources, the Payroll module is an important part of a fully integrated financial management solution designed for organizations that have a significant portion of the budget dedicated to personnel costs.

Features

Multiple organizational reporting entities are supported
Automatic labor and benefit distribution to General and Job Ledgers
Multiple GL/JL distributions per pay check/position are supported
Complies with Fair Labor Standard Act (FLSA) regulations
Weekly, bi-weekly, semi-monthly, monthly, and special payrolls are supported
Multiple versions of user-defined salary tables may be processed
City, State, Federal, and Canadian Territory tax calculations can all be processed
Automatic calculation of Deductions and Contributions is supported
Deduction and/or Contribution amounts may be limited on an employee-specific basis
All leave accrual methods are user-defined
Supports Direct Deposit processing to multiple bank accounts
Processes and records non-payroll information such as COBRA
Supports daily, weekly, and pay period timecard entry
Numbers of hours and rates may be derived based on rules defined by the user
A full logging facility is included
Reporting such as quarterly 941s and annual W-2s are supported.

Glossary of Payroll Terminology

Contribution: Amounts paid by the employer on behalf of the employee (e.g., FICA, Medicare, Life Insurance).
Deduction: Amounts subtracted from employee's earnings (e.g., FIT, SIT, FICA, Medicare, Wage Garnishment).
Direct Contributions: Amounts paid by the employer for purposes other than pay; this is any amount that increases an employee’s earnings but is not a result of normal pay (e.g., Uniform Allowance, Car Allowance).
FICA: Federally Insured Contributory Act (Social Security).
FIT: Federal Income Tax.
FLSA: Fair Labor Standards Act.
Fringe: All contributions.
Gross Pay: An employee's wages before taxes or other deductions.
Net Pay: Gross Pay plus Direct Contributions minus Deductions.
Pay Period: A seven-digit number, which represents a particular pay run.
SIT: State Income Tax.

Module Integration

Payroll's relationship with other BusinessPlus modules is as follows.

Accounts Payable (AP): Invoices may be automatically created in AP for liabilities resulting from a Payroll run using the AP Interface process.
Accounts Receivable (AR): Automatic posting of receivables generated by the issuance of pay advances may be processed using the AR Interface.
Bank Reconciliation (BK) Check Management: Check numbers, check dates, check status, and check stock ID are all posted to BK when payroll is distributed and paid. This allows check reconciliation independent of Payroll for internal control purposes.
Encumbrances (EN): Salaries and benefits may be encumbered and unencumbered based on what has been paid in a year and what is yet to be paid.
General Ledger (GL): Contributions, Deductions, Earnings, and Hours may all be posted to the GL in a variety of ways.
Human Resource (HR): Information in HR may be interfaced into or out of Payroll.
Job Ledger (JL): Contributions, Deductions, Earnings, and Hours may all be posted to the JL in a variety of ways.
Nucleus (NU): Security access restricted to individual menus and job dialogue or based on Entity. Maintains all GL/JL posting maps and strategies. Maintains all common code entries.
Person/Entity (PE): Name and address information may be stored in PE for use in Payroll.