Payroll User Guide

Version 9.0
February 2006
Document Number PRUG-90UW-01

Lawson Human Capital

Management
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Contents

List of Figures 19

Chapter 1 Overview of Payroll Application 21

Payroll: The Big Picture .............................................. 22

Payroll Process Flow.................................................. 23

Setup.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 23
Employee. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 23
Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 24
Payroll Cycle . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 24
Manual Processes. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 24
Reports . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 24

How Payroll Integrates With Other Lawson Applications .... 25

Integration with Other Human Resources Applications.. .. .. .. .. .. .. .. .. .. .. .. .. . 25
Integration to Other Lawson Applications . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 27
Integration to Third Party Applications .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 27
Additional Integrated Solutions. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 28

Chapter 2 Setting Up Pay Structure 29

Concepts in this Chapter............................................. 30

What are Pay Codes?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 30
What are Pay Summary Groups? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 32
What are Pay Classes? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 33
How are Pay Rates Calculated? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 34
What are Pay Plans?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 36
How does Payroll Calculate FLSA Overtime? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 37
What are Step and Grade Schedules?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 41
What is a Progressive Pay Plan? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 42
What are Exception, Offset Time Record Rules? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 42

Procedures in this Chapter .......................................... 44

Creating Step and Grade Schedules .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 46
Creating Shift Tables .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 52
DeÞning Pay Classes . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 53
DeÞning Pay Summary Groups .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 54
DeÞning Pay Summary Group Relationships. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 57
DeÞning Pay Codes . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 58
DeÞning Pay Plans .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 62

Payroll User Guide Contents 3

 DeÞning FLSA Overtime Pay Plans . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 64
Assigning Default Pay Plans . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 65
DeÞning Exception, Offset Time Record Rules. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 67

Chapter 3 Setting Up Time and Attendance 69

Concepts in this Chapter............................................. 70

What are Attendance Codes?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 70
What are Attendance Points? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 71
What are Attendance Classes? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 72

Procedures in this Chapter .......................................... 73

DeÞning Attendance Codes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 73
DeÞning Attendance Classes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 73

Chapter 4 Setting Up Tax Structure 75

Concepts in this Chapter............................................. 76

What is BSI? (U.S. and C.A.) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 76
What is a Tax Authority? (U.S. and C.A.) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 77
What is a Garnishment-Only Tax Authority? (U.S. and C.A.). .. .. .. .. .. .. .. .. .. . 78
What is a Tax Reporting Group? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 78
What are Report Entities? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 79
What are Related Report Entities? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 80

U.S. Procedures in this Chapter .................................... 81

DeÞning United States Tax Authorities .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 81
Creating U.S. Tax Reporting Groups .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 84

Canada Procedures in this Chapter ............................... 85

DeÞning Canada Tax Authorities. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 85
Creating Canada Tax Reporting Groups .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 87

Chapter 5 Setting Up Deduction Structure 89

Concepts in this Chapter............................................. 90

What are Deduction Classes? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 90
What is a Deduction Code? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 91
How does Payroll Calculate Deductions?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 93
In What Order does Payroll Apply Deductions to Employee Pay? . .. .. .. .. .. .. . 97
What is Arrears?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 97
What are Deduction Cycles? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 98
What is a Required Deduction? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..100
What is the Accounts Payable Interface? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..101

4 Contents Payroll User Guide

 Procedures in this Chapter ........................................ 102
DeÞning Deduction Classes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..102
DeÞning Deduction Required Codes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..102
DeÞning Deduction Codes.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..103

Chapter 6 Setting Up Workers’ Compensation 141

Concepts in this Chapter........................................... 142

What is a Workers’ Compensation Policy? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..142
What are Workers’ Compensation Classes? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..142
How do I Process Workers’ Compensation? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..143

U.S. Procedures in this Chapter .................................. 145

DeÞning a U.S. Workers’ Compensation Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..145
DeÞning U.S. Workers’ Compensation Classes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..146
Creating U.S. Workers’ Compensation Reports.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..148

Canada Procedures in this Chapter ............................. 150

DeÞning Canada Workers’ Compensation Classes.. .. .. .. .. .. .. .. .. .. .. .. .. .. ..150
Creating Canada Workers’ Compensation Reports.. .. .. .. .. .. .. .. .. .. .. .. .. .. ..151

Chapter 7 Setting Up Garnishments 155

Concepts in this Chapter........................................... 156

What are Garnishments? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..156
What are Garnishment Types?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..157
What are Garnishment Categories? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..158
What are Garnishment Rules? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..158
What are Garnishment Formulas?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..159
What Kinds of Employee Wages does Payroll use for Garnishments? .. .. .. ..160
How does Payroll Process Multiple Garnishments when there are Limited
Employee Wages? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..161
What are Garnishment Priorities? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..163
What are the U.S. Federal Limitations to Garnishments?. .. .. .. .. .. .. .. .. .. .. ..164
How does Payroll decide which Garnishment Rule to Use for each
Garnishment? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..164
How does Payroll Calculate the Amounts of Garnishments? . .. .. .. .. .. .. .. .. ..166

U.S. Procedures in this Chapter .................................. 170

Loading U.S. Federal Garnishment Rules .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..171
DeÞning U.S. Garnishment Types . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..171
DeÞning U.S. Garnishment Rules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..172

Canada Procedures in this Chapter ............................. 177

DeÞning Canada Garnishment Types . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..177
DeÞning Canada Garnishment Rules . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..178

Payroll User Guide Contents 5

Chapter 8 Setting Up Bank Codes 185

Concepts in this Chapter........................................... 186

What are Bank Codes? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..186
What is Direct Deposit? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..187
What is Prenoting? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..188
What do I need to Set Up to Use Direct Deposit?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..188
What are Payment and Receipt Formats? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..188

Procedures in this Chapter ........................................ 190

Adding Bank Accounts .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..190
DeÞning Bank Codes.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..191

Chapter 9 Setting Up Pension Funding Sources 193

Concepts in this Chapter........................................... 194

What are Funding Sources? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..194

Procedures in this Chapter ........................................ 195

Setting Up Funding Sources . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..195

Chapter 10 Setting Up Tips 197

Concepts in this Chapter........................................... 198

What are Allocation Levels?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..198
What is Shortfall Allocation? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..198
How does Tips Calculate the Shortfall Allocation Using Individual Gross
Receipts Method? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..198
How does Tips Calculate the Shortfall Allocation for the Hours Worked
Method? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..200
What do I need to Set Up Before I Use the Tips application? .. .. .. .. .. .. .. .. ..202

Procedures in this Chapter ........................................ 206

DeÞning Company Allocations . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..206
DeÞning Process Level Allocations .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..208
DeÞning Department Allocations. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..209
DeÞning Shift Allocations . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..210

Chapter 11 Employee: Pay 213

Procedures in this Chapter ........................................ 214

Assigning Employee Pay . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..214

6 Contents Payroll User Guide

Chapter 12 Employee: Taxes 217

Concepts in this Chapter........................................... 218

What is BSI TaxLocator? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..218
How Do I View and Modify Employee Tax Deductions?. .. .. .. .. .. .. .. .. .. .. .. ..220

U.S. Procedures in this Chapter .................................. 221

Setting Up TaxLocator for Employees. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..221
Maintaining Employee Tax Information for Tax Deductions . .. .. .. .. .. .. .. .. .. ..222
Viewing and Modifying Employee TaxLocator Deductions .. .. .. .. .. .. .. .. .. .. ..225
Correcting United States Tax Deduction Errors .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..226

Canada Procedures in this Chapter ............................. 228

Assigning Tax Deductions Manually to Existing Employees .. .. .. .. .. .. .. .. .. ..228
Assigning Required Tax Deductions to Existing Employees .. .. .. .. .. .. .. .. .. ..230
Assigning Tax Deductions to Newly Hired Employees .. .. .. .. .. .. .. .. .. .. .. .. ..231
Viewing and Modifying Canada Employee Tax Deductions. .. .. .. .. .. .. .. .. .. ..231

Chapter 13 Employee: Deductions 235

Concepts in this Chapter........................................... 236

What is a Deduction Balance Type?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..236

Procedures in this Chapter ........................................ 237

Assigning Required Deductions.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..237
Assigning Deductions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..239

Chapter 14 Employee: Workers’ Comp State 241

Concepts in this Chapter........................................... 242

How does Payroll Use the Workers’ Compensation State or Province?. .. .. ..242

Procedures in this Chapter ........................................ 243

Assigning Workers’ Compensation .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..243

Chapter 15 Employee: Garnishments 245

Procedures in this Chapter ........................................ 246

Assigning United States Employee Garnishments. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..246
Assigning Canada Employee Garnishments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..253

Payroll User Guide Contents 7

Chapter 16 Employee: Payroll Distributions 261

Concepts in this Chapter........................................... 262

What are Payroll Distributions? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..262

Procedures in this Chapter ........................................ 263

Assigning Payroll Distributions for Employees . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..263
Assigning Payroll Distributions for Positions.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..264

Chapter 17 Employee: Direct Deposit Distributions 267

Concepts in this Chapter........................................... 268

What are Direct Deposit Distributions?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..268

Procedures in this Chapter ........................................ 269

DeÞning and Authorizing Direct Deposits . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..269
Assigning Direct Deposit Distributions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..270

Chapter 18 Employee: Standard Time Records 275

Concepts in this Chapter........................................... 276

What are Standard Time Records?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..276

Procedures in this Chapter ........................................ 278

Assigning Standard Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..278

Chapter 19 Time Records: Overview 281

Time Record Process ............................................... 282

Time Record Procedures........................................... 283

Chapter 20 Time Records: Pre-entry Maintenance 285

Concepts in this Chapter........................................... 286

What are One-Time Deductions? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..286
What are Employee Groups? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..287

Procedures in this Chapter ........................................ 289

Maintaining One-Time Deductions. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..289
Creating or Updating Employee Groups .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..292

8 Contents Payroll User Guide

 Updating Pay Rates for Multiple Employees . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..293

Chapter 21 Time Records: Entering 295

Concepts in this Chapter........................................... 296

Which Time Record Entry Method Should I Use? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..296
What is a Time Record? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..298
What are Time Record Statuses? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..299
What is the Time Record Date?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..301
What is a Process Group?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..302
What is a Check Group?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..303

Procedures in this Chapter ........................................ 304

Entering Time Records for One Employee by Work Period. .. .. .. .. .. .. .. .. .. ..304
Entering Time Records for One Employee by Batch .. .. .. .. .. .. .. .. .. .. .. .. .. ..306
Entering Detailed Time Records for One Employee by Batch .. .. .. .. .. .. .. .. ..309
Entering Activity Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..312
Entering and Maintaining Current or Future Time Records . .. .. .. .. .. .. .. .. .. ..316
Speed Entering Time Records for Multiple Employees.. .. .. .. .. .. .. .. .. .. .. .. ..319
Entering Time Records for Multiple Employees .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..323
Entering Step and Grade or Grade Range Schedule Time Records. .. .. .. .. ..324
Entering Attendance Time Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..328
Entering Position Time Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..329
Creating Automatic Time Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..332
Deleting Batches .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..337

Chapter 22 Time Records: Pension Payments 339

Concepts in this Chapter........................................... 340

What are Pension Payments? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..340
What are Pension Distribution Types? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..340
What are Pension Distribution Codes?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..342
What Do I Need to Set Up to Process Pension Payments? .. .. .. .. .. .. .. .. .. ..342

Procedures in this Chapter ........................................ 344

Creating Periodic Pension Payments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..344
Creating Lump Sum Pension Payments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..347

Chapter 23 Time Records: Moving 351

Concepts in this Chapter........................................... 352

What is Moving Time Records? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..352
Why Would I Release and Select in Two Steps Rather Than One? . .. .. .. .. ..353

Payroll User Guide Contents 9

 Procedures in this Chapter ........................................ 354
Releasing Time Records from Batch to Future Status .. .. .. .. .. .. .. .. .. .. .. .. ..354
Selecting Time Records from Future to Current Status . .. .. .. .. .. .. .. .. .. .. .. ..355
Moving Time Records from Batch to Current Status in One Step .. .. .. .. .. .. ..357
Selecting One Time Record .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..359

Chapter 24 Payroll Cycle: Overview 361

Concepts in this Chapter........................................... 362

How Do I Prepare for Payroll Cycle Processing? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..362
Payroll Cycle: A Big Picture .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..363
Editing Time Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..364
Pre-cycle Maintenance.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..365
Calculating Earnings .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..366
Creating Payments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..367
Closing A Payroll Cycle . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..368
Troubleshooting.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..369

Chapter 25 Payroll Cycle: Editing Time Records 371

Concepts in this Chapter........................................... 372

Why Should I Identify Missing Time Records? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..372
How Do I Verify the Accuracy of Time Records?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..372
What Are Offset Time Records? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..373

Procedures in this Chapter ........................................ 374

Editing for Missing Time Records.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..374
Editing Time Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..377
Creating Offset Time Records.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..379
Creating a One-Time Deduction Listing . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..380
Deleting Flex Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..382

Chapter 26 Payroll Cycle: Pre-cycle Maintenance 383

Concepts in this Chapter........................................... 384

How do I Check on Payroll Cycle Status? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..385
What is the Tips Calculation? (U.S. and CA) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..386
How Do I Update Gross Receipts for Tipped Employees? (U.S. and CA) .. ..388
What is the Retroactive Pay Calculation? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..389
What is Arrears Automation?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..390

Procedures in this Chapter ........................................ 391

Verifying the Payroll Cycle Status . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..393
Calculating Tip Credit Records (U.S. and CA) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..393
Calculating Retroactive Pay .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..395

10 Contents Payroll User Guide

 Calculating FLSA Overtime (U.S. and CA) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..399
Creating Arrears Deductions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..401
Calculating the Cost of Excess Life Insurance . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..405

Chapter 27 Payroll Cycle: Calculate Earnings 407

Concepts in this Chapter........................................... 408

What Functions Does the Earnings and Deductions Calculation Perform? . ..408
What Options Are Available When Calculating Deductions and Net Pay? .. ..409
What are the Uses for the Payment Date on Earnings and Deductions
Calculation? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 411
How Do I Monitor Earnings and Deduction Calculation Reports?.. .. .. .. .. .. ..412
How Do I Process the Time Accrual Cycle Within the Payroll Cycle? . .. .. .. ..413

Procedures in this Chapter ........................................ 415

Verifying the Payroll Cycle Status . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..417
Calculating Deductions and Net Pay .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..417
Updating Deduction Changes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..422
Updating Enrollment Plan Changes . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..423
Updating Time Accrual Transactions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..423

Chapter 28 Payroll Cycle: Create Payments 427

Concepts in this Chapter........................................... 428

What Happens When I Run the Payment Print? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..428
What are Payroll Accruals?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..429

Procedures in this Chapter ........................................ 432

Verifying the Payroll Cycle Status . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..433
Printing Payments and Direct Deposit Receipts . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..433
Creating General Ledger Payroll Accruals.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..437
Creating the Payroll Register (U.S. and CA) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..439

Chapter 29 Payroll Cycle: Close 441

Concepts in this Chapter........................................... 442

What Functions Does the Payroll Close Perform? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..442
What is the Payroll Close General Ledger Date Used For? .. .. .. .. .. .. .. .. .. ..443
How is the General Ledger Updated With Payroll Transactions? .. .. .. .. .. .. ..444
What Function Does General Ledger Posting Perform? .. .. .. .. .. .. .. .. .. .. .. ..444

Procedures in this Chapter ........................................ 445

Verifying the Payroll Cycle Status . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..445
Closing the Payroll Cycle . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..446
Closing Time Accrual.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..448

Payroll User Guide Contents 11

 Posting to the General Ledger . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..449

Chapter 30 Payroll Cycle: Troubleshooting 451

Concepts in this Chapter........................................... 452

What Causes Errors in the Payroll Cycle? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..452
How Do I Correct Errors in the Payroll Cycle? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..452
What Do I Do When a Time Record is in Error Status? . .. .. .. .. .. .. .. .. .. .. .. ..453
How Do I Delete Processed Time Records? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..454
How Do I Recalculate Payments? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..455
How Do I Reprint Payments? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..456

Procedures in this Chapter ........................................ 457

Choosing a Procedure When Re-running Payroll .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..457
Deleting Processed Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..459
Recalculating Deductions and Net Pay Before Running Payment Print
(PR160). .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..460
Recalculating Deductions and Net Pay After Running Payment Print
(PR160). .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..463
Recalculating Deductions and Net Pay After Printing Actual Payments. .. .. ..464
Re-running Payments With Voids and Recreating the Direct Deposit Tape
File .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..465
Reprinting Payments and Recreating the Direct Deposit Tape File .. .. .. .. .. ..466

Chapter 31 Manual Processes: Payments 467

Concepts in this Chapter........................................... 468

What are Manual Payments? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..468
Why Reserve Checks for Manual Payments? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..468
Why Verify Time Accrual Balances and Dates for Manual Payments? .. .. .. ..469
When Should the Manual Payment Payroll Cycle be Closed? . .. .. .. .. .. .. .. ..469

Procedures in this Chapter ........................................ 470

Reserving Manual Payment Numbers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..472
Verifying Eligible Time Accrual Balances . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..473
Creating Manual Payments. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..473
Creating a Zero Gross Manual Payment.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..480
Adjusting Time and Attendance .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..480
Creating the Payroll Register. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..483
Adjusting Time Accrual . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..483
Closing the Payroll Cycle . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..485
Updating Time Accrual .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..485

12 Contents Payroll User Guide

Chapter 32 Manual Processes: Replacement Payments 487

Concepts in this Chapter........................................... 488

What is a Replacement Payment? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..488
Why Reserve Checks for Replacement Payments? . .. .. .. .. .. .. .. .. .. .. .. .. .. ..488

Procedures in this Chapter ........................................ 489

Reserving Replacement Payment Numbers.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..489
Creating a Replacement Payment. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..489

Chapter 33 Manual Processes: Adjustments 491

Concepts in this Chapter........................................... 492

What Kinds of Adjustments Can I Make? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..492
What Kinds of Payroll History ModiÞcations are not Performed Through
Adjustments? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..494
What is an Offset or Wash Deduction, and When do I Need to use These
Deductions on an Adjustment? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..495
What are Pension Payment Adjustments? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..496
When can I Adjust History?. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..496
How are Adjustments Processed through Time Accrual? . .. .. .. .. .. .. .. .. .. .. ..496
How Do Manual Adjustment Dates Affect the General Ledger?.. .. .. .. .. .. .. ..498

Procedures in this Chapter ........................................ 499

Creating Miscellaneous Adjustments.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..499
Creating Adjustments between Pay Codes. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..503
Creating Adjustments between Non-Tax Deductions .. .. .. .. .. .. .. .. .. .. .. .. .. ..505
Creating Adjustments between Tax Deductions and Wages associated with Tax
Deductions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..506
Creating Adjustments to move Wages between Taxable and Excess Wages 507
Creating Adjustments to Move Earnings Between Report Entities. .. .. .. .. .. ..510
Creating Adjustments to Record Repayment by an Employee of a Partial
Overpayment. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..513
Creating Adjustments to Record Payment by a Third-Party Payer. .. .. .. .. .. ..516
Editing General Ledger Entries Created by an Adjustment . .. .. .. .. .. .. .. .. .. ..519

Chapter 34 Manual Processes: Voids 525

Concepts in this Chapter........................................... 526

What Happens when I Void a Payment?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..526
When should I void a Payment? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..526
When will a Void affect Time Accrual? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..527

Procedures in this Chapter ........................................ 528

Voiding a Reserved Manual Payment Number . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..528
Verifying Time Accrual Dates When Voiding a Payment .. .. .. .. .. .. .. .. .. .. .. ..529

Payroll User Guide Contents 13

 Voiding a Payment .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..531
Voiding a Direct Deposit Receipt .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..534
Voiding a Partial Payment .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..535
Adjusting Attendance History .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..535

Chapter 35 Manual Processes: Payment Modeling 539

Concepts in this Chapter........................................... 540

What is Payment Modeling? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..540
When Do I Use Payment Modeling? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..541

Procedures in this Chapter ........................................ 542

Creating a Gross-to-Net Payment Model for an Existing Employee . .. .. .. .. ..542
Creating a Gross-to-Net Payment Model for a Hypothetical Employee . .. .. ..544
Creating a Gross-Up Payment Model for an Existing Employee . .. .. .. .. .. .. ..545
Creating a Gross-Up Payment Model for a Hypothetical Employee . .. .. .. .. ..548
Calculating a Gross Wage Amount from a Net Pay Amount.. .. .. .. .. .. .. .. .. ..549

Chapter 36 Manual Processes: Bank Reconciliation 555

Concepts in this Chapter........................................... 556

Should I Reconcile Payments Automatically or Manually?.. .. .. .. .. .. .. .. .. .. ..556
What Happens When a Payment is Reconciled? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..556

Procedures in this Chapter ........................................ 557

Verifying the Bank Tape File.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..557
Reconciling Payments Automatically .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..558
Reconciling Payments Manually . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..559
Running the Bank Reconciliation Report.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..562

Chapter 37 Manual Processes: Purge Data 563

Concepts in this Chapter........................................... 564

What is a Data Purge? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..564
What is Included in Payroll History? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..564

Procedures in this Chapter ........................................ 566

Purging Payroll History.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..566
Purging Employee Deduction History . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..568
Purging Tip Pay Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..571
Purging Time and Attendance Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..571
Purging Time Accrual History .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..573
Purging Transactions and Employees from Time Accrual Plans . .. .. .. .. .. .. ..574
Purging TaxLocator Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..576
Purging Employee Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..577

14 Contents Payroll User Guide

Chapter 38 Manual Processes: Tips 581

Concepts in this Chapter........................................... 582

What Happens When a Payroll Cycle is in Progress?. .. .. .. .. .. .. .. .. .. .. .. .. ..582
What Kind of Tip Adjustments Can I Make? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..582
How do I Close a Tip Manual Payment or Adjustment? . .. .. .. .. .. .. .. .. .. .. .. ..583

Procedures in this Chapter ........................................ 584

Creating Tip Manual Payments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..584
Adjusting Tip Pay Records for an Individual Employee . .. .. .. .. .. .. .. .. .. .. .. ..584
Adjusting Tip Pay Records for Multiple Employees .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..586
Closing a Manual Payment or Adjustment Using Tip Calculation .. .. .. .. .. .. ..587

Chapter 39 Manual Processes: Time and Attendance 589

Concepts in this Chapter........................................... 590

Where do I Enter Time and Attendance? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..590

Procedures in this Chapter ........................................ 591

Entering Employee Attendance History Manually Through Time and
Attendance . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..591
Entering Employee Attendance History Manually Through Payroll .. .. .. .. .. ..592
Adjusting Time and Attendance History . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..594

Chapter 40 Reports: Balancing Payroll 597

Concepts in this Chapter........................................... 598

What is Payroll Cycle Balancing?.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..598
How do I Close a Payroll Year? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..599

Procedures in this Chapter ........................................ 600

Preparing for Payroll Cycle Balancing. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..600
Balancing a Payroll Cycle .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..602
Performing Periodic, Month-End, Quarter-End, or Year-End Balancing . .. .. ..605
Closing a Payroll Year. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..608

Chapter 41 Reports: Tips 609

Concepts in this Chapter........................................... 610

What is the Hours Worked Method for Calculating Tip Shortfall? .. .. .. .. .. .. ..610
What is the Individual Gross Receipts Method? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..610
How do I Calculate Shortfall Allocation for Year End Reporting?. .. .. .. .. .. .. .. 611
How do I Calculate Tax Credit? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 611

Payroll User Guide Contents 15

 Procedures in this Chapter ........................................ 614
Adding Allocation Level Gross Receipts for the Hours Worked Method. .. .. ..614
Adding Individual Employee Gross Receipts for the Individual Gross Receipts
Method.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..616
Recording Gross Receipts for Individual Employees .. .. .. .. .. .. .. .. .. .. .. .. .. ..618
Adding Allocation Level Gross Receipts for the Individual Gross Receipts
Method.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..618
Calculating Tip Shortfall Allocations . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..620
Calculating Tip Tax Credit .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..623

Chapter 42 Reports: Payroll Government 627

Concepts in this Chapter........................................... 628

What are Excess Wages? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..628
Why might I Need to Adjust Weeks Worked? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..628
What do I Include in Unemployment Reporting? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..628
What is the Canada Record of Employment? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..629

Procedures in this Chapter ........................................ 630

Balancing Quarterly Unemployment Data and Reporting Excess Wages . .. ..630
Calculating and Adjusting Weeks Worked .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..633
Verifying Social Security Numbers for Employees . .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..634
Verifying Quarterly Reporting Information .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..634
Generating an Unemployment Continuation Form. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..637
Generating a File for Unemployment Magnetic Media .. .. .. .. .. .. .. .. .. .. .. .. ..638
Transferring the Final File to Diskette or Tape.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..639
Generating a File for New Hire Magnetic Media . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..641
Completing Canada Record of Employment . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..642
Printing W-2 Forms.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..644

Chapter 43 Reports: U.S. and Canada Workers’ Compensation 649

Concepts in this Chapter........................................... 650

How Do I Calculate Workers’ Compensation? . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..650

Procedures in this Chapter ........................................ 651

Submitting United States Third-Party Reports.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..651
Submitting Canada Third-Party Reports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..653

Appendix A Defaults and Overrides 657

Concepts in this Chapter........................................... 658

How to Read Payroll Defaulting Flow Charts . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..658

16 Contents Payroll User Guide

 General Ledger Accounts Defaulting ........................... 659
Clearing Account .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..659
Noncash Account.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..660
Wage Expense Account .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..660
Company-paid Deduction Expense Account . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..663
Deduction Accrual Company and Accounting Unit .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..664

Rate of Pay Defaults................................................. 667

Pay Rate Defaulting without Positions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..667
Pay Rate Defaulting with Positions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..670
Key Pay Rate Defaulting Fields .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..672

Time Record Defaults ............................................... 677

Distribution Process Level and Department Defaulting.. .. .. .. .. .. .. .. .. .. .. .. ..677
Job Code and Shift Defaulting with Positions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..679
Grade Range Schedule Defaulting .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..679
Step and Grade Range Schedule Defaulting . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..682

Appendix B U.S. Garnishment Formulas 683

Wage Exemption Formulas. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..683

Appendix C Documentation Conventions and Support 695

Documentation Conventions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..695

Index 699

Payroll User Guide Contents 17

18 Contents Payroll User Guide
List of Figures
Chapter 2 Setting Up Pay Structure
Figure 1. Example: Pay codes.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 31
Figure 2. Example: Pay Summary Groups, and Pay Codes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 32
Figure 3. Pay classes, pay summary groups, and pay codes . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 33
Figure 4. Example: Hours entered for FLSA overtime . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 39
Figure 5. Example: FLSA overtime calculated for Janet . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 40
Figure 6. Example: FLSA overtime time records create for Janet .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 40
Figure 7. Procedure relationship: Set up pay structure .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 45

Chapter 4 Setting Up Tax Structure

Figure 8. Example: BSI Companies.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 77
Figure 9. Example: Tax reporting groups .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 79
Figure 10. Procedure ßow: DeÞning U.S. Tax Authority.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 82
Figure 11. Procedure ßow: DeÞning Canada Tax Authorities.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 86

Chapter 6 Setting Up Workers’ Compensation

Figure 12. Process ßow: Workers’ Compensation.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..143
Figure 13. Procedure relationship: Set Up U.S. Workers Compensation .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..145

Chapter 7 Setting Up Garnishments

Title 1. United States Pre-DeÞned Garnishment Types .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..157
Title 2. Canada Pre-DeÞned Garnishment Types . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..157
Title 3. Garnishment Categories .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..158
Figure 14. U.S.garnishment rule defaulting logic . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..165
Figure 15. Procedure relationship: Setting up U.S. garnishments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..170
Figure 16. Procedure ßow: Setting up Canada garnishments. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..177

Chapter 8 Setting Up Bank Codes

Figure 17. Example: Bank codes . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..186
Figure 18. Procedure relationship: DeÞning Bank Codes.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..190

Chapter 15 Employee: Garnishments

Figure 19. Procedure ßow: Assigning United States Employee Garnishments . .. .. .. .. .. .. .. .. .. .. .. .. .. ..248
Figure 20. Procedure Flow: Assigning Canada employee garnishments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..255

Chapter 21 Time Records: Entering

Figure 21. Time Record Entry: Deciding which method to use.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..298
Figure 22. Time Record example . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..299
Figure 23. Example: Time Record Date . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..301
Figure 24. Example: Check Group Time Records .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..303

Payroll User Guide List of Figures 19

Chapter 23 Time Records: Moving
Figure 25. Moving Time Records . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..352

Chapter 24 Payroll Cycle: Overview

Figure 26. Payroll Cycle Big Picture.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..363

Chapter 26 Payroll Cycle: Pre-cycle Maintenance

Figure 27. Example: Checking the Payroll Cycle Status. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..385
Figure 28. Procedure relationship: Payroll Cycle: Pre-cycle Maintenance .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..392

Chapter 27 Payroll Cycle: Calculate Earnings

Figure 29. Example: Completing the Earnings and Deductions Calculation. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..409
Figure 30. Example: Processing the Earnings and Deductions Calculation . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..409
Figure 31. Example: Earnings and Deductions Payment Dates .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 411
Figure 32. Example: Time Accrual and Payroll Cycle Processing integration . .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..414
Figure 33. Procedure Flow: Calculate Earnings .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..416

Chapter 28 Payroll Cycle: Create Payments

Figure 34. Example: Time Records and Payment Print.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..428
Figure 35. Example: Processing Payment Print .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..429
Title 4. Example: Comparison of Accrual Functions.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..430
Figure 36. Procedure relationship: Payroll Cycle: Create Payments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..432

Chapter 29 Payroll Cycle: Close

Title 5. Example: Payroll Close General Ledger Dates .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..443
Figure 37. Procedure Relationship: Payroll Close .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..445

Chapter 31 Manual Processes: Payments

Figure 38. Procedure Flow: Manual Payments . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..471
Figure 39. Procedure ßow: Creating manual payments.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..475

Chapter 35 Manual Processes: Payment Modeling

Figure 40. Procedure relationship: Gross Up payments in unique payroll cycle .. .. .. .. .. .. .. .. .. .. .. .. .. ..549
Figure 41. Procedure relationship: Gross Up payments within a regular payroll cycle . .. .. .. .. .. .. .. .. .. ..551

Chapter 40 Reports: Balancing Payroll

Title 6. Example: Spreadsheet of all Payroll Register totals . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..600
Title 7. Example: Comparing output reports for balancing a payroll cycle . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..604
Title 8. Example: Validate Payroll Register (PR141) against balancing reports . .. .. .. .. .. .. .. .. .. .. .. .. .. ..605
Title 9. Example: Balance Payroll Register (PR141) with grand totals . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..607

20 List of Figures Payroll User Guide

Chapter 1

Overview of Payroll Application

The Lawson® Payroll is a comprehensive system for generating and

maintaining all payroll-related information, including payment writing, labor
distribution, quarterly reporting, and W-2 processing. When integrated with
the Lawson Human Resources application and related Lawson systems,
the Payroll is a management tool capable of handling all of your human
resource needs.
This user guide also covers the Tips application and Time and Attendance.

Payroll User Guide Chapter 1 Overview of Payroll 21

Application
Payroll: The Big Picture
This user guide is structured in six sections to reßect payroll business
processes:
• Setup
• Employee
• Time Records
• Payroll Cycle
• Manual Processes
• Reports
The big picture ßow illustrates Payroll’s main processes, breaks the processes
down into sub-processes, and serves as a reminder of where you are in the
big picture.
Manual
Setup Employee Time Records Payroll Cycle Reports
Processes

Pay Structure Absence Overview Overview Payments Balancing

Attendance Pay Pre-entry Edit Time Replacement Payroll

Management Maintenance Records Payments Government

Absence Taxes Creating Pre-cycle Adjustments

Management Maintenance

Tax Structure Deductions Pension Calculate Voids

Payments Earnings

Deductions Attachment of Moving Create Payment

Earnings Payments Modeling

Attachment of Payroll Close Bank

Earnings Distributions Reconciliation

Bank Codes Deposit Trouble- Purge Data

Distributions shooting

Standard Time Attendance

Funding Sources
Records Management

22 Chapter 1 Overview of Payroll Application Payroll User Guide

Payroll Process Flow
The Payroll’s functionality can be divided into seven parts:
• Setup
• Employee
• Time Records
• Payroll Cycle
• Manual Processes
• Reports
This section provides an overview of each of these main processes.

Setup
Before using the Payroll, you must consider your payroll, beneÞts, tips, and
time and attendance needs. Then determine the structure that best Þts those
needs.
When you set up your Payroll, you deÞne the following elements:
• Pay Structure
• Time Accrual or Absence Management
• Tax Structure
• Deduction Structure
• Workers’ Compensation
• Garnishments
• Bank Codes
• Funding Sources
• Tips

Employee
After you set up the Payroll, you must assign payroll elements to employees
before you can enter time records and process payroll.
You can assign the following elements to employees:
• Pay
• Taxes
• Deductions
• Workers’ Compensation State
• Garnishments
• Payroll Distributions
• Direct Deposit Distributions
• Standard Time Records

Payroll User Guide Chapter 1 Overview of Payroll 23

Application
Time Records
To process a payroll cycle you must enter time records for employees. To
enter time records you perform the following tasks:
• Pre-Entry Maintenance
• Create Time Records
• Create Pension Payment Records
• Move Time Records

Payroll Cycle
To process a payroll cycle you can complete the following tasks:
• Edit Time Records
• Pre-Cycle Maintenance
• Calculate Earnings and Deductions
• Create Payments
• Close Payroll
• Troubleshoot the Payroll Cycle

Manual Processes
Manual processes let you perform payroll functions outside of the regular
payroll cycle. You can perform the following tasks outside of the regular
payroll cycle:
• Manual Payments
• Replacement Payments
• Adjustments
• Payment Modeling
• Bank Reconciliation
• Purge Data
• Tips
• Time and Attendance

Reports
Throughout the year you create reports that let you balance Payroll for each
pay cycle, month, quarter, and year. Payroll provides the functionality to
create many of the reports required by the governments of the US, Canada,
and the U.K. Payroll also provides reports for balancing and verifying data in
the Payroll.

24 Chapter 1 Overview of Payroll Application Payroll User Guide

How Payroll Integrates With Other
Lawson Applications
This chapter explains how the Lawson Payroll interfaces with other Lawson
applications.

Integration with Other Human Resources Applications

This section describes the integration of Payroll to the others within Human
Capital Management.
• "Payroll to Time and Attendance" on page 25
• "Payroll to Tips (U.S. and C.A.)" on page 25
• "Payroll to Time Accrual" on page 25
• "Payroll to BeneÞts Administration" on page 25
• "Human Resources to Payroll" on page 26
• " Time Accrual to Payroll" on page 26
• "BeneÞts Administration to Payroll" on page 26

Payroll to Time and Attendance

Time and Attendance codes are tied to pay codes, position codes, or
employee codes and are used in payroll processing. Every time you run and
close a payroll cycle, the Time and Attendance application is updated with
any occurrences of Time and Attendance codes tied to pay codes in that
payroll cycle.

Payroll to Tips (U.S. and C.A.)

You give pay summary groups an indicator that deÞnes each group as direct
or indirect tips. Payroll stores this indicator on an ongoing basis every time
you run the payroll cycle. Tips reports are driven off of this indicator.

Payroll to Time Accrual

Payroll provides the pay records for Time Accrual to track hours used,
accruals, and plan eligibility.

Payroll to BeneÞts Administration

When you close a payroll cycle, Payroll updates BeneÞts Administration
history. This update includes savings bond year-to-date contributions and
vesting and compensation related to deÞned contributions and deÞned
beneÞts.

Payroll User Guide Chapter 1 Overview of Payroll 25

Application
 Human Resources to Payroll
The HR application is the center of all other Human Resources applications.
HR provides the employee information for payroll. It also provides employee
grouping and HR codes that qualify employees for beneÞts and track
certiÞcations and education.

Time Accrual to Payroll

Time record entry in Payroll reads Time Accrual balances for errors, in case
an employee is using hours not yet earned.

BeneÞts Administration to Payroll

Through the enrollment screens in BeneÞts Administration, the payroll
deductions are created in the Employee Deduction master for the beneÞts
that the employee chooses. Sequence numbers are assigned to these beneÞt
and deduction records so that multiple enrollments are tracked.

Personnel Administration to Payroll

Depending on your setup, position information from the Personnel
Administration application can default to employee time records.

26 Chapter 1 Overview of Payroll Application Payroll User Guide

Integration to Other Lawson Applications
This section describes the integration of the Payroll with Lawson applications
outside of Lawson Human Capital Management.
• "Payroll to Project Accounting" on page 27
• "Payroll to General Ledger" on page 27
• "Payroll to Accounts Payable" on page 27

Payroll to Project Accounting

As Payroll incurs expenses, the expenses represent a commitment to an
activity. When you select time records with an activity attached to them,
Payroll creates commitments in the Project Accounting Commitment Þle.
When you close a payroll cycle, all accounting distributions associated with
an activity are posted to the Activity Transaction Þle.

Payroll to General Ledger

Periodically, you post payroll information to the general ledger. When you post
to the General Ledger application, all accounting distributions associated with
that payroll cycle are created in the General Ledger Transaction Þle.
If you have GL Commitments deÞned in General Ledger, Payroll will interface
expense amounts to Genral Ledger.

Payroll to Accounts Payable

When you close a payroll cycle, the Payroll application can send payroll liability
information such as beneÞt deductions, garnishments, and employment tax
to the Accounts Payable application for payment.

Integration to Third Party Applications

This section describes the integration of the Payroll application with third-party
(non-Lawson) applications.

BSI to Payroll (U.S. and C.A.)

BSI maintains the correct tax tables for employee tax deductions. When you
create earnings and deductions, the Payroll application uses the tax tables
from BSI to create employee tax deductions.

Payroll User Guide Chapter 1 Overview of Payroll 27

Application
Additional Integrated Solutions
Human Capital Management integrates with additional solutions to augment
and enhance the functionality of your Lawson products.

Lawson Employee and Manager Self-Service

Lawson Employee and Manager Self-Service gives employees and managers
access to vital information over your organization’s intranet. Lawson
Employee and Manager Self-Service lets the HR and Payroll departments
avoid excessive manual data entry by letting employees and managers
update their own information. Your organization determines what information
is available for employees and managers to view or update. Employees and
managers access the information whenever and wherever it is needed.

28 Chapter 1 Overview of Payroll Application Payroll User Guide

Chapter 2

Setting Up Pay Structure

This chapter covers how to set up the structure that the Payroll application
uses to calculate pay for a company’s employees, including overtime pay,
where pay is expensed, and where pay history is stored.

STOP Before you set up pay structure, you must set up the Human
Resources application. For more information, see the Human Resources
User Guide.

Payroll User Guide Chapter 2 Setting Up Pay Structure 29

Concepts in this Chapter
TIP For more The following concepts provide background and conceptual information for
information, see the procedures within this chapter.
"Procedures in this
Chapter" on page 44. • "What are Pay Codes?" on page 30
• "What are Pay Summary Groups?" on page 32
• "What are Pay Classes?" on page 33
• "How are Pay Rates Calculated?" on page 34
• "What are Pay Plans?" on page 36
• "How does Payroll Calculate FLSA Overtime?" on page 37
• "What are Step and Grade Schedules?" on page 41
• "What is a Progressive Pay Plan?" on page 42
• "What are Exception, Offset Time Record Rules?" on page 42

What are Pay Codes?

You enter pay codes on time records to indicate what type of pay the
employee receives. Pay codes deÞne the following:
• How pay is calculated
• Where pay is expensed to in the general ledger (optional)
Pay codes can be alphabetic or numeric. For time card entry, numeric codes
are usually more efÞcient.
You must assign each pay code to a pay summary group. For more
information, see "What are Pay Summary Groups?" on page 32.

Overtime Pay Codes

When you deÞne an overtime pay code, you deÞne regular and overtime
premium rates separately. You need to deÞne these separately for use
in special calculations, such as FLSA overtime due to an employee and,
optionally, for separate expensing of regular and premium pay.

Shift Pay Codes

You can set up pay codes to use for different shifts. You can set up shift pay
with up to four ßat amount shift differentials or percentage shift differentials; or
you can set up shift pay codes to use a shift table. Shift tables allow up to
nine shifts with different rates deÞned by job code, grade range schedule, or
step and grade schedules.

Example
The Two Rivers Company deÞned the following pay codes (for clarity, these
examples are alphabetic codes).

30 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Kind of Pay Pay Code
Regular pay REG
West Coast Shift SHW
East Coast Shift SHE
Overtime 1 OT1
Overtime 2 OT2
Vacation VAC
Sick Pay SIK
Indirect Tips ITP
Direct Tips DTP
Bonus BNS
Cell Phone CEL
Group Term Life GTL

Figure 1. Example: Pay codes

Pay Codes REG SHW SHE OT1 OT2 VAC SIK ITP DTP BNS CEL GTL

Payroll User Guide Chapter 2 Setting Up Pay Structure 31

What are Pay Summary Groups?
A pay summary group combines one or more pay codes for the following
purposes:
• Store pay history
• Determine how the Payroll system calculates taxes on pay
• Determine the description of pay that prints on payments, direct deposit
receipts, and reports
• DeÞne parameters for FLSA overtime calculation
• DeÞne the tax reporting form associated with United States pay
• DeÞne the type of tip pay for a tipped payment
To deÞne which pay codes belong to which pay summary group, you attach a
pay summary group to each pay code. Each pay code can only belong to one
pay summary group, but a pay summary group can have any number of pay
codes. For more information, see "What are Pay Codes?" on page 30.
You deÞne pay summary group relationships between pay summary groups
and pay classes. You can tie a pay summary group to more than one pay
class to apply different edits and calculations, and to use for reporting. If a pay
summary group does not require special edits or calculations or you do not
have special reporting needs, you do not need to deÞne a relationship with a
pay class. For more information, see "What are Pay Classes?" on page 33.

Example
The Two Rivers Company has grouped their pay codes into the following
pay summary groups:
Figure 2. Example: Pay Summary Groups, and Pay Codes
REG SFT OVT VAC SIK ITP DTP BNS CEL GTL
Pay Summary
Groups

REG SHW SHE OT1 OT2 VAC SIK ITP DTP BNS CEL GTL

Pay Codes

In this example, the pay code for the west coast shift, SHW, and the pay
code for the east coast shift, SHE, are grouped into a pay summary group
SFT to provide a common description on their payments. Also, the history for
both Overtime 1 (OT1) and Overtime 2 (OT2) is stored together in the pay
summary group OVT.

32 Chapter 2 Setting Up Pay Structure Payroll User Guide

What are Pay Classes?
Pay Classes group pay summary groups for:
• Performing special calculations
• Applying special system edits
• Reporting
Pay summary groups can be associated with more than one pay class.
The Human Resources application automatically creates three pay classes
if you deÞne them when you create a company:
• Overtime—Edits against paying overtime to exempt employees.
Commonly abbreviated as OVT.
• Noncash—Administers the proper calculation of non-cash income.
Commonly abbreviated as NON.
• Tip Pay—Allows for entry of both hours and amount on time record without
being multiplied together. Applies edits using Tip pay for non-tipped
employees. Commonly abbreviated as TIP.
You can deÞne other pay classes for reporting or to use with other Human
Resources applications. For example, you can deÞne a vacation or sick pay
class to track usage in the Time and Attendance application, or deÞne a pay
class to calculate deductions based on certain types of pay.
There is no limit on the number or type of pay classes you can create;
however, you must deÞne the overtime, non-cash, and tips pay classes on
the HR company or Payroll will not activate special hard-coded edits and
calculations.

Example
The Two Rivers Company established the following pay classes:
• VAC—used with the Time and Attendance application to track usage
of vacation time.
• GTL—used for W-2 reporting of taxable Group Term Life Insurance
premiums.
• OVT—used for the special edit against paying overtime to exempt
employees.
• NON—used to calculate non-cash income.
• ITP and DTP—both used for tips to allow for the entry of both hours and
amounts on the time records without the Þgures being multiplied together.
Figure 3. Pay classes, pay summary groups, and pay codes
Pay Classes OVT VAC SIC TIP NON GTL

Pay Summary
Groups REG SFT OVT VAC SIK ITP DTP BNS CEL GTL

REG SHW SHE OT1 OT2 VAC SIK ITP DTP BNS CEL GTL
Pay Codes

Payroll User Guide Chapter 2 Setting Up Pay Structure 33

How are Pay Rates Calculated?
The calculation type you select on the pay code determines how Payroll
calculates the associated pay:
NOTE For more Normal Rate—The rate on the time record (using pay rate defaulting logic) is
information, see used to calculate earnings.
"Defaults and Overrides"
on page 657. • Hourly: Hours * Rate = Gross Pay
• Salaried: Annual Salary / the number of Pay Periods (as deÞned by
the employee’s Pay Frequency) = Gross Pay.
Percentage Rate—A percentage is entered in the Rate Þeld, the Premium
Þeld, or both on the pay code.
• Hourly: Rate * Percentage * Hours = Gross Pay
• Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate
Hourly Rate * Percentage * Hours = Gross Pay
Rate Shift Differential—Payroll uses the shift on the employee record, which
can be overridden on the time record, and the shifts or shift table on the pay
code to calculate the shift differential.
• Hourly: (Rate + Shift Differential) * Hours = Gross Pay
• Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate
(Hourly Rate + Shift Differential) * Hours = Gross Pay
Percent Shift Differential—Payroll uses the shift on the employee record,
which can be overridden on the time record, and the shifts or shift table on the
pay code to calculate the shift differential.
• Hourly: [Rate + (Rate * Shift Diff)] * Hours = Gross Pay
• Salaried: Annual Salary /(Annual Hours * FTE) = Hourly Rate
[Hourly Rate + (Hourly Rate * Shift Diff)] * Hours = Gross Pay
Percentage with Rate Shift Differential—Combines the calculation types
Percentage Rate and Rate Shift Differential. Payroll uses the shift on the
employee record, which can be overridden on the time record, and the shifts
or shift table on the pay code to calculate the shift differential.
• Hourly: (Rate + Shift Differential) * Percentage = New Rate
New Rate * Hours = Gross Pay
• Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate
(Hourly Rate + Shift Differential) * Percentage = New Rate
New Rate * Hours = Gross Pay
Percentage with Percentage Shift Differential—Combines the calculation
types Percentage Rate and Percent Shift Differential. Payroll uses the shift on

34 Chapter 2 Setting Up Pay Structure Payroll User Guide

 the employee record, which can be overridden on the time record, and the
shifts or shift table on the pay code to calculate the shift differential.
• Hourly: [Rate + (Rate * Shift Diff)] * Percentage = New Rate
New Rate * Hours = Gross Pay
• Salaried: Annual Salary / (Annual Hours * FTE) = Hourly Rate
[Hourly Rate + (Hourly Rate * Shift Diff)] * Percentage = New Rate
New Rate * Hours = Gross Pay
Additional Flat Rate—An additional ßat rate is entered on the pay code,
the employee record, or the time record to be paid to the employee. Payroll
ignores any hours entered on the time record.
Noncash Income—Payment-in-kind, such as automobile allowance, moving
expenses, or excess group term life. The amount of a non-cash pay code
is added to gross wages and taxable wages, and is subtracted out before
Payroll calculates Net Pay.
Hours Only—Payroll uses this calculation type to track only the hours
associated with an event, such as eligible hours for beneÞt purposes or
to track leaves of absence.
Custom Calculation—You can establish a unique calculation logic to
associate with this calculation type.

Example
Based on the pay structure established by Two Rivers Company, they deÞned
the following pay code calculations.
Pay Code Calculation Type Additional Information
REG Normal Rate
REG% Regular Percent Rate = 100%, to be used to
calculate an hourly rate for
salaried employees.
SHW Rate Shift Differential Shifts = 0, .25, .50, .75
SHE Percent Shift Differential Shifts = 5, 10, 15, 20
OT1 Percentage Rate Rate = 100% / Prem = 50%
OT2 Percentage with Rate Shift Rate = 100% / Prem = 50%
Differential
Shifts = 0, .25, .50, .75
VAC Normal Rate
SIK Normal Rate
ITP
DTP
BNS Normal Rate
CEL Non-cash Income Rate = 100.00
ELG Hours Only

Payroll User Guide Chapter 2 Setting Up Pay Structure 35

What are Pay Plans?
Pay plans deÞne the pay and work periods Payroll uses during payroll
processing. Optionally, pay plans deÞne how Payroll calculates overtime to
meet FLSA requirements or collective bargaining agreement requirements.
Payroll requires separate overtime plans for different work periods and pay
frequencies, and for other differences such as daily overtime calculation and
Þxed or ßuctuating work periods for salaried employees. For more information,
see "How does Payroll Calculate FLSA Overtime?" on page 37.
Payroll uses the Þrst pay-period end date, the pay frequency, the Þrst
work-period end date, and the number of days in the work period deÞned on
the pay plans to create pay periods and work periods for a year, plus one
period into the next calendar year.
When you close Payroll for the year, Payroll creates the next calendar year
pay periods and work periods using the parameters on the pay plan.
You must assign a pay plan to every employee in your company so that pay
period ending dates can be derived based on the time record dates.
For employees exempt from overtime or employees for which you do not
calculate FLSA Overtime, you can assign pay plans to the employees by pay
frequency, by process levels, or by the company as a whole.
For employees who are not exempt from overtime, you must select an FLSA
overtime pay plan on each of the employees’ records.

Example
River Bend Hospital pays employees using bi-weekly and monthly pay
frequencies, and deÞned the following pay plans for 2001:

BWEX—Bi-Weekly Exempt Pay Schedule

BWEX is assigned to all Bi-weekly exempt employees in the company.
• First pay period end date = January 13, 2001
Pay frequency = Bi-Weekly

MEX—Monthly Exempt Pay Schedule

MEX plan is assigned to all Monthly exempt employees in the company.
• First pay period end date = January 31, 2001
• Pay frequency = Monthly

36 Chapter 2 Setting Up Pay Structure Payroll User Guide

How does Payroll Calculate FLSA Overtime?
TIP If you do not Overtime pay plans provide the parameters to calculate overtime for FLSA
need to calculate FLSA (Fair Labor Standards Act) requirements. FLSA is a United States act.
overtime, you do not
need to create overtime There are two options for calculating overtime pay plans:
pay plans. You can use
overtime pay codes on • "Calculating Overtime Hours" on page 37
your time records to • "Supplying Overtime Hours" on page 38
process overtime.

Calculating Overtime Hours

NOTE Overtime hours The Calculated Hours method calculates the number of overtime hours an
are the number of hours employee works based on the plan parameters, and applies the weighted
worked in excess of average rate to all overtime records.
the daily or work period
maximum deÞned on the If you choose to calculate overtime hours, Payroll calculates overtime in the
pay plan. following steps:
1. Payroll calculates gross pay for each time record in the work period.
• For hourly employees, Payroll multiplies the number of hours on the
time record by the pay rate to calculate the work period gross.
• For salaried employees, Payroll divides the employee’s annual salary
from the employee record by the number of work periods in a year.
For example, for 7-day work periods, annual salary is divided by 52 to
get the work period gross. This might be different from the calculation
of wages for a pay period.
NOTE You deÞne 2. Payroll calculates the weighted average rate of pay for the work period by
eligible hours and wages dividing the total eligible wages by the total eligible hours.
on pay summary groups.
Payroll compares the weighted average rate with the minimum wage. If
the weighted average rate is less than the minimum wage, the minimum
wage replaces the weighted average rate used in the calculation of
overtime.
If you deÞne the overtime plan with a Þxed number of hours in the work
period, Payroll uses the Þxed number of hours in the calculation rather
than the actual hours worked.
3. Payroll calculates overtime hours for the work period.
4. Payroll calculates overtime pay for the work period by multiplying the
weighted average rate of pay by the overtime premium rate. The result is
then multiplied by the number of overtime hours.

Payroll User Guide Chapter 2 Setting Up Pay Structure 37

 Overtime credit is the sum of all premium wages paid (the additional
“premium” portion of pay, such as a shift differential). This premium pay is
only credited against the overtime calculation if it is ßagged as Yes in the
Eligible Premium Credit Þeld on the pay summary group.
5. Payroll calculates overtime credit for the work period.
6. Payroll calculates the overtime adjustment pay-code amount for the work
period by subtracting the overtime amount credited (step 5) from the
required overtime amount (step 4).

IMPORTANT If the amount credited is more than the overtime adjustment

amount, the system does not create a time record.

7. The overtime time records that are associated with the overtime pay class
are updated to use the weighted average rate of pay calculated in Step 2.

Supplying Overtime Hours

NOTE Overtime hours The Supplied Hours method applies the weighted average rate to overtime
are the number of hours hours which you enter into the application.
worked in excess of
the daily or work period If you choose to supply overtime hours, Payroll calculates overtime in the
maximum deÞned on the following steps:
pay plan.
1. Payroll calculates gross pay for each time record in the work period.
• For hourly employees, the system multiplies the number of hours on
the time record by the pay rate to calculate the work period gross.
• For salaried employees, the system divides the employee’s annual
salary by the number of work periods in a year. For example, for
7-day work periods, annual salary is divided by 52 to get the work
period gross. This might be different from the calculation of wages
for a pay period.
NOTE You deÞne 2. Payroll calculates the weighted average rate of pay for the work period by
eligible hours and wages dividing the total eligible wages by the total eligible hours.
on pay summary groups.
Payroll compares the weighted average rate with the minimum wage. If
the weighted average rate is less than the minimum wage, the minimum
wage replaces the weighted average rate used in the calculation of
overtime.

Example
Two Rivers deÞnes the following FLSA overtime pay plan:

38 Chapter 2 Setting Up Pay Structure Payroll User Guide

 BWNE—Bi-Weekly Non-Exempt FLSA Overtime Pay
Schedule
This overtime pay plan calculates overtime on all time records in excess of
eight hours. Two Rivers uses daily time records for employees with this pay
plan.
• Calculate Overtime Hours = Yes
• First pay period end date = 1/13/01
• Pay Frequency = Bi-weekly
• First work period end date = 1/5/01
• Days in a work period = 7
• Hours in a work period = 40
• Maximum Hours per day = 8
• Overtime Premium Rate = 50.00
• Overtime Pay Code = FLSA
• Work Period = Fixed
This plan is assigned to all Bi-weekly non-exempt employees in the company.

FLSA Overtime Calculation

The payroll clerk at Two Rivers enters the following time records for Janet.
Figure 4. Example: Hours entered for FLSA overtime

Janet is assigned the Bi-weekly Non-Exempt pay plan, which deÞnes the
regular hours in a work period as 40 and the overtime premium rate as 50
percent.
When the payroll manager processed the Overtime Calculation in update
mode, the following calculation was completed for the work period ending
January 3, 2001:
1. Eligible Wages = 245.00
Eligible Hours = 42
2. 245.00 / 42 = 5.83 average weighted rate of pay
3. 42 - 40 = 2 overtime hours
4. 5.83 x 50% x 2 = 5.83 overtime pay
5. Premium Credit = $0.00
6. 5.83 - $0 = 5.83 overtime due the employee
The following calculation was completed for the work period ending January
10, 2001:
1. Eligible Wages = 230.00

Payroll User Guide Chapter 2 Setting Up Pay Structure 39

 Eligible Hours = 42
2. 230 / 42 = 5.48 average weighted rate of pay
3. 42 - 40 = 2 overtime hours
4. 5.48 x 50% x 2 = 5.48 overtime pay
5. Premium Credit = 0.00
6. 5.48 - $0 = 5.48 overtime due the employee
Figure 5. Example: FLSA overtime calculated for Janet

Therefore, the following FLSA time records were created for the overtime
due to the employee:
Figure 6. Example: FLSA overtime time records create for Janet

40 Chapter 2 Setting Up Pay Structure Payroll User Guide

What are Step and Grade Schedules?
Step and grade schedules are matrixes of pay rates based on graduated
steps and grades.
When you assign an employee to a speciÞc schedule, grade, and step on the
employee record, the employee’s pay rate defaults from the schedule. When
you change the schedule, the pay rate changes for all employees assigned
to that schedule.
If you choose, you can create a step and grade shell (an empty matrix) and
indicate the amount or percentage increase of the steps and grades, and
Payroll computes and Þlls in the rates for you.
Payroll doesn’t use schedules until you add a time record with a date equal to
or greater than the schedule’s effective date. Therefore, you can create future
step and grade schedules. Also, you can create one schedule with multiple
tables that each have a different effective date.

Example
Two Rivers has a Step and Grade Schedule established for the custodians
that work throughout the organization.
Grade Step: 1 Step: 2 Step: 3 Step: 4
A 23,000 25,500 28,000 30,500
B 24,500 25,500 27,000 31,000
C 26,000 28,000 30,000 32,000
D 28,000 31,000 34,000 38,000

Entry level custodians are assigned to Grade A, Step 1, and advance one
step with each year of service. Experienced custodians hired into Two Rivers
can be assigned to any step of any grade.

Payroll User Guide Chapter 2 Setting Up Pay Structure 41

What is a Progressive Pay Plan?
A progressive pay plan is a type of pay plan you can use to make changes to
employee pay rates. You use progressive pay plans if you want to give raises
to employees based on length of service rather than based on merit.
Within a pay plan you deÞne:
• Which employees are eligible for the plan
• When employees are eligible for the plan
• The points at which employees enter and leave the plan
• The rates employees are paid When you update the progressive
pay plan, the Payroll application creates pending personnel actions for
employee pay increases. To update employee pay, you run Action Update
(PA100) before you enter time records for each payroll cycle.

Example
Two Rivers Company employs grounds keepers on a part-time basis. These
grounds keepers make Þve dollars an hour for the Þrst 90 days of their
employment. After the 90 day probationary period, they increase to eight
dollars an hour. For every 90 days employees work, the grounds keepers
receive a pay increase of .25 per hour. After Þve years of service, the grounds
keepers move to another pay plan.
Two Rivers Company creates a progressive pay plan for the grounds keepers.
The plan creates pending personnel actions that automatically increase their
pay rates every time they complete an additional 90 days of service. Two
Rivers Company deÞnes the plan so employees are removed after Þve years
of service and placed in a new plan.

What are Exception, Offset Time Record Rules?

Exception, offset time record rules deÞne how Payroll reduces one type of pay
for an employee when another, speciÞc type of pay is added to the employee’s
time records. Payroll uses these rules to create offsetting time records for
individual employees on a case-by-case basis. These rules are most often
used for employees with standard time records who also have time records
for paid time off such as vacation or sick time. The rules ensure that salaried
employees’ hours are not overstated, and hourly employees are not overpaid.
However, you do not typically use exception, offset time records for
company-wide holidays. This sort of global offset can be created using the
automatic time record feature.
Current status time records containing an exception pay code will cause a
negative or offset pay code for the same number of hours to be created when
the Offset Time Record Creation program is run.
Exception, offset time record rules consist of two types of pay codes:
Exception pay code—the pay code that triggers the need for pay to be
reduced. For example, vacation time, sick time, and so on.

42 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Offset pay code—the pay code for which Payroll creates a negative time
record.
If your company has a ßex plan, the BeneÞts Administration application
creates standard time records for ßex credits that employees receive as
pay, even if the employee does not have standard time records set up on
their employee record. For companies that do not want to issue a ßex credit
payment for an employee who does not have any other pay for the pay cycle,
the BeneÞts Administration application can delete ßex time records if no other
time records exist for the employee in the pay cycle. For more information,
see the BeneÞts Administration User Guide.

Example
Riverbend Hospital uses an 80-hour standard time record for their full time
exempt employees to reduce the amount of data entry required for time
record entry. These time records are created using the pay code REG for
Regular Pay. The hospital also uses the following exceptions to Regular Pay:
Sick, Vacation, and Leave Of Absence.
Dick Franken is an employee who had a 80-hour REG standard time record
created in this payroll cycle. He actually used 40 hours of Vacation time and
only worked 40 hours. The payroll ofÞcer keys in 40 hours of Vacation for
Dick, which causes his time records to total 120 hours for this payroll cycle.
The payroll ofÞcer then runs the Offset Time Record Creation program, and
the application automatically creates another time record line for Dick with a
negative 40 hours of Regular time, correctly reducing his total time for this pay
period to 80 hours (40 hours Regular and 40 hours Vacation).
Riverbend Hospital set up exception pay codes with the related offsetting
pay codes as follows:
Exception Pay Code Offset Pay Code
VAC—Vacation REG - Regular
SIC—Sick REG - Regular
LOA—Leave of Absence REG - Regular

Payroll User Guide Chapter 2 Setting Up Pay Structure 43

Procedures in this Chapter
To set up pay structure, you must deÞne pay classes, pay summary groups,
relationships between pay summary groups and pay classes, pay codes, pay
plans, and assign default pay plans. You can also deÞne step and grade
schedules, shift tables, FLSA overtime pay plans, progressive pay plans,
employee leave plans, and offset, exception time record rules.
"Creating Step and Grade Create a schedule of pay rates using
Schedules" on page 46 steps and grades.
"Creating Shift Tables" on page 52 DeÞne shift differential rates for
up to nine shifts and many rates
within each shift for job codes,
grade ranges, and/or step and grade
schedules.
"DeÞning Pay Classes" on page 53 DeÞne pay classes.
"DeÞning Pay Summary Groups" on DeÞne pay summary groups.
page 54
"DeÞning Pay Summary Group DeÞne relationships between pay
Relationships" on page 57 summary groups and pay classes.
"DeÞning Pay Codes" on page 58 DeÞne pay codes.
"DeÞning Pay Plans" on page 62 DeÞne pay plans.
"DeÞning FLSA Overtime Pay Plans" DeÞne pay plans used for FLSA
on page 64 overtime.
DeÞne pay plans you can use to
make changes to employee pay
rates.
"DeÞning Exception, Offset Time DeÞne how Payroll reduces one
Record Rules" on page 67 type of pay for an employee when
another, speciÞc type of pay is added
to the employee’s time records.

44 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Figure 7. Procedure relationship: Set up pay structure

1
- Optional -
Create Step and
Grade Schedules
PR16.1

2
3
- Optional -
Define Pay Classes
Define Shift Tables
PR20.1
PR24.1

4
Define Pay Summary
Groups
PR20.2

5
Define Pay Summary
Group Relationships
PR20.3

6
Define Pay Codes
PR20.4

7
Define Pay Plans
PR21.1

8
- Conditional -
Define FLSA
Overtime Pay Plans
PR21.1

9
Assign Default Pay
Plans
PR22.1

10
-Optional-
Define Progressive
Pay Plans
UK10.1

11
- Optional -
Define Employee
Leave Plans
UK20.1

12
- Optional -
Define Offset,
Exception Time
Record Rules
PR28.1

Payroll User Guide Chapter 2 Setting Up Pay Structure 45

Creating Step and Grade Schedules
Step and grade schedules deÞne a matrix of pay rates based on steps and
grades.

Need More Details? Check out the following concepts:

• "What are Step and Grade Schedules?" on page 41

STEPS To create a step and grade schedule

1. Access Step And Grade Schedule (PR16.1).
2. Type a name and description of the schedule in the Schedule Þelds.
3. Type the Þrst day you can use the schedule in the Effective Date Þeld.
TIP If you change to 4. Select the type of currency for the step and grade schedule in the
a currency other than Currency Þeld.
the company’s base
currency, Payroll uses 5. Select if the step and grade schedule is for salaried or hourly employees
the Base Rates tab to in the Salary Class Þeld.
display the selected
step and grade amounts 6. Type a grade in the Grade Þeld.
in the company’s base 7. On the same line as the grade, type up to Þve step amounts in the Step
currency. Þelds.
8. Repeat steps 6 and 7 for each grade in the step and grade schedule.

Related Reports and Inquiries

To Use
list step and grade schedules Step and Grade Schedule Listing
(PR216)

Options for Creating Step and Grade Schedules

You can also create step and grade schedules automatically using another
schedule, or shell, as the basis for the new schedule. There are Þve options
for automatically creating step and grade schedules:
• "Creating a step and grade schedule from a shell" on page 46
• "Mimicking an Existing Step and Grade Schedule" on page 47
• "Mimicking and Updating an Existing Step and Grade Schedule" on page
48
• "Updating an Existing Schedule" on page 50
• "Copying an Existing Step and Grade Schedule" on page 51

Creating a step and grade schedule from a shell

You can create a step and grade schedule using an empty schedule (shell)
you created on Step and Grade Schedule (PR16.1).

STOP Before you create a step and grade schedule from a shell, you
must create a step and grade schedule that contains no rates. For more
information, see "Creating Step and Grade Schedules" on page 46.

46 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Need More Details? Check out the following concepts:
• "What are Step and Grade Schedules?" on page 41

STEPS To create a step and grade schedule from a shell

1. Access Step and Grade Schedule Update (PR116).
NOTE The effective 2. Select the schedule (shell) you want to create the new step and grade
date displays when you schedule from in the Schedule Þeld.
select the schedule.
3. Select Create from Shell in the Report Selection Þeld
TIP If you want to 4. Select Update in the Update Þeld.
review the step and
grade schedule before 5. Type a value in the Base Rate Þeld. This value becomes the rate for the
you add it to the system, Þrst grade of the Þrst step.
select Report in the 6. DeÞne the rate increases for the new schedule.
Update Þeld.
If the schedule increases by Then type
A percentage the percent increase of each grade
in the left Increase Percent Þeld
and the percent increase of each
step in the right Increase Percent
Þeld.
An amount the amount increase of each grade
in the left Increase Amount Þeld
and the amount increase of each
step in the right Increase Amount
Þeld.

7. Type the value of the grades and steps in the Grade, Step Þelds.
8. Run the report.
9. Payroll creates the schedule from the shell deÞned on Step and Grade
Schedule (PR16.1).

Mimicking an Existing Step and Grade Schedule

You can create a step and grade schedule using an existing schedule. Payroll
ignores any existing rates in the step and grade schedule you mimic. The
schedule does not need to be empty as it does when you create a step and
grade schedule from a shell. For more information, see "Creating a step and
grade schedule from a shell" on page 46.

STOP Before you mimic a step and grade schedule, you must create a step
and grade schedule you want to mimic. For more information, see "Creating
Step and Grade Schedules" on page 46.

Payroll User Guide Chapter 2 Setting Up Pay Structure 47

 Need More Details? Check out the following concepts:
• "What are Step and Grade Schedules?" on page 41

STEPS To mimic an existing schedule

1. Access Step and Grade Schedule Update (PR116)
2. Type the name of the new step and grade schedule in the Schedule Þeld.
3. Type the date the new schedule comes into effect in the Effective Date
Þeld.
4. Select Create From Mimic Shell in the Report Selection Þeld.
TIP If you want to 5. Select Update in the Update Þeld.
review the step and
grade schedule before 6. DeÞne the schedule you want to mimic. Consider the following Þelds.
you add it to the system,
select Report in the Schedule The existing schedule or shell, that you want to
Update Þeld. mimic.

NOTE The mimic schedule determines which

grades are created on the new schedule.

New Desc (New The description of the new table you are creating.
Description)

7. Type a value in the Base Rate Þeld. This value becomes the rate for the
Þrst grade of the Þrst step.
8. DeÞne the rate increases for the new schedule.

If the schedule increases by Then type

A percentage the percent increase of each grade
in the left Increase Percent Þeld
and the percent increase of each
step in the right Increase Percent
Þeld.
An amount the amount increase of each grade
in the left Increase Amount Þeld
and the amount increase of each
step in the right Increase Amount
Þeld.

9. Type the value of the last step in the Step Þeld.

10. Run the report.
11. Payroll creates the schedule from the shell deÞned on Step and Grade
Schedule (PR16.1).

Mimicking and Updating an Existing Step and Grade

Schedule
You can create a new step and grade schedule using an existing schedule as
the basis for rates. This option is useful for creating a new schedule with a
future effective date for a cost-of-living increase.

48 Chapter 2 Setting Up Pay Structure Payroll User Guide

 STOP Before you mimic and update a step and grade schedule, you must
create a step and grade schedule you want to mimic. For more information,
see "Creating Step and Grade Schedules" on page 46.

Need More Details? Check out the following concepts:

• "What are Step and Grade Schedules?" on page 41

STEPS To mimic and update an existing schedule

1. Access Step and Grade Schedule Update (PR116).
2. Type the name of the new step and grade schedule in the Schedule Þeld.
3. Type the date the new schedules comes into effect in the Effective Date
Þeld.
4. Select Mimic With Update in the Report Selection Þeld.
TIP If you want to 5. Select Update in the Update Þeld.
review the step and
grade schedule before 6. DeÞne the schedule you want to mimic. Consider the following Þelds.
you add it to the system,
select Report in the Schedule The existing schedule or shell, you want to mimic.
Update Þeld.
NOTE The mimic schedule determines which
grades are created on the new schedule.

New Desc (New The description of the new table you are creating.
Description)

7. DeÞne the rate changes for the new schedule.

Payroll User Guide Chapter 2 Setting Up Pay Structure 49

 If the schedule changes by Type
A percentage the percent in the Percent Change
Þeld.

NOTE Type a negative symbol

with the percent if the change is a
decrease.

An amount the amount in the Amount Change

Þeld.

NOTE Type a negative symbol

with the amount if the change is a
decrease.

A new ßat value for all steps and the value in the New Rate Þeld.
grades

8. Run the report.

9. Payroll creates the schedule from the shell deÞned on Step and Grade
Schedule (PR16.1).

Updating an Existing Schedule

You can update existing schedules with new rates without creating a new
schedule.

STOP Before you update a step and grade schedule, you must create the
step and grade schedule you want to update. For more information, see
"Creating Step and Grade Schedules" on page 46.

Need More Details? Check out the following concepts:

• "What are Step and Grade Schedules?" on page 41

STEPS To update an existing schedule

1. Access Step and Grade Schedule Update (PR116).
NOTE The effective 2. Select the step and grade schedule you want to update in the Schedule
date displays when you Þeld.
select the schedule.
3. Select Update Existing Schedule in the Report Selection Þeld.

50 Chapter 2 Setting Up Pay Structure Payroll User Guide

TIP If you want to 4. Select Update in the Update Þeld.
review the step and
grade schedule before 5. DeÞne the rate changes for the updated schedule.
you add it to the system,
select Report in the If the schedule changes by Type
Update Þeld.
A percentage the percent in the Percent Change
Þeld.

NOTE Type a negative symbol

with the percent if the change is a
decrease.

An amount the amount in the Amount Change

Þeld.

NOTE Type a negative symbol

with the amount if the change is a
decrease.

A new ßat value for all steps and the value in the New Rate Þeld.
grades
NOTE By typing values 6. Type the value of the grades and steps in the Grade, Step Þelds.
in the Grade, Step
Þelds, you can update 7. Run the report.
a portion of a schedule 8. Payroll creates the schedule from the shell deÞned on Step and Grade
while the remainder of Schedule (PR16.1).
the schedule stays the
same.
Copying an Existing Step and Grade Schedule
You can copy a schedule without changing the rates.

STOP Before you copy a step and grade schedule, you must create
the step and grade schedule you want to copy. For more information, see
"Creating Step and Grade Schedules" on page 46.

Need More Details? Check out the following concepts:

• "What are Step and Grade Schedules?" on page 41

STEPS To update an existing schedule

1. Access Step and Grade Schedule Update (PR116).
2. Type the name of the new step and grade schedule in the Schedule Þeld.
3. Type the date the new schedules comes into effect in the Effective Date
Þeld.
4. Select Mimic Without Update in the Report Selection Þeld.

Payroll User Guide Chapter 2 Setting Up Pay Structure 51

TIP If you want to 5. Select Update in the Update Þeld.
review the step and
grade schedule before 6. DeÞne the schedule you want to mimic. Consider the following Þelds.
you add it to the system,
select Report in the Schedule The existing schedule or shell, you want to mimic.
Update Þeld.
New Desc (New The description of the new table you are creating.
Description)

7. Run the report.

8. Payroll creates the schedule from the schedule deÞned on Step and
Grade Schedule (PR16.1).

Creating Shift Tables

Create shift tables to deÞne shift differential rates for up to nine shifts and
many rates within each shift for job codes, grade ranges, and/or step and
grade schedules.

STOP Before you deÞne shift tables you must deÞne job codes in the
Human Resources application, grade range schedules in the Personnel
Administration application, and step and grade schedules if you plan to use
them as parameters for shift tables. For more information, see the Human
Resources User Guide and the Personnel Administration User Guide. For
more information, see "Creating Step and Grade Schedules" on page 46.

Need More Details? Check out the following concepts:

• "What are Pay Codes?" on page 30
• "How are Pay Rates Calculated?" on page 34
• "What are Step and Grade Schedules?" on page 41

STEPS To deÞne shift tables

1. Access Shift Table (PR24.1).
2. Type a name and description for the shift table in the Shift Table Þelds.
3. Type the date the table goes into effect in the Effective Date Þeld.
4. Select the currency you want to assign to this table in the Currency Þeld.
5. Select whether or not the rates on this table are a percent of grade range
in the Grade Range Percent Þeld.
6. Determine the criteria for each shift. Consider the following Þelds.

Shift The shift number you want to deÞne shift

differential pay rate for.

NOTE You can deÞne more than one set of

criteria for the same shift.

52 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Job Code The job code you want to associate with the shift
differential pay rate. Only employees with this job
code can use this shift differential rate.
Type Determines if pay for this shift is based on a
grade range or on a step and grade schedule.
Schedule The schedule (grade range or step and grade)
that applies to this shift.
Grade If pay for this shift is based on a step and grade
schedule, select the applicable pay grade.
Step If pay for this shift is based on a step and grade
schedule, select the applicable step.
Rate A ßat rate or percentage that the shift differential
rate is based on.
Percent Of Determines if the shift differential percentage
should be based on the minimum, midpoint, or
maximum rate for the shift.

7. DeÞne override distribution information for the shift table on the Expenses
tab.

DeÞning Pay Classes

DeÞne pay classes to group types of pay for special system edits and
calculations, and for reporting purposes.

Need More Details? Check out the following concepts:

• "What are Pay Classes?" on page 33
CAUTION If you create
the overtime, non cash or
tips pay classes directly
on Pay Class (PR20.1),
special hard-coded edits
and calculations will NOT
be activated. You MUST
deÞne these pay classes
on Company (HR00.1).
HR00.1 automatically adds
these three pay classes to
Pay Class (PR20.1). Other
pay classes can be created
directly on PR20.1.

STEPS To deÞne pay classes

1. Access Pay Class (PR20.1).
2. Type a code to represent the pay class in the Class Þeld.
3. Type a name for the pay class in the Description Þeld.

Payroll User Guide Chapter 2 Setting Up Pay Structure 53

 Related Reports and Inquiries
To Use
view a listing of pay codes, pay Pay Code Listing (PR220)
classes, pay summary groups and
pay summary group relationships.

DeÞning Pay Summary Groups

A pay summary group represents one pay code or a group of pay codes, and
can be tied to pay classes.

Need More Details? Check out the following concepts:

• "What are Pay Summary Groups?" on page 32
• "What are Pay Codes?" on page 30

STEPS To deÞne pay summary groups

1. Access Pay Summary Group (PR20.2).
TIP If you select United 2. Select the country you want the pay summary group to represent in the
States or Canada in Country Þeld.
the Country Þeld, BSI
uses that country to
calculate taxes for this IMPORTANT The country you select in the Country Þeld determines what
pay summary group. information you can enter on the Tax tab. If the company does not use
multiple countries, this country code must be the same as the company’s
country code.

3. Type a code to represent the pay summary group in the Group Þeld.
4. Type the name of the pay summary group in the Description Þeld.
5. Type the description you want to print on payments and direct deposits
in the Payment Description Þeld.
6. If you calculate FLSA overtime for employees, deÞne pay or premiums
used in the calculation of FLSA overtime. Consider the following Þelds.

Eligible Overtime, Determines whether or not the straight portion

Pay of wages for this pay summary group should be
considered in the calculation of the weighted
average rate.
Eligible Overtime, Determines whether or not the hours for this
Hours pay summary group should be considered in the
calculation of the weighted average rate.
Eligible Premium, Determines whether or not the premium portion
Pay of wages for this pay summary group should be
considered in the calculation of the weighted
average rate.

54 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Eligible Premium, Determines whether or not the premium portion
Credit of wages for this pay summary group should be
used as a credit against the overtime calculated.
TIP The Tips 7. If the pay summary group is associated with tips pay being tracked by
application only uses the Lawson Tips application, select the value that identiÞes the pay as
direct tips in the
allocation process. direct or indirect tips.
8. DeÞne additional tax information for the pay summary group. Consider
the following Þelds.

Payment Type The type of pay included in this pay summary

group. BSI uses this payment type to determine
how to calculate taxes for this pay summary
group.

NOTE This Þeld is required for pay summary

groups with a country code of Canada and
defaults to Regular.

Supplemental Tax The tax method you want to use for this pay
Code summary group.
BSI uses this payment type to determine how to
calculate taxes for this pay summary group.

TIP If you select US Exempt or Canada Exempt

in the Supplemental Tax Code Þeld, all pay for
the pay summary group is exempt from taxes.

If you select US Manual Override or Canada

Manual Override, use Tax Overrides (PR20.6)
to deÞne the authority type that has deduction
amounts or percents overridden for this pay
summary group.
Remuneration If you selected Canada in the Country Þeld and
Code selected Supplemental in the Payment Type Þeld,
select C001 (Bonus) for bonus payments.
BSI uses this payment type to determine how to
calculate taxes for this pay summary group.
Income Type If this is a Canada pay summary group, select the
income type.
BSI uses this payment type to determine how to
calculate taxes for this pay summary group.

9. Choose the Add form function to add the pay summary group.

Payroll User Guide Chapter 2 Setting Up Pay Structure 55

NOTE Tax Overrides 10. If you selected US Manual Override or Canada Manual Override in the
are used when it is Supplemental Tax Code Þeld, deÞne tax overrides for pay summary
necessary, from a global
standpoint, to override groups:
the normal taxation for a. Access Tax Overrides (PR20.6).
a pay type. This is not
where tax overrides are b. Select the pay summary group you want to create tax overrides for
deÞned for an individual the Pay Summary Group Þeld.
employee. c. DeÞne the override tax information you want to use for this pay
summary group. Consider the following Þelds.

Type The type of tax authority you want to override for

the selected pay summary group.

TIP The type Federal does not include Social

Security, Medicare in the US or CPP, QPP,
Employment Insurance in Canada

Indicator Indicates if the override is an amount or percent.

Amount, Percent The amount or percent of the override.

11. DeÞne any tax deductions from which the pay summary group is either
exempt from taxes or is subject to update taxable wages only.

STOP Before you deÞne tax exemptions for a pay summary group,
you must deÞne tax deductions. For more information, see "DeÞning
Tax Deduction Codes" on page 104.

a. Access Tax Exemptions (PR20.5).

b. Select the pay summary group you want to create tax exemptions for
in the Pay Summary Group Þeld.
c. Select the deduction in the Deduction Þeld from which the pay
summary group is either exempt from taxes or is subject to update
taxable wages only.
d. Select the value that determines how Payroll processes the deduction.

If you want to Select

Indicate that the selected pay Exempt.
summary group is exempt
from withholding taxes for this
deduction
Indicate that for this deduction, Update Taxable Only.
taxable wages are updated by,
but no taxes are withheld from,
the selected pay summary group

56 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Related Reports and Inquiries
To Use
View a listing of pay codes, pay Pay Code Listing (PR220)
classes, pay summary groups and
pay summary group relationships.

DeÞning Pay Summary Group Relationships

Pay summary group relationships tie pay summary groups to pay classes to
apply special edits or calculations, and for reporting.

STOP Before you deÞne pay summary group relationships, you must
deÞne pay classes and pay summary groups. For more information, see
"DeÞning Pay Classes" on page 53. For more information, see "DeÞning
Pay Summary Groups" on page 54.

Need More Details? Check out the following concepts:

• "What are Pay Summary Groups?" on page 32
• "What are Pay Classes?" on page 33

STEPS To deÞne pay summary group relationships

1. Access Pay Summary Group Relationship (PR20.3).
2. Select the pay class you want to deÞne relationships for in the Pay Class
Þeld.
TIP You can associate 3. Select the pay summary group you want to associate with the pay class in
a pay summary group the pay summary group Þeld.
with more than one pay
class. 4. Select if hours identiÞed by this pay summary group are included,
excluded, or subtracted for calculation and reporting in the Hours Þeld.

Payroll User Guide Chapter 2 Setting Up Pay Structure 57

TIP If the pay class is 5. Select if the wages identiÞed by this pay summary group are included,
used in other Human excluded, or subtracted for calculation and reporting in the Wages Þeld.
Resources applications,
make sure that the
values in the Hours and Related Reports and Inquiries
Wages Þelds correctly
affect the reporting or To Use
calculation in those
applications. View a listing of pay codes, pay Pay Code Listing (PR220)
classes, pay summary groups and
pay summary group relationships

DeÞning Pay Codes

When you deÞne pay codes, you designate how pay associated with the pay
code calculates and you can, optionally, identify the accounts in the general
ledger to which the pay expense is charged.

IMPORTANT It is important that you tie Lawson delivered pay classes to

pay summary groups before attempting to create the pay codes. For more
information, see "DeÞning Pay Summary Group Relationships" on page 57.

Need More Details? Check out the following concepts:

• "What are Pay Codes?" on page 30
• "What are Pay Summary Groups?" on page 32
• "How are Pay Rates Calculated?" on page 34

STEPS To deÞne pay codes

1. Access Pay CodePay Code (PR20.4).
2. If you want this pay code to be used only for employees in a speciÞc
process level, select the process level in the Process Level Þeld. You can
select both a process level and a job code.
TIP You can override 3. If you want this pay code to be used only for employees assigned to a
the employee’s job code speciÞc job code, select the job code in the Job Code Þeld. You can select
at time record entry to
correspond with the job both a job code and a process level.
code deÞned for the pay 4. Type the pay code in the Pay Code Þeld.
code.
5. Type a name for the pay code in the Description Þeld.

58 Chapter 2 Setting Up Pay Structure Payroll User Guide

NOTE For calculation 6. Select how you want to calculate the pay associated with this pay code:
types Percentage
Rate; Rate Shift If you want to calculate pay Select
Differential; Percent
Shift Differential; Based on the rate on the Normal Rate.
Percentage with Shift employee time record (using pay
Diff; Percentage with
Percent Shift Payroll rate defaulting logic)
divides the annual Based on a percentage you type in Percentage Rate.
salary by annual hours
multiplied by the FTE the Rate Þeld, Overtime Premium
from the employee Þeld, or both
record.
Based on a normal rate with a rate Rate Shift Differential.
shift differential
Based on a normal rate with a Percent Shift Differential.
percentage shift differential
Based on a percentage rate with a Percentage with Rate Shift Diff.
rate shift differential
Based on a percentage rate with a Percentage with Percent Shift Diff.
percent shift differential
As noncash, such as automobile Noncash Income.
allowance, moving expenses,
excess group term life TIP A non-cash pay code must
be tied to a pay summary group
NOTE This type of pay updates which is tied to the NON pay class.
taxable wages.

As the hours associated with an Hours Only.

event, not the dollars
Based on a user-deÞned Custom Calculation.
calculation
As an additional ßat rate to be paid Additional Flat Rate.
that does not calculate against
any hours entered or relate to
employee’s normal rate or hourly
rate

7. Depending on the calculation type you selected, select additional

calculation parameters. Consider the following Þelds.

Service Code If you us Absence

Management processing,
select the service code
associated with this pay
code.
Attendance Select the code that
Code represents a reason for
an employee’s absence or
hours worked.

Payroll User Guide Chapter 2 Setting Up Pay Structure 59

 Rate The rate or percent used to Use with calc types:
calculate pay. • Normal
• Percentage Rate
• Noncash
• Additional Flat Rate
Currency The currency of the rate of
pay.
Overtime The premium rate used Use with calc types:
Premium to calculate workers’ • Percentage Rate
compensation premiums
• Percentage with
based only on the straight
Shift Differential
time portion of the overtime
pay and to post the • Percentage
amounts to a separate with Rate Shift
general ledger account. Differential

Shifts (1-4) The shift premiums used to Use with calc types:
calculate pay based on the • Rate Shift Diff
employee shift.
• Percent Shift Diff
• Percentage with
Rate Shift Diff
• Percentage with
Percent Shift Diff
Shift Table The shift table you want to Use with calc types:
use to calculate pay • Rate Shift Diff
• Percent Shift Diff
• Percentage with
Rate Shift Diff
• Percentage with
Rate Shift Diff
Units of Select the unit of measure
Measure for this pay code.
Note: If a unit of measure
pay code is being used and
this pay needs to be used
for FLSA calculation, time
accruals, beneÞt eligibility,
and/or beneÞt vesting, you
must use a unit of measure
pay code that allows hours.
FLSA calculation, time
accrual, and beneÞt vesting
all rely on the number of
hours for calculating
correctly.

60 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Allow Hours Select whether to allow
hours to be entered with
other units of measure.

NOTE This is only valid

with the Rate X Unit
calculation type. Note:
Select Yes if the hours for
unit of measure pay need
to be included in overtime,
direct contribution plans
west and/or time accruals.

Non Earnings Select whether the

pay code will be used
for non-earnings such
as mileage or tuition
reimbursement.
Non-earnings are not used
in tax calculations or for
prorating deductions.
Payment reporting will
separate earnings from
non-earnings.
Pay Summary The pay summary group
Group this pay code belongs to.
Disposable Indicates if the pay
Income associated with the pay NOTE Payroll uses
code is included in or disposable income to
excluded from disposable calculate garnishment
income. deductions. If
you choose
Include/Exclude,
it applies to all
garnishments. If
Include/Exclude
applies to individuals,
deÞne it at the
garnishment level.

Payroll User Guide Chapter 2 Setting Up Pay Structure 61

 8. If you want to use General Ledger accounts, deÞne them for the pay
code. Consider the following Þelds.

Wage Expense The general ledger expense account you want to

deÞne for the pay code.
Premium Expense For pay codes with overtime premium rates,
select the premium expense account you want to
associate the premium portion of pay to.

TIP Select the Premium Expense button to

deÞne premium expense accounts for speciÞc
job codes.

Shift Expense For pay codes with shift differential rates, select
the shift expense account you want to associate
the shift differential portion of pay to.
Non Cash Credit For pay codes with a non cash calc type, select
the credit account.
If you leave the Non Cash Credit Þelds blank, the
system uses the noncash credit account deÞned
for the company.
Activity Select an activity with which you want to
associate the pay code.

Related Reports and Inquiries

To Use
View a listing of pay codes, pay Pay Code ListingPay Code Listing
classes, pay summary groups and (PR220)
pay summary group relationships

DeÞning Pay Plans

Pay plans deÞne pay periods and work periods. This procedure is for
non-overtime pay plans only. You can also deÞne FLSA overtime pay plans.
For more information, see "DeÞning FLSA Overtime Pay Plans" on page 64.

62 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Need More Details? Check out the following concepts:
• "What are Pay Plans?" on page 36

STEPS To deÞne pay plans

1. Access Pay Plan (PR21.1).
2. Type the name and description of the pay plan in the Pay Plan Þelds.
3. Type the date the pay plan goes into effect in the Effective Date Þeld.
4. Select No in the Overtime Plan Þeld.
5. Type the end date of the Þrst pay period to be processed by this pay plan
in the First Pay Period End Date Þeld.
6. Select how often pay is calculated for this pay plan in the Pay Frequency
Þeld.
7. DeÞne the work period for this pay plan. Consider the following Þelds.

First Work Period The end date of this pay plan’s Þrst work period.
End Date
Days in Work The number of days in this pay plan’s work
Period period.

8. Select if you want to use 53 weekly or 27 biweekly pay periods instead of

the standard 52 weekly or 26 biweekly pay periods for tax purposes in the
Use 53, 27 for Pay Periods Þeld.

Related Reports and Inquiries

To Use
Inquire on pay periods and work Pay Period Inquiry (PR21.2)
periods created for pay plans
List pay plans Pay Plan Listing (PR221)

Payroll User Guide Chapter 2 Setting Up Pay Structure 63

DeÞning FLSA Overtime Pay Plans
TIP If you do not Overtime Pay Plans provide the same information as regular pay plans;
need to calculate FLSA however, they also provide the parameters to calculate overtime.
overtime, you do not
need to create overtime
pay plans. You can use Need More Details? Check out the following concepts:
overtime pay codes on
your time records to • "What are Pay Plans?" on page 36
process overtime. • "How does Payroll Calculate FLSA Overtime?" on page 37

STEPS To deÞne pay plans

1. Access Pay Plan (PR21.1).
2. Type the name and description of the pay plan in the Pay Plan Þelds.
3. Type the date the pay plan goes into effect in the Effective Date Þeld.
4. Select Yes in the Overtime Plan Þeld.
5. Select how you want to enter overtime hours in the Calculate Overtime
Hours:

If you want to Select

Use the calculated hours method Yes
Use the supplied hours method No

6. Type the end date of the Þrst pay period to be processed by this pay plan
in the First Pay Period End Date Þeld.
7. Select how often pay is calculated for this pay plan in the Pay Frequency
Þeld.
8. DeÞne the work period for this pay plan. Consider the following Þelds.

First Work Period The end date of this pay plan’s Þrst work period.
End Date
Days in Work The number of days in this pay plan’s work
Period period.
Hours in Work The number of hours in a work period after which
Period point overtime is paid.

9. DeÞne overtime parameters. Consider the following Þelds.

Maximum Hours The number of hours in a day after which

Per Day overtime is paid.

TIP Leave this Þeld blank unless the plan is for

daily overtime. Daily overtime plans require a
unique time record for each day.

64 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Overtime The overtime premium rate. For example, for
Premium Rate overtime calculated at time and one half, type
50.00 to indicate the premium rate.

TIP If you leave this Þeld blank, the premium

rate deÞned for the pay code defaults.

Overtime Pay The overtime pay code. For overtime plans,

Code Payroll automatically calculates the overtime and
creates a time record for the overtime pay code.

TIP Lawson recommends a unique pay code be

used for FLSA overtime.

Work Period Determines if overtime pay is based on a Þxed

work week or a ßuctuating work week.
A ßuctuating work week means that the salary
is intended to compensate the employee for
the entire work week, regardless of the number
of hours worked. With this method, the more
overtime an employee works, the regular rate
used in calculating overtime becomes smaller.
A Þxed work week means that the salary is
intended to compensate the employee for a
speciÞed number of hours per week.
Fixed Hours If you select Fixed in the Work Period Þeld, type
the number of hours a salaried employee’s pay is
intended to compensate for the work period.

10. Select if you want to use 53 weekly or 27 biweekly pay periods instead of
the standard 52 weekly or 26 biweekly pay periods for tax purposes in the
Use 53, 27 for Pay Periods Þeld.

Related Reports and Inquiries

To Use
Inquire on pay periods and work Pay Period Inquiry (PR21.2)
periods created for pay plans
List pay plans Pay Plan Listing (PR221)

Assigning Default Pay Plans

Default pay plans are the pay plans Payroll assigns to an employee if there is
no pay plan on the employee record.

Payroll User Guide Chapter 2 Setting Up Pay Structure 65

 STOP Before you deÞne default pay plans, you must deÞne pay plans. For
more information, see "DeÞning Pay Plans" on page 62.

Need More Details? Check out the following concepts:

• "What are Pay Plans?" on page 36

STEPS To deÞne default pay plans

1. Access Pay Plan Schedules (PR22.1).
2. Select a company in the Company Þeld.
3. Perform an Inquire to display the process levels in the selected company.
4. Select the default pay plans for the company. Consider the following
Þelds.

Weekly The company default pay plan for employees

who are paid weekly.
Biweekly The company default pay plan for employees
who are paid biweekly.
Semi Monthly The company default pay plan for employees
who are paid semi-monthly.
Monthly The company default pay plan for employees
who are paid monthly.

5. Select the default pay plans for a process level. Consider the following
Þelds.

Weekly The process level default pay plan for employees

who are paid weekly.
Biweekly The process level default pay plan for employees
who are paid biweekly.
Semi Monthly The process level default pay plan for employees
who are paid semi-monthly.
Monthly The process level default pay plan for employees
who are paid monthly.

6. Repeat step 5 for additional process levels.

66 Chapter 2 Setting Up Pay Structure Payroll User Guide

 Related Reports and Inquiries
To Use
List pay plans Pay Plan Listing (PR221)

DeÞning Exception, Offset Time Record Rules

Exception, offset time record rules deÞne how Payroll reduces one type of pay
for an employee when another, speciÞc type of pay is added to the employee’s
time records. These rules are most often used for employees with standard
time records who also have time records for paid time off such as vacation or
sick time to ensure employees are not overpaid.

STOP Before you deÞne exception, offset time record rules, you must
deÞne pay codes. For more information, see "DeÞning Pay Codes" on page
58.

Need More Details? Check out the following concepts:

• "What are Exception, Offset Time Record Rules?" on page 42
• "What are Pay Codes?" on page 30

STEPS To deÞne exception, offset time record rules

1. Access Exception, Offset Time Record Rules (PR28.1).
2. Select the employee group to which these rules apply in the Group Name
Þeld.
3. Select the pay code that triggers the need for pay to be reduced in the
Exception Pay Code Þeld.
4. Select the pay code for which Payroll creates a negative time record in
the Offset Pay Code Þeld.
5. Repeat steps 3 and 4 for every exception, offset relationship the company
requires.

Related Reports and Inquiries

To Use
View employee leave plan history Employee Leave Plan History
(UK260)
View employee time history Employee Time History Listing
(UK270)

Payroll User Guide Chapter 2 Setting Up Pay Structure 67

68 Chapter 2 Setting Up Pay Structure Payroll User Guide
Chapter 3

Setting Up Time and Attendance

This chapter explains how to set up Time and Attendance to evaluate

employees by tracking employee attendance.

Payroll User Guide Chapter 3 Setting Up Time and 69

Attendance
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 73 • "What are Attendance Codes?" on page 70
• "What are Attendance Points?" on page 71
• "What are Attendance Classes?" on page 72

What are Attendance Codes?

Attendance codes are user deÞned labels for an employee’s absent and tardy
time.
When you deÞne the Time and Attendance structure, you organize absent
and tardy hours attendance codes to track attendance records for reporting
and inquiry. You can also assign points to speciÞc attendance codes to
evaluate employees.
Time and Attendance uses attendance codes to display or track attendance
data on reports and inquiries on a single employee or groups of employees.
You can update attendance history by attaching attendance codes to time
records and processing them through the payroll cycle; or by manually
entering attendance records directly intoTime and Attendance. To easily
process attendance codes through the payroll cycle, you can tie attendance
codes to previously deÞned pay codes so that, at the point of time record entry,
you can enter an attendance code and the associated pay code defaults.

70 Chapter 3 Setting Up Time and Attendance Payroll User Guide

What are Attendance Points?
You can assign attendance points to attendance codes to evaluate employees.
If you choose, Time and Attendance totals these points on attendance reports
for the year.

Example
River Bend Hospital decides that they need to track the absenteeism of
employees when they are sick or tardy. To do so, they create the following
Attendance Codes.
Attendance Code Points Pay Code
SC—Sick, Employee 1 SIK
phoned in
SK—Sick, Employee 2 SIK
did not phone in
TA—Tardy 1.5

Because the SC and SK attendance codes have been tied to the SIK pay
code, if an employee’s time record has the attendance code of SC or SK, the
application processes a SIK pay code as it processes the time record.
River Bend Hospital enters the tardy records manually because they have not
tied the attendance code to a pay code.
The accumulated points for sick and tardy hours appear on the year report for
each employee. The report can also be run for a group of employees.

Payroll User Guide Chapter 3 Setting Up Time and 71

Attendance
What are Attendance Classes?
You can use attendance classes to group several attendance codes for
reporting and inquiry. Also, you can tie an attendance code to several
attendance classes depending on what data you want to use for your report or
inquiry.

Example
Grove Hospital established the following Attendance Codes and tied them to
the Attendance Classes listed below. They set up the UNPAID Attendance
Class to track the unpaid attendance codes for forecasting the payroll budget.
The Attendance Class ALL tracks all the attendance codes in order to forecast
the manpower needed.
Attendance Class Attendance Code
UNPAID NL - Non-Paid Leave of Absence
SC - Sick (Employee did not phone
in)
TA - Tardy
ALL ML - Medical Leave
NL - Non-Paid Leave of Absence
PL - Paid Leave of Absence
PO - Personal Day
SC - Sick (Employee phoned in)
SK - Sick (Employee did not phone
in)
SN - Snow Day
TA - Tardy
VA - Vacation

72 Chapter 3 Setting Up Time and Attendance Payroll User Guide

Procedures in this Chapter
To set up Time and Attendance, you must deÞne attendance codes and have
the option to set up attendance classes.
The following procedures explain how to set up Time and Attendance:
• "DeÞning Attendance Codes" on page 73
• "DeÞning Attendance Classes" on page 73

DeÞning Attendance Codes

You must deÞne attendance codes if you use Time and Attendance.

STOP If you want to associate attendance codes with pay codes, you must
deÞne pay codes before deÞning attendance codes. For more information,
see "DeÞning Pay Codes" on page 58.

Need More Details? Check out the following concepts:

• "What are Attendance Codes?" on page 70
• "What are Attendance Classes?" on page 72
• "What are Attendance Points?" on page 71

STEPS To deÞne attendance codes

1. Access Attendance Code (TM01.1).
2. Type the attendance code in the Attendance Code Þeld.
3. Type a description of the attendance code in the Description Þeld.
4. If this attendance code uses points, type the points in the Points Þeld.
TIP If you associate 5. If you want to associate this attendance code with a pay code, select
a pay code with an the pay code in the Pay Code Þeld.
attendance code, you
can enter an attendance
code during time record Related Reports and Inquiries
entry and the associated
pay code defaults. To Use
List attendance codes Attendance Code Listing (TM201)

DeÞning Attendance Classes

You can create attendance classes to group attendance codes.

Payroll User Guide Chapter 3 Setting Up Time and 73

Attendance
 STOP Before you can deÞne attendance classes, you must deÞne
attendance codes. For more information, see "DeÞning Attendance Codes"
on page 73.

Need More Details? Check out the following concepts:

• "What are Attendance Codes?" on page 70
• "What are Attendance Classes?" on page 72

STEPS To deÞne attendance classes

1. Access Attendance Class (TM02.1)
2. Type the attendance class and description in the Attendance Class Þelds.
3. Select the attendance classes you want to include in the attendance class
in the Attendance Code Þelds.

Related Reports and Inquiries

To Use
List attendance classes Attendance Class Listing (TM202)

74 Chapter 3 Setting Up Time and Attendance Payroll User Guide

Chapter 4

Setting Up Tax Structure

This chapter covers how to set up taxation within the Lawson Payroll.

STOP Before you set up you tax structure, you must set up your pay
structure. For more information, see "Setting Up Pay Structure" on page 29.

Payroll User Guide Chapter 4 Setting Up Tax Structure 75

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"U.S. Procedures in this
Chapter" on page 81 • "What is BSI? (U.S. and C.A.)" on page 76
"Canada Procedures in • "What is a Tax Authority? (U.S. and C.A.)" on page 77
this Chapter" on page
85. • "What is a Garnishment-Only Tax Authority? (U.S. and C.A.)" on
page 78
• "What is a Tax Reporting Group?" on page 78
• "What are Report Entities?" on page 79
• "What are Related Report Entities?" on page 80

What is BSI? (U.S. and C.A.)

Business Software, Inc. (BSI) is third-party software that Lawson uses to
maintain tax tables for the Lawson Payroll. BSI maintains tax changes such
as tax rates, tax laws, and tax limits.

BSI Setup Requirements and Options

BSI provides federal and most state, province, local, city, and county tax
tables you need. You must separately maintain any city or county tax that
BSI does not provide.
You must map each user deÞned Tax Code to a BSI System Tax Code within
the BSI product.
You must enter the BSI company code on the Company (HR00) setup
program.
During the initial installation, you must create any tax authority names and
input unemployment experience ratings (custom data).
If you have multiple unemployment experience rates within the same state,
you need to deÞne multiple BSI company codes. You assign the different
BSI company codes to separate process levels and different unemployment
experience rates to each BSI company code.
A BSI company code on a process level overrides the BSI company on the
HR company.
A BSI company code on an head process level overrides the BSI company
code on the dependent process level assigned to it.
All tax deductions must be linked to the proper BSI tax authority via a tax
authority for tax calculation. For more information, see "What is a Tax
Authority? (U.S. and C.A.)" on page 77.
For U.S. tax jurisdictions, BSI includes a feature called TaxLocator, which
automatically assigns tax deductions to employees. For more information,
see "How Do I View and Modify Employee Tax Deductions?" on page 220.

76 Chapter 4 Setting Up Tax Structure Payroll User Guide

 Example
All of Two Rivers’ divisions are in Minnesota and New Jersey.
River Bend Hospital, in Minnesota, has an unemployment experience rate
different from the other Minnesota locations. Therefore, River Bend Hospital
must be its own unique process level with its own unique BSI company code
of TR2.
The same situation is true for Two Rivers’ New Jersey locations. Grove Clinic
has an unemployment experience rate different from the other New Jersey
locations. So, Grove Clinic remains its own unique process level with its own
unique BSI company code of TR3.
Figure 8. Example: BSI Companies
Two Rivers
Company

Two Rivers River Bend Grove Grove River Bend Grove River Bend Grove
Headquarters Hospital Hospital Clinic Flowers, Gifts Flowers, Gifts Restaurant Cafe

Location: MN Location: MN Location: NJ Location: NJ Location: MN Location: NJ Location: MN Location: NJ

BSI Company: BSI Company: BSI Company: BSI Company: BSI Company: BSI Company: BSI Company: BSI Company:
TR1 TR2 TR1 TR3 TR1 TR1 TR1 TR1

What is a Tax Authority? (U.S. and C.A.)

A tax authority creates the link between all tax deduction codes and the
appropriate BSI tax code. This link tells BSI which tax tables to use to
calculate the tax deduction.
You deÞne a tax authority for federal taxes and for each of the states,
provinces, and localities in which Payroll calculates taxes for your
organization.

IMPORTANT Do not create more than one tax authority for each tax
jurisdiction in your organization. For example, do not deÞne one tax authority
for New Jersey state withholding and one tax authority for New Jersey
Unemployment. You only need one tax authority for New Jersey for BSI to
calculate the appropriate taxes.

You must tie each tax authority to the appropriate BSI tax code that you set up
in the BSI software. For more information on setting up BSI tax codes, see
the BSI Procedures Manual.
When you create a tax deduction, you must specify the appropriate tax
authority and tax category to direct Payroll to the appropriate tax table in BSI.
When you deÞne a tax authority, you can also deÞne a minimum wage for
federal and for each state or province. In the United States, Payroll uses the
appropriate minimum wage in the calculation of FLSA overtime, tip credit,
and income protected from garnishment. During overtime calculation, if the
employee’s regular rate is less than either the federal or state minimum wage,
Payroll replaces the regular rate with the greater minimum wage.

Payroll User Guide Chapter 4 Setting Up Tax Structure 77

What is a Garnishment-Only Tax Authority? (U.S. and C.A.)
Garnishment-only tax authorities allow you to process garnishments for a
locale in which you pay no taxes and, therefore, have no tax authority deÞned.
You do not need to create garnishment-only tax authorities for every locale
you process garnishments for; however, you do need either a tax authority or
garnishment-only tax authority set up for every jurisdiction for which you have
garnishment orders.

Example
Two Rivers Company operates in Minnesota, New Jersey, and Ontario. A new
employee moved from Dallas, Texas, and the payroll department received a
child support order from the state of Texas. Since Two Rivers does not have
a tax authority deÞned for Texas, they deÞned a new garnishment-only tax
authority for Texas.

What is a Tax Reporting Group?

A tax reporting group consists of process levels grouped together for federal
tax reporting. If your company has more than one tax reporting ID, you can
group all process levels that share the same ID into one tax reporting group.
Each tax reporting group has a head process level and at least one dependent
process level. A head process level is the “parent” for a tax reporting
group—all other process levels in the tax reporting group are attached the
head process level. A head process level must be independent and all other
process levels in the group must be dependent.
You can change tax reporting groups at any time during the year because
payroll history is stored by process level, not tax reporting group.

What is an Independent Process Level?

An independent process level is a process level that has a different tax
reporting ID than the company.
If an independent process level is part of a tax reporting group, it is deÞned as
the head process level. Each tax reporting group must have one independent
process level.
If you have only one tax reporting ID in your company, you do not use
independent process levels.

Example
Two Rivers Company consists of four process levels (one for each tax
reporting ID). They decide to expand two tax reporting IDs into multiple
process levels. Therefore, they need to group the process levels with the
same tax reporting IDs into tax reporting groups for federal tax reporting.
Grove Hospital and Clinic share a tax reporting ID of #41-4321003; however
since they represent separate process levels, Two Rivers groups them

78 Chapter 4 Setting Up Tax Structure Payroll User Guide

 together for reporting in the same tax reporting group. Grove Hospital is the
head process level with Grove Clinic dependent on it.
Two Rivers Services now has four process levels that share the federal tax ID
of #41-4321004. Therefore, Two Rivers groups them together for reporting
in the same tax reporting group. River Bend Flowers and Gifts is the head
process level and Grove Flowers and Gifts, River Bend Restaurant, and
Grove Cafe depend on it.
Figure 9. Example: Tax reporting groups
Two Rivers
Company
ID: 41-4321001

Two Rivers River Bend Grove Grove River Bend Grove River Bend Grove
Headquarters Hospital Hospital Clinic Flowers/ Gifts Flowers/Gifts Restaurant Cafe

Independent Independent & Head Process Independent & Head Process

ID: 41-4321002 Level Level
ID: 41-4321003 ID: 41-4321004

Tax Reporting Groups

What are Report Entities?

NOTE You do not A report entity is the process level or company to which the distribution
perform any set up for process level on an employee’s time record reports for tax reporting purposes.
report entities in Payroll,
but Payroll uses report The distribution process level is the process level assigned to a time record. If
entities when creating you do not assign a process level to a time record, the process level defaults
tax deductions. from the employee record.
The Payroll determines the report entity as follows.
If the distribution process level is The report entity is
An independent process level the same as the distribution process
level.
A dependent process level in a tax the head process level of the tax
reporting group with an independent reporting group.
head process level
A dependent process level under the the company.
company

Payroll User Guide Chapter 4 Setting Up Tax Structure 79

What are Related Report Entities?
NOTE You do not The Payroll application stores pay and deduction history by report entity.
perform any set up for When you set up a company in the Human Resources application you can
report entities in Payroll, choose to use related report entities. When you use related report entities,
but Payroll uses report
entities when creating Payroll uses the pay and deduction history from all report entities to determine
tax deductions. if employees meet the ceiling amount for a tax deduction. There are two
beneÞts of using related report entities:
• You do not need to create new deductions when an employee moves
from one tax reporting ID to another.
• Employees are not over-taxed if they move from one tax reporting ID to
another because their previous deduction balances move with them.
If you choose to use related report entities, HR relates report entities across
the entire HR company structure—not only those report entities within a
company or country. However, if an employee moves from one country to
another, you do have to create new deductions because each country has a
different set of tax deductions.
In the U.S., related report entities are related corporations under a common
paymaster.

Example 1
Employees in Two Rivers sometimes move from employment in one tax
reporting group to employment in another tax reporting group. This happens
often enough that Two Rivers decides to use related report entities.
Kori Anderson is a waitress in the Grove Cafe. She earns her nurse’s aide
license and Two Rivers employs her as a nurse’s aide at the Grove Clinic.
Because Two Rivers uses related report entities, Kori’s pay and deduction
history moves with her when she moves to a new tax reporting group. The
result is that Two Rivers does not need to start over with new tax deductions
for Kori, even though she is in a new tax reporting group.

Example 2
Two Rivers decides not to relate report entities across their company structure.
If a Two Rivers employee, Rose Mackenzie, moves from one tax reporting
group to another, it is necessary to start Rose’s ceiling tax deductions over.
However, because the system has a record of Rose’s deductions associated
with each previous time record and tax deduction amount, Two Rivers does
not need to stop Rose’s deductions in the former tax reporting group, nor do
they need to add new deductions for Rose in the new tax reporting group.

80 Chapter 4 Setting Up Tax Structure Payroll User Guide

U.S. Procedures in this Chapter
To deÞne a tax structure for use in the United States, you must deÞne tax
authorities for each of the locales in which you pay taxes (for example,
federal, states, counties, and so on). You can also create tax reporting groups
for reporting purposes.
• "DeÞning United States Tax Authorities" on page 81
• "Creating U.S. Tax Reporting Groups" on page 84

DeÞning United States Tax Authorities

Tax authorities determine the tax tables used to calculate tax deductions and
the minimum wage used to calculate FLSA overtime, tip credit, and income
protected from garnishment.

STOP Before you deÞne tax authorities, Lawson recommends that you
deÞne your BSI tax codes. For more information see the BSI Procedures
Manual and documentation provided by BSI.

Need More Details? Check out the following concepts:

• "What is BSI? (U.S. and C.A.)" on page 76
• "What is a Tax Authority? (U.S. and C.A.)" on page 77
• "What is a Garnishment-Only Tax Authority? (U.S. and C.A.)"
on page 78
• "What are Report Entities?" on page 79
• "What are Related Report Entities?" on page 80

Payroll User Guide Chapter 4 Setting Up Tax Structure 81

 Figure 10. Procedure ßow: DeÞning U.S. Tax Authority

1
Access Tax
Authority
PR06.1

2
Define Tax
Authority Name
and Description
PR06.1

3
Link Tax Authority
to BSI Code
PR06.1

4
Define Reporting
Parameters
PR06.1

5
Define Location
Information
PR06.1

6
Determine if Tax
Authority is used
for Garnishments
PR06.1

7
- Optional -
Define Additional
EINs
PR06.2

8
- Conditional -
Define Minimum
Wages
PR06.3

9
- Conditional -
Define State
Reporting
Requirements
PR06.4 to PR07.9

82 Chapter 4 Setting Up Tax Structure Payroll User Guide

 STEPS To deÞne United States Tax Authorities
1. Access US Tax Authority (PR06.1).
2. Type the name and description of the tax authority in the Tax Authority
Þelds.
NOTE The BSI tax 3. Type the BSI tax code you want to link to the tax authority in the BSI Tax
code you type in this Code Þeld. The code you type in this Þeld must exactly match the code
Þeld determines the tax you deÞned in BSI.
tables BSI uses for this
tax authority. 4. DeÞne reporting parameters. Consider the following Þelds.

EIN (Employer The tax reporting ID, also known as the employer
IdentiÞcation identiÞcation number (EIN). This is used for
Number) quarterly and W-2 reporting.
You can override this number for each process
level using the Addl EIN button.
Employer Account The employer account number for state
Number unemployment insurance. The employer account
number is used for quarterly reporting.
You can override this number for each process
level using the Addl EIN button.
W2 Description The tax authority description you want to print
on the W-2 form created by W-2 Forms (PR297)
for state and local taxes.

5. DeÞne location information. Consider the following Þelds.

State The state in which the tax authority is located.

Reciprocity Determines whether or not the state or locality
participates in reciprocity.
County Code The county code associated with the location.
School District The school district number associated with the
Number location.

6. Select whether or not this tax authority is only used for garnishments in
the Used For Garnishments Only Þeld.
NOTE Additional EINs 7. If a speciÞc company, process level, or department uses a different EIN or
allow you to use the the Employer Account Number than the one you type on this form, choose
same tax tables for more the Addl EIN button and deÞne any additional EINs.
than one EIN.
NOTE Minimum wage is 8. If your organization calculates FLSA overtime under this tax authority you
veriÞed in the calculation must choose the Min Wage button to deÞne minimum wages.
of FLSA overtime and
income protected from 9. If this a state tax authority that requires additional reporting information
garnishments. you must choose the State Rpt button to deÞne the additional information.

Payroll User Guide Chapter 4 Setting Up Tax Structure 83

 Related Reports and Inquiries
To Use
List tax authorities Tax Authority Listing (PR206)

Creating U.S. Tax Reporting Groups

A tax reporting group consists of process levels grouped together for federal
tax reporting. If your company has more than one tax reporting ID, you can
group all process levels that share the same ID into a tax reporting group.

STOP Before you deÞne tax reporting groups, you must deÞne the head
process level as independent on Process Level (HR01.1) in the Human
Resources application. For more information, see the Human Resources
User Guide.

Need More Details? Check out the following concepts:

• "What is a Tax Reporting Group?" on page 78

STEPS To deÞne U.S. tax reporting groups

1. Access Head Process Level (PR09.1).
2. Select the process level you want to use as the head process level for this
tax reporting group in the Head Process Level Þeld.
3. Select the process levels you want to assign to the head process level
in the Process Level Þelds.

Related Reports and Inquiries

To Use
List tax reporting groups Tax Reporting Groups Listing
(PR209)

84 Chapter 4 Setting Up Tax Structure Payroll User Guide

Canada Procedures in this Chapter
To deÞne a tax structure for use in Canada, you must deÞne tax authorities for
each of the locales in which you pay taxes (for example, federal, provinces,
and so on). You can also create tax reporting groups for reporting purposes.
• "DeÞning Canada Tax Authorities" on page 85
• "Creating Canada Tax Reporting Groups" on page 87

DeÞning Canada Tax Authorities

Tax authorities determine the tax tables used to calculate tax deductions.

STOP Before you deÞne tax authorities, Lawson recommends you deÞne
your BSI tax codes. For more information see you BSI Procedures Manual
and documentation provided by BSI.

Need More Details? Check out the following concepts:

• "What is BSI? (U.S. and C.A.)" on page 76
• "What is a Tax Authority? (U.S. and C.A.)" on page 77
• "What is a Garnishment-Only Tax Authority? (U.S. and C.A.)"
on page 78
• "What are Report Entities?" on page 79
• "What are Related Report Entities?" on page 80

Payroll User Guide Chapter 4 Setting Up Tax Structure 85

 Figure 11. Procedure ßow: DeÞning Canada Tax Authorities

1
Access Canada
Tax Authority
PR08.1

2
Define Tax
Authority Name
and Description
PR08.1

3
Link Tax Authority
to BSI Code
PR08.1

4
Define the Type of
Tax Authority
PR08.1

5
- Conditional -
Define Province of
Tax Authority
PR08.1

6
Determine if Tax
Authority is used
for Garnishments
PR08.1

7
- Optional -
Define Minimum
Wage
PR08.2

STEPS To deÞne Canada tax authorities

1. Access Canada Tax Authority (PR08.1).
2. Type the name and description of the tax authority in the Tax Authority
Þelds.

86 Chapter 4 Setting Up Tax Structure Payroll User Guide

NOTE The BSI tax 3. Type the BSI tax code you want to link to the tax authority in the BSI Tax
code you type in this Code Þeld. The code you type in this Þeld must exactly match the code
Þeld determines the tax
tables BSI uses for this you deÞned in BSI.
tax authority. 4. Select if this is a Federal or Provincial tax authority in the Type Þeld.
5. If you selected Provincial in the Authority Type Þeld, select the province in
which this tax authority is located.
6. Select whether or not this tax authority is only used for garnishments in
the Used For Garnishments Only Þeld.
7. Choose the Minimum Wage button to access Canada Minimum Wage
(PR08.2) and deÞne minimum wage information for the tax authority.
These minimum wages are informational only.

Related Reports and Inquiries

To Use
List tax authorities Tax Authority Listing (PR206)

Creating Canada Tax Reporting Groups

A tax reporting group consists of process levels grouped together for federal
tax reporting. If your company has more than one tax reporting ID, you can
group all process levels that share the same ID into a tax reporting group.

STOP Before you deÞne tax reporting groups, you must deÞne the head
process level as independent on Process Level (HR01.1) in the Human
Resources application. For more information, see the Human Resources
User Guide.

Need More Details? Check out the following concepts:

• "What is a Tax Reporting Group?" on page 78

STEPS To deÞne Canada tax reporting groups

1. Access Head Process Level (PR09.1).
2. Select the process level you want to use as the head process level for this
tax reporting group in the Head Process Level Þeld.
3. Select the process levels you want to assign to the head process level
in the Process Level Þelds.

Related Reports and Inquiries

To Use
List tax reporting groups Tax Reporting Groups Listing
(PR209)

Payroll User Guide Chapter 4 Setting Up Tax Structure 87

88 Chapter 4 Setting Up Tax Structure Payroll User Guide
Chapter 5

Setting Up Deduction Structure

Deduction structure determines how Payroll calculates deduction amounts

and posts them to the general ledger and how deductions effect taxable
wages.

IMPORTANT One-time deductions are not covered in this chapter, due

to their similarity to time records and the need to maintain them before
the payroll cycle. For more information, see "Time Records: Pre-entry
Maintenance" on page 285.

STOP Before you set up your deduction structure you must set up
your Human Resources structure. For more information, see the Human
Resources User Guide.

Payroll User Guide Chapter 5 Setting Up Deduction 89

Structure
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 102 • "What are Deduction Classes?" on page 90
• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee Pay?"
on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101

What are Deduction Classes?

Deduction classes are a convenient way to group deduction codes as one
total on reports and to provide a common description on payments and direct
deposit receipts.
You deÞne deduction classes and then apply them to the deduction codes you
want to group in the deduction classes.
You can assign a deduction class to as many deduction codes as needed, but
a deduction code can only be assigned to one deduction class.

Example
The Two Rivers Company groups deduction codes into the following
deduction classes.
Deduction Class Deduction Codes Payment Description
DC - DeÞned 401E, 401C DC
Contribution
FCA - FICA Deductions MEDE, MEDC, SS-E, FICA
SS-C

When Two Rivers creates payments and direct deposit receipts for its
employees, the payment description prints along with the total of all the
deductions the employee has in that deduction class.
Two Rivers can also use the deduction classes when they run deduction
listings and reports. Instead of selecting each deduction code for the listing
or report, they can select the deduction class. As a result, listings or reports
include all the deduction codes assigned to the deduction class.

90 Chapter 5 Setting Up Deduction Structure Payroll User Guide

What is a Deduction Code?
A deduction code represents a reduction in pay or an add-to-net amount that
needs to be applied to employee wages. A deduction code can represent any
type of deduction, including tax, workers’ compensation, pre-tax, and so on.
You can deÞne three categories of deduction codes:
• Employee-paid, which reduces employee gross pay.
• Company-paid, which calculates the amounts that companies must pay
for certain deductions.
• Add-to-Net, which adds the deduction amount to employee net pay.
Payroll uses deduction codes to determine how to:
• Calculate the deduction amount
• Print descriptions of the deduction on the payment stub or direct deposit
receipt
• Post deduction accruals to the general ledger
• Expense company-paid deductions to the general ledger
• Store deduction history
The following table lists the different types of deduction codes you can create:

Payroll User Guide Chapter 5 Setting Up Deduction 91

Structure
 Tax A deduction code Payroll uses to
deduct taxes from employee pay and
to calculate and expense employer
paid taxes.
Company Match A deduction code to use for a
matching contribution to employee
deÞned contribution plans, such as
401(k) plans in the U.S.
After Tax Limit A deduction code to use
for contributions to a
deÞned-contribution plan after
an employee reaches the federal
limit for pre-tax contributions. These
deductions are taxable.
Pre-Tax A deduction code for deductions that
Payroll deducts from employee pay
before taxes are applied.
Garnishment A deduction code to use for
employee garnishments in the U.S.
and Canada.
Attachment A deduction code to use for
employee attachment of earnings in
the U.K.
Workers’ Compensation A deduction code to use for workers’
compensation deductions.
BeneÞts A deduction code tied to a beneÞts
plan in the BeneÞts Administration
application.
Add-to-Net A deduction code which will add an
amount to employee net pay.
Miscellaneous A deduction code for any use
including union dues, employee
loans, or any other type of deduction.

Example
Two Rivers Company has deÞned the following deduction codes.

92 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Employee-paid Deduction Company - paid Deduction
Deduction Code Deduction Code
U.S. Medicare - MEDE Medicare - Company MEDC
Employee paid paid
U.S. Social Security - SS-E Social Security SS - C
Employee paid -Company paid
U.S. Federal Tax FIT U.S. Federal FUTA
Unemployment
MN Tax MNW MN Unemployment MNU
NJ Tax NJW
NJ Unemployment NJUE NJ Unemployment NJUC
-Employee paid -Company paid
NJ Disability NJDE NJ Disability - NJDC
-Employee paid Company paid
Employee Loan LOAN
Federal Tax Levy LEVY
Child Support CSUP
United Way UWAY
Medica Health HLTH
401(k) - Employee 401E 401(k) - Co-Match 401C
Canada Pension Plan- CPPE Canada Pension Plan - CCPR
Employee Company paid
Canada Employment EIEE Canada Employment EIER
Insurance - Employee Insurance - Company

How does Payroll Calculate Deductions?

The deduction calculation type, in conjunction with the deduction priority,
determines how Payroll calculates the deduction.
The following list describes each of the calculation types you can assign to
a deduction:
Percent of Employee Deduction Calculates the deduction amount as
a percentage of a speciÞc employee
deduction amount. Use this
calculation type for company match
deductions for deÞned contribution
plans.
Amount Per Hour Calculates deduction amounts
based on the number of hours
worked. This calculation type is
often used for union dues.

Payroll User Guide Chapter 5 Setting Up Deduction 93

Structure
 Percent Calculates the deduction based on a
percentage of gross wages or pay
class wages. Use this calculation
type for deÞned contribution
deductions.
Tax Calculates deduction amounts
based on the BSI tax tables.
Use this calculation type for all
employee-paid and company-paid
taxes and statutory deductions
including social insurance, federal,
state or province, county, city,
unemployment, disability, and so on.
Percent of Disposable Income Calculates the deduction amount
(U.S.) or Net Wages (Canada) as a percent of disposable income
or net wages. Use this calculation
type for garnishments. For more
information, see "What Kinds of
Employee Wages does Payroll use
for Garnishments?" on page 160.
Flat Amount Calculates the deduction as a ßat
amount without regard to hours or
earnings for the pay period. This
calculation type is typically used for
health insurance, miscellaneous,
and one-time deductions.
Amount Per Day Calculates a ßat amount per work
day based on time record dates.
Percent of Base Per Hour Calculates the deduction as a
percentage of the base hourly pay
as deÞned on the employee record.
For hourly employees, base hourly
pay is determined in the Rate of
Pay Þeld on the employee record.
For salaried employees, the gross
salary is divided by the number of
annual hours, then multiplied by the
number of hours on the time record;
the deduction percentage is then
calculated from that amount.
Flat Amount Plus Percentage of Calculates the deduction based on
Gross Pay a ßat amount plus a percentage of
gross pay. Use this calculation type
for garnishments.

94 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Percent of Disposable Income Calculates the deduction amount by
(U.S.) or Net Wages (Canada) with comparing a minimum ßat amount to
a Minimum Flat Amount a percentage of disposable income.
The greater of the two amounts
is deducted. Use this calculation
type for garnishments. For more
information, see "What Kinds of
Employee Wages does Payroll use
for Garnishments?" on page 160.
Percent of Available Wages Calculates the deduction as a
(Canada) percent of the wages available for
garnishments. For more information,
see "What Kinds of Employee Wages
does Payroll use for Garnishments?"
on page 160.
UK Working Family Tax Credit Calculates the deduction amount
based on UK Working Family Tax
Credit regulations.
UK Court Orders Calculates the deduction amount
based on UK Attachment of Earnings
rules and tables.
UK COMPS/COSRS Pensions Calculates the deduction amount
based on UK pension schemes
established through beneÞt plans in
BeneÞt Plan (BN15.1).
Custom Calculation Calculates the deduction according
to a user-deÞned calculation.

Example
Based on the deductions established by Two Rivers Company, the following
deductions were deÞned.

Payroll User Guide Chapter 5 Setting Up Deduction 95

Structure
NOTE Calculation types
Deduction Code Calculation Type Additional Information
can vary. The ones
listed in this example are MEDE (Medicare Tax Tax Category = 5
suggestions. Employee-paid)
MEDC (Medicare Tax Tax Category = 6
Company-paid)
SS-E (Social Insurance Tax Tax Category = 3
Employee-paid)
SS-C (Social Insurance Tax Tax Category = 4
Company-paid)
FIT (Federal income Tax Tax Category = 1
Tax)
FUTA (Federal Tax Tax Category = 10
unemployment tax)
NJIT (New Jersey State Tax Tax Category = 1
Income Tax)
LOAN (Employee loan) Flat Amount Rate determined by
user
LEVY (Garnishment Percent of Disposable Garnishment Deduction
levy) Income or Net Wages
CSUP (Child support) Flat Amount plus a % Garnishment Deduction
of gross pay
401EP (401(k) Percentage Rate Rate determined by
contribution, employee
employee-paid)
401CE (401(k) Percent of Employee Match Deduction =
contribution, Deduction 401E
company-paid)
CPPE (Canada Tax Tax Category = 1
Pension Plan,
employee-paid)
CPPR (Canada Tax Tax Category = 3
Pension Plan,
employer-paid)
EIEE (Canada Tax Tax Category = 2
Employment Insurance
- employee paid)
EIEE (Canada Tax Tax Category = 4
Employment Insurance
- employer paid)

96 Chapter 5 Setting Up Deduction Structure Payroll User Guide

In What Order does Payroll Apply Deductions to Employee
Pay?
Within Payroll, the deductions that reduce employee pay are applied to
employee pay in the following speciÞc order:
1. Current tax deductions
2. Current garnishment deductions and one-time garnishment deductions
3. Current other deductions
4. One-time tax deductions
5. One-time other deductions
You can further deÞne the order in which Payroll takes deductions within
the above categories by assigning a priority number to a deduction code. A
deduction with a value of 1 is taken Þrst and a value of 9 is taken last within
its category.
If all the deductions within a grouping have the same priority number, they
are taken in numeric, alphanumeric order based on the four-digit deduction
code value.
For more information, see "What are One-Time Deductions?" on page 286.

Example
Two Rivers Company Minnesota locations elected to have the priority Þeld
on all the deductions default to a value of one when they were established.
Therefore, Payroll applies the deductions in the following order:
1. FED–Federal withholding
2. FUTA–Federal unemployment
3. MNWH–Minnesota withholding
4. LEVY
5. LEV1–One time levy
6. 401K
7. HLTH–Health insurance
8. FED1–One time federal tax deduction
9. HTH1–One time health insurance deduction

What is Arrears?
Arrears is the term used when deductions cannot be taken during a payroll
cycle because an employee’s pay is insufÞcient to support all scheduled
deductions. The next time the employee receives pay, the deductions are
applied to the pay.

Payroll User Guide Chapter 5 Setting Up Deduction 97

Structure
 Payroll creates arrears in three situations:
1. A deduction is deÞned to create arrears and an employee assigned that
deduction does not have enough pay to cover the deduction when Payroll
creates deductions.
2. An employee is assigned deductions that must be taken every pay period,
but the employee does not have any time records in current, processed,
or error status for a pay period. You must run an arrears automation
program for Payroll to create these arrears deductions.
3. An employee is assigned deductions that must be taken every pay period
and does have current time records, but does not receive any net pay
(receives only non-cash pay) for a pay period. You must run an arrears
automation program for Payroll to create these arrears deductions.

How does Payroll put Deductions into Arrears?

You deÞne how a deduction goes into arrears when you deÞne the deduction
code. Below are the selections you can make to deÞne how a deduction
goes into arrears:
All or None - Yes If the net pay is insufÞcient to support
the deduction in full, the application
does not take the deduction and the
entire amount is put into arrears.
All or None - No If the net pay is insufÞcient to support
the deduction in full, the application
does not take the deduction and no
arrears are created.
Net to Zero - Yes The application will take as much of
the deduction as possible until net
pay is zero and places the remaining
amount in arrears.
Net to Zero - No The application will take as much of
the deduction as possible until net
pay is zero and does not place the
remaining amount in arrears.

Example
Two Rivers Company has deÞned all the Tax deductions with arrears set to Net
to Zero - Yes. Therefore, if there is not enough pay to cover the necessary tax
deductions, the application will take as much as it can and put the remaining
tax deductions into arrears to be taken the next time the employee is paid.

What are Deduction Cycles?

A deduction cycle identiÞes a combination of deductions to be taken from a
payment. When you deÞne a deduction code in Payroll, you assign it to the
deduction cycles it belongs in. You can also override the deduction cycle
when you assign deductions to employees.

98 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 You assign beneÞts deductions to deduction cycles when you create a
beneÞts frequency table in the BeneÞts Administration application. See the
BeneÞts Administration User Guide for more information.
You can deÞne up to nine unique deduction cycles. When you assign a
deduction code to a deduction cycle, you designate one of the following:
• If applicable taxable wages are updated and the deduction is taken
• If applicable taxable wages are updated only
When you process the payroll cycle, you designate which deduction cycle
Payroll uses to process deductions.

Example
Two Rivers uses the Þrst deduction cycle for processing all weekly payroll
cycles. The second and third deduction cycles are for two semi-monthly
payrolls. Semi monthly employees use different deduction cycles during the
payroll cycle, so certain deductions will only be deducted monthly (HLTH on
the Þrst paycheck and LOAN and UWAY on the second paycheck) Deduction
cycle four is for sales commission and bonus pay cycles. Two Rivers uses
deduction cycle nine for year-end updates of taxable wages. The remaining
cycles are reserved for future use.
1 2 3 4 5 6 7 8 9
Wkly Semi- Semi- Sales Future Future Future Future Update
Monthly Monthly Commission/ Use Use Use Use Taxable
1 2 Bonus Wages Y/E
MEDE X X X X T
MEDC X X X X T
SS-E X X X X T
SS-C X X X X T
FIT X X X X T
FUTA X X X X T
SIT X X X X T
SUTA X X X T
LOAN X X
LEVY X X X X
CSUP X X X
UWAY X X X
HLTH X X
401E X X X
401C X X X

Payroll User Guide Chapter 5 Setting Up Deduction 99

Structure
What is a Required Deduction?
Required deductions are deductions that Payroll automatically assigns
to the employees you enter into the Human Resources application. Using
required deductions reduces the number of deductions that you need to
manually assign to employees.
There are two elements that make up a required deduction:
• Deduction Code—the deduction you want to be required.
• Deduction Required Code—a code that deÞnes the criteria employees
must meet to have the deduction automatically assigned to them. You
assign this code to the deduction code to make the deduction required.
Employees are only assigned the required deductions for which they meet
the criteria deÞned in Payroll.
You can update required deductions for an individual in the Human Resources
and Payroll applications or you can update required deductions for a group in
Payroll.

Tax Deductions and Required Deduction Codes

For U.S. tax deductions, you cannot use required deduction codes. A feature
of BSI called BSI TaxLocatorTM automatically updates tax deductions for U.S.
employees. For more information, see "How Do I View and Modify Employee
Tax Deductions?" on page 220.
For Canada deductions, Lawson recommends that you do use required
deduction codes. Using deduction required codes eliminates the need to
manually assign each employee to tax deductions. For more information,
see "Employee: Taxes" on page 217.

Example
Two Rivers Company wanted to automatically assign all Canada employees in
the company to Employment Insurance and Canada Pension Plan deductions
(both employee-paid and company-paid). Two Rivers also wanted to
automatically assign workers’ compensation deductions to all U.S. employees.
Two Rivers Company deÞned the following deduction required codes to meet
their needs:
Deduction Required Required Criteria on Deduction Code
Code Employee Record
CAN Work country = Canada CPPR, CPPE, EIEE,
EIER
US Work Country = U.S. WCUS

100 Chapter 5 Setting Up Deduction Structure Payroll User Guide

What is the Accounts Payable Interface?
With Payroll, you have the option of sending deduction transactions to the
Lawson Accounts Payable application for payment. If you choose to use
this capability:
• All organizations or persons to be paid must be set up in Accounts
Payable as vendors.
• You have the option of creating an invoice for each employee deduction
or combining the deductions into one invoice.
• Accounts Payable is updated with the deductions when you close payroll
each payroll cycle. Closing Payroll creates invoices in Accounts Payable
ready for payment (they’re sent through as released).
• Accounts Payable processes and prints checks during the regular
Accounts Payable payment cycle.

Example
Two Rivers Company sends their tax payables, among other things, to
Accounts Payable for payment. They establish the Minnesota Department of
Revenue as a Vendor (Vendor #2) in the Accounts Payable application.
Vendor #2, the Minnesota Department of Revenue, is attached to the
deduction code for Minnesota Withholding Tax so that all the money collected
for Minnesota Withholding tax during the payroll cycle can be sent together to
Accounts Payable for payment when the payroll is closed.

Payroll User Guide Chapter 5 Setting Up Deduction 101

Structure
Procedures in this Chapter
NOTE One-time To deÞne a deduction structure you must deÞne deduction codes. Optionally,
deductions are not you can deÞne deduction classes, which group deduction codes.
covered in this chapter,
due to their similarity • "DeÞning Deduction Classes" on page 102
to time records and the • "DeÞning Deduction Required Codes" on page 102
need to maintain them
before the payroll cycle. • "DeÞning Deduction Codes" on page 103
For more information,
see "Time Records:
Pre-entry Maintenance"
on page 285.

DeÞning Deduction Classes

DeÞne deduction classes to group deductions for reports and inquiries, to
deÞne a common payment description for multiple deduction codes, and to
use in BeneÞts Administration maintenance of deÞned contribution deductions.

Need More Details? Check out the following concepts:

• "What are Deduction Classes?" on page 90

STEPS To deÞne deduction classes

1. Access Deduction Class (PR02.1).
2. Type the deduction class in the Class Þeld.
3. Type a description of the deduction class in the Description Þeld.

DeÞning Deduction Required Codes

Deduction required codes deÞne the criteria employees must meet to have a
deduction automatically assigned to them. You assign a deduction required
code to a deduction code to make the deduction required.

STOP Before you deÞne deduction required codes, you must deÞne your
pay structure. For more information, see "Setting Up Pay Structure" on page
29.

102 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Need More Details? Check out the following concepts:
• "What is a Required Deduction?" on page 100
• "What is a Deduction Code?" on page 91

STEPS To deÞne a deduction required code

1. Access Deduction Required Code (PR03.1).
2. Type a code to represent the deduction required code in the Required
Code Þeld.
3. Type a description of the deduction required code in the Description Þeld.
TIP If the required 4. Select whether or not this required code applies to all employees in the
code applies to all company.
employees do not deÞne
any additional criteria. 5. DeÞne combinations of criteria employees must meet for the required
code.
6. Select additional options that apply to all lines of criteria on the More tab.

Related Reports and Inquiries

To Use
List employees that meet required Deduction Listing (PR205)
deduction code criteria

DeÞning Deduction Codes

Deduction codes represent amounts withheld from employee wages for
employee paid deductions, such as taxes. Deduction codes also represent
company-paid deductions that Payroll calculates for each employee and
add-to-net deductions. You can deÞne different types of deduction codes to
meet your deduction needs within Payroll.

Payroll User Guide Chapter 5 Setting Up Deduction 103

Structure
 "DeÞning Tax Deduction Codes" on Create a deduction code Payroll
page 104 uses to deduct taxes from employee
pay.
"DeÞning Company Match Deduction Create a deduction code to use for
Codes" on page 110 a matching contribution to employee
deÞned contribution plans, such as
401(k) plans in the U.S.
"DeÞning Linked After-Tax Limit Create a deduction code to
Deductions" on page 114 use for contributions to a
deÞned-contribution plan after
an employee reaches the federal
limit for pre-tax contributions. These
deductions are taxable.
"DeÞning Pre-Tax Deduction Codes" Create a deduction code for
on page 118 deductions that Payroll deducts
from employee pay before taxes are
applied.
"DeÞning US and CA Garnishment Create a deduction code to use for
Deduction Codes" on page 122 employee garnishments.
Create a deduction code to use for
workers’ compensation deductions.
"DeÞning BeneÞts Deductions" on Create deductions tied to a BeneÞts
page 129 plan.
"DeÞning Add-to-Net Deductions" on Create a deduction code which will
page 131 add an amount to employee net pay.
"DeÞning Miscellaneous Deductions" Create a deduction for any use
on page 134 including union dues, employee
loans, or any other type of deduction.

DeÞning Tax Deduction Codes

Tax and statutory deduction codes represent deductions that must be
taken from employee pay according to the laws governing the employee
or employer.

STOP If this deduction uses deduction required codes, you must deÞne
deduction required codes before deÞning this tax deduction. For more
information, see "DeÞning Deduction Required Codes" on page 102.

104 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Need More Details? Check out the following concepts:
• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101

STEPS To deÞne a tax deduction

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

NOTE The alphanumeric name of the deduction

code plays a role in the order in which deductions
are applied to employee pay.

(Description) The description of the deduction.

Payroll User Guide Chapter 5 Setting Up Deduction 105

Structure
 Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select Tax in the Calculation Type Þeld.

4. DeÞne pay information. Consider the following Þeld.

Currency Determines the currency you want Payroll to use

to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

5. Select if this is a Company or Employee-paid tax deduction in the Adjust

Pay Þeld.
6. If you want to include this deduction in a deduction class, select the
deduction class in the Deduction Class Þeld.
7. DeÞne deduction processing options. Consider the following Þelds.

Priority The number that represents the order in which

Payroll takes the deduction within the category
of Tax Deductions.
Arrears Select what you want Payroll to do if there is not
enough employee pay to cover the deduction.

106 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Cycles Select the deduction cycles in which Payroll takes
the deduction.
Select X to indicate the cycle the deduction is
valid for.
Select T for any deduction cycle in which taxable
wages are updated but taxes are not taken.

NOTE You can override the value in these

Cycles Þelds for individual employees when you
assign the deduction to employees. For more
information, see "Employee: Taxes" on page 217.

8. If this is a Canada tax deduction and you want Payroll to automatically

assign this deduction to certain employees, select the deduction required
code in the Required Code Þeld.
NOTE When you 9. Type the beginning date or the date range that the deduction is in effect
calculate earnings and in the Effective Date Þelds. This date or date range can be overridden
deductions, Payroll on the employee deduction.
veriÞes the effective
date to ensure that the 10. Type the accrual account for the deduction in the Accrual Account Þeld.
deduction needs to be
taken. 11. If you want to override the accounts deÞned at the HR Company level,
select accounts for the deduction in the Expense Account Þeld.
12. DeÞne deduction limits. Consider the following Þelds.

Monthly Limit The maximum amount Payroll can deduct for this
deduction in one month.

NOTE You can override this amount for individual

employee deductions.

Payment Limit The maximum amount Payroll can deduct for this
deduction in one payment.

NOTE You can override this amount for individual

employee deductions.

13. If you use the Project Accounting application, deÞne activity options.
Consider the following Þelds.

Activity The activity to which Payroll associates any

deduction expenses.
Account Category The activity category to which Payroll associates
any deduction expenses.

14. DeÞne tax information. Consider the following Þelds.

Country Code The country code you want to use to calculate

the deduction.

Payroll User Guide Chapter 5 Setting Up Deduction 107

Structure
 Tax Status Leave this Þeld blank to indicate a Taxable
deduction.
Tax Category Indicates the tax category for this tax deduction
code.

NOTE The tax categories available for you to

select are based on your selections in the Adjust
Pay and the Country Code Þelds.

Tax Authority Indicates the governing tax authority for the tax
deduction.
Self Adjust Tax Determines whether or not Payroll veriÞes the
year-to-date taxable wages multiplied by the rate
to determine the year-to-date ceiling tax and
makes necessary adjustments. This Þeld defaults
to Yes.

CAUTION If the rate changes in

mid-year and this Þeld is set to Yes, or if
you change this Þeld from No to Yes in
mid- year, Payroll makes adjustments to
the whole year-to-date, which results in
large adjustment amounts.
BSI Formula Determines which custom tax formula the system
uses in calculating this deduction.

NOTE Your organization must deÞne custom

data for a tax in the BSI tax tables before you can
use this Þeld.

Prior SUI Wages If this is a State Unemployment deduction code,

(Prior State this Þeld indicates if Payroll uses prior states’
Unemployment unemployment taxable wages to calculate
Income Tax the taxable wages for the employee’s current
Wages) unemployment state.
MTD Wages Indicates whether or not the deduction is based
(Month-to-Date on month-to-date wages.
Wages)
NOTE The payment date you type on Earnings
and Deductions Calculation (PR140) determines
the pay records that are included in the
month-to-date calculation.

108 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 15. Choose the Ont EHT Wages (Ontario Employment Health Wages) button,
if the deduction is an Ontario EHT deduction, to deÞne or view wages.

IMPORTANT You can enter historical information by hand, if needed;

however, when you run Ontario EHT Wages (PR125), the Payroll
application updates this form.

16. If you use the Accounts Payable application, deÞne AP options. Consider
the following Þelds.

Update AP Indicates whether or not you want to create

invoices for payroll-related payables when you
close Payroll.
Create Invoice by Indicates whether or not you want to create AP
Employee invoices by employee.
For more information, see the Accounts Payable
User Guide.
Vendor The vendor you want to use to create accounts
payable invoices for this deduction.

NOTE Choose the Addl Vendors button to deÞne

vendors and process level combinations for this
deduction.

Remit To Remit To identiÞes a vendor location where

payments are to be remitted. This Þeld populates
the Remit-To-Code on AP invoice records
(AP20.1) via the AP Interface.
If you use this Þeld, the payment address comes
from Vendor Location (AP10.2). If Þeld this is left
blank, the payment address defaults from Vendor
(AP10.1).
Remit To can be deÞned for:
• An individual garnishment on US Employee
Garnishment (PR26.1) or Canada Employee
Garnishment (PR47.1).
• An individual process level override within
deduction on Additional Vendors (PR05.3).
• An entire deduction on Deduction (PR05.1)
If you use this Þeld, you must also select a
vendor in the Vendor Þeld.

Payroll User Guide Chapter 5 Setting Up Deduction 109

Structure
 Related Reports and Inquiries
To Use
List deductions Deduction Listing (PR205)

DeÞning Company Match Deduction Codes

Company match deduction codes represent a matching contribution to
employee-deÞned contribution plans, such as 401(k) plans in the U.S.
This type of deduction is tied to a beneÞt plan and is considered a BeneÞt
deduction.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101

STEPS To deÞne company match deduction codes

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.

110 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Payment The description of this deduction that prints on
Description payments.

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select Percent of Employee Deduction in the Calculation Type Þeld.

4. DeÞne pay information. Consider the following Þelds.

Pay Class Select a pay class if you want Payroll calculate

the deduction on the pay associated with a
speciÞc pay class.

TIP If you do not select a pay class in this Þeld,

the deduction is based on all the employee’s
wages in a pay period.

Currency Determines the currency you want Payroll to use

to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

5. Select Company Paid in the Adjust Pay Þeld.

6. If you want to include this deduction in a deduction class, select the
deduction class in the Deduction Class Þeld.
7. DeÞne deduction processing options. Consider the following Þelds.

Priority The number that represents the order in which

Payroll takes the deduction within the category
of Tax Deductions.
Arrears Determines what you want Payroll to do if there is
not enough employee pay to cover the deduction.

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Structure
 Cycles Select the deduction cycles in which Payroll takes
the deduction.
You can leave these Þelds blank for BeneÞts
deductions because the cycles are deÞned on
Frequency Table (BN04.1).

NOTE You can override the value in these Cycles

Þelds for individual employees when you assign
the deduction to employees.

8. Select the deduction you want to base this deduction on in the Matched
Deduction Þeld.
NOTE When you 9. Type the beginning date or the date range that the deduction is in effect
calculate earnings and in the Effective Date Þelds. This date or date range can be overridden
deductions, Payroll on the employee deduction.
veriÞes the effective
date to determine 10. Type the accrual account for the deduction in the Accrual Account Þeld.
whether or not to take
the deduction. 11. If you want to override the accounts deÞned at the HR Company level,
select accounts for the deduction in the Expense Account Þeld.
12. If you use the Project Accounting application, deÞne activity options.
Consider the following Þelds.

Activity The activity to which Payroll associates any

deduction expenses.

112 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Account Category The activity category to which Payroll associates
any deduction expenses.

13. DeÞne tax information. Consider the following Þeld.

Tax Status Select Taxable (blank) for pre-tax deductions.

14. If you use the Accounts Payable application, deÞne AP options. Consider
the following Þelds.

Update AP Indicates whether or not you want to create

invoices for payroll-related payables when you
close Payroll.
Create Invoice by Indicates whether or not you want to create AP
Employee invoices by employee.
For more information see your Accounts Payable
User Guide.
Vendor The vendor you want to use to create accounts
payable invoices for this deduction.

NOTE Choose the Addl Vendors button to deÞne

vendors and process level combinations for this
deduction.

Remit To Remit To identiÞes a vendor location where

payments are to be remitted. This Þeld populates
the Remit-To-Code on AP invoice records
(AP20.1) via the AP Interface.
If you use this Þeld, the payment address comes
from Vendor Location (AP10.2). If Þeld this is left
blank, the payment address defaults from Vendor
(AP10.1).
Remit To can be deÞned for:
• An individual garnishment on US Employee
Garnishment (PR26.1) or Canada Employee
Garnishment (PR47.1).
• An individual process level override within
deduction on Additional Vendors (PR05.3).
• An entire deduction on Deduction (PR05.1)
If you use this Þeld, you must also select a
vendor in the Vendor Þeld.

Related Reports and Inquiries

To Use
List deductions Deduction Listing (PR205)
List frequency tables Frequency Table Listing (BN204)

Payroll User Guide Chapter 5 Setting Up Deduction 113

Structure
 DeÞning Linked After-Tax Limit Deductions
Use after-tax limit deduction codes to represent employee contributions
to a deÞned contribution plan on an after-tax basis. Payroll uses after-tax
limit deductions when an employee reaches the federal limit for pre-tax
contributions or when a plan offers after-tax deductions as a choice. This type
of deduction is tied to a beneÞts plan and is considered a BeneÞts deduction.

To use linked after-tax limit deductions, you must set the Federal Limit Þeld
to No and the Use AT Limit Deductions Þeld to Yes on Company (HR00.1).

IMPORTANT You can continue a deÞned contribution deduction after the

federal limit has been reach, if you have the Federal Limit Þeld set to No and
the Use AT Limit Deductions Þeld set to No on Company (HR00.1). However,
the same deduction code is used for both pre-tax and after-tax contributions.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is the Accounts Payable Interface?" on page 101

STEPS To deÞne a after-tax limit deduction

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.
Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select how you want Payroll to calculate the deduction in the Calculation
Type Þeld.

114 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 If the deduction is a Then select
Percent of employee gross pay Percent.
Flat amount to be deducted Flat Amount.

4. DeÞne pay information. Consider the following Þelds.

Pay Class Determines if you want the system to calculate

the deduction on pay associated with a speciÞc
pay class.

TIP If you do not select a pay class in this Þeld,

the deduction is based on all the employee’s
wages in a pay period.

Currency Determines the currency you want Payroll to use

to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

5. Select Employee Paid in the Adjust Pay Þeld.

NOTE If you select the 6. If you want to include this deduction in a deduction class, select the
deÞned contribution deduction class in the Deduction Class Þeld.
deduction class (deÞned
on HR00.1), the amount 7. DeÞne deduction processing options. Consider the following Þelds.
of this deduction applies
to BeneÞt Annual Limits Priority The number that represents the order in which
(BN12.1) , too. Payroll takes the deduction within the category of
other deductions.
Arrears Select what you want Payroll to do if there is not
enough employee pay to cover the deduction.
Cycles Select the deduction cycles in which Payroll takes
the deduction.
You can leave these Þelds blank for BeneÞts
deductions because the cycles are deÞned on
Frequency Table (BN04.1).

NOTE You can override the value in these Cycles

Þelds for individual employees when you assign
the deduction to employees.

Payroll User Guide Chapter 5 Setting Up Deduction 115

Structure
 Excl From Determines whether or not you want to subtract
Garnishment the deduction from employee pay before
(Exclude from calculating disposable income for garnishment
Garnishment) purposes. Disposable income equals gross pay
minus taxes and other deductions.

NOTE Do not use this Þeld for tax, company-paid,

or add-to-net deductions.

8. If your organization matches a portion of this deduction, select the

company match deduction in the Matched Deduction Þeld.
NOTE When you 9. Type the beginning date or the date range that the deduction is in effect
calculate earnings and in the Effective Date Þelds.
deductions, Payroll
veriÞes the effective 10. Type the accrual account for the deduction in the Accrual Account Þeld.
date to determine 11. DeÞne deduction limits. Consider the following Þelds.
whether or not to take
the deduction.
Monthly Limit The maximum amount Payroll can deduct for this
deduction in one month

116 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Payment Limit The maximum amount Payroll can deduct for this
deduction in one payment

12. If you use the Accounts Payable application, deÞne AP options. Consider
the following Þelds.

Update AP Indicates whether or not you want to create

invoices for payroll-related payables when you
close Payroll.
Create Invoice by Indicates whether or not you want to create AP
Employee invoices by employee.
For more information, see the Accounts Payable
User Guide.
Vendor The vendor you want to use to create accounts
payable invoices for this deduction.

NOTE Choose the Addl Vendors button to deÞne

vendors and process level combinations for this
deduction.

Remit To Remit To identiÞes a vendor location where

payments are to be remitted. This Þeld populates
the Remit-To-Code on AP invoice records
(AP20.1) via the AP Interface.
If you use this Þeld, the payment address comes
from Vendor Location (AP10.2). If Þeld this is left
blank, the payment address defaults from Vendor
(AP10.1).
Remit To can be deÞned for:
• An individual garnishment on US Employee
Garnishment (PR26.1) or Canada Employee
Garnishment (PR47.1).
• An individual process level override within
deduction on Additional Vendors (PR05.3).
• An entire deduction on Deduction (PR05.1)
If you use this Þeld, you must also select a
vendor in the Vendor Þeld.

Related Reports and Inquiries

To Use
List deductions Deduction Listing (PR205)
List frequency tables Frequency Table Listing (BN204)

Payroll User Guide Chapter 5 Setting Up Deduction 117

Structure
 DeÞning Pre-Tax Deduction Codes
Pre-tax deductions are deducted from employee pay before tax deductions,
which reduces taxable wages.

STOP If this pre-tax deduction uses a company match deduction or an

after-tax limit deduction, you must deÞne each of these elements before
deÞning the pre-tax deduction. For more information, see "DeÞning Company
Match Deduction Codes" on page 110. For more information, see "DeÞning
Linked After-Tax Limit Deductions" on page 114.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is the Accounts Payable Interface?" on page 101

STEPS To deÞne pre-tax deductions

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.
Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select how you want Payroll to calculate the deduction in the Calculation
Type Þeld.

118 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 If the deduction is a Select
Percent of employee gross pay Percent.
Flat amount to be deducted Flat Amount.

4. DeÞne pay information. Consider the following Þelds.

Pay Class Determines if you want the system to calculate

the deduction on pay associated with a speciÞc
pay class.

TIP If you do not select a pay class in this Þeld,

the deduction is based on all the employee’s
wages in a pay period.

Currency Determines the currency you want Payroll to use

to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

5. Select Employee Paid in the Adjust Pay Þeld.

6. If you want to include this deduction in a deduction class, select the
deduction class in the Deduction Class Þeld.
7. DeÞne deduction processing options. Consider the following Þelds.

Priority The number that represents the order in which

Payroll takes the deduction within the category
of Tax Deductions.
Arrears Select what you want Payroll to do if there is not
enough employee pay to cover the deduction.
Cycles Select the deduction cycles in which Payroll takes
the deduction.
You can leave these Þelds blank for BeneÞts
deductions because the cycles are deÞned on
Frequency Table (BN04.1).

NOTE You can override the value in these Cycles

Þelds for individual employees when you assign
the deduction to employees.

Payroll User Guide Chapter 5 Setting Up Deduction 119

Structure
 Excl From Determines whether or not you want to subtract
Garnishment the deduction from employee pay before
(Exclude from calculating disposable income for garnishment
Garnishment) purposes. Disposable income equals gross pay
minus taxes and other deductions.

NOTE Do not use this Þeld for tax, company-paid,

or add-to-net deductions.

8. If the beneÞts plan allows employees to contribute after they reach the
federal pre-tax limit, select an after tax limit deduction in the Linked
Deduction Þeld.
9. If your organization matches a portion of this deduction, select the
company match deduction in the Matched Deduction Þeld.
NOTE When you 10. Type the beginning date or the date range that the deduction is in effect
calculate earnings and in the Effective Date Þelds. This date or date range can be overridden
deductions, Payroll
veriÞes the effective on the employee deduction.
date to determine 11. Select the deduction accrual account in the Accrual Account Þeld.
whether or not to take
the deduction. 12. DeÞne deduction limits. Consider the following Þelds.

Monthly Limit The maximum amount Payroll can deduct for this
deduction in one month

120 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Payment Limit The maximum amount Payroll can deduct for this
deduction in one payment

13. If you use the Accounts Payable application, deÞne AP options. Consider
the following Þelds.

Update AP Indicates whether or not you want to create

invoices for payroll-related payables when you
close Payroll.
Create Invoice by Indicates whether or not you want to create AP
Employee invoices by employee.
For more information see your Accounts Payable
User Guide.
Vendor The vendor you want to use to create accounts
payable invoices for this deduction.

NOTE Choose the Addl Vendors button to deÞne

vendors and process level combinations for this
deduction.

Remit To Remit To identiÞes a vendor location where

payments are to be remitted. This Þeld populates
the Remit-To-Code on AP invoice records
(AP20.1) via the AP Interface.
If you use this Þeld, the payment address comes
from Vendor Location (AP10.2). If Þeld this is left
blank, the payment address defaults from Vendor
(AP10.1).
Remit To can be deÞned for:
• An individual garnishment on US Employee
Garnishment (PR26.1) or Canada Employee
Garnishment (PR47.1).
• An individual process level override within
deduction on Additional Vendors (PR05.3).
• An entire deduction on Deduction (PR05.1).
If you use this Þeld, you must also select a
vendor in the Vendor Þeld.

Related Reports and Inquiries

To Use
List deductions Deduction Listing (PR205)
List frequency tables Frequency Table Listing (BN204)

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Structure
 DeÞning US and CA Garnishment Deduction Codes
Employee garnishments are court-ordered or creditor deductions from an
employee’s pay.

STOP Garnishment deduction codes are one element in garnishment

setup. To deduct garnishments from employee pay you must also setup
garnishments and assign garnishments to employees. For more information,
see "Setting Up Garnishments" on page 155. For more information, see
"Employee: Garnishments" on page 245.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101
• "What are Garnishments?" on page 156

STEPS To deÞne garnishment deduction codes

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.
Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select how you want Payroll to calculate the deduction in the Calculation
Type Þeld.

122 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 If the deduction is a Select
Percent of employee gross pay Percent.
Flat amount to be deducted Flat Amount.
Percent of employee disposable Percent of Disposable/Net Wages.
wages (U.S.) or net wages
(Canada)
Percent of employee disposable Percent of Disposable/Net Wages
wages (U.S.) or net wages with Minimum Flat Amount.
(Canada) plus a minimum ßat
amount.
Percent of available wages Percent of Available Wages.
(Canada)

4. DeÞne pay information. Consider the following Þelds.

Pay Class Determines if you want the system to calculate

the deduction on pay associated with a speciÞc
pay class.
Currency Determines the currency you want Payroll to use
to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match, to assign the deduction to
the employee.

NOTE The calculation 5. Type the percent or ßat amount you want to deduct in the Amount -or-
type you assign to this Percent Þeld.
deduction determines if
the Amount -or- Percent
Þeld is an amount or a IMPORTANT Typically, the amount or percent is deÞned at the employee
percent. level. If you deÞne the amount or percent on the deduction, all employees
with this deduction have the same amount or percent deducted.

6. If you selected Flat Amount plus a Percent of Gross Pay or Percent of

Disposable/Net Wages with Minimum Flat Amount in the Calculation
type Þeld, type the additional percent or minimum amount in the Addl
or Minimum Amt, Pct Þeld.
7. Select Employee Paid in the Adjust Pay Þeld.
8. If you want to include this deduction in a deduction class, select the
deduction class in the Deduction Class Þeld.

Payroll User Guide Chapter 5 Setting Up Deduction 123

Structure
TIP You can override 9. DeÞne deduction processing options. Consider the following Þelds.
the value in these
Þelds for individual Priority The number that represents the order in which
employees when you
assign the garnishment Payroll takes the deduction within the category of
to employees. other deductions.
Arrears Select what you want Payroll to do if there is not
enough employee pay to cover the deduction.

NOTE Lawson recommends that you use Net to

Zero (No Arrears).

Cycles Select the deduction cycles in which Payroll takes

the deduction.

10. Select Yes in the Garnishment Þeld.

NOTE When you 11. Type the beginning date or the date range that the deduction is in effect in
calculate earnings and the Effective Date Þelds. This date or date range can be overridden on
deductions, Payroll
veriÞes the effective the employee garnishment.
date to determine 12. Select the deduction accrual account in the Accrual Account Þeld.
whether or not to take
the deduction. 13. DeÞne deduction limits. Consider the following Þelds.

Monthly Limit The maximum amount Payroll can deduct for this
deduction in one month.
Payment Limit The maximum amount Payroll can deduct for this
deduction in one payment.
NOTE Leave the 14. If you use the Accounts Payable application, deÞne AP options. Consider
Vendor Þeld blank the following Þelds.
and deÞne the vendor
on U.S. Employee
Garnishment (PR26.1) Update AP Indicates whether or not you want to create
or Canada Employee invoices for payroll-related payables when you
Garnishment (PR47.1). close Payroll.
For more information,
see "Employee: Create Invoice by Indicates whether or not you want to create AP
Garnishments" on page Employee invoices by employee.
245.
For more information see the Accounts Payable
User Guide.

124 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Related Reports and Inquiries
To Use
List deductions Deduction Listing (PR205)

DeÞning Workers’ Compensation Deductions

Workers’ compensation (WC) deductions allow you to accrue the workers’
compensation cost for each employee. Each employee must be assigned a
company-paid WC deduction.

IMPORTANT Workers’ compensation deduction codes are one element in

WC setup. To calculate WC premiums you must also setup WC classes and
WC plans. For more information, see "Setting Up Workers’ Compensation"
on page 141.

STOP Before you deÞne workers’ compensation deduction codes, you

must deÞne deduction required codes. For more information, see "DeÞning
Deduction Required Codes" on page 102.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101
• "How do I Process Workers’ Compensation?" on page 143

STEPS To deÞne workers’ compensation deduction codes

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.

Payroll User Guide Chapter 5 Setting Up Deduction 125

Structure
 Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select how you want Payroll to calculate the deduction in the Calculation
Type Þeld.

If the deduction is a Select

Percent of employee gross pay Percent.
Flat amount to be deducted Flat Amount.
Flat amount multiplied by the Amount per Hour.
number of hours worked
User deÞned calculation User Exit.

4. DeÞne pay information. Consider the following Þelds.

Pay Class Determines if you want the system to calculate

the deduction on pay associated with a speciÞc
pay class.

TIP Use a pay class that includes “All Hours

Worked.”

Currency Determines the currency you want Payroll to use

to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

5. Select Company Paid in the Adjust Pay Þeld.

6. If you want to include this deduction in a deduction class, select the
deduction class in the Deduction Class Þeld.
7. DeÞne deduction processing options. Consider the following Þelds.

Priority The number that represents the order in which

Payroll takes the deduction within the category of
other deductions.

126 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Cycles Determines the currency you want Payroll to use
to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

8. If you want Payroll to automatically assign this deduction to certain

employees, select the deduction required code in the Required Code Þeld.
NOTE When you 9. Type the beginning date or the date range that the deduction is in effect
calculate earnings and in the Effective Date Þelds.
deductions, Payroll
veriÞes the effective 10. Type the accrual account for the deduction in the Accrual Account Þeld.
date to ensure that it 11. If you want to override the accounts deÞned at the HR Company level,
must take the deduction.
select accounts for the deduction in the Expense Account Þeld.
12. If you use the Project Accounting application, deÞne activity options.
Consider the following Þelds.

Activity The activity to which Payroll associates any

deduction expenses.
Account Category The activity category to which Payroll associates
any deduction expenses.

13. Select Yes in the WC Rate Table Þeld to indicate that this deduction is
based on a workers’ compensation premium rate table.
14. DeÞne deduction limits. Consider the following Þelds.

Monthly Limit The maximum amount Payroll can deduct for this
deduction in one month.

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Structure
 Payment Limit The maximum amount Payroll can deduct for this
deduction in one payment.

15. If you use the Accounts Payable application, deÞne AP options. Consider
the following Þelds.

Update AP Indicates whether or not you want to create

invoices for payroll-related payables when you
close Payroll.
Create Invoice by Indicates whether or not you want to create AP
Employee invoices by employee.
For more information see your Accounts Payable
User Guide.
Vendor The vendor you want to use to create accounts
payable invoices for this deduction.

NOTE Choose the Addl Vendors button to deÞne

vendors and process level combinations for this
deduction.

Remit To Remit To identiÞes a vendor location where

payments are to be remitted. This Þeld populates
the Remit-To-Code on AP invoice records
(AP20.1) via the AP Interface.
If you use this Þeld, the payment address comes
from Vendor Location (AP10.2). If Þeld this is left
blank, the payment address defaults from Vendor
(AP10.1).
Remit To can be deÞned for:
• An individual garnishment on US Employee
Garnishment (PR26.1) or Canada Employee
Garnishment (PR47.1).
• An individual process level override within
deduction on Additional Vendors (PR05.3).
• An entire deduction on Deduction (PR05.1)
If you use this Þeld, you must also select a
vendor in the Vendor Þeld.

128 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Related Reports and Inquiries
To Use
List deductions Deduction Listing (PR205)

DeÞning BeneÞts Deductions

BeneÞts deductions represent contributions to beneÞts plans, such as life
insurance, health, dental, and pension plans, and so on.

IMPORTANT BeneÞts deduction codes are one element in beneÞts setup.

You must also set up beneÞts plans and enroll employees in the plans. For
more information see the BeneÞts Administration User Guide.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101

STEPS To deÞne beneÞts deductions

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.
Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select how you want Payroll to calculate the deduction in the Calculation
Type Þeld.

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Structure
 If the deduction is a Select
Flat amount to be deducted Flat Amount.
Percent Percent.
Percent of an employee deduction Percent of Emp Deduction.

4. DeÞne pay information. Consider the following Þelds.

Pay Class Determines if you want the system to calculate

the deduction on pay associated with a speciÞc
pay class.
Currency Determines the currency you want Payroll to use
to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

5. Select whether this deduction is employee or company paid in the Adjust

Pay Þeld.
6. If you want to include this deduction in a deduction class, select the
deduction class in the Deduction Class Þeld.
7. DeÞne deduction processing options. Consider the following Þelds.

Priority The number that represents the order in which

Payroll takes the deduction within the category of
other deductions.
Arrears Select what you want Payroll to do if there is not
enough employee pay to cover the deduction.
Excl From Determines whether or not you want to subtract
Garnishment the deduction from employee pay before
(Exclude from calculating disposable income for garnishment
Garnishment) purposes. Disposable income equals gross pay
minus taxes and other deductions.

NOTE Do not use this Þeld for tax, company-paid,

or add-to-net deductions.

130 Chapter 5 Setting Up Deduction Structure Payroll User Guide

NOTE When calculating 8. Type the beginning date or the date range that the deduction is in effect
earnings and in the Effective Date Þelds.
deductions, Payroll
veriÞes the effective 9. Type the deduction accrual account in the Accrual Account Þeld.
date to ensure that 10. If you use the Project Accounting application and this is a company paid
the deduction must be
taken. deduction, deÞne activity options. Consider the following Þelds.

Activity The activity to which Payroll associates any

deduction expenses.
Account Category The activity category to which Payroll associates
any deduction expenses.

11. DeÞne deduction limits. Consider the following Þelds.

Monthly Limit The maximum amount Payroll can deduct for this
deduction in one month
Payment Limit The maximum amount Payroll can deduct for this
deduction in one payment

12. If you use the Accounts Payable application, deÞne AP options. Consider
the following Þelds.

Update AP Indicates whether or not you want to create

invoices for payroll-related payables when you
close Payroll.
Create Invoice by Indicates whether or not you want to create AP
Employee invoices by employee. For more information see
the Accounts Payable User Guide.
Vendor The vendor you want to use to create accounts
payable invoices for this deduction.

NOTE Choose the Addl Vendors button to deÞne

vendors and process level combinations for this
deduction.

Related Reports and Inquiries

To Use
List deductions Deduction Listing (PR205)
List frequency tables Frequency Table Listing (BN204)

DeÞning Add-to-Net Deductions

Add-to-Net deductions represent amounts that are added to employee net
pay. For example, you can use add-to-net deductions to reimburse employees
for expenses or to apply earned income credits to employee pay.
You often use add-to-net deductions when you add a one-time deduction. For
more information, see "What are One-Time Deductions?" on page 286.

Payroll User Guide Chapter 5 Setting Up Deduction 131

Structure
 Need More Details? Check out the following concepts:
• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101

STEPS To deÞne add-to-net deductions

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.
Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select how you want Payroll to calculate the deduction in the Calculation
Type Þeld.

If the deduction is a Select

Flat amount Flat Amount.
Percent of employee pay Percent.
Earned Income Credit Tax.

4. DeÞne pay information. Consider the following Þelds.

Pay Class Determines if you want the system to calculate

the deduction on pay associated with a speciÞc
pay class.

132 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Currency Determines the currency you want Payroll to use
to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

NOTE The calculation 5. Type the ßat amount or percent you want to add to net in the Amount
type you selected -or- Percent Þeld.
determines if the Amount
-or- Percent Þeld is an 6. Select Add-to-Net in the Adjust Pay Þeld.
amount or a percent. 7. If you want to include this deduction in a deduction class, select the
deduction class in the Deduction Class Þeld.
8. DeÞne deduction processing options. Consider the following Þelds.

Priority The number that represents the order in which

Payroll takes the deduction within the category of
other deductions.
Cycles Select the deduction cycles in which Payroll takes
the deduction.

9. If you want Payroll to automatically assign this deduction to certain

employees, select the deduction required code in the Required Code Þeld.
NOTE When calculating 10. Type the beginning date or the date range that the deduction is in effect
earnings and in the Effective Date Þelds.
deductions, Payroll
veriÞes the effective 11. Type the deduction accrual account in the Accrual Account Þeld.
date to ensure that 12. If this is a tax deduction, deÞne tax information. Consider the following
the deduction must be
taken. Þelds.

Country Code The country code you want to use to calculate

the deduction
Tax Status Select 2 for Earned Income Credit
Self Adjust Tax Determines whether or not Payroll veriÞes the
year-to-date taxable wages multiplied by the rate
to determine the year-to-date tax and makes
necessary adjustments. This Þeld defaults to Yes.

CAUTION If the rate changes in

mid-year and this Þeld is set to Yes or if
you change this Þeld from No to Yes in
mid year, Payroll makes adjustments to
the whole year-to-date, which results in
large adjustment amounts.

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Structure
 Related Reports and Inquiries
To Use
List deductions Deduction Listing (PR205)

DeÞning Miscellaneous Deductions

Miscellaneous deductions are unique deductions your organization needs to
deduct from employee pay, or apply to the company.

STOP If this deduction uses a required, company match, or after-tax limit

deduction, you must deÞne those elements before deÞning this deduction.
For more information, see "DeÞning Deduction Required Codes" on page
102. For more information, see "DeÞning Company Match Deduction Codes"
on page 110. For more information, see "DeÞning Linked After-Tax Limit
Deductions" on page 114.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91
• "How does Payroll Calculate Deductions?" on page 93
• "In What Order does Payroll Apply Deductions to Employee
Pay?" on page 97
• "What is Arrears?" on page 97
• "What are Deduction Cycles?" on page 98
• "What is a Required Deduction?" on page 100
• "What is the Accounts Payable Interface?" on page 101
• "Procedures in this Chapter" on page 102
• "How do I Process Workers’ Compensation?" on page 143

STEPS To deÞne miscellaneous deductions

1. Access Deduction (PR05.1).
2. DeÞne deduction code and description. Consider the following Þelds.

Deduction Code The code that represents the deduction.

(Description) The description of the deduction.

134 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Payment The description of this deduction that prints on
Description payments

NOTE If you assign a deduction class to this

deduction code, the payment description on
the deduction class overrides this payment
description.

3. Select how you want Payroll to calculate the deduction in the Calculation
Type Þeld.

If the deduction is a Select

Percent of employee gross pay Percent.
Flat amount to be deducted Flat Amount.
Flat amount multiplied by the Amount per Hour.
number of hours worked
Flat amount multiplied by the Amount per Day.
number of days worked
Percent of employee base pay, as Percent of Base per Hour.
deÞned on Employee (HR11.1),
multiplied by the number of hours
worked
Percent of employee disposable Percent of Disposable/Net Wages.
wages (U.S.) or net wages
(Canada)
Flat amount plus a percent of Flat Amount plus a Percent of
employee gross pay Gross Pay.
Percent of employee disposable Percent of Disposable/Net Wages
wages (U.S.) or net wages with Minimum Flat Amount.
(Canada) plus a minimum ßat
amount.
Percent of available wages Percent of Available Wages.
(Canada)
User deÞned calculation User Exit.

4. DeÞne pay information. Consider the following Þelds.

Pay Class Determines if you want the system to calculate

the deduction on pay associated with a speciÞc
pay class.

Payroll User Guide Chapter 5 Setting Up Deduction 135

Structure
 Currency Determines the currency you want Payroll to use
to calculate the deduction.
If the company uses one currency, the company
currency defaults to this Þeld.
If the company uses multiple currencies, the
process level currency defaults to this Þeld.

NOTE The employee currency and deduction

currency must match for you to be able to assign
the deduction to the employee.

NOTE The calculation 5. Type the ßat amount or percent you want to deduct in the Amount -or-
type you selected Percent Þeld.
determines if the Amount
-or- Percent Þeld is an 6. If you selected Flat Amount plus a Percent of Gross Pay or Percent of
amount or a percent. Disposable/Net Wages with Minimum Flat Amount in the Calculation
type Þeld, type the additional percent or minimum amount in the Addl
or Minimum Amt, Pct Þeld.
7. Select who pays for this deduction.

If the deduction is Select

Added to the employee net pay Add-to-Net.
Deducted from employee pay Employee Paid.
Accrued by the company Company Paid.

8. If you want to include this deduction in a deduction class, select the

deduction class in the Deduction Class Þeld.
9. DeÞne deduction processing options. Consider the following Þelds.

Priority The number that represents the order in which

Payroll takes the deduction within the category of
other deductions.
Arrears Select what you want Payroll to do if there is not
enough employee pay to cover the deduction.
Cycles Select the deduction cycles in which Payroll takes
the deduction.

NOTE You can override the value in these Cycles

Þelds for individual employees when you assign
the deduction to employees.

136 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Excl From Determines whether or not you want to subtract
Garnishment the deduction from employee pay before
(Exclude from calculating disposable income for garnishment
Garnishment) purposes. Disposable income equals gross pay
minus taxes and other deductions.

NOTE Do not use this Þeld for tax, company-paid,

or add-to-net deductions.

10. If your organization matches a portion of this deduction, select the

company match deduction in the Matched Deduction Þeld. For more
information, see "DeÞning Company Match Deduction Codes" on page
110.
11. If you want Payroll to automatically assign this deduction to certain
employees, select the deduction required code in the Required Code
Þeld. For more information, see "DeÞning Deduction Required Codes"
on page 102.
NOTE When calculating 12. Type the beginning date or the date range that the deduction is in effect
earnings and in the Effective Date Þelds.
deductions, Payroll
veriÞes the effective 13. If you want to override the accounts deÞned at the HR company or
date to ensure that process level, select accounts for the deduction in the Accrual Account
the deduction must be and Expense Account Þelds.
taken.
14. If you use the Project Accounting application and this is a company paid
deduction, deÞne activity options. Consider the following Þelds.

Activity The activity to which Payroll associates any

deduction expenses.
Account Category The activity category to which Payroll associates
any deduction expenses.

15. DeÞne deduction limits. Consider the following Þelds.

Monthly Limit The maximum amount Payroll can deduct for this
deduction in one month.
Payment Limit The maximum amount Payroll can deduct for this
deduction in one payment.

16. If this is a tax deduction, deÞne tax information. Consider the following
Þelds.

Country Code The country code you want to use to calculate

the deduction.
Tax Status Determines the tax status of the deduction.

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Structure
 Self Adjust Tax Determines whether or not Payroll veriÞes the
year-to-date taxable wages multiplied by the rate
to determine the year-to-date tax and makes
necessary adjustments. This Þeld defaults to Yes.

CAUTION If the rate changes in

mid-year and this Þeld is set to Yes or if
you change this Þeld from No to Yes in
mid year, Payroll makes adjustments to
the whole year-to-date, which results in
large adjustment amounts.

17. If you use the Accounts Payable application, deÞne AP options. Consider
the following Þelds.

Update AP Indicates whether or not you want to create

invoices for payroll-related payables when you
close Payroll.
Create Invoice by Indicates whether or not you want to create AP
Employee invoices by employee.
For more information see your Accounts Payable
User Guide.
Vendor The vendor you want to use to create accounts
payable invoices for this deduction.

NOTE Choose the Addl Vendors button to deÞne

vendors and process level combinations for this
deduction.

Remit To Remit To identiÞes a vendor location where

payments are to be remitted. This Þeld populates
the Remit-To-Code on AP invoice records
(AP20.1) via the AP Interface.
If you use this Þeld, the payment address comes
from Vendor Location (AP10.2). If Þeld this is left
blank, the payment address defaults from Vendor
(AP10.1).
Remit To can be deÞned for:
• An individual garnishment on US Employee
Garnishment (PR26.1) or Canada Employee
Garnishment (PR47.1).
• An individual process level override within
deduction on Additional Vendors (PR05.3).
• An entire deduction on Deduction (PR05.1).
If you use this Þeld, you must also select a
vendor in the Vendor Þeld.

138 Chapter 5 Setting Up Deduction Structure Payroll User Guide

 Related Reports and Inquiries
To Use
List deductions Deduction Listing (PR205)

Payroll User Guide Chapter 5 Setting Up Deduction 139

Structure
140 Chapter 5 Setting Up Deduction Structure Payroll User Guide
Chapter 6

Setting Up Workers’ Compensation

This chapter covers how to set up workers’ compensation (wc) within the
Lawson Payroll application.

Payroll User Guide Chapter 6 Setting Up Workers’ 141

Compensation
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"U.S. Procedures in
this Chapter" on page • "What is a Workers’ Compensation Policy?" on page 142
145"Canada Procedures • "What are Workers’ Compensation Classes?" on page 142
in this Chapter" on page
150 • "How do I Process Workers’ Compensation?" on page 143

What is a Workers’ Compensation Policy?

When you set up a workers’ compensation policy, you enter general
information about the policy into Payroll. This includes a policy code and
description, the policy number, the insurance company that provides WC
coverage for the policy, the contact at the insurance company, and the
effective dates of the policy.
You also deÞne a policy code that you select when you set up United States
workers’ compensation classes.
Canada organizations do not set up workers’ compensation policies; they
deÞne the workers’ compensation account number on each workers’
compensation class.

What are Workers’ Compensation Classes?

Payroll uses workers’ compensation classes to represent a rate and limit used
to calculate workers’ compensation premiums.
You associate a table of WC classes with speciÞc information you want Payroll
to use when it calculates WC premiums, such as:
• Workers’ compensation policy (U.S. only)
• Workers’ compensation process level
• Workers’ compensation state or province
NOTE The amount of • Amount of wages on which the workers’ compensation premium is based
wages and the wage
limits can be deÞned for • Annual or monthly limits of accessible wages for workers’ compensation
all classes on a table or You must assign workers’ compensation classes to job codes or Payroll
for each individual class.
cannot determine the wages on which to calculate premiums.

142 Chapter 6 Setting Up Workers’ Compensation Payroll User Guide

How do I Process Workers’ Compensation?
To process workers’ compensation, you need to:
• Set up workers’ compensation
• Process Payroll
• Create worker’s compensation reports
Figure 12. Process ßow: Workers’ Compensation

- Conditional -
Define WC Policy

- Conditional -
Define WC
Deductions

Define WC
Classes

Assign WC
Classes to Job
Codes

Process Payroll

Create WC
Reports

What must I set up?

To process workers’ compensation, you must:
• Set up workers’ compensation policy (U.S. only). For more information,
see "What is a Workers’ Compensation Policy?" on page 142.
• Set up workers’ compensation classes. For more information, see "What
are Workers’ Compensation Classes?" on page 142.
NOTE Payroll • Assign workers’ compensation classes to job codes in the HR application.
determines assessable For more information, see your Human Resources User Guide.
wages from employees
with WC classes
assigned to their job Which setup is optional?
codes.
You can also set up workers’ compensation deductions, but they are not
required. You only need to set up WC deductions if you want to post workers’
compensation liability to General Ledger. Posting to General Ledger insures
that your organization has enough funds set aside to pay for WC premiums
when they are due.
To post to General Ledger you must:

Payroll User Guide Chapter 6 Setting Up Workers’ 143

Compensation
NOTE Payroll uses WC • DeÞne WC deductions. For more information, see "DeÞning Deduction
deductions to accrue Codes" on page 103.
workers’ compensation
premiums. • Assign WC deductions to employees. For more information, see
"Employee: Deductions" on page 235.

Why Must I Run a Payroll Cycle?

You must run a payroll cycle to calculate the wages and, optionally, the
deductions used for workers’ compensation.
TIP If you do not run When you run Earnings and Deduction Calculation (PR140) during your
a payroll cycle and try payroll cycle each pay period, Payroll does the following:
to create a WC report,
Payroll won’t use up • Determines the earnings used to calculate WC premiums by determining
to date wages used to all the assessable wages for employees with job codes that have WC
create the report. classes assigned to them
• Calculates the premium deduction for the employee’s wages, if you
choose to post to General Ledger
When you close a payroll cycle, Payroll posts the premiums to General Ledger.

What are WC Reports used for?

You create workers’ compensation reports to give to your insurance company
(if your company is in the United States) or the Workers’ Compensation
Board (if your company is in Canada). The earnings on the report are used
to calculate the premiums you owe.
You can also review reports to make sure they balance with the postings to
the General Ledger.

Example: WC Premiums based on job and wages

earned.
Grove Hospital pays workers compensation premiums based on the job the
employee performs and a premium amount per wages earned. For all nurses,
the premium amount is $0.75 for every $1,000.00 of WC pay class wages
earned.

144 Chapter 6 Setting Up Workers’ Compensation Payroll User Guide

U.S. Procedures in this Chapter
The following procedures explain how to set up workers’ compensation for
United States employees.
• "DeÞning a U.S. Workers’ Compensation Policy" on page 145
• "DeÞning U.S. Workers’ Compensation Classes" on page 146
• "Creating U.S. Workers’ Compensation Reports" on page 148
Figure 13. Procedure relationship: Set Up U.S. Workers Compensation

1
Define Workers'
Compensation
Policy
PR17.1

2
Define Workers'
Compensation
Classes
PR18.1

3
Report Workers'
Compensation
PR278

DeÞning a U.S. Workers’ Compensation Policy

When you set up a workers’ compensation policy, you enter into Payroll the
general information about the policy.

Need More Details? Check out the following concepts:

• "What is a Workers’ Compensation Policy?" on page 142

STEPS To deÞne a workers’ compensation policy

1. Access Workers' Compensation Policy (PR17.1).
2. Type the name and description of the policy in the Policy Code Þelds.
3. Type the effective dates of the policy in the Policy Dates Þelds.
4. Type the policy number in the Policy Number Þeld.
5. Type the name of the insurance company that holds the policy in the
Insurance Company Þeld.
6. Type the name of the contact person at the insurance company in the
Contact Þeld.

Payroll User Guide Chapter 6 Setting Up Workers’ 145

Compensation
DeÞning U.S. Workers’ Compensation Classes
Workers’ compensation classes are used within Lawson to represent a rate
and limit used to calculate workers’ compensation premiums.

STOP You must deÞne workers’ compensation policies before you deÞne
workers’ compensation classes.

Need More Details? Check out the following concepts:

• "What are Workers’ Compensation Classes?" on page 142
• "How do I Process Workers’ Compensation?" on page 143

STEPS To deÞne workers’ compensation classes

1. Access US Workers' Compensation ClassiÞcation (PR18.1).
2. Select the Workers’ Compensation state that the classes on this table
apply to in the Workers Comp State Þeld.
3. Type the date the rates deÞned for workers’ compensation classes are in
effect in the Premium Effective Date Þeld.
4. Select the policy you want to associate with the WC classes on this form
in the Policy Þeld.
5. DeÞne the rates on for these WC classes:

If the premiums are based on Type

A rate per amount of wages the amount of wages in the
Premium per Wages Þeld.
A rate per hours the number of hours in the
Premium per Hours Þeld.

146 Chapter 6 Setting Up Workers’ Compensation Payroll User Guide

TIP Limits typed in the 6. DeÞne state limits:
Annual Limit or Monthly
Limit Þelds apply to all If the WC state uses Type
WC classes on the form.
Annual limits the annual limit of wages used to
calculate premiums in the State
Annual Limit Þeld.
Monthly limits the monthly limit of wages used
to calculate premiums in the State
Monthly Limit Þeld.

7. Select whether or not overtime pay amounts is included in the workers’

compensation calculation in the Overtime Premium Þeld.
8. DeÞne workers’ compensation tables. Consider the following Þelds.

Class The name of the workers’ compensation class

Description The description of the workers’ compensation
class.
Rate The experience rate for the class.

TIP If you made an entry in the Premium Per

Wages Þeld or the Premium Per Hours Þeld, type
an amount in this Þeld. If you leave the Premium
Per Wages and Premium Per Hours Þelds blank,
type the experience rate as a percent.

Limit If you want to assign a speciÞc limit to each class,

type the limit amount in the Limit Þeld.

TIP You cannot type an amount in this Þeld if

you entered an amount in either the State Annual
Limit or State Monthly Limit Þelds.

Type If you type an amount in the Limit Þeld, select

whether the amount is a annual or monthly limit.

Follow-up Tasks
Assign workers’ compensation classes to job codes on Job Code (HR06.1) in
the Human Resources application.

Payroll User Guide Chapter 6 Setting Up Workers’ 147

Compensation
 Related Reports and Inquiries
To Use
List U.S. Workers’ Compensation U.S. WC ClassiÞcation Listing
Classes (PR218)

Creating U.S. Workers’ Compensation Reports

You create workers’ compensation reports to submit to your insurance
company so the company can determine the amount of premiums you owe;
or, if you are self-insured, you create reports to compare what Payroll would
have calculated for premiums versus what you paid out in claims.

STOP Before you create U.S. workers’ compensation reports, you must
deÞne WC policies and classes, assign WC classes to job codes, and run at
least one payroll cycle.

Need More Details? Check out the following concepts:

• "How do I Process Workers’ Compensation?" on page 143
• "What is a Workers’ Compensation Policy?" on page 142
• "What are Workers’ Compensation Classes?" on page 142

STEPS To create workers’ compensation reports

1. Access US Workers' Compensation Report (PR278).
2. DeÞne report selection. Consider the following Þelds.

Policy The policy code, assigned to the workers’

compensation plan, for which you want to run
the report.
Date The date range for payment records you
want to include in the calculation of workers’
compensation premiums.
Pay Class To calculate workers’ compensation premiums
on the basis of a speciÞc pay class, select a pay
class.

TIP If you are self-insured, select the pay class

that represents the appropriate mix of hours and
wages. If you do not select a pay class, Payroll
calculates premiums on all wages—even those
for time not worked.

Workers Comp The state in which the workers’ compensation

State policy is effective.

148 Chapter 6 Setting Up Workers’ Compensation Payroll User Guide

 Process Level Select a process level to calculate workers’
compensation premiums for a speciÞc process
level.

3. DeÞne report run options. Consider the following Þelds.

Current WC Class Determines if workers’ compensation premiums

are calculated using WC classes on employees’
current job codes or WC classes on employees’
job codes at the time payment was issued.
Report Option Determines the sort order of the report.
Summary Option Determines the level of detail that prints on the
report.
Employee Determines if the report prints in employee
Sequence number order, or alphabetically by employee
name.
Page Break by Determines if the report has a page break before
State each new state.

Payroll User Guide Chapter 6 Setting Up Workers’ 149

Compensation
Canada Procedures in this Chapter
The following procedures explain how to set up workers’ compensation for
Canada employees.
• "DeÞning Canada Workers’ Compensation Classes" on page 150
• "Creating Canada Workers’ Compensation Reports" on page 151

DeÞning Canada Workers’ Compensation Classes

Workers’ compensation classes are used within Lawson to represent a rate
and limit used to calculate workers’ compensation premiums.

Need More Details? Check out the following concepts:

• "What are Workers’ Compensation Classes?" on page 142
• "How do I Process Workers’ Compensation?" on page 143

STEPS To deÞne workers’ compensation classes

1. Access Canada Workers' Compensation ClassiÞcation (PR18.2).
2. Select the Workers’ Compensation province that the classes on this table
apply to in the Workers Comp Province Þeld.
3. Type the date the rates deÞned for workers’ compensation classes are
in effect in the Effective Date Þeld.
NOTE The kind of 4. Type the account number you want to use for the workers’ compensation
workers’ compensation classiÞcations you deÞne on the table in the Workers Comp Account Nbr
plan determines the Þeld.
number you type in
the Workers Comp 5. DeÞne the wages on which the premiums for these WC classes are based
Account Nbr Þeld. For in the Premium per Wages Þeld.
example, you could
type the provincial 6. DeÞne the annual limit of wages used to calculate premiums in the
assigned account Province Annual Limit Þeld.
number, registration
number, legal entity, 7. Type the industry code for the province in the Industry Code Þelds.
and so on, depending 8. DeÞne workers’ compensation tables. Consider the following Þelds.
on the kind of workers’
compensation classes
you want to deÞne. Class The name of the workers’ compensation class
Description The description of the workers’ compensation
class.
Rate The provincial rate associated with this workers’
comp class. The value in this Þeld is a percent.
Limit If you want to assign a speciÞc limit to each class,
type the limit amount in the Limit Þeld.

TIP You cannot type an amount in this Þeld if

you entered an amount in the Province Annual
Limit. You must use one limit or the other.

150 Chapter 6 Setting Up Workers’ Compensation Payroll User Guide

 Follow-up Tasks
Assign workers’ compensation classes to job codes on Job Code (HR06.1) in
the Human Resources application.

Options for DeÞning Canada Workers’

Compensation Classes
You can use Canada WC Class Override (HR06.4) to assign workers’
compensation (WC) classes to speciÞc job code and province combinations.
This allows you to assign more than one WC class to a job code.

Related Reports and Inquiries

To Use
List Canada Workers’ Compensation Canada WC ClassiÞcation Listing
Classes (PR288)

Creating Canada Workers’ Compensation Reports

You create workers’ compensation reports to submit to the Workers’
Compensation Board so they can determine the amount of premiums you owe.
PR418 calculates assessable/excess wages from the beginning of the year
through the To Date even if the report is being run just for a speciÞc month.
For example, when running for April 1, 2004 through April 30, 2004, the
calculation of the assessable and excess wages includes the wages and
taxable beneÞts from January 1, 2004 through April 30, 2004.
The Þrst line provides the information based on the date range of the
parameters. The second line provides information from the beginning of the
year to the "to" date. If the amounts are the same, only one line will be shown.
If an employee’s payment is for the ‘hours only’ type pay code and the
company paid taxable beneÞts are processed for the payment, PR418
processes the taxable beneÞts if Gross Earnings is selected or if the WC
pay class includes the ‘hours only’.
If an employee receives wages from different process levels on one payment,
the earnings and beneÞts are reported by process level for PR418 Report
Options 3 and 4.

STOP Before you create Canada workers’ compensation reports, you

must deÞne WC classes, assign WC classes to job codes, and run at least
one payroll cycle.

Payroll User Guide Chapter 6 Setting Up Workers’ 151

Compensation
 Need More Details? Check out the following concepts:
• "How do I Process Workers’ Compensation?" on page 143
• "What is a Workers’ Compensation Policy?" on page 142
• "What are Workers’ Compensation Classes?" on page 142

STEPS To create workers’ compensation reports

1. Access Canada Workers' Compensation Report (PR418).
2. DeÞne report selection. Consider the following Þelds.

Workers Comp The workers’ compensation province for which

Province you want to create the report.
The report select payments, history time records,
and taxable beneÞt deductions based on the
employee’s country and the program parameters
you select (i.e., process level, province, and
check date). You can process an employee
whose tax province is different from the WC
Province.
Process Level The process level for which you want to run the
report.
The report select payments, history time records,
and taxable beneÞt deductions based on the
employee’s country and the program parameters
you select (i.e., process level, province, and
check date). You can process an employee
whose tax province is different from the WC
Province.
Date The date range you want to create the report for.
Payments from this date range are selected.

152 Chapter 6 Setting Up Workers’ Compensation Payroll User Guide

 Pay Class The pay class you want to use to identify
assessable wages.

NOTE If you leave this Þeld blank, Payroll uses

gross earnings as the assessable wages in
workers’ compensation calculations.

3. DeÞne report run options. Consider the following Þelds.

Current WC Class Determines if workers’ compensation premiums

are calculated using the WC class on the
employees’ current job codes or the WC class on
the employees’ job codes at the time payments
were issued.
Report Option Determines the sort order of the report.
Summary Option Determines the level of detail that prints on the
report.
Employee Determines if the report prints in employee
Sequence number order or alphabetically by employee
name.
Page Break by Determines if the report has a page break before
Province each new province.

Payroll User Guide Chapter 6 Setting Up Workers’ 153

Compensation
154 Chapter 6 Setting Up Workers’ Compensation Payroll User Guide
Chapter 7

Setting Up Garnishments

Garnishments are court-ordered or creditor deductions made to an employee’s

pay. Within Payroll, you deÞne the rules used to calculate garnishment
amounts for employees.

STOP Before you setup garnishments, you must deÞne your pay structure.
For more information, see "Setting Up Pay Structure" on page 29.

Payroll User Guide Chapter 7 Setting Up Garnishments 155

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"U.S. Procedures in
this Chapter" on page • "What are Garnishments?" on page 156
170"Canada Procedures • "What are Garnishment Types?" on page 157
in this Chapter" on page
177 • "What are Garnishment Categories?" on page 158
• "What are Garnishment Rules?" on page 158
• "What are Garnishment Formulas?" on page 159
• "What Kinds of Employee Wages does Payroll use for Garnishments?"
on page 160
• "How does Payroll Process Multiple Garnishments when there are
Limited Employee Wages?" on page 161
• "What are Garnishment Priorities?" on page 163
• "What are the U.S. Federal Limitations to Garnishments?" on page
164
• "How does Payroll decide which Garnishment Rule to Use for each
Garnishment?" on page 164
• "How does Payroll Calculate the Amounts of Garnishments?" on
page 166

What are Garnishments?

Garnishments are court-ordered or creditor deductions made to an employee’s
pay. Within Payroll, you establish the garnishment by deÞning the governing
tax authority, garnishment type, deduction code, the amount, and additional
information pertaining to the garnishment.
After you deÞne the rules used to calculate the garnishment, you assign
garnishments to employees who have orders to have their wages garnished.

Example
Caroline Williams, an employee at Two Rivers, must have her wages
garnished due to a child support order from the state of Virginia. Two Rivers
Þrst deÞnes garnishment rules for a child support garnishment in the state of
Virginia, then deÞnes an employee garnishment for deducting the garnishment
from Caroline’s wages.

156 Chapter 7 Setting Up Garnishments Payroll User Guide

What are Garnishment Types?
A garnishment type is a speciÞc kind of garnishment, such as child support.
To streamline the set up, maintenance, and reporting of garnishments, you
can use types to deÞne the rules Payroll uses to calculate garnishments.
You assign a garnishment type to one category, which is a group of
garnishments. Several garnishment types can be within a category.
You can deÞne your own garnishment types; however, Lawson delivers
pre-deÞned garnishment types for the United States and Canada. The tables
below list the garnishment types for each country.
Table 1. United States Pre-DeÞned Garnishment Types

Type Description Category

1 Bankruptcy Bankruptcy
2 Child Support Support
3 Spousal Support Support
4 Federal Tax Levy Tax Levy
5 State Tax Levy Tax Levy
6 Garnishment Garnishment
7 Wage Assignment Assignment
8 Student Loan Student Loan
Table 2. Canada Pre-DeÞned Garnishment Types

Type Description Category

1 Bankruptcy Bankruptcy
2 Req-to-Pay Tax Revenue Canada
3 Garn-Tax Arrears Revenue Canada
4 Garn 3rd Party Revenue Canada
Creditors
5 Child Support—Tax Support
Deductible
6 Child Support—Non Support
Tax Ded
7 Spousal Support—Tax Support
Deductible
8 Garnishment Garnishment
9 Assignment Wage Assignment

Payroll User Guide Chapter 7 Setting Up Garnishments 157

What are Garnishment Categories?
A garnishment category groups garnishment types and represents a general
kind of garnishment, such as support or bankruptcy. To streamline the set up,
maintenance, and reporting of garnishments, you can use categories to deÞne
the rules Payroll uses to calculate garnishments.
You cannot deÞne garnishment categories. Lawson delivers pre-deÞned
categories for the United States and Canada. The following table lists the
categories delivered by Lawson:
Table 3. Garnishment Categories

United States Categories Canada Categories

Assignment Revenue Canada
Bankruptcy Revenue Quebec
Student Loans Support
Support Garnishment
Tax Levy Assignment
Bankruptcy

What are Garnishment Rules?

Garnishment rules determine how Payroll calculates:
• The portion of employee pay that is exempt from garnishments
• The garnishment amount
• Fees
• Multiple garnishments
Garnishment rules vary by locale. For this reason, you establish garnishment
rules for each governing tax authority from which you receive a garnishment
order. You further deÞne garnishment rules with a category, type, formula, and
additional options, such as family and dependent information.
Garnishment Rules are:
• Governed by federal, state or province, county, and city laws that
determine formulas for calculating the amount of exempt wages
• Grouped by category and type
• DeÞned using a Garnishment Formula
For the U.S., Lawson delivers pre-deÞned Federal garnishment rules. Also,
Lawson delivers pre-deÞned garnishment formulas. Technically, you can
change federal garnishment rules; however, Lawson recommends that you
do not change the rules unless there is a change in federal law regarding
garnishments. You must build state or local garnishment rules using the
formulas delivered by Lawson.
Due to the complexity of Canada garnishments, Lawson does not deliver any
predeÞned garnishment rules or formulas.

158 Chapter 7 Setting Up Garnishments Payroll User Guide

What are Garnishment Formulas?
Garnishment formulas are the part of garnishment rules that tell Payroll how
to calculate the wages that are exempt from garnishments. Garnishment
formulas determine the:
• Logic (equations) used to calculate exempt wages
• Variables (rates, exempt factors, amounts, percentages, and so on) used
to calculate exempt wages
The logic used to calculate exempt wages is predeÞned and cannot be
changed by the user without creating modiÞcations to the application’s code;
however, you can change the variables.
For U.S. garnishment rules, you do not have to deÞne variables for every
garnishment rule. Whether you deÞne variables depends on the requirements
of the formula. For more information, see "U.S. Garnishment Formulas" on
page 683.
For Canada garnishment rules, you must deÞne variables for every
garnishment rule. You deÞne the amounts and percentages used to calculate
exempt wages. Lawson gives you control over these variables because
the percentages and amounts used to calculate exempt wages vary from
province to province.

Example U.S.
Two Rivers Company has garnishments for the State of Minnesota that use
formula 18. For formula 18, Payroll calculates exempt wages as the lesser of:
• Rate multiplied by the Federal minimum wage
– or –
• A percent of disposable income
The variables are set up as follows:
Variable Value
Rate 40
Federal Minimum Wage 5.25
Factor 1 (percent of disposable 75
income)

Using the above variables, Payroll calculates the exempt disposable income
the greater of 210.00 (40 multiplied by 5.25) or 75% of an employee’s
disposable income.

Example Canada
Two Rivers Company has garnishments for the province of Manitoba that use
formula 63. For formula 63, the amount of wages exempt from garnishment
depends on whether the employee has any dependents.
For employees with no dependents, at least 70% of their income must be
exempt from wages, and that 70% must equal at least $250; however, no
more than 90% of their wages can be exempt from garnishment.

Payroll User Guide Chapter 7 Setting Up Garnishments 159

 For employees with one or more dependents, at least 70% of their income
must be exempt from wages, and that 70% must equal at least $350; however,
no more than 90% of their wages can be exempt from garnishment.
The variables are set up as follows:
Number of Basic Exempt Minimum Maximum
Dependents Amount Exempt Amount Exempt Amount
0 70% $250 90%
1 or more 70% $350 90%

What Kinds of Employee Wages does Payroll use for

Garnishments?
Payroll uses the following types of wages to calculate garnishments:

U.S. Gross Wages

Payroll uses gross wages to calculate disposable income. Gross wages
include all kinds of wages paid to an employee, such as regular pay, bonus
pay, fringe beneÞts, third-party sick pay, and moving expenses.

U.S. Disposable Income

Payroll takes garnishments from disposable income. An employee’s
disposable income is equal to the employee’s gross wages minus deductions
allowed by state or federal law.

Canada Gross Wages

Gross wages for Canada garnishments are deÞned as all wages paid to the
employee. Some provinces may require that add-to-net deductions, such as
expense reimbursements, be used to calculate gross and net wages.

Canada Net Wages

Net wages for Canada garnishments are deÞned as gross wages less
employee-paid statutory deductions for CPP, EI and Income Tax.
Some provinces may require that add to net deductions, such as expense
reimbursements, be used to calculate gross and net wages.

Canada Available Wages

Available wages are those wages that are available for the garnishment. In
some cases, Payroll calculates available wages as net wages less exempt
wages. In other cases, the province dictates what is included in available
wages.

160 Chapter 7 Setting Up Garnishments Payroll User Guide

How does Payroll Process Multiple Garnishments when there
are Limited Employee Wages?
When multiple garnishments exist for an employee, Payroll determines the
order to take the garnishments in two ways. First, Payroll determines whether
the garnishments are in the same category. If the garnishments are in the
same category, Payroll uses the multiple garnishment rule to determine
the order. If garnishments are not in the same category, Payroll uses the
employee deduction priority to determine the order in which garnishments
are taken.
You assign the multiple garnishment rule on the garnishment rules; you
deÞne the garnishment priority on the garnishment deduction or employee
garnishment.
• "Multiple Garnishments in One Category" on page 161
• "Multiple Garnishments in Multiple Categories" on page 162

Multiple Garnishments in One Category

Payroll uses the multiple garnishment rule you assign to the garnishment
rule to determine how to take garnishments, court ordered arrears, and fees
when there are:
• Multiple garnishments within the same garnishment category
• InsufÞcient funds available to take all garnishments
The following sections explain how Payroll uses each of the Multiple
Garnishment Rules to calculate multiple garnishments in the same category.

Prorate Based on Garnishment Amount

If the garnishment uses this Multiple Garnishment Rule, Payroll Þrst calculates
current garnishment amounts, then court order arrears, and Þnally fees using
the following logic:
1. Divides each current garnishment amount by total amount of current
garnishments
2. Multiplies the amount available for garnishment by the percentage from
Step 1 to determine the new garnishment deduction amount
The remainder is put into arrears, depending on the arrears ßag for the
garnishment.

Equal Amount to Each Garnishment

If the garnishment uses this Multiple Garnishment Rule, Payroll Þrst calculates
current garnishment amounts, then court ordered arrears, and Þnally, fees
using the following logic:
(Amount available for garnishment) / (Number of garnishments) = (New
garnishment amount)
Each garnishment is granted an equal amount. The remainder is put into
arrears depending on the arrears ßag for the garnishment.

Payroll User Guide Chapter 7 Setting Up Garnishments 161

 Effective Date Order
NOTE This multiple If the garnishment uses this Multiple Garnishment Rule, Payroll deducts each
garnishment rule does garnishment based on the effective date order. The garnishments that are
not depend on there partial payments or are not paid are put into arrears, depending on the arrears
being insufÞcient funds
to withhold all the ßag for the garnishment.
garnishments. Payroll Þrst calculates current garnishment amounts, then court ordered
arrears, and Þnally fees.

Withhold One Garn at a Time

Each garnishment is paid based on effective date with only one garnishment
per Category being taken. Garnishments that are partial payments are put
into arrears, depending on the arrears ßag for the garnishment.

Example
Two Rivers has set up their child support garnishment to use Effective Date
Order when multiple garnishments exist for a given garnishment category.
John, an employee of Two Rivers, has two separate support orders. The child
support order was effective December 31, 2000. The spousal support order
was effective June 30, 2001. He does not have enough disposable income to
cover both garnishments. The child support garnishment would be deducted
Þrst, then the spousal support garnishment would be taken.

Multiple Garnishments in Multiple Categories

If there are multiple garnishments in multiple categories, Payroll uses the
priority assigned to the garnishment deduction or the employee garnishment
to determine the order in which it takes garnishments. For more information,
see "What are Garnishment Priorities?" on page 163.
In the United States, Payroll also uses federal garnishment limitations to
determine the processing order of garnishment. For more information, see
"What are the U.S. Federal Limitations to Garnishments?" on page 164.
In Canada, there are no federal limitations. Each type of order for each
province can have a unique set of rules that dictates the amount exempt from
seizure and the amount that can be taken to satisfy the garnishment order.
To determine allowable garnishment deductions, Payroll:
1. Calculates the garnishment order with the highest priority.
2. Calculates what percentage of the employee’s available wages was
withheld for the Þrst order by taking the amount withheld, divided by the
available wages.
3. Determines for the order with the next highest priority what percentage of
available wages can be garnished.
A deduction for this garnishment is limited to the difference between
the percentages of available wages protected by the order less the
percentage of available wages taken for the Þrst order.
4. Repeats step three for each subsequent order.

Example
The Þrst garnishment taken for an employee protects 80% of income, so
20% of income is available wages for the garnishment. The garnishment

162 Chapter 7 Setting Up Garnishments Payroll User Guide

 uses 15% of the available wages. So, only 5% of available wages remains
for any subsequent garnishments.

What are Garnishment Priorities?

Garnishment priorities determine the order in which Payroll takes
garnishments from employee pay. Payroll uses the priority to determine
the order and system logic used to ensure the proper amount of income is
protected for the employee.
You can deÞne the priority of the garnishment when you deÞne the deduction
used for the garnishment. You can override the priority on the employee
garnishment. Overriding for the employee can be useful if the deduction is
used on multiple garnishments for the same employee.
The following table lists the correct priorities to assign to U.S. garnishments:
Priority Kind of Garnishment
1 Bankruptcy Orders
2 Child Support
3 Federal Tax Levy
4 Federal Student Loan
5 State Tax Levy
6 State Student Loan
7 Local Tax Levy
8 Creditor Garnishments

In Canada, bankruptcy orders should be Þrst priority, then the Requirement to

Pay for unremitted source deductions. Family support orders usually take the
third level of priority, but most federal orders defer to provincial level for priority.

Payroll User Guide Chapter 7 Setting Up Garnishments 163

What are the U.S. Federal Limitations to Garnishments?
U.S. Federal limitations are federally imposed limits on how much of an
employee’s income can be garnished. Limitations are applied within the
Lawson garnishment categories as follows:
Kind of Garnishment Lawson Category Federal Limitations
Support Order S 50% of an employee’s
disposable income
is exempt from
garnishment if second
family = Yes
40% of an employee’s
disposable income
is exempt from
garnishment if second
family = No
An additional 5% of
protection is allowed in
each situation if there
are past due amounts
over 12 weeks old
Garnishment CCPA G The greater of 75% of
disposable income
or 30 times the
Federal Minimum
Wage is exempt from
garnishment per week.
Student Loan - Other L 85% of an employee’s
disposable income is
exempt for Federal
Student Loans.
Student Loan State L 90% of an employee’s
Guarantor disposable income
is exempt for State
Student Loans.
Tax Levies T Exempt amount is held
within the PRTAXLEVY
table in Lawson.

How does Payroll decide which Garnishment Rule to Use for

each Garnishment?
Before Payroll calculates a garnishment, it must Þnd the garnishment rule to
use in the calculation. Garnishment rules determine the logic and variables
Payroll uses during garnishment calculation.

164 Chapter 7 Setting Up Garnishments Payroll User Guide

 U.S.
For U.S. garnishments, Payroll Þrst looks for a U.S. garnishment rule with the
governing tax authority, category, and type of garnishment that matches the
employee garnishment it needs to calculate.
If Payroll does not Þnd a rule, it looks for a rule for the governing tax authority
and category.
If no rule is found, Payroll uses the federal rules for the following categories:
G Garnishment
S Support
L Loan
T and Type = 4 IRS Tax Levy

Figure 14. U.S.garnishment rule defaulting logic

Governing Tax
Authority,
Garnishment
Category and
Type

Governing Tax
Authority and
Category

Federal Rule

There are no federal rules that govern categories

• A - Assignment
• B - Bankruptcy
• T with Type not equal to 4 - State tax levies
You must deÞne rules for these types of garnishments.
If a garnishment category includes both Federal and State rules, Payroll looks
at the state rule Þrst, compares it to the Federal, and uses the rule that is
most advantageous to the employee.

Canada
For Canada garnishments, Payroll Þnds the garnishment rules with the
governing tax authority and type that matches the employee garnishment it
needs to calculate. Payroll uses this Canada garnishment rule to calculate
the garnishment.

Payroll User Guide Chapter 7 Setting Up Garnishments 165

How does Payroll Calculate the Amounts of Garnishments?
Payroll calculates garnishments when you calculate earnings and deductions
during the payroll cycle or when you create manual payments. Garnishments
are calculated based on the garnishment deduction code and garnishment
rules. If there are multiple garnishments for an employee, the garnishments
are processed in order of priority and sub priority.

U.S. Garnishment Calculations

To Calculate U.S. garnishments, Payroll:
1. Finds the garnishment rule. For more information, see "How does Payroll
decide which Garnishment Rule to Use for each Garnishment?" on page
164.
2. Calculates disposable income using the following logic:
Gross Pay - (Withholdings + Excluded Pay + Excluded Deductions)
3. Calculates the wages exempt from garnishment (protected income) based
on the formula assigned to the garnishment rule.
4. Calculates the amount available for garnishment by subtracting from
disposable income the wages exempt from garnishment.

IMPORTANT If the application has already calculated another

garnishment for the employee, it is also deducted in this step of the
calculation using the following logic: Disposable Income - (Exempt Wage
Amount + Calculated Garnishments)

5. Calculates the garnishment deduction amount (this includes one-time

deductions that are not refunds) using the calculation type deÞned on
the garnishment deduction.
6. Subtracts garnishment, court-ordered arrears, and fees deduction
amounts from the amount available for garnishment (in that order). The
application calculates the garnishment amount based on the arrears
option deÞned for the deduction code.
If the multiple garnishment rule applies, the garnishment is calculated
based on the multiple garnishment rule.
If partial amounts are withheld for garnishments, the application will follow
the arrears value deÞned in Deduction (PR05.1) for creating one-time
deductions for the remaining balance.

Example U.S.
Caroline Williams has a child support garnishment for $300.00. She does
not have a second family. Her gross pay is $3,000.00 with $1,000.00 in
withholdings.
A garnishment rule is deÞned for child support in the state of Virginia. It
speciÞes the Garnishment Wage Exemption Formula as 1 (disposable income
multiplied by percent) with 40% for those without a second family.
The child support deduction code is deÞned as a ßat amount. The arrears
option is Net to Zero - Yes.

166 Chapter 7 Setting Up Garnishments Payroll User Guide

 The following steps show how the garnishment is calculated:
1. The application Þnds a garnishment rule for the Governing Tax Authority
Virginia, Category S (Support), and Type CSUP (Child Support).
2. Disposable income = 2,000.00

Gross Wages Less Taxes + Equals Disposable

Excluded Pay Income
+ Excluded
Deductions
3,000 - 1,000 = 2,000

3. Exempt Wage Amount = 800.00

Disposable Income Multiplied by Equals Exempt

Percent dictated Wages
by Formula 1
2,000 *.40 = 800
NOTE If a previous 4. Amount Available = 1,200.00
garnishment was
calculated for Caroline, Disposable Income Less Exempt Wages Equals Amount
that garnishment
amount would also be Available
subtracted in step 4. 2,000 - 800 = 1,200

5. Garnishment Deduction Amount = ßat amount of 300, therefore

Garnishment Amount = 300.00
The amount remaining is positive (1,200.00 - 300.00 = 900.00), so the
garnishment is paid in full. Any court ordered arrears and additional fees are
deducted from the remaining 900.00.

Canada Garnishment Calculations

For Canada garnishments, Payroll:
1. Finds the garnishment rule. For more information, see "How does Payroll
decide which Garnishment Rule to Use for each Garnishment?" on page
164.
2. Calculates available wages using the following logic:

Payroll User Guide Chapter 7 Setting Up Garnishments 167

 Gross Pay - (Taxes + Excluded Pay + Excluded Deductions)
3. Calculates the wages exempt from garnishment (protected income) based
on the formula assigned to the garnishment rule.
4. Subtracts the wages exempt from garnishment from available wages to
calculate the amount that is available for the garnishment.

IMPORTANT If the application has already calculated another

garnishment for the employee, it is also deducted in this step of the
calculation using the following logic: Available Wages - (Exempt Wage
Amount + Calculated Garnishments)

5. Calculates the garnishment deduction amount (this includes one-time

deductions that are not refunds) using the calculation type deÞned on
the garnishment deduction.
6. Subtracts garnishment, court-ordered arrears, and fees deduction
amounts from the amount available for garnishment (in that order). The
application calculates the garnishment amount based on the arrears
option deÞned for the deduction code.
If the multiple garnishment rule applies, the garnishment is calculated
based on the multiple garnishment rule.
If partial amounts are withheld for garnishments, the application will follow
the arrears value deÞned for the garnishment deduction for creating
one-time deductions for the remaining balance.

Example Canada
Grace Whitby has a Manitoba garnishment for 300.00. She does not have
any dependents. Her gross pay is 3,000.00, with 1,000.00 in withholdings.
A garnishment rule is deÞned for Manitoba. The garnishment rule uses
formula 63. The exempt wages must be the greater of 70% of available
wages or 250 but cannot exceed 90% of available wages.
The garnishment deduction code is deÞned as a ßat amount. The arrears
option is Net to Zero - Yes.
The following steps show how the garnishment is calculated:
1. The application Þnds a garnishment rule for the Governing Tax Authority
Manitoba and Type 8-Garnishment.
2. Available Wages = 2,000.00

Gross Wages Less Taxes + Equals Available

Excluded Pay Wages
+ Excluded
Deductions
3,000 - 1,000 = 2,000

3. Exempt Wage Amount = 1,400.00

2000 * 70% = 1,400 (basic exempt amount)
2000 * 90% = 1,800 (maximum exempt amount)

168 Chapter 7 Setting Up Garnishments Payroll User Guide

 250 = minimum exempt amount
250 < 1,400 < 1,800
Therefore, 1,400 is the exempt wage amount
NOTE If a previous 4. Amount Available = 600
garnishment was
calculated for Caroline, Available Wages Less Exempt Wages Equals Amount
that garnishment
amount would also be Available
subtracted in step 4. 2,000 - 1,400 = 600

5. Garnishment Deduction Amount = ßat amount of 300; therefore,

Garnishment Amount = 300.00
The amount remaining is positive (600.00 - 300.00 = 300.00), so the
garnishment is paid in full. Any court-ordered arrears and additional fees are
deducted from the remaining 600.00.

Payroll User Guide Chapter 7 Setting Up Garnishments 169

U.S. Procedures in this Chapter
The following procedures explain how to set up garnishments for U.S.
employees:
• "Loading U.S. Federal Garnishment Rules" on page 171
• "DeÞning U.S. Garnishment Types" on page 171
• "DeÞning U.S. Garnishment Rules" on page 172
Figure 15. Procedure relationship: Setting up U.S. garnishments

Load
Garnishment
Rules

-Conditional -
Define
Garnishment
Types

Define
Garnishment
Rules

170 Chapter 7 Setting Up Garnishments Payroll User Guide

Loading U.S. Federal Garnishment Rules
You must load federal garnishment rules for each U.S. federal tax authority
you deÞne.

STOP You must deÞne U.S. federal tax authorities before you load U.S.
federal garnishment rules. For more information, see "DeÞning United States
Tax Authorities" on page 81.

Need More Details? Check out the following concepts:

• "What are Garnishments?" on page 156
• "What are Garnishment Rules?" on page 158

STEPS To load U.S. garnishment rules

1. Access Load Req US Fed Garn Rules (PR925).
2. Select the company for which you want to load garnishment rules.
3. Type the federal tax authority for which you want to load garnishment
rules.
NOTE When you run 4. Run PR925 to load the U.S. federal rules.
PR925, the system
populates the
database Þle
PRGARNRULEDBPRPGR
(Federal Garn Rules).

DeÞning U.S. Garnishment Types

Lawson delivers eight predeÞned garnishment types; however, if you need to
add additional types or modify the names of existing types, you can do so.

Need More Details? Check out the following concepts:

• "What are Garnishments?" on page 156
• "What are Garnishment Types?" on page 157
• "What are Garnishment Categories?" on page 158

STEPS To deÞne U.S. garnishment types

1. Access United States Garnishment Types (PR25.1).
2. Type a code to represent the garnishment type in the Type Þeld.
3. Type a description of the garnishment type in the DescriptionDSCRPT
Þeld.
4. Select the category in which the garnishment type belongs in the
CategoryCTGRY Þeld.

Payroll User Guide Chapter 7 Setting Up Garnishments 171

DeÞning U.S. Garnishment Rules
Garnishment rules determine how Payroll calculates:
• the portion of employee pay that is exempt from garnishments
• the garnishment amount
• garnishment fees
• multiple garnishments

STOP Before you deÞne U.S. garnishment rules, you must deÞne
any of the garnishment types you need that are not part of the standard
Lawson delivery. If the garnishment rules include fees, you must deÞne
a garnishment deduction code for the fee. For more information, see
"DeÞning US and CA Garnishment Deduction Codes" on page 122.

Need More Details? Check out the following concepts:

• "What are Garnishments?" on page 156
• "What are Garnishment Types?" on page 157
• "What are Garnishment Categories?" on page 158
• "What are Garnishment Rules?" on page 158
• "What are Garnishment Formulas?" on page 159
• "What Kinds of Employee Wages does Payroll use for
Garnishments?" on page 160
• "How does Payroll Process Multiple Garnishments when there
are Limited Employee Wages?" on page 161
• "What are Garnishment Priorities?" on page 163
• "What are the U.S. Federal Limitations to Garnishments?" on
page 164
• "How does Payroll decide which Garnishment Rule to Use for
each Garnishment?" on page 164
• "How does Payroll Calculate the Amounts of Garnishments?" on
page 166

STEPS To deÞne U.S. garnishment rules

1. Access United States Garnishments Rules (PR25.2).
2. DeÞne garnishment rule components. Consider the following Þelds.

Governing Tax The tax authority (state, county, or other locality)

Authority governing the garnishment. The tax authority
determines the rules that apply to a type of
garnishment.

172 Chapter 7 Setting Up Garnishments Payroll User Guide

 Category The category of the garnishment. If you set up
rules for a garnishment category, the rules apply
to all types associated with the category unless
a rule is deÞned for a speciÞc category and a
speciÞc type.
Note: Federal rules are deÞned by category.
Type The type of garnishment.

NOTE If you do not select a type, the type

defaults depending on the category you selected.

Multiple The value that indicates how the system should

Garnishment Rule distribute the amount withheld when the amount
is insufÞcient to cover multiple garnishment
orders for the same category.

3. DeÞne the variables of the formula used to determine wages exempt from
garnishment. Consider the following Þelds.

Formula The formula Payroll uses to calculate exempt

wages.
Rate If the formula uses a rate, select the rate that,
when multiplied by the federal minimum wage,
determines exempt wages for the employee.
Factor (1-4) If the formula uses factors, type a wage formula
factor that Payroll uses to calculate exempt
wages.
Second Family, If the formula considers second families, type the
Yes percent Payroll uses to calculate exempt wages
if an employee has a second family.
Second Family, If the formula considers second families, type the
No percent Payroll uses to calculate exempt wages
if an employee does NOT have a second family.
Addl %, Arrears If the garnishment is for child support or alimony,
Over 12 Weeks type the additional percentage that Payroll uses
(Additional to calculate exempt wages if arrears are over 12
Percent, Arrears weeks old.
Over 12 Weeks)
Payroll uses this percent if Yes is selected in the
Over 12 Weeks Þeld of Employee Garnishment
(PR26.1).
Per Dependent, If the formula considers dependents, type the
Calc Type amount or percent per dependent that Payroll
uses to calculate exempt wages.

4. DeÞne wages used to calculate exempt wages on the Disposable Wages

tab.

Payroll User Guide Chapter 7 Setting Up Garnishments 173

 5. DeÞne any fees included in the garnishment on the Fees tab. Consider
the following Þelds.

Deduction Select a deduction code to use to track

fee amounts withheld separately from the
garnishment amount. On Deduction (PR05.1),
you can only use deduction codes that have Yes
in the Garnishment Þeld.

NOTE Once you add this rule, the fee deduction

cannot be changed. To change a fee deduction
for an existing rule, you must delete the rule and
then add it with a new deduction code.

Amount Type the amount to be deducted from the

employee’s earnings for this garnishment fee. If
this Þeld and the Amount Þeld are left blank, the
Limit Option along with Limit Amount 1 and Limit
Amount 2, if applicable, determine the amount
to be withheld.

NOTE If this amount is changed, Deduction and

Garn Fee Update (PR115) updates employee
deduction master records with the new amount
(unless the amount was overridden at the
employee level).

Deduct from Garn

NOTE This Þeld applies only to the fee deduction,
not the Clearinghouse Fee deduction.

Indicate whether the fee should reduce the

amount taken for the garnishment amount if
taking the full garnishment deduction and the
fee would bring the employee net pay below
the protection provided by law. The decision
to deduct this deduction from the garnishment
can be overridden on United States Employee
Garnishment (PR26.1).
Apply Fee Select if you want to apply the fee only when
the garnishment amount is actually withheld
or apply the fee every payroll cycle in which
the garnishment amount should be withheld
(regardless of whether funds exist to cover the
garnishment order plus fees).

174 Chapter 7 Setting Up Garnishments Payroll User Guide

 Limit Option Select the value that indicates which limit option
should be used to determine the fee amount. Use
this Þeld in combination with the Limit Amount 1
Þeld and, if applicable, the Limit Amount 2 Þeld.
Limit Amount 1 Type a limit amount or percentage to be used in
fees calculation (based on the value in the Limit
Option Þeld).
Limit Amount 2 If the Limit Option rule has two calculations, type
the second limit amount or percentage to be used
in fees calculation.
Clearinghouse If a clearinghouse fee should be calculated, select
a deduction code from Deduction (PR05.1).
Clearinghouse fee deductions will only be taken
from the income available to garnish, always
preserving the employee’s protected income.
Partial Clearinghouse Fee deductions can be
taken based on the arrears ßag on the deduction,
but will never go into arrears, no matter what the
arrears ßag is set to on the deduction.
Clearinghouse fee deductions do not display as a
separate deduction on Earnings and Deductions
Calculation (PR140), Payroll Register (PR141),
or Gross Up Calculation (PR189). The amount
deducted will always be included in the deduction
amount shown on these reports.
Clearinghouse Fee Deductions will show
separately on the garnishment reports
produced by these programs. Clearinghouse
fee deductions do not display on Employee
Deduction (PR14.1) or Deduction Speed
Entry (PR15.1) because the clearinghouse fee
deduction is tied to the garnishment deduction.
Clearinghouse If you select a Clearinghouse Fee Deduction
Fee code, you can optionally supply an amount to
override the amount deÞned on the deduction.
Any amount supplied on the deduction or on the
rule may be overridden on PR26.1. If no amount
is supplied to override at this level or United
States Employee Garnishment (PR26.1), the
amount deÞned on the deduction is the amount
that will be used to calculate this fee.

Follow up Tasks for U.S. Garnishment Rules

• Assign Garnishments to employees. For more information, see
"Employee: Garnishments" on page 245.

Payroll User Guide Chapter 7 Setting Up Garnishments 175

 Related Reports and Inquiries
To Use
Audit garnishments Earnings and Deductions Calc
(PR140)
Payroll Register (PR141)
View garnishment history Garnishment History Report (PR277)

176 Chapter 7 Setting Up Garnishments Payroll User Guide

Canada Procedures in this Chapter
The following procedures explain how to set up garnishments for Canada
employees:
• "DeÞning Canada Garnishment Types" on page 177
• "DeÞning Canada Garnishment Rules" on page 178
Figure 16. Procedure ßow: Setting up Canada garnishments

1
- Optional -
Canada
Garnishment
Types
(PR46.1)

2
Canada
Garnishment
Rules
(PR46.2)

DeÞning Canada Garnishment Types

Lawson delivers nine predeÞned Canada garnishment types; however, if
you need to add more types or modify the descriptions of existing types,
you can do so.

Need More Details? Check out the following concepts:

• "What are Garnishments?" on page 156
• "What are Garnishment Types?" on page 157
• "What are Garnishment Categories?" on page 158

STEPS To deÞne Canada garnishment types

1. Access Canada Garnishment Types (PR46.1).
2. Type a code to represent the garnishment type in the Type Þeld.
3. Type a description of the garnishment type in the Description Þeld.
4. Select the category in which the garnishment type belongs in the
Category Þeld.

Payroll User Guide Chapter 7 Setting Up Garnishments 177

DeÞning Canada Garnishment Rules
Garnishment rules determine how Payroll calculates:
• The portion of employee pay that is exempt from garnishments
• How Payroll calculates fees
• How Payroll calculates multiple garnishments

STOP Before you deÞne Canada garnishment rules, you must deÞne
any of the garnishment types you need that are not part of the standard
Lawson delivery. If the garnishment rules include fees, you must deÞne
a garnishment deduction code for the fee. For more information, see
"DeÞning US and CA Garnishment Deduction Codes" on page 122.

Need More Details? Check out the following concepts:

• "What are Garnishments?" on page 156
• "What are Garnishment Types?" on page 157
• "What are Garnishment Categories?" on page 158
• "What are Garnishment Rules?" on page 158
• "What are Garnishment Formulas?" on page 159
• "What Kinds of Employee Wages does Payroll use for
Garnishments?" on page 160
• "How does Payroll Process Multiple Garnishments when there
are Limited Employee Wages?" on page 161
• "What are Garnishment Priorities?" on page 163
• "How does Payroll decide which Garnishment Rule to Use for
each Garnishment?" on page 164
• "How does Payroll Calculate the Amounts of Garnishments?" on
page 166
• "What is Arrears?" on page 97

STEPS To deÞne Canada garnishment rules

1. Access Canada Garnishment Rules (PR46.2).
2. DeÞne garnishment rule components. Consider the following Þelds.

Governing Tax The tax authority (province, or other locality)

Authority governing the garnishment. The tax authority
determines the rules that apply to a type of
garnishment.

178 Chapter 7 Setting Up Garnishments Payroll User Guide

 Category The category of the garnishment. If you set up
rules for a garnishment category, the rules apply
to all types associated with the category unless
a rule is deÞned for a speciÞc category and a
speciÞc type.
Federal rules are deÞned by category.
Type The type of garnishment.
Formula The formula that the system uses to calculate
exempt wages.
Multiple The value that indicates how Payroll should
Garnishment Rule distribute the amount withheld when the amount
is insufÞcient to cover multiple garnishment
orders for the same category.
TIP If a garnishment 3. DeÞne exempt wage factors according to the requirements of the
has more than one governing tax authority and formula. Consider the following Þelds.
variable rule, you must
enter all the pertinent
information for each Mar St (Marital The marital status that you want to deÞne formula
variable on separate Status) details for.
lines.
Basic Exempt, In these Þelds, type the amount or percent of
Basic Exempt wages that are exempt from garnishments each
Type month.
Wages Levels The monthly wage level at which employees
are eligible for an additional exemption. This
exemption is in addition to the basic exemption.
Addl Exempt, The amount or percent of additional wages that
Addl Calc Type are exempt from garnishments each month.
(Additional
Exempt,
Additional
Calculation Type)
Minimum Exempt, The minimum amount or percent of wages that
Min Calc Type are exempt from garnishments each month.
(Minimum
Calculation Type)

Payroll User Guide Chapter 7 Setting Up Garnishments 179

 Min Dep (Minimum the number of dependents that correspond to the
Dependent) formula details on this line.

TIP The number you type in this Þeld can be

the beginning of a range of dependents. For
example, if you type 2 on this line and type 4 on
the next line, employees with:

• 0 or 1 dependent would have no formula

details deÞned for them.
• 2 or 3 dependents would use the formula
details deÞned on this line.
4 or more dependents would use the formula
details deÞned on the next line.
Maximum Exempt, The maximum amount or percent of wages that
Max Calc Type are exempt from garnishments each month.
(Maximum
Calculation Type)

4. Repeat step 3 for each set of exempt wage factors needed to meet the
requirements of the governing tax authority and formula.
5. DeÞne exempt wages per dependent on the Dependent Detail tab.
Consider the following Þelds.

Nbr of Deps The number of dependents you want to use to

(Number of calculate the wage amount that is exempt from
Dependents) garnishment seizure.

TIP If you leave this Þeld blank and type in

an amount in the Amount Þeld, Payroll applies
the amount to each dependent deÞned for an
employee on the Family tab of Canada Employee
Garnishment (PR47.1).

TIP The number you type in this Þeld can be

the beginning of a range of dependents. For
example, if you type 2 on this line and type 4 on
the next line, employees with:

• 0 or 1 dependent deÞned on PR47.1 would

have no formula details deÞned for them.
• 2 or 3 dependents deÞned on PR47.1 would
use the formula details deÞned on this line.
• 4 or more dependents deÞned on PR47.1
would use the formula details deÞned on the
next line.

180 Chapter 7 Setting Up Garnishments Payroll User Guide

 Amount The monthly amount you want to use to calculate
exempt wages. This amount is associated
with the number of dependents you type in the
Dependent Þeld.

6. DeÞne pay and deductions Payroll uses to determine net wages on the
Net Wages tab.

Payroll User Guide Chapter 7 Setting Up Garnishments 181

NOTE The Employer 7. DeÞne any fees included in the garnishment on the Employer Fees tab.
Fees tab does not Consider the following Þelds.
deÞne court-ordered
fees. To apply court-
ordered fees to an Deduction Select a deduction code to use to track
employee garnishment, fee amounts withheld separately from the
use the Court Fee Þeld garnishment amount. You can only use deduction
on Canada Employee codes that have Yes in the Garnishment Þeld on
Garnishment (PR47.1).
Deduction (PR05.1).

NOTE Once you add this rule, the fee deduction

cannot be changed. To change a fee deduction
for an existing rule, you must delete the rule and
then add it with a new deduction code.

Amount Type the amount to be deducted from the

employee’s earnings for this garnishment fee. If
this Þeld and the Amount Þeld are left blank, the
Limit Option along with Limit Amount 1 and Limit
Amount 2, if applicable, determine the amount
to be withheld.

NOTE If this amount is changed, Deduction and

Garn Fee Update (PR115) updates employee
deduction master records with the new amount
(unless the amount was overridden at the
employee level).

Apply Fee Select if you want to apply the fee only when
the garnishment amount is actually withheld
or apply the fee every payroll cycle in which
the garnishment amount should be withheld
(regardless of whether funds exist to cover the
garnishment order plus fees).
Limit Option Select the value that indicates which limit option
should be used to determine the fee amount. Use
this Þeld in combination with the Limit Amount 1
Þeld and, if applicable, the Limit Amount 2 Þeld.
Limit Amount 1 Type a limit amount or percentage to be used in
fees calculation (based on the value in the Limit
Option Þeld).
Limit Amount 2 If the Limit Option rule has two calculations, type
the second limit amount or percentage to be used
in fees calculation.

182 Chapter 7 Setting Up Garnishments Payroll User Guide

 Related Reports and Inquiries
To Use
List the rules deÞned for Canada Canada Garnishment Rules Listing
garnishments (PR247)

Follow-up Tasks for Canada Garnishments

• Assign Garnishments to employees. For more information, see
"Employee: Garnishments" on page 245.

Payroll User Guide Chapter 7 Setting Up Garnishments 183

184 Chapter 7 Setting Up Garnishments Payroll User Guide
Chapter 8

Setting Up Bank Codes

This chapter covers how to set up additional bank codes within the Lawson
Payroll application.

STOP Before you set up additional bank codes, you must set up your
Human Resources (HR) company. During that setup, you deÞne the primary
bank code the company uses for Payroll processing. For more information,
see the Human Resources User Guide.

Payroll User Guide Chapter 8 Setting Up Bank Codes 185

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 190 • "What are Bank Codes?" on page 186
• "What is Direct Deposit?" on page 187
• "What is Prenoting?" on page 188
• "What do I need to Set Up to Use Direct Deposit?" on page 188
• "What are Payment and Receipt Formats?" on page 188

What are Bank Codes?

A bank code is a combination of the bank account number and general ledger
cash account. You can create one bank code and tie it to two different bank
accounts: one for system payments and one for direct deposits. If you do
not assign a direct deposit account to the bank code, the bank account you
assigned for system payments is used for direct deposits.
For each unique bank code your company requires, you need to deÞne a
separate process level in your HR company structure. For more information
see your Human Resources User Guide.
When you set up an HR company, deÞne the primary bank code used for
processing payroll. If you process payroll out of more than one bank account,
you can set up additional bank codes in Payroll.

Example
Two Rivers draws their checks out of two banks. All Minnesota locations draw
their checks out of Twin Cities Bank (TCB). All New Jersey locations draw their
checks out of Trenton Bank. All locations share the same general ledger cash
account. Therefore, Two Rivers deÞnes two bank codes, one for each unique
combination of a bank account number and general ledger cash account.
Figure 17. Example: Bank codes
Two Rivers
Company

Two Rivers River Bend Grove Grove River Bend Grove River Bend Grove
Headquarters Hospital Hospital Clinic Flowers, Gifts Flowers, Gifts Restaurant Cafe

TCB TCB Trenton Bank Trenton Bank TCB Trenton Bank TCB Trenton Bank

186 Chapter 8 Setting Up Bank Codes Payroll User Guide

What is Direct Deposit?
Direct deposit is the process of automatically depositing employee wages into
an employee’s bank account. The employee does not receive a paycheck
and might not receive a printed pay stub, depending on your organization’s
policies. In the United States, direct deposit is sometimes referred to as
an ACH (automatic clearing house) deposit. In the United Kingdom, direct
deposit is sometimes referred to as a BACS (bankers automated clearing
services) deposit.
Employees can choose to have their pay directly distributed to as many as 99
bank accounts. Ninety-nine accounts are available so employers do not have
to delete inactive distribution orders.
Employees can specify a partial distribution or 100 percent of their net pay.
Employees must have one default bank account. The default bank account is
the account where any remaining balance is deposited. The bank account
you select as the default is always processed last. You must deÞne the
default account as 100 percent of net so Payroll can distribute the total
remaining balance of net pay to this account after Payroll processes all other
distributions.
Before you can authorize direct deposits for an employee, you must verify that
the direct deposit option is Yes for the bank account and the automatic deposit
option is Yes on the employee record.
The direct deposit record must be activated before Payroll can automatically
deposit a distribution. Payroll activates a direct deposit record when the
value in the Prenotify Status Þeld on Direct Deposit Distributions (PR12.1)
is Accepted.

Payroll User Guide Chapter 8 Setting Up Bank Codes 187

What is Prenoting?
Some banks require that you prenotify them of direct deposits before you
send the direct deposit to an employee’s account. On the bank account, you
deÞne whether direct deposits for this account must be prenotiÞed.

Prenoting Required
If a bank account requires prenotiÞcation, the Þrst time Payroll processes a
new direct deposit, Payroll creates prenotiÞcations and updates the direct
deposit distribution from Not PrenotiÞed to PrenotiÞed. Payroll processes
direct deposits when you create payments during the payroll cycle. You can
prenote directly by running payments normally or for prenotiÞcation only.

IMPORTANT The Þrst time you process a new direct deposit, Payroll prenotes
it only and the employee receives a physical paycheck.

TIP You can The second time you process the direct deposit, Payroll updates the
manually change the PrenotiÞed status to Accepted when you calculate earnings and deductions
prenotiÞcation status for the employee. The employee receives pay as a direct deposit.
from PrenotiÞed to
Accepted on the
Employee Direct
Deposit distribution Prenoting Not Required
when the bank accepts If a bank account does not require prenotiÞcation, the Þrst time Payroll
the notiÞcation.
processes a new direct deposit, it updates the direct deposit distribution from
Not PrenotiÞed to Accepted when you calculate earnings and deductions.
Payroll does not create prenotiÞcations for these direct deposits, so it pays
the employee via direct deposit immediately.

What do I need to Set Up to Use Direct Deposit?

For an employee to receive a direct deposit payment, you must:
• DeÞne bank codes that Payroll uses for direct deposit. For more
information, see "Adding Bank Accounts" on page 190.
• DeÞne the employee record to allow direct deposit for the employee.
For more information, see "Employee: Direct Deposit Distributions" on
page 267.
• DeÞne direct deposit distributions for the employee. For more information,
see "Employee: Direct Deposit Distributions" on page 267.

What are Payment and Receipt Formats?

Payment formats deÞne the information that appears on payment and direct
deposit receipts. You assign a payment format to each bank account.
The following table contains detailed descriptions of what you can include on
a receipt for each of the payment formats.

188 Chapter 8 Setting Up Bank Codes Payroll User Guide

 Format Format description Payment or Direct
Deposit receipt
includes up to
0 or blank Over/Under Limited 8 pay summary groups
YTD 24 deductions 4 time
accrual balances
(optional) 7 direct
deposit distributions
1 Over/Under Stub On 11 pay summary groups
Top 22 deductions 3 time
accrual balances
(optional) 3 direct
deposit distributions
2 Over/Under Stub On 11 pay summary groups
Bottom 22 deductions 3 time
accrual balances
(optional) 3 direct
deposit distributions
3 Side By Side No TA 11 pay summary groups
Balances 13 deductions 2 direct
deposit distributions
4 Side By Side TA 8 pay summary groups
Balances 12 deductions 3 time
accrual balances
(optional) 2 direct
deposit distributions
5 Side By Side Heat 10 pay summary groups
Sealed 12 deductions 3 time
accrual balances
(optional) 2 direct
deposit distributions
9 Over/Under Mailer 11 pay summary groups
22 deductions 3 time
accrual balances
(optional) 3 direct
deposit distributions

When you print payments during the payroll cycle, you can print an hourly rate
for hourly employees for payment formats 1, 2, 3, 4, 5, and 9. The option to
print an hourly rate for hourly employees is not valid with payment option 0
or blank. For payment formats that allow printing of time and attendance
balances, you can deÞne parameters to print balances for plans associated
with a plan class when you deÞne time and attendance plans. For more
information, see the Time and Attendance User Guide.
The pay codes and deduction codes print in numeric and then alphabetic
order of the code (not the description). If there are more pay codes or
deduction codes on a payment than the limits allow, the last entry on the pay
receipt is a total of all the remaining pay codes or deduction codes.

Payroll User Guide Chapter 8 Setting Up Bank Codes 189

Procedures in this Chapter
When you set up an HR company, deÞne the primary bank code used for
processing Payroll. If you process Payroll out of more than one bank account,
you can set up additional bank codes in Payroll.
• "Adding Bank Accounts" on page 190
• "DeÞning Bank Codes" on page 191
Figure 18. Procedure relationship: DeÞning Bank Codes

Define Bank
Accounts

Define Bank Codes

Adding Bank Accounts

NOTE Bank accounts If your organization opens a new bank account, you must add the new
can be used by any HR account to Payroll.
company.
Need More Details? Check out the following concepts:
• "What are Bank Codes?" on page 186
• "What is Direct Deposit?" on page 187
• "What is Prenoting?" on page 188
• "What do I need to Set Up to Use Direct Deposit?" on page 188
• "What are Payment and Receipt Formats?" on page 188

STEPS To add a bank account

1. Access Bank Account (PR01.1).
2. Type the bank account number in the Account Þeld.
3. Select the country in which the bank account is valid in the Country Þeld.
4. If the bank account is not used in Canada, deÞne options on the Main
tab. Consider the following Þelds.

Originating DFI The routing number assigned to the bank where

you apply cash transactions.
Sending Point DFI If the direct deposit option is Yes for the bank
account, type the routing number of the bank that
processes the direct deposit tape.
Direct Deposit Indicates whether auto deposit is available for the
Option entered bank account.

190 Chapter 8 Setting Up Bank Codes Payroll User Guide

 Prenote If you select Yes in the Direct Deposit Option
Þeld, select whether direct deposit prenotiÞcation
is required for this account.

NOTE If you select Yes, Payroll creates prenotes

for affected employees when you run Payment
Print (PR160). If you select No, Payroll creates a
direct deposit without prenotifying the bank.

Payment Format The payment format for this bank account.

Receipt Format The receipt format for this bank account.

5. If this is a Canada bank account, deÞne options on the Canada tab.

Consider the following Þelds.

Client Nbr Identifying ID for the client. Assigned by the bank

or bank and client.
Destination Data The destination data center that identiÞes the
Center direct clearer and the location where the direct
deposit Þle is processed.
Settlement The bank identiÞcation number of the institution
Institution that settles the direct deposit transactions.
Institution ID The bank identiÞcation number for the bank that
Returns operates as the institution for return items from
the direct deposit transactions.
Account Number The account number you want to use for returned
Returns direct deposit items.
Direct Deposit Indicates whether auto deposit is available for the
Option entered bank account.
Payment Format The payment format for this bank account.
Receipt Format The receipt format for this bank account.

Related Reports and Inquiries

To Use
List bank information Bank Listing (PR201)

DeÞning Bank Codes

A bank code is a combination of the bank account number and General
Ledger cash account. You can create one bank code and associates it with
two different bank accounts: one for system payments and one for direct
deposits. If you do not assign a direct deposit account to the bank code, the
bank account you assigned for system payments is used for direct deposits.

Payroll User Guide Chapter 8 Setting Up Bank Codes 191

 Need More Details? Check out the following concepts:
• "What are Bank Codes?" on page 186
• "What is Direct Deposit?" on page 187

STEPS To deÞne bank codes

1. Access Bank Code (PR01.2).
2. Select the bank account in the Account Þeld.
3. Select the General Ledger distribution company, accounting unit, account,
and subaccount in the Cash Account Þelds.

Related Reports and Inquiries

To Use
List bank information Bank Listing (PR201)

192 Chapter 8 Setting Up Bank Codes Payroll User Guide

Chapter 9

Setting Up Pension Funding Sources

This chapter covers how to set up the funding sources from which you pay
pensions to United States employees.

IMPORTANT You can only set up funding sources for United States
companies.

Payroll User Guide Chapter 9 Setting Up Pension Funding 193

Sources
Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedure in this chapter.
"Procedures in this
Chapter" on page 195

What are Funding Sources?

Funding sources represent the locations of the funds used for pension or
retirement payments. Funding sources can be a mutual fund, bank account,
stock fund—anywhere your organization stores funds for these kinds of
payments.
When you set up a funding source, you associate it with the General Ledger
account that tracks the funds. As you create pension payments using a
funding source, Payroll posts the wage expense to the General Ledger
account you associate with the funding source.
You deÞne a description for the funding source that prints on pension
payments.

You can also assign an activity to the funding source for tracking in the
Project Accounting application.
For more information, see "Time Records: Pension Payments" on page 339.

194 Chapter 9 Setting Up Pension Funding Sources Payroll User Guide

Procedures in this Chapter
The following procedure describes how to set up funding sources.

Setting Up Funding Sources

You set up funding sources to use for pension payments.

Need More Details? Check out the following concepts:

• "What are Funding Sources?" on page 194

STEPS To set up funding sources

1. Access Funding Sources (PR04.1).
2. Select the process level for which you want to set up funding sources
in the Process Level Þeld.
3. Select the department for which you want to set up funding sources in
the Department Þeld.
4. DeÞne the funding source. Consider the following Þelds.

Source Type the code you want to represent the source.

Payment Type the description that appears on pension
Description payments.
Status Select whether the funding source is active and
can be used for pension payments.
User Field Type any custom information you want to
associate with this funding source.

NOTE Payroll does not perform any edits or

validation of this Þeld.

Account Select the General Ledger account to which you

want to post pension expenses associated with
this funding source.

5. If you want to post pension expenses that use this funding source to an
activity, select an Activity and Account Category in the Activity Þelds.
6. If you want a more detailed description of the funding source to print on
activity reports, type the description in the Description Þeld. If you leave
this Þeld blank, the payment description Þeld defaults on the activity
reports.

Options for setting up funding sources

The following options are available for setting up funding sources:

Payroll User Guide Chapter 9 Setting Up Pension Funding 195

Sources
 To You must
Change a funding source Delete and re-add the changes.

Related Reports and Inquiries

To Use
List funding sources Ee Garnishment Listing (PR225)

196 Chapter 9 Setting Up Pension Funding Sources Payroll User Guide

Chapter 10

Setting Up Tips

The Tips application sets up unique tips allocation levels to calculate shortfalls
in tips based on hours worked or gross receipts. Allocation levels can be set
up for the company, the process level, or the department.

STOP Before you set up the Tips application, you must set up allocation
levels, and various information in both the Human Resources (HR) application
and Payroll to ensure that Tips runs properly. For more information, see "What
do I need to Set Up Before I Use the Tips application?" on page 202.

Payroll User Guide Chapter 10 Setting Up Tips 197

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 206 • "What are Allocation Levels?" on page 198
• "What is Shortfall Allocation?" on page 198
• "How does Tips Calculate the Shortfall Allocation Using Individual
Gross Receipts Method?" on page 198
• "How does Tips Calculate the Shortfall Allocation for the Hours
Worked Method?" on page 200
• "What do I need to Set Up Before I Use the Tips application?" on
page 202

What are Allocation Levels?

Allocation levels are the different areas in an organization for which Tips
calculates the shortfall allocation. Payroll calculates shortfall allocations for
each employee who did not report the required minimum percent of gross
receipts for tip income in each allocation level.

What is Shortfall Allocation?

When an establishment in which tipping is considered customary does not
report the required minimum percent of its gross receipts as tip income
received by its tipped employees, the establishment must calculate the
shortfall amount and allocate that amount to those tipped employees who did
not report the minimum required percent.
You can calculate the shortfall allocation using gross receipts or hours worked.

How does Tips Calculate the Shortfall Allocation Using

Individual Gross Receipts Method?
If you use the Individual Gross Receipts method of calculating tip shortfall,
Tips uses the ratio of gross receipts reported by a tipped employee to the total
gross receipts for the allocation level for the date range speciÞed.
The following examples illustrate the calculations Payroll uses to determine
the shortfall allocation.
The following table shows the gross receipts and direct tips reported by tipped
employees for a speciÞed date range:

198 Chapter 10 Setting Up Tips Payroll User Guide

 Directly tipped Employee gross receipts Direct tips reported
employees for the date range speciÞed
Employee A 18,000 1,080
Employee B 16,000 880
Employee C 23,000 1,810
Employee D 17,000 800
Employee E 12,000 450
Employee F 14,000 680
Totals 100,000 5,700

Tips uses the following steps to calculate the shortfall allocation.

1. Calculates the amount of tip income required from direct tips:

100,000.00 Allocation level gross receipts

* .08 Allocation percent
8,000.00 Tip reporting requirement
- 500.00 Total indirect tip income
7,500.00 Income required from direct tips
NOTE The gross 2. Multiplies the income required from direct tips for the allocation level by
receipts ratio is the ratio the gross receipts ratio to determine the amount that should be reported
of each employee’s by each employee.
reported gross receipts
to the total gross receipts
for the allocation level. Directly Tip income Gross receipts Employee
tipped required ratio share of
employees from direct tips
tips
A 7,500 * 18,000/100,000 = 1,350
B 7,500 * 16,000/100,000 = 1,200
C 7,500 * 23,000/100,000 = 1,725
D 7,500 * 17,000/100,000 = 1,275
E 7,500 * 12,000/100,000 = 900
F 7,500 * 14,000/100,000 = 1,050
Total 7,500

3. Subtracts the direct tips reported by each employee from the calculated
amount the employee should have reported, to determine the employee
shortfall.

Payroll User Guide Chapter 10 Setting Up Tips 199

 Directly tipped Employee’s Direct tips Employee
employees share of tips shortfall
A 1,350 - 1,080 = 270
B 1,200 - 880 = 320
C 1,725 - 1,810 = *
D 1,275 - 800 = 475
E 900 - 450 = 450
F 1,050 680 = 370
Totals 7,500 5,700 1,885

* Because employee C reported tips in excess of eight percent, the

program does not allocate a shortfall amount.
4. Subtracts the direct and indirect tips reported for the allocation level from
the tip reporting requirement to determine the allocatable shortfall for
the allocation level.

8,000.00 Tip reporting requirement

- 5,700.00 Direct tips reported
- 500.00 Indirect tips
1,800.00 Allocatable shortfall

5. Multiplies the allocatable shortfall for the allocation level by the shortfall
ratio to determine the shortfall allocation for each employee. The shortfall
ratio is the ratio of the individual employee shortfall to the allocation level
shortfall.

Shortfall Allocatable Shortfall ratio Shortfall

employees shortfall allocation
A 1,800 * 270/1,885 = 258
B 1,800 * 320/1,885 = 306
D 1,800 * 475/1,885 = 453
E 1,800 * 450/1,885 = 430
F 1,800 * 370/1,885 = 353
Total $1,800

How does Tips Calculate the Shortfall Allocation for the Hours
Worked Method?
In the Hours Worked method of calculating tip shortfall, Payroll determines the
shortfall by taking the ratio of hours worked by a tipped employee to the total
hours worked by all tipped employees in the allocation level for the same time
period and applying it to the total shortfall of tips for the allocation level.

200 Chapter 10 Setting Up Tips Payroll User Guide

 Shortfall Allocation Calculation (TP100) uses the hours worked by tipped
employees in tipped jobs that are tracked by Tip Calculation (TP135).
The following table shows the hours worked and direct tips reported by tipped
employees for a speciÞed date range:
Directly tipped Hours worked in date Direct tips reported
employees range speciÞed
Employee A 180 1,080
Employee B 172 880
Employee C 188 1,810
Employee D 176 800
Employee E 144 450
Employee F 160 680
Totals 1020 5,700

Tips uses the following steps to calculate the shortfall allocation calculation:
1. Calculates the amount of tip income required from direct tips.

100,000.00 Allocation level gross receipts

* .08 Allocation percent
8,000.00 Tip reporting requirement
- 500.00 Total indirect tip income
7,500.00 Income required from direct tips

2. Multiplies the income required from direct tips for the allocation level by
the hours worked ratio to determine the amount that should be reported
by each employee. The hours worked ratio is the ratio of hours worked
by an individual employee to the total hours worked by all employees in
the process level for the same period of time.

Directly Income Hours worked Employees

tipped required ratio share of
employees from direct tips
tips
A 7,500 * 180/1020 = 1,324
B 7,500 * 172/1020 = 1,265
C 7,500 * 188/1020 = 1,382
D 7,500 * 176/1020 = 1,294
E 7,500 * 144/1020 = 1,059
F 7,500 * 160/1020 = 1,176
Total 7,500

3. The program subtracts the direct tips reported by each employee from the
calculated amount the employee should have reported, to determine the
employee shortfall.

Payroll User Guide Chapter 10 Setting Up Tips 201

 Directly tipped Employee Direct tips Employee
employees share of tips shortfall
A 1,324 - 1,080 = 244
B 1,265 - 880 = 385
C 1,382 - 1,810 = *
D 1,294 - 800 = 494
E 1,059 - 450 = 609
F 1,176 - 680 = 496
Totals 7,500 5,700 2,228

*Because employee C reported tips in excess of eight percent, the

program does not allocate a shortfall amount.
4. The program subtracts the direct and indirect tips reported for the
allocation level from the tip reporting requirement, to determine the
allocatable shortfall for the allocation level.

8,000.00 Tip reporting requirement

- 5,700.00 Direct tips reported
- 500.00 Indirect tips
1,800.00 Allocatable shortfall

5. The program multiplies the allocatable shortfall for the allocation level by
the shortfall ratio to determine the shortfall allocation for each employee.
The shortfall ratio is the ratio of the individual employee shortfall to the
allocation level shortfall.

Shortfall Allocatable Shortfall ratio Shortfall

employees shortfall allocation
A 1,800 * 244/2,228 = 197
B 1,800 * 385/2,228 = 311
D 1,800 * 494/2,228 = 399
E 1,800 * 609/2,228 = 492
F 1,800 * 496/2,228 = 401
Total $1,800

What do I need to Set Up Before I Use the Tips application?

In addition to setting up allocation levels, you must set up various information
in both the Human Resources (HR) application and Payroll to ensure that
Tips runs properly.
• "Human Resources Structure" on page 203
• "Payroll Structure" on page 204

202 Chapter 10 Setting Up Tips Payroll User Guide

 Human Resources Structure
Before you begin using the Tips application, you must deÞne a company
structure and employees in the Lawson Human Resources application. For
complete information on setting up a company in the Human Resources
application, see the Human Resources User Guide.

Tip Calculation
When you deÞne your company structure, you can choose to include the tip
calculation in the payroll cycle for the company or for speciÞc process levels:
• You can include the tip calculation in the payroll cycle for an entire
company. For more information, see “DeÞning a Company” in the Human
Resources User Guide.
• You can require that the tip calculation be included in the payroll cycle for
some, but not all, process levels in the company. See “DeÞning a Process
Level” in the Human Resources User Guide.

Tips Pay Class

To associate the Tips application to the HR application, you deÞne a tips pay
class when you deÞne a company. The tips pay class:
• Ensures that tips hours are not multiplied by the rate on the time record
• Performs non-cash calculations
• Determines whether tip wages and hours are included in the calculation
of minimum wage
• Prevents the hourly rate from printing on payments for tip time records

CAUTION The tips

pay class you deÞne for a
Company is automatically
set up in Payroll. DO NOT
set up the tips pay class
in Payroll, or tips will not
process correctly. For
more information, see
“DeÞning a Company” in
the Human Resources
User Guide.

Tipped Job Codes

A job code identiÞed as a tipped job code indicates that Social Security and
Medicare tax credit can be calculated on tips earned in this job.
For more information, see “DeÞning a Job Code” in the Human Resources
User Guide.

Tipped Employees
Identify an employee as a tipped employee to determine whether the system
performs the minimum wage edit and whether the employee is eligible to be
included in the tip credit calculation.
For more information, see “DeÞning an Employee” in the Human Resources
User Guide.

Payroll User Guide Chapter 10 Setting Up Tips 203

 Payroll Structure
Payroll interfaces with the Tips application. This interface lets you create tips
history from the time record entry forms in Payroll.
You can deÞne the following items to interface with the Tips application:
• "Pay Class" on page 204
• "Pay Summary Groups" on page 204
• "Pay Summary Group Relationships" on page 204
• "Pay Codes" on page 205

Pay Class
If you want to include only certain kinds of pay and hours in the tip and tax
credit calculations, you can deÞne pay classes. You can deÞne pay classes
that represent the kinds of pay you want to include and associate them with
pay summary groups. For more information, see "What are Pay Classes?" on
page 33. For more information, see "DeÞning Pay Classes" on page 53.
CAUTION The Tips pay
class you deÞne for a
Company is automatically
set up in Payroll. DO NOT
set up the Tips pay class
in Payroll or tips will not
process correctly. For more
information, see “DeÞning
a Company” in the Human
Resources User Guide.

Pay Summary Groups

Pay summary groups provide unique calculations for direct and indirect tips
and let you deÞne a common payment description for multiple pay codes.
Pay summary groups let you determine whether the associated hours and
amounts are eligible to be included in the calculation of the regular rate of
pay for the employee. For more information, see "What are Pay Summary
Groups?" on page 32. For more information, see "DeÞning Pay Summary
Groups" on page 54.

Pay Summary Group Relationships

A pay summary group relationship provides the association between pay
summary groups and the pay class. You can tie a pay summary group to
more than one pay class.

204 Chapter 10 Setting Up Tips Payroll User Guide

 In the Tips application you can:
• Associate tip pay summary groups with the Tips pay class to provide
the proper edits and calculations
• Associate pay summary groups with a unique pay class. Pay summary
groups represent speciÞc kinds of pay you want to include in the tip and
tax credit calculations.
To calculate and report pay class totals, you can include, exclude, or
subtract the hours or wages associated with the pay summary group.
For more information, see "What are Pay Summary Groups?" on page 32.
For more information, see "DeÞning Pay Summary Group Relationships"
on page 57.

Pay Codes
You can deÞne pay codes for adding tip records or for paying tip pay through
Payroll.
To add tip records:
You can deÞne a pay code for adding direct and indirect tips by assigning a
Non-cash Income calculation type to the pay code. Payroll adds the amounts
from non-cash tips pay codes to regular pay to calculate taxes, then subtracts
the non-cash amount before calculating net pay. For more information, see
"What are Pay Codes?" on page 30. For more information, see "How are Pay
Rates Calculated?" on page 34. For more information, see "DeÞning Pay
Codes" on page 58.
Indirect tips are not used in the calculation of shortfall allocation but are
included in allocation level reports and inquiries.
To pay tips through Payroll
You can pay tips through Payroll by deÞning a tip pay code with a calculation
type of Normal Rate. Use this type of pay code to pay directly tipped
employees through payroll; for example, for charged tips. Associate the pay
code with the direct tip pay summary group and the tips pay class to include
it in calculating the shortfall allocation for direct tips. For more information,
see "What are Pay Codes?" on page 30. For more information, see "How are
Pay Rates Calculated?" on page 34. For more information, see "DeÞning Pay
Codes" on page 58.

Minimum Wage
You must deÞne a U.S. federal minimum wage and a state minimum wage, if
applicable, to use in the calculation of tip credit. When you calculate tips, the
Tips application compares the federal and state minimum wages and uses
the higher rate in the calculation. Tip credits allow an employer to include tip
income as part of the hourly wage paid to an employee to meet the minimum
wage rate.
For more information, see "What is a Tax Authority? (U.S. and C.A.)" on
page 77. For more information, see "DeÞning United States Tax Authorities"
on page 81.

Payroll User Guide Chapter 10 Setting Up Tips 205

Procedures in this Chapter
To use the Tips application, you must deÞne at least one company allocation
level. You can also deÞne allocation levels for process levels, departments,
or shifts.
• "DeÞning Company Allocations" on page 206
• "DeÞning Process Level Allocations" on page 208
• "DeÞning Department Allocations" on page 209
• "DeÞning Shift Allocations" on page 210

DeÞning Company Allocations

Allocation levels separate areas of an organization for calculating shortfall
allocation. The system calculates shortfall allocations for each employee in
each level in which they report tip income.

STOP Before you set up company allocations, you must ensure the Tips
application is set up. For more information, see "What do I need to Set Up
Before I Use the Tips application?" on page 202.

Need More Details? Check out the following concepts:

• "What are Allocation Levels?" on page 198
• "What is Shortfall Allocation?" on page 198
• "How does Tips Calculate the Shortfall Allocation Using Individual
Gross Receipts Method?" on page 198
• "How does Tips Calculate the Shortfall Allocation for the Hours
Worked Method?" on page 200

STEPS To deÞne company allocations

1. Access Company Allocation (TP00.1).
2. Select the calculation method you want to use for this allocation level in
the Allocation Method Þeld.

206 Chapter 10 Setting Up Tips Payroll User Guide

TIP The maximum 3. Type the calculation percent for the allocation level in the Allocation
integer places are Percent Þeld.
deÞned within the
system, so begin the 4. In the Control Totals Þeld, select whether the total gross receipts entered
allocation percent with a on Gross Receipts Allocation (TP20.3) for an allocation level must
decimal point. balance with the individual gross receipts entered for that allocation level
for the same period of time.

IMPORTANT The selection you make in the Control Totals Þeld affects all
allocation levels deÞned for the selected company that use the Individual
Gross Receipts allocation method.

5. If you plan to Þle your federal report form electronically, type the
Þve-character alpha-numeric transmitter control code assigned to you by
the Internal Revenue Service in the Transmitter Cntrl Code Þeld.
6. DeÞne the establishment. Consider the following Þelds.

Establishment The number that identiÞes individual

Number establishments that you are reporting under the
same tax reporting ID.

NOTE This Þeld allows 30 characters, but you

should check the federal reporting form to make
sure your establishment number complies with
Þling requirements.

Establishment The type of establishment this allocation level

Type represents. This information is reported on the
federal report form.
Establishment The establishment name.
Name
(Address Fields) The establishment address.

NOTE If you deÞne an establishment name

but do not enter any address information, the
address deÞned on Company (HR00.1) for the
selected company is the default.

Payroll User Guide Chapter 10 Setting Up Tips 207

 Related Reports and Inquiries
To Use
List allocation levels Allocation Level Listing (TP200)

DeÞning Process Level Allocations

Process level allocation levels are separate areas of an organization used in
calculating shortfall allocation. The system calculates shortfall allocations for
each employee in each level in which they report tip income.

STOP Before you set up company allocations, you must ensure the Tips
application is set up. For more information, see "What do I need to Set Up
Before I Use the Tips application?" on page 202.

Need More Details? Check out the following concepts:

• "What are Allocation Levels?" on page 198
• "What is Shortfall Allocation?" on page 198

STEPS To deÞne process level allocations

1. Access Process Level Allocation (TP00.2).
2. Select the calculation method you want to use for this allocation level in
the Allocation Method Þeld.

208 Chapter 10 Setting Up Tips Payroll User Guide

TIP The maximum 3. Type the calculation percent for the allocation level in the Allocation
integer places are Percent Þeld.
deÞned within the
system, so begin the 4. DeÞne the establishment. Consider the following Þelds.
allocation percent with a
decimal point. Establishment The number that identiÞes individual
Number establishments that you are reporting under the
same tax reporting ID.

NOTE This Þeld allows 30 characters, but you

should check the federal reporting form to make
sure your establishment number complies with
Þling requirements.

Establishment The type of establishment this allocation level

Type represents. This information is reported on the
federal report form.
Establishment The establishment name.
Name
(Address Fields) The establishment address.

NOTE If you deÞne an establishment name

but do not enter any address information, the
address deÞned on Process Level (HR01.1) for
the selected company defaults.

Related Reports and Inquiries

To Use
List allocation levels Allocation Level Listing (TP200)

DeÞning Department Allocations

Department allocation levels are separate areas of an organization used for
calculating shortfall allocation. The system calculates shortfall allocations for
each employee in each level in which they report tip income.

STOP Before you set up company allocations, you must ensure the Tips
application is set up. For more information, see "What do I need to Set Up
Before I Use the Tips application?" on page 202.

Payroll User Guide Chapter 10 Setting Up Tips 209

 Need More Details? Check out the following concepts:
• "What are Allocation Levels?" on page 198
• "What is Shortfall Allocation?" on page 198

STEPS To deÞne department allocations

1. Access Department Allocation (TP00.3).
2. Select the calculation method you want to use for this allocation level in
the Allocation Method Þeld.
TIP The maximum 3. Type the calculation percent for the allocation level in the Allocation
integer places are Percent Þeld.
deÞned within the
system, so begin the 4. DeÞne the establishment. Consider the following Þelds.
allocation percent with a
decimal point. Establishment The number that identiÞes individual
Number establishments that you are reporting under the
same tax reporting ID.

NOTE This Þeld allows 30 characters, but you

should check the federal reporting form to make
sure your establishment number complies with
Þling requirements.

Establishment The type of establishment this allocation level

Type represents. This information is reported on the
federal report form.
Establishment The establishment name.
Name
(Address Fields) The establishment address.

NOTE If you deÞne an establishment name

but do not enter any address information, the
address deÞned onProcess Level (HR01.1) for
the selected company defaults.

Related Reports and Inquiries

To Use
List allocation levels Allocation Level Listing (TP200)

DeÞning Shift Allocations

Shift allocation levels are separate areas of an organization used for
calculating shortfall allocation. Payroll calculates shortfall allocations for each
employee in each level in which they report tip income.

210 Chapter 10 Setting Up Tips Payroll User Guide

 STOP Before you set up company allocations, you must ensure the Tips
application is set up. For more information, see "What do I need to Set Up
Before I Use the Tips application?" on page 202.

Need More Details? Check out the following concepts:

• "What are Allocation Levels?" on page 198
• "What is Shortfall Allocation?" on page 198

STEPS To deÞne company allocations

1. Access Shift Allocation (TP00.4).
2. Select the calculation method you want to use for this allocation level in
the Allocation Method Þeld.
TIP The maximum 3. Type the calculation percent for the allocation level in the Allocation
integer places are Percent Þeld.
deÞned within the
system, so begin the
allocation percent with a Related Reports and Inquiries
decimal point.
To Use
List allocation levels Allocation Level Listing (TP200)

Payroll User Guide Chapter 10 Setting Up Tips 211

212 Chapter 10 Setting Up Tips Payroll User Guide
Chapter 11

Employee: Pay

This chapter describes how to assign employee pay features within the
Lawson Payroll application. Employee pay features are features of Payroll
that apply to an employee or a group of employees.

STOP Before you assign employee pay, you must set up your pay
structure. For more information, see "Setting Up Pay Structure" on page 29.

Payroll User Guide Chapter 11 Employee: Pay 213

Procedures in this Chapter
The following procedures explain how to assign employee pay features.
• "Assigning Employee Pay" on page 214

Assigning Employee Pay

You must assign employees to pay features to ensure employees are paid
properly when you run the payroll cycle.

You assign employee pay in the Human Resources (HR) application.

You might have set up some of this information when you set up the HR
application. For more information, see the Human Resources User Guide.

STOP Before you assign employee pay, you must set up pay structure. For
more information, see "Setting Up Pay Structure" on page 29.

Need More Details? Check out the following concepts:

• "What is a Progressive Pay Plan?" on page 42
• "What are Pay Plans?" on page 36
• "What are Bank Codes?" on page 186

STEPS To assign employee pay

1. Access Employee (HR11.1).
2. Enter employee pay information on the Pay tab. Consider the following
Þelds.

Salary Class This Þeld indicates whether the employee is paid

on an hourly or salaried basis. Your selection
determines how employee pay is calculated.
Pay Frequency Pay Frequency determines how often the
employee is paid.
Rate of Pay Rate of Pay indicates the employee’s rate of pay.
For an employee with an hourly salary class, type
an hourly rate. For a salaried employee, type an
annual salary.
If the employee is assigned to a schedule, grade,
and step, the Rate of Pay Þeld should be left
blank to allow the rate of pay to default from the
schedule.

214 Chapter 11 Employee: Pay Payroll User Guide

 Schedule, Grade, If you use a Step and Grade Schedule or a
Step Grade Range Schedule, assign the desired pay
schedule to the employee.
If Step and Grade is used, select the appropriate
step, grade, and schedule, and leave the Rate
of Pay Þeld blank. If left blank, the Rate of Pay
Þeld information defaults from Step And Grade
Schedule (PR16.1).
If an employee is associated with a grade range
schedule, select the schedule and grade, and
type a rate of pay in the Rate of Pay Þeld. The
Grade Range Schedule is used for wage analysis
reporting. The ranges deÞned are used for
reporting purposes, not to deÞne the rate of pay
for an employee.
NOTE To calculate 3. Select whether the employee is eligible for FLSA overtime in the Exempt
overtime, the employee from Overtime Þeld.
must be nonexempt and
have a valid overtime 4. If you want the employee to be eligible for FLSA Overtime, select the
pay plan assigned on FLSA OT Pay plan in the Pay Plan Þeld.
the Pay form tab.
IMPORTANT An employee must be associated to a pay plan to be
paid. Associate the employee with a pay plan on Employee (HR11.1)
individually or on Pay Plan Schedules (PR22.2) by process level, pay
frequency, or company.

5. Select whether the employee is a tipped employee in the Tipped Þeld. By

ßagging tipped employees, minimum wage is veriÞed and the tip credit
calculation is performed correctly.
NOTE An employee 6. If the employee has his or her check automatically deposited, select
must be assigned to whether all or a portion of the check is deposited in the Automatic Deposit
a status code with a
Þeld.
payment status of either
PN or PB to be allowed 7. If the employee will be assigned an automatic time record, select which
to receive pay. type of records can be entered for the employee.

If you want to generate Select

Both standard time records and Yes
employee group time records
Only employee group time records Time Group
Only standard time records Standard

Options for Assigning Employee Pay

The following options are available for assigning employee pay.

Payroll User Guide Chapter 11 Employee: Pay 215

 If you want to Select
Assign different rates of pay to an the Alt Rate button and deÞne
employee alternate rates of pay for the
employee
Assign an employee to more than the Add form action on Employee
one position (HR11.1), to display the Positions
Job button on the Assignment tab
Choose the Position Job button to
transfer to Multiple Positions and
Jobs (PA13.1) to add additional
positions
View an employee’s compensation the Comp Analysis button
information
Calculate and view a Pay Rate the Currency Calc button from
in the recorded currency and the Compensation Analysis (HR11.2)
company’s base currency

You can use the Alternate Pay Rates window on Employee (HR11.1) to deÞne
unlimited alternate pay rates for an employee. You can associate alternate
pay rates with a process level, department, position, job code, or pay code,
and can indicate an effective date range for time record entry. If the user is
secured from pay rates, the window is not available.
At time record entry the appropriate pay is calculated based on data selected
on the time record. For more information, see "Pay Rate Defaulting without
Positions" on page 667. For more information, see "Pay Rate Defaulting
with Positions" on page 670.
On the Pay Edits tab on Employee (HR11.1), you can ßag the employee
so the user receives a message if the time record entered exceeds the
parameters deÞned on the Pay Edits tab.

Related Reports and Inquiries

To Use
List employees Employee Listing (HR211)
List pay plans Pay Plan Listing (PR221)
List step and grade schedules Step and Grade Schedule Listing
(PR216)

216 Chapter 11 Employee: Pay Payroll User Guide

Chapter 12

Employee: Taxes

This chapter describes how to assign employee taxes within the Lawson
Payroll application.

STOP Before you assign taxes to an employee, you must set up the tax
structure and create the appropriate tax deductions. For more information,
see "Setting Up Tax Structure" on page 75. For more information, see
"DeÞning Tax Deduction Codes" on page 104.

Payroll User Guide Chapter 12 Employee: Taxes 217

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"U.S. Procedures in
this Chapter" on page • "What is BSI TaxLocator?" on page 218
221"Canada Procedures • "How Do I View and Modify Employee Tax Deductions?" on page 220
in this Chapter" on page
228

What is BSI TaxLocator?

BSI TaxLocator is a feature of BSI TaxFactory that automatically identiÞes the
correct federal and state withholdings, state unemployment insurance, and
local and school district taxes for United States employees. This feature is
only available for U.S. employees. TaxLocator eliminates the need to create
codes for U.S. tax deductions.

How are Tax Deductions Set Up for United States

Employees?
NOTE Adjustments to Under four circumstances, TaxLocator will attach or change tax deductions for
pay do NOT cause employees:
TaxLocator to change
tax deductions. • When you add a U.S. employee
• When you change the address or work location on a U.S. employee record
• When you change the address of a work location attached to U.S.
employees
• When you enter a time record with a work location different from the one
on the employee record for a U.S. employee

Which Employees does TaxLocator apply to?

TaxLocator applies to an employee when:
• Employee Work Country is U.S.
• Employee Pay Status is PB or PN
• The company is assigned a BSI company

How does TaxLocator Know which Tax Deductions

to Attach to an Employee?
TaxLocator uses the home address and location (work address) from the
employee record to determine which taxes to apply to an employee.
The home address tells TaxLocator where an employee lives (the Live State).
You select whether TaxLocator uses the home address or supplemental
address as the live address when you set up the Human Resources (HR)
company. You can only specify a county on the home address. Regardless
of how the company is set up, TaxLocator uses the county from the home
address to determine taxes.

218 Chapter 12 Employee: Taxes Payroll User Guide

 The location tells TaxLocator where an employee works (the Work State).

IMPORTANT Because the correct tax deductions for an employee are

determined by their home and work address, you must spell city names, state
names, and county names correctly for home and work addresses.

How does TaxLocator Know which Lawson

Deduction Codes to Use?
All applicable tax deduction codes must be established in Lawson before
TaxLocator will be able to attach the codes to the employee record. For more
information, see "Setting Up Deduction Structure" on page 89.
Payroll allows multiple identical iterations of deduction codes. A speciÞc
iteration of a code consists of:
• Tax authority
• Tax Category
• BSI Formula
A warning message will display to warn the user of the duplication. When
multiple iterations of a tax code exist and TaxLocator assigns deductions to
the employee, the Þrst deduction code found (alpha-numeric) is the code
assigned to the employee. If this is not the correct iteration of the code for the
employee, override the assignment on U.S. Tax Locations by disabling the
incorrect iteration of the code and setting up the correct one.
When the client has no legal requirement to withhold a tax for which
TaxLocator returns a “Þnd”, You will need to establish a “dummy” deduction
on Deduction. Allow TaxLocator to attach the dummy code to the employee
and then disable the deduction for the employee. When you do not disable
the deduction, you will continue to receive a TaxLocator message when the
tax jurisdiction is returned for an employee. The message informs you that
the deduction is not set up for the tax authority. Tax authorities from U.S. Tax
Authority should not be duplicated.
Triggers to call TaxLocator are as follows:
• Change to Employee Address Þelds (Addr1, Addr2, City, County, State,
Zip)
• Change of Location Code
• Removal of a Termination Date
• Change of Pay Status
• Change of Railroad Code
• Assignment to Work Country is U.S.
However, in performing Mass Actions, only a change to the Location code
calls TaxLocator.
Taxes returned by TaxLocator are those legally in effect as of the date the
transaction is processed (the system date) or are created with a start date
equal to the system date.
For this reason, you must make future dated changes to an employee’s
home address or location code using Personnel Actions, not directly on

Payroll User Guide Chapter 12 Employee: Taxes 219

 the Employee. Changes to the employee record on Employee that trigger
TaxLocator deductions that are ended by TaxLocator are ended with a date of
one day prior to the system date. TaxLocator will only add (not end) deductions
as a result of a different location code on the employee’s time record.

How Do I View and Modify Employee Tax Deductions?

Entering a time record for an employee with a different location invokes a
change in tax deductions that are assigned to the employee which can then
be viewed on U.S. Tax Locations by employee and location.
U.S. Tax Locations is used to:
• View the tax deductions attached to the employee record by TaxLocator
• Disable any tax deductions attached to the employee record by
TaxLocator

Examples of Tax Deduction Exceptions

You might need to make modiÞcations to TaxLocator deductions under the
following circumstances:
• Employees live in a state other than the state where they perform work
• The company is not licensed to do business in the employee’s resident
state and there is no requirement to withhold taxes for the resident state
• The company employs Foreign National employees not responsible for
U.S. taxation
• The organization employs clergy not responsible for F.I.C.A. deductions
For these examples, you can:
• Disable the resident state deductions on U.S. Tax Locations, so no
taxable wages accumulate for disabled taxes
• Enable any tax deductions that you manually disabled
• Attach other tax deductions to the employee and location not identiÞed by
TaxLocator

220 Chapter 12 Employee: Taxes Payroll User Guide

U.S. Procedures in this Chapter
The following procedures provide explain how to view and modify tax
deductions for U.S. employees.
• "Setting Up TaxLocator for Employees" on page 221
• "Maintaining Employee Tax Information for Tax Deductions" on page
222
• "Viewing and Modifying Employee TaxLocator Deductions" on page
225
• "Correcting United States Tax Deduction Errors" on page 226

Setting Up TaxLocator for Employees

Use Employee (HR11.1) to access and deÞne the location code, add
employees, change the employee address or location, or add time records
with locations different from the HR11.1 location.

STOP For TaxLocator to correctly determine which local taxes (county,

city, school district, or other) are applicable, you must enter all employee
address information on Employee (HR11.1), and spell city names completely
and correctly.

Need More Details? Check out the following concepts:

• "What is a Deduction Balance Type?" on page 236
• "What is BSI? (U.S. and C.A.)" on page 76

STEPS To set up TaxLocator for employees

1. Access HR Codes (HR04.9) through the HR Codes button on HR Code
Setup (HR04.1). Specify the Type as LO for Location.
– or –
Access HR Codes (HR04.9) through Employee (HR11.1) by selecting the
Assignment tab, Location Þeld, and choosing the DeÞne form action.
NOTE The more 2. Complete the Address Tab. All Þelds on this tab are required, except the
complete the information secondary street address Þelds (Address 2, Address 3, Address 4).
you enter on the Address
tab, the more accurate 3. Complete the required County and Country Þelds.
the establishment of 4. Access Employee (HR11.1).
taxes based on work
location.

Payroll User Guide Chapter 12 Employee: Taxes 221

NOTE When you add 5. When adding a new employee, you can leave the Work Country Þeld
a new employee or blank, to allow the correct work country to default from Process Level.
change data for an
employee, the result 6. Select the Address Tab.
may cause TaxLocator 7. Complete the Home Þelds with the employee information. The
to invoke a new set of
taxes for the employee. Supplemental Þelds are used for labels generated by Post OfÞce Mailing
Employee United States List (PA325) in the Lawson Personnel Administration application. If no
Taxes (PR13.2) appears supplemental address is entered, the employee’s address from the Home
with the new deductions Þelds defaults.
that TaxLocator will
apply to the employee. 8. Select the Assignment tab.
You can modify the 9. In the Work Country Þeld, select a work country for the employee. The
deductions through
PR13.2. work country you select must be the same as the Work County on
Process Level (HR01.1). This Þeld represents the payroll taxing country
for the employee. The Work Country Þeld can be different from the
employee’s address country.
10. Select the Tax tab and United States tab.
11. Complete the appropriate Þelds.
12. In the Railroad Code Þeld, select a value representing whether the
employee is a railroad employee. The BSI TaxLocator uses the railroad
code to determine tax jurisdictions for the employee.

IMPORTANT Payroll creates tax deductions with an Employee Deduction

(PR14.1) effective date equal to the system date, regardless of the
effective date used to add an employee, or enter a change on Employee
(HR11.1). For this reason, you must make future address or location
changes to the HR11.1 using personnel actions, not directly on HR11.1.
If these types of changes are made directly on HR11.1, the change
takes effect immediately and can result in incorrect taxes taken for the
employee.

Maintaining Employee Tax Information for Tax Deductions

Use Employee U.S.Taxes (PR13.1) to maintain employee tax information for
tax deductions and government reporting information. The employee tax
information is initially deÞned in the Tax tab of Employee (HR11.1).

STOP Before assigning taxes, use Employee (HR11.1) to add employees,

change employee addresses or work locations, or add time records with
locations different from the HR11.1 location.

222 Chapter 12 Employee: Taxes Payroll User Guide

 Need More Details? Check out the following concepts:
• "What is BSI? (U.S. and C.A.)" on page 76
• "What is a Deduction Balance Type?" on page 236
• "How Do I View and Modify Employee Tax Deductions?" on page
220

STEPS To maintain employee tax information for tax deductions

1. Access Employee U.S.Taxes (PR13.1).

Payroll User Guide Chapter 12 Employee: Taxes 223

NOTE The TaxLocator 2. Consider the following Þelds.
updates the Resident
and Work Þelds at the Workers Comp Select the workers’ compensation state for the
top of the form making
these display-only Þelds. State employee. Payroll uses this Þeld to compute
workers’ compensation premiums.
If you change the workers’ compensation state
on this form, Payroll changes the same state Þeld
on Employee (HR11.1).
EIC Status Select the value that indicates if the employee’s
EIC (Earned Income Credit) status is Single or
Joint.
BSI Group Code The BSI Group Code is a code deÞned in BSI
to provide an override tax formula for speciÞc
employees.
The BSI group code for the employee displays
on inquiry if the code is deÞned on the employee
record.
Ded Select a tax deduction.
Use the DeÞne form action on this Þeld to transfer
to Employee Deduction (PR14) to maintain a
deduction.
Res Select the value that determines if the employee
is a resident of the tax authority associated with
the deduction.
Mar Sts Select the value indicating the marital status
associated with the deduction.
Exemp Number Type the number of exemptions associated with
the deduction.
Payroll uses this information when calculating
taxes for certain tax authorities.
Exempt Amount Type the exempt amount associated with the
deduction. Payroll uses this information when
calculating taxes for certain tax authorities.
Tax Ex This Þeld allows you to ßag this employee as
exempt from withholding.
When this Þeld is ßagged Y (Yes), the employee
will not have this tax withheld, but taxable wages
will still be calculated for the employee.

224 Chapter 12 Employee: Taxes Payroll User Guide

Viewing and Modifying Employee TaxLocator Deductions
Use United States Tax Locations (PR13.7) to view tax deductions created by
BSI TaxLocator, to disable any of the TaxLocator deductions that do not apply
to the employee, to enable TaxLocator deductions previously disabled, and to
assign tax deductions to an employee not assigned by TaxLocator.
When you enter a time record for an employee with a different location
invoking a change in tax deductions assigned to the employee, you can view
these changes on PR13.7 by employee and location.

STOP You must have employee tax deductions deÞned on Deduction

(PR05.1) and then add employees on Employee (HR11.1) before you can use
this form. For more information, see "Setting Up Deduction Structure" on
page 89. For more information, see "Assigning Employee Pay" on page 214.

Need More Details? Check out the following concepts:

• "What is a Deduction Balance Type?" on page 236
• "How Do I View and Modify Employee Tax Deductions?" on page
220

STEPS To view and modify employee TaxLocator deductions

TIP If you override 1. To access United States Tax Locations (PR13.7), choose the Tax
the location on a Locations button on Employee U.S.Taxes (PR13.1).
time record, the new
location changes the tax 2. Select a Company and Location in the appropriate Þelds.
deductions assigned to 3. In the Location Þeld, select the location you want to view or modify for this
the employee. You can
view these changes on employee’s tax deductions.
PR13.7. 4. Choose the TaxLocator Deductions tab.
5. Select the FC Ded Description to Disable (D) or Enable (E) the deduction.
Selecting Disable tells BSI TaxLocator not to take the deduction. Selecting
Enable tells BSI TaxLocator to take a deduction that was previously
marked as disabled.
6. Select the User Tax Deductions tab to attach additional tax deductions
to the employee.

Payroll User Guide Chapter 12 Employee: Taxes 225

Correcting United States Tax Deduction Errors
On U.S.Tax Deduction Errors (PR13.8) you can view:
• TaxFactory errors for a speciÞc employee on the Messages tab
• Messages telling you to use BSI TaxFactory to view errors
• Tax deduction changes for the employee by locations entered on time
records (which override the employee record location)
• Tax deduction changes that occurred due to a TaxLocator update
You can also use this form to update TaxLocator after you have performed
maintenance to Þx the errors displayed on this screen.

IMPORTANT This form shows the most recent changes made to the
employee–it does not show a history of all changes.

STOP For information to display on this form, you must have employees
with Tax Factory errors or changes.

Need More Details? Check out the following concepts:

• "What is a Deduction Balance Type?" on page 236
• "How Do I View and Modify Employee Tax Deductions?" on page
220

STEPS To correct United States tax deduction errors

NOTE The location Þeld 1. Access U.S.Tax Deduction Errors (PR13.8).
at the top of the screen
displays the employee 2. Consider the following options.
record location. The
location Þelds on the If Then
Location Changes tab
display locations from You perform maintenance to the Messages tab states whether
time records. correct errors and then inquire on or not an update is needed.
this screen
Also, the error messages for the
corrected errors no longer appear.
The Messages tab does not you must perform further
indicate an update is needed maintenance to correct the
errors.
The error messages still display you must perform further
maintenance to correct the
errors.

226 Chapter 12 Employee: Taxes Payroll User Guide

NOTE Some error 3. Complete the required Company and Employee Þelds.
messages might ßag
the user to look at 4. View errors for deductions created by TaxLocator for a speciÞc employee
BSI error messages. on this form. Consider the following tabs.
Once tax errors are
resolved and the update Message displays tax messages. Once the error is
is performed, the errors
resolved, use the Special Action Icon to update
no longer display on the
Messages tab. the employee record, or run United States Tax
Deduction Update (PR113) to update more than
one employee when a change is made.
Location Changes displays the tax deduction changes by location.
Deduction displays the deduction changes that occurred
Changes due to the TaxLocator update.

5. Perform maintenance to correct errors.

IMPORTANT You must modify Time Record interface forms because the
tax group Þeld has been replaced with the location Þeld on time records.

6. Update tax deductions using this form or U.S.Tax Deduction Update

(PR113) to update TaxLocator deductions for more than one employee.

IMPORTANT When you make changes to business locations, Lawson

recommends that you establish a new location code and use Mass Action
(use future effective date) to update the new location code to applicable
employees when a business location moves. The call to TaxLocator
and the subsequent creation of a new “set” of taxes for employees is
automatic. There is no need to run U.S.Tax Deduction Update (PR113).
If the address parameters are changed on the old location code, you
must run PR113.

Payroll User Guide Chapter 12 Employee: Taxes 227

Canada Procedures in this Chapter
The following procedures explain how to assign tax information for Canada
employees.
• "Assigning Tax Deductions Manually to Existing Employees" on page
228
• "Assigning Required Tax Deductions to Existing Employees" on page
230
• "Assigning Tax Deductions to Newly Hired Employees" on page 231
• "Viewing and Modifying Canada Employee Tax Deductions" on page
231

Assigning Tax Deductions Manually to Existing Employees

Deductions can be assigned for new and existing employees. Use Employee
Deduction (PR14.1) to assign a deduction manually or directly to an existing
employee, and to maintain all deductions except beneÞt deductions applying
to a speciÞc employee. Use Deduction Speed Entry (PR15.1) to assign
deductions for multiple employees.
For Canada employees, you must assign employee tax deductions. Many
organizations use required deductions to assign tax deductions to employees,
but you can also assign them to one employee at a time. For more information,
see "Assigning Required Tax Deductions to Existing Employees" on page 230.

STOP Before assigning deductions, the deductions must Þrst be deÞned

on Deduction (PR05.1). For more information, see "Setting Up Deduction
Structure" on page 89.

Need More Details? Check out the following concepts:

• "What is a Deduction Code?" on page 91

STEPS To assign tax deductions manually to existing employees

TIP Use Deduction 1. Access Employee Deduction (PR14.1).
Speed Entry (PR15.1)
to add one deduction 2. Consider the following Þelds.
to multiple employee
records, or to make Amount – or – Type the amount or percent to deduct from this
changes to deduction Percent employee’s earnings.
parameters for one
deduction for multiple If you leave this Þeld blank, the value in the
employees. Amount -or- Percent Þeld in Deduction (PR05.1)
defaults.
Addl or Minimum Use this Þeld to specify the additional amount or
Amt % percent to consider when the Calculation Type
is Flat Amount Plus Percent of Gross Pay or
Percent of Disposable W/Min Flat Amount.

228 Chapter 12 Employee: Taxes Payroll User Guide

 Balance Type Select a balance type for the deduction.
If you select Descending, the amount in the
Balance Amount Þeld decreases by the amount
or percent in the Amount or Percent Þeld until
it reaches zero and Payroll no longer takes the
deduction.
Balance Amount If you select a value of Descending or Limit in
the Balance Type Þeld, type the balance amount.
When Payroll takes the deduction, the balance
amount updates according to the balance type
selected for the deduction.
If this deduction is a 403b deduction, you can
select Limit in the Balance Type Þeld and enter
an amount in this Þeld to override the BSI limit on
403b deductions.
Priority Type a value of 1–9 (1 being the highest), to
determine the priority in which Payroll processes
the deduction.
If you leave this Þeld blank, the priority deÞned for
the selected deduction defaults from Deduction
(PR05.1).
The priority you deÞne for an employee in
this form overrides the priority deÞned for the
deduction on PR05.1. Therefore, changes you
make to the Priority Þeld on PR05.1 do not affect
the priority you deÞne in this form for an individual
employee.
Arrears Select the value that indicates if the deduction
is placed in arrears if net pay is insufÞcient to
support the deduction.
If you do not select a value in this Þeld, the
value deÞned for the Arrears Þeld in Deduction
(PR05.1) defaults for the selected deduction.
Deduction Cycles Select a value indicating whether you want
Payroll to take the deduction in cycles 1–9 for the
selected employee.
If you do not deÞne deduction cycles for the
selected employee and deduction in this form,
the deduction cycles deÞned for the deduction in
Deduction (PR05.1) default.

Payroll User Guide Chapter 12 Employee: Taxes 229

 Begin Date and Type the date the employee’s deduction begins.
End Date
Type an end date to stop the employee’s normal
cycle deductions and one-time deductions.
If you leave this Þeld blank, the begin date
deÞned in Deduction (PR05.1) for the selected
deduction defaults.
Monthly Limit Type an amount that is the limit that can be taken
in a single month for this deduction.
If you do not deÞne a monthly limit for the
selected employee and deduction, the monthly
limit amount deÞned in Deduction (PR05.1) for
the selected deduction defaults.
Payment Limit Type an amount that is the limit that can be taken
on a single payment for this deduction.
If you do not type an amount in this Þeld, the
payment limit deÞned in Deduction (PR05.1) for
the selected deduction defaults.

Assigning Required Tax Deductions to Existing Employees

For an existing employee, use Employee (HR11.1), Employee Taxes
(PR13.1), or Required Employee Deduction Dates (PR13.5) to attach required
deductions. Use Deduction Listing (PR205) to attach deductions to multiple
employees.

STOP DeÞne deductions and new attached deduction required codes as

needed. For more information, see "Setting Up Deduction Structure" on
page 89.

Need More Details? Check out the following concepts:

• "What is a Required Deduction?" on page 100

STEPS To assign required tax deductions to existing employees

TIP Use Deduction 1. Access Employee (HR11.1), Employee Taxes (PR13.1), or Required
Listing (PR205) Employee Deduction Dates (PR13.5).
to assign required
deductions to multiple 2. Choose the ReqDedCreate special action.
employees. Use report
option 5 on PR205.

230 Chapter 12 Employee: Taxes Payroll User Guide

Assigning Tax Deductions to Newly Hired Employees
If deduction required codes are deÞned and attached to the appropriate
deductions, use Employee (HR11.1) and Employee Canada Taxes (PR13.6)
to assign tax deductions to newly hired employees. Tax deductions are
automatically attached to the employee on the addition of a new hire.

STOP When you add a new employee, you deÞne employee new hire
data through Employee (HR11.1). Deduction required codes must be deÞned
and attached to the appropriate Canadian deductions to use the required
deduction create feature. For more information, see "DeÞning Deduction
Codes" on page 103.

Need More Details? Check out the following concepts:

• "What is a Required Deduction?" on page 100

STEPS To assign tax deductions to newly hired employees

1. Access Employee (HR11.1).
2. DeÞne all new hire data.
3. DeÞne the tax information on the Canada tab of the Tax tab.
4. Choose Add to display Employee Canada Taxes (PR13.6).
NOTE You can 5. Complete Employee Canada Taxes (PR13.6) to add tax deÞnitions for
access Employee the new employee.
Canada Taxes
(PR13.6) only when an
employee is added to
Employee (HR11.1).
Make changes to
existing employee
tax information on
Employee Canada
Taxes (PR13.5).

Viewing and Modifying Canada Employee Tax Deductions

Use Employee Canada Taxes (PR13.5) to maintain Canada employee tax
information for tax deductions, as well as government reporting information.
If information on the employee record changed, use the required deduction
create action on PR13.5 to modify or change tax deductions for employees.
For more information, see "Assigning Required Tax Deductions to Existing
Employees" on page 230.
The Canada employee tax information is initially deÞned in the Tax form tab
on Employee (HR11.1).

Need More Details? Check out the following concepts:

• "What is a Required Deduction?" on page 100

Payroll User Guide Chapter 12 Employee: Taxes 231

 STOP You must deÞne your tax deductions before you can assign them to
an employee on this form. For more information, see "Setting Up Deduction
Structure" on page 89.

STEPS To view and modify Canada employee tax deductions

1. Access Employee Canada Taxes (PR13.5).
TIP Any changes you 2. Select a Company, Employee, and Deduction to add a deduction.
make on this form Consider the following Þelds.
might change the way
the Payroll calculates
tax deductions for the IMPORTANT If you change the tax province, workers’ compensation
employee. province, business number code province, or Quebec Ent Number Group
on this form, the province or group changes on Employee (HR11.1).
Conversely, any changes to these Þelds on HR11.1 are reßected on
Employee Canada Taxes (PR13.5).

Tax Province Select the tax province you want to use for
employee taxes.
WC Province Select the workers’ compensation province you
want to use for employee taxes.
Business Number Select the business number code used to
Group calculate taxes for this employee.
The business number code must exist on Canada
Business Numbers (HR00.2) before you can
enter it on this form.
Quebec Ent Select the Quebec enterprise number group used
Number Group to calculate taxes for this employee.
The Quebec enterprise number group must exist
on Quebec Enterprise Numbers (HR00.3) before
you can enter it on this form.
Estimated If the employee is paid by regular commission,
Remuneration type the total estimated annual earnings
submitted by the employee.
You should update this Þeld and the Estimated
Expenses Þeld annually for employees who are
paid commissions.
Using the TD1 form, the employee supplies the
employer with the data to complete this and the
Estimated Expenses Þeld.
Estimated If the employee is paid by regular commissions,
Expenses type the total estimated annual expenses
submitted by the employee.

232 Chapter 12 Employee: Taxes Payroll User Guide

 Res Select the option indicating what type of resident
the employee is in the tax authority associated
with this deduction. If you do not make a selection
in this Þeld, the Þeld defaults to Resident.
You can select:
Y-Resident
1-Nonresident Receiving Pension
2-Nonresident Continuous Employment
3-Nonresident Noncontinuous Employment
Net Claim Amt Type the net claim amount for this deduction from
the Personal Tax Credits Return form TD1.
The value for this Þeld comes from the total of all
personal tax credit amounts from sections 1 to 14
of the Personal Tax Credits Return form TD1.
Additional Tax Type a dollar amount to take in addition to the
Amount amount calculated for this deduction.
Replacement Type the percent you want to use to replace the
Percent amount Payroll calculates for this deduction.
Tax Ex Select whether the employee is exempt for taxes
deducted using this deduction.
If you select Yes, the Payroll does not take taxes
using this deduction, but it does track taxable
wages.
This is most often used by students making less
than the net claim amount.
Additional Select values to provide additional information.
Information,
Provincial,
Inßation Adjust,
Dates Tab

Payroll User Guide Chapter 12 Employee: Taxes 233

234 Chapter 12 Employee: Taxes Payroll User Guide
Chapter 13

Employee: Deductions

This chapter covers how to assign employee deductions within the Lawson
Payroll application.

STOP Before you assign deductions to employees, you must set up

the deduction structure. For more information, see "Setting Up Deduction
Structure" on page 89.

Payroll User Guide Chapter 13 Employee: Deductions 235

Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 237 • "What is a Deduction Balance Type?" on page 236

What is a Deduction Balance Type?

A deduction balance type determines how a deduction is taken for a speciÞc
employee. An employee deduction can have one of three balance types:
• Ascending—the life-to-date contribution of the deduction. Life-to-date
contribution is the accumulation of all year-to-date amounts taken by the
deduction since the deduction started.
• Descending—the balance amount decreases by an amount or percent
until it reaches zero, at which time Payroll no longer takes the deduction.
NOTE If you allow • Limit—Payroll takes an amount or percent until the year-to-date equals
employees to exceed the balance amount at which time Payroll no longer takes the deduction.
the Federal 403b
contribution limit,
deÞne 403b DeÞned Example
Contribution Plan
deductions with a limit Jan Brown, at Two Rivers Company, has decided to contribute to United Way
balance type. this year. She informed the payroll ofÞce that she would like to contribute 5.00
on a pay period basis, up to a maximum of 100.00 for the year. The deduction
was established as a Descending type employee deduction with 5.00 entered
in the amount Þeld and 100.00 entered in the Balance Amount Þeld.

236 Chapter 13 Employee: Deductions Payroll User Guide

Procedures in this Chapter
The following procedures explain how to assign employee deductions.
• "Assigning Required Deductions" on page 237
• "Assigning Deductions" on page 239

Assigning Required Deductions

In Payroll, you can identify deductions as required deductions. You can
assign these required deductions for existing employees on Employee
(HR11.1), Employee Deduction (PR14.1), or Employee Deduction Speed
Entry (PR15.2).
When you add an employee on Employee (HR11.1), the application creates
all required deductions for which the employee meets the deÞned parameters.

Need More Details? Check out the following concepts:

• "What is a Required Deduction?" on page 100

Payroll User Guide Chapter 13 Employee: Deductions 237

 STOP Before you assign required deductions, you must attach required
deduction codes to Deduction (PR05.1) and correctly deÞne the required
deduction code on Deduction Required Code (PR03.1). U.S. tax deductions
are not assigned to the employee using required deduction codes. Assign
U.S. tax deductions through BSI TaxLocator based on the employee’s work
location and resident address. For more information, see "How Do I View and
Modify Employee Tax Deductions?" on page 220. Canada tax deductions can
be assigned to the employee using required deduction codes.

STEPS To assign required deductions using the Human

Resources application
1. Access Employee (HR11.1).
2. Select the Company and Employee in the appropriate Þelds.
3. Choose the Inquire form action.
4. Choose the ReqDeductCreate form action.
5. Verify the Effective Date.

STEPS To assign required deductions using Payroll and

Employee Deduction (PR14.1)
1. Access Employee Deduction (PR14.1).
2. Select the Company and Employee in the appropriate Þelds.
3. Choose the ReqDeductCreate form action, which will open Required
Employee Deduction Dates (PR13.3).
4. Type the dates you want the application to stop and start taking required
deductions for the selected employee.

STEPS To assign required deductions using Payroll and

Employee Deduction Speed Entry (PR15.2)
1. Access Employee Deduction Speed Entry (PR 15.2).
2. Select the Company and Employee in the appropriate Þelds.
3. Choose the Inquire form action.
4. Choose the ReqDeductCreate form action.

Options for Assigning Required Deductions

The following options are available for assigning required deductions.
If you use the Lawson Personnel Administration application, you can use
Individual Action (PA52.1), Hire an Applicant (PA52.4), or Position, Job Action
(PA52.5) to create all required deductions for which the employee meets the
deÞned parameters.

238 Chapter 13 Employee: Deductions Payroll User Guide

 Related Reports and Inquiries
To Use
Create required deductions for all Deduction Listing (PR205)
employees
Create required deductions using Employee Conversion (HR511)
the employee conversion program

Assigning Deductions
You must assign the appropriate deduction to an employee for the deduction
to be taken from employee pay.
You can assign a deduction to an employee:
• Manually. See procedures below.
• Through an employee garnishment. For more information, see "Assigning
United States Employee Garnishments" on page 246. for United States
Employees, or "Assigning Canada Employee Garnishments" on page
253 for Canada employees.
• Through an attachment of earnings.
• Through required deductions. For more information, see "Assigning
Required Deductions" on page 237.
• Through BeneÞts enrollment. For more information, see the BeneÞts
Administration User Guide.
• Through TaxLocator. For more information, see "Setting Up TaxLocator
for Employees" on page 221.
Manual deductions such as charitable donations and employee loan
deductions can be assigned through Employee Deduction (PR14.1),
Deduction Speed Entry (PR15.1), or Employee Deduction Speed Entry
(PR15.2).

STOP Before you assign the deductions, you must deÞned deductions
on Deductions (PR05.1). For more information, see "Setting Up Deduction
Structure" on page 89.

STEPS To assign employee deductions

TIP You can 1. Access Employee Deduction (PR14.1).
automatically add
deductions to an 2. In the Balance Type Þeld, deÞne balance types as limit, descending, or
employee record using ascending, if applicable.
required deduction 3. In the Deduction Cycle Þelds, for tax deductions only, select the T option
codes.
(Ded not taken but taxable wages updated) if an employee is Þling for
exempt status from federal or state taxes.

Payroll User Guide Chapter 13 Employee: Deductions 239

 Nine Deduction Cycles Þelds allow you to specify the cycles. Choosing
different deduction cycles for the employee overrides deductions
defaulting from Deduction (PR05.1).
4. In the End Date Þeld, enter a stop date if you need to discontinue an
employee deduction. Maintain beneÞt or garnishment deductions through
the BeneÞt and Garnishment applications.

IMPORTANT Parameters deÞned for the deduction in Deduction

(PR05.1) default if any of the following Þelds are left blank: Amount
or Percent, Priority, Arrears, Deduction Cycles, Begin Date, End Date,
Monthly Limit, and Payment Limit. For more information, see "DeÞning
Deduction Codes" on page 103.

Options for Assigning Employee Deductions

The following options are available for assigning employee deductions.
If you want to Access
Assign multiple employee Deduction Speed Entry (PR15.1).
deductions
Choose the Inquire form action
to display all employees who are
assigned a speciÞc deduction.
Assign individual employee Employee Deduction Speed Entry
deductions (PR15.2).
Use form action Inquire to display all
deductions for an employee.
NOTE Garnishments, Use Employee Garnishment (PR26.1) to assign garnishment deductions
taxes, and one-time to an employee. Garnishment deductions are identiÞed by selecting Yes in
deductions are not the Garnishment Þeld of Deduction (PR05.1). For more information, see
described in this chapter.
"Assigning United States Employee Garnishments" on page 246. For more
information, see "Assigning Canada Employee Garnishments" on page 253.
For more information, see "Assigning Tax Deductions Manually to Existing
Employees" on page 228. This form is applicable for Canada Tax Deductions
only.
For more information, see "Maintaining One-Time Deductions" on page 289.

Related Reports and Inquiries

To Use
List employees and their assigned Employee Deduction Listing (PR214)
deductions
List the changes made to employee Deduction Audit Report (PR280)
deduction records

240 Chapter 13 Employee: Deductions Payroll User Guide

Chapter 14

Employee: Workers’ Comp State

This chapter covers how to assign a workers’ compensation state or province

within the Lawson Payroll application.

STOP Before assigning workers’ compensation state or province to

employees, you must deÞne workers’ compensation deductions, set up
workers’ compensation, and assign workers’ compensation classes to job
codes. For more information, see the Human Resources User Guide For
more information, see "Setting Up Workers’ Compensation" on page 141.

Payroll User Guide Chapter 14 Employee: Workers’ Comp 241

State
Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedure in this chapter.
"Procedures in this
Chapter" on page 243 • "How does Payroll Use the Workers’ Compensation State or
Province?" on page 242

How does Payroll Use the Workers’ Compensation State or

Province?
Payroll uses the workers’ compensation information on Employee to calculate
workers’ compensation premiums for United States and Canada employees.
Premiums vary by state and province and are calculated in the application
according to the type of work performed and the location (state or province)
where the work is performed. A single industry code is usually assigned to
a Canadian company. Canadian workers’ compensation is based on this
industry code.
For U. S. employees, choose the workers’ compensation state on the United
States tab of the Tax tab on Employee. If the workers’ compensation state
on the United States tab is left blank, information defaults from the work
location state.
For Canada employees, choose the workers’ compensation province on the
Canada tab of the Tax tab on Employee. If you leave workers’ compensation
province blank on the Canada tab, the resident province defaults.
At time record entry, you can override the workers’ compensation state or
province.

242 Chapter 14 Employee: Workers’ Comp State Payroll User Guide

Procedures in this Chapter
The following procedure explains how to assign workers’ compensation.
• "Assigning Workers’ Compensation" on page 243

Assigning Workers’ Compensation

Payroll uses the workers compensation information selected on the Tax tab
of Employee (HR11.1) and the job code assigned to the employee on the
Assignment tab, to calculate workers’ compensation premiums for both United
States and Canada employees.

Need More Details? Check out the following concepts:

• "How does Payroll Use the Workers’ Compensation State or
Province?" on page 242

STEPS To assign workers’ compensation for United States

employees
1. Access Employee (HR11.1).
2. Choose the Tax tab.
3. For United States employees, choose the United States tab on the Tax
tab.
TIP If the Workers 4. In the Workers Comp State Þeld, select the employee’s work state
Comp State Þeld is left abbreviation used for computing workers’ compensation premiums.
blank, the state defaults
from the Work Location 5. On the Assignment tab, enter the employee’s job code.
State. You can override
the state at time record
entry.

STEPS To assign workers’ compensation for Canada employees

1. Access Employee (HR11.1).
2. Choose the Tax tab.
3. For Canada employees, choose the Canada tab on the Tax tab.
TIP If you do not 4. In the Workers Comp Province Þeld, select the province you want to use
make a selection in the for this employee’s workers’ compensation.
Workers Comp Province
Þeld, the employee’s 5. On the Assignment tab, enter the employee’s job code.
resident tax province
defaults. You can
override the province at Options for Assigning Workers’ Compensation
time record entry.
To assign workers compensation deductions to all employees automatically,
attach a required deduction code deÞned for all employees to the workers’
compensation deduction code. For more information, see "Assigning
Required Deductions" on page 237.

Payroll User Guide Chapter 14 Employee: Workers’ Comp 243

State
244 Chapter 14 Employee: Workers’ Comp State Payroll User Guide
Chapter 15

Employee: Garnishments

This chapter describes how to assign court-ordered garnishments to

employees. You must assign garnishments to employees for the garnishment
amount to be deducted from employee pay.

STOP Before you assign garnishments to employees, you must set up

garnishment rules. For more information, see "Setting Up Garnishments"
on page 155.

Payroll User Guide Chapter 15 Employee: Garnishments 245

Procedures in this Chapter
The following procedures explain how to assign employee garnishments for
U.S. and Canada employees.
• "Assigning United States Employee Garnishments" on page 246
• "Assigning Canada Employee Garnishments" on page 253

Assigning United States Employee Garnishments

For wages to be garnished, you must assign garnishments to the appropriate
employees. You must deÞne the garnishment and the deduction used for the
garnishment. In addition, you can override deduction setup and garnishment
rules for the speciÞc garnishment.

IMPORTANT Once you add an employee garnishment, you cannot change

the deduction code. If you have not processed the garnishment through a
payroll cycle, you can delete the employee garnishment record and then
re-add it. If you have processed the garnishment and you need to change the
employee garnishment, you must create a new employee garnishment.

STOP Before you assign garnishments to employees, you must load

federal garnishment rules and deÞne any needed U.S. state garnishment
rules. For more information, see "Loading U.S. Federal Garnishment Rules"
on page 171. For more information, see "DeÞning U.S. Garnishment Rules"
on page 172. You also must deÞne the deductions you want to use for
garnishments. For more information, see "DeÞning US and CA Garnishment
Deduction Codes" on page 122.

246 Chapter 15 Employee: Garnishments Payroll User Guide

 Need More Details? Check out the following concepts:
• "What are Garnishments?" on page 156
• "What are Garnishment Types?" on page 157
• "What are Garnishment Rules?" on page 158
• "What are Garnishment Formulas?" on page 159
• "What Kinds of Employee Wages does Payroll use for
Garnishments?" on page 160
• "How does Payroll Process Multiple Garnishments when there
are Limited Employee Wages?" on page 161
• "What are Garnishment Priorities?" on page 163
• "What are the U.S. Federal Limitations to Garnishments?" on
page 164
• "How does Payroll decide which Garnishment Rule to Use for
each Garnishment?" on page 164
• "How does Payroll Calculate the Amounts of Garnishments?" on
page 166
• "What is Arrears?" on page 97

Payroll User Guide Chapter 15 Employee: Garnishments 247

 Figure 19. Procedure ßow: Assigning United States Employee Garnishments

1
Access United
States Employee
Garnishment
(PR26.1)

2
Select the
employee you
want to assign the
garnishment to

3
Define the
garnishment
information

4
- Conditional -
Define
garnishment
deduction

5
Define when
Payroll takes the
garnishment

6
- Conditional -
Define arrears
deduction
7
- Optional -
Override
garnishment fees
8
- Conditional -
Define family
information

9
- Conditional -
Define IRS levy
information
10
- Optional -
Override
disposable income

11
- Optional -
Override
garnishment
formula

248 Chapter 15 Employee: Garnishments Payroll User Guide

 STEPS To assign United States employee garnishments
1. Access United States Employee Garnishment (PR26.1).
2. Select the employee to which you want to assign a garnishment in the
Employee Þeld.
3. DeÞne information for the garnishment. Consider the following Þelds.

Case Number You must type the case number for this
garnishment. Each garnishment has a unique
case number. In child support cases, for
example, the case number might be a Social
Security number.
FIPS Code Type the Federal Information Processing
Standards code.
The FIPS code is required for electronic
processing of garnishments and court-ordered
payments in some states. This code prints on
Garnishment History Report (PR277) and United
States Employee Garnishment Listing (PR226),
as well as on the Accounts Payable pay stub
created by the Accounts Payable system, and is
used for reference only.
File Number Type the Þle number (if any) for the garnishment.
File numbers are used to distinguish separate
garnishment orders under the same case
number. For example, case number 123 might
have Þle number 1 for child support and Þle
number 2 for spousal support.
Description You must type a description of the garnishment.
This description prints on garnishment reports.
Governing Tax Select the tax authority (state, county, or other
Authority locality) governing the case.

NOTE The Governing tax authority and the Type

determine which garnishment rule Payroll uses
to calculate this garnishment. The Governing
tax authority can be deÞned for use with
garnishments only.

Payroll User Guide Chapter 15 Employee: Garnishments 249

 Type Select the garnishment type determining which
rules apply to this garnishment.

NOTE The Governing tax authority and the Type

determine which garnishment rule Payroll uses to
calculate this garnishment.

4. If this garnishment is not a court identiÞed arrears garnishment you must

deÞne the deduction used for the garnishment on the Garnishment tab.
Consider the following Þelds on the Garnishment tab.

Deduction Select the deduction code for the system to use

in withholding the garnishment amount.

TIP You can use Garnishment deduction codes

on multiple garnishments. The system creates
separate Employee Deduction (PR14.1) records
with different sequence numbers.

Amount – or – If you want to override the amount or percent

Percent deÞned for the garnishment, type the amount or
percent to deduct from the employee’s earnings
for this garnishment.

NOTE The calculation type deÞned for the

deduction determines whether the value is an
amount or a percent.

Addl or Minimum Use this Þeld to override the additional amount to

Amt, Pct deÞne for the deduction.
(Additional or
Minimum Amount
or Percent)
If you select calculation type 7, type the
pay period amount that is excluded from the
garnishment calculation.
Monthly Limit If you want to override the monthly amount for the
deduction, type the maximum amount that can be
taken for the garnishment in a single month.
Original Balance For garnishments that are for a total amount to be
paid in installments, type the beginning balance.
Balance Type If you want to override the balance type deÞned
for the deduction, select the balance type.

250 Chapter 15 Employee: Garnishments Payroll User Guide

 Balance Amount If you want to override the balance amount
deÞned for the deduction, type the balance
amount.

5. DeÞne when Payroll takes the garnishment. Consider the following Þelds.

Sub-priority You must select a sub-priority that applies to the

garnishment, arrears, and fees deÞned on this
form.
Effective Date You must type a beginning effective date that
applies to the garnishment, arrears, and fees
deÞned on this form.
Deduction Cycles If you want to override the deduction cycles for
the garnishment, arrears, and fees, select the
cycles.
TIP You can set up 6. If a court has indicated there are arrears for this garnishment, you must
both a garnishment and deÞne the arrears on the Arrears tab. Consider the following Þelds.
an arrears deduction for
the garnishment, but the
deduction codes cannot Deduction Select the deduction code that the system should
be the same. use in withholding the arrears amount.
Amount – or – If you want to override the amount or percent
Percent deÞned for the arrears, type the amount or
percent to deduct from the employee’s earnings.

NOTE The calculation type deÞned for the

deduction determines whether the value is an
amount or a percent.

Addl or Minimum Use this Þeld to override the additional amount to

Amt, Pct deÞne for the deduction.
(Additional or
Minimum Amount
or Percent)
Monthly Limit If you want to override the monthly amount for
the deduction, type the maximum amount that
can be taken for the arrears in a single month.
Original Balance If you want to override the original balance for the
deduction, type the amount.
Balance Type If you want to override the balance type deÞned
for the deduction, select the balance type.
Balance Amount If you want to override the balance amount
deÞned for the deduction, type the balance
amount.
Over 12 Weeks If the court indicates that this arrears is over 12
weeks, select Yes.

Payroll User Guide Chapter 15 Employee: Garnishments 251

NOTE The deduction 7. If you need to override the fee deÞned on the garnishment rule, override
code that displays on the fees on the Fees tab.
the fees tab defaults
from the fees deduction 8. If this is a support order, you must deÞne the employee’s number of
code attached to dependents and family status on the Family tab.
the garnishment rule
on United States 9. If this is an IRS levy, you must deÞne additional employee tax information
Garnishment Rules on the IRS Levy tab.
(PR25.2). 10. If you want to override the disposable income deÞned on the garnishment
rules, select the pay or deductions to exclude from disposable income on
the Disposable Income tab.
11. If you need to override the formula deÞned on the garnishment rule,
override the formula on the Formula tab. If the formula is overridden, the
entire formula deÞnition must be entered. Consider the following Þelds.

Override Formula If you want to override the formula deÞned for the
garnishment rule, select a formula.
Rate If you want to override the rate deÞned for the
garnishment rule, type a rate.
Factor 1-4 If you want to override the wage formula factors
deÞned for the garnishment rule, type the factors.
Second Family, If you want to override the percentage to exclude
Yes from garnishments if an employee has a second
family, type the percentage.
Second Family, If you want to override the percentage to exclude
No from garnishments if an employee does not have
a second family, type the percentage.
Addl%, Arrears If you want to override the additional percentage
over 12 Weeks that should be taken if outstanding arrears are
over 12 weeks old, type the percentage.
Per Dependent If you want to override the amount or percent
per dependent that should be used in calculating
exempt earnings, type the amount or percent.
Calc Type If you typed a value in the Per Dependent Þeld,
select whether the value is an amount or percent.

252 Chapter 15 Employee: Garnishments Payroll User Guide

 Related Reports and Inquiries
To Use
Display an employee’s garnishments United States Employee
Garnishment Inquiry (PR26.2)
List garnishment setup information Employee Garnishment Listing
from United States Employee (PR226)
Garnishment (PR26.1)
Review how garnishments were Garnishment History Report (PR277)
calculated
Select Garn Audit Report in the
Report Option Þeld.
Garnishment History Report (PR277)
Review how garnishments
interacted with the Accounts Select Garn AP Report in the Report
Payable application. Option Þeld.
List employees for whom Garnishment History Report (PR277)
garnishments are set up, but
Select Garn Exception Report in the
no garnishment amount was
Report Option Þeld.
withheld for a speciÞc date range

Assigning Canada Employee Garnishments

For wages to be garnished you must assign garnishments to the appropriate
employees. You must deÞne the garnishment and the deduction used for the
garnishment. In addition, you can override deduction setup and garnishment
rules for the speciÞc garnishment.

IMPORTANT Once you add an employee garnishment, you cannot change

the deduction code. If you have not processed the garnishment through a
payroll cycle, you can delete the employee garnishment record and then
re-add the record. If you processed the garnishment and you need to change
the employee garnishment, you must create a new employee garnishment.

STOP Before you assign garnishments to employees, you must deÞne

Canada garnishment rules. For more information, see "DeÞning Canada
Garnishment Rules" on page 178. You also must deÞne the deductions you
want to use for garnishments. For more information, see "DeÞning US and
CA Garnishment Deduction Codes" on page 122.

Payroll User Guide Chapter 15 Employee: Garnishments 253

 Need More Details? Check out the following concepts:
• "What are Garnishments?" on page 156
• "What are Garnishment Types?" on page 157
• "What are Garnishment Rules?" on page 158
• "What are Garnishment Formulas?" on page 159
• "What Kinds of Employee Wages does Payroll use for
Garnishments?" on page 160
• "How does Payroll Process Multiple Garnishments when there
are Limited Employee Wages?" on page 161
• "What are Garnishment Priorities?" on page 163
• "How does Payroll decide which Garnishment Rule to Use for
each Garnishment?" on page 164
• "How does Payroll Calculate the Amounts of Garnishments?" on
page 166
• "What is Arrears?" on page 97

254 Chapter 15 Employee: Garnishments Payroll User Guide

 Figure 20. Procedure Flow: Assigning Canada employee garnishments

1
Access Canada
Employee
Garnishment
(PR47.1)

2
Select an
employee

3
Define the
garnishment
indentification

4
- Conditional -
Define
garnishment
deduction

5
- Conditional -
Define
garnishment court
fees

6
Define when
Payroll takes the
garnishment

7
- Optional -
Define
garnishment order
8
information
- Conditional -
Define arrears
deduction
9
- Optional -
Override employer
fees 10
- Conditional -
Define family
11 information
- Optional -
Override net
wages

12
- Optional -
Override
garnishment
formula

Payroll User Guide Chapter 15 Employee: Garnishments 255

 STEPS To assign Canada employee garnishments
1. Access Canada Employee Garnishment (PR47.1).
2. Select the employee you want to assign a garnishment to in the Employee
Þeld.
3. DeÞne the identiÞcation for the garnishment. Consider the following Þelds.

Case Number You must type the case number for this
garnishment. Each garnishment has its own case
number. In child support cases, for example,
the case number might be a Social Insurance
number.
File Number Type the Þle number (if any) for the garnishment.
File numbers are used to distinguish separate
garnishment orders under the same case number.
Description You must type a description of the garnishment.
This description prints on garnishment reports.
Governing Tax Select the governing tax authority.
Authority
NOTE The Governing Tax Authority and the Type
determine which garnishment rule Payroll uses to
calculate this garnishment.

Type Select the garnishment type determining which

rules apply to this garnishment.

NOTE The Governing tax authority and the Type

determine which garnishment rule Payroll uses to
calculate this garnishment.

4. If this garnishment is not a court-identiÞed arrears garnishment, you must

deÞne the deduction used for the garnishment on the Garnishment tab.
Consider the following Þelds.

Deduction Select the deduction code the system to use in

withholding the garnishment amount.
Amount – or – If you want to override the amount or percent
Percent deÞned for the garnishment, type the amount or
percent to deduct from the employee’s earnings
for this garnishment.

NOTE The calculation type deÞned for the

deduction determines whether the value is an
amount or a percent.

256 Chapter 15 Employee: Garnishments Payroll User Guide

 Addl or Minimum Use this Þeld to override the additional amount to
Amt, Pct deÞne for the deduction.
(Additional or
Minimum Amount
or Percent)
Monthly Limit If you want to override the monthly amount for the
deduction, type the maximum amount that can be
taken for the garnishment in a single month.
Original Balance For garnishments that are for a total amount to be
paid in installments, type the beginning balance.
Balance Type If you want to override the balance type deÞned
for the deduction, select the balance type.
Balance Amount If you want to override the balance amount
deÞned for the deduction, type the balance
amount.

5. If there is a court fee for this garnishment, deÞne the court fee on the
Garnishment tab. Consider the following Þelds.

Court Fee Type the amount of a court-ordered fee. The

amount you type in this Þeld is added to the
amount of the garnishment and remitted to the
court.

NOTE The court fee does not use a different

deduction code than the employee garnishment;
therefore, the amount withheld for court fees
posts to the same General Ledger account as the
garnishment deduction.

Court Calc Type Select the calculation you want to use for a court
fee.

6. DeÞne when Payroll takes the garnishment. Consider the following Þelds.

Sub-priority You must select a sub-priority that applies to the

garnishment, arrears, and fees deÞned on this
form.
Effective Date You must type a beginning effective date that
applies to the garnishment, arrears, and fees
deÞned on this form.

Payroll User Guide Chapter 15 Employee: Garnishments 257

 Deduction Cycles If you want to override the deduction cycles for
this garnishment, arrears, and fees, select the
cycles.

7. DeÞne garnishment order information on the Garnishment tab. Consider

the following Þelds.

Effective Date Type the effective date of the garnishment order.

Order
Tax Deductible Select whether this garnishment order is tax
Order deductible.

8. If a court has indicated there are arrears for this garnishment, you must
deÞne the arrears on the Arrears tab. Consider the following Þelds.

Deduction Select the deduction code that the system should

use in withholding the arrears amount.
Amount – or – If you want to override the amount or percent
Percent deÞned for the arrears, type the amount or
percent to deduct from the employee’s earnings.

NOTE The calculation type deÞned for the

deduction determines whether the value is an
amount or a percent.

Addl or Minimum Use this Þeld to override the additional amount to

Amt, Pct deÞne for the deduction.
(Additional or
Minimum Amount
or Percent)
Monthly Limit If you want to override the monthly amount for
the deduction, type the maximum amount that
can be taken for the arrears in a single month.
Original Balance If you want to override the original balance for the
deduction, type the amount.
Balance Type If you want to override the balance type deÞned
for the deduction, select the balance type.
Balance Amount If you want to override the balance amount
deÞned for the deduction, type the balance
amount.
Court Fee If there is a court-ordered fee associated with
the arrears, type the amount of a court-ordered
fee. The amount you type in this Þeld is added to
arrears and is remitted to the court.

258 Chapter 15 Employee: Garnishments Payroll User Guide

 Court Calc Type Select the calculation you want to use for a court
fee.

9. If you need to override the employer fees deÞned on the garnishment

rule, override the fees on the Employer Fees tab.
10. If this is a support order, deÞne family circumstances related to the
garnishment on the Family tab.
11. If you want to override the net wages deÞned on the garnishment rules,
override the wages on the Net Wages tab.
12. If you need to override the formula deÞned on the garnishment rule,
override the formula on the Formula tab.

If you want to Select

Override the entire formula Yes in the Custom Formula Þeld
deÞned for the garnishment rule and select the formula details in
on Canada Garnishment Rules the Þelds on the Formula tab.
(PR47.1)
IMPORTANT Selecting Yes in the
Custom Formula Þeld overrides all
the formula details deÞned on the
garnishment rule.

Override one or more (but not No in the Custom Formula Þeld

all) of the details deÞned for the and select one or more details in
garnishment rule on Canada the Þelds on the Formula tab.
Garnishment Rules (PR47.1)

Related Reports and Inquiries

To Use
Display an employee’s garnishments Canada Employee Garnishment
Inquiry (PR47.2)
List employee garnishment setup Canada Employee Garnishment
Listing (PR247)
Review how garnishments were Garnishment History Report (PR277)
calculated
Select Garn Audit Report in the
Report Option Þeld.

Review how garnishments have Garnishment History Report (PR277)

interacted with the Accounts Payable Select Garn AP Report in the Report
application Option Þeld.
List employees for whom Garnishment History Report (PR277)
garnishments are set up, but
Select Garn Exception Report in the
no garnishment amount was
Report Option Þeld.
withheld for a speciÞc date range

Payroll User Guide Chapter 15 Employee: Garnishments 259

260 Chapter 15 Employee: Garnishments Payroll User Guide
Chapter 16

Employee: Payroll Distributions

This chapter covers how to assign payroll distributions within the Lawson
Payroll application.

STOP Before you assign payroll distributions, you must deÞne and activate
General Ledger accounts. For more information, see the General Ledger
User Guide.

Payroll User Guide Chapter 16 Employee: Payroll 261

Distributions
Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 263 • "What are Payroll Distributions?" on page 262

What are Payroll Distributions?

By deÞning payroll distributions, Payroll allows you to override, as a percent,
the normal distribution of wage and company-paid deduction expenses for
an employee.
When you assign payroll distributions for an employee you can distribute
speciÞc wage and company-paid deduction expenses for an employee into
multiple accounts. If a time record is added for an employee with a deÞned
payroll distribution, the Payroll Distribution Þeld on the time record form
defaults to Yes.
If the total override distribution is not 100 percent, the remaining expenses use
the standard General Ledger defaults. For more information, see "General
Ledger Accounts Defaulting" on page 659.
When you run Payroll Close, you can determine how employee payroll
distribution records are used for distributing expenses. You can choose to:
• Distribute both the pay expense and company-paid expenses
• Distribute only pay expenses
• Distribute only company-paid expenses

262 Chapter 16 Employee: Payroll Distributions Payroll User Guide

Procedures in this Chapter
The following procedures explain how to assign payroll distributions.
• "Assigning Payroll Distributions for Employees" on page 263
• "Assigning Payroll Distributions for Positions" on page 264

Assigning Payroll Distributions for Employees

Use Payroll Distributions - Employees (PR23.1) to override, by percent, the
normal distribution of wages and company-paid deductions for an employee.
You can deÞne percent distributions for speciÞc pay codes and company-paid
deductions.

Need More Details? Check out the following concepts:

• "What are Payroll Distributions?" on page 262

STOP DeÞne and activate general ledger accounts before assigning payroll
distributions for employees. For more information, see the General Ledger
User Guide.

STEPS To assign payroll distributions for employees

NOTE Using this form 1. Access Payroll Distributions - Employees (PR23.1).
overrides the expense
company, accounting 2. Consider the following Þelds.
unit and account number
on the time record for To Choose
the employee.
Override the the Pay Code Þeld and select a pay code.
general ledger
defaults for
employee
wage expenses
associated with a
speciÞc pay code
Override the the Deduction Þeld and select a company-paid
general ledger deduction.
defaults for
company-paid
deduction
expenses for an
employee

Payroll User Guide Chapter 16 Employee: Payroll 263

Distributions
 To Choose
Override the to leave the Pay Code and Deduction Þelds blank.
general ledger
defaults for all wage
and company-paid
deduction
expenses for an
employee
Display the total the Totals form action to open the Total Percent
percent for the subform.
payroll distribution
The subform displays the default distribution
record
number from the employee record, and the
total percent of net and ßat amounts for all
direct deposit distribution records deÞned for the
employee.

3. In the Expense Account Unit Þeld, select the general ledger expense
accounting unit for the distribution override.
4. In the Percent Þeld, type the percent of the distribution override.
5. Select a job code for the distribution override. If you leave the Job Code
Þeld blank, the job code deÞned on the employee record defaults.
6. Select the More form tab to deÞne distribution overrides for premium and
shift expense and for process level or department.
7. Choose the Add form action to add the payroll distributions.

Related Reports and Inquiries

To Use
List the payroll distributions Percent Distribution Listing (PR223)

Assigning Payroll Distributions for Positions

Use Payroll Distributions - Positions (PR23.3) to override, by percent, the
normal distribution of wages and company-paid deductions for a position.

Need More Details? Check out the following concepts:

• "What are Payroll Distributions?" on page 262

264 Chapter 16 Employee: Payroll Distributions Payroll User Guide

 STOP Before expense distributions can be assigned to positions, you must
Þrst deÞne the positions. For more information, see "Assigning Employee
Pay" on page 214.

STEPS To assign payroll distributions for employees

1. Access Payroll Distributions - Positions (PR23.3).
2. Consider the following Þelds.

Pay Code Select a pay code to deÞne a payroll distribution

override for a speciÞc pay code.
If you leave the Pay Code Þeld blank, all wage
expenses for time records associated with the
position are distributed to the general ledger
accounts for this form.
Expense Account Select the general ledger expense accounting
Unit unit for the distribution override.
Percent Type the percent of the distribution override.
Job Code Select a job code for the distribution override.
If you leave the Job Code Þeld blank, the job
code deÞned on the employee record defaults.

3. Select the More form tab to deÞne distribution overrides for premium and
shift expense and for process level or department.
4. Choose the Add form action to add the payroll distributions.

Related Reports and Inquiries

To Use
List the payroll distributions Percent Distribution Listing (PR223)

Payroll User Guide Chapter 16 Employee: Payroll 265

Distributions
266 Chapter 16 Employee: Payroll Distributions Payroll User Guide
Chapter 17

Employee: Direct Deposit Distributions

This chapter describes how to assign direct deposit distributions within the
Lawson Payroll application.

STOP Before you assign direct deposit distributions, you must deÞne direct
deposit distributions and authorize direct deposit for the employee. For more
information, see "Setting Up Bank Codes" on page 185.

Payroll User Guide Chapter 17 Employee: Direct Deposit 267

Distributions
Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 269 • "What are Direct Deposit Distributions?" on page 268

What are Direct Deposit Distributions?

In the Payroll application, employees can choose to have their pay directly
distributed to as many as 99 bank accounts. Employees can specify a partial
distribution or 100 percent of their net pay.
To process employee Direct Deposit Distributions:
• Verify bank account parameters
• Authorize a direct deposit
• Activate a direct deposit

268 Chapter 17 Employee: Direct Deposit Payroll User Guide

Distributions
Procedures in this Chapter
The following procedures explain how to assign direct deposit distributions.
• "DeÞning and Authorizing Direct Deposits" on page 269
• "Assigning Direct Deposit Distributions" on page 270

DeÞning and Authorizing Direct Deposits

To set up the direct deposit, you must verify bank parameters through
Bank Account (PR01.1) and authorize the direct deposit through Employee
(HR11.1).

Need More Details? Check out the following concepts:

• "What are Payroll Distributions?" on page 262
• "What is Direct Deposit?" on page 187
• "What do I need to Set Up to Use Direct Deposit?" on page 188

STEPS To deÞne direct deposit parameters

NOTE When you Þrst 1. Access Bank Account (PR01.1). For more information, see "Adding Bank
deÞne bank information Accounts" on page 190.
for the company in
the Bank form tab on 2. Choose the Main form tab for United States employees, or the Canada
Company (HR00.1), tab for Canada employees.
Payroll automatically
creates a record in Bank 3. In the Direct Deposit Option Þeld, select Y (Yes) if direct deposit is
Account (PR01.1). available for the bank account entered.
4. For non-Canada employees, in the Prenote Þeld, select Yes if
prenotiÞcation is required for this account. If you select Yes, Payroll
creates prenotes for affected employees when you run Payment Print
(PR160).

STEPS To authorize a direct deposit for an employee

1. Access Employee Record (HR11.1). For more information, see the
Human Resource User Guide.
2. Select the Pay form tab.

Payroll User Guide Chapter 17 Employee: Direct Deposit 269

Distributions
NOTE If you select P 3. In the Automatic Deposit Þeld, select Y (Yes) or P (Partial) to authorize
(Partial) in the Automatic employee direct deposits.
Deposit Þeld, the portion
of the employee’s net
pay speciÞed in Direct Related Reports and Inquiries
Deposit Distribution
(PR12.1) is deposited To Use
and the employee
receives a payment for List bank account setup Bank Listing (PR201)
the remainder.

Assigning Direct Deposit Distributions

Use Direct Deposit DistributionDirect Deposit Distribution (PR12.1) to deÞne
distributions for employees who have payments automatically deposited
into their bank accounts. You can deÞne up to 99 direct deposit distribution
accounts for an employee.
You can assign direct deposit distributions on Direct Deposit DistributionDirect
Deposit Distribution (PR12.1) for both the United States and non-Canada
countries on the Main tab, and for Canada employees on the Canada tab.

Need More Details? Check out the following concepts:

• "What are Payroll Distributions?" on page 262
• "What is Direct Deposit?" on page 187
• "What do I need to Set Up to Use Direct Deposit?" on page 188

STEPS To assign direct deposit distributions for United States

and non-Canada employees
1. Access Direct Deposit DistributionDirect Deposit Distribution (PR12.1).
2. Select the Company and Employee in the appropriate Þelds.
NOTE The direct 3. In the Distribution Order Þeld, type the number indicating the order to
deposit distribution take the direct deposit distributions. You can leave this Þeld blank, but
record selected as the
Payroll will not take the direct deposit distribution until there is an order
default will always be the
last record processed. number in this Þeld.
If partial auto deposit is 4. In the Country Þeld, select a different country code to set up a direct
selected, the remaining
dollars are distributed to deposit distribution for future use. If you do not select a country code, the
the check. country code from the employee record defaults.

270 Chapter 17 Employee: Direct Deposit Payroll User Guide

Distributions
TIP To retain history 5. Choose the Main tab to assign direct deposit distributions for United
on an employee’s direct States and non-Canada employees. Consider the following Þelds.
deposit distributions,
inactivate a current
distribution by removing Receiving DFI Select the routing number identifying the bank
X’s from all pay cycle where the net pay or portion of net pay is
Þelds and adding a deposited.
new direct deposit
distribution with a new Bank The bank name for the Receiving DFI displays,
number in sequence. if the description exists on Employee Bank
MaintenanceEmployee Bank Maintenance
(PR12.4). Type a description to override the
description at the employee level.
For partial direct deposit, the description prints on
direct deposit receipts and payments.
Account Type the bank account number where deposits
are made.
Account Type Select C (Checking) or S (Savings) to identify the
type of account where funds are deposited.
Prenotify Status Select the value identifying the status of the direct
deposit distribution between the company and
the processing bank.
Select A (Accepted), P (PrenotiÞed), or N (Not
PrenotiÞed). If you change the Bank ID or
Account Þelds, the Prenotify Status automatically
changes to Not PrenotiÞed and you must repeat
the process.
Payment Type the description that prints under the
Description employee deductions in Earnings and Deductions
CalculationEarnings and Deductions Calculation
(PR140) and on payment and direct deposit
receipts created by Payment PrintPayment Print
(PR160).
Flat Amount If the employee wants a speciÞc amount
automatically deposited, type the amount and
leave the Percent of Net Þeld blank.
Percent of Net Type the percent of net pay the employee wants
automatically deposited.
If a value is typed in the Percent of Net Þeld,
leave the Amount Þeld blank.

Payroll User Guide Chapter 17 Employee: Direct Deposit 271

Distributions
 Default Select the option indicating whether this is the
employee’s default direct deposit distribution.
If the Automatic Deposit Þeld on
EmployeeEmployee (HR11.1) is set to
Yes, you must select a default direct deposit
distribution. The distribution you select as the
default is always processed last. You must
deÞne the default account as 100 percent to
allow the Payroll application to distribute the total
remaining balance of net pay to this account after
all other distributions have been processed.
Effective Date Type a beginning date for the distribution. If you
leave the Begin Date Þeld blank, the system
(Begin Date)
date defaults. Payroll compares the begin date
to the payment date typed in Earnings and
Deductions CalculationEarnings and Deductions
Calculation (PR140) to determine if the direct
deposit distribution is valid.
Effective Date Type an ending date for the distribution. If the
End Date Þeld is left blank, no end date is
(End Date)
assumed. Payroll compares the end date to the
payment date typed in Earnings and Deductions
CalculationEarnings and Deductions Calculation
(PR140) to determine whether the direct deposit
distribution is taken.
Cycles Match the cycles with the cycles on Earnings
and Deductions CalculationEarnings and
Deductions Calculation (PR140). Select an X in
the appropriate Þelds to indicate the cycles in
which the direct deposit distribution is taken. You
can select up to nine cycles.

NOTE You must select at least one cycle.

IMPORTANT If you move an employee from one country to another,

make distributions for the current country inactive. To make distributions
inactive, you must put an end date on all direct deposit distributions for
the current country or remove the X’s from the Cycles Þeld. Then, create
new distributions for the employee with the new country in the Country
Code Þeld.

STEPS To assign direct deposit distributions for Canada

employees
1. Access Direct Deposit DistributionDirect Deposit Distribution (PR12.1).
2. Select the Company and Employee in the appropriate Þelds.

272 Chapter 17 Employee: Direct Deposit Payroll User Guide

Distributions
NOTE The direct 3. In the Distribution Order Þeld, type the number indicating the order to
deposit distribution take the direct deposit distributions. You can leave this Þeld blank, but
record selected as the
default will always be the Payroll will not take the direct deposit distribution until there is an order
last record processed. number in this Þeld.
If partial auto deposit is 4. In the Country Þeld, select a different country code to set up a direct
selected, the remaining
dollars are distributed to deposit distribution for future use. If you do not select a country code, the
the check. country code from the employee record defaults.
TIP To retain history 5. Choose the Canada tab to assign direct deposit distributions for Canada
on an employee’s direct employees. Consider the following Þelds.
deposit distributions,
inactivate a current
distribution by removing Institution Type the institution number of the bank where
X’s from all pay cycle Number Payroll sends the direct deposit payment.
Þelds and adding a
new direct deposit Transit Number Type the transit number of the bank branch to
distribution with a new which Payroll sends the direct deposit payment.
number in sequence.
Bank The bank name for the Receiving DFI displays,
if the description exists on Employee Bank
MaintenanceEmployee Bank Maintenance
(PR12.4). You can type a description to override
this description at the employee level.
The description prints on direct deposit receipts
and on payments in the case of a partial direct
deposit.
Account Type the bank account number where deposits
are made.
Payment Type the description of the direct deposit
Description distribution that you want to print on the payment
stub or payment receipt for the employee. This
description also prints on the report created by
Earnings and Deductions CalculationEarnings
and Deductions Calculation (PR140).
If this distribution has Canada as its country
code, this Þeld is required.
Flat Amount If the employee wants a speciÞc amount
automatically deposited, type the amount and
leave the Percent of Net Þeld blank.
Percent of Net Type the percent of net pay the employee wants
automatically deposited.
If a value is typed in the Percent of Net Þeld,
leave the Amount Þeld blank.

Payroll User Guide Chapter 17 Employee: Direct Deposit 273

Distributions
 Default Select the option indicating whether or not this is
the employee’s default direct deposit distribution.
If the Automatic Deposit Þeld on
EmployeeEmployee (HR11.1) is set to
Yes, you must select a default direct deposit
distribution. The distribution you select as the
default is always processed last. You must deÞne
the default account as 100 percent to allow
Payroll to distribute the total remaining balance of
net pay to this account after all other distributions
have been processed.
Effective Date Type a beginning date for the distribution. If you
leave the Begin Date Þeld blank, the system date
(Begin Date)
defaults. Payroll compares the begin date to the
payment date typed in Earnings and Deductions
CalculationEarnings and Deductions Calculation
(PR140) to determine whether the direct deposit
distribution is valid.
Effective Date Type an ending date for the distribution. If the
End Date Þeld is left blank, no end date is
(End Date)
assumed. Payroll compares the end date to the
payment date typed in Earnings and Deductions
CalculationEarnings and Deductions Calculation
(PR140) to determine whether the direct deposit
distribution is taken.
Cycles Match the cycles with the cycles on Earnings
and Deductions CalculationEarnings and
Deductions Calculation (PR140). Select an X in
the appropriate Þelds to indicate the cycles in
which the direct deposit distribution is taken. You
can select up to nine cycles.

NOTE You must select at least one cycle.

Related Reports and Inquiries

To Use
List all the direct deposit information Direct Deposit Account ListingDirect
for the employees Deposit Account Listing (PR212)
Perform maintenance on a direct Employee Bank
deposit MaintenanceEmployee Bank
Maintenance (PR12.4)

274 Chapter 17 Employee: Direct Deposit Payroll User Guide

Distributions
Chapter 18

Employee: Standard Time Records

This chapter describes how to assign standard time records within the Lawson
Payroll application.

STOP Before you assign standard time records to employees, you must
ßag the employees as Standard, Time Group, or Yes on the AutoTime Record
Þeld on the Pay tab on Employee (HR11.1). For more information, see
"Assigning Employee Pay" on page 214.

Payroll User Guide Chapter 18 Employee: Standard Time 275

Records
Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 278

What are Standard Time Records?

In the Payroll application, you can use an Employee Group to group together
employees who work the same number of hours and have the same pay code
for the standard time record every pay period. For example, an Employee
Group might include all salaried employees.
Once the group is established, you can set up a standard time record for the
group using Standard Time Record. Creating standard time records eliminates
manual entry of employee time records every pay period. To generate the
time records of the group, run Automatic Time Records each pay period.
For an employee to have a time record created through a group standard
time record, the Auto Time Record Þeld on the Pay tab of Employee, must
be set to T (Time Group) or Y (Time Group or Individual). If you select T,
Payroll generates only employee group time records. If you select Y, Payroll
generates both employee group time records and standard time records.

IMPORTANT If the employee has both an individual standard time record and
a time group standard time record, the Auto Time Record Þeld is set to Y
(Time Group or Individual). If the Þeld is set to Y, verify that the time record
was not duplicated in the pay period.

Example
Two Rivers has four different sets of employees who work the same number
of hours each pay period. To ease entry time each pay period, Two Rivers
created the four mutually exclusive Employee Groups listed below and
established a Group Standard Time Record for each of the employee groups.
Employee Groups Description Pay Code Hours Workedc
per Pay Period
FT SAL MTH Full-time salaried employees paid Reg 173.33
monthly
FT SAL BW Full-time salaried employees paid Reg 80.00
bi-weekly
PT SAL W Part-time salaried employees paid Reg 20.00
weekly
PR SAL BW Part-time salaried employees paid Reg 40.00
bi-weekly

276 Chapter 18 Employee: Standard Time Records Payroll User Guide

 For an employee to have a unique time record created from the standard time
record, you must set the Auto Time Record Þeld on the Pay tab of Employee
to S (Standard Time Record). If you select S, Payroll generates only standard
time records.
You can also establish Standard Time Records on an individual basis. If an
employee works the same number of hours and receives the same pay each
period, use Standard Time Record to deÞne the employee standard time
record. If the employee belongs to a group for which there is an automatic
time record, do not use this option unless the employee is to have both a
group standard time record and an individual standard time record.

Payroll User Guide Chapter 18 Employee: Standard Time 277

Records
Procedures in this Chapter
The following procedure explains how to assign standard time records.
• "Assigning Standard Time Records" on page 278

Assigning Standard Time Records

When employees work the same number of hours each pay period, you can
create standard time records, eliminating the need to enter time for every
pay cycle.

Need More Details? Check out the following concepts:

• "What is a Time Record?" on page 298
• "What are Payroll Distributions?" on page 262

STOP To be eligible for a standard time record, the employee record must
have an Auto Time Record Þeld value of Standard, Time Group, or Yes. To be
eligible for a standard group time record, the employee group must be deÞned,
and the employee must be a member of the group. For more information, see
the Human Resources User Guide, and the Personnel Administration User
Guide. For more information, see "DeÞning Pay Classes" on page 53.

STEPS To assign standard time records

1. Access Standard Time Record (PR30.1).
2. Enter the employee in the Employee Þeld, or enter the employee group in
the Employee Group Þeld.
3. Select the TRD Comments button to open the Comments subform, and
deÞne time record comments and indicate whether the comments can
print on reports.
4. DeÞne a standard time record for individual employees or for employee
groups. Consider the following Þelds.

FC Select Add, Change or Delete.

Pay Code Select a pay code.
For Time and Attendance users, a pay code tied
to an attendance code defaults when you select
an attendance code.
Hours Type the number of hours you want to associate
with the pay code.
Job Code Select a job code. If you leave this Þeld blank,
the job code from the employee record defaults.

278 Chapter 18 Employee: Standard Time Records Payroll User Guide

 Amount Type the rate of pay or leave the Þeld blank.
For hourly employees, the amount is considered
an hourly rate and is multiplied by the hours
entered on the time record. For salaried
employees, the amount entered overrides normal
salary amounts for pay codes with calculation
type of Normal Rate and is not multiplied by the
hours entered.
If you leave the Þeld blank, the pay rate defaults
from the pay code, alternate rates, job code,
pending actions, log Þle, or the employee record.
Begin Date Type the date the standard time record becomes
effective.
If left blank, the system date defaults.
For the Begin Date and End Date Þeld, Payroll
compares the effective date to the time record
date entered in Automatic Time Records (PR134)
to determine whether a time record is created.
End Date If applicable, type the date the standard time
record is no longer in effect.
If left blank, Payroll assumes there is no end date.
Curr Code Select the currency you want to assign to this
standard time record.
This Þeld must be the same as the employee
currency.

5. Select the More form tab to deÞne additional parameters for standard
time records. The parameters you deÞne in these Þelds override any
corresponding parameters deÞned. Consider the following Þelds.

CG (Check Group) All time records with a common entry in this

Þeld are grouped on one payment record for the
employee.
If multiple payments are desired, type a different
value. You can type alpha or numeric values.
PG (Process All time records with a common value in this Þeld
Group) are grouped for tax calculation purposes.
Process groups allow you to tax pay codes
separately, but combine earnings in a single
payment.
TF (Tax Select the option indicating how you want to
Frequency) override normal taxation.

Payroll User Guide Chapter 18 Employee: Standard Time 279

Records
 Follow up
For BeneÞts Administration application users, if your company has a ßex
plan, the BeneÞts Administration application creates standard time records
for ßex credits that employees receive as pay, even if their employee record
does not have an Auto Time Record Þeld value of Standard, Time Group, or
Yes. For companies that do not want to issue a payment for ßex credits for an
employee who does not have any other pay for the pay cycle, the BeneÞts
Administration application has a form that allows you to delete ßex time
records if no other time records exist for the employee in the pay cycle. For
more information, see the BeneÞts Administration User Guide.

Related Reports and Inquiries

To Use
Identify employees as eligible for Employee (HR11.1)
automatic time record entry
Create standard time records for Automatic Time Records (PR134)
eligible employees based on the
parameters deÞned in Standard
Time Record (PR30.1)
List all the standard time records Standard Time Record Listing
(PR230)

280 Chapter 18 Employee: Standard Time Records Payroll User Guide

Chapter 19

Time Records: Overview

This chapter provides an overview of the overall process of entering time

records into the Lawson Payroll application. Procedures for each step in the
process are detailed in the chapters that follow.

Payroll User Guide Chapter 19 Time Records: Overview 281

Time Record Process
Entering time records into Payroll includes several processes, including the
data entry of time records.
The table below describes each of the time record processes.
Process DeÞnition For details, see
Pre-entry maintenance You need to perform "Time Records:
pre-entry maintenance, Pre-entry Maintenance"
if you made changes to on page 285
any of the following:
• One-time
deductions
• Employee groups
• Pay rates
• Progressive pay
plans
Enter Time Records You must enter time "Time Records:
records into the Entering" on page
application to process 295
payroll.
"Time Records: Pension
Payments" on page 339
Move Time Records After you enter time "Time Records: Moving"
records and ensure on page 351
they are correct, you
must release and select
the records from batch
status to current status.
Only time records in
current status can be
processed during the
payroll cycle.

282 Chapter 19 Time Records: Overview Payroll User Guide

Time Record Procedures
Each of the time record processes include multiple procedures. It is unlikely
that you will perform each of these procedures for every payroll cycle. See
the time record chapters for information on which procedures are required,
optional, or conditional.

Payroll User Guide Chapter 19 Time Records: Overview 283

284 Chapter 19 Time Records: Overview Payroll User Guide
Chapter 20

Time Records: Pre-entry Maintenance

This chapter covers the procedures you might need to complete before you
enter time records into the Lawson Payroll application. Depending on the
changes you made to the application since the last payroll cycle, you might
not have to complete the procedures in this chapter. For more information,
see "Time Records: Overview" on page 281.

Payroll User Guide Chapter 20 Time Records: Pre-entry 285

Maintenance
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 289 • "What are One-Time Deductions?" on page 286
• "What are Employee Groups?" on page 287

What are One-Time Deductions?

A one-time deduction is a deduction that is not taken on a regular basis for an
employee, or is an arrears deduction created by Payroll when the employee
has insufÞcient net pay to take a deduction. You can use one-time deductions
to correct a deduction which was processed incorrectly or to pro-rate a
deduction for an employee.
Payroll creates one-time deductions as ßat amounts regardless of the
deduction code calculation type. Payroll takes the one-time deduction in
addition to the regular deduction. Payroll automatically assigns the one-time
deduction to an employee whether the same deduction code is assigned to
the employee as a regular deduction.
You assign one-time deductions a status similar to time records. You can
deÞne one-time deductions with a Future status and select the deductions,
along with time records, for change to Current status, or you can add one-time
deductions directly into Current status for immediate processing. For more
information, see "What are Time Record Statuses?" on page 299.
After standard deductions for all categories, except garnishments are
processed, Payroll processes one-time deductions by priority number in the
category in which the deductions fall. Payroll processes non-refund one-time
garnishment deductions with the standard garnishment deductions.
Payroll categorizes and processes deductions in the following order:
• Tax deductions
• Exclude from disposable income deductions
• Garnishment deductions
• Other deductions

Example
When Two Rivers processed Janet Filman’s check last pay period, the payroll
clerk incorrectly entered the additional amount to be withheld from Janet’s
Minnesota State Income tax. Rather than $5.00, an additional $50.00 was
withheld.
During the current pay period, the payroll clerk entered a one-time deduction
of negative $45.00 to pay Janet back for the mistake made in the last pay
period.

286 Chapter 20 Time Records: Pre-entry Payroll User Guide

Maintenance
What are Employee Groups?
Employee groups allow you to group a set of employees together. You can
deÞne employee groups:
• Based on common criteria
• By grouping employees manually by employee number
• A combination of both
You can use existing employee groups as selection criteria to create groups
within groups.
You can use employee groups for performing online inquiries and running
standard reports.
Within Payroll, you can use employee groups for creating automatic time
records.
If you use Personnel Administration, you can use employee groups for
creating personnel actions. If you use the Time and Attendance application,
you can use employee groups to determine eligibility for Time and Attendance
plans. If you use BeneÞts, you can use employee groups to determine:
• Employee eligibility
• Coverage
• Contributions
• General Ledger overrides
• BeneÞt automation rules
• Retiree status
After you deÞne and update employee groups, employees are added into and
removed from employee groups as they are added and changed on employee
records. You do not need to update the group when employees change or are
added to the system.
When you change the criteria of a group or create a new group, you must
recompile the employee groups.

Example: BeneÞt Eligibility

Two Rivers Company offers a special health plan to full-time salaried
employees working in either Two Rivers Hospital. Therefore, an employee is
deÞned for beneÞt eligibility using the following selection criteria:
Process Level Grove Hospital River Bend Hospital
Employee Status Full Time Full Time
Salary Class Salaried Salaried

Example: Employee Number Group

Grove Cafe needs an address listing for the softball team, so an employee
group is created. Because the members of the softball team do not share
speciÞc selection criteria, the group is deÞned by manually adding employees
to the group.

Payroll User Guide Chapter 20 Time Records: Pre-entry 287

Maintenance
 Example: Vacation Plan
Two Rivers Company offers a special vacation plan to full-time salaried
employees reporting directly to the CEO. Therefore, an employee group is
deÞned using the following selection criteria:
Employee Status Full-time
Salary Class Salaried
Supervisor CEO

Harold Sanchez (employee #124) is also eligible for this plan but is not a
full-time employee. Because he does not meet the above selection criteria,
but is eligible for the same vacation plan as the others in the group, the group
was deÞned to also include employee #124.

Example: Time Record Creation

Two Rivers Company deÞned two employee groups for time record creation.
One employee group named HOURLY is deÞned for active hourly employees
using the following selection criteria:
Status Active
Salary Class Hourly

A second employee group named SALARIED is deÞned for active salary

employees is deÞned using the following selection criteria:
Status Active
Salary Class Salaried

Example: Group of Groups

At the end of the Þscal year Two Rivers gives all the active employees a ßat
dollar bonus amount. Therefore, an employee group is deÞned using both
groups in the above. For more information, see "Example: Time Record
Creation" on page 288.
Employee Group HOURLY SALARY

288 Chapter 20 Time Records: Pre-entry Payroll User Guide

Maintenance
Procedures in this Chapter
Depending on the changes you have made to the application since the last
payroll cycle, you might need to complete one of the following procedures
before you enter time records.
• "Maintaining One-Time Deductions" on page 289
• "Creating or Updating Employee Groups" on page 292
• "Updating Pay Rates for Multiple Employees" on page 293

Maintaining One-Time Deductions

A one-time deduction is a deduction not taken on a regular basis for an
employee, or is an arrears deduction created by Payroll when the employee
has insufÞcient net pay to take a deduction.
Before you enter time records you can add, delete, or verify one-time
deductions to ensure the deductions are applied correctly during the payroll
cycle.
"Adding One-Time Deductions" on Add a one-time deduction for an
page 289 employee.
"Deleting One-Time Deductions" on Delete an unprocessed one-time
page 291 deduction.
"Verifying One-Time Deductions" on Verify that the one-time deductions
page 292 for an employee are accurate.

Adding One-Time Deductions

If an employee needs a deduction to be applied only once, you can add
a one-time deduction.

Need More Details? Check out the following concepts:

• "What are One-Time Deductions?" on page 286

STEPS To add one-time deductions

1. Access One-Time DeductionOne-Time Deduction (PR39.1).
2. Select the employee for whom you want to add the deduction in the
Employee Þeld on the deduction line (not at the top of the form). Consider
the following Þelds:

Deduction Select the deduction code for the one-time

deduction.
If the deduction does not exist for the employee
on PR14.1 (Employee Deduction), Choose
Attachment to open a form where you can type
comments for this deduction.

Payroll User Guide Chapter 20 Time Records: Pre-entry 289

Maintenance
 Amount Type the one-time deduction amount. To create
a negative one-time deduction, type a negative
sign following the amount.
Date Type the date you want the deduction taken. The
date you enter should correspond with a time
record date.
PR39 deductions are processed on the date
entered in the Payment Date Þeld of Earnings
and Deductions Calculations (PR140). That
means if the one-time deduction date is before
or on the same day as the PR140 date, the
deduction will be processed.
If you leave the Date Þeld blank, the system date
defaults. Use PR38.1 (Time Card Selection) or
PR137 (Batch Time Record Update) to select
one-time deductions along with time records for
payroll processing.
Status Select Future or Current status when you enter
one-time deductions. The system changes Future
status one-time deductions to Current status
along with time records, based on parameters
you deÞne in PR38.1 (Time Card Selection) or
PR137 (Batch Time Record Update).
PR140 (Earnings and Deductions Calculation)
processes only Current status, one-time
deductions. After you run PR140, the status
changes to Processed for all one-time deductions
that were processed.
Check Group Type a check group.
DeÞning a check group for the one-time deduction
determines that the deduction is taken only from
pay codes where the check group is an exact
match, or from any pay code if the check group
on the one-time deduction is blank.
If the check group on the one-time deduction is
any value other than blank and does not match
the check group value on any pay code, the
one-time deduction will not be taken.

NOTE If the one-time deduction is an arrears

deduction created by the system, the message
"ARREARS" displays.

290 Chapter 20 Time Records: Pre-entry Payroll User Guide

Maintenance
 Priority Type a value of 1-9, 1 being the highest, to
determine the priority in which the system
processes the deduction within categories in the
following order:
• Withholding type deductions
• Exclude from disposable income deductions
• Garnishment deductions
• Other deductions
With the exception of garnishments, the Payroll
system processes one-time deductions in priority
number order in the category in which they fall
after standard deductions for all categories are
processed.
With the exception of garnishments, if multiple
deductions within a category have the
same priority, the system processes them in
alphanumeric order.
The sub-priorities Þeld on PR26.1 (Employee
Garnishment) and PR2.2 (Garnishment
Rules) determines the order in which multiple
garnishments with the same priority are taken for
an employee. You deÞne garnishment deductions
by selecting Yes in the Garnishment Þeld of
PR05.1 (Deduction). The priority you deÞne for
an employee deduction record overrides the
priority deÞned for the deduction.
Payment Type a payment description for the one- time
Description deduction. This description prints on PR140
(Earnings and Deductions Calculation), only
if a regular deduction with the same code is
not taken. PR160 (Payment Print) prints the
description from PR05.1 (Deduction) on the
payment stub.

Related Reports and Inquiries

To Use
List one-time deductions One-Time Deduction ListingOne-
Time Deduction Listing (PR239)

Deleting One-Time Deductions

If an incorrect one-time deduction exists for an employee, you can delete
the deduction.

Payroll User Guide Chapter 20 Time Records: Pre-entry 291

Maintenance
 Need More Details? Check out the following concepts:
• "What are One-Time Deductions?" on page 286

STEPS To delete one-time deductions

1. Access One-Time DeductionOne-Time Deduction (PR39.1).
2. Select the employee for whom you want to delete the deduction in the
Employee Þeld at the top of the form.
3. Choose the Inquire form action to display all of the employee’s one-time
deductions.
4. Select Delete in the Line Action Þeld on the line of the deduction you
want to delete.

Related Reports and Inquiries

To Use
List one-time deductions One-Time Deduction ListingOne-
Time Deduction Listing (PR239)

Verifying One-Time Deductions

You can view all the one-time deductions for an employee to verify that the
deductions are correct.

Need More Details? Check out the following concepts:

• "What are One-Time Deductions?" on page 286

STEPS To verify one-time deductions

1. Access One-Time DeductionOne-Time Deduction (PR39.1).
2. Select the employee for whom you want to verify deductions in the
Employee Þeld at the top of the form.
3. Choose the Inquire form action to display the employee’s one-time
deductions.
4. Perform any necessary maintenance to the one-time deductions.

Related Reports and Inquiries

To Use
List one-time deductions One-Time Deduction ListingOne-
Time Deduction Listing (PR239)

Creating or Updating Employee Groups

You update an employee group after you deÞne or change the group in the
Human Resources application. Standard time records can use employee

292 Chapter 20 Time Records: Pre-entry Payroll User Guide

Maintenance
 groups, so if you change a group, you must update it to ensure the correct
employees receive automatic time records.

Need More Details? Check out the following concepts:

• "What are Employee Groups?" on page 287

STEPS To create or update employee groups

1. Access Employee Group Update (HR155).
NOTE If you change an 2. Select the employee group you want to update in the Employee Group
employee group that is Þeld.
a subgroup of another
employee group, you – or –
must Þrst update the
subgroup and then Leave this Þeld blank to update all employee groups.
update the group it is a 3. Run the report.
part of.

Related Reports and Inquiries

To Use
List employee groups Employee Group Listing (HR255)

Updating Pay Rates for Multiple Employees

You can increase or decrease the pay of more than one employee at the
same time, if the change is the same for all the employees you update.

STEPS To update pay rates for multiple employees

1. Access Mass Pay Update (PR120).

IMPORTANT Mass Pay Update (PR120) is used only by clients that

do not use the Personnel Administration application. If you use the
Personnel Administration application, you can use Mass Pay Action
(PA52.2) to update pay rates for multiple employees.

2. Select the criteria of the employees whose pay rates you want to update.
Consider the following Þeld.

Include or The statuses you want to include or exclude from

Exclude, Status the pay updates.

3. Select how you want to change the pay rates for employees. Consider
the following Þelds.

Percent Increase A percent increase you want to apply to the

employees.
Percent Decrease A percent decrease you want to apply to the
employees.

Payroll User Guide Chapter 20 Time Records: Pre-entry 293

Maintenance
 Round to If you type a value in the Percent Increase
or Percent Decrease Þeld, this Þeld indicates
the number of decimal places you want the
calculated rate to extend.
Rounding Option If you type a value in the Percent Increase or
Percent Decrease Þeld, select the rounding
method you want to use in the calculation.
Amount Increase If the mass pay change is a ßat amount pay
increase, type the appropriate amount.
Amount Decrease If the mass pay change is a ßat amount pay
decrease, type the appropriate amount.
New Rate of Pay If the mass pay change is a new rate of pay, type
the appropriate rate of pay.

4. Select to update the system with the pay rate changes in the Update Þeld
– or –
Select only to create a report that you can use to audit proposed changes
in the Update Þeld.

Related Reports and Inquiries

To Use
List employee details, including Employee Listing (HR211)
employee pay rates

294 Chapter 20 Time Records: Pre-entry Payroll User Guide

Maintenance
Chapter 21

Time Records: Entering

This chapter covers how to manually enter time records into the Lawson
Payroll application.

STOP Before you create time records, you must perform any necessary
pre-entry maintenance. For more information, see "Time Records: Pre-entry
Maintenance" on page 285.

Payroll User Guide Chapter 21 Time Records: Entering 295

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 304 • "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303

Which Time Record Entry Method Should I Use?

The following table lists the procedures in this chapter for manual time entry,
and the general and speciÞc use of each method.
Method General Use SpeciÞc Use
"Entering Time Enter more than one One employee, general
Records for One time record for one use
Employee by Batch" on employee at a time and
page 306 use minimum detail on
your time records.
"Entering Time Enter a speciÞc number Employees with FLSA
Records for One of hours for each date (Fair Labor Standards
Employee by Work an employee worked Act) overtime pay plans
Period" on page 304 within a work period.
"Entering Detailed Enter more than one Overrides to Employee
Time Records for One detailed time record Record
Employee by Batch" on for one employee at a
Strategic Ledger
page 309 time.
"Entering Activity Time Activity Codes
Enter time records
Records" on page 312
and assign activity Strategic Ledger
codes from the Project
Accounting application. Overrides to Employee
Record
"Entering and Enter time records after Add last minute
Maintaining Current or you move the records time records before
Future Time Records" out of batch status. processing payroll.
on page 316
- or - Correct time record
errors.
Maintain time records
in current, future or
error status.

296 Chapter 21 Time Records: Entering Payroll User Guide

 Method General Use SpeciÞc Use
"Speed Entering Time Enter time records Customized time entry
Records for Multiple for employees in a form.
Employees" on page speciÞc process level,
Faster entry of records
319 department, employee
because pay codes and
group, or user level
employees are already
using speciÞc pay
selected.
codes.
Ensure all pay clerks are
using correct pay codes
with the appropriate
employees.
"Entering Time Enter time records for Multiple employees,
Records for Multiple multiple employees general use
Employees" on page using the same time
323 record date.
"Entering Step and Enter time records for Step and Grade
Grade or Grade multiple employees Schedules
Range Schedule Time who are assigned to
Grade Range
Records" on page 324 a step and grade or
Schedules
grade range schedule.
"Entering Attendance Enter time records for Attendance Codes
Time Records" on page multiple employees
328 and assign attendance
codes to the time
records.
"Entering Position Time
Enter time Position Codes
Records" on page 329
records for multiple
employees and
assign position codes
from the Personnel
Administration
application to the time
records.

Payroll User Guide Chapter 21 Time Records: Entering 297

 The following chart shows a decision process to determine which time record
entry method to use.
Figure 21. Time Record Entry: Deciding which method to use

Do you want to enter

time records for more
than one employee?

No
Yes
Have you moved time Have you moved time
records from batch records from batch
to current or to current or
future status? future status?

Yes Add, change, Yes

or edit future, current,
No No
or error time records
PR36.1

Do you need to assign Do you need to assign

activity codes to the positions to the time
time record? records?

Yes Enter Activity Time Yes Enter Position

No Records No Time Records
PR35.6 PR35.8

Do you need to Do you need to assign

override information on attendance codes to
the employee record? the time records?

Yes Enter Detailed Time Yes Enter Attendance

No Records No Time Records
PR35.2 PR35.5

Do you need to assign Do you need to assign

Strategic Ledger user a step and grade or a
values to the time grade range schedule
record? to the time records?

Enter Step and Grade,

Yes
Yes Grade Range
No No Time Records
PR35.4

Do you need to enter Do you want to restrict

hours worked for time records to use
specific work period specific pay codes for
dates? specific employees?

Yes Enter Work Period Yes Speed Enter Time

No Time Records Records
No
PR32.1 PR33.1, PR33.2,
PR33.3

Enter Time Records

for One Employee Enter Time Records
PR35.1 for Multiple Employees
PR35.3

What is a Time Record?

Time record is a Lawson term for the record containing the type of pay,
hours, and rate an employee is to be paid. Usually a one-to-one relationship
exists between a Lawson Software time record and each line written on an
employee’s time card.
If you use the Lawson FLSA overtime calculations, you must enter a minimum
of one time record per work period for non-exempt employees so the proper
overtime hours can be calculated.
Gross wages are calculated for an employee as you add time records based
on the employee’s salary class, the rate of pay, and the calculation type
deÞned for the pay type entered.

298 Chapter 21 Time Records: Entering Payroll User Guide

 Example
Janet Filman Þlled out the following time cards for the pay period ending
January 12th:
Name Janet Filman
Job Hostess
Pay Period End Date January 12

Date 1/1 1/2 1/3 1/4 1/5 1/8 1/9 1/10 1/11 1/12 Total
Regular Hours 8 8 0 4 0 0 0 0 0 0 20
Sick Hours 8 8 16

Name Janet Filman

Job Waitress
Pay Period End Date January 12

Date 1/1 1/2 1/3 1/4 1/5 1/8 1/9 1/10 1/11 1/12 Total
Regular Hours 0 0 8 0 4 8 8 8 0 0 36
Sick Hours 2 1 1 4

The payroll clerk creates the following time records in Payroll for Janet.
Figure 22. Time Record example

What are Time Record Statuses?

The time record status identiÞes where the time record is in the payroll
processing cycle. A time record can be in Batch, Future, Current, Processed,
or Error status.
Time records are typically entered into the application in Batch status, and
are grouped together using a batch number for easy editing and balancing
purposes.
Time records are released by batch number to Future status. Future status
time records are selected to Current status by time record date and process

Payroll User Guide Chapter 21 Time Records: Entering 299

 level, department, and pay frequency, or any combination. Current status time
records are time records that are ready for processing through a payroll cycle.
If no problems exist when you process earnings and deductions, the time
records are updated to a Processed status. If problems occur, the time
records are updated to an Error status.
The following sections deÞne each time-record status code in detail:
• "Batch" on page 300
• "Future" on page 300
• "Current " on page 300
• "Processed" on page 300
• "Error" on page 301

Batch
Batch status time records share a common batch number for editing and
balancing. You can make changes to batch status time records at any time.
The following processes create time records in batch status.
• "Entering Time Records for One Employee by Work Period" on page 304
• "Speed Entering Time Records for Multiple Employees" on page 319
• "Entering Time Records for One Employee by Batch" on page 306
• "Creating Automatic Time Records" on page 332
You can deÞne company parameters to require batch control totals before
releasing a batch for processing.

Future
Future status time records are time records released from batch status but are
not yet ready to process in a payroll cycle. Future status serves as a holding
status and provides a stopping point for further editing, if necessary.
Future time records are no longer associated with the batch number, so the
time record date becomes the key for selecting future status time records
for release to current status.
After you release time records to future status, you cannot change them back
to Batch status. Future status provides further editing and sorting by process
level, department, or user level.

Current
Current-status time records are ready for processing in a payroll cycle.
Payroll uses only current status time records when you create earnings and
deductions during the payroll cycle.

Processed
A Processed status indicates that a time record has been processed during
the payroll cycle. You can make changes to processed time records, but you
must then reprocess earnings and deductions. Payroll deletes Processed
status time records when you close the payroll cycle.

300 Chapter 21 Time Records: Entering Payroll User Guide

 Error
Payroll automatically places time records in Error status when an error occurs
in processing a time record or when you make a change to a processed time
record. You can manually place time records in Error status and then correct
the time records.
You must re-run payroll cycle programs when error-status time records exist.

What is the Time Record Date?

The date assigned to each time record serves several important functions.
The time record date determines the following:
• Work period and pay period for the time record hours and wages
• Appropriate rate of pay
• Time and Attendance edits
• Selection for processing in the payroll cycle
• Posting of general ledger entries to multiple general ledger periods based
on the time record date

Example
The payroll clerk created the following time records in the Payroll application
for Janet Filman:
Figure 23. Example: Time Record Date

Based on the time record dates associated with these time records, Janet
had 40 hours of Regular and 2 hours of Overtime for the work period ending
January 5th. She had 24 hours of Regular, 16 hours of Sick, and 2 hours of
Overtime for the work period ending January 12th.
In total, Janet had 64 hours of Regular, 16 hours of Sick and 4 hours of
Overtime for the pay period.

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What is a Process Group?
A process group lets time records or groups of time records be taxed
separately even though the records are combined on a single payment with
time records in a different process group.
Time records with the same process group value are all taxed the same.
Alpha entries use the normal deduction cycle assigned to the payroll cycle.
Numeric entries override the payroll deduction cycle. For more information,
see "What are Deduction Cycles?" on page 98.

Example
Two Rivers wants to pre-pay one week of vacation pay to Sarah Smith along
with her earnings for this pay period. Sarah is paid weekly, so her earnings for
this pay period are 40 hours of regular pay, and 40 hours of vacation. The
payroll clerk at Two Rivers enters Sarah’s hours as follows:

Sarah receives one payment, but Payroll sends each time record separately
to BSI for taxation.

302 Chapter 21 Time Records: Entering Payroll User Guide

What is a Check Group?
The check group Þeld lets you create multiple payments for an employee in a
single payroll cycle. Time records with the same check group are grouped
together onto a single payment.
Alphabetic entries use the normal deduction cycle assigned to the payroll run.
Numeric entries override the payroll deduction cycle. For more information,
see "What are Deduction Cycles?" on page 98.

Example
Two Rivers wants to pay out a bonus to Sarah Smith along with her regular
earnings for the pay period. Two Rivers wants to process her bonus along
with the regular payroll cycle, but they want the bonus amount to be a
separate payment with deductions taken based on a special deduction cycle
created for bonuses. The payroll clerk at Two Rivers enters Sarah’s time
records as follows.
Figure 24. Example: Check Group Time Records

Payroll User Guide Chapter 21 Time Records: Entering 303

Procedures in this Chapter
The following procedures explain how to create time records.
• "Entering Time Records for One Employee by Work Period" on page
304
• "Entering Time Records for One Employee by Batch" on page 306
• "Entering Detailed Time Records for One Employee by Batch" on
page 309
• "Entering Activity Time Records" on page 312
• "Entering and Maintaining Current or Future Time Records" on page
316
• "Speed Entering Time Records for Multiple Employees" on page 319
• "Entering Time Records for Multiple Employees" on page 323
• "Entering Step and Grade or Grade Range Schedule Time Records"
on page 324
• "Entering Attendance Time Records" on page 328
• "Entering Position Time Records" on page 329
• "Creating Automatic Time Records" on page 332
• "Deleting Batches" on page 337

Entering Time Records for One Employee by Work Period

This procedure covers how to enter a speciÞc number of hours for each date
an employee worked within a work period. You can use this procedure for any
employee, but it is designed to track daily overtime hours, which are used in
FLSA overtime calculation.
When you use this procedure, Payroll calculates overtime based on how you
set up the work period on the pay plan assigned to the employee.

STOP Before you enter time records for one employee by work period, you
must deÞne pay codes, deÞne pay plans, and assign employees to the pay
plans. For more information, see "Setting Up Pay Structure" on page 29.

304 Chapter 21 Time Records: Entering Payroll User Guide

 Need More Details? Check out the following concepts:
• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303

STEPS To enter time records for one employee by work period

1. Access Employee Daily Time Entry (PR32.1).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Select the employee you want to enter time records for in the Employee
Þeld.
4. Type the end date of the work period you want to enter time records for
in the Work Period End Date Þeld.
5. Choose the Inquire form action to display the time record Þelds.
6. Enter time records. Consider the following Þelds:

Pay Code The pay code that applies to all hours entered
on the same line.
(Date Þelds) Hours worked under the selected pay code for
the speciÞc date.
Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
SH (Shift) The shift the pay is associated with, or you can
leave the Þeld blank and let the shift default from
the employee record.
CG (Check Group) The check group that hours on this line belong
to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
PG (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.
TF (Tax The option that indicates how you want to
Frequency) override normal taxation.

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 PD (Payroll If a percent distribution record exists on Payroll
Distribution) Distribution - Employees (PR23.1) for the pay
code entered on the time record, Yes displays. To
override a deÞned percent distribution, change
the Yes to No.

7. If the work period is more than one week, select one of the special
actions, SecondWeek, ThirdWeek, or FourthWeek, to enter time records
for that week.

Options for Entering Time Records for One

Employee by Work Period
The following options are available for entering time records for one employee
by work period:
If you want to Select
view total hours and amounts the Totals special action.
entered for the employee
write comments to store on the time the TRD Comments button.
record
write comments that print on the the PMT Comments button.
employee’s payment
release the time records from batch the Release special action.
to future status

Related Reports and Inquiries

To Use
View the start and end dates of pay Pay Period Inquiry (PR21.2)
periods and work periods

Entering Time Records for One Employee by Batch

This procedure covers how to enter time records in batch status for an
employee.

STOP Before you enter time records for one employee by batch, you must
deÞne pay codes and employee pay. For more information, see "Setting Up
Pay Structure" on page 29.

306 Chapter 21 Time Records: Entering Payroll User Guide

 Need More Details? Check out the following concepts:
• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303

STEPS To enter time records for one employee by batch

1. Access Time Entry (PR35.1).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Select the employee you want to enter time records for in the Employee
Þeld.
4. Type the year these time records occur in.
5. Enter time records. Consider the following Þelds.

Hours Hours worked for this time record.

Pay Code The pay code that applies to this time record.
Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
If you use formal positions in the Personnel
Administration application and position rules
are deÞned to default the job code, then the job
code defaults from the position followed by the
employee.
Rate Type the rate of pay for this time record.
– or –
Leave the Þeld blank, and the rate of pay defaults.
For more information, see "Rate of Pay Defaults"
on page 667.
MMDD (Month, Type the month and date of the time record.
Date)
The system uses this Þeld with the Year Þeld to
determine the pay period and work period, and to
select time records for processing.

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 SH (Shift) The shift the pay is associated with, or you can
leave the Þeld blank and let the shift default from
the employee record.
If you use position rules in the Personnel
Administration application, see the Payroll
User Guide for position and pay rate defaulting
information.
CG (Check Group) The check group that hours on this line belong
to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
PG (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.
TF (Tax The option that indicates how you want to
Frequency) override normal taxation.
PD (Payroll If a percent distribution record exists on Payroll
Distribution) Distribution - Employees (PR23.1) for the pay
code entered on the time record, Yes displays.
To override a deÞned percent distribution, change
the Yes to No.

Options for Entering Time Records for One

Employee by batch
The following options are available for entering time records for one employee
by batch:
If you want to Select
view total hours and amounts the Totals special action.
entered for the employee
write comments to store on the time the TRD Comments button.
record
write comments that print on the the PMT Comments button.
employee’s payment
release the time records from batch the Release special action.
to future status

308 Chapter 21 Time Records: Entering Payroll User Guide

Entering Detailed Time Records for One Employee by Batch
This procedure covers how to enter time records with detailed information that
overrides the employee record. Also, you can enter user analysis for use
by Strategic Ledger.

STOP Before you enter detailed time records for one employee by batch,
you must deÞne pay codes and employee pay. For more information, see
"Setting Up Pay Structure" on page 29.

Need More Details? Check out the following concepts:

• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303
• "What are Attendance Codes?" on page 70

STEPS To enter detailed time records for one employee by batch

1. Access Detail Time Entry (PR35.2).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Select the employee you want to enter time records for in the Employee
Þeld.
4. Enter time records. Consider the following Þelds.

Hours Hours worked for this time record.

Pay Code The pay code that applies to this time record.
Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
If you use formal positions in the Personnel
Administration application and position rules
are deÞned to default the job code, then the job
code defaults from the position followed by the
employee.
Date Type the date of the time record.
Payroll uses this Þeld to determine the pay period
and work period and to select time records for
processing.

Payroll User Guide Chapter 21 Time Records: Entering 309

 Rate Type the rate of pay for this time record.
– or –
Leave the Þeld blank and the rate of pay defaults.
For more information, see "Rate of Pay Defaults"
on page 667.
SH (Shift) The shift the pay is associated with, or leave
blank and let the shift default from the employee
record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the shift, then the shift defaults
from the position followed by the employee.
CG (Check Group) The check group that hours on this line belong
to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
PG (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.
TF (Tax The option that indicates how you want to
Frequency) override normal taxation.
PD (Payroll If a percent distribution record exists on Payroll
Distribution) Distribution - Employees (PR23.1) for the pay
code entered on the time record, Yes displays. To
override a deÞned percent distribution, change
the Yes to No.

5. If you use Time and Attendance, you can deÞne attendance information
for the time record. Consider the following Þelds.

OC (Occurrence) Determines if the time record entry is a new

occurrence or a continuation of an existing
occurrence if associated with an attendance
code.

310 Chapter 21 Time Records: Entering Payroll User Guide

 Attend Code Attendance code used to track attendance history
(Attendance in Time and Attendance.
Code)
NOTE If the attendance code is associated with
a pay code, you can leave the Pay Code Þeld
blank and let the pay code associated with the
attendance code default. If the attendance code
is not associated with a pay code, you must enter
a pay code in the Pay Code Þeld.

6. Select the Work tab to override work information. Consider the following
Þelds.

Business Nbr The business number code you want to use for
Code (Business this time record. The business number code is
Number Code) a code representing a business number for a
Canada employer.

NOTE The business number code you type

in this Þeld overrides the one you type in the
Business Number Code Þeld on the Canada tab
of Company (HR00.1) or Process Level (HR01.1).

Quebec Ent Nbr The Quebec enterprise number group you want to
Grp (Quebec use for this time record. The Quebec enterprise
Enterprise number group is a code that represents an
Number Group) enterprise number for a Quebec employer.

NOTE The Quebec enterprise number group you

type in this Þeld overrides the one you type in the
Quebec Enterprise Number Group Þeld on the
Canada tab on Company (HR00.1) or Process
Level (HR01.1).

Payroll User Guide Chapter 21 Time Records: Entering 311

 Location A location to override the location deÞned on
Employee (HR11.1).

NOTE If this time record applies to U.S.

employees and you make a selection in this
Þeld, TaxLocator uses this location to create tax
deductions for these time records.

7. Select the Expenses tab to override the General Ledger or Activity

expense account.
8. Select the Additional Information tab to override pay and position
information. Consider the following Þeld.

Nbr Pay Periods The number of times a bonus is paid during the
(Number of Pay year. The system uses this value to annualize
Periods) the payment. The value is used with bonus type
pay codes and is referred to as the Aggregation
with Pay Periods method.

9. Select the User Analysis tab to deÞne user analysis values used in
Strategic Ledger.

Options for Entering Detail Time Records for One

Employee by batch
The following options are available for entering detail time records for one
employee by batch:
If you want to Select
view total hours and amounts the Totals special action.
entered for the employee
write comments to store on the time the TRD Comments button.
record
write comments that print on the the PMT Comments button.
employee’s payment
release the time records from batch the Release special action.
to future status

Entering Activity Time Records

This procedure covers how to enter time records with activity information
assigned to them. The activity information is used by Project Accounting.

STOP Before you enter activity time records, you must deÞne pay codes,
employee pay, and activities. For more information, see "Setting Up Pay
Structure" on page 29.

312 Chapter 21 Time Records: Entering Payroll User Guide

 Need More Details? Check out the following concepts:
• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303

STEPS To enter activity time records

1. Access Activity Time Entry (PR35.6).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Select the employee you want to enter time records for in the Employee
Þeld.
4. Enter time records. Consider the following Þelds.

Hours Hours worked for this time record.

Activity Code The activity to which you want to post the time
record amount.

NOTE If you leave this Þeld blank, the system

posts the time record amount to the activity from
the pay code, job code, then from the employee
record.

Acct Cat (Account The account category to which you want to post
Category) the time record amount. If you leave this Þeld
blank, the system posts the time record amount
to the account category from the pay code, job
code, then from the employee record.
At Cd (Attendance The attendance code used to track attendance
Code) history in the Time and Attendance application.
Date Type the date of the time record.
The system uses this Þeld to determine the pay
period and work period and to select time records
for processing.
Pay Code The pay code that applies to this time record.

Payroll User Guide Chapter 21 Time Records: Entering 313

 Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the job code, then the job code
defaults from the position and then the employee.
Rate Type the rate of pay for this time record.
– or –
Leave the Þeld blank and the rate of pay defaults
in.
For more information, see "Rate of Pay Defaults"
on page 667..
SH (Shift) The shift the pay is associated with, or you can
leave the Þeld blank and let the shift default from
the employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the shift, then the shift defaults
from the position and then the employee.
CG (Check Group) The check group that hours on this line belong
to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
PG (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.
TF (Tax The option that indicates how you want to
Frequency) override normal taxation.
PD (Payroll If a percent distribution record exists on Payroll
Distribution) Distribution - Employees (PR23.1) for the pay
code entered on the time record, Yes displays. To
override a deÞned percent distribution, change
the Yes to No.

314 Chapter 21 Time Records: Entering Payroll User Guide

 OC (Occurrence) Determines if the time record entry is a new
occurrence or a continuation of an existing
occurrence if it is associated with an attendance
code.

5. Select the Work tab to override work information. Consider the following
Þelds.

Business Nbr Grp The business number group you want to use for
(Business Number this time record. The business number group is
Group) a code that represents a business number for a
Canada employer.

NOTE The Business Number Group you type

in this Þeld overrides the one you type in the
Business Number Group Þeld on the Canada tab
of Company (HR00.1) or Process Level (HR01.1).

Quebec Ent Nbr The Quebec enterprise number group you want to
Grp (Quebec use for this time record. The Quebec enterprise
Enterprise number group is a code that represents an
Number Group) enterprise number for a Quebec employer.

NOTE The Quebec enterprise number group you

type in this Þeld overrides the one you type in the
Quebec Enterprise Number Group Þeld on the
Canada tab on Company (HR00.1) or Process
Level (HR01.1).

Location A location to override the location deÞned on

Employee (HR11.1).

NOTE If this time record applies to

U.S.employees and you make a selection
in this Þeld, TaxLocator uses this location to
create tax deductions for these time records.

6. Select the Expenses tab to override the General Ledger or Activity

expense account.
7. Select the User Analysis tab to deÞne user analysis values used in
Strategic Ledger.

Options for Entering Activity Time Records

The following options are available for entering activity time records:

Payroll User Guide Chapter 21 Time Records: Entering 315

 If you want to Select
view total hours and amounts the Totals special action.
entered for the employee

Entering and Maintaining Current or Future Time Records

This procedure covers how to enter time records in future or current status
or maintain time records after being released from batch status to future or
current status.

STOP Before you enter or maintain current or future time records, you must
deÞne pay codes and employee pay. For more information, see "Setting Up
Pay Structure" on page 29.

Need More Details? Check out the following concepts:

• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303
• "What are Attendance Codes?" on page 70

STEPS To enter and maintain current or future time records

1. Access Time Record Entry (PR36.1).
2. Select the employee you want to enter time records for in the Employee
Þeld.
3. Select the status you want to apply to the time records in the Status Þeld.
4. Enter time records. Consider the following Þelds.

Hours Hours worked for this time record.

Pay Code The pay code that applies to this time record.
Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the job code, then the job code
defaults from the position and then the employee.

316 Chapter 21 Time Records: Entering Payroll User Guide

 Date Type the date of the time record.
The system uses this Þeld to determine the pay
period and work period and to select time records
for processing.
Rate Type the rate of pay for this time record.
– or –
Leave the Þeld blank and the rate of pay defaults
in.
For more information, see "Rate of Pay Defaults"
on page 667.
SH (Shift) The shift the pay is associated with, or you can
leave the Þeld blank and let the shift default from
the employee record.

If you use formal positions in the Personnel

Administration application and position rules are
deÞned to default the shift, then the shift defaults
from the position and then the employee.
CG (Check Group) The check group that hours on this line belong
to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
PG (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.
TF (Tax The option that indicates how you want to
Frequency) override normal taxation.
PD (Payroll If a percent distribution record exists on Payroll
Distribution) Distribution (PR23.1) for the pay code entered
on the time record, Yes displays. To override a
deÞned percent distribution, change the Yes to
No.

5. If you use Time and Attendance, you can deÞne attendance information
for the time record. Consider the following Þelds.

OC (Occurrence) Determines if the time record entry is a new

occurrence or a continuation of an existing
occurrence if it is associated with an attendance
code.

Payroll User Guide Chapter 21 Time Records: Entering 317

 Attend Code Attendance code used to track attendance history
(Attendance in Time and Attendance.
Code)
TIP If the attendance code is associated with
a pay code, you can leave the Pay Code Þeld
blank and let the pay code associated with the
attendance code default. If the attendance code
is not associated with a pay code, you must enter
a pay code in the Pay Code Þeld.

6. Select the Work tab to override work information. Consider the following
Þelds.

Business Nbr Grp The business number group you want to use for
(Business Number this time record. The business number group is
Group) a code that represents a business number for a
Canada employer.

NOTE The Business Number Group you type

in this Þeld overrides the one you type in the
Business Number Group Þeld on the Canada tab
of Company (HR00.1) or Process Level (HR01.1).

Quebec Ent Nbr The Quebec enterprise number group you want to
Grp (Quebec use for this time record. The Quebec enterprise
Enterprise number group is a code that represents an
Number Group) enterprise number for a Quebec employer.

NOTE The Quebec enterprise number group

you type in this Þeld overrides the number typed
in the Quebec Enterprise Number Group Þeld
on the Canada tab on Company (HR00.1) or
Process Level (HR01.1).

318 Chapter 21 Time Records: Entering Payroll User Guide

 Location A location to override the location deÞned on
Employee (HR11.1).

NOTE If this time record applies to

U.S.employees and you make a selection
in this Þeld, TaxLocator uses this location to
create tax deductions for these time records.

7. Select the Expenses tab to override the General Ledger or Activity

expense account.
8. Select the Additional Information tab to override pay and position
information. Consider the following Þeld.

Nbr Pay Periods The number of times a bonus is paid during the
(Number of Pay year. The system uses this value to annualize
Periods) the payment. This is used with bonus type pay
codes and is referred to as the Aggregation with
Pay Periods method.

9. Select the User Analysis tab to deÞne user analysis values used in
Strategic Ledger.

Options for Entering and Maintaining Current or

Future Time Records
The following options are available for entering and maintaining current or
future time records:
If you want to Select
view total hours and amounts the Totals special action.
entered for the employee
write comments to store on the time the TRD Comments button.
record
write comments that print on the the PMT Comments button.
employee’s payment
release the time records from batch the Release special action.
to future status

Speed Entering Time Records for Multiple Employees

Speed time entry forms let you enter time records for employees in a speciÞc
process level, department, employee group, or user level using speciÞc pay
codes.
Speed time entry lets you customize the time entry form with speciÞc pay
codes and employees for faster record entry.You can also use speed time
entry to ensure all pay clerks use the correct pay codes with the appropriate
employees.

Payroll User Guide Chapter 21 Time Records: Entering 319

 To use speed time entry you must set up the speed time entry forms for each
batch and then enter time records.
"Setting Up Speed Time Entry" on Set up which pay codes and
page 320 employees you want to perform
speed entry for. You need to set up
forms for each batch you want to
perform speed entry for.
"Speed Entering Time Records by Speed enter time records for
Employee Name" on page 321 employees listed by employee last
name.
"Speed Entering Time Records by Speed enter time records for
Employee Number" on page 322 employees listed by employee
number.

Setting Up Speed Time Entry

Before you can use the speed time entry forms, you must select the pay
codes and employees for each batch you want to speed enter.
You can choose to save the settings for each batch, which means you do not
need to perform this setup every pay cycle.

STOP Before you set up speed time entry, you must set up pay codes and
attendance codes. For more information, see "Setting Up Pay Structure"
on page 29.

Need More Details? Check out the following concepts:

• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301

STEPS To set up speed time entry

1. Access Speed Entry Setup (PR33.1).
2. Type the number of the batch you want to select criteria for in the Batch
Þeld.
3. Type the date you want to assign to all the time records for this batch in
the Time Record Date Þeld.
4. Select the pay codes you want to use for speed entry. Consider the
following Þelds.

Hours Select up to four pay codes for hours entry. The

selected pay codes appear as headers for time
record information Þelds in Speed Entry - Number
(PR33.2) and Speed Entry - Name (PR33.3).

320 Chapter 21 Time Records: Entering Payroll User Guide

 Amount Select one pay code for amount entry. The
selected pay codes appear as headers for time
record information Þelds in Speed Entry - Number
(PR33.2) and Speed Entry - Name (PR33.3).
NOTE A pay code tied 5. Select up to four attendance codes to track attendance detail for reporting
to an attendance code in theTime and Attendance application in the Attendance Codes, Hours
defaults in the Pay Code
Þelds.
Þeld.
6. Select the employees you want to use for speed entry. Consider the
following Þelds.

Process Level If you select a process level, only employees

associated with the selected process level display
on the speed entry screens.
Department Select a department.
If you select a department, only employees
associated with the selected department display
on the speed entry screens.
Employee Group Select an employee group.
If you select an employee group, only employees
associated with the selected employee group
display on the speed entry screens.
User Level Select a user level.
If you select a user level, only employees
associated with the selected user level display on
the speed entry screens.
TIP If you select yes 7. Select whether or not you want to delete the set up for this batch when
in the Delete Batch you release the batch in the Delete Batch Number Þeld
Number Þeld, you must
set this form up again
during the next payroll Speed Entering Time Records by Employee Name
cycle.
You can speed enter time records by employee last name.

STOP You must set up speed time entry before you speed enter time
records by employee name. For more information, see "Setting Up Speed
Time Entry" on page 320.

Payroll User Guide Chapter 21 Time Records: Entering 321

 Need More Details? Check out the following concepts:
• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299

STEPS To speed enter time records by employee name

1. Access Speed Entry by Name (PR33.3).
2. Select the batch you want to enter time records for in the Batch Þeld.
3. Choose the Inquire form action to display pay codes and employee
names.
4. Type the hours worked under the appropriate paycode for each employee
who needs time records created.
5. If an employee has an amount time record, type the amount in the Amount
pay code Þeld.

Speed Entering Time Records by Employee Number

You can speed enter time records by employee number.

STOP You must set up speed time entry before you speed enter time
records by employee number. For more information, see "Setting Up Speed
Time Entry" on page 320.

Need More Details? Check out the following concepts:

• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299

STEPS To speed enter time records by employee name

1. Access Speed Entry by Number (PR33.2).
2. Select the batch for which you want to enter time records in the Batch Þeld.
3. Choose the Inquire form action to display pay codes and employee
numbers.
4. Type the hours worked under the appropriate paycode for each employee
who needs time records created.
5. If an employee has an amount time record, type the amount in the Amount
pay code Þeld.

Options for Speed Entering Time Records by

Employee Number
The following options are available for speed entering time records by
employee number.

322 Chapter 21 Time Records: Entering Payroll User Guide

 If you want to Select
view total hours and amounts the Totals special action.
entered for the employees

Entering Time Records for Multiple Employees

This procedure covers how to enter time records for more than one employee
using the same form. These time records do not contain a great amount
of detail.

STOP Before you enter time records for multiple employees, you must
deÞne pay codes and employee pay. For more information, see "Setting Up
Pay Structure" on page 29.

Need More Details? Check out the following concepts:

• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303

STEPS To enter time records for multiple employees

1. Access Speed Time Entry (PR35.3).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Type the time record date for these time records in the Time Record Date
Þeld.
4. Select grouping options. Consider the following Þelds.

CG (Check Group) The check group that hours on this line belong
to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
PG (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.

Payroll User Guide Chapter 21 Time Records: Entering 323

 TF (Tax The option that indicates how you want to
Frequency) override normal taxation.

5. Enter time records. Consider the following Þelds.

Employee The employee this time record applies to.

Hours Hours worked for this time record.
Rate Type the rate of pay for this time record.
– or –
Leave the Þeld blank and the rate of pay defaults.
For more information, see "Rate of Pay Defaults"
on page 667.
Pay Code The pay code that applies to this time record.
Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the job code, then the job code
defaults from the position and then the employee.
SH (Shift) The shift the pay is associated with. You can
leave the Þeld blank and let the shift default from
the employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the shift, then the shift defaults
from the position and then from the employee.

Options for Entering Time Records for Multiple

Employees
The following options are available for entering time records for multiple
employees.
If you want to Select
view total hours and amounts the Totals special action.
entered for the employees

Entering Step and Grade or Grade Range Schedule Time

Records
This procedure covers how to enter time records for employees assigned to a
step and grade or grade range schedule.

324 Chapter 21 Time Records: Entering Payroll User Guide

 You set up grade range schedules in the Personnel Administration
application.

STOP Before you enter step and grade or grade range schedule time
records, you must deÞne pay codes and step and grade or grade range
schedules. For more information, see the Personnel Administration User
Guide. For more information, see "Setting Up Pay Structure" on page 29.

Need More Details? Check out the following concepts:

• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303
• "What are Step and Grade Schedules?" on page 41

STEPS To enter step and grade or grade range schedule time

records
1. Access Step and Grade, Grade Range Time Entry (PR35.4).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Type the time record date for these time records in the Time Record Date
Þeld.
4. Select grouping options. Consider the following Þelds.

Check (Check The check group that hours on this line belong
Group) to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
Process (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.

5. Enter time records. Consider the following Þelds.

Hours Hours worked for this time record.

Pay Code The pay code that applies to this time record.

Payroll User Guide Chapter 21 Time Records: Entering 325

 Schedule If this is a Step and Grade time record, select a
schedule.
– or –
Leave the Þeld blank and let the schedule default
from the employee record.
If this is a Grade Range time record, select a
schedule, or leave the Þeld blank and let the
schedule default from the job code, then from the
employee record.
If you use position management in the Personnel
Administration application and the position rules
are deÞned to default schedule from positions,
the schedule Þrst defaults from the employee
multiple position record, then from the either the
job code (if you do not use formal positions) or
position (if you use formal positions).
Grade If this is a Step and Grade time record, select a
grade.
– or –
Leave the Þeld blank and let the grade default
from the employee record.
If this is a Grade Range time record, select a
grade, or leave the Þeld blank and let the grade
default from the job code, then from the employee
record.
If you use position management in the Personnel
Administration application and position rules are
deÞned to default schedule from positions, the
grade Þrst defaults from the employee multiple
position record, then from either the job code (if
you do not use formal positions) or position (if
you use formal positions).
Step If this is a Step and Grade time record, select a
step.
– or –
Leave the Þeld blank and let the step default from
the employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default step from positions, the step
Þrst defaults from the employee multiple position
record, then from the formal position code.

326 Chapter 21 Time Records: Entering Payroll User Guide

 Job Code The job code with which the pay is associated.
– or –
Leave the Þeld blank and let the job code default
from the employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the job code, then the job code
defaults from the position and then the employee.

6. Select the Work tab to override work information. Consider the following
Þelds.

Business Nbr The business number code you want to use for
Code (Business this time record. The business number code is
Number Code) a code representing a business number for a
Canada employer.

NOTE The business number code you type

in this Þeld overrides the one you type in the
Business Number Code Þeld on the Canada tab
of Company (HR00.1) or Process Level (HR01.1).

Quebec Ent Nbr The Quebec enterprise number group you want to
Grp (Quebec use for this time record. The Quebec enterprise
Enterprise number group is a code that represents an
Number Group) enterprise number for a Quebec employer.

NOTE The Quebec enterprise number group you

type in this Þeld overrides the one you type in the
Quebec Enterprise Number Group Þeld on the
Canada tab on Company (HR00.1) or Process
Level (HR01.1).

Location A location to override the location deÞned on

Employee (HR11.1).

NOTE If this time record applies to

U.S.employees and you make a selection
in this Þeld, TaxLocator uses this location to
create tax deductions for these time records.

7. Select the Expenses tab to override the General Ledger or Activity

expense account.
8. Select the User Analysis tab to deÞne user analysis values used in
Strategic Ledger.

Payroll User Guide Chapter 21 Time Records: Entering 327

Entering Attendance Time Records
This procedure covers how to enter time records for employees and assign
the time records to an attendance code or occurrence.

STOP Before you enter attendance time records, you must deÞne pay
codes. For more information, see "DeÞning Pay Codes" on page 58.

Need More Details? Check out the following concepts:

• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303
• "What are Attendance Codes?" on page 70

STEPS To enter attendance time records

1. Access Attendance Time Entry (PR35.5).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Select grouping options. Consider the following Þelds.

Check (Check The check group that the hours for these time
Group) records belong to. Time records with a common
entry in this Þeld are grouped on one payment
record for the employee. If multiple payments are
desired, type a different value.
Process (Process The process group that hours for these time
Group) records belong to. Time records with a common
value in this Þeld are grouped for tax calculation
purposes. Process groups let you tax pay codes
separately, but combine earnings in a single
payment.

328 Chapter 21 Time Records: Entering Payroll User Guide

 Tax Freq (Tax The option that indicates how you want to
Frequency) override normal taxation.

4. Enter time records. Consider the following Þelds.

Employee The employee this time record applies to.

Date The time record date. If left blank, the system
date defaults.
Hours Hours worked for this time record.
At Cd (Attendance Select an attendance code to track attendance
Code) history if you use the Time and Attendance
application.
Att Occ If the time record is associated with an attendance
(Attendance code, select the value that determines if the
Occurrence) time record entry is a new occurrence or a
continuation of an existing occurrence.
Pay Code The pay code that applies to this time record.
Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the job code, then the job code
defaults from the position and then the employee.
SH (Shift) The shift the pay is associated with, or you can
leave the Þeld blank and let the shift default from
the employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the shift, then the shift defaults
from the position and then the employee.

Entering Position Time Records

This procedure covers how to enter time records for employees assigned
to a position.

You set up positions in the Personnel Administration application.

STOP Before you enter position time records, you must set up pay codes
and positions. For more information, see the Personnel Administration User
Guide. For more information, see "DeÞning Pay Codes" on page 58.

Payroll User Guide Chapter 21 Time Records: Entering 329

 Need More Details? Check out the following concepts:
• "Which Time Record Entry Method Should I Use?" on page 296
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303

STEPS To enter position time records

1. Access Position Time Entry (PR35.8).
2. Type the batch number you want to assign to the time records in the
Batch Þeld.
3. Select grouping options. Consider the following Þelds.

CG (Check Group) The check group that hours on this line belong
to. Time records with a common entry in this
Þeld are grouped on one payment record for the
employee. If multiple payments are desired, type
a different value.
PG (Process The process group that hours on this line belong
Group) to. Time records with a common value in this
Þeld are grouped for tax calculation purposes.
Process groups let you tax pay codes separately,
but combine earnings in a single payment.
TF (Tax The option indicating how you want to override
Frequency) normal taxation.

4. Type the year these time records occur in.

5. Enter time records. Consider the following Þelds.

Employee The employee this time record applies to.

Hours Hours worked for this time record.
Pay Code The pay code that applies to this time record.
MMDD (Month, Type the month and date of the time record.
Date)
The system uses this Þeld with the Year Þeld to
determine the pay period and work period, and to
select time records for processing.
Position The position that applies to this time record.

330 Chapter 21 Time Records: Entering Payroll User Guide

 Job Code The job code with which the pay is associated.
If left blank, the job code defaults from the
employee record.
If you use formal positions in the Personnel
Administration application and position rules are
deÞned to default the job code, then the job code
defaults from the position and then the employee.
Rate Type the rate of pay for this time record
– or –
Leave the Þeld blank and the rate of pay defaults.
For hourly employees, the amount is considered
an hourly rate and is multiplied by the hours
entered on the time record. For salaried
employees, the amount entered overrides normal
salary amounts for pay codes with calculation
type of Normal Rate and is not multiplied by the
hours entered.
For more information, see "Rate of Pay Defaults"
on page 667.

6. Select the Work tab to override work information. Consider the following
Þelds.

Business Nbr The business number code you want to use for
Code (Business this time record. The business number code is
Number Code) a code representing a business number for a
Canada employer.

NOTE The business number code you type

in this Þeld overrides the one you type in the
Business Number Group Þeld on the Canada tab
of Company (HR00.1) or Process Level (HR01.1).

Quebec Ent Nbr The Quebec enterprise number group you want to
Grp (Quebec use for this time record. The Quebec enterprise
Enterprise number group is a code that represents an
Number Group) enterprise number for a Quebec employer.

NOTE The Quebec enterprise number group you

type in this Þeld overrides the one you type in the
Quebec Enterprise Number Group Þeld on the
Canada tab on Company (HR00.1) or Process
Level (HR01.1).

Payroll User Guide Chapter 21 Time Records: Entering 331

 Location A location to override the location deÞned on
Employee (HR11.1).

NOTE If this time record applies to

U.S.employees and you make a selection
in this Þeld, TaxLocator uses this location to
create tax deductions for these time records.

7. Select the Expenses tab to override the General Ledger or Activity

expense account.
8. Select the User Analysis tab to deÞne user analysis values used in
Strategic Ledger.

Creating Automatic Time Records

This procedure covers how to update Payroll to automatically create time
records for those employees with standard time records.

STOP Before you update automatic time records you must assign standard
time records to employees. For more information, see "Assigning Standard
Time Records" on page 278.

Need More Details? Check out the following concepts:

• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302
• "What is a Check Group?" on page 303
• "What are Payroll Distributions?" on page 262

STEPS To create automatic time records

1. Access Automatic Time Records (PR134).
2. Select the type of time records you want to create in the Time Record
Type Þeld:

332 Chapter 21 Time Records: Entering Payroll User Guide

 If you want to Select
Create standard time records Standard.
for employees with a value of
Standard or Yes in the Auto Time
Record Þeld on their employee
record and have an active
standard time record in Standard
Time Record (PR30.1)
Create time group time records Employee Group.
for employees who have a value
of Time Group or Yes in the
Auto Time Record Þeld on their
employee record and are included
in an active time group time record
deÞned in Standard Time Record
(PR30.1)

Create ßex standard time Flex BeneÞt.

records for employees who have
an active ßex standard time
record created by the BeneÞts
Administration application for a
ßex plan. The system does not
perform an edit on the Auto Time
Record Þeld of the employee
record for this option
Override pay codes deÞned in Override Pay Codes.
Standard Time Record (PR30.1)
for active standard or time group
time records for employees who
have a value of Yes, Standard,
or Time Group in the Auto Time
Record Þeld on their employee
record. This does not affect ßex
standard time records
Create standard and time group Standard and Employee Group.
time records for employees who
have a value of Yes, Standard,
or Time Group in the Auto Time
Record Þeld on their employee
record and have an active
standard or time group time record
deÞned in Standard Time Record
(PR30.1)

Payroll User Guide Chapter 21 Time Records: Entering 333

 If you want to Select

Create standard and time group Standard, Employee Group, and

time records for employees who Flex.
have a value of Standard, Time
Group, or Yes in the Auto Time
Record Þeld on their employee
record and have an active
standard or time group time record
deÞned in Standard Time Record
(PR30.1), and for employees who
have an active ßex standard time
record created by the BeneÞts
Administration application for a
ßex plan

Create standard time records Standard and Flex.

for employees who have a value of
Standard or Yes in the Auto Time
Record Þeld on their employee
record and for employees who
have an active ßex standard time
record created by the BeneÞts
Administration application for a
ßex plan.

3. DeÞne time record information. Consider the following Þelds.:

Batch If auto batch numbering is deÞned on the Payroll

form tab in Company (HR00.1), for the selected
company, leave the Batch Þeld blank to create a
new batch, or you can select an existing batch.
If auto batch numbering is not deÞned for the
selected company, type the batch number to be
used.
Time Rec Date The time record date. Payroll uses the time
(Time Record record date to determine the pay period and work
Date) period and to select time records for processing.
Deduction Cycle Type a value of 1-9 to determine which deduction
cycle time records are created in.

4. DeÞne how Payroll selects the employees to create automatic time

records for. Consider the following Þelds.

Processing Group To create automatic time records for a speciÞc

processing group, select a processing group.
Process Level To create time records for only eligible employees
in a speciÞc process level, select a process level.
Department To create time records for only eligible employees
in a speciÞc department, select a department.

334 Chapter 21 Time Records: Entering Payroll User Guide

 Flex Date If you want to create time records for ßex credits
that employees receive as pay, regardless of the
Auto Time Record Þeld value on their employee
records, type a Flex Date.
Pay Frequency Select a pay frequency to create time records for
only employees associated with the selected pay
frequency.
Employee Group Select up to ten employee groups for which you
want to create time records.
Employee Select up to Þfteen employees for whom you
want to create time records.

5. If you want to apply a check group to all the time records created by
PR134, type a value in the Check Group Þeld at the top of the Additional
Information tab.
6. If you want to apply a process group to all the time records created by
PR134, type a value in the Process Group Þeld at the top of the Additional
Information tab.
7. DeÞne additional information for speciÞc pay codes. Consider the
following Þelds.:

Attend Code If you track attendance in Time and Attendance,

(Attendance select an attendance code to create a time record
Code) for a speciÞc attendance code.
For time record types of Standard, Employee
Group, or Standard And Employee Group, a time
record associated with the attendance code is
created in addition to the time record created
using the parameters deÞned in Standard Time
Record (PR30.1).
For time record type Override Pay Codes, the
pay code associated with the attendance code
replaces the standard time records created using
the parameters deÞned in PR30.1.
OC (Occurrence) If you selected an attendance code in the
Attendance Code Þeld, select Yes to indicate that
the record is an attendance occurrence or select
No to indicate that the record is a continuation of
an existing occurrence.

Payroll User Guide Chapter 21 Time Records: Entering 335

 Paycode For time record types Standard, Employee
Group, or Standard And Employee Group, select
a pay code to create a time record for a speciÞc
pay code in addition to the time record created
from parameters deÞned in Standard Time
Record (PR30.1).
For time record type Override Pay Codes, select
a pay code to override the pay code deÞned in
PR30.1.
Hours The hours you want to associate with the selected
pay code.
CG (Check Group) The check group you want to assign to the time
records created for this pay code.

NOTE This check group overrides the check

group you selected at the top of this tab for the
time records created for the selected pay code.

PG (Process The process group you want to assign to the time

Group) records created for this pay code.

NOTE This process group overrides the process

group you selected at the top of this tab for the
time records created for the selected pay code.

Activity Select the activity to which you want to post the

time record amount. If you leave this Þeld blank,
the application posts the time record amount to
the activity from the pay code, job code, then
from the employee record.
Acct Cat (Account Select the account category to which you want
Category) to post the time record amount. If you leave this
Þeld blank, the application posts the time record
amount to the account category from the pay
code, job code, then from the employee record.

8. Run the report.

336 Chapter 21 Time Records: Entering Payroll User Guide

 Related Reports and Inquiries
To Use
List standard time records Standard Time Record Listing
(PR230)

Deleting Batches
If you accidentally enter two batches that have the same time record
information or if you enter an incorrect batch, you can delete the batches.

Need More Details? Check out the following concepts:

• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299

STEPS To delete batches

1. Access Batch Time Control (PR37.1).
2. Choose the Inquire form action to display existing batches.
3. Select Delete in the Line Action Þeld of the batch you want to delete.
4. Choose the Change form action.

Related Reports and Inquiries

To Use
Delete batches Batch Time Record Update (PR137),
report option 4

NOTE No selection criteria are

required with this option.

Payroll User Guide Chapter 21 Time Records: Entering 337

338 Chapter 21 Time Records: Entering Payroll User Guide
Chapter 22

Time Records: Pension Payments

This chapter covers how to create pension payments for U.S. pension
recipients. These payments are set up to report 1099R information.

IMPORTANT This feature is for U.S. pension payments only.

STOP Your organization must install BSI Pension TaxTM to issue pension
payments.

Payroll User Guide Chapter 22 Time Records: Pension 339

Payments
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 344 • "What are Pension Payments?" on page 340
• "What are Pension Distribution Types?" on page 340
• "What are Pension Distribution Codes?" on page 342
• "What Do I Need to Set Up to Process Pension Payments?" on page
342

What are Pension Payments?

Pension payments are the payouts to employees of pension or retirement
plan funds. Payroll creates pension payments by Þrst creating time records
for the payment amount and then creating the payment when you run the
payroll cycle.
There are two types of pension payments:
• Periodic
• Lump sum

What are Periodic Pension Payments?

Periodic pension payments are payouts of pension or retirement funds that
occur over a period of time and have at least one payment per year.
When you create a periodic pension payment, Payroll creates a standard
time record for the payment, and gives the payment an alphabetic value in
the Check Group Þeld on the time record. All time records associated with a
pension payment record share the same check group value.

What are Lump Sum Pension Payments?

Lump sum pension payments are payouts of pension or retirement funds
that occur once or that occur over a period of time, but do not occur at least
once a year.
Payroll creates a future time record with an alphabetic check group value for
each lump sum payment. All time records associated with a pension payment
record share the same check group value.

What are Pension Distribution Types?

Pension distribution types determine whether the pension payment is a
periodic or lump sum payment, the taxing method, the type of pension
payment.

340 Chapter 22 Time Records: Pension Payments Payroll User Guide

 Listed below are the distribution types that can be assigned to a payment.
The table also includes the type of payment and type of time record Payroll
creates for the distribution type.
Distribution Type Type of Payment Type of Time Record
Partial, Hardship Lump Sum Future
Partial, Non-Hardship Lump Sum Future
Partial, Rollover to IRA Lump Sum Future
Total, Non-Rollover Lump Sum Future
Total Rollover to IRA Lump Sum Future
Total Rollover to Lump Sum Future
QualiÞed Plan
Periodic, greater 10 Periodic Standard
years
Periodic, less 10 years Periodic Standard
Periodic, less 10 years, Periodic Standard
rollover to IRA
Periodic, Tax Not Periodic Standard
Determined
Periodic, W-2 Periodic Standard
Lump Sum Payment, Lump Sum Future
W-2
Retro-payment Lump Sum Future
Retro-payment, Lump Sum Future
rollover to IRA
Loan Issued Lump Sum Future
Dividend Lump Sum Future
Minimum Distribution Lump Sum Future
Excess Deferrals Lump Sum Future
Non-spousal death Lump Sum Future
beneÞt
Periodic Non Resident Periodic Standard
Alien (NRA), 1042S
Lump Sum NRA, Lump Sum Future
1042S
Periodic, 480.6 Periodic Standard
Lump Sum, 480.6 Lump Sum Future
Retro, W2 Lump Sum Future

Payroll User Guide Chapter 22 Time Records: Pension 341

Payments
What are Pension Distribution Codes?
Pension distribution codes determine the how Payroll reports distribution
payments on the 1099R tax form and whether or not Payroll creates multiple
1099Rs. For more information on reporting on the 1099R, contact the Internal
Revenue Service at www.irs.gov.

What Do I Need to Set Up to Process Pension Payments?

To process pension payments you must perform set up in both the Human
Resources and Payroll applications.

Human Resources
Company and Process Level
In the Human Resources application, when you set up a company, you must
select the type of tax reporting forms that are valid for the company.
You can override the company value on the process level.

Employee
The participant must have an employee record that includes a state of
residence and a work location of “pension.” The pension location is a
hard-coded value that edits against federal and state deductions that generally
are not deducted for pension payments.
Also, if the employee has periodic pension payments, you must set up the
employee to use auto time records.

Payroll
Pay Summary Group
On each pay summary group to be used for pension payments, you must
specify which U.S. form to report on or specify if the reporting is non-U.S. If
the form is 1099R you can deÞne the type of 1099R income, as well. These
parameters cannot be changed once history exists because it will affect
1099R history.
Lawson does not support reporting on 1099DIV, 1042S or 480.6 forms. Data
for the forms Lawson does not support are updated to the 1099Rhist Þle. You
can export this data and report on it. You also must deÞne how Payroll reports
pension earnings on the 1099R. This information is used during payroll close
to update the 1099R history Þles.

Funding Sources
You must set up the funding sources your company uses for pension
payments. For more information, see "Setting Up Pension Funding Sources"
on page 193.

342 Chapter 22 Time Records: Pension Payments Payroll User Guide

 Employee Taxes
Employees can claim exempt from withholding on their W4 or W4P. You can
indicate this option on the employee tax. If employees claim exempt, taxable
wages are updated but no taxes are withheld.

IMPORTANT If you deÞne a tax deduction as exempt withholding, that

exemption applies taxable wages but does not withhold taxes from any
payments made to this employee.

Pension Payments
You must add and process pension payments after you complete all the
required set up. For more information, see "What are Pension Payments?"
on page 340.

Payroll User Guide Chapter 22 Time Records: Pension 343

Payments
Procedures in this Chapter
You can create either periodic or lump sum pension payments.
• "Creating Periodic Pension Payments" on page 344
• "Creating Lump Sum Pension Payments" on page 347

Creating Periodic Pension Payments

Periodic pension payments are payouts of pension or retirement funds that
occur over a period of time and have a least one payment per year.

Need More Details? Check out the following concepts:

• "What are Pension Payments?" on page 340
• "What are Pension Distribution Types?" on page 340
• "What are Pension Distribution Codes?" on page 342
• "What are Payroll Distributions?" on page 262
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302

STEPS To create periodic pension payments

1. Access Pension Payment Maintenance (PR29.1).
2. Select the participant you want to create the pension payment for in the
Participant Þeld.
NOTE The effective 3. Type the effective date range in the Effective Date Þelds. You must enter
date range is applied to a beginning date and an end date.
the standard time record
Payroll creates for this 4. DeÞne the parameters of the pension payment on the Main tab. Consider
periodic payment. the following Þelds.

Distribution Type Select a periodic distribution type.

Distribution Code Select the code or codes determining how Payroll
(1) reports the pension payment to the 1099R. This
code is reported on the 1099R and Payroll uses
the code to determine if it creates more than one
1099R.
Distribution Code A pension payment can have two distribution
(2) codes associated with it.
Tax Category The tax category defaults, based on the selection
you make in the Distribution Type Þeld.

344 Chapter 22 Time Records: Pension Payments Payroll User Guide

 Process Level If you want to override the participant process
level, select the process level you want to
associate with the pension payment.
Payroll assigns this process level to the standard
time record created for this pension payment.
Payroll uses this process level to determine the
reporting entity for this payment.
Department If you want to override the participant department,
select the department you want to associate with
the pension payment.
Payroll assigns this department to the standard
time record created for this pension payment.
Addl Federal Type an additional amount to withhold from
Tax (Additional federal tax for this pension payment. This
Federal Tax) Þeld overrides any additional amount on U.S.
Employee Taxes (PR13.1) for federal tax.
Tax Frequency If you want to override the participant’s current
Override tax frequency, select a value in this Þeld.
If you select a tax frequency, you must select a
process group.
Process Group Type a numeric process group to deÞne the
deduction cycle for this payment. Type an
alphabetic process group to use as a break level
on Earnings and Deductions Calculation (PR140)
that is passed to BSI. All time records for this
payment have the same process group.
Percent Total Dist Enter the beneÞciary’s percent of the total
(Percent Total distribution. This is reported on the 1099R.
Distribution)

5. DeÞne the funding sources you want to use to pay this pension payment
on the Source tab. Consider the following Þelds.

Source The funding source you want to issue the pension

payment from.
You can use more than one funding source for
each pension payment.

Payroll User Guide Chapter 22 Time Records: Pension 345

Payments
 Amount The amount you want to issue from this funding
source.

6. DeÞne the standard time record you want Payroll to create on the Time
Record tab. Consider the following Þelds.

Pay (Pay Code) The pay code you want to use to create the
standard time record for this pension payment.
You can use more than one pay code for each
pension payment.
Amount The amount you want to associate with this pay
code.

IMPORTANT The number of sources and number of pay codes do not

need to match, but the total dollar amount of the sources and time records
must equal each other before you can add the pension payment.

7. If the recipient of the payment is someone other than the participant,

deÞne the recipient’s name and address on the Payment tab.
8. If you need to override the direct deposit information set up for the
participant, override it on the Direct Deposit tab.

Follow-up Tasks
To include pension payments in a payroll cycle, you must create automatic
time records before you run the payroll cycle. For more information, see
"Creating Automatic Time Records" on page 332.

Options for Creating Periodic Pension Payments

You can also use PR29.1 to make changes to periodic pension payments.
If you make a change to an existing periodic payment, Payroll automatically
updates Standard Time Record (PR30.1); however, if any time records exist
at the time of the change, you must delete the time records and run Automatic
Time Records (PR134).

Related Reports and Inquiries

To Use
List funding sources Ee Garnishment Listing (PR225)
List standard time records Standard Time Record Listing
(PR230)
List pension payments Pension Participants Listing (PR229)

346 Chapter 22 Time Records: Pension Payments Payroll User Guide

Creating Lump Sum Pension Payments
TIP If you make a Lump sum pension payments are payouts of pension or retirement funds that
change to an existing occur in a single payment.
lump sum payment,
Payroll automatically
updates Time Record Need More Details? Check out the following concepts:
Entry (PR36.1).
• "What are Pension Payments?" on page 340
• "What are Pension Distribution Types?" on page 340
• "What are Pension Distribution Codes?" on page 342
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is a Process Group?" on page 302

STEPS To create lump sum pension payments

1. Access Pension Payment Maintenance (PR29.1).
2. Select the participant you want to create the pension payment for in the
Participant Þeld.
TIP The effective date 3. Type the effective date in the Effective Date Þeld.
is applied to the future 4. DeÞne the parameters of the pension payment on the Main tab. Consider
time records Payroll
creates for this lump the following Þelds.
sum payment.
Distribution Type Select a lump sum distribution type.
Distribution Code Select the code or codes determining how Payroll
(1) reports the pension payment to the 1099R. This
code is reported on the 1099R and Payroll uses
the code to determine if it creates more than one
1099R.
Distribution Code A pension payment can have two distribution
(2) codes associated with it.
Tax Category The tax category defaults in based on the
selection you make in the Distribution Type Þeld.
Process Level If you want to override the participant process
level, select the process level you want to
associate with the pension payment.
Payroll assigns this process level to the future
time record created for this pension payment.
Payroll uses this process level to determine the
reporting entity for this payment.
Department If you want to override the participant department,
select the department you want to associate with
the pension payment.
Payroll assigns this department to the future time
record created for this pension payment.

Payroll User Guide Chapter 22 Time Records: Pension 347

Payments
 Addl Federal Type an additional amount to withhold from
Tax (Additional federal tax for this pension payment. This
Federal Tax) Þeld overrides any additional amount on U.S.
Employee Taxes (PR13.1) for federal tax.
Tax Frequency If you want to override the participant’s current
Override tax frequency, select a value in this Þeld.
If you select a tax frequency, you must select a
process group.
Process Group Type a numeric process group to deÞne the
deduction cycle for this payment. Type an
alphabetic process group to use as a break level
on Earnings and Deductions Calculation (PR140)
that is passed to BSI. All time records for this
payment have the same process group.
Percent Total Dist Enter the beneÞciary’s percent of the total
(Percent Total distribution. This is reported on the 1099R.
Distribution)

5. DeÞne the funding sources you want to use to pay this pension payment
on the Source tab. Consider the following Þelds.

Source The funding source you want to issue the pension

payment from.

TIP You can use more than one funding source

for each pension payment.

Amount The amount you want to issue from this funding

source.

6. DeÞne the standard time record you want Payroll to create on the Time
Record tab. Consider the following Þelds.

Pay (Pay Code) The pay code you want to use to create the future
time record for this pension payment.

TIP You can use more than one pay code for
each pension payment.

348 Chapter 22 Time Records: Pension Payments Payroll User Guide

 Amount The amount you want to associate with this pay
code.

IMPORTANT The number of sources and number of pay codes do not

need to match, but the total dollar amount of the sources and total amount
of time records must equal each other before you can create the pension
payment.

7. If the recipient of the payment is someone other than the participant,

deÞne the recipient’s name and address on the Payment tab.
8. If you need to override the direct deposit information set up for the
participant, override it on the Direct Deposit tab.

Related Reports and Inquiries

To Use
List funding sources Ee Garnishment Listing (PR225)
List future time records Time Record Edit (PR135)
List Pension Payments Pension Participants Listing (PR229)

Payroll User Guide Chapter 22 Time Records: Pension 349

Payments
350 Chapter 22 Time Records: Pension Payments Payroll User Guide
Chapter 23

Time Records: Moving

This chapter covers how to move time records from batch status to current
status, making the records available for payroll processing. You release batch
status time records to future status and then select future status time records
to current status.

STOP Before you move time records, you must create one-time
deductions, time records, or pension payment records. For more information,
see "Maintaining One-Time Deductions" on page 289. For more information,
see "Time Records: Entering" on page 295. For more information, see "Time
Records: Pension Payments" on page 339.

Payroll User Guide Chapter 23 Time Records: Moving 351

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 354 • "What is Moving Time Records?" on page 352
• "Why Would I Release and Select in Two Steps Rather Than One?"
on page 353

What is Moving Time Records?

Moving time records is the process of changing time records from batch to
current status. Moving time records consists of releasing time records from
batch to future status and selecting time records from future to current status.
Time records must be in current status to be included in payroll processing.
Payroll only processes time records that have a status of current.
You can choose to move time records directly from batch to current, or you can
release time records to future status and then select them to current status.
Figure 25. Moving Time Records

Batch

Release

Releasing and
Future Selecting

Select

Current

352 Chapter 23 Time Records: Moving Payroll User Guide

Why Would I Release and Select in Two Steps Rather Than
One?
Whether you move time records in one or two steps depends on the needs
of your organization.
Moving time records in two steps provides an additional level of time record
veriÞcation. You can choose to review time record accuracy before you
release batches, after you release batches to future status, and after you
select time records to current status.
If you release and select in one step, you can review time record accuracy
before you release batches and after you select time records to current status.
Some organizations have different functional positions perform the release
and the select procedures. For example, the payroll supervisor might release
time records, and the payroll manager might select the time records to current
status for processing. Also, an organization might want more checks and
balances before processing the time records. If this is the case with your
organization, Lawson recommends moving time records in two steps.

IMPORTANT If your organization uses batch control to control hours and

amounts, you must move time records in two steps.

Payroll User Guide Chapter 23 Time Records: Moving 353

Procedures in this Chapter
To release time records for payroll processing, you must move them from
batch to current status. You can release groups of time records manually or
automatically. You can also release one time record at a time.
• "Releasing Time Records from Batch to Future Status" on page 354
• "Selecting Time Records from Future to Current Status" on page 355
• "Moving Time Records from Batch to Current Status in One Step"
on page 357
• "Selecting One Time Record" on page 359

Releasing Time Records from Batch to Future Status

You can release time records from batch to future status to provide an
additional level of review.
CAUTION Once a batch
is released, you cannot
change Future status time
records back to Batch
status. You can only edit
future status time records
on Time Record Entry
(PR36.1).

STOP Before you release time records to future status, you must enter
time records into Payroll in batch status. For more information, see "Time
Records: Entering" on page 295.

Need More Details? Check out the following concepts:

• "What is Moving Time Records?" on page 352
• "Why Would I Release and Select in Two Steps Rather Than
One?" on page 353
• "What are Time Record Statuses?" on page 299

STEPS To release time records from batch to future status

1. Access Batch Time Control (PR37.1).
2. Choose the Inquire form action to display batches and the time record
amounts and hours that have been entered for the batch.
3. Type the control hours and amounts for each batch in the Control Hours
and Control Amount Þelds.

354 Chapter 23 Time Records: Moving Payroll User Guide

TIP If the control and 4. If the company uses batch control to control hours and amounts, review
entry hours, amounts the totals in the Control Hours, Control Amount, Entry Hours, and Entry
do not match use Time
Record Edit (PR135) Amount Þelds to ensure that they match.
and Missing Time
Records (PR136) to IMPORTANT If the company is set up to use batch control, you cannot
Þnd discrepancies in the
entered time records. release time records to future status unless the Control Hours, Control
Amount Þelds and the Entry Hours, Entry Amount Þelds match.

5. Select Release in the Line Action Þeld next to each batch you want to
release to future status.
6. Choose the Release form action.

Options for Releasing Time Records from Batch to

Future Status
You can use Batch Time Record Update (PR137) to release batch status time
records to future status by selecting Release Batches Only in the Report
Option Þelds; however, you cannot use PR137 if the company uses batch
control.

Follow up tasks
You must select time records and release them to current status using Time
Record Selection (PR38.1).

Related Reports and Inquiries

To Use
List employees who are missing a Missing Time Records (PR136)
Batch, Future, or Current status time
record
Verify the accuracy of all time Edit Time Records (PR135)
records entered in Payroll

Selecting Time Records from Future to Current Status

If you have time records in future status, you must select and release time
records from future to current status to include the time records in payroll
processing. Payroll selects time records based on the time record date. Only
time records in current status can be processed during the payroll cycle.

IMPORTANT This procedure selects one-time deductions from future status

as well as selecting time records from future status.

Payroll User Guide Chapter 23 Time Records: Moving 355

 STOP Before you release time records to current status, you must release
the time records from batch to future status. For more information, see
"Releasing Time Records from Batch to Future Status" on page 354.

Need More Details? Check out the following concepts:

• "What is Moving Time Records?" on page 352
• "Why Would I Release and Select in Two Steps Rather Than
One?" on page 353
• "What are Time Record Statuses?" on page 299
• "What are One-Time Deductions?" on page 286

STEPS To select time records from future to current status

1. Access Time Record Selection (PR38.1).
2. DeÞne the time records to be released to current status. Consider the
following Þelds.

Process Level Select the process you want to release time

records for.
Department Select the department you want to release time
records for.
You cannot select a department unless you
selected a process level in the Process Level
Þeld.x
Pay Freq (Pay Select the pay frequency you want to release
Frequency) time records for.
Date Type the date that determines which Future time
records and one-time deductions are changed
to Current status.
All time records and one-time deductions with a
date on or before the date you enter are selected
to current status.
Time records and one-time deductions with a
date after the date entered remain in Future
status.

3. Choose the Select form action.

Options for Selecting Time Records from Future to

Current Status
You can also use Batch Time Record Update (PR137) to release future status
time records to current status by selecting a through date and selecting Select
Time Records in the Report Option Þeld.

356 Chapter 23 Time Records: Moving Payroll User Guide

 Related Reports and Inquiries
To Use
List employees who are missing a Missing Time Records (PR136)
Batch, Future, or Current status time
record
Verify the accuracy of all time Edit Time Records (PR135)
records entered in Payroll

Moving Time Records from Batch to Current Status

in One Step
You can release and select time records in one step. When you follow this
procedure, Payroll releases time records and one-time deductions and then
immediately selects them to current status.

IMPORTANT You cannot move time records from batch to current status in
one step if the company is set up to use batch control.

Need More Details? Check out the following concepts:

• "What is Moving Time Records?" on page 352
• "Why Would I Release and Select in Two Steps Rather Than
One?" on page 353
• "What are Time Record Statuses?" on page 299

STEPS To release time records automatically

1. Access Batch Time Record Update (PR137).
2. Select Release Batches/Select Records in the Report Option Þeld.
3. Select the batches you want to release in the Batches Þelds.
NOTE You must deÞne 4. DeÞne the selection criteria for time records to be moved to current status.
at least one set of Consider the following Þelds.
selection criteria that
includes a select date.
Process Level Select the process you want to release time
records for.
Department Select the department you want to move time
records for.
You cannot select a department unless you
selected a process level in the Process Level
Þeld.
Pay Freq (Pay Select the pay frequency you want to move time
Frequency) records for.

Payroll User Guide Chapter 23 Time Records: Moving 357

 Select Date Type the date that determines which time records
and one-time deductions are changed to Current
status.
All time records and one-time deductions with a
date on or before the date you enter are changed.
Time records and one-time deductions with a
date after the date entered remain in Future
status.

5. Run the report.

Related Reports and Inquiries

To Use
List employees who are missing a Missing Time Records (PR136)
Batch, Future, or Current status time
record
Verify the accuracy of all time Edit Time Records (PR135)
records entered in Payroll

358 Chapter 23 Time Records: Moving Payroll User Guide

Selecting One Time Record
You can select one time record from error or future status to current status.

Need More Details? Check out the following concepts:

• "What is Moving Time Records?" on page 352
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299

STEPS To select one time record

1. Access Time Record Entry (PR36.1).
2. Select the employee whose time records you want to select in the
Employee Þeld at the top of the form.
3. Select the status of the time records you want to select in the Status Þeld.
4. Choose the Inquire form action to display time records with the selected
status for the employee.
5. Select Change in the Line Action Þeld of the time record you want to
change.
6. Select Current in the ST (Status) Þeld of the time record you want to
change.
7. Choose the Change form action.

Related Reports and Inquiries

To Use
List employees who are missing a Missing Time Records (PR136)
Batch, Future, or Current status time
record
Verify the accuracy of all time Edit Time Records (PR135)
records entered in Payroll

Payroll User Guide Chapter 23 Time Records: Moving 359

360 Chapter 23 Time Records: Moving Payroll User Guide
Chapter 24

Payroll Cycle: Overview

This chapter covers how to process the payroll cycle within the Lawson
Payroll application.

STOP Before you process Payroll, you must move time records. For more
information, see "What is Moving Time Records?" on page 352.

Payroll User Guide Chapter 24 Payroll Cycle: Overview 361

Concepts in this Chapter
The following concepts provide an overview for payroll cycle processing.
• "How Do I Prepare for Payroll Cycle Processing?" on page 362
• "Payroll Cycle: A Big Picture" on page 363
• "Editing Time Records" on page 364
• "Pre-cycle Maintenance" on page 365
• "Calculating Earnings" on page 366
• "Creating Payments" on page 367
• "Closing A Payroll Cycle" on page 368
• "Troubleshooting" on page 369

How Do I Prepare for Payroll Cycle Processing?

Perform the following steps to prepare for payroll cycle processing:
• Edit time records
• Verify the payroll cycle status
• Update deduction changes
• Update beneÞt changes
Edit time records using Missing Time Records (PR136) and Time Record Edit
(PR135). When time records are no longer in Batch status, perform time
record maintenance on Time Record Entry (PR36.1).
When necessary, verify Þnal time records by processing Time Record Edit
(PR135) for all Current status time records. Verify time records before
calculating the earnings and deductions.
Verify the payroll cycle status using Payroll Cycle Status (PR00.1). Inquire on
the Payroll Cycle Status (PR00.1) to verify the previous payroll cycle is closed
for the process levels you plan to process.
Update deduction changes using the Ded, Garn Fee, PSG Update (PR115).
Run this report to update employee deductions with changes made to
information on Employee Deduction (PR14.1), United States Employee
Garnishment (PR26.1), or Canada Employee Garnishment (PR47.1). If you
override deduction information at the employee level, the information is not
updated.
If another report must be run, the Earnings and Deductions Calculation
(PR140) gives an edit message when you attempt to add, change, or submit
PR140.
If you have not updated beneÞt changes, run the necessary programs to
update beneÞt changes.

362 Chapter 24 Payroll Cycle: Overview Payroll User Guide

Payroll Cycle: A Big Picture
The Payroll Cycle is divided into six chapters within the Payroll User Guide.
The diagram below illustrates the sequence of the payroll cycle chapters.
Figure 26. Payroll Cycle Big Picture

1
Edit Time Records

2
Pre-cycle
Maintenance

3
Calculate Earnings

4
Create Payments

5
Close

6
Troubleshoot

Payroll User Guide Chapter 24 Payroll Cycle: Overview 363

Editing Time Records
Editing time records includes the following procedures:
• "Editing for Missing Time Records" on page 374
• "Editing Time Records" on page 377
• "Creating Offset Time Records" on page 379
• "Creating a One-Time Deduction Listing" on page 380
• "Deleting Flex Time Records" on page 382
•

STOP Before you edit time records, the time records must be entered into
Payroll in Batch, Future, or Current status. For more information, see "Time
Records: Entering" on page 295.

You need to edit for missing time records with Missing Time Records (PR136)
to verify employees missing a Batch, Future, or Current status time record,
and optionally, to create time records for employees missing time records.
After editing for missing time records, edit time records to verify the accuracy
of hours, wages, general ledger accounts and activities. Process Time
Record Edit (PR135) for all Current status time records before calculating
the earnings and deductions.
If necessary, create offset time records through Offset Time Record Creation
(PR123). Offset time records consist of negative hours that reduce the regular
hours produced by auto time records. Only time records in current status
have offset time records created using PR123.
The One-Time Deduction Listing (PR239) lists one-time and arrears
deductions including deductions from employee pay and deductions not yet
deducted from employee pay.
If you are a BeneÞts Administration application user, you can delete the
Current status standard time records created in the BeneÞts Administration
application on Current Flex Time Record Delete (BN134). You might want to
delete the records if you do not want to issue a payment for ßex credits for an
employee, if the employee has no other pay for the pay cycle.
When you update employee leave through Leave Plan Update (UK120),
Payroll evaluates time records with attendance codes to determine employees
eligible for leave and how the employees are paid for leave.

364 Chapter 24 Payroll Cycle: Overview Payroll User Guide

Pre-cycle Maintenance
Pre-cycle Maintenance includes the following procedures:
• "Verifying the Payroll Cycle Status" on page 393
• "Calculating Tip Credit Records (U.S. and CA)" on page 393
• "Calculating Retroactive Pay" on page 395
• "Calculating FLSA Overtime (U.S. and CA)" on page 399
• "Creating Arrears Deductions" on page 401
• "Calculating the Cost of Excess Life Insurance" on page 405
•
Before you begin a new payroll cycle, use Payroll Cycle Status (PR00.1) to
verify that the previous payroll cycle is closed. Throughout the Payroll Cycle
Process, the procedures in this guide prompt you to verify the payroll cycle
status before proceeding.
If you use the Tips application, you must process the Tip Calculation (TP135)
to:
• Verify minimum wage requirements according to the employee’s work
state or federal requirements
• Calculate the tip credit if minimum wage has not been met
• Create time records for any shortfall amount
• Create tip history records used for tip allocation
• Calculate the hours worked in tipped jobs for tip allocation using the hours
worked method
• Use Retroactive Pay Calculation (PR131) if you have retroactive pay to
calculate. You can have a retroactive pay increase based on a percent
of earnings or an amount per hour, and can create a time record for the
amount of pay.
Based on the overtime pay plan assigned to the employee, run FLSA
Overtime Calculation (PR132) to calculate the regular rate and the required
overtime premium amount due. Run (PR132) after (PR131) if you gave a
retroactive pay increase to non-exempt employees.
Use Arrears Automation (PR139) to put eligible deductions into arrears
for employees who do not have time records in current, process, or error
status, or for employees who have current time records for non-cash pay
only. Although this report is not required, Lawson recommends using it to put
deductions in arrears.
Run Life Insurance Reportable Income (BN150) to calculate the cost of
excess employee and dependent life insurance for each employee. Do this
calculation annually, each month, or on a pay period basis.
Run Time Record Export (UK330) to export time records from your payroll to
a third-party software. Time Record Export (UK330) also updates employee
time record history Þles.

Payroll User Guide Chapter 24 Payroll Cycle: Overview 365

Calculating Earnings
Calculating Earnings includes the following procedures:
• "Verifying the Payroll Cycle Status" on page 393
• "Calculating Tip Credit Records (U.S. and CA)" on page 393
• "Updating Deduction Changes" on page 422
• "Updating Enrollment Plan Changes" on page 423
• "Updating Time Accrual Transactions" on page 423
Before you calculate earnings, use Payroll Cycle Status (PR00.1) to verify the
status of the payroll cycle and to verify the successful completion of forms
required before running Earnings and Deductions Calculation (PR140). The
reports to run include Retroactive Pay Calculation (PR131) if applicable, FLSA
Overtime Calculation (PR132) and Tip Calculation (TP135) if established as
required items by ßags on Company (HR00.1) and Process Level (HR01.1).
Use Earnings and Deductions Calculation (PR140) to calculate and report
employee deductions, company deductions, and net pay for all employees
with Current status time records.
When you add, change, or submit on (PR140), Payroll might prompt you to
run the Ded, Garn Fee, PSG Update (PR115), Plan Update (BN105), and
Frequency Table Update (BN104), if the forms are necessary to continue
payroll cycle processing.
Use Time Accrual Update (TA170) to create and update transactions for
employees enrolled in time accrual plans. You can update both manual
transactions and current payment records, or update only manual transactions
through a speciÞc date.

STOP Before you process Time and Attendance within the Payroll Cycle,
you must Þrst create time records. For more information, see "Time Records:
Entering" on page 295.

366 Chapter 24 Payroll Cycle: Overview Payroll User Guide

Creating Payments
Creating Payments includes the following procedures:
• "Verifying the Payroll Cycle Status" on page 393
• "Calculating Tip Credit Records (U.S. and CA)" on page 393
• "Creating General Ledger Payroll Accruals" on page 437
• "Creating the Payroll Register (U.S. and CA)" on page 439
Before you continue creating payments, use Payroll Cycle Status (PR00.1) to
verify the status of the payroll cycle and to verify the successful completion of
the forms required for Earnings and Deductions Calculation (PR140) to run.
The forms include Retroactive Pay Calculation (PR131) if applicable, FLSA
Overtime Calculation (PR132), and Tip Calculation (TP135) if required by
ßags on Company (HR00.1) and Process Level (HR01.1).
Use Payment Print (PR160) to create a print Þle of payments and direct
deposit receipts based on earnings and deductions calculated by Earnings
and Deductions Calculation (PR140), and to create a disk Þle of direct
deposit payment information that can be copied to tape for submission to
the processing Þnancial institution.
Use Accrual Program (PR195) to create estimated general ledger payroll
accruals for all company expenses when a payroll period spans two
accounting periods.

STOP Before running the Accrual Program (PR195) for the cycle that
includes the deductions you want to accrue, run Earnings and Deductions
Calculation (PR140) if you plan to run Percent or Time Records reports on
PR195. For more information, see "Calculating Tip Credit Records (U.S.
and CA)" on page 393.

Use the Payroll Register (PR141) to create a report of the earnings and
deductions processed in the current payroll cycle. You can submit the job with
a unique name to retain an electronic copy of the report. Use Payroll Register
(PR141) to balance and audit payroll records.

Payroll User Guide Chapter 24 Payroll Cycle: Overview 367

Closing A Payroll Cycle
Closing the Payroll Cycle includes the following procedures:
• "Verifying the Payroll Cycle Status" on page 393
• "Calculating Tip Credit Records (U.S. and CA)" on page 393
• "Closing Time Accrual" on page 448
• "Posting to the General Ledger" on page 449
Before you continue closing the payroll cycle, use Payroll Cycle Status
(PR00.1) to verify the status of the payroll cycle and to verify the successful
completion of forms required for Earnings and Deductions Calculation
(PR140) to run. The required forms include Retroactive Pay Calculation
(PR131) if applicable, FLSA Overtime Calculation (PR132), and Tip
Calculation (TP135) if established as required forms by ßags on Company
(HR00.1) and Process Level (HR01.1).
Use Payroll Close (PR197) to close and complete a payroll cycle. Closing
payroll allows the start of a new cycle, creates payroll accruals, updates
payroll history with information from the completed payroll cycle, deletes
processed time records from the application, and clears the cycle indicators
in Payroll Cycle Status (PR00.1). Before running Payroll Close (PR197) in
update mode, run PR197 in report mode to produce a report to use when
making Þnal edits.
Time Accrual Close (TA199) closes the Time Accrual Cycle, updates the
Balances Þelds in Employee Plan Inquiry (TA60.1), and generates a report
showing the updated balances. The application closes the transactions of
the current time accrual cycle and updates employee balances and history
records. Time Accrual Close (TA199) must be run after Payroll Close (PR197).
Payroll liabilities ßagged for payment in the Accounts Payable application
cannot be paid until the general ledger is updated using General Ledger
Posting (PR198).
When you close a payroll year through Payroll Year End Close (PR999),
the application:
• Changes the year in the Payroll Year Þeld on Company (HR00.1) to the
new year
• Deletes all arrears withholding deductions created by the application
during the previous year
• Creates new pay period and work period dates for pay plans deÞned
in Pay Plan (PR21.1)
Payroll transactions and adjustments for the closed year can still be submitted
after running the Payroll Year End Close (PR999). To create transactions
and adjustments, change the payroll year on Company (HR00.1) to the prior
(closed) year. You can then create and close transactions. After completing
the transactions, change the payroll year back to the new year.

368 Chapter 24 Payroll Cycle: Overview Payroll User Guide

Troubleshooting
Payroll cycle troubleshooting includes the following procedures:
• "Choosing a Procedure When Re-running Payroll" on page 457
• "Deleting Processed Time Records" on page 459
• "Recalculating Deductions and Net Pay Before Running Payment Print
(PR160)" on page 460
• "Recalculating Deductions and Net Pay After Running Payment Print
(PR160)" on page 463
• "Recalculating Deductions and Net Pay After Printing Actual Payments"
on page 464
• "Re-running Payments With Voids and Recreating the Direct Deposit
Tape File" on page 465
• "Reprinting Payments and Recreating the Direct Deposit Tape File" on
page 466
Before re-running payroll, you must determine if the error is related to
recalculating or printing payments, and which procedure you must use to
correct the error.
Use Earnings and Deductions Calculation (PR45.1) to change the status of
time records from Current or Processed to Error status.

Payroll User Guide Chapter 24 Payroll Cycle: Overview 369

370 Chapter 24 Payroll Cycle: Overview Payroll User Guide
Chapter 25

Payroll Cycle: Editing Time Records

This chapter covers how to edit time records within the Lawson Payroll
application.

STOP Before editing time records, you must enter the time records into
Payroll in Batch, Future, or Current status. For more information, see "Time
Records: Entering" on page 295.

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Records
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 374 • "Why Should I Identify Missing Time Records?" on page 372
• "How Do I Verify the Accuracy of Time Records?" on page 372
• "What Are Offset Time Records?" on page 373

Why Should I Identify Missing Time Records?

Identify missing time records to verify proper entry of employee time records
for payment in the current payroll cycle. Verifying time records helps you Þnd
records that were lost, not keyed, not punched out by an employee, or that
did not interface with Payroll.
DeÞne parameters in Missing Time Records to limit the time records to
employees in a speciÞc process level, department, user level, employee
group, employee number range, or employee status. Select a pay code to
include employees missing a time record for a speciÞc pay code.
You can further deÞne parameters to report missing time records for a speciÞc
time record status. For example, in Missing Time Records, select Batch time
record status to include only employees missing a Batch status time record.

How Do I Verify the Accuracy of Time Records?

Run Time Record Edit at any time for any or all statuses, speciÞc batch,
processing group, or process level to verify the accuracy of all time records
entered in Payroll.
Time Record Edit offers options to select the level of detail and the sequence
in which the information displays. You can include:
• Current, Error, and Processed status time records
• Batch, Future, or Error status records only
• All statuses
If you use Time Accrual , you can deÞne parameters to edit the current eligible
time accrual balance against any hours entered for an employee. A separate
edit report prints information for time records with entered hours exceeding an
employee’s current eligible balance.

372 Chapter 25 Payroll Cycle: Editing Time Records Payroll User Guide
What Are Offset Time Records?
The Payroll application lets you create offset time records. Offset time records
consist of negative hours that reduce the regular hours produced by auto
time records.
You create offset time records for employees who have too many hours
entered into the application due to exception time records. Exception time is
time that deviates from automatic regular pay. Payroll uses offset pay codes
identiÞed with exception pay codes to create a negative time record.
For example, if you generate an automatic time record for an employee with
40 hours of regular pay, and you enter 16 hours of vacation, the total time for
the employee is overstated for the work period by 16 hours. Create an offset
time record of negative 16 hours to reduce the total hours for the employee.
The result is total time of 40 hours for the employee.
When you run Offset Time Record Creation, you can create up to three
reports. The reports include Offset TIme Record Creation, Error Listing, and
Exception Offset Time Record Variance.
The Offset Time Record Creation report lists the employees, the exception
time records, and the offset time records created by Payroll.
The Error Listing report lists employees and exception time records for which
offset time records could not be created due to errors.
The Exception Offset Time Record Variance Report lists employees whose
exception and offset time record hours do not balance.

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Records
Procedures in this Chapter
The following procedures explain how to edit time records.
• "Editing for Missing Time Records" on page 374
• "Editing Time Records" on page 377
• "Creating Offset Time Records" on page 379
• "Creating a One-Time Deduction Listing" on page 380
• "Deleting Flex Time Records" on page 382

Editing for Missing Time Records

Use Missing Time Records (PR136) to list employees missing a Batch,
Future, or Current status time record. Optionally, you can create time records
for employees missing time records. Time records can also be created using
Standard Time Records (PR30.1).

STOP Before you run the report Missing Time Records (PR136), exclude
terminated, retired, and leave of absence employees from the report
parameters.

Need More Details? Check out the following concepts:

• "Why Should I Identify Missing Time Records?" on page 372
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• "What is Moving Time Records?" on page 352

STEPS To edit for missing time records

NOTE You can 1. Access Missing Time Records (PR136).
complete both the
Selection and Create TR 2. Choose the Selection tab to edit for missing time records.
tabs in one submission 3. Choose to run the report by Company, Processing Group, Process Level,
of the job, or you can User Level, Department, Employee Group, or Employee. Consider the
complete the Selection
or Create TR tabs following Þelds:
separately for separate
submissions. Exclude or Include Select the value to include or exclude employee
status codes selected in the Employee Status
Þelds.
Status Select up to ten employee status codes to include
or exclude from the report depending on the
value you select in the Exclude or Include Þeld.

374 Chapter 25 Payroll Cycle: Editing Time Records Payroll User Guide
 Time Record Leave this Þeld blank to include Batch, Future,
Status and Current time records.
– or –
Type X in the Þeld associated with the pay
frequency to select the status.
Since time records can only hold one status
at a time (Batch, Future, or Current), the time
record always reßects as “missing” from the other
statuses.
Pay Frequency Leave this Þeld blank to include all pay
frequencies.
– or –
Type X in the Þeld associated with the pay
frequency to select the pay frequency.
Pay Codes Select up to ten pay codes to report only the
employees missing time records for speciÞc pay
codes.
Employee Select an employee sequence to override the
Sequence default print order deÞned for the company.

4. Select the Create TR tab to create time records. In the Create Time
Record Þeld, select the value that indicates if and how you want to create
time records for employees missing time records:

In the Create Time Record Þeld, Then

if
You select Employee Standard Payroll creates time records using
Time Records the employee’s standard time
records on Standard Time Record
(PR30.1).
You select From Parameters Payroll creates time records using
the parameters you deÞne on
Missing Time Records (PR136).
You select Employee Std TR or Payroll creates time records by Þrst
Parameters looking to Standard Time Record
(PR30.1). If Payroll does not Þnd
employee standard time records in
Standard Time Record (PR30.1), it
uses the parameters you deÞne on
Missing Time Records (PR136).
You select Do Not Create Time Payroll does not create time
Records records. This selection defaults if
you do not make a selection in the
Create Time Record Þeld.

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Records
NOTE When you create 5. Create a Time Record on the Create TR tab. If you did not complete
time records, the time parameters on the Selection tab, you receive a prt. report showing time
records created are still
displayed as missing on records missing in all three statuses (Batch, Future, and Current).
the prt. report. Consider the following Þelds.
Time Record Select the status of Batch, Future, or Current.
Status
If you selected to create time records in the
Create Time Records Þeld, you must make a
selection in this Þeld.
Time Record Date Type a date to determine the pay period and work
period if you selected:
Employee standard time records
– or –
Employee Std TR or Parameters in the Create
Time Record Þeld.
Batch Type or select the batch number you want to use
to create time records if you selected Batch in the
Time Record Status Þeld.
If the selected company has auto batch
numbering deÞned on Company (HR00.1), leave
this Þeld blank to create a new batch.
If the company does not have auto batch
numbering, type a batch number or select an
existing batch number.
Exclude Emp Select up to ten statuses to exclude from time
Status record creation.
Pay Code Select the pay code to use to create time records.
Payroll veriÞes the pay code for each employee.
Hours Type the number of hours to assign to the time
record.
TR Date Type the date on which you want to create the
time record.
Att Code Select an attendance code to create a time record
for a speciÞc attendance code when tracking
attendance in Time and Attendance.
If the selected attendance code has a default
pay code deÞned, you can leave the Pay Code
Þeld blank. If a default pay code is not deÞned
for the attendance code, enter a valid pay code
in the Pay Code Þeld.

376 Chapter 25 Payroll Cycle: Editing Time Records Payroll User Guide
 OC If an attendance code is entered in the
Attendance Code Þeld, select Yes to indicate the
record is an attendance occurrence, or No to
indicate the record is a continuation of an existing
occurrence.
CG Type a check group, to associate the pay code
with a speciÞc check group.
PG Type an alpha or numeric value to associate the
pay code with a speciÞc process group.
Activity Select the activity to which you want to post this
time record information.
If you leave this Þeld blank, Payroll posts the time
record amount to the activity from the pay code,
job code, and then from the employee record.
Acct Cat Select the account category to which you want to
post this time record information.
The account category defaults the same way as
the activity, but can be changed.

6. Choose the Add form action.

7. Choose the Submit form action to submit the report.

Options for Creating Missing Time Records

The following options are available for Creating Missing Time Records
You can re-run Automatic Time Records (PR134) to create missing Time
Records for employees ßagged for group or standard time records.
Choosing Employee Standard Time Records in the Create Time Record
Þeld creates time records for employees who have a record created through
Standard Time Records (PR30.1) and are ßagged on Employee (HR11.1).
You can manually enter a missing time record using Time Record Entry
(PR36.1) or Attendance Time Entry (PR35.5).
Run Missing Time Records (PR136) to create time records.

Editing Time Records

You can edit time records through Time Record Edit (PR135) and verify the
accuracy of hours, wages, general ledger accounts, and activities.
Process Time Record Edit (PR135) for Current, Error, and Processed status
time records; only Batch, Future, or Error status time records; or all statuses
before calculating the earnings and deductions.

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Records
 STOP Before you can edit time records, the time records must be entered
or interfaced with Payroll. For more information, see "Time Records: Entering"
on page 295.

Need More Details? Check out the following concepts:

• "How Do I Verify the Accuracy of Time Records?" on page 372
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301

STEPS To edit time records

1. Access Time Record Edit (PR135).
TIP The TRD 2. Run the report to list all time records entered in the application.
Comments button on 3. Complete the form. Consider the following Þelds.
Time Entry (PR35.1)
and Detail Time Entry
(PR35.2) lets you enter Report Selection Choose a report selection of 1, 2, or 3 to
comments you can print determine the information included in the report.
on Time Record Edit
(PR135). Select 1 (Time Record Edit) to include general
time record information.
Select 2 (Time Record Distribution) to include
general ledger distribution information for each
time record.
Select 3 (Time Record Detail) to include detail
information from the time records.
Time Record Select a value of 1-5 to indicate the status of time
Selection records to verify.
Batch Select a batch to verify time records for a speciÞc
batch.
If you do not select a batch number, the report
includes all batches.
Processing Group Select a processing group to verify time records
for a speciÞc processing group.
Process Level Select a process level to verify time records for a
speciÞc process level.
Employee Select a value that determines if the report prints
Sequence in alpha or numeric sequence by employee, or in
time record sequence.
Time record sequence is the order in which time
records were entered, and is only valid for Batch
status time records.
Summary Option Select the value that determines if the time record
edit prints in summary by employee.

378 Chapter 25 Payroll Cycle: Editing Time Records Payroll User Guide
 Comments Select the value that indicates if time record
comments print on the report.
Check TA Select the value that determines if the employee’s
Balances current eligible balance for each time accrual plan
is edited against any hours entered. All entered
hours associated with the pay class deÞned in
Plan (TA20.1) are considered in the edit.
The value in the Time Record Selection Þeld
determines time records considered for the
balance check. A separate edit report prints with
employees whose entered hours exceed their
current eligible balance.

4. Choose the Submit form action.

Creating Offset Time Records

Payroll lets you create offset time records through Offset Time Record
Creation (PR128). Offset time records consist of negative hours that reduce
the regular hours produced by auto time records.
Only time records in current status can have offset time records created using
Offset Time Record Creation (PR128).

STOP Before you create offset time records, you must set up exception
and offset time record rules, manually enter exception time records, or create
automatic time records. For more information, see "Setting Up Pay Structure"
on page 29. For more information, see "Time Records: Entering" on page 295.

Payroll User Guide Chapter 25 Payroll Cycle: Editing Time 379

Records
 Need More Details? Check out the following concepts:
• "What Are Offset Time Records?" on page 373
•
• "What are Exception, Offset Time Record Rules?" on page 42

STEPS To create offset time records

NOTE When you run 1. Access Offset Time Record Creation (PR128).
Offset Time Record
Creation (PR128), the 2. Select to print the report by Company, Processing Group, or Process
application creates Level. You cannot select both a Processing Group and a Process Level.
offset time records for 3. Select report options. Consider the following Þelds.
employees who have the
Auto Time Record Þeld
on Employee (HR11.1) Update Select the value N (Report Only), or Y (Update) to
set to Yes, Standard, indicate whether you want to perform the update.
or Time Group, and
who have one or more If you select Y (Update), the update is performed.
exception time records. If you select N (Report Only), the application
Payroll creates an offset creates a report listing pending changes.
time record for each
exception time record. Employee Select an employee sequence to override the
Sequence default print order deÞned for the company on
Company (HR00.1).
Variance Report Select the option that indicates whether or not
you want to create a report listing the employees
with unbalanced exception and offset pay codes.
Select Yes to create the report. Select No if you
do not want to create the report.

4. Choose the Submit form action to submit the report.

IMPORTANT If you deÞne rules by employee group, Offset Time Record

Creation (PR128) looks through employee groups alphabetically until it
Þnds the Þrst group where the employee belongs. The application uses
the exception rules for that employee group to create offset time records
for the employee.

Creating a One-Time Deduction Listing

One Time Deduction Listing (PR239) lists one-time and arrears deductions
including deductions from employee pay and deductions not deducted from
pay.

380 Chapter 25 Payroll Cycle: Editing Time Records Payroll User Guide
 Need More Details? Check out the following concepts:
• "What are One-Time Deductions?" on page 286
• "What are Time Record Statuses?" on page 299

STEPS To create a one-time deduction listing

1. Access One Time Deduction Listing (PR239).
2. Select to print the report by Company, Processing Group, or Process
Level. You cannot select both a Processing Group and a Process Level.
3. Complete the form. Consider the following Þelds.

Employee Select an employee, or type a beginning and

ending employee number to deÞne a range of
employees to include in the listing.
If you deÞne an employee range, the listing
includes only employees within that range who
have one-time deductions.
Deduction Select a deduction to include in the one time
deduction listing.
If you do not choose a deduction, all one-time
deductions are selected.
Status Leave this Þeld blank to include arrears
deductions created by the application.
– or –
Select a status to include in the listing. To
display system created arrears deductions, select
Current status records.
Select Future status to include only Future status
one-time deductions.
Select Future or Current status to establish
manually created one-time deductions.
Select Current status to include only Current
status one-time deductions as created in One
Time Deduction (PR39.1), Payroll created arrears
deductions, and one-time deductions currently
processing through a payroll cycle.
Employee Select an employee sequence to override the
Sequence default print order deÞned for the company on
Company (HR00.1).

4. Select the Submit form action to submit the report.

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Records
 Follow up
If required, perform adjustments to one-time deductions through One Time
Deduction (PR39.1) or One Time Deduction - Speed (PR39.2). For more
information, see "Maintaining One-Time Deductions" on page 289.
Use Earnings and Deductions Calculation (PR140) or Arrears Automation
(PR139) to create arrears deductions. For more information, see "Creating
Arrears Deductions" on page 401. For more information, see "Calculating Tip
Credit Records (U.S. and CA)" on page 393.
Once the deduction from either the One Time Deduction (PR39.1) or
One Time Deduction - Speed (PR39.2) is picked up by the Earnings and
Deductions Calculation (PR140), the status for the one-time deduction is
changed to processed. For this change to occur, the deduction must be in
current status with an effective date equal to or prior to the date on PR140.

Deleting Flex Time Records

If you are a BeneÞts Administration application user, you can delete the
Current status standard time records created in the BeneÞts Administration
application. You might want to do this if you do not want to issue a payment
for ßex credits for an employee when the employee has no other pay for
the pay cycle.
For more information on editing time records and the BeneÞts Administration
application, see the BeneÞts Administration User Guide.

STEPS To delete ßex time records

1. Access Current Flex Time Record Delete (BN134).
2. Complete the form. Consider the following Þelds:

Report Option Select U (Update) or R (Report Only).

If you select Update, BN134 deletes the selected
time records and lists the deleted time records. If
you select Report Only, BN134 lists, but does not
delete the selected time records.

NOTE Lawson recommends selecting R (Report

Only) to review the report before selecting U
(Update).

Employee Select A (Alpha) or N (Numeric) to override the

Sequence default print order deÞned in Company (HR00.1).

3. Choose the Submit form action to submit the form.

382 Chapter 25 Payroll Cycle: Editing Time Records Payroll User Guide
Chapter 26

Payroll Cycle: Pre-cycle Maintenance

This chapter describes how to perform pre-cycle maintenance for the

payroll cycle within the Lawson Payroll application. Some of the procedures
explained in this chapter are required to run as part of the payroll cycle based
on ßags set on Company (HR00.1), Process Level (HR01.1), or both.

Payroll User Guide Chapter 26 Payroll Cycle: Pre-cycle 383

Maintenance
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 391 • "How do I Check on Payroll Cycle Status?" on page 385
• "What is the Tips Calculation? (U.S. and CA)" on page 386
• "How Do I Update Gross Receipts for Tipped Employees? (U.S. and
CA)" on page 388
• "What is the Retroactive Pay Calculation?" on page 389
• "What is Arrears Automation?" on page 390

384 Chapter 26 Payroll Cycle: Pre-cycle Payroll User Guide

Maintenance
How do I Check on Payroll Cycle Status?
The Payroll Cycle Status inquiry displays the status of the current payroll
and time accrual cycles for all process levels. Use the Payroll Cycle Status
to verify where you are within a payroll or time accrual cycle. The forms and
reports displayed on the Payroll Cycle Status Inquiry are:
• Tip Calculation (U.S. and CA only)
• FLSA Overtime Calculation (U.S. and CA only)
• Earnings and Deductions Calculation
• Payment Print
• Payroll Close
• Time Accrual Update
• Time Accrual Close
Payroll uses information on the Payroll Cycle Status to control when payments
are ready for printing, when a form or report must be reprocessed, when
payroll can be closed, and when to send appropriate error messages.
The following statuses display for each form or report by process level:
• _(blank) - the program has not yet been processed
• R - the program is currently running
• E - the program ended in error
• * (asterisk) - the program completed successfully
When the Payroll Close completes successfully, the * indicator clears from
payroll cycle programs. The * indicator clears from time accrual cycle
programs when Time Accrual Close completes successfully.

Example
In this example, for Process Level GRH, the Overtime Calculation and
Earnings and Deductions Calculation completed successfully. For RBH,
the Overtime Calculation completed successfully, but the Earnings and
Deductions Calculation has not been processed.
Figure 27. Example: Checking the Payroll Cycle Status

Payroll User Guide Chapter 26 Payroll Cycle: Pre-cycle 385

Maintenance
What is the Tips Calculation? (U.S. and CA)
If you use the Tips application, you can process the Tip Calculation to:
• Verify minimum wage requirements according to the employee’s work
state or federal requirements
• Calculate the tip credit if minimum wage was not met
• Create time records for any shortfall amount
• Create tip history records used for tip allocation
• Calculate the hours worked in tipped jobs for tip allocation using the hours
worked method
The tip credit is stored for audit and reporting purposes and is included in the
regular rate of pay for the overtime calculation.
Hours worked for tipped employees in tipped jobs are calculated and stored
for use in the hours worked method of tip shortfall allocation calculation.
If there is no tip time record, the Tip Calculation determines which direct or
indirect pay code to use based on the time record job code and on how
Company Allocation is set up.
The Tip Calculation can be required as part of the Payroll Cycle if it is ßagged
as required on the Company or Process Level forms.

Example 1
The following time records were created for Megan:

Megan is an hourly, weekly-paid employee who is eligible for the tip credit.
The minimum wage for her state of MD is 4.25/hour.
The Tip Credit Calculation calculates as follows:
1. VeriÞes minimum wage has been met:

2.13 x 32 (hrs) = 68.16 + 100.00 (tips) 168.16 total wages

=
4.25 x 32 (hrs) = 136.00 min. wage
required
No tip shortage.

2. Calculates tip credit:

136.00 - 68.16 = 67.84 tip credit amount

386 Chapter 26 Payroll Cycle: Pre-cycle Payroll User Guide

Maintenance
 Example 2
The following time records were created for John:

John is an hourly, weekly-paid employee who is eligible for the tip credit. The
minimum wage for his state of MD is 4.25/hour.
The Tip Credit Calculation calculates as follows:
1. VeriÞes minimum wage has been met:

2.41 x 28 (hrs) = 67.48 + 45.00 (tips) = 112.48 total wages

4.25 x 28 (hrs) = 119.00 min. wage
required
6.52 Tip shortage

2. Calculates tip credit:

119.00 - 67.48 = 51.52 tip credit amount
Creates time record for tip shortage as follows:

Payroll User Guide Chapter 26 Payroll Cycle: Pre-cycle 387

Maintenance
How Do I Update Gross Receipts for Tipped Employees?
(U.S. and CA)
If you are a Lawson Tips user, you have a number of options for entering
gross sales receipts in to the Tips application.
Run the Point of Sale Interface to create gross receipts records for tipped
employees in the Lawson Tips application. The application creates gross
receipts records by reading a Þle created from a non-Lawson time record
application. You are responsible for creating the time record interface Þle read
by any non-Lawson time record applications.
Use the Hours Worked Allocation to create gross receipts records to use
in the Hours Worked method of calculating shortfall allocations for speciÞc
allocation levels. You can record charged tips, charged receipts, and service
charges of less than 10 percent paid as wages to employees. The application
uses this optional information for year-end federal reporting.
Use Gross Receipts by Allocation Level to create gross receipts records for
employees in a speciÞc allocation level. The application uses these gross
receipts records to calculate shortfall allocations using the Individual Gross
Receipts method.
Use Employee Gross Receipts Allocation to record gross receipts for
individual employees reporting in more than one allocation level.
Use Gross Receipts Allocation to create gross receipts records to use in the
individual gross receipts method of calculating shortfall allocations for speciÞc
allocation levels. You can record charged tips, charged receipts, and service
charges of less than 10 percent paid as wages to employees. The application
uses this information for year-end federal reporting.

388 Chapter 26 Payroll Cycle: Pre-cycle Payroll User Guide

Maintenance
What is the Retroactive Pay Calculation?
The retroactive pay calculation calculates, and as an option, creates time
records for retroactive pay amounts. When you calculate retroactive pay,
Payroll reads the payroll history Þles to determine the amount due to the
employee.
You can create a separate time record for each distribution found on the time
records that were used to calculate the retroactive pay. Retroactive time
records can be expensed using current home wage expense distribution.
Retroactive pay calculation can be based on a ßat amount per hour or a
percentage of wages for a speciÞc population of employees. The calculation
can be based on a speciÞed group of wages or all wages earned by an
employee for a speciÞed date range.
Different parameters can be deÞned for multiple job codes. You can establish
unique amounts or percentages for combinations of job codes and pay
classes or pay codes.
If you choose to have time records automatically created, the time records
are created as a ßat amount.

Example
The payroll manager must create retroactive pay time records for the
Minnesota Nurses Association (MNA) union, which has just re-negotiated a
6.2 percent salary increase for all employees in the union. The increase is
retroactive to the Þrst of May through the current pay date (June 16, 2001).
Therefore, the payroll manager processes the Retroactive Pay Calculation
using the following parameters.
Payroll creates time records for all employees in this union for the appropriate
retroactive pay amount based on the pay history from May 1, 2001 through
June 15, 2001.
A separate retro time record is created for each distribution found on the time
records which were used to calculate the retroactive pay.

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Maintenance
What is Arrears Automation?
Arrears automation lets you automatically create arrears deductions for active
employees who:
• Have no time records of any status which will result in net pay to the
employee in the current payroll cycle
– or –
• Have only non-cash time records entered for the current payroll cycle
A deduction is eligible for arrears if you designated it as eligible when you
deÞned the deduction on Deduction.
To activate the arrears automation feature, run Arrears Automation. Use
the Pay Code and Pay Class Þelds on Arrears Automation to designate the
non-cash pay codes, pay classes, or both on time records for employees who
have only non-cash time records in the current payroll cycle.

Example
When the McBride Bottling Company was ready to process their payroll, they
had Þfteen employees who had no time records for this pay cycle. McBride
wanted to create arrears deductions for these Þfteen employees. To do this,
McBride ran Arrears Automation specifying the Þfteen employees before
Earnings and Deductions Calculations were processed in the payroll cycle.

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Procedures in this Chapter
The following procedures explain how to process Pre-cycle maintenance.
"Verifying the Payroll Cycle Status" Verify the status of the payroll cycle
on page 393 before closing the cycle.
"Calculating Tip Credit Records Calculate tip credit records to
(U.S. and CA)" on page 393 verify minimum wage requirements,
calculate tip credit, create time
records for shortfall, create tip
history records, and calculate the
hours worked in tipped jobs.
"Calculating Retroactive Pay" on Calculate retroactive pay, and create
page 395 a time record for retroactive pay.
"Calculating FLSA Overtime (U.S. Calculate FLSA overtime to calculate
and CA)" on page 399 the regular rate and the required
overtime premium amount due.
"Creating Arrears Deductions" on Create arrears deductions to put
page 401 eligible deductions into arrears for
employees who do not have time
records in Current, Process, or
Error status, or for employees who
have current time records for only
non-cash pay.
"Calculating the Cost of Excess Life Calculate the cost of excess life
Insurance" on page 405 insurance on an annual, monthly, or
pay period basis.

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Maintenance
 Export time records from your payroll
to a third-party software.

Figure 28. Procedure relationship: Payroll Cycle: Pre-cycle Maintenance

1
Verify Payroll
Cycle Status

2
- Conditional -
Calculate Tip
Credit Records

3
- Conditional -
Calculate
Retroactive Pay

4
- Conditional -
Calculate FLSA
OT

5
- Optional -
Create Arrears
Deduction

6
- Conditional -
Calculate Cost of
Excess Life
Insurance

7
-Conditional-
Export Time
Records

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Maintenance
Verifying the Payroll Cycle Status
Use Payroll Cycle Status (PR00.1) to verify that the previous payroll cycle is
closed before you begin processing the payroll cycle. For more information,
see "Time Records: Entering" on page 295.

STOP Before you continue processing the payroll cycle, you must enter or
import time records into Payroll. For more information, see "Time Records:
Entering" on page 295.

Need More Details? Check out the following concepts:

• "How Do I Prepare for Payroll Cycle Processing?" on page 362
• "How Do I Prepare for Payroll Cycle Processing?" on page 362

STEPS To verify the payroll cycle status

TIP Instead of using 1. Access Payroll Cycle Status (PR00.1).
Payroll Cycle Status
(PR00.1), you can use 2. Enter the Company in the Company Þeld.
the Drill Around feature
on the Company Þeld
on any form to verify the
payroll cycle status.
NOTE If the form is 3. Choose Inquire to verify that the previous payroll cycle is closed for
blank, a payroll cycle the process levels you are processing. All Þelds must be blank when
is not started, or the
payroll close completed beginning a payroll cycle.
successfully. Once a
payroll cycle is started, IMPORTANT Throughout the payroll close, access Payroll Cycle Status
indicators are viewable
on the form. (PR00.1) to display the status of the current payroll and time accrual
cycles for all process levels. Access PR00.1 after completing TP135,
PR132, PR140, TA170, PR160, PR197, and TA199 to verify that the cycle
processing reports are completed successfully.

Calculating Tip Credit Records (U.S. and CA)

If you use the Tips application, you must process the Tip Calculation to:
• Verify minimum wage requirements according to the employee’s work
state or federal requirements
• Calculate the tip credit if minimum wage has not been met
• Create time records for any shortfall amount
• Create tip history records used for tip allocation
• Calculate the hours worked in tipped jobs for tip allocation using the hours
worked method

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Maintenance
 STOP Tipped employees can be identiÞed either by a job code ßagged in
the Job Code Þeld on the Assignment tab, or the Tipped Employee Flag on
the Pay tab on Employee (HR11.1).

Need More Details? Check out the following concepts:

• "What is the Tips Calculation? (U.S. and CA)" on page 386
• "How Do I Update Gross Receipts for Tipped Employees? (U.S.
and CA)" on page 388
• "What are Allocation Levels?" on page 198
• "What is Shortfall Allocation?" on page 198
• "How does Tips Calculate the Shortfall Allocation Using Individual
Gross Receipts Method?" on page 198
• "How does Tips Calculate the Shortfall Allocation for the Hours
Worked Method?" on page 200
• "What do I need to Set Up Before I Use the Tips application?" on
page 202
• "What are Time Record Statuses?" on page 299

STEPS To calculate tip credit records

1. Access Tip Calculation (TP135).
2. Select the Parameters Tab. Consider the following Þelds.

Rerun Select the value that determines if this is a rerun

of Tip Calculation (TP135).
When you rerun TP135 during a cycle, the
application performs the same calculations again.
Previously created records are deleted and
recreated based on the re-run.
Errors Only Select the value that determines if you want to
run the report for time records in error status.
Pay Class Select the pay class representing the kind of pay
you want to include in the tip credit calculation.
Update Option Select whether or not you want to update the
application with tip pay records and time records
for shortages.
Pay Code If you selected Yes in the Update Option Þeld,
select the pay code you want the application to
use for the time record created for the shortage.

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 Report Sequence Select the sequence in which you want the report
to print.
The report sequence is based on the process
level, department, and job code from the
time record; not on the “home” process level,
department, or job code from the employee
record.
Employee Select the employee sequence in which you
Sequence want the report to print. If you do not select
an employee sequence, the sequence defaults
as deÞned in the Print Order Þeld of Company
(HR00.1).

3. On the Default tab select the default pay codes. Consider the following
Þelds.

Direct Tipped Pay Select the direct tipped pay code you want to use
Code to update or create tip history records when no tip
time record exists.
Indirect Tipped Select the indirect tipped pay code you want to
Pay Code use to update or create tip history records when
no tip time record exists.

4. Choose the Submit form action to submit the calculation.

5. Access Payroll Cycle Status (PR00.1).
NOTE Running Payroll 6. Verify the completion of tip credit calculation.
Close (PR197) at the
end of the payroll cycle
updates tip records to
history.

Calculating Retroactive Pay

Use Retroactive Pay Calculation (PR131) if you have retroactive pay to
calculate. A retroactive pay increase can be based on a percent of earnings
or an amount per hour.
Calculate retroactive pay for all employees in the company, or for any
subgroup of employees based on process level, department, union, job code,
shift, employee group, payment dates, pay class, and pay codes, or both pay
class and pay codes.

Need More Details? Check out the following concepts:

• "What is the Retroactive Pay Calculation?" on page 389
• "What are Time Record Statuses?" on page 299

STEPS To calculate retroactive pay

1. Access Retroactive Pay Calculation (PR131).

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NOTE For nonexempt 2. Select the employees who need retroactive pay calculated. Use the
employees the time Selection form tab to deÞne general parameters for retroactive pay
record date for
retroactive pay uses calculation. Consider the following Þelds.
the default from the
work-period end date. Processing Group Select a processing group to calculate retroactive
For exempt employees, pay for a speciÞc processing group.
the application uses
the time record date You cannot select both a processing group and
parameter. a process level or department.
Process Level Select a process level to calculate retroactive pay
for a speciÞc process level.
If you leave this Þeld blank, the calculation
includes all process levels.
You cannot select both a processing group and
a process level or department.
Department Select a department to calculate retroactive pay
for a speciÞc department.
If you leave this Þeld blank, the calculation
includes all departments.
You cannot select both a processing group and
a process level or department.
Union Select a union code to calculate retroactive pay
for a speciÞc union.
If this Þeld is blank, the calculation includes all
unions.
Job Code Select a job code to calculate retroactive pay for
a speciÞc job.
If this Þeld is left blank, the calculation includes
all job codes.

NOTE You cannot select a job code on this tab if

you select job codes on the Job Codes tab. You
can also calculate retroactive pay for multiple job
codes. For more information, see "Calculating
Retroactive Pay" on page 395.

Shift Select a shift to calculate retroactive pay for a

speciÞc shift. You can select up to eight shifts.
If this Þeld is left blank, the calculation includes
all shifts.
Employee Select an employee for the retroactive calculation
in this cycle. You cannot select employees in
addition to other selection criteria.
If the Employee Þelds are left blank, the
calculation includes all employees.

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 Employee Group Select an employee group for the retroactive
calculation in this cycle.
If this Þeld is left blank, the calculation includes
all employee groups.
You cannot select an employee group in addition
to other selection criteria.
Date Type the date range for the calculation.
Pay Class Select a pay class that includes the kind of
pay you want included in the retroactive pay
calculation.
You cannot select both a pay class and pay
codes.
Pay Code Select a pay code that represents the kind of
pay you want to include in the retroactive pay
calculation.
You cannot select both a pay class and pay
codes.

3. Select the Time Record Tab. Use the Time Record form tab to further
specify parameters for retroactive pay calculation. Consider the following
Þelds.

Retro Percent Type a percent value to calculate a retroactive

increase based on a percent of earnings.
If you type a percent, leave the Amount Per Hour
Þeld blank.
Amount per Hour Type an amount to calculate a retroactive pay
increase based on an amount per hour.
If you type an amount per hour, leave the Retro
Percent Þeld blank.
Retro Pay Code Select the pay code for the application to use
when creating time records for the retroactive
pay increase.
Time Record Date Type a date for the time records created for the
retroactive pay increase. Leave this Þeld blank
to use the work week ending date on the time
records.

NOTE For employees assigned to an overtime

pay plan, the report creates a time record for
each work week included in the retroactive
calculation. The date on each of the time records
is the work week ending date.

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Maintenance
 Check Group Type a check group value to associate the
retroactive pay with a speciÞc check group.
Process Group Type an alpha or numeric value to associate the
pay code with a speciÞc process group.
Distribution Select how you want to distribute retroactive time
Option records.
Select Current Distribution to create time records
using each employee’s current general ledger
account distribution deÞned on Employee
(HR11.1).
Select Historical Time Record to create time
records using the general ledger account
distribution from the original payment.
Update Option Select whether you want to update the application
with retroactive time records.
Select Report Only to produce an edit report
without creating actual time records.
Select Update to create time records in addition
to the edit report.
NOTE Entries in 4. Choose the Jobs tab if calculating pay for multiple job codes. With
Þelds on the Jobs tab the Jobs tab, you can deÞne up to seven job codes for which you can
override entries on the calculate retroactive pay. Consider the following Þelds.
corresponding Þelds on
the Selection and Time
Record tabs. Job Code Select the job code to calculate retroactive pay
for a speciÞc job. You can use this form to have
the application calculate retroactive pay for up to
seven job codes.
Retro Percent Type a percent value to calculate a retroactive
increase for the job code based on a percent of
earnings.
If you type a percent, leave the Amount Per Hour
Þeld blank.
Amount Per Hour Type an amount to calculate a retroactive pay
increase for the job code based on an amount
per hour.
If you type an amount per hour, leave the Retro
Percent Þeld blank.
Retro Pay Cd Select the pay code for the report to use when
(Retro Pay Code) creating time records for the retroactive pay
increase for the job code.

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Maintenance
 Pay Class Select a pay class that includes the kind of
pay you want included in the retroactive pay
calculation.
You cannot select both a pay class and pay
codes.
Pay Code Select a pay code that represents the kind of
pay you want included in the retroactive pay
calculation.
If you do not select a pay code, Payroll uses the
pay codes you select on the Selection tab.
You cannot select both a pay class and pay
codes.

5. Choose the Special Action icon to Add or Change the form.

6. Choose Validate Request to validate the form.
7. Choose the Submit form action to submit the report.

IMPORTANT If you give a retroactive pay increase to non-exempt

employees, run FLSA Overtime Calculation (PR132) to calculate overtime
due on the retroactive amount. For more information, see "Calculating
FLSA Overtime (U.S. and CA)" on page 399.

Calculating FLSA Overtime (U.S. and CA)

Run FLSA Overtime Calculation (PR132) to calculate the weighted average
rate for the required overtime premium amount due, based on the overtime
pay plan assigned to the employee. Use this form if you gave a retroactive pay
increase to non-exempt employees on Retroactive Pay Calculation (PR131).
The method for calculating overtime depends on how the overtime plan is set
up and whether or not the user supplies overtime pay codes.
If the manually entered overtime on the time record is less than the overtime
amount due, the application adjusts the premium on the supplied overtime
paycode. If additional overtime hours are due, the application creates an
FLSA overtime paycode using the weighted average rate.

IMPORTANT If you deÞned the overtime calculation as a required report in

the payroll cycle for the company or process level, this procedure is required.

STOP Before calculating overtime, you must verify that the employee is
nonexempt and has a valid overtime pay plan assigned on the Pay form tab
on Employee (HR11.1). For more information, see "Assigning Employee
Pay" on page 214.

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Maintenance
 Need More Details? Check out the following concepts:
• "How does Payroll Calculate FLSA Overtime?" on page 37
• "What are Payroll Distributions?" on page 262
• "What are Time Record Statuses?" on page 299

STEPS To calculate FLSA overtime

TIP The FLSA 1. Access FLSA Overtime Calculation (PR132) .
Overtime Calculation
(PR132) can be required 2. Run the report by Processing Group or Process Level by completing
as part of the Payroll the appropriate Þeld.
Cycle if PR132 is 3. Select the report options. Consider the following Þelds.
ßagged as required on
the Company (HR00.1)
or Process Level Update Option Select whether or not to update the application
(HR01.1) forms. with changes when the report is run.
Select Report Only to produce an edit report
without creating overtime records.
Select Update to create overtime records in
addition to the edit report.
Distribution If you create overtime time records through
Option PR132, Select C (Current) or P (Prorate to
Timerecords) to indicate whether you want the
overtime wages distributed to the home (Current)
distribution account or prorated to the distribution
on the time records.
If you select Prorate to Timerecords, the
application calculates the percentage of time
spent in each reporting area. (A reporting area is
a general ledger account and activity.) Only time
records used in the calculation of overtime hours
are prorated.
If you leave this Þeld blank, Current defaults.

TIP If you choose to rerun the PR132, you must

Þrst delete any created overtime record entries
using Time Record Entry (PR36.1), and then
rerun PR132.

Distribution Select the value that indicates whether or not

Report you want to create a General Ledger distribution
report.
If you leave this Þeld blank, No defaults and a
report is not created.

4. Run the report.

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Maintenance
NOTE FLSA Overtime 5. Access Payroll Cycle Status (PR00.1) to see if PR132 calculated properly.
Calculation (PR132)
cannot correctly If the status marker under Ovt It indicates that PR132
calculate overtime
on payroll history Calc is
converted through an asterisk (*) ran properly
Payroll History Load
CSV (PR560) because R is still running
the overtime premium
Þeld is not available in E ended in error
the conversion work Þle
on PR560. (blank) has not been run

IMPORTANT If FLSA Overtime Calculation (PR132) ended with errors,

or if time records are deleted, added or otherwise changed after running
PR132, you must rerun the PR132 before continuing the payroll cycle.
For more information, see "What Causes Errors in the Payroll Cycle?"
on page 452.

Creating Arrears Deductions

Use Arrears Automation (PR139) to put eligible deductions into arrears for
employees who do not have time records in Current, Process, or Error status,
or for employees who have current time records for only non-cash pay.
Although this report is not required, Lawson recommends using Arrears
Automation (PR139) to put deductions in arrears.

STOP A deduction is eligible for arrears if you select All or None, Create
Arrears or Net to Zero, or Create Arrears in the Arrears Þeld of Deduction
(PR05.1). For more information, see "DeÞning Deduction Codes" on page
103.

Need More Details? Check out the following concepts:

• "What is Arrears Automation?" on page 390
• "What are Deduction Cycles?" on page 98
• "What are Time Record Statuses?" on page 299

STEPS To create arrears deductions

1. Access Arrears Automation (PR139).

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Maintenance
NOTE If you select a 2. Choose the Selection form tab to Þnd employees who do not have time
pay class or pay codes, records in current status. When you run PR139, Payroll puts eligible
Payroll Þnds current time
records associated with deductions for these employees into arrears.
the pay codes or pay Consider the following Þelds.
class and changes them
from current to future Processing Group Select a processing group to search for
status before it creates employees who do not have current time records.
arrears deductions.
You cannot select both a Processing Group and
a Process Level.
Processing Level Select a process level to search for employees
who do not have current time records.
Department Select a department to search for employees
who do not have current time records. You must
select a process level in the Process Level Þeld
before you can select a department.
User Level Select a user level to search for employees who
do not have current time records.
Employee Group Select an employee group to search for
employees who do not have current time records.
Pay Frequency Select X to include employees paid weekly,
bi-weekly, semi-monthly, or monthly, and who do
not have current time records.
You can select more than one pay frequency. If
you do not select any pay frequencies, all pay
frequencies are included.
Include or Exclude Select the value indicating whether you want to
include or exclude status codes (from the status
Þeld) in the search criteria.
Status Select to include or exclude an employee status
code in your search for employees.
Employees Select an employee for whom you want to create
arrears deductions.
The application creates arrears for the employee
even if the employee does not meet the criteria
you select above. The employee must not
have current time records eligible for arrears
deductions.

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Maintenance
NOTE You cannot 3. Select the More tab to deÞne the settings for the arrears automation
select both a pay class report and to further deÞne the time records used in arrears automation.
and pay codes.
Consider the following Þelds.

Pay Class Select a Pay Class to include employees who

DO have current time records with pay codes
linked to this pay class.
Use this Þeld if you have employees with current
time records in a noncash or ßex dollar (no
regular pay) pay class. The application changes
the current status time records to future status
before putting eligible deductions into arrears.
Pay Codes Select a Pay Code to include employees who DO
have current time records with this pay code.
Use this Þeld if you have employees with current
time records in noncash or ßex dollar (no regular
pay) pay codes. The application changes the
current status time records to future status before
putting eligible deductions into arrears.
Deduction Cycle Select a deduction cycle from 1-9 to determine
which deductions to place into arrears.
Use Deduction (PR05.1) to assign individual
deductions to a speciÞc deduction cycle. Use
Employee Deduction (PR14) or Deduction Speed
Entry (PR15) to override the deduction cycles
deÞned on PR05.1 for individual employees.
Payment Date Type the payment date on which the payroll cycle
will perform arrears deductions.
The payment date, along with the deduction
cycle, determines which deductions the
application puts into arrears.
Arrears Status Select a value indicating whether you want to
create the arrears deduction in future or current
status.
If you create arrears in Current status, Payroll
processes the deductions in the next payroll
cycle in which the employee has current time
records. The application uses Earnings and
Deductions Calculation (PR140) to process the
arrears deductions.
If you create arrears in Future status you must
Þrst run Time Record Selection (PR38.1) or
Batch Time Record Update (PR137) to bring
the deductions to current status before running
Earnings and Deductions Calculation (PR140).

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Maintenance
 Update Select an option to determine if you want to
create the arrears deduction records and a report
or a report only.
Select Yes to create the arrears deduction
records and create a report. If you selected a pay
class or pay code, Payroll changes current time
records in the pay classes or pay codes to Future
status before the application updates the arrears
deduction records.
Select No to create a report to view pending
changes without making updates to the
application.
Run Option Select a value to determine whether you want to
create or delete arrears deductions.
Select Create if you want to create new arrears
deductions for the employees who meet your
selected criteria.
Select Delete if you want to delete arrears
deductions originally created by Arrears
Automation (PR139). Use this option if you
previously ran PR139 in error or with incorrect
parameters. If you want to delete all arrears
deductions for one employee, use One Time
Deduction (PR39).
Report Sequence Select the value indicating the order the report
prints.
Employee Select the value indicating whether you want
Sequence to override the default print order deÞned in
Company (HR00.1).
If you select Employee Name, employees list by
name.
If you select Employee Number, employees list
by number.

4. Choose the Submit form action to submit the form.

404 Chapter 26 Payroll Cycle: Pre-cycle Payroll User Guide

Maintenance
Calculating the Cost of Excess Life Insurance
Run Life Insurance Reportable Income (BN150) to calculate the cost of
excess employee and dependent life insurance for each employee.
You can calculate the cost of excess life insurance annually, monthly, or on a
pay period basis.

STOP Before you run Run Life Insurance Reportable Income (BN150),
you must complete enrollment maintenance and ßag plans included in the
excess life insurance calculation. For more information, see the BeneÞts
Administration User Guide.

STEPS To calculate the cost of excess life insurance

NOTE The BeneÞts 1. Access Life Insurance Reportable Income (BN150).
Administration
application performs 2. Complete the form. For more information, see the BeneÞts Administration
calculations based User Guide.
on the coverage and 3. Choose the Submit form action to submit the report.
contributions in effect
on the As of Date. You
can create a time record
for each employee
to update taxable
wages. The time record
represents the cost of
excess life insurance for
the reporting period.

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Maintenance
406 Chapter 26 Payroll Cycle: Pre-cycle Payroll User Guide
Maintenance
Chapter 27

Payroll Cycle: Calculate Earnings

This chapter covers how to calculate earnings for the payroll cycle within the
Lawson Payroll application.

STOP Before you calculate earnings, you must create time records,
run reports such as Retroactive Pay Calculation (PR131), FLSA Overtime
Calculation (PR132), and Time Record Edit (PR135) as required or as
necessary, and edit and verify completion and accuracy of time records.
For Earnings and Deductions Calculation (PR140) to pick up time records,
the time records must be in current, error, or processed status. For more
information, see "Payroll Cycle: Pre-cycle Maintenance" on page 383. For
more information, see "Editing Time Records" on page 377.

Payroll User Guide Chapter 27 Payroll Cycle: Calculate 407

Earnings
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 415 • "What Functions Does the Earnings and Deductions Calculation
Perform?" on page 408
• "What Options Are Available When Calculating Deductions and Net
Pay?" on page 409
• "What are the Uses for the Payment Date on Earnings and Deductions
Calculation?" on page 411
• "How Do I Monitor Earnings and Deduction Calculation Reports?"
on page 412
• "How Do I Process the Time Accrual Cycle Within the Payroll Cycle?"
on page 413

What Functions Does the Earnings and Deductions

Calculation Perform?
Run the Earnings and Deductions Calculation to complete the Gross to Net
calculation. The Earnings and Deductions Calculation performs the following
in Payroll:
• Updates deduction code changes to the employee deductions
• Calculates all current status time records and, optionally, error status time
records for the population selected
• Calculates all one-time deductions in current status for employees with
time records
• Calculates all deductions and wages for all deductions that are valid
according to the payment date and deduction cycle selected
• Updates the payroll history Þles with the new payroll data (creates records
with an open status)
• Creates payroll distributions for use in creating general ledger transactions
• Creates a report of all payroll data created
• Creates a garnishment audit report showing the calculation of any
garnishments and informational messages pertaining to the garnishments
• Creates a funding source report for pension participants
• Updates the earnings and deductions calculation status ßag on payroll
cycles status
When processing the Earnings and Deductions Calculation, the time records
considered for bypass and delete are only those records that cause the
application to halt processing. Records that can cause the application to halt
processing are those with incorrect tax categories or incorrect tax mapping
to BSI.

408 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

 Example
The following time records were created in Payroll for Janet Filman.
Figure 29. Example: Completing the Earnings and Deductions Calculation

When the payroll manager processed the Earnings and Deductions

Calculation, the following earnings and deductions were created for Janet.
Figure 30. Example: Processing the Earnings and Deductions Calculation

Payroll assigns the temporary number under the payment ID Þeld. In this
example, 164 is the temporary number assigned by Payroll for Janet Filman.

What Options Are Available When Calculating Deductions

and Net Pay?
The Earnings and Deductions Calculation provides options for determining
how the application reacts if time records are in error. Through the Earnings
and Deductions Calculation, you can:
• Re-run the Earnings and Deductions Calculation after correcting errors
in time records.
Reprocess the report for errors only to save application processing time.
• Bypass employees with time record errors and complete the original
payroll cycle; and then, run a separate payroll cycle for employees who
had time record errors

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Earnings
 • Complete the original payroll cycle and delete any time records in error
NOTE BSI tax warning The Earnings and Deductions Calculation creates several reports.
messages appear in an
output Þle of Earnings To Use
and Deductions
Calculation if the Print wage detail by employee the Earnings and Deductions
BSI product used is and employee-and employer-paid Calculation report.
“BSI Tax”. Warning deductions
messages do not
appear in the report and Print information about how the Garnishment report.
must be viewed in the garnishments are calculated
Message Viewer section
of the “BSI TaxFactory Indicate the time records in error and the Error report.
product”. display errors in BSI TaxFactory
List warnings messages and display the Warning report.
BSI TaxFactory messages
List deleted time records the Error Time Records Deleted
report.
List payment numbers voided by the Voids report.
Payroll
Report by common currencies and the Calculation report.
countries
Report pension payments Pension Funding Source report.

NOTE This is an optional report.

Report Pay to Bill Pay to Bill report.

NOTE This report is used only by

Pay to Bill users.

List information for Pay to Bill users Billable Basis and Fees reports.

IMPORTANT For records listed on the Errors Time Records Deleted report,
use Manual Payment to create payments for the employees who had error
time records. For more information, see "Creating Manual Payments" on
page 473.

410 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

What are the Uses for the Payment Date on Earnings and
Deductions Calculation?
When you process the Earnings and Deductions Calculation, you select the
payment date to print on the payments given to employees. This payment
date not only prints on the payments, but is also used for the following:
• To post cash and employee deduction accruals to the general ledger
transaction Þle
• To store payroll history for use in reporting of wages
• To verify which deductions are valid for the pay cycle
NOTE For the • To determine which one-time deductions to take in a pay cycle
application to take the
one-time deduction, the • To calculate MTD (month to date) and monthly limits on deductions
one-time deduction date • To verify which Direct Deposit distributions are valid for an employee
must be less than or
equal to the payment
date. Example
The payment created for Janet is dated January 17, 2001.
Therefore, general ledger postings are created as follows:
Figure 31. Example: Earnings and Deductions Payment Dates

When running tax reports, these wages are included in the Þrst quarter of
2001. More speciÞcally, these wages are stored in history with a date of
January 17, 2001.
Only deductions with an effective date range that including January 17,
2001(and are ßagged for the speciÞed deduction cycle) are taken.
Janet has two one-time deductions to take an additional amount of 401(k)
at two speciÞc times this quarter. Both are in Current status with dates of
January 1, 2001 and February 1, 2001. Only the Þrst one-time deduction
is taken in this cycle.
Only Direct Deposit distributions that have an effective date range that
includes January 17, 2001 (and are ßagged for the speciÞed deduction cycle)
are used for automatic deposit distributions.

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Earnings
How Do I Monitor Earnings and Deduction Calculation
Reports?
The Earnings and Deductions Calculation produces a number of edit reports.
Lawson recommends users monitor these reports when the user processes
the payroll cycle. The edit reports include Delete TR, Errors, Warnings,
Garnish and Voids.
The Delete TR report provides a list of all time records the application deleted
as a result of setting the ßags for Bypass Employee Errors and Delete Error
Time Records to Yes. Only the error time records that cannot be Þxed by
the application are deleted. If a time record is changed to error status by
making a change on the record, the application does not delete this time
record and write the error to the Delete TR report unless the time record
cannot be processed as changed.
The Errors report provides a list of all fatal errors which prevent the Payroll
Cycle reporting to stop.

IMPORTANT Only those time records with errors that cannot be Þxed by the
application are displayed on the Delete TR report. When you change the
wage rate of a processed time record, the application changes the status of
the time record to error. The application can Þx the error when the Earnings
and Deductions Calculation is reprocessed. This kind of error does not display
on the Delete TR report because the error can be Þxed by the application.

If the Tax Warning Messages ßag is set to Yes, the Warnings report displays
soft edits describing conditions the user can choose to review for accuracy.
These conditions do not prevent the payroll cycle programs from processing.
The report indicates when to view BSI messages in the BSI Message Viewer.
For example, employees who elect to have an additional amount or percent
withheld for federal taxes are listed on the Warnings report.
The Garnish report gives the user a consolidated report of what was and was
not calculated for garnishments for this payroll cycle.
The Void report displays Payroll-voided payment numbers. For example,
when an error is discovered on one or more printed payments and the user
goes back to edit or delete time records for these payments and re-runs the
Earnings and Deductions Calculation for errors only, the voided payment
numbers appear on the Voids report.

412 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

How Do I Process the Time Accrual Cycle Within the Payroll
Cycle?
When you update Time Accrual transactions, Payroll:
• Reads all pay records since the last period end date on Employee Plan
Inquiry for each participant
• Updates used hours from time records
• Calculates accrued hours based on plan parameters
• Transfers accrued hours to eligible hours based on plan parameters
• Creates lost transactions when total hours exceed limits
Before processing Time Accrual within the Payroll Cycle, you must Þrst create
time records. Once the time records are created, you can update time accrual
transactions, print payments and Direct Deposit receipts, close the payroll
cycle, and close the time accrual cycle.
The time accrual cycle can be integrated within the payroll cycle or it can
be run independent of a payroll cycle. To print current employee balances
including current usage on payments, you must run the Time Accrual Update
after the Earnings and Deductions Calculation and before the Payment Print.

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Earnings
 Example
The ßowcharts on the next page illustrate the difference in the order between
Time Accrual processing integrated with a payroll cycle and processing Time
Accrual independent of the payroll cycle.
Figure 32. Example: Time Accrual and Payroll Cycle Processing integration

Integrate Time Accrual Run Time Accrual Cycle

Step Within Payroll Cycle Independent of a Payroll
to Allow Cycle to Not
Printing TA Balances Print TA Balances on
on Payments Payments

1 1
5 5
PR132 PR132
PR160 FLSA OT PR197
FLSA OT
plans only plans only

2 6 2 6

PR140 PR141 PR140 TA170

3 7 7
3
TA170 PR197 TA175
PR160

4 8 8
4
TA175 TA199 TA199
PR141

414 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

Procedures in this Chapter
The following procedures explain how to calculate earnings.
• "Verifying the Payroll Cycle Status" on page 417
• "Calculating Deductions and Net Pay" on page 417
• "Updating Deduction Changes" on page 422
• "Updating Enrollment Plan Changes" on page 423

Payroll User Guide Chapter 27 Payroll Cycle: Calculate 415

Earnings
 • "Updating Time Accrual Transactions" on page 423
Figure 33. Procedure Flow: Calculate Earnings

416 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

Verifying the Payroll Cycle Status
Verify the payroll cycle status through Payroll Cycle Status (PR00.1).

STOP Before you can view an updated status of the payroll cycle, you must
enter time records into the application and run one or more forms. For more
information, see "Time Records: Entering" on page 295.

Need More Details? Check out the following concepts:

• "How Do I Prepare for Payroll Cycle Processing?" on page 362

STEPS To verify the payroll cycle status

1. Access Payroll Cycle Status (PR00.1).
2. Verify the status. For more information, see "Verifying the Payroll Cycle
Status" on page 417.

Calculating Deductions and Net Pay

Use Earnings and Deductions Calculation (PR140) to calculate and report
employee deductions, company deductions, and net pay for all employees
with Current status time records. The Earnings and Deductions Calculation
(PR140) creates up to Þve reports.
Earnings and Deductions Calculation (PR140) can be processed for an
entire company, one process level, or multiple process levels making up a
processing group.

For more information on Pay to Bill features on the Earnings and

Deductions Calculation (PR140), see the Pay to Bill User Guide.

STOP Before calculating deductions and net pay, time records must
be entered, and if required, forms such as FLSA Overtime Calculation
(PR132) and Tip Calculation (TP135) must be run. For more information,
see "Calculating FLSA Overtime (U.S. and CA)" on page 399. For more
information, see "Calculating Tip Credit Records (U.S. and CA)" on page 393.

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Earnings
 Need More Details? Check out the following concepts:
• "How Do I Prepare for Payroll Cycle Processing?" on page 362
• "What Options Are Available When Calculating Deductions and
Net Pay?" on page 409
• "What are the Uses for the Payment Date on Earnings and
Deductions Calculation?" on page 411
• "How Do I Monitor Earnings and Deduction Calculation Reports?"
on page 412

STEPS To calculate deductions and net pay

1. Access Earnings and Deductions Calculation (PR140).
2. Run the report for an entire company, one process level, or multiple
process levels making up a processing group by choosing the parameters
in the Company, Processing Group, or Process Level Þelds.

IMPORTANT To assist with balancing, Lawson recommends running

Earnings and Deductions Calculation (PR140) and Payment Print
(PR160) with the same parameters in the Company, Processing, and
Group, and Process Level Þelds.

TIP You can continue to 3. Choose the Selection tab to deÞne the parameters for the earnings and
process payroll without deductions calculation. Consider the following Þelds.
correcting employee
error time records by
bypassing employee Payment Date Type the payment date. The payment date prints
errors. If you do not on payments when Payment Print (PR160) is
bypass employee errors, run. This date determines what deductions and
the time records in error one-time deductions to process.
must be corrected
before you can continue Deduction Cycle Select a deduction cycle. The deduction cycle
to process payroll. determines which deductions are taken for the
payroll cycle.
Error Time Select Yes to process only Error status time
Records records.
If you select No or leave the Þeld blank, Payroll
processes all time records and produces an edit
report.
Running for errors only reduces run time
signiÞcantly.
Print Error Select Yes to print only Error status time records
Records on the edit report.
If you select No or leave the Þeld blank, Payroll
produces a report of all employees with time
records processed in the cycle.
Rerun Select the value indicating if the report is a
re-run. For more information, see "Payroll Cycle:
Troubleshooting" on page 451.

418 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

 Report Only Select Yes to produce an edit report without
creating actual payment records.
If you select No, the report creates payment
records in addition to the edit report. You must
create payment records before you can run
Payment Print (PR160).

NOTE If you choose

to process errors, both IMPORTANT Lawson recommends setting the Error Time Records and
the Bypass Employee Print Error Records to the same status, either Y (Yes) or N (No) for both
Errors and Delete Error ßags.
Time Records ßags must
be set to YES.
4. Select Yes or No in the Bypass Employee Errors Þeld to indicate if you
want to bypass employee errors and continue with the payroll cycle.
Select Yes or No in the Delete Error Time Records to indicate whether
or not you want to delete time records that are in error when you run
Earnings and Deduction Calculation (PR140).
If Then
You select Yes in the Bypass the application bypasses
Employee Errors Þeld and Yes in employees with time record
the Delete Error Time Records errors and marks Payroll Cycle
Þeld Status (PR00.1) with an asterisk
(*). The * means you can continue
processing the payroll cycle.
The application deletes the time
records in error status and creates
the Error Time Record Deleted
report. The time records that
were in error are no longer in the
application. If you want to process
time records that had an error
status, you must enter the records
again or create manual payments
on Manual Payment (PR80.1).
Do not select Yes if you wish to
immediately correct and process
those time records that were in
error.

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Earnings
 If Then
You select No in the Bypass the application marks PR00.1 with
Employee Errors Þeld and No in an E and you must correct the
the Delete Error Time Records errors and re-run Earnings and
Þeld and there are employee time Deduction Calculation (PR140)
records in error before continuing with the payroll
cycle. If you choose to process
errors, both the Bypass Employee
Errors and Delete Error Time
Records ßags must be set to YES.
When the Þelds are set to No,
the application does not delete
error time records and you can
immediately correct the error time
records and re-run PR140 before
continuing with the payroll cycle.
You select No in the Bypass you receive an error message
Employee Errors Þeld and Yes in when you perform the Add form
the Delete Error Time Records action.
Þeld
You select Yes in Bypass the Time Record is changed
Employee Errors, and No in Delete to Error status, the Error Time
Error Time Records Record shows on the Error report,
PR140 stops processing, and the
Payroll Cycle Status (PR00.1)
shows an error.

5. Select the More tab to further deÞne the parameters for the earnings and
deduction calculation. Consider the following Þelds.

Garn Report Select the value indicating the order to list

Sequence garnishments.
This report is used to verify the calculation of the
garnishments processed in this payroll cycle.
Override Bank If you select a bank code, your selection overrides
Code the bank and cash accounts associated with the
Employee’s process level.
To complete a bank code override, you must also
select the override bank code in Payment Print
(PR160).
No Dir Dep, All If you select yes, the payroll produces only
System Payments system checks for employees regardless of
whether or not the employees are setup for direct
deposit on the employee master.

6. Choose the Add form action to add the job.

7. Choose the Submit form action to Submit the form.

420 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

NOTE You cannot 8. If prompted to update employee deductions, run Deduction and Garn
run Earnings and Fee Update (PR115). For more information, see "Updating Deduction
Deductions Calculation
(PR140) if you are Changes" on page 422.
prompted to Þrst run If prompted to set up federal garnishment for category G, run Load Req
Deduction and Garn Fee
Update (PR115). United States Federal Garnishment Rules (PR925) for your federal tax
authority. For more information, see "Loading U.S. Federal Garnishment
Rules" on page 171.
CAUTION Lawson
recommends verifying the
Earnings and Deductions
report before proceeding
with the payroll close.

9. Access Payroll Cycle Status (PR00.1) .

10. Verify the completion of the Earnings and Deduction Calculation.

Follow Up
The Garnishment Audit Report produced by Earnings and Deductions
Calculation (PR140) shows the garnishments taken, how much exempt
and disposable income is available for each employee, and any errors or
messages for conditions affecting how the garnishments were or were not
taken.

Related Reports and Inquiries

To Use
Update employee deductions with Deduction and Garn Fee Update
changes made to information on (PR115)
Deduction (PR05.1), Employee
Garnishment (PR25.2), or Pay
Summary Groups (PR20.2)
Update all beneÞts for plans in Plan Update (BN105)
which coverage, contributions, or
general ledger overrides are added
or changed
Update all frequency tables used for Frequency Table Update (BN104)
calculation of beneÞts deductions
Verify where earnings and Payroll Close (PR197)
deductions expense to the General
Ledger
View earnings and deductions for Payroll Register (PR141)
balancing

Payroll User Guide Chapter 27 Payroll Cycle: Calculate 421

Earnings
Updating Deduction Changes
When you add, change or submit a job on Earnings and Deductions
Calculation (PR140), you are prompted by Payroll if running Ded, Garn Fee,
PSG Update (PR115) is required to continue processing the payroll cycle
and to update employee deductions with changes made to information on
Deduction (PR05.1), Employee Garnishment (PR26), or Pay Summary Group
(PR20.2).

STOP If you overrode deduction information at the employee level, the

override information is not changed by PR115. Information is changed
through the Earnings and Deductions Calculation (PR140).

Need More Details? Check out the following concepts:

• "What Options Are Available When Calculating Deductions and
Net Pay?" on page 409
• "How Do I Monitor Earnings and Deduction Calculation Reports?"
on page 412

STEPS To update deduction changes

1. Access Ded, Garn Fee, PSG Update (PR115).
2. In the Company Þeld, select a company for the deduction, garnishment
fee, and PSG update.
3. Choose the Add form action to add the job.
4. Choose the Submit form action to submit the report.

422 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

Updating Enrollment Plan Changes
When you add, change, or submit a job on Earnings and Deductions
Calculation (PR140), you might have to run Plan Update (BN105) or
Frequency Table Update (BN104) to update enrollment for plan changes
and frequency table changes.

STOP Run BeneÞt Plan Status Report (BN220) in T (To Be Updated) report
option to verify if running BN105 and BN104 is required to complete payroll
processing. Use Plan Update (BN105) and Frequency Table Update (BN104)
only if you are a Lawson BeneÞts Administration application user.

Need More Details? Check out the following concepts:

• "What Options Are Available When Calculating Deductions and
Net Pay?" on page 409
• "How Do I Monitor Earnings and Deduction Calculation Reports?"
on page 412

STEPS To update enrollment for plan changes

1. Access Plan Update (BN105).
2. Complete and Add the form. For more information, see the BeneÞts
Administration User Guide.
3. Choose the Submit form action to submit the form.
4. Access Frequency Table Update (BN104).
5. Complete and Add the form. For more information, see the BeneÞts
Administration User Guide.
6. Choose the Submit form action to submit the form.

Updating Time Accrual Transactions

Use Time Accrual Update (TA170) to create and update transactions for
employees enrolled in time accrual plans. You can update either manual
transactions and current payment records, or update only manual transactions
through a speciÞc date.

STOP Before processing time accrual within the payroll cycle, you must
Þrst create time records. For more information, see "Time Records: Entering"
on page 295.

Payroll User Guide Chapter 27 Payroll Cycle: Calculate 423

Earnings
 Need More Details? Check out the following concepts:
• "How Do I Process the Time Accrual Cycle Within the Payroll
Cycle?" on page 413

STEPS To update time accrual transactions

1. Access and run Time Accrual Update (TA170).
NOTE Setting the 2. Complete the form. Consider the following Þelds.
Manual Transaction
Only ßag to N on Time Processing Group To update time accrual balances for a speciÞc
Accrual Update (TA170)
allows TA170 to pick up processing group, select a processing group.
manual payments and
system payments. A processing group is made up of process levels
grouped for the purpose of processing multiple
process levels through payroll and time accrual
cycles at one time. Processing groups are
deÞned in Processing Groups (HR08.1).
Process Level To update time accrual for only employees in a
speciÞc process level, select a process level.
If you leave this Þeld blank, all employees for
the company or processing group speciÞed are
updated.

NOTE To process an employee through Time

Accrual Update (TA170), the employee must
have a time record. The only exception to this
is when a manual payment created in Manual
Payment (PR80.1) has a value of L (Last) in the
Time Accrual Flag Þeld.

Annual, Semi Select the value that indicates which limits the
Annual, Quarterly, application should apply for plans that have an
Monthly annual, semi-annual, quarterly, or monthly limit
cycle.
Manual Select the value indicating whether you want to
Transactions Only update only manual transactions.
Manuals Thru If you select Yes in the Manual Transactions Þeld,
Date type the date through which you want to update
manual transactions.
Sort Sequence Select the value that indicates how you want the
report to sort.
If you leave this Þeld blank, the report sorts by
Plan.

3. Choose the Add form action to add the job.

424 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide

NOTE If you run 4. Choose the Submit form action to submit the update.
Earnings and
Deductions Calculation 5. Access Payroll Cycle Status (PR00.1) .
(PR140) after you run 6. Verify the completion of TA170.
Time Accrual Update
(TA170), run TA170
again to recalculate the
correct balances.
Related Reports and Inquiries
To Use
List hours used, hours accrued, Time Accrual Report (TA175)
manual transactions processed,
hours lost, or all transactions
processed by Time Accrual Update
(TA170) for the current time accrual
cycle.

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Earnings
426 Chapter 27 Payroll Cycle: Calculate Earnings Payroll User Guide
Chapter 28

Payroll Cycle: Create Payments

This chapter covers how to create payments for the payroll cycle within the
Lawson Payroll application.

STOP Before creating payments, you must enter time records, run required
reports such as Tip Calculation (TP135) or FLSA Overtime Calculation
(PR132), complete Earnings and Deductions Calculation (PR140), and
successfully complete all pre-required forms. For more information, see "Time
Records: Entering" on page 295. For more information, see "Payroll Cycle:
Editing Time Records" on page 371. For more information, see "Payroll Cycle:
Pre-cycle Maintenance" on page 383. For more information, see "Payroll
Cycle: Calculate Earnings" on page 407.

Payroll User Guide Chapter 28 Payroll Cycle: Create 427

Payments
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 432 • "What Happens When I Run the Payment Print?" on page 428
• "What are Payroll Accruals?" on page 429

What Happens When I Run the Payment Print?

Run Payment Print to create employee payments and direct deposit receipts
and for all payments processed through the Earnings and Deductions
Calculation for the population and speciÞed bank code.
Payment Print serves the following functions in Payroll:
• Creates the payment print Þle
• Creates the direct deposit receipt print Þle
• Creates the direct deposit tape Þle for submission to the bank
• Assigns payment numbers (check numbers) to the payroll history
previously created by the Earnings and Deductions Calculation
• Creates payment history with the appropriate payment numbers and
amounts for use in reconciling and voiding payments
• Automatically voids used alignment form numbers
• Updates the payment print status ßag on Payroll Cycle Status
When Payment Print is complete, print the payment and Direct Deposit data
on the appropriate check stock and copy the tape Þle to tape.

Example
The following time records were created in Payroll for Janet Filman.
Figure 34. Example: Time Records and Payment Print

428 Chapter 28 Payroll Cycle: Create Payments Payroll User Guide

 When the payroll manager processed the Payment Print, the following
payment was created for Janet.
Figure 35. Example: Processing Payment Print

What are Payroll Accruals?

Payroll allows you to create general ledger payroll accruals for all company
expenses when a payroll period spans two accounting periods. Entries
created by the Accrual Program are identiÞed as auto-reversing entries in
the General Ledger Transactions Þle.
When you use the LawsonGeneral Ledger application, the auto-reversing
indicator allows posting to the general ledger to occur in the current period
with a reversal in the next accounting period when you post the actual entries
for the payroll cycle. The application creates entries for wages as well as
company-paid payroll taxes.
The application assumes eight-hour working days when calculating the
accrual. The accrual for salaried employees is based on the employee’s job
code or the annual hours entered on Employee. To perform an accrual for
salaried employees, determine the hourly rate by dividing the annual salary
by the annual hours, multiplied by the FTE (Full Time Equivalent) factor. For
employees not associated with a job code, the report uses the annual hours
deÞned for the company in the calculation.
Accrual Program and Payroll Close are exclusive of each other, but either or
both can be used to create accruals. If an accrual is required for the last few
days of the month, use Accrual Program. If you use Accrual Program, do not
use the Previous Period Tab on the Payroll Close in that cycle or the next cycle
that follows when the reversal of the accrual occurs. When you follow this
process, the reversal of the accrual in the next month happens automatically.

Comparison of Accrual Functions

Use Payroll Close to create accruals when the current payroll close is near
the close date of the previous period and to create entries from the current
period for posting to a previous period, or to split expenses by Percent or
Time Record dates.

Payroll User Guide Chapter 28 Payroll Cycle: Create 429

Payments
 The amount you enter determines the amount posted to the previous period
using the date entered in the General Ledger Date Þeld.
Use Accrual Program when the current payroll close is not near the close
date of the previous period, and to create auto reversing entries to accrue an
estimated amount of all company expenses.
Table 4. Example: Comparison of Accrual Functions

PAYROLL CLOSE PAYROLL ACCRUAL

METHOD % TIME DAYS % TIME
RECORD RECORD
Requires PR140 X X X X X
Requires PR160 X X
Allows different X X
% or days by EE
criteria
Accrues salary X X X X X
Accrues taxes X X X X X
Accrues beneÞts X X
Can be run multiple X X
times
Allows prior period X X X X X
posting
Reßects actual X
expenses
Reßects estimated X X X X
expenses
Requires time X X
entry dates
corresponding with
cutoff

Accrual Exceptions
The application creates wage expense distributions for overtime time records
by work period from FLSA Overtime Calculation. Because the application
creates only one time record with the work-week end date, the wage expense
distributions split by percent of wages.
Wage expense distributions for retroactive pay time records are created by
the application through Retroactive Pay Calculation, and split by percent of
wages. The split occurs because the application creates only one time record
with the retroactive pay amount.
Wage expense distributions for voids are based on the void date.
Wage expense distributions for manual payments, created on Manual
Payment with no time record date deÞned, are based on the payment date.

430 Chapter 28 Payroll Cycle: Create Payments Payroll User Guide

 Wage expense distributions for manual payments, created on Manual
Payment with time record dates deÞned, are based on the time record dates.
Wage distributions for adjustments created on Adjustment, are based on
the adjustment date.
Other expense distributions such as company-paid deductions are based on
a percent of wages.

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Payments
Procedures in this Chapter
The following procedures explain how to process payments.
• "Verifying the Payroll Cycle Status" on page 433
• "Printing Payments and Direct Deposit Receipts" on page 433
• "Creating General Ledger Payroll Accruals" on page 437
• "Creating the Payroll Register (U.S. and CA)" on page 439
Figure 36. Procedure relationship: Payroll Cycle: Create Payments

1
Verify Payroll
Cycle Status

2
Print Payments
and Direct Deposit
Receipts

3
-Optional-
Create GL Payroll
Accruals

4
Create Payroll
Register

432 Chapter 28 Payroll Cycle: Create Payments Payroll User Guide

Verifying the Payroll Cycle Status
Verify the payroll cycle status through Payroll Cycle Status (PR00.1).

STOP Before making payments, you must enter time records, run required
reports such as Tip Calculation (TP135) or FLSA Overtime Calculation
(PR132), complete Earnings and Deductions Calculation (PR140), and
successfully complete all pre-required forms. For more information, see "Time
Records: Entering" on page 295. For more information, see "Payroll Cycle:
Editing Time Records" on page 371. To skip directly to the procedures, see
"Payroll Cycle: Pre-cycle Maintenance" on page 383 For more information,
see "Payroll Cycle: Calculate Earnings" on page 407.

Need More Details? Check out the following concepts:

• "How Do I Prepare for Payroll Cycle Processing?" on page 362

STEPS To verify the payroll cycle status

1. Access Payroll Cycle Status (PR00.1).
2. Verify the status. For more information, see "Verifying the Payroll Cycle
Status" on page 433.

Printing Payments and Direct Deposit Receipts

Payment Print (PR160) creates a print Þle of payments and direct deposit
receipts based on earnings and deductions calculated by Earnings and
Deductions Calculation (PR140), and creates a Þle of direct deposit payment
information that can be copied to tape for submission to the processing
Þnancial institution.
To print custom checks and receipts with a third-party software, choose
to create an output data Þle.

STOP Before you print payments, you must successfully complete the
Earnings and Deductions Calculation (PR140). For more information, see
"Calculating Tip Credit Records (U.S. and CA)" on page 393.

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Payments
 Need More Details? Check out the following concepts:
• "What Happens When I Run the Payment Print?" on page 428

STEPS To print payments and direct deposit receipts

NOTE You will need to 1. Access Payment Print (PR160).
process the Payment
Print separately for each 2. Choose the Company, Process Level, or Processing Group in the
bank code associated appropriate Þeld.
with the payment 3. Select Yes or No in the Hourly Rate Þeld.
records created by
the Earnings and When you select Yes, hourly rates print on checks and direct deposits
Deductions Calculation based on the selection in the Type Þeld.
(PR140).
4. If you selected Yes in the Hourly Þeld, select one of the following in the
Type Þeld:

Choose To
B (Base Rate) Print the base rate from the time
record. This rate does not factor in
shift differential or premium rates,
if they exist. With this option, a
new line item is printed on the
check stub for every pay summary
group and rate change.
C (Calculated Rate) Calculate a rate of pay by dividing
gross pay by the hours for each
pay summary group represented.
D (Actual Detail Rate) Print the actual rates for base
rates, shift differential and
premium rates separately with the
wage amount.
S (Actual Summary Rate) Add the actual rates for the
base rates, shift differential, and
premium rates together. The
report prints the total of the rates
for every pay summary group and
for each time one of the three
rates change.

5. Choose from the following report options in the Report Option Þeld:

434 Chapter 28 Payroll Cycle: Create Payments Payroll User Guide

 Select For
Report Option 1 (Normal Run) Normal processing of payments
and Direct Deposit receipts.
If you re-run the reports after
payments are printed, use this
option to automatically void the
original payments.
Report Option 2 (PrenotiÞcation Creation of a tape of prenotiÞcation
Only) entries only.
Use this option for U.S. and
non-Canada employees.
Report Option 3 (Rerun with Voiding and re-running payments
Voids/Recreate Tape) in the event of a printer jam.
Select the Rerun tab to complete
the payment print.
Report Option 4 (Reprint Deletion of original payments and
payments/Recreate Tape) Direct Deposit Þles in error.
Select the Rerun tab to complete
the payment print.

6. Select the Rerun tab if you chose report Option 3. Consider the following
Þelds.

Serial Number Type the serial number associated with the

original payment to re-run Payment Print (PR160)
using report option 3 (Rerun With Voids/ Recreate
Tape).
Payroll assigns a serial number to the payment
print Þle when you run PR160.
Void Payment Type a payment number to deÞne the beginning
of a range of payments to void.
A void payment range is required when you
re-run payments.
Void Receipt Type a direct deposit receipt number to deÞne
the beginning of a range of direct deposit receipts
that are incorrect and must be voided by Payroll.
If the original direct deposit receipts are correct,
you do not have to re-run direct deposit receipts
when you recreate a direct deposit tape.

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Payments
 Recreate Tape/or Select the value determining whether the direct
Bank File deposit tape is recreated when you re-run
payments.

7. Select the Rerun tab and complete the Reprint box if you chose report
Option 4. Consider the following Þelds.

Serial Number If you selected report option 4, Reprint

Payments/Recreate Tape (PR160), type the
serial number associated with the original
records.
Recreate Tape or Select the value determining whether the direct
Bank File deposit tape is recreated when you re-run
payments.
Reprint Select the value indicating whether you want an
entire payment range reprinted using the same
payment numbers as the original run.
Bank File Create Type the value identifying the ACSS/Direct
Nbr Deposit Þle as unique from the last Þle created.
Increment this Þeld by one each time a Þle is
created. When it reaches 9999, start over at
0001.

8. Select the Payment Print tab. Consider the following Þelds.

Starting Payment Type a starting payment number. If you specify

zero alignment forms, the starting payment
number is the Þrst employee payment printed. If
you type a value in the Alignment Forms Þeld,
the starting payment number is the Þrst voided
alignment payment.
Starting Receipt If the selected bank code allows direct deposit
processing, type a starting pay receipt number.
If you specify zero alignment forms, the starting
receipt number is the Þrst employee pay receipt
printed. If you type a value in the alignment
forms Þeld, the starting receipt number is the Þrst
voided alignment receipt.
Prenote Also Select Yes or No to indicate whether or not you
want to create a Þle for use with custom checks
and receipt printing.

NOTE You must have a third party interface to

create custom checks and receipts.

436 Chapter 28 Payroll Cycle: Create Payments Payroll User Guide

 Tape Date Type a date in the Tape Date Þeld to determine
the Þle creation date on the Þle header record
of the direct deposit tape. If you leave the Tape
Date Þeld blank, the payment date entered in the
Earnings and Deductions Calculation (PR140)
defaults.
Laser Print File Select No, Yes with TA detail, or Yes.
TIP Do not process the 9. Print the Payment and Direct Deposit receipts on the appropriate check
Payroll Close (PR197) stock.
until you have an
opportunity to print 10. Copy the tape Þle to tape.
all payments on the 11. Access Payroll Cycle Status (PR00.1) .
appropriate stock. This
allows you to reprint any 12. Verify the completion of the payment print.
payments damaged in
the printing process.
Follow up
Once Payment Print (PR160) is complete, you can Þnd the Þle in the work
directory.
Select the File Name tab to create unique names for the Þles created from
Payment Print (PR160).

Related Reports and Inquiries

To Use
Display payment information for U.S. Payment Inquiry (PR50.2)
or Canadian employee payment
records
Combine multiple Direct Deposit ACH Tape Concatenation (PR19.1)
records into one Þle when Payment
Print (PR160) is run multiple times
for multiple bank codes
Display P45 information P45 Summary (UK50.2)
Display detailed payment information Payment Details (UK50.3)
Display payment information for an Payment List (UK50.4)
employee

Creating General Ledger Payroll Accruals

Use the Accrual Program (PR195) to create estimated general ledger
payroll accruals for all company expenses when a payroll period spans two
accounting periods. This report must be run only once during the general
ledger period.

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Payments
 STOP Before you run the Accrual Program (PR195) for the cycle including
the deductions you want to accrue, run Earnings and Deductions Calculation
(PR140) if you plan to choose the report selections of Percent or Time
Records on PR195. For more information, see "Calculating Tip Credit
Records (U.S. and CA)" on page 393.

Need More Details? Check out the following concepts:

• "What are Payroll Accruals?" on page 429

STEPS To create General Ledger payroll accruals

1. Access Accrual Program (PR195).
NOTE If you use the 2. Complete the form. Consider the following Þelds.
percent or time record
date methods for the Report Selection Select D (Days) if the accrual is based on the
Report Selection,
you must run the number of days entered in the appropriate
Earnings and Deduction Days/Percents Þelds.
Calculation (PR140)
before you run the Select P (Percent) to create general ledger
Accrual Program payroll accruals based on a percent of wages
(PR195). and company taxes calculated by Earnings and
Deduction Calculation (PR140).
When using the Percent option, you must run
PR140 to start a payroll cycle before you run
Accrual Program (PR195).
Company-paid taxes are based on percent of
wages accrued.
Select T (Time Records) to create all payroll
accruals based on wages with time records dated
on or before the parameter date.
Time Record Date If you selected T (Time Records), deÞne a date
for the application to create wage expense
distributions for all processed time records with
dates equal to or less than the deÞned time
record date. These distributions are created with
the date typed in the General Ledger Date Þeld.
When using the Percent option, you must run
PR140 to start a payroll cycle before you run
Accrual Program (PR195).

3. Re-run Earnings and Deduction Calculation (PR140) for the regular

deduction cycle.
4. Continue processing the payroll cycle.

438 Chapter 28 Payroll Cycle: Create Payments Payroll User Guide

Creating the Payroll Register (U.S. and CA)
The Payroll Register (PR141) is a hard copy of the payroll as a report of all
earnings and deductions processed in the current payroll cycle. Use this
report for balancing and auditing payroll records.
The register contains all employee earnings and deduction information
processed through a payroll cycle, including payroll cycle payments, all open
voids, manuals, and adjustments.

Need More Details? Check out the following concepts:

• "What is Payroll Cycle Balancing?" on page 598

STEPS To create the payroll register

1. Access Payroll Register (PR141).
TIP To maintain an 2. Complete the form. Consider the following Þelds.
electronic copy of Payroll
Register (PR141), give Processing Group Select a processing group to include in the
each new job a unique
name. register only payments for employees associated
with a speciÞc processing group.
Process Level Select a process level to include in the register
only payments to employees associated with a
speciÞc process level.
Bank Code Select a bank code to include in the register
only payments for employees associated with a
speciÞc bank code.
Employee Select an employee sequence to override the
Sequence default print order deÞned for the company.
If you select Time Record PL in the Employee
Sequence Þeld, wage and deduction amounts
are reported based on the process level on the
time records. Lawson recommends using this
employee sequence for employees paid from
different EINs.
Summary Option Select 1 (Company Totals) to include only
company totals.
– or –
Select 2 (Process Level Totals) to include
company and process level totals.
– or –
Select 3 (Department Totals) to include company,
process level, and department totals.
If you leave the Summary Option Þeld blank, the
payroll register includes detail by employee along
with company, process level, and department
totals.

Payroll User Guide Chapter 28 Payroll Cycle: Create 439

Payments
 Garnishment Select the value that indicates whether you want
Report a garnishment report to list.
Garn Report Select a report sequence for the garnishment
Sequence report.
Total Common/ Select whether you want a total for all common
Curr/ Countries work countries and common currencies. A total
is automatically given for each work country and
currency combination in the company.

3. Choose the Submit form action to submit the job.

WARNING Print Payroll

Register (PR141) before
completing Payroll Close
(PR197) to obtain a
permanent record. The
Payroll Register (PR141)
cannot be recreated after
Payroll Close (PR197) is
complete.

4. Access Payroll Cycle Status (PR00.1).

5. Verify the payroll cycle status.

Related Reports and Inquiries

To Use
Produce a detailed register of Consolidated Payroll Register
earnings and deductions for all (PR142)
payments that have not been closed
by the Payroll Close (PR197)
List all payments not closed by Payment Register (PR162)
Payroll Close (PR197), run PR162
with Yes in the Current Payments
Þeld

440 Chapter 28 Payroll Cycle: Create Payments Payroll User Guide

Chapter 29

Payroll Cycle: Close

This chapter covers how to close the payroll cycle within the Lawson Payroll
application.

STOP Before continuing the Payroll Cycle Close, all required programs
must complete successfully. For more information, see "Payroll Cycle: Editing
Time Records" on page 371. For more information, see "Payroll Cycle:
Pre-cycle Maintenance" on page 383. For more information, see "Payroll
Cycle: Calculate Earnings" on page 407. For more information, see "Payroll
Cycle: Create Payments" on page 427.

Payroll User Guide Chapter 29 Payroll Cycle: Close 441

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 445 • "What Functions Does the Payroll Close Perform?" on page 442
• "What is the Payroll Close General Ledger Date Used For?" on page
443
• "How is the General Ledger Updated With Payroll Transactions?"
on page 444
• "What Function Does General Ledger Posting Perform?" on page 444

What Functions Does the Payroll Close Perform?

After running the Payment Print, print payments and receipts on the
appropriate forms, copy the direct deposit Þle to tape, and run the Payroll
Close to close out the payroll cycle. The Payroll Close picks up all payments
processed through the Payment Print for the population you specify.
Payroll Close can be run in report mode to produce a distribution edit report.
Review this report for accuracy before performing the close in update mode.

IMPORTANT After you run the Payroll Close in Update mode, you cannot go
back and recalculate or reprint payments for the closed payroll cycle.

The Payroll Close serves the following functions in Payroll:

• Creates open payroll distribution records
• Updates the payroll history created by the Earnings and Deductions
Calculation to a Closed status
• Updates BeneÞts Administration history
• UpdatesTime and Attendance history
• Updates quarterly earnings and deduction totals
• Updates Tips history for manuals and adjustments processed outside
a payroll cycle
• Deletes all processed time records and creates a copy of time records
in history
• Deletes all processed one-time deductions
• Creates currency error distribution records
• Deletes *’s in the payroll cycle status
• Creates a summary and detail report or both of created general ledger
transactions
Lawson recommends performing a full backup before and after performing
the payroll close.

442 Chapter 29 Payroll Cycle: Close Payroll User Guide

What is the Payroll Close General Ledger Date Used For?
When you process the Payroll Close, select the general ledger date in the
GL Date Þeld.
The general ledger date is used for posting of company expenses and
company accruals to the payroll distribution Þle.

Example
The payment created for Janet is dated January 17, 2001. When processing
the Payroll Close for the payroll cycle, the payroll manager entered the period
end date of January 10, 2001, as the general ledger date. Therefore, general
ledger postings are created as follows:
Table 5. Example: Payroll Close General Ledger Dates

GL Date
Cash 4321 CORP 11400 - 0000 $285.54 1/17/01
Fed w/h accrual 4321 CORP 23200 - 0000 $42.61 1/17/01
State w/h accrual 4321 CORP 23235 - 0000 $19.75 1/17/01
Reg pay expense 4321 CORP 51000 - 0001 $355.00 1/17/01
Sick pay expense 4321 CORP 51000 - 0003 $100.00 1/17/01
OVT pay expense 4321 CORP 51000 - 0005 $30.00 1/17/01
FUTA accrual 4321 CORP 23400 - 0000 $3.88 1/17/01
SUTA accrual 4321 CORP 23450 - 0000 $13.10 1/17/01

The period end date, which prints on the payment stub, is derived from the
time record date. If you are processing the payroll cycle for time records
falling into multiple pay periods, the latest pay period end date is printed on
the employee’s payment stub.

Payroll User Guide Chapter 29 Payroll Cycle: Close 443

How is the General Ledger Updated With Payroll
Transactions?
The General Ledger is updated with payroll transactions when the General
Ledger Posting is performed. The posting does not have to be tied to the
payroll cycle, but must be performed at period end to post payroll transactions
to the appropriate period in the General Ledger.

IMPORTANT General Ledger Posting (PR198) can post distributions for

more than one payroll cycle, so you do NOT need to run this report every
time you run Payroll Close (PR197).

The General Ledger Posting Þnds open payroll distributions created by the
Payroll Close for the company, processing group, or process level you select
on the General Ledger Posting, posts the distributions to the GL, and closes
the distributions. If the General Ledger Posting Þnds any currency error payroll
distributions, you must correct the errors on Payroll GL Dist-Currency Err.
The General Ledger Posting also posts AC and AP transactions. AP
transactions cannot be processed through accounts payable until the General
Ledger Posting is performed.

What Function Does General Ledger Posting Perform?

General Ledger posting:
• Posts General Ledger transactions
• Posts AC transactions
• Posts AP transactions
• Changes PRDISTRB record status from “open” to “Closed” (0 to 9)
Posting forces you to correct currency error records in Payroll GI Dist-Currency
Err before you can run General Ledger Posting.
If Company and Process Level created distribution records are set to N (No),
the General Ledger Posting deletes closed PRDISTRB records. Run General
Ledger Posting in report mode to verify transactions, or Update mode to
complete the posting.

444 Chapter 29 Payroll Cycle: Close Payroll User Guide

Procedures in this Chapter
The following procedures explain how to close the payroll cycle.
• "Verifying the Payroll Cycle Status" on page 445
• "Closing the Payroll Cycle" on page 446
• "Closing Time Accrual" on page 448
• "Posting to the General Ledger" on page 449
Figure 37. Procedure Relationship: Payroll Close

Verifying the Payroll Cycle Status

Verify the payroll cycle status through Payroll Cycle Status (PR00.1).

Need More Details? Check out the following concepts:

• "How Do I Prepare for Payroll Cycle Processing?" on page 362

STEPS To verify the payroll cycle status

1. Access Payroll Cycle Status (PR00.1).
2. Verify the status. For more information, see "Verifying the Payroll Cycle
Status" on page 445.

Payroll User Guide Chapter 29 Payroll Cycle: Close 445

Closing the Payroll Cycle
Closing payroll completes a payroll cycle, allows the start of a new cycle,
creates payroll accruals, updates payroll history with information from the
completed payroll cycle, deletes processed time records from the application,
and clears the cycle indicators in Payroll Cycle Status (PR00.1).
Before you can start another payroll cycle, you must close the current payroll
cycle and update the history Þles for the processed employee records.
WARNING Lawson
recommends backing
up the database before
running the payroll close.
After you close the payroll
cycle, the cycle programs
cannot be re-run for that
cycle, and GL changes
must occur through GL
programs.

STOP Before updating the close, run the Payroll Close (PR197) in report
mode to verify GL transactions. The payroll cycle is closed after PR197 is run
in update mode. For more information, see "Calculating Tip Credit Records
(U.S. and CA)" on page 393.

Need More Details? Check out the following concepts:

• "What is Payroll Cycle Balancing?" on page 598
• "Procedures in this Chapter" on page 432
• "How is the General Ledger Updated With Payroll Transactions?"
on page 444

STEPS To close the payroll cycle

1. Access Payroll Close (PR197).
2. With the Add form action type the name of the job in the Job Name Þeld.
– or –
With the Inquire form action, select a previously deÞned job. The jobs
displayed are for the active user.
3. Choose the Selection tab. Consider the following Þelds.

Processing Group Select a processing group to close a payroll cycle

for a speciÞc processing group.
Process Level Select a process level to close a payroll cycle for
a speciÞc process level.

446 Chapter 29 Payroll Cycle: Close Payroll User Guide

 General Ledger Type a general ledger date to use for general
Date ledger entries of wage and company-paid
expenses.
Report Sequence Select the option indicating how you want to sort
the report.
Update Option Select whether you want to update the application
with GL transactions and create a report of the
transactions.
– or –
Create a report of GL transactions without
updating the application.

IMPORTANT Lawson recommends running

Payroll Close (PR197) in report mode before
completing the cycle by choosing the update
mode.

Percent Select the value determining if the report uses

Distribution employee percent distribution records without a
pay summary group or deduction for expensing
pay only, company-paid deductions only, or both.
The selection overrides the normal expense
defaulting path.
Employee Detail Select whether or not you want to create an
Report employee detail report.
NOTE The Payroll 4. Choose the Submit form action to submit the job.
Close (PR197) not only
updates payroll history 5. Access Payroll Cycle Status (PR00.1) .
created through the
payroll cycle, but also
updates voids, manuals,
and adjustments.
NOTE You will see 6. Verify the completion of the payroll close.
a blank screen when
Payroll Close (PR197)
is successfully run in Options for Closing the Payroll Cycle
Update mode.
You can run Payroll Close (PR197) in report mode to see what GL transactions
will be posted to the GL before you run PR197 in update mode. Once you run
PR197 in update mode, the payroll cycle is closed.
If the Create Distributions Þelds on Company (HR00.1) and Process Level
(HR01.1) are set to N (No), you cannot use payroll inquiry forms and reports
that access distribution history if you do not create distribution history.
Regardless of the selection you make in the Create Distributions ßag
on Company (HR00.1) or Process Level (HR01.1), PR197 creates open
distributions, which General Ledger Posting (PR198) uses to post to the
General Ledger.

Payroll User Guide Chapter 29 Payroll Cycle: Close 447

 General Ledger Posting (PR198) deletes the records if the Create
Distributions Þeld is set to N (No). Records are not deleted if the Create
Distributions Þelds is set to (Y) Yes.

Closing Time Accrual

Time Accrual Close (TA199) closes the time accrual cycle, updates the actual
balance Þelds in Employee Plan Inquiry (TA60.1), and generates a report
showing the updated balances. The application closes the transactions of
the current time accrual cycle and updates employee balances and history
records.

STOP Before you run Time Accrual Close (TA199), you must run Time
Accrual Update (TA170), and close the payroll cycle with Payroll Close
(PR197) in Update mode. For more information, see "Updating Time Accrual
Transactions" on page 423.

Need More Details? Check out the following concepts:

• "How Do I Process the Time Accrual Cycle Within the Payroll
Cycle?" on page 413

STEPS To close Time Accrual

1. Access and run Time Accrual Close (TA199).
2. Choose the Add or Inquire form action to add or display information on
the form.
3. Consider the following Þelds.

Processing Group Select a processing group to close time accrual

for a speciÞc processing group.
If you select a processing group, leave the
Process Level Þeld blank.
Process Level To close the time accrual cycle for a speciÞc
process level, select a process level. If you do
not select a process level, the application closes
all process levels in the selected company.
If you select a process level, leave the Processing
Group Þeld blank.
Report Sequence Select the value that indicating how you want the
report to sort.

448 Chapter 29 Payroll Cycle: Close Payroll User Guide

 Employee Select the employee sequence for the report.
Sequence
If you do not select a value in this Þeld, employees
list in the order deÞned for the selected company
in the Print Order Þeld in Company (HR00.1).

4. Choose the Submit form action to submit the close.

5. Access Payroll Cycle Status (PR00.1).
6. Verify the completion of Time Accrual Close (TA199).

IMPORTANT When time balances are manually adjusted, you must

always update balances to employee records by running Time Accrual
Update (TA170), and Time Accrual Close (TA199).

Follow Up
Use General Ledger Liability Update (TA195) to produce a listing of
transactions and create auto reversing General Ledger entries for time
accrual liabilities based on the employee’s current hourly rate multiplied by
the liability hours as determined by the plan.

IMPORTANT General Ledger Liability Update (TA195) must be run only once
per general ledger period to prevent over-booking the liability.

Posting to the General Ledger

Payroll liabilities ßagged for payment in Accounts Payable cannot be paid
until General Ledger Posting (PR198) updates Accounts Payable. General
Ledger Posting (PR198) creates postings for AP, GL, and AC. Non-Lawson
General Ledger users do not have to run PR198, the PRDISTRIB records can
be captured from Payroll Close (PR197).

STOP Before running General Ledger Posting (PR198), run Payroll Close
(PR197) Þrst in Report mode to check GL entries, and then complete the
close by running PR197 in Update mode.

Payroll User Guide Chapter 29 Payroll Cycle: Close 449

 Need More Details? Check out the following concepts:
• "What is Payroll Cycle Balancing?" on page 598
• "What is the Payroll Close General Ledger Date Used For?" on
page 443
• "How is the General Ledger Updated With Payroll Transactions?"
on page 444

STEPS To post to the General Ledger

NOTE If PR198 is not 1. Access General Ledger Posting (PR198).
run timed to the payroll
cycle, the report will 2. Select a Processing Group or Process Level in the appropriate Þelds.
not balance to PR197 3. Consider the following Þelds.
totals. If multiple payroll
cycles are closed with
one PR198, the result is AP Default If you are creating accounts payable invoices and
a lack of a one to one Process Level do not want to use the Accounts Payable default
relationship between process level, type the default process level that
PR197 totals and PR198 you want to use.
totals for balancing
purposes. If you leave this Þeld blank, the Accounts Payable
process level defaults. If a default process level
was not entered, you will not be able to run
General Ledger Posting (PR198).
Update Option Select whether or not you want to update the
application with general ledger postings.
If you select Report Only, Payroll creates a report
of general ledger postings, but does not create
the actual postings to general ledger.
If you select Update, Payroll creates a report and
creates the actual postings to general ledger.
NOTE If the General 4. Choose the Submit form action to submit the report.
Ledger Posting Þnds
any currency error 5. Access Payroll Cycle Status (PR00.1).
payroll distributions, you 6. Verify the completion of the posting.
must correct the errors
on Payroll GL Dist -
Currency Err (PR70.1). IMPORTANT For General Ledger Posting to create GL Interface File
records, you must select Yes in the Create GL Transactions Þeld when
you set up the company in Company (HR00.1). The report creates
expense entries and company accrual entries with a posting date that
matches the general ledger date on Payroll Close (PR197) and creates
cash and employee accrual entries with a posting date that matches the
payment date in Earnings and Deductions Calculation (PR140).

Follow Up
If you want to create details of the GL transactions for each payment and
employee, set the Create Distributions Þelds on Company (HR00.1) and
Process Level (HR01.1) to Y (Yes). If these Þelds are not set to Y, General
Ledger Posting (PR198) deletes the detailed PRDISTRB records.

450 Chapter 29 Payroll Cycle: Close Payroll User Guide

Chapter 30

Payroll Cycle: Troubleshooting

This chapter covers how to troubleshoot payroll cycle problems within the
Lawson Payroll application.

STOP Before you continue with troubleshooting, you must be familiar

with time record processing, Direct Deposit, Bank code, General Ledger
transactions, and Payroll Distributions. For more information, see the General
Ledger User Guide. For more information, see "Time Records: Entering" on
page 295. For more information, see "Employee: Direct Deposit Distributions"
on page 267. For more information, see "Setting Up Bank Codes" on page
185. For more information, see "Employee: Payroll Distributions" on page
261.

Payroll User Guide Chapter 30 Payroll Cycle: 451

Troubleshooting
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 457 • "What Causes Errors in the Payroll Cycle?" on page 452
• "How Do I Correct Errors in the Payroll Cycle?" on page 452
• "What Do I Do When a Time Record is in Error Status?" on page 453
• "How Do I Delete Processed Time Records?" on page 454
• "How Do I Recalculate Payments?" on page 455
• "How Do I Reprint Payments?" on page 456

What Causes Errors in the Payroll Cycle?

Errors in the payroll cycle can be a result of:
• Entering time records incorrectly
• Missing or late changes
• Missing time records
• Entering incorrect time record dates
• Utilizing the wrong deduction cycles
• Starting payments with the wrong payment number
• Deleting print or tape Þles accidentally
Depending on the error encountered, you have a number of options available
to correct the error most efÞciently.

How Do I Correct Errors in the Payroll Cycle?

Before correcting an error in the payroll cycle, you must determine whether
the error is related to recalculating or reprinting payments. The best method
for correcting an error within the payroll cycle depends on what the error is,
but the basic procedure for correcting any error consists of the following steps:
• Determine the best method to correct the error
• Reprocess the appropriate payroll cycle report
• Continue with the payroll cycle

452 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

What Do I Do When a Time Record is in Error Status?
TIP To save application When you change a processed time record, the application changes the status
processing time when of the time record and any other time record associated with the employee
rerunning the Earnings to Error. You must then re-run the Earnings and Deductions Calculation to
and Deductions
Calculation, set the recalculate deductions and net pay before the payment can be printed.
Error Time Records ßag If there are current status time records which the application cannot process,
and Print Records ßag
to Y (Yes) to view and the time records are automatically placed in error status, requiring manual
process only the error intervention before the payroll process can be completed. You can ßag
time records in the print the application to bypass and delete error status time records, permitting
manager. processing to continue on the remainder of the time records. A report of time
deleted time records is produced so the user can make necessary corrections
and process the payments in a separate payroll run, or as manual payments.

Example
Dawn just completed processing of the Earnings and Deductions Calculation
for the River Bend Restaurant and Grove Cafe processing group. She
realizes that Julie Anderson’s hours were keyed incorrectly as 40 regular
hours instead of 32 regular and 8 vacation hours. Therefore, Dawn goes back
to Julie’s time record and makes the necessary changes. The time record for
the regular hours, updated to Processed by the Earnings and Deductions
Calculation, is automatically changed to Error status. Therefore, the Earnings
and Deductions Calculation must be re-run to pick up the changes before the
payments are printed.

Payroll User Guide Chapter 30 Payroll Cycle: 453

Troubleshooting
How Do I Delete Processed Time Records?
If you delete a processed time record, the application resets the status ßag
on the Payroll Cycle Status for Earnings and Deductions Calculation to Error
status for the appropriate process level. You can delete processed time
records for the following:
• An entire process level or department
• For a group of up to 13 individual employees
• For one individual employee at a time
If you delete a processed time record, the Earnings and Deductions
Calculation must be re-run in order to reset the Payroll Cycle Status ßag for
the appropriate process level(s) before printing the payments.

Example
Dawn just completed processing of the Earnings and Deductions Calculation
for the River Bend Restaurant and Grove Cafe and realizes that a payment
was created for Rob Linel, who left Grove Cafe two weeks earlier.
Dawn deletes Rob’s time records and changes his employee status to
Terminated so he will not receive a time record in the future. When Dawn
deletes Rob’s processed time records, Payroll changes the ßag of the
Earnings and Deductions Calculation for the Grove Cafe process level to Error
status. Dawn then changes the time record of another employee within the
Grove Cafe process level to Error and reruns the Earnings and Deductions
Calculation for Errors Only before continuing with the Payment Print.

454 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

How Do I Recalculate Payments?
If you Þnd an error in the calculation of an employee’s pay, you can correct
the employee’s data and re-run the Earnings and Deductions Calculations
as often as necessary.
When you reprocess the Earnings and Deductions Calculation, you can re-run
the calculation for all time records meeting the population criteria speciÞed or
re-run for Error status time records only.
If you change a processed time record, the application changes the time
record to Error status, and you must recalculate deductions and net pay. If
you delete a time record, the application resets the ßag on Earnings and
Deductions Calculation to Error status. You must recalculate earnings and
deductions.
If changes made to the employee data affect the Tip Credit or Overtime
Calculation, reprocess Tip Credit and Overtime Calculation reports before
reprocessing the Earnings and Deductions Calculations.

Example
While reviewing the results of the Earnings and Deductions Calculation for
Two Rivers Headquarters, Jane notices the total number of hours entered for
Patricia Wells (a non-exempt employee) is incorrect. Rather than 40 hours,
Patricia actually worked 48 hours in this work period.
Jane changes the time record from 40 regular hours to 48 regular hours.
Because overtime must be recalculated on the additional hours, Jane reruns
the Overtime Calculation and then reruns the Earnings and Deductions
Calculation. Both programs are re-run for error time records only, so only
Patricia’s time records are reprocessed.
For more information, see "Calculating Tip Credit Records (U.S. and CA)"
on page 393.

Payroll User Guide Chapter 30 Payroll Cycle: 455

Troubleshooting
How Do I Reprint Payments?
When printing payments, if payment forms get jammed in the printer or print
Þles or tape Þles are mistakenly deleted, you can use the re-run options
associated with the Payment Print to easily correct these problems.
If the printer jams, you can reprocess the Payment Print using report option 3,
which voids the original payment numbers and re-creates the voided payment
information on new payment forms.
If print Þles or the tape Þle is deleted, you can reprocess the Payment Print
using report option 4, which re-creates the necessary payment Þle, receipt
Þle, and tape Þle, or all of these options.
Each time you run the Payment Print, the application assigns a run serial
number to the run. When rerunning the Payment print, you must enter the
appropriate serial number so the application knows which batch of payments
to reprocess.

Example
After verifying the results of the Earnings and Deductions Calculation, Tom
processed the Payment Print to create the payment print Þle, the receipt print
Þle, and the direct deposit tape Þle. Before he sent the payment print Þle to
the appropriate printer to print the payments, he accidentally deleted the print
Þle. To print the payments, Tom reprocessed the Payment Print using report
option 4 to re-create the appropriate print Þle.

456 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

Procedures in this Chapter
The following procedures explain how to troubleshoot errors during payroll
processing.
• "Choosing a Procedure When Re-running Payroll" on page 457
• "Deleting Processed Time Records" on page 459
• "Recalculating Deductions and Net Pay Before Running Payment
Print (PR160)" on page 460
• "Recalculating Deductions and Net Pay After Running Payment Print
(PR160)" on page 463
• "Recalculating Deductions and Net Pay After Printing Actual
Payments" on page 464
• "Re-running Payments With Voids and Recreating the Direct Deposit
Tape File" on page 465
• "Reprinting Payments and Recreating the Direct Deposit Tape File"
on page 466

Choosing a Procedure When Re-running Payroll

You can re-run all or only error status time records when rerunning payroll.
Before rerunning payroll, you must determine whether the error is related to
recalculating or printing payments. Use the table below to determine the
most efÞcient way to correct the error.

STOP Before you continue processing the payroll cycle, all required
programs up to and including Payment Print (PR160) must be completed
successfully. For more information, see "Payroll Cycle: Editing Time
Records" on page 371. For more information, see "Payroll Cycle: Pre-cycle
Maintenance" on page 383. For more information, see "Payroll Cycle:
Calculate Earnings" on page 407. For more information, see "Payroll Cycle:
Create Payments" on page 427.

Payroll User Guide Chapter 30 Payroll Cycle: 457

Troubleshooting
 Need More Details? Check out the following concepts:
• "What Causes Errors in the Payroll Cycle?" on page 452
• "How Do I Correct Errors in the Payroll Cycle?" on page 452
• "What Do I Do When a Time Record is in Error Status?" on page
453
• "How Do I Delete Processed Time Records?" on page 454
• "How Do I Recalculate Payments?" on page 455
• "How Do I Reprint Payments?" on page 456
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301
• Use the following table to determine the procedure to follow when
you must re-run payroll cycle programs:

458 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

 The error exists because For the re-run procedure, see
you made changes to time records "Recalculating Deductions and Net
after you ran Earnings and Pay Before Running Payment Print
Deductions Calculation (PR140) (PR160)" on page 460.
but before you ran Payment Print
(PR160).
you deleted time records after "Recalculating Deductions and Net
you ran Earnings and Deductions Pay Before Running Payment Print
Calculation (PR140) but before you (PR160)" on page 460.
ran Payment Print (PR160).
you made changes to time records "Recalculating Deductions and Net
after you ran both Earnings and Pay Before Running Payment Print
Deductions Calculation (PR140) and (PR160)" on page 460.
Payment Print (PR160), but before
you printed payment forms.
you discovered that an incorrect "Recalculating Deductions and Net
starting payment number was used Pay Before Running Payment Print
after you ran both Deductions (PR160)" on page 460.
Calculation (PR140) and Payment
Print (PR160), but before you printed
payment forms.
you ran Earnings and Deductions "Recalculating Deductions and Net
Calculation (PR140) and Payment Pay After Printing Actual Payments"
Print (PR160), printed payments, on page 464.
and found errors on six employee
records. You Þxed the errors, which
changed the time records to Error
status.
you printed payments and the printer "Re-running Payments With Voids
jammed and ruined forms at the end and Recreating the Direct Deposit
of the range. Tape File" on page 465.
you accidentally deleted a print Þle. "Re-running Payments With Voids
and Recreating the Direct Deposit
Tape File" on page 465.

Deleting Processed Time Records

Use Error Processing (PR45.1) to change the status of time records from
Current or Processed to Error status. You can change time records to Error
status for a speciÞc process level or department, or for individual employees.
– or –
Use form action Delete to delete Error status time records as well as payments
processed by Payment Print (PR160) that have not been closed by Payroll
Close (PR197).

Payroll User Guide Chapter 30 Payroll Cycle: 459

Troubleshooting
 STOP Before you can delete time records, the time records must Þrst be
added to Error Status. For more information, see "Deleting Processed Time
Records" on page 459.

Need More Details? Check out the following concepts:

• "What Do I Do When a Time Record is in Error Status?" on page
453
• "How Do I Delete Processed Time Records?" on page 454
• "What is a Time Record?" on page 298
• "What are Time Record Statuses?" on page 299
• "What is the Time Record Date?" on page 301

STEPS To delete processed time records

1. Access Error Processing (PR45.1).
2. Choose the Add form action to change the time records to Error status.
NOTE You can delete 3. Choose the Delete form action to delete the Error-status time records.
only Error-status time
records using Error – or –
Processing (PR45.1).
Use Time Record Entry (PR36.1) to delete individual time records of
any status.
TIP Rerunning 4. Recalculate deductions and net pay. For more information, see
the Earnings and "Recalculating Deductions and Net Pay Before Running Payment Print
Deductions Calculation
might take longer than (PR160)" on page 460.
the initial run because
time record history
created by the initial run Related Reports and Inquiries
must be reversed before
recalculating. When To Use
possible, use the option delete entire batches of time records Batch Time Control (PR37.1)
to run for error time
records only. – or –
Batch Time Record Update (PR137)
delete individual time records in any time record entry screen except
batch status Time Record Entry (PR36.1)

Recalculating Deductions and Net Pay Before Running

Payment Print (PR160)
Use the following procedure if you make changes to time records after
you run Earnings and Deductions Calculation (PR140), but before you run
Payment Print (PR160).

460 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

 STOP Before recalculating Earnings and Deductions Calculation (PR140),
programs ßagged as required on Company (HR00.1), and Process Level
(HR01.1) must have completed successfully.

Need More Details? Check out the following concepts:

• "How Do I Recalculate Payments?" on page 455
• "What Causes Errors in the Payroll Cycle?" on page 452
• "How Do I Correct Errors in the Payroll Cycle?" on page 452
• "What Do I Do When a Time Record is in Error Status?" on page
453

STEPS To recalculate deductions and net pay before running

Payment Print (PR160)
1. Access Earnings and Deductions Calculation (PR140). For more
information, see "Calculating Tip Credit Records (U.S. and CA)" on page
393.
2. Consider the following Þelds.

Error Time When selecting Yes, Payroll produces a report

Records that lists only time records in Error Status when
the Earnings and Deductions Calculation was
re-run.
Print Error When selecting Yes, Payroll produces a report
Records listing only time records which were in Error
Status when the Earnings and Deductions
Calculation was re-run.
Rerun Select Yes in the Rerun Þeld to recalculate
deductions and net pay after you make changes
to Processed-status time records.
Bypass Employee Select Yes when you want Payroll to complete
Errors processing without manual intervention when
error time records are present.
A report prints which can be used to identify the
deleted time records.

Payroll User Guide Chapter 30 Payroll Cycle: 461

Troubleshooting
 Delete Error Time Select Yes when you want Payroll to complete
Records processing without manual intervention when
error time records are present.
A report will print which can be used to identify
the deleted time records.

3. Re-run the report.

4. Verify errors were corrected.
5. Check the Payroll Cycle status through the Drill Around Feature in the
Company Field, or access Payroll Cycle Status (PR00.1).
6. Continue the payroll cycle processing.

Related Reports and Inquiries

To Use
View the status of the major payroll Payroll Cycle Status (PR00.1)
cycle programs
Change or delete individual time Time Entry Maintenance (PR36.1)
records
Create a list of all time records in Time Record Edit (PR135)
Error status.

462 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

Recalculating Deductions and Net Pay After Running Payment
Print (PR160)
You can use the following procedure if you make changes to time records after
you run both Earnings and Deductions Calculation (PR140) and Payment
Print (PR160), but before you print the actual payment forms.

STOP Before recalculating Earnings and Deductions Calculation (PR140),

programs ßagged as required on Company (HR00.1), and Process Level
(HR01.1) must have completed successfully.

Need More Details? Check out the following concepts:

• "What Do I Do When a Time Record is in Error Status?" on page
453
• "How Do I Recalculate Payments?" on page 455
• "What Causes Errors in the Payroll Cycle?" on page 452
• "How Do I Correct Errors in the Payroll Cycle?" on page 452

STEPS To recalculate deductions and net pay after running

Payment Print (PR160)
1. Access Earnings and Deductions Calculation (PR140).
2. Select No in the Error Time Records Þeld.
By selecting No, Payroll recalculates earnings and deductions for all time
records and deletes current payment records. For more information, see
"Calculating Tip Credit Records (U.S. and CA)" on page 393. For more
information, see "Recalculating Deductions and Net Pay Before Running
Payment Print (PR160)" on page 460.
NOTE By rerunning 3. In the Rerun Þeld, select Yes. Selecting yes reruns the report to create
Earnings and new payment records.
Deductions Calculation
(PR140), the previous 4. Verify errors were corrected.
Payment Print (PR160) 5. Check the Payroll Cycle status through the Drill Around Feature in the
job updates are deleted.
However, the previous Company Field,or access Payroll Cycle Status (PR00.1).
payment numbers are 6. Select Payment Print (PR160).
still available.
7. In the Report Option Þeld, select 1 (Normal Run) to re-run the previous job.
8. Continue the payroll cycle processing.

Payroll User Guide Chapter 30 Payroll Cycle: 463

Troubleshooting
Recalculating Deductions and Net Pay After Printing Actual
Payments
You must use the following procedure if you need to make changes to time
records after you run both Earnings and Deductions Calculation (PR140) and
Payment Print (PR160), and print the actual payment forms.

STOP Before recalculating Earnings and Deductions Calculation (PR140),

programs ßagged as required on Company (HR00.1), and Process Level
(HR01.1) must have completed successfully.

Need More Details? Check out the following concepts:

• "What Do I Do When a Time Record is in Error Status?" on page
453
• "How Do I Recalculate Payments?" on page 455
• "What Causes Errors in the Payroll Cycle?" on page 452
• "How Do I Correct Errors in the Payroll Cycle?" on page 452

STEPS To recalculate deductions and net pay after printing

actual payments
1. Access Earnings and Deductions Calculation (PR140).
2. Select Yes in the Error Time Records Þeld.
By selecting Yes, Payroll recalculates earnings and deductions for only the
time records in Error status. Original payments become temporary voids.
For more information, see "Calculating Tip Credit Records (U.S. and CA)"
on page 393. For more information, see "Recalculating Deductions and
Net Pay Before Running Payment Print (PR160)" on page 460.
NOTE If you use pre- 3. Re-run the report with new payment numbers. Payroll voids the original
numbered check stock, payments.
you must manually void
all previous checks 4. Verify errors were corrected.
using Bank Account 5. Check the Payroll Cycle status through the Drill Around Feature in the
Reconciliation (PR85.1).
Void the checks after Company Field, or access Payroll Cycle Status (PR00.1).
the payroll cycle is 6. Continue the payroll cycle processing.
closed and payments
are posted.

464 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

Re-running Payments With Voids and Recreating the Direct
Deposit Tape File
You can use the following procedure if your printer jammed and ruined
payment forms.

STOP Before recalculating Earnings and Deductions Calculation (PR140),

programs ßagged as required on Company (HR00.1), and Process Level
(HR01.1) must have completed successfully.

Need More Details? Check out the following concepts:

• "How Do I Reprint Payments?" on page 456

STEPS To re-run payments with voids and recreate the direct

deposit tape Þle
1. Access Payment Print (PR160).
2. Select report option 3 (Rerun With Voids/Recreate Tape). For more
information, see "Calculating Tip Credit Records (U.S. and CA)" on page
393.
3. Type the run serial number from Payment Register (PR162) in the Þelds
associated with report option 3.
– or –
Type the run serial number from the previous payment print output from
Payment Print (PR160).
4. Type a void payment range or void receipt range and indicate if you want
to recreate the direct deposit tape.
5. Type a new starting payment number for replacement payments or for
replacement receipts.
6. Check the Payroll Cycle status through the Drill Around Feature in the
Company Field, or access Payroll Cycle Status (PR00.1).
7. Continue the payroll cycle processing.

Payroll User Guide Chapter 30 Payroll Cycle: 465

Troubleshooting
Reprinting Payments and Recreating the Direct Deposit Tape
File
You can use the following procedure if you mistakenly delete the original print
Þle created by Payment Print (PR160) or if you mistakenly delete the direct
deposit tape.

STOP Before recalculating Earnings and Deductions Calculation (PR140),

programs ßagged as required on Company (HR00.1), and Process Level
(HR01.1) must have completed successfully.

Need More Details? Check out the following concepts:

• "How Do I Reprint Payments?" on page 456

STEPS To reprint payments and recreate the direct deposit tape

Þle
1. Access Payment Print (PR160).
2. Re-run the report using option 4 (Reprint Payments/Recreate Tape) to
create a print Þle identical to the original print Þle created by Payment
Print (PR160). For more information, see "Calculating Tip Credit Records
(U.S. and CA)" on page 393.
3. Type the run serial number from Payment Register (PR162) in the Þelds
associated with report option 4.
– or –
Type the run serial number from the previous payment print output from
Payment Print (PR160).
4. Choose if you want to recreate the direct deposit tape.
5. Choose if you want to reprint the entire payment range using the original
payment numbers.
6. Check the Payroll Cycle status through the Drill Around Feature in the
Company Field, or access Payroll Cycle Status (PR00.1).
7. Continue the payroll cycle processing.

466 Chapter 30 Payroll Cycle: Troubleshooting Payroll User Guide

Chapter 31

Manual Processes: Payments

This chapter describes how to process manual payments within the Lawson
Payroll application.

STOP Before continuing with the processes in this chapter, you must set
up bank account information. For more information, see "Setting Up Bank
Codes" on page 185.

Payroll User Guide Chapter 31 Manual Processes: 467

Payments
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 470 • "What are Manual Payments?" on page 468
• "Why Reserve Checks for Manual Payments?" on page 468
• "Why Verify Time Accrual Balances and Dates for Manual Payments?"
on page 469
• "When Should the Manual Payment Payroll Cycle be Closed?" on
page 469

What are Manual Payments?

NOTE You cannot Manual payments are employee payments made outside the normal payroll
produce Direct Deposit processing routine. Before choosing to complete the manual payment entry,
transactions from a you can calculate and review changes to the manual payment. You can also
manual payment.
Manual payments result change or delete a previously entered manual payment that is not yet closed.
only in physical checks. You do not have to close the previous payroll cycle to complete the manual
payment process.
Payroll calculates earnings and deductions for manual payments when a
manual payment is calculated or added. Deductions are taken for the selected
deduction cycle based on the effective and ending dates of the deductions
in relation to the payment date. Also, you can enter deductions manually, or
override existing deductions.

Why Reserve Checks for Manual Payments?

Prior to creating a manual payment, you must reserve payment numbers for
each bank account you plan to use with manual payments. You will also
reserve payment numbers for payment replacement. For more information,
see "Creating a Replacement Payment" on page 489.
The process of reserving checks has three functions:
Reserved - Once reserved, payment numbers are not available for normal
system payment use. Reserved payments are used for manual payments or
payment replacements.
Unreserve - The unreserve function makes previously reserved payment
numbers available again for system use.
Void - The void function is used to void payment numbers that were
accidentally destroyed but not used. After you void a payment number, the
payment number is taken out of circulation and is not available for use with
manual or system payments.

468 Chapter 31 Manual Processes: Payments Payroll User Guide

Why Verify Time Accrual Balances and Dates for Manual
Payments?
Manual payments containing pay codes linked to a plan in the Time Accrual
are processed through Time Accrual in the same manner as system payments.
Certain conditions must be met for Time Accrual changes to occur
automatically. If the date on the manual payment is prior to the last period
end date in time accrual, you must adjust the time accrual usage manually
in the Time Accrual application. If the manual payment date is greater than
or equal to the last period end date in time accrual, the time accrual usage
automatically updates the employee’s eligible balance the next time you close
the time accrual cycle.
When you process a manual Þnal payment that will affect time accrual
balances for an employee, the manual payment Time Accrual ßag must be
set to L (Last) to ensure that run dates and balances are updated when you
update time accrual.
To process manual payments for an employee in a time accrual cycle, a
system payment must exist for the employee.
– or –
The last payment ßag on the manual payment must be set to L (Last).

When Should the Manual Payment Payroll Cycle be Closed?

You do not have to close the payroll cycle immediately after you add a
manual payment. However, Lawson recommends closing the payroll cycle
immediately after adding a manual payment, or accumulating manual
payments to close at a date prior to normal close. Closing manual payments
outside of the normal close has several advantages, including:
• Balancing Payroll with greater ease
• Timing tax liabilities related to the manual payments with greater accuracy
• Allowing you to change employee status codes prior to the next normal
pay cycle to prevent payment to terminated employees
Although not recommended by Lawson, you can choose to “hold” payments
to close with the next payroll cycle. For more information, see "How Do I
Prepare for Payroll Cycle Processing?" on page 362.

Payroll User Guide Chapter 31 Manual Processes: 469

Payments
Procedures in this Chapter
The following procedures explain how to process manual payments.
• "Reserving Manual Payment Numbers" on page 472
• "Verifying Eligible Time Accrual Balances" on page 473
• "Creating Manual Payments" on page 473
• "Creating a Zero Gross Manual Payment" on page 480
• "Adjusting Time and Attendance" on page 480
• "Creating the Payroll Register" on page 483
• "Adjusting Time Accrual" on page 483
• "Closing the Payroll Cycle" on page 485

470 Chapter 31 Manual Processes: Payments Payroll User Guide

 • "Updating Time Accrual" on page 485
Figure 38. Procedure Flow: Manual Payments

Payroll User Guide Chapter 31 Manual Processes: 471

Payments
Reserving Manual Payment Numbers
Before you add a manual payment, you must Þrst reserve payment numbers
for use when processing manual payments. When reserving manual payment
numbers on Manual Payment Reservation (PR81.1), include the number
of alignment forms deÞned. Payroll voids payment numbers reserved for
alignment when you run Manual Payment Print (PR180).

STOP Before you reserve manual payment numbers, you must Þrst set
up bank account information. For more information, see "Setting Up Bank
Codes" on page 185.

Need More Details? Check out the following concepts:

• "Why Reserve Checks for Manual Payments?" on page 468

STEPS To reserve manual payment numbers

1. Access Manual Payment Reservation (PR81.1).
2. Choose the Company and Bank Code in the appropriate Þelds.
3. Type the payment number.
– or –
Type the range of payment numbers to reserve, void, or unreserve in
the payment Þelds.
NOTE When you 4. Choose the Reserve, Void, or Unreserve form action to affect the payment
reserve payments, numbers.
choose “reserve”
twice to complete the
reservation process. IMPORTANT To void a reserved payment, you must Þrst unreserve the
payment, and then void the payment. Payment numbers voided in this
manner will not show up on Bank Account Reconciliation (PR85.1), and
are unavailable for use with a system or manual payment.

472 Chapter 31 Manual Processes: Payments Payroll User Guide

Verifying Eligible Time Accrual Balances
Use Employee Plan Inquiry (TA60.1) to verify employee time accrual dates
when you issue manual payments.
In addition to using TA60.1, you can use the Drill Around form action in
Manual Payment (PR80.1) to view accrual balances and dates. For more
information, see "Creating Manual Payments" on page 473.

Need More Details? Check out the following concepts:

• "Why Verify Time Accrual Balances and Dates for Manual
Payments?" on page 469

STEPS To verify time accrual balances

1. Access Employee Plan Inquiry (TA60.1).
2. Select the Company, Employee, and Plan in the appropriate Þelds.
3. Choose the Inquire form action.
TIP You can wait 4. Verify that the Last Period End Date on the screen is greater than or equal
to adjust the eligible to the Payment Date on Manual Payment (PR80.1). If not greater than or
balance to reßect
usage on the manual equal to, you must change the accrual on Plan Adjustments (TA70.1). For
payment until after the more information, see "Updating Time Accrual" on page 485.
manual payment is
created and the payroll
cycle is closed. For Related Reports and Inquiries
more information, see
"Updating Time Accrual" To Use
on page 485.
Display the current time accrual and Plan Balance Inquiry (TA65.1)
eligible balances for each employee
in the selected time accrual plan
Display employee totals by year for Yearly Activity Inquiry (TA65.2)
the selected employee and time
accrual plan and the accrued and
eligible hours, the hours lost and
used, and the accrual and eligible
balance for the year
Display all employee transactions Employee Transaction Inquiry
for the selected employee and time (TA65.3)
accrual plan
List the transactions created when History Usage Report (TA265)
employees use their eligible hours
List time accrual transactions Transaction History Report (TA290)

Creating Manual Payments

You can create a manual payment to pay an employee outside the normal
payroll processing routine.

Payroll User Guide Chapter 31 Manual Processes: 473

Payments
 STOP Before creating a manual payment, you must reserve manual
payment numbers. For more information, see "Reserving Manual Payment
Numbers" on page 472.

Need More Details? Check out the following concepts:

• "What are Manual Payments?" on page 468
• "Why Reserve Checks for Manual Payments?" on page 468
• "Why Verify Time Accrual Balances and Dates for Manual
Payments?" on page 469

474 Chapter 31 Manual Processes: Payments Payroll User Guide

 Figure 39. Procedure ßow: Creating manual payments

1
Access Manual
Payment (PR80.1)

2
Select an
employee
PR80.1

3
Choose Inquire
form action
PR80.1

4 4
Select existing Add a manual
-or-
current time record time record
PR80.1 PR80.1

5
Choose the
Change form
action
PR80.1

6
Select a bank
code.
PR80.1

7
Select a reserved
check number.
PR80.1

8
Define payment
information.
PR80.1

9
- Optional -
Calculate the
payment
PR80.1

10
Add the payment
PR80.1

11
Print the payment
PR80.1

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 STEPS To create manual payments
1. Access Manual Payment (PR80.1).
2. Choose the employee you want to create the payment for in the Employee
Þeld.
3. Choose the Inquire form action.
NOTE You can select 4. On the Time Records tab, select an existing current time record (Status =
a current time record or C) and change the status to manual (Status = M)
create a new time record
on the Time Records – or –
tab.
add a time record in manual (Status = M) status. Consider the following
Þelds.
Pay Code Select the pay code you want to assign to this
time record.
Hours Type the hours you want to assign to this time
record.
Rate Type the rate you want to assign to this time
record.
Date Type the date you want to assign to this time
record.
SH (Shift) Select the shift with which the pay is associated
or leave the Þeld blank and let the shift default
form the employee record.
PG (Process IdentiÞes a process group. All time records with a
Group) common value in this Þeld are grouped for taxing
purposes within a check for an employee. A
number in this Þeld indicates the deduction cycle
the system uses for calculating deductions on
the payment.
TF (Tax Select the option that indicates how you want to
Frequency) override normal taxation.

NOTE For more information, see "Time Records:

Entering" on page 295. For more information,
see "Time Records: Moving" on page 351.

5. Choose the Change form action to add the time record to the manual
payment.
6. Select the bank code in the Bank Code Þeld.
7. Select Reserved Checks in the Payment Number Þeld and then select an
available check (payment) number.
8. DeÞne payment information on the Payment tab. Consider the following
Þelds.

Payment Date Type the date for the payment.

Deduction Cycle Type a deduction cycle value of 1-9.

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 Include Flex Select the value determining whether the manual
Dollars payment is to include ßex dollars in gross wages.
Time Accrual Flag Set the ßag to L if this is the only payment to
process in the cycle for the employee.
For example, if the payment is a last and Þnal
payment for an employee, set the ßag to L. Doing
so enables processing the payment in the time
accrual cycle.
NOTE If the manual 9. Choose the One Time Deduction button to select current one time
payment pays time deductions or add manual one time deductions to be included on the
accrual time, you manual payment.
can verify dates and
balances on Access 10. If you want to calculate the payment before you add it, choose the
Employee Plan Inquiry Calculate special action. This function does not use overriding deduction
(TA60.1). For more
information, see amounts or taxable wages entered.
"Verifying Eligible Time
Accrual Balances" on
page 473.
NOTE Arrears
deductions are created IMPORTANT The Calculate special action lets you review the payment
from manual payments. before you add it. Once you add the payment, you cannot make changes.
You must delete the payment and re-add it.

11. Add the payment using one of the following options:

If want to Then
have the system calculate the Choose the Calculate/Add (A)
earnings and deductions for the special action.
payment
override any of the deductions Type the override amounts in the
amounts and/or taxable wages Þelds you want to override
that were calculated and choose the Override
Calculation/Add Payment (S)
special action.
manually enter deduction amounts Type the override amounts and
and taxables choose the No Calculate; Add (S)
special action.

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TIP To print a range of 12. Delete the payment using one of the following options:
manual payments, use
Manual Payment Print If want to Then
(PR180).
Delete the payment detail but not Select the Payment Number and
manual time records or manual Delete form action (D)
one time deductions
Delete payment detail and manual Select “Delete All & Payment
time records or manual one time Number” function (T)
deductions

13. Choose the Print button to print the payment.

WARNING Manual
payments can be printed
more than one time.
You must establish
internal controls in your
organization to avoid
printing a payment more
than once.

Options for Creating Manual Payments

If you want to Then
Inquire on a manual payment that Select Open Manual Payments in
has not been closed by Payroll the Payment Number Þeld, select
Close (PR197) an open payment, and choose the
Inquire form action.
Delete a manual payment that has Choose the Delete form action.
not been closed by Payroll Close
(PR197)
Print a range of manual payments Use Manual Payment Print (PR180).
Process manual payments for After the time record is entered, run
overtime FLSA Overtime Calculation (PR132).
PR132 creates an overtime time
record which can be selected for
manual payment.

478 Chapter 31 Manual Processes: Payments Payroll User Guide

 Related Reports and Inquiries
To Use
View the payments created Payment Inquiry (PR50.2)
List earnings and deductions and an Payroll Register (PR141))
optional garnishment audit report for
all payments that were not closed
through Payroll Close (PR197)
List payments issued and not yet Consolidated Payroll Register
closed in the current payroll cycle (PR142)
List payments on a payment register Payment Register (PR162)
View detail of manual payments Detail Payment Listing (PR260)
created for an employee
List the manual payments created, Manual Payment Audit Report
changed, printed or deleted (PR281)

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Creating a Zero Gross Manual Payment
You can create a zero gross manual payment to reimburse an employee for
an over-withheld deduction. Through a zero gross manual payment, you can
also increase or decrease taxable wages, as appropriate when reimbursing
a deduction originally affecting taxable wages. You can create zero gross
manual payment through the Deductions tab on Manual Payment (PR80.1).
Examples of zero gross manual payments include:
• Reimbursements for over-withheld pre-tax deductions
• Reimbursements for over-withheld state or local taxes

STOP Before creating a manual payment, you must reserve manual

payment numbers. For more information, see "Reserving Manual Payment
Numbers" on page 472.

Need More Details? Check out the following concepts:

• "What Kinds of Adjustments Can I Make?" on page 492

STEPS To create a zero gross manual payment

1. Access Manual Payment (PR80.1) .
NOTE The period end 2. Select the Deductions tab. Consider the following Þelds.
date is determined by
the date applied to the Deduction Select the over-withheld deduction.
adjustment along with
the pay plan deÞned for Amount Type the amount as a negative amount.
the employee. Payroll
Close (PR197), uses Taxable Type the adjustment amount to adjust taxable
this payment date as wages.
the general ledger date
for credit entries to cash Deduction Select the tax deductions to adjust if the adjusted
and employee accruals. deduction affects taxable wages.
Amount Type a deduction amount to deduct from the
manual payment for the corresponding deduction.
Taxable Type the taxable wages.

3. Choose the Print button to print the payment. For more information, see
"Creating Manual Payments" on page 473.

Adjusting Time and Attendance

If you create manual payments in Manual Payment (PR80.1) use Employee
Attendance History (TM70.1) to adjust attendance history.

480 Chapter 31 Manual Processes: Payments Payroll User Guide

 Need More Details? Check out the following concepts:
• "What Kinds of Adjustments Can I Make?" on page 492

STEPS To adjust time and attendance

1. Access Attendance History (TM70.1).
2. Choose a Company and Employee in the appropriate Þelds.
3. Choose the Inquire form action to inquire on the employee’s attendance
history.
4. Consider the following Þelds.

Position To Type the date at which point you want to begin

your inquiry.
FC Select the action you want to perform on this line.
– or –
Select Copy to copy this record.
Copy Nbr Type the number of subsequent days into which
this record should be copied.
This is the additional number of days, not the
total days.
Date Type a date when entering attendance history.
If you leave this Þeld blank, the system date
defaults.
Attend Select an attendance code.
If you leave this Þeld blank, the attendance code
from the previous line defaults when you choose
the Add form action. If you are inquiring on
existing attendance history, the attendance code
displays.
Hours Type the number of hours.
Points Type the number of points.
If you leave this Þeld blank, the points associated
with the attendance code default.
Occ Select Yes or No to indicate whether this
attendance history record is considered an
occurrence.
Proc Lev Select the process level associated with this
attendance history record.
If you leave this Þeld blank, the home process
level for the employee defaults.

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 Dept Select the department associated with this
attendance history record.
If you leave this Þeld blank, the employee’s home
department defaults.

5. Choose the Change form action to add the changes.

Related Reports and Inquiries

To Use
Inquire on attendance history of Employee Attendance Date Inquiry
a speciÞc employee displayed in (TM50.1)
ascending date order by attendance
codes
Inquire on the attendance history Employee Attendance Code Inquiry
of a speciÞc employee displayed in (TM51.1)
attendance code order by ascending
date
Inquire on employee attendance Attendance Date Inquiry (TM52.1)
history for all employees in
a company, process level, or
department displayed in ascending
date order by attendance code, and
employee number
Inquire on employee attendance Attendance Code Inquiry (TM53.1)
history for all employees in
a company, process level, or
department displayed in attendance
code order by ascending date and
employee number
Inquire on employee attendance Attendance Class Inquiry (TM54.1)
history for attendance codes in
an attendance class displayed in
ascending date order by employee
number
Inquire on attendance history for Employee Date Calendar (TM60.1)
a speciÞc employee by year and
attendance code or attendance class
Inquire on attendance history for Employee Days Calendar (TM61.1)
a speciÞc employee by year and
attendance code or attendance class
Inquire on all attendance history Attendance History (TM70.1)

482 Chapter 31 Manual Processes: Payments Payroll User Guide

Creating the Payroll Register
The Payroll Register (PR141) provides a hard copy of the payroll. Use this
information for balancing and auditing payroll records.

Need More Details? Check out the following concepts:

• "When Should the Manual Payment Payroll Cycle be Closed?" on
page 469

STEPS To create the payroll register

1. Access Payroll Register (PR141).
TIP To maintain an 2. Create the register. For more information, see "Creating the Payroll
electronic copy of Payroll Register (U.S. and CA)" on page 439.
Register (PR141),
change the job to a 3. Choose the Submit form action to submit the job.
unique name each time
you submit the job.
IMPORTANT Print Payroll Register (PR141) before completing Payroll
Close (PR197) to obtain a permanent record. The Payroll Register
(PR141) cannot be recreated after Payroll Close (PR197) is complete.

Adjusting Time Accrual

Use Plan Adjustments (TA70).1 to adjust either accrual or eligible balances for
employees in the selected plan. Payroll can display and edit adjustments until
Time Accrual Close (TA199) is run. If the Period End Date is prior to the Last
Period End Date on Employee Plan Inquiry (TA60.1), you might need to adjust
the time accrual balances to reßect time usage on Manual Payment (PR80.1).
You can use Employee Plan Adjustments (TA70.2) in place of Plan
Adjustments (TA70.1) to adjust time accrual balances.
When you apply manuals, adjustments, and voids, the time accrual cycle is
affected in one of three ways:
If the manual, adjustment, or void has a period end date before the last period
end date on Employee Plan (TA60.1), enter a manual time accrual adjustment
on Plan Adjustments (TA70.1) and run Time Accrual Update (TA170) and
Time Accrual Close (TA199).
If the manual, adjustment, or void has a period end date after the last period
end date on Employee Plan (TA60.1) but before the temporary run date of
Time Accrual Update (TA170), re-run TA170 to include the new transaction.
If the manual, adjustment, or void has a period end date after the last period
end date on Employee Plan (TA60.1) and the payroll and time accrual cycles
are closed, the next Time Accrual Update (TA170) picks up the transactions
automatically.

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Payments
 Need More Details? Check out the following concepts:
• "Why Verify Time Accrual Balances and Dates for Manual
Payments?" on page 469

STEPS To adjust Time Accrual

1. Access Plan Adjustments (TA70.1).
2. Select the Company and Plan in the appropriate Þelds.
NOTE To process the 3. Consider the following Þelds.
time accrual adjustment
in the time accrual Position To Select the beginning employee number to display
cycle, the date of the
adjustment must be in on inquiry.
the current cycle. FC Select Add, Change, or Delete.
Employee Select the employee.
Adjustment Type the adjustment amount in hours. For
negative amounts, type the negative sign after
the amount.
Type Select Manual Accrual.
– or –
Select Manual Eligible to designate which
balance to adjust.
Date Type the date corresponding to the Period End
Date on Manual Payment (PR80.1).
Description Type a transaction description, such as the
payment number or payment date.

4. Choose the Add form action to add the changes.

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Closing the Payroll Cycle
Closing Payroll completes a payroll cycle, allowing the start of a new cycle.
Before updating the close, run the Payroll Close (PR197) in report mode to
see where the payment, expenses, and accruals will post. The payroll cycle
is closed after the report is run in update mode.

STOP Before closing the payroll cycle, complete the procedures previously
described in this chapter. For more information, see "Procedures in this
Chapter" on page 470.

Need More Details? Check out the following concepts:

• "When Should the Manual Payment Payroll Cycle be Closed?" on
page 469

STEPS To close payroll cycle

1. Access Payroll Close (PR197).
2. Close Payroll. For more information, see "Payroll Cycle: Close" on page
441.
3. Choose the Submit form action to submit the job.

Updating Time Accrual

The Time Accrual Update (TA170) and Time Accrual Close (TA199) must be
run to process the manual transactions for time accrual.
When you update time accrual transactions, Payroll:
• Reads all pay records since the last period end date on Employee Plan
Inquiry (TA60.1) for each participant
• Updates used hours from time records
• Calculates accrued hours based on plan parameters
• Transfers accrued hours to eligible hours based on plan parameters
• Creates lost transactions when total hours exceed limits
Time Accrual Close (TA199) closes the time accrual cycle, updates the actual
balance Þelds in Employee Plan Inquiry (TA60.1), and generates a report
showing the updated balances. The application closes the transactions of
the current time accrual cycle and updates employee balances and history
records.

Need More Details? Check out the following concepts:

• "Why Verify Time Accrual Balances and Dates for Manual
Payments?" on page 469

STEPS To update time accrual

1. Access and run Time Accrual Update (TA170).

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NOTE If you set the 2. Update time accrual. For more information, see "How Do I Process the
ßag to N on Plan Time Accrual Cycle Within the Payroll Cycle?" on page 413.
Adjustments (TA70.1),
the application picks up 3. Choose the Submit form action to submit the update.
manual payments and 4. Access and run Time Accrual Close (TA199).
system payments.
5. Run the report. For more information, see "Closing Time Accrual" on
page 448.
6. Choose the Submit form action to submit the close.

IMPORTANT When you manually adjust Time accrual you must always
update Plan Adjustments (TA70.1), Time Accrual Update (TA170), and
Time Accrual Close (TA199).

Related Reports and Inquiries

To Use
Create a report of the time accrual Time Accrual Report (TA175)
transactions listing hours used,
hours accrued, manual transactions
processed, hours lost, or all
transactions processed by Time
Accrual Update (TA170) for the
current time accrual cycle

IMPORTANT You must run General Ledger Liability Update (TA195) only
once per general ledger period to prevent over-booking the liability.

486 Chapter 31 Manual Processes: Payments Payroll User Guide

Chapter 32

Manual Processes: Replacement

Payments

This chapter covers how to process replacement payments within the Lawson
Payroll application.

STOP Before issuing a replacement, you must reserve checks. For more
information, see "Reserving Manual Payment Numbers" on page 472.

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Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 489 • "What is a Replacement Payment?" on page 488
• "Why Reserve Checks for Replacement Payments?" on page 488

What is a Replacement Payment?

Issue a replacement payment when an employee’s payment is lost or
destroyed, and the information on the original check is correct. When you
replace a payment, you assign a new payment number to an existing payment
previously closed through Payroll Close. You do not have to close Payroll
after running a replacement payment, since all history associated with the
original payment remains the same.
Replacements do not affect Time Accrual, Tips, or General Ledger history. If
the history must be adjusted, you can void the payment and reissue a manual
payment. For more information, see "Creating Manual Payments" on page
473.

Why Reserve Checks for Replacement Payments?

You must reserve payment numbers for each bank account reßected by
the replacement prior to creating a replacement payment. The process of
reserving checks has three functions:
Reserved - Once reserved, payment numbers are not available for normal
system payment use. Reserved payments are used for manual payments or
payment replacements.
Unreserve - The unreserve function serves to make previously reserved
payment numbers available again for application use.
Void - The void function is used to void payment numbers which were
accidentally destroyed but not used. After voiding a payment number, the
payment number is taken out of circulation and is not available for use with
manual or system payments.

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Payments
Procedures in this Chapter
The following procedures explain how to process manual payments.
• "Reserving Replacement Payment Numbers" on page 489
• "Creating a Replacement Payment" on page 489

Reserving Replacement Payment Numbers

Before you replace a payment, you must Þrst reserve a payment number for
use when processing the replacement payment.

STOP Before you reserve manual replacement payment numbers, you

must Þrst set up bank account information. For more information, see "Setting
Up Bank Codes" on page 185.

Need More Details? Check out the following concepts:

• "What is a Replacement Payment?" on page 488
• "Why Reserve Checks for Replacement Payments?" on page 488

STEPS To reserve replacement payment numbers

1. Access Manual Payment Reservation (PR81.1). For more information,
see "Reserving Manual Payment Numbers" on page 472.
2. Choose the company and bank code.
3. Type the payment number.
– or –
Type the range of payment numbers to reserve, void, or unreserve in
the payment Þelds.
TIP When reserving 4. Choose the form action to reserve, void, or unreserve payment numbers.
payments, choose
“reserve” twice to
complete the reservation IMPORTANT To void a payment that was reserved, you must Þrst
process. unreserve the payment, and then void the payment. Payment numbers
voided this way will not appear on Bank Account Reconciliation (PR85.1),
and are unavailable for use with either a system or manual payment.

Creating a Replacement Payment

When you replace a payment, the application assigns a new payment number
to the existing payment previously closed by Payroll Close (PR197). Payment
replacements automatically update employee history by replacing the number
and, optionally, the date of the original payment received. Because history

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 does not change, you do not need to run Payroll Close (PR197) to update
history for a replacement payment.

STOP Before creating a replacement payment, reserve the replacement

payment numbers in Manual Payment Reservation (PR81.1). For more
information, see "Reserving Replacement Payment Numbers" on page 489.

Need More Details? Check out the following concepts:

• "What is a Replacement Payment?" on page 488
• "Why Reserve Checks for Replacement Payments?" on page 488

STEPS To create a replacement payment

1. Access Payment Replacement (PR86.1).
NOTE When you assign 2. Complete the form. Consider the following Þelds.
a new payment number,
the original payment Company Choose a company.
number is voided
automatically on Bank Employee Select an employee.
Account Reconciliation
(PR85.1). The new Bank Code Choose the bank account on which the funds
payment is created as a were drawn for the original payment.
manual payment type for
payment reconciliation Payment Number, Select the payment number you are replacing.
purposes. Type
Choose the Inquire form action to list and verify
the detail on the original payment number.
New Payment Select a reserved payment number to replace the
Number original payment number.
Date Enter the date of the payment. A replacement
date replaces the original date in the payment Þle.

3. Choose the Replace form action to replace the original payment number.
4. Choose Print to open the Manual Payment Print (PR80.2) subform, and
print the replacement payment.
Bank Reconciliation (PR155) and Payment Register (PR162) use the
replacement date for reporting. In Bank Account Reconciliation (PR85.1), the
replacement date becomes the void date of the original payment as well as
the payment date of the replacement manual payment. This new date does
not affect the date associated with the original payment history. Payroll history
reports like Payment Detail Listing (PR260) print the original date. If the
original payment history must be associated with a different date, you must
void the original payment and issue a manual payment.

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Chapter 33

Manual Processes: Adjustments

This chapter covers how to create adjustments to Payroll history within the
Lawson Payroll application.

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Adjustments
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 499 • "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "What is an Offset or Wash Deduction, and When do I Need to use
These Deductions on an Adjustment?" on page 495
• "What are Pension Payment Adjustments?" on page 496
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on page
496
• "How Do Manual Adjustment Dates Affect the General Ledger?" on
page 498

What Kinds of Adjustments Can I Make?

You can create Payroll adjustments with either a zero net pay result, or with a
negative effect on net pay. Adjustments cannot be created to affect net pay
in a positive manner.
You can adjust the following:
• Pay codes
• Deductions
• Wages from taxable to excess wages or excess to taxable wages for
unemployment insurance in the United States, or employment insurance
in Canada
• Miscellaneous payment information
• Time Accrual
• Time and Attendance
• General Ledger entries, including deleting General Ledger entries
• Payments made to an employee by a third-party.
After the adjustment is created, you must update it to history by closing the
payroll cycle using the Payroll close in Update mode. You can wait to update
the adjustment to history by running the Payroll close with the next payroll
cycle or, as recommended by Lawson, close the adjustment immediately by
running Payroll close in Update mode. For more information, see "Calculating
Tip Credit Records (U.S. and CA)" on page 393.
For each adjustment, Payroll creates a unique payment record as a payment
type J (Adjustment).

492 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Examples
You can create an adjustment between non-tax deductions when an employee
has Nurse union Dues withheld but should have had Tech union Dues
withheld. In this example, the dollar amounts are the same for both codes.
For this example, enter positive dollars for the Nurse union dues code, and
negative dollars for the Tech union dues code. Enter positive hours for the
sick pay code, and negative hours for the regular pay code.
You can create adjustments between tax deductions, and wages associated
with tax deductions when an employee moves from Minnesota to Illinois, but
tax deductions associated with the employee are not changed before Payroll is
run. Taxes and associated wages must be “moved” from Minnesota to Illinois.
For this example, enter positive dollars for the Illinois withholding tax deduction
code, and negative dollars for the Minnesota withholding tax deduction code.
Enter positive taxable wages for the Illinois withholding tax deduction code,
and negative taxable wages for the Minnesota withholding tax deduction code.
Then, you enter gross wages for the Illinois withholding tax deduction code,
and negative gross wages for the Minnesota withholding tax deduction code.
You can create adjustments to move wages between taxable and excess
wages when an employee moves from Minnesota to Illinois but unemployment
tax deductions associated with the employee were not changed before
Payroll was run. In this case, you must adjust taxable and excess wages for
both states.
For this example, enter positive dollars for the Illinois unemployment tax
deduction code and negative dollars for the Minnesota unemployment tax
deduction code. Enter positive taxable wages in the Illinois withholding tax
deduction code. Enter Negative taxable wages for the Minnesota withholding
tax deduction code. Positive excess wages are entered for the Illinois
withholding tax deduction code, and negative excess wages for the Minnesota
withholding tax deduction code. Positive gross wages are entered for the
illinois withholding tax deduction code, and negative gross wages for the
Minnesota withholding tax deduction code.
You can create adjustments to move earnings between report entities if an
employee moves from Legal Entity #1 to Legal Entity #2, and the employee
record was not changed before Payroll was run. Taxes and associated wages
must be “moved” from Entity #1 to Entity #2. Adjustments of this type will
most likely involve employer and employee taxes and all taxable wages. For
this example, enter positive dollars for Tax Entity #2 deduction codes, and
negative dollars for Tax Entity #1 deduction codes. Enter positive taxable
wages for Tax Entity #2 deduction codes, and negative taxable wages for
Tax Entity #1 deduction codes. Positive excess wages are entered for Tax
Entity #2 deduction codes and negative excess wages are entered for Tax
Entity #1 deduction codes. Positive gross wages are entered for Tax Entity
#2 deduction codes, and negative gross wages are entered for Tax Entity
#1 deduction codes.
You can create adjustments to record repayment by an employee of a partial
overpayment. In this example, the employee reimburses the employer using
a personal check for the net amount of the overpayment. Use this adjustment
if an employee was paid for 40 hours of regular work, but worked only 35
hours. For this example, enter negative 5 hours for the regular pay code.

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Adjustments
 Supply a workers’ compensation state or province if the original payment was
associated with a different compensation state or province. Enter negative
dollars for tax deductions.
CAUTION Adjustments do
not calculate an end result.
What is entered on the
adjustment is the result of
the adjustment. For this
reason, you must be careful
when creating adjustments.
The only way for Payroll to
be out of balance is through
the use of adjustments.

What Kinds of Payroll History ModiÞcations are not Performed

Through Adjustments?
Payroll does not let you create an adjustment with a positive effect on net pay.
Therefore, you must use a manual payment method to make the following
types of modiÞcations to payroll history:
• Refunds of deductions
• Creating an additional payment for an employee
• Recording a Payroll payment made through accounts payable
For more information, see "Creating Manual Payments" on page 473.
Do not use an adjustment for adjustments to Life Insurance Reportable
Income. Instead, update the value of Life Insurance Reportable Income to
the employee record by using a non-cash pay code and the Life Insurance
Reportable Income update program as part of the normal payroll cycle. You
have the option to create time records every pay period, monthly, or yearly.
Update taxable relocation, personal use of a company car, prizes and awards,
and other non-cash types of payroll items to the employee record using a
non-cash pay code instead of through adjustments.
Update cash awards to the employee record and paid to the employee using
pay codes with an additional ßat rate calculation type.
NOTE This method Void a repayment to an employer from an employee for the entire net amount
applies only to a full of a payment not due to the employee, even if the payment has already
refund of the payment, been reconciled.
not a partial refund.

494 Chapter 33 Manual Processes: Adjustments Payroll User Guide

What is an Offset or Wash Deduction, and When do I Need to
use These Deductions on an Adjustment?
When creating an adjustment where gross pay less other deductions leaves a
positive balance, such as recording a third-party payment to an employee,
you can use an offset, or wash deduction to net an adjustment to zero.
Since the employer does not make this payment to the employee, the wash
deduction reduces the net to zero and takes the place of what is normally the
employee’s net pay.
A wash or offset deduction code is created with the following parameters:
• Employee paid
• A ßat amount calculation type
• A dollar amount of .01 with no deduction cycles checked
You must add the wash deduction code to the employee record. When you
use the wash deduction code on the adjustment, the net of the adjustment
becomes the dollar amount of the deduction on the adjustment. Leaving
deduction cycles blank ensures the deduction is applied only when the
deduction is manually entered on the adjustment.

Example
John Jones receives the following taxable payment of third-party sick pay
from Atlas Insurance. John’s gross pay is 1,000. The tax deductions withheld
total 326.60. The remaining net balance is 673.50. You must use a wash
deduction with an amount of 673.50 when adding the adjustment to Payroll,
since John already received his payment from Atlas Insurance. If the wash
deduction is not performed, the adjustment can not be added.

IMPORTANT Company paid deductions do not affect the gross-to-net

equation.

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What are Pension Payment Adjustments?
Pension payment adjustments are made to a payment received by a pension
participant. The types of adjustments you can be perform on pension
payments include:
• Positive adjustments to earnings without increasing net pay
• Distribution codes changes on closed payments
• Pension adjustments have a positive effect on net pay, and therefore, use
an offset or wash deduction
• Funding Source History adjustments
• Dollar adjustments between earnings codes, taxable to non-taxable,
update tax deductions
• Payment entry as an adjustment with no funding sources and no GL
entries
• Process Level changes associated with a payment
• Tax deduction corrections on pension payments
• Non-tax deduction corrections on pension payments
• Distribution type changes on pension payments
• Pension payment reporting changes from 1099R to W2
• Pension payment adjustments between earning codes

When can I Adjust History?

Make adjustments to either payroll history or tips history at any time during
the payroll year without affecting net pay. You can adjust history anytime
you run the payroll close in update mode. Because of this, you can make
adjustments to history as either:
• Part of the normal payroll cycle
– or –
• After the payroll cycle is closed
– or –
• At year end or quarter end

How are Adjustments Processed through Time Accrual?

Some adjustments might affect time accrual eligible or accrual balances.
For example, when an employee is paid for Holiday time, but should have
been paid for vacation time, a manual adjustment to time accrual might be
necessary.
Because Time Accrual will not go back to adjust accrued and eligible balances
for closed time accrual cycles, you might need to manually adjust accrued
and eligible balances for the employees.

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 Payroll adjustments are processed automatically through time accrual only
when the following four conditions are met:
• An accrual amount or accrual ratio formula is used by the plan
• An application payment exists for the employee in the payroll cycle
• The time accrual cycle is still open
• The date used on the adjustment is greater than the last period end date
on the employee plan
Any processed payroll adjustment which does not meet the above conditions
requires a manual Time Accrual adjustment to correct the employee’s eligible
balance in the plan. For more information, see "Creating Manual Payments"
on page 473.

Interpreting Warning Messages

Users receive one of three application messages regarding Time Accrual
when either voiding payments or entering payroll adjustments in Payroll:
Message Meaning
Change Complete, TA cycle open; The date of the void or adjustment
re-run TA170 is greater than the Last Period End
Date on Employee Plan Inquiry
(TA60.1), the time accrual cycle is
still open and Time Accrual Update
(TA170) was run. You need to re-run
TA170.
Change Complete - Time Accrual The date of the void or adjustment is
Cycle Closed less than the Last Period End Date
on Employee Plan Inquiry (TA60.1).
You must manually adjust eligible
balances in time accrual on Plan
Adjustments (TA70.1) as a result
of the void or adjustment made in
Payroll.
Change Complete The date of the void or adjustment
is greater than the Last Period End
Date on Employee Plan Inquiry
(TA60.1), and the time accrual cycle
has not been run for that time frame.
Include the adjustment in the next
run of TA170.

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How Do Manual Adjustment Dates Affect the General Ledger?
When you create an adjustment, the date entered on and applied to the
adjustment is the date applied to the adjustment in the General Ledger. The
application does not apply the general ledger date on the payroll close to
the adjustment.
If the dollars for the adjustment are already posted to the general ledger, you
can delete the distributions for the adjustment so the distributions are not
double-posted to the general ledger. If an out-of-balance condition occurs
due to a change made to the entries, Payroll posts the difference to the
error suspense account, which was originally created when you setup your
company. You can also change distributions before posting to the general
ledger.

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Procedures in this Chapter
The following procedures explain how to create adjustments.
• "Creating Miscellaneous Adjustments" on page 499
• "Creating Adjustments between Pay Codes" on page 503
• "Creating Adjustments between Non-Tax Deductions" on page 505
• "Creating Adjustments between Tax Deductions and Wages
associated with Tax Deductions" on page 506
• "Creating Adjustments to move Wages between Taxable and Excess
Wages" on page 507
• "Creating Adjustments to Move Earnings Between Report Entities"
on page 510
• "Creating Adjustments to Record Repayment by an Employee of a
Partial Overpayment" on page 513
• "Creating Adjustments to Record Payment by a Third-Party Payer"
on page 516
• "Editing General Ledger Entries Created by an Adjustment" on page
519

Creating Miscellaneous Adjustments

Use Adjustment (PR82.1) to create adjustments other than those described in
the remaining procedures in this chapter.

Need More Details? Check out the following concepts:

• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "What are Pension Payment Adjustments?" on page 496
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create miscellaneous adjustments

1. Access Adjustment (PR82.1).
2. In the Date Þeld, type a date for this adjustment.

IMPORTANT Use caution in supplying the date to apply to this

adjustment to history. If no date is supplied, the system date is used on
the adjustment. This date will have an impact on tax reporting.

3. In the Bank Code Þeld, select a bank code to apply to this adjustment.

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Adjustments
 If no bank code is supplied, the bank code associated with the process
level defaults.
4. Select the Earnings Tab. Consider the following Þelds.

Pay Enter the pay codes to adjust.

Hours Enter the hours as a positive number to reßect
additional hours associated with this pay code.
Enter the hours as a negative number to reßect
fewer hours associated with this pay code.
Amount Enter the amount as a positive number to reßect
additional dollars associated with this pay code.
Enter the amount as a negative number to reßect
fewer dollars associated with this pay code.
Proc Level To change the report entity associated with this
adjustment, change the process level.

IMPORTANT A change in the Process level

impacts tax reporting.

Dept To change the department associated with this

adjustment, change the department.
Business Nbr Grp If the adjustment is for a Canadian employee,
change the Business Number Code to change
the business number code associated with this
adjustment.

IMPORTANT A change in the business number

code impacts tax reporting.

Quebec Ent Nbr If the adjustment is for a Canadian employee,

Grp change the Quebec Enterprise Number group to
change the Quebec Enterprise Number Group
associated with this adjustment.

IMPORTANT A change in the Quebec Enterprise

Number Group impacts tax reporting.

St, Pr Work Change the state or province on this adjustment

to the state or province where the employee
works.

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 St, PR WC Change the Workers’ Compensation state or
province on this adjustment to the state or
province associated with this adjustment.

5. To enter additional information, select the Additional Information tab.

Consider the following Þeld.

Job Code Change the job code to a job code associated

with this adjustment.
Position Change the position code to a position code
associated with this adjustment.

6. To enter account information, select the Account Information tab.

Consider the following Þelds.

Expense Account Change the expense account to an expense

account associated with this adjustment.

IMPORTANT If the dollars for the adjustment are already posted to the
general ledger, you can delete the distributions for the adjustment so they
are not double-posted to the general ledger. If an out-of balance condition
occurs due to changes made to the entries, Payroll posts the difference to
the error suspense account. Distributions can also be changed before
posting to the general ledger.

Activity Change the activity to an activity associated with

this adjustment.

7. Select the User Analysis tab to change the user analysis associated with
this adjustment.
8. Select the Deduction Tab. Consider the following Þelds.

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 Ded Supply the deduction codes to adjust.
Proc Level If this adjustment is for tax deductions and related
wages, you can associate a different Process
Bus Grp
Level, Business Number Code or Quebec
QC Grp Enterprise Number Group, State, or Province.
St Pr These Þelds are repeated on both the Earnings
and Deductions tabs because certain adjustments
require you to complete only one of the two tabs.
Amount Enter the amount as a positive number to reßect
an increase in the deduction amount for this
deduction code.
Enter the amount as a negative number to reßect
a reduction in the deduction amount for this
deduction code.
Taxable Enter the taxable amount as a positive number
to reßect an increase in the taxable wages
associated with this deduction code.
Enter the taxable amount as a negative number
to reßect a reduction in taxable wages associated
with this deduction code.
Gross Wages For U.S., gross wages are deÞned as total
wages associated with this deduction before any
tax-sheltered deductions are applied.
For Canada, gross wages are deÞned as gross
earnings plus taxable beneÞts associated with
this deduction.
Enter the gross wages as a positive number
to reßect an increase in gross wages for this
deduction code.
Enter the gross wages as a negative number
to reßect a reduction in gross wages for this
deduction code.

9. Select the Funding Sources Tab. Consider the following Þelds.

Funding Source Supply the funding source code to adjust.

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 Amount Supply the amount of the funding source to
adjust.
Enter the amount as a positive number to
reßect an increase in the amount of the pension
payments for this fund.
Enter the amount as a negative number to
reßect a reduction in the amount of the pension
payments for this fund.

10. Select the Additional Information Tab. Consider the following Þelds.

Dist Type Choose a distribution type to change the

distribution type associated with this adjustment.
Dist Code Choose a distribution code to change the
distribution code associated with this adjustment.
Dist Code2 Choose a 2nd distribution code to change the 2nd
distribution code associated with this adjustment.
Pct Total Dist Change the percent to change the percent of
the total distribution code associated with this
adjustment.

11. Choose the Add form action to add the form.

12. Update the adjustment to payroll history through Payroll Close (PR197).
Lawson recommends you run Payroll Register (PR141) before you close
adjustments and include these totals in the payroll ledger you use for
balancing. If you wait to close the adjustment until you process the next
payroll cycle, the adjustment will be included with the payroll register of
that payroll and might complicate balancing. For more information, see
"Creating the Payroll Register (U.S. and CA)" on page 439.

Creating Adjustments between Pay Codes

Use Adjustment (PR82.1) to create adjustments between pay codes. You
can use this type of adjustment when an employee is paid regular pay but
should be paid sick pay.

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 Need More Details? Check out the following concepts:
• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create adjusments between pay codes

1. Access Adjustment (PR82.1).
2. Type a date in the Date Þeld.

IMPORTANT Use caution when you supply the date to apply this
adjustment to history. If you do not supply a date, the application uses the
system date on the adjustment. This date has an impact on tax reporting.

3. Select the Earnings tab. Use only this tab to create adjustments between
pay codes. Consider the following Þelds.

Pay Supply the pay codes to adjust.

Hours Enter hours as a positive number to reßect
additional hours associated with this pay code.
Enter a negative number to reßect fewer hours
associated with this pay code.
Amount Enter the amount as a positive number to reßect
additional dollars associated with this pay code.
Enter the amount as a negative number to reßect
fewer dollars associated with this pay code.

4. Type or choose information in the other Þelds on PR82.1 to change with

the hours and dollars associated with the selected pay code.

Related Reports and Inquiries

To Use
Summarize wages by pay class for Employee Wage Report (PR270)
an individual, range, or group of
employees
Access YTD Quarterly taxable Quarterly Report (PR290)
wages and withholding totals per
employee by tax authority and
category.
Produce a list of payments Payment Detail Listing (PR260)

504 Chapter 33 Manual Processes: Adjustments Payroll User Guide

Creating Adjustments between Non-Tax Deductions
Use Adjustment (PR82.1) to create adjustments between miscellaneous
non-tax deductions. For more information, see "What Kinds of Adjustments
Can I Make?" on page 492.

STOP Before creating adjustments between non-tax deductions, the

deductions must already be associated with the employee. For more
information, see "Employee: Deductions" on page 235.

Need More Details? Check out the following concepts:

• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create adjustments between non-tax deductions

1. Access Adjustment (PR82.1).
2. Type a date in the Date Þeld.

IMPORTANT Use caution when you supply the date to apply this
adjustment to history. If you do not supply a date, the application uses the
system date on the adjustment. This date has an impact on tax reporting.

NOTE When creating 3. Select the Deductions tab. Consider the following Þelds.
adjustments between
miscellaneous Ded Enter the Deduction codes to adjust.
deductions, choose only
the deductions tab. Amount Enter the amount as a positive number to reßect
an increase in the deduction amount associated
with this deduction code.
Enter the number as a negative to reßect a
reduction in the deduction amount associated
with this deduction code.

4. Type or choose information in the other Þelds on PR82.1 to change with

the hours and dollars associated with the selected pay code.

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 Related Reports and Inquiries
To Use
Summarize deductions and Employee Deduction Report
associated taxable wages by (PR276)
deduction code or deduction class
for an individual, range or group of
employees

Creating Adjustments between Tax Deductions and Wages

associated with Tax Deductions
Use Adjustment (PR82.1) to create adjustments between tax deductions and
wages associated with tax deductions such as when an employee moves to
another state. For more information, see "What Kinds of Adjustments Can I
Make?" on page 492.

STOP Before creating adjustments between tax deductions and wages

associated with tax deductions, the deductions must already be associated
with the employee. For more information, see "Employee: Deductions" on
page 235.

Need More Details? Check out the following concepts:

• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create adjustments between tax deductions and

wages associated with tax deductions
1. Access Adjustment (PR82.1).
2. Type a date in the Date Þeld.

IMPORTANT Use caution when you supply the date to apply this
adjustment to history. If you do not supply a date, the application uses the
system date on the adjustment. This date has an impact on tax reporting.

506 Chapter 33 Manual Processes: Adjustments Payroll User Guide

NOTE Use only the 3. Select the Deductions tab. Consider the following Þelds:
deductions tab when
creating adjustments Ded Enter the deduction codes to adjust.
between tax deductions
and wages associated Bus Code or QC Enter the Business Number Code or Quebec
with tax deductions. Grp Enterprise Number Group associated with the
deduction amount and related wages being
adjusted.
Amount Enter the amount as a positive number to reßect
an increase in the deduction amount associated
with this deduction code.
Enter the amount as a negative number to reßect
a reduction in the deduction amount associated
with this deduction code.
Taxable Enter the taxable amount as a positive number
to reßect an increase in the taxable wages
associated with this deduction code.
Enter a negative number to reßect a reduction
in taxable wages associated with this deduction
code.
Gross Wages Enter the gross wages.
For more information, see "Creating
Miscellaneous Adjustments" on page 499.

4. Type or choose information in the other Þelds on PR82.1 to change with

the hours and dollars associated with the selected pay code.

Related Reports and Inquiries

To Use
Summarize deductions and Employee Deduction Report
associated taxable wages by (PR276)
deduction code or deduction class
for an individual, range, or group of
employees
Access YTD Quarterly taxable Quarterly Report (PR290)
wages and withholding totals per
employee by tax authority and
category
Produce a list of payments Payment Detail Listing (PR260)

Creating Adjustments to move Wages between Taxable and

Excess Wages
Use Adjustment (PR82.1) to create adjustments to move wages between
taxable and excess wages such as when an employee moves to another

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Adjustments
 state. For more information, see "What Kinds of Adjustments Can I Make?"
on page 492.

STOP Before creating adjustments to move wages between taxable and

excess wages, the deductions must already be associated with the employee.
For more information, see "Employee: Deductions" on page 235.

Need More Details? Check out the following concepts:

• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create adjustments to move wages between taxable

and excess wages
1. Access Adjustment (PR82.1).
2. Type a date in the Date Þeld.

IMPORTANT Use caution when you supply the date to apply this
adjustment to history. If you do not supply a date, the application uses the
system date on the adjustment. This date has an impact on tax reporting.

NOTE Use only the 3. Select the Deductions tab. Consider the following Þelds.
Deductions tab when
creating adjustments to
move wages between NOTE U.S. state unemployment taxable wages, or Canadian CPP/QPP
taxable and excess taxable wages may differ between the "to" and "from" Tax Entities
wages. because of a change in Tax Authority. Taxable earnings associated with
tax deductions which have no ceiling, or where a change in Tax Authority
is not an issue will be adjusted as the same taxable wage amounts for
both the positive and negative adjustments for the same deduction codes.
Override the process level (or for Canada Business Number Code or
Quebec Business number) on the positive adjustment to the "to" Tax
Entity and ensure the "old" Tax Entity process level is reßected on the
negative adjustment.

Ded Supply the deduction codes to adjust.

Bus Grp or QC Enter the Business Number Group or Quebec
Grp Enterprise Number Group associated with the
deduction amount and related wages being
adjusted.

508 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Amount Enter the amount as a positive number to reßect
an increase in the unemployment deduction,
or Employment Insurance (E.I.) deduction for
Canada, associated with this deduction code.
Taxable If taxable wages are affected, enter the amount
as a positive number to reßect an increase
in the taxable wages associated with this
unemployment (Employment Insurance or E.I.)
deduction code. Enter a negative number to
reßect a reduction in taxable wages associated
with this unemployment (Employment Insurance
or E.I.) deduction code.
Excess If excess wages are affected, enter the amount
as a positive number to reßect an increase
in the excess wages associated with this
unemployment (Employment insurance or E.I.)
deduction code. Enter a negative number to
reßect a reduction in excess wages associated
with this unemployment (Employment Insurance
or E.I.) deduction code.
Gross Wages Enter the gross wages.
For more information, see "Creating
Miscellaneous Adjustments" on page 499.

4. Type or choose information in the other Þelds on PR82.1 to change with

the hours and dollars associated with the selected pay code.

Related Reports and Inquiries

To Use
Summarize total wages, taxable Unemployment Continuation Form
wages and excess wages within the (PR291)
work state or province
Summarize by Tax Authority and Tax Balancing Report (PR294)
Category for YTD and QTD Gross,
Taxable, and Excess wages and tax
withheld
Access YTD Quarterly taxable Quarterly Report (PR290)
wages and withholding totals per
employee by tax authority and
category
Produce a list of payments Payment Detail Listing (PR260)

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Adjustments
Creating Adjustments to Move Earnings Between Report
Entities
Use Adjustment (PR82.1) to create adjustments to move earnings between
report entities. For more information, see "What Kinds of Adjustments Can I
Make?" on page 492.

STOP Before creating adjustments to move earnings between report

entities, all deductions to adjust must already be associated with the
employee. For more information, see "Employee: Deductions" on page 235.

Need More Details? Check out the following concepts:

• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create adjustments to move earnings between report

entities
1. Access Adjustment (PR82.1).
2. Type a date in the Date Þeld.

IMPORTANT Use caution when you supply the date to apply this
adjustment to history. If you do not supply a date, the application uses the
system date on the adjustment. This date has an impact on tax reporting.

510 Chapter 33 Manual Processes: Adjustments Payroll User Guide

NOTE Use only the 3. Select the Deductions tab. Consider the following Þelds.:
deductions tab when you
create adjustments to
move earnings between NOTE U.S. state unemployment taxable wages, or Canadian CPP/QPP
report entities. taxable wages may differ between the “to” and “from” Tax Entities
because of a change in Tax Authority. Taxable earnings associated with
tax deductions which have no ceiling, or where a change in Tax Authority
is not an issue will be adjusted as the same taxable wage amounts for
both the positive and negative adjustments for the same deduction
codes. Override the process level (or for Canada Business Number Code
or Quebec Business number) on the positive adjustment to the “to” Tax
Entity and ensure the “old” Tax Entity process level is reßected on the
negative adjustment.

Ded Supply the deduction codes to adjust. This

type of adjustment might include employee and
employer withholding tax deductions, including
unemployment deductions in the United States,
or E.I. (Employment Insurance) in Canada.
Bus Code or QC Enter the Business Number Code or Quebec
Grp Enterprise Number Group Associated with the
deduction amount and related wages being
adjusted.
Amount Enter the amount as a positive number to reßect
an increase in the deduction amount associated
with this deduction code.
Enter a negative number to reßect a reduction
in the deduction amount associated with this
deduction code.

NOTE The same withholding amounts are

reßected as positive and negative for the same
deduction codes. Override the Process Level (or
for Canada, Business Number Code or Quebec
Business Number) on the positive adjustment
to the “to” Tax Entity and ensure the “old” Tax
Entity Process Level is reßected on the negative
adjustment.

Taxable Enter the taxable wages.

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Adjustments
 For more information, see "Creating Miscellaneous Adjustments" on page
499.
Excess If excess wages are affected, enter the amount
as a positive number to reßect an increase in the
excess wages associated with this unemployment
(Employment Insurance or E.I.) deduction code.
Enter the amount as a negative number to reßect
a reduction in excess wages associated with this
unemployment (Employment Insurance or E.I.)
deduction code.

Gross Wages Enter the gross wages.

NOTE The same gross wage amounts are

reßected as positive and negative for the same
deduction codes on adjustments. Override the
process level (or for Canada, Business Number
Code or Quebec Business Number) on the
positive adjustment to the “to” Tax Entity and
ensure the “old” Tax Entity process level is
reßected on the negative adjustment.

For more information, see "Creating

Miscellaneous Adjustments" on page 499.
Process Level Choose other related information to be “moved”
with the hours and dollars associated with the
deduction code.
If you want to change the report entity where
the wages and taxes being adjusted should be
reported, change the process level.

4. Type or choose information in the other Þelds on PR82.1 to change with

the hours and dollars associated with the selected pay code.

512 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Related Reports and Inquiries
To Use
Summarize total wages, taxable Unemployment Continuation Form
wages and excess wages within the (PR291)
work state or province
Access a summary by Tax Authority Balancing Report (PR294)
and Tax Category for YTD and QTD
Gross, Taxable, and Excess wages
and tax withheld
Access YTD Quarterly taxable Quarterly Report (PR290)
wages and withholding totals per
employee by tax authority and
category
Summarize deductions and Employee Deduction Report
associated taxable wages by (PR276)
deduction code or deduction class
for an individual, range, or group of
employees
Produce a list of payments Payment Detail Listing (PR260)

Creating Adjustments to Record Repayment by an Employee

of a Partial Overpayment
Use Adjustment (PR82.1) to create adjustments to record repayment by an
employee of a partial overpayment. You can use this form to adjust pay if an
employee was paid for 40 hours of regular work, but worked only 35 hours.
For more information, see "What Kinds of Adjustments Can I Make?" on page
492.

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Adjustments
 Need More Details? Check out the following concepts:
• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create adjustments to record repayment by an

employee of a partial overpayment
1. Access Adjustment (PR82.1).
2. Type a date in the Date Þeld.

IMPORTANT Use caution when you supply the date to apply this
adjustment to history. If you do not supply a date, the application uses the
system date on the adjustment. This date has an impact on tax reporting.

3. Select the Earnings tab. Consider the following critical Þelds.

Pay Choose a pay code to adjust.

Hours Enter the hours as a negative number to reßect
fewer hours associated with this pay code.
Amount Enter the amount as a negative number to reßect
fewer dollars associated with this pay code.

514 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Remaining Þelds Select or enter related information in the
remaining Þelds to delete with the hours and
dollars associated with the pay code.

4. Select the Deductions tab. Consider the following critical Þelds:

Ded Supply the deduction codes to adjust.

This type of adjustment might include employee
and employer withholding tax deduction,
including unemployment (Employment Insurance
or E.I.) deductions.
Bus Code or QC Enter the Business Number Code or Quebec
Grp Enterprise Number Group associated with the
deduction amount and related wages being
adjusted.
Amount Enter the amount as a negative number to reßect
a reduction in the deduction amount associated
with this deduction code.
Taxable Enter the amount as a negative number to reßect
a decrease in the taxable wages associated with
this deduction code.
Excess If excess wages are affected, enter the amount as
a negative number to reßect a decrease in excess
wages associated with this deduction code.
Gross Wages Enter the gross wages as a negative number to
reßect a reduction in gross wages associated
with this deduction code.
For more information, see "Creating
Miscellaneous Adjustments" on page 499.
Remaining Þelds Select or type other related information to delete
with the hours and dollars associated with the
deduction code.

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Adjustments
 Related Reports and Inquiries
To Use
Summarize total wages, taxable Unemployment Continuation Form
wages and excess wages within the (PR291)
work state or province
Access a summary by Tax Authority Balancing Report (PR294)
and Tax Category for YTD and QTD
Gross, Taxable, and Excess wages
and tax withheld
Access YTD Quarterly taxable Quarterly Report (PR290)
wages and withholding totals per
employee by tax authority and
category
Summarize deductions and Employee Deduction Report
associated taxable wages by (PR276)
deduction code or deduction class
for an individual, range, or group of
employees
Access summary level pay class Employee Wage Report (PR270)
or pay summary group data for an
individual or range of employees for
a date range
Summarize data deduction code by Deduction Report (PR275)
employee payment, breaking out
adjustments separately
Produce a list of payments Payment Detail Listing (PR260)

Creating Adjustments to Record Payment by a Third-Party

Payer
Use Adjustment (PR82.1) to create adjustments to record payment by a
third-party payer. You can use this form if an employee receives third-party
sick pay which the employer must update to the employee record. A wash
deduction is required for this procedure.

516 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Need More Details? Check out the following concepts:
• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "What is an Offset or Wash Deduction, and When do I Need to
use These Deductions on an Adjustment?" on page 495
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To create adjustments to record payment by a third-party

payer
1. Access Adjustment (PR82.1).
2. Type the date in the Date Þeld.

IMPORTANT Use caution when you supply the date to apply this
adjustment to history. If you do not supply a date, the application uses the
system date on the adjustment. This date has an impact on tax reporting.

3. Select the Earnings tab. Consider the following critical Þelds.

Pay Select a pay code to adjust.

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Adjustments
 Amount Enter the amount as a positive number to reßect
gross dollars to associate with this pay code.
To record payment by a third-party payer, positive
dollars are entered for a pay code that represents
third-party sick pay.

4. Select the Deductions tab. Consider the following critical Þelds.

Ded Select the deduction code to adjust.

The above adjustment might include employee
and employer withholding tax deductions,
including unemployment (Employment Insurance
or E.I.) deductions.
The third-party payer supplies the employer with
detail of what was withheld from the employee’s
payment.

IMPORTANT A wash or offset deduction must

also be added in the amount of the net payment
to the employee. No wages are associated with
the wash or offset deduction.

Bus Code or QC Enter the Business Number Code or Quebec

Grp Enterprise Number Group associated with the
deduction amount and related wages to adjust.
Amount Enter the amount as a positive number to reßect
the deduction taken from the employee to
associate with this deduction code.
For example, positive dollars are entered for the
Federal tax deduction.
Taxable Enter the amount as a positive number to reßect
an increase in the taxable wages associated with
this deduction code.
Excess If excess wages are affected, enter the amount as
a positive number to reßect an increase in excess
wages associated with this deduction code.
Gross Wages Enter the amount as a positive number to reßect
an increase in gross wages associated with this
deduction code.
For more information, see "Creating
Miscellaneous Adjustments" on page 499.

518 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Related Reports and Inquiries
To Use
Summarize total wages, taxable Unemployment Continuation Form
wages and excess wages within the (PR291)
work state or province
Access a summary by Tax Authority Balancing Report (PR294)
and Tax Category for YTD and QTD
Gross, Taxable, and Excess wages
and tax withheld
Access YTD Quarterly taxable Quarterly Report (PR290)
wages and withholding totals per
employee by tax authority and
category
Summarize deductions and Employee Deduction Report
associated taxable wages by (PR276)
deduction code or deduction class
for an individual, range, or group of
employees
Access summary level pay class Employee Wage Report (PR270)
or pay summary group data for an
individual or range of employees for
a date range
Summarize data deduction code by Deduction Report (PR275)
employee payment, breaking out
adjustments separately
Produce a list of payments Payment Detail Listing (PR260)

Editing General Ledger Entries Created by an Adjustment

You can add, change, partially, or completely delete Payroll general ledger
entries if you add an adjustment before closing the adjustment through Payroll
Close (PR197).
For example, if you are creating an adjustment for a payment paid out of
Accounts Payable, you might need to delete some General Ledger entries
from the adjustment you created. Entries are deleted when the General
Ledger is updated by the Accounts Payable entry.

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Adjustments
 Need More Details? Check out the following concepts:
• "What Kinds of Adjustments Can I Make?" on page 492
• "What Kinds of Payroll History ModiÞcations are not Performed
Through Adjustments?" on page 494
• "When can I Adjust History?" on page 496
• "How are Adjustments Processed through Time Accrual?" on
page 496
• "How Do Manual Adjustment Dates Affect the General Ledger?"
on page 498

STEPS To edit GL entries created by an adjustment

1. Access Adjustment Distributions (PR82.2).
2. Choose the Company and Employee in the appropriate Þelds.
3. Select the Inquire form action to select the adjustment to edit the
distributions.
4. Choose OK to display the adjustment distribution entries.
5. Select the Change form action, and select the Change line action on
the appropriate line.
6. Edit the adjustment. Consider the following Þelds.

FC Select the action you want to perform on this line.

To add distribution information to an existing
adjustment, inquire on the adjustment then select
form action Change and line action Add and enter
the distribution information.
Exp Co For distributions created by Adjustment (PR82.1),
the company to which the adjustment is posted
displays but can be changed.
When adding distribution information for an
existing adjustment, select the company to which
the adjustment is to post.
Accounting Unit For distributions created by Adjustment (PR82.1),
the accounting unit to which the adjustment is
posted displays but can be changed.
When adding distribution information for an
existing adjustment, select the accounting unit to
which the adjustment is to post.
Acct For adjustments created by Adjustment (PR82.1),
the account to which the adjustment is posted
displays but can be changed.
When adding distribution information to an
existing adjustment, select the account number
to which the adjustment is to post.

520 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Sub Acct For distributions created by Adjustment (PR82.1),
the distribution subaccount number to which
the adjustment is posted displays but can be
changed.
When adding distribution information for
an existing subaccount number, select the
subaccount number to which the adjustment is
to post.
Amount For adjustments created by Adjustment (PR82.1),
the adjustment amount displays but can be
changed.
When adding distribution information for an
existing adjustment, type the adjustment amount.
Activity For distributions created by Adjustment (PR82.1),
the activity which the adjustment is posted
displays but can be changed.
When adding distribution information for an
existing adjustment, select the activity to which
the adjustment is to post.
Acct Cat For distributions created by Adjustment (PR82.1),
the account category to which the adjustment is
posted displays but can be changed.
When adding distribution information for an
existing adjustment, select the account category
to which the adjustment is to post.
Tp For distributions created by Adjustment (PR82.1),
the adjustment type displays but can be changed.
For adjustment distributions that are manually
added, select the value that indicates if the
distribution is a Cash, Expense, or Accrual type
entry.
Ded For deduction adjustment distributions created by
Adjustment (PR82.1), the deduction displays but
can be changed.
When adding deduction distribution information
for an existing adjustment, select the deduction
associated with the adjustment.

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Adjustments
 Pay For adjustment distributions created by
Adjustment (PR82.1), the pay code associated
with the adjustment displays but can be changed.
When adding distribution information for an
existing adjustment, select the pay code
associated with the adjustment.

7. Choose OK to save the data.

8. Choose the Additional Information detail tab to override default information
for the adjustment distributions. Consider the following Þelds.

Hours Type the hours associated with the distribution.

Job Code Select the job code associated with the
distribution.
Process Level Select the process level associated with the
distribution.
Department Select the department associated with the
distribution.
Position Select the position associated with the
distribution.

IMPORTANT If the dollars for the adjustment have already been posted
to the general ledger, you can delete the distributions for the adjustment
so they are not double-posted to the general ledger. If an out-of balance
condition occurs due to changes made to the entries, Payroll posts the
difference to the error suspense account. Distributions can also be
changed before posting to the general ledger.

9. Update the Adjustment to payroll history through Payroll Close (PR197).

Lawson recommends running Payroll Register (PR141) before closing
adjustments and including these totals in the payroll ledger used for
balancing. If you wait to close the adjustment until you process the
next payroll cycle, the adjustment is included with the payroll register of
that payroll and might complicate balancing. For more information, see
"Creating the Payroll Register" on page 483.

522 Chapter 33 Manual Processes: Adjustments Payroll User Guide

 Related Reports and Inquiries
To Use
Report all earnings and deductions Payroll Register (PR141)
affected by the adjustment process
– or –
Consolidated Payroll Register
(PR142)
List all adjustments issued or all Payment Register (PR162)
adjustments not closed by Payroll
Close (PR197)
Produce a list of payments Payment Detail Listing (PR260)

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Adjustments
524 Chapter 33 Manual Processes: Adjustments Payroll User Guide
Chapter 34

Manual Processes: Voids

This chapter covers how to process voids within the Lawson Payroll.

Payroll User Guide Chapter 34 Manual Processes: Voids 525

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 528 • "What Happens when I Void a Payment?" on page 526
• "When should I void a Payment?" on page 526
• "When will a Void affect Time Accrual?" on page 527

What Happens when I Void a Payment?

When you void a payment, the Payroll creates reversing payment entries
and general ledger distribution entries. To eliminate balancing and reporting
problems when voiding payments, make sure the reconciliation date you
apply to the void is in the proper payroll quarter.
If you do not enter a reconciliation date when you void a payment, the
reconciliation date defaults to the Payroll date. The reconciliation date
determines the month, quarter, and year in which the reversing entries are
reported in employee history. The Payroll updates payroll history Þles based
on the reconciliation date and uses this date when it creates reversing general
ledger entries for a voided payment or partial voided payment.

When should I void a Payment?

You can void incorrect payments created and closed within the Payroll
when you process the bank reconciliation within or independent of bank
reconciliation processing.
To close the void record and post the information, Lawson recommends you
run a payroll register and close payroll after voiding a payment. Completion
of these processes facilitates balancing payroll information by keeping
exceptions, such as void payments, separate from your regular payments.
If you wait to update the void with the payroll close when the next payroll
cycle processes, the payroll register of the new payroll run includes the voids,
complicating payroll balancing.

526 Chapter 34 Manual Processes: Voids Payroll User Guide

When will a Void affect Time Accrual?
Occasionally, you need to void a payment that affects Time Accrual usage.
Voids are processed automatically through time accrual by increasing the
eligible balance only when the following three conditions are met:
• A system payment exists for the employee in the payroll cycle
• The time accrual cycle is still open
• The date used to void the payment is greater than the last period end
date on the employee plan
Any void not meeting these conditions requires a manual adjustment to time
accrual to reset the eligible balance.

Example
In February of this year, the payroll department discovered an incorrect
paycheck from January of the same year for Harold Sanchez. This paycheck
erroneously paid Harold for 40 hours of vacation, and must be voided. Since
the payroll and time accrual cycles for January are closed, you must make an
adjustment in Time Accrual application to add back the 40 hours to Harold’s
vacation balance.
If you void a payment, the Payroll reverses usage and adjusts eligible
balances in Time Accrual. For Time Accrual to process a voided payment, a
system payment must be in the current payroll cycle.

Payroll User Guide Chapter 34 Manual Processes: Voids 527

Procedures in this Chapter
The following procedures explain how to void payments, direct deposits, and
partial payments in the Payroll.
• "Voiding a Reserved Manual Payment Number" on page 528
• "Verifying Time Accrual Dates When Voiding a Payment" on page 529
• "Voiding a Payment" on page 531
• "Voiding a Direct Deposit Receipt" on page 534
• "Voiding a Partial Payment" on page 535
• "Adjusting Attendance History" on page 535

Voiding a Reserved Manual Payment Number

You can void a reserved manual payment when the corresponding paper
check is accidentally destroyed.

STOP Before you add a manual payment, you must Þrst reserve payment
numbers for use when processing manual payments. When reserving manual
payment numbers on Manual Payment Reservation (PR81.1), include the
number of alignment forms deÞned. The Payroll voids payment numbers
reserved for alignment when you run Manual Payment Print (PR180). For
more information, see "Reconciling Payments Manually" on page 559.

Need More Details? Check out the following concepts:

• "Why Reserve Checks for Manual Payments?" on page 468

STEPS To void a reserved manual payment number

1. Access Manual Payment Reservation (PR81.1). For more information,
see "Reserving Manual Payment Numbers" on page 472.
2. Choose the Company and Bank Code.
3. Type the payment number.
– or –
Type the range of payment numbers to reserve, void, or unreserve in
the payment Þelds.
4. Choose the Unreserve form action to void a payment that was reserved.
5. Choose the Void form action to void the payment.

IMPORTANT Payment numbers voided in this manner will not show up

on Bank Account Reconciliation (PR85.1), and are unavailable for use
with a system or manual payment.

528 Chapter 34 Manual Processes: Voids Payroll User Guide

Verifying Time Accrual Dates When Voiding a Payment
Some payments affect Time Accrual usage. This procedure covers how to
determine whether or not an adjustment to Time Accrual is necessary when
voiding a payment.
You can use Employee Plan Adjustments (TA70.2) in place of Plan
Adjustments (TA70.1) to adjust time accrual balances.
When you apply manuals, adjustments, and voids, the Time Accrual cycle is
affected in one of three ways.
Enter a manual Time Accrual adjustment on Plan Adjustments (TA70.1) and
run Time Accrual Update (TA170), and Time Accrual Close (TA199), if the
manual, adjustment, or void has a Period End Date before the Last Period
End Date on Employee Plan (TA60.1).
Re-run TA170 to include the new transaction if the manual, adjustment, or
void has a Period End Date after the Last Period End Date on Employee Plan
(TA60.1) but before the “temporary run date” of Time Accrual Update (TA170).
When the next Time Accrual Update (TA170) is run, it will pick up the
transactions automatically if the manual, adjustment, or void has a Period
End Date after the Last Period End Date on Employee Plan (TA60.1) and
the Payroll and Time Accrual cycles are closed, For more information, see
"Verifying Eligible Time Accrual Balances" on page 473.

Need More Details? Check out the following concepts:

• "When will a Void affect Time Accrual?" on page 527

STEPS To verify &productTA; dates when voiding a payment

1. Access Employee Plan Inquiry (TA60.1). For more information, see
"Verifying Eligible Time Accrual Balances" on page 473.

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NOTE You can wait to 2. Compare the Time Accrual dates to the void date..
adjust the accrual until
after the payment is If Then
voided and the payroll
cycle is closed. The void has a reconciliation date perform a manual time accrual
before the Last Period End Date adjustment on Plan Adjustments
on Employee Plan Inquiry (TA60.1) (TA70.1). For more information,
see "Updating Time Accrual" on
page 485.
run Time Accrual Update (TA170)
. For more information, see
"Updating Time Accrual" on page
485.
run Time Accrual Close (TA199).
The void has a Period End Date re-run Time Accrual Update
after the Last Period End Date on (TA170) to include this transaction.
Employee Plan Inquiry (TA60.1)
but before the “temporary run date”
of Time Accrual Update (TA170)
The void has a reconciliation date do nothing. The next time the
after the Last Period End Date on employee has a system payment
Employee Plan Inquiry (TA60.1) and you run Time Accrual Update
and the Payroll and Time Accrual (TA170), TA170 picks up the
cycles are closed transactions automatically unless
Time Accrual Close (TA199) has
been run and the cycle closed

IMPORTANT When Time Accrual is manually adjusted, you must always

update Plan Adjustments (TA70.1), Time Accrual Update (TA170), and
Time Accrual Close (TA199).

Interpreting Warning Messages

Users receive one of three application messages regarding Time Accrual
when either voiding payments or entering payroll adjustments in the Payroll:

530 Chapter 34 Manual Processes: Voids Payroll User Guide

 Message Meaning
Change Complete, TA cycle open; The date of the void or adjustment
re-run TA170 is greater than the Last Period End
Date on Employee Plan Inquiry
(TA60.1), the time accrual cycle is
still open and Time Accrual Update
(TA170) was run. You need to re-run
TA170.
Change Complete - Time Accrual The date of the void or adjustment is
Cycle Closed less than the Last Period End Date
on Employee Plan Inquiry (TA60.1).
You must manually adjust eligible
balances in time accrual on Plan
Adjustments (TA70.1) as a result
of the void or adjustment made in
Payroll.
Change Complete The date of the void or adjustment
is greater than the Last Period End
Date on Employee Plan Inquiry
(TA60.1), and the time accrual cycle
has not been run for that time frame.
Include the adjustment in the next
run of TA170.

Options for Inquiring on Balances

The following reports can be used in place of Access Employee Plan Inquiry
(TA 60.1) to access time accrual information:
• Plan Balance Inquiry (TA65.1)
• Yearly Activity Inquiry (TA 65.2)
• Employee Transaction Inquiry (TA65.3)

Voiding a Payment
This procedure voids a payment that was previously created in the Payroll.
Once a void is entered using this program, payroll history will be updated the
next time Payroll Close (PR197) is run.
If the time accrual cycle has been closed for the date of the adjustment, an
adjustment is necessary in time accrual on Plan Adjustments (TA71.1).

Payroll User Guide Chapter 34 Manual Processes: Voids 531

 Need More Details? Check out the following concepts:
• "What Happens when I Void a Payment?" on page 526
• "When should I void a Payment?" on page 526
• "When will a Void affect Time Accrual?" on page 527

STEPS To void payments

NOTE The date in the 1. Access Bank Account Reconciliation (PR85.1). For more information, see
Reconciliation Date Þeld "Reconciling Payments Manually" on page 559.
determines the payroll
quarter in which the void 2. Select the Void line action next to the payment you want to void.
appears. 3. Choose Change to change the form.
– or –
For more information, see "Options for Voiding Payments" on page 532.
4. Run Payroll Register (PR141) to create a register to use when you
balance payroll.

IMPORTANT After you run PR197 to update the void in history, you
cannot reopen the payment.

5. To update history Þles for voided payments, Payroll Close (PR197). If

you do not run PR197 to close voided payments, the voided payments
are updated when you run PR197 for the next payroll cycle. For more
information, see "Creating the Payroll Register" on page 483.

Options for Voiding Payments

The following options are available for voiding payments.

532 Chapter 34 Manual Processes: Voids Payroll User Guide

 If you Then
Voided a payment in error and did select the Open line action next
not run the Payroll Close (PR197), to the payment voided in error to
reopen the payment.
Choose Change to change the form.
After you run Payroll Close (PR197)
to update a void in history, you
cannot reopen the payment.
Selected Yes in the Create do nothing. The Payroll creates
Distributions Þeld on the Payroll form general ledger distributions based
tab on Company (HR00.1) or on the on distribution history.
Options form tab on Process Level
(HR01.1).
Selected No in the Create do nothing. The Payroll creates
Distributions Þeld on the Company reversing general ledger distributions
(HR00.1) or Process Level (HR01.1) based on the current distribution
record, or if payroll history is purged information for the employee.
If the employee records exist on
Payroll Distribution (PR23.1), the
Payroll creates pay and deduction
override distributions.
Ran PR85.1, and want to audit access Bank Account Totals
account balances (PR85.2), a subform of Bank
Account Reconciliation (PR85.1), by
selecting the Totals special action.
PR85.2 displays payment totals
for the account and parameters
deÞned. You can select other
account payment totals to view, or
you can display totals for a speciÞc
date range, payment type, or both.

Related Reports and Inquiries

To Use
List distribution entries for the current Distribution Edit (PR150)
payroll cycle
List earnings and deductions and an Payroll Register (PR141)
optional garnishment audit report for
all payments that were not closed
through Payroll Close (PR197)
List payments issued in the current Consolidated Payroll Register
payroll cycle (PR142)

Payroll User Guide Chapter 34 Manual Processes: Voids 533

Voiding a Direct Deposit Receipt
This procedure voids direct deposit payroll receipts. In the United States,
Direct Deposit is sometimes referred to as an Automatic Clearning House
(ACH) deposit. In the United Kingdom, Direct Deposit is sometimes referred
to as a Bankers Automated Clearing Services (BACS) deposit. The Payroll
reconciles direct deposit receipts when you close a payroll cycle.

Need More Details? Check out the following concepts:

• "What Happens when I Void a Payment?" on page 526
• "When should I void a Payment?" on page 526
• "When will a Void affect Time Accrual?" on page 527

STEPS To void direct deposit receipts

NOTE The Payroll 1. Access Bank Account Reconciliation (PR85.1). For more information, see
reconciles Direct "Reconciling Payments Manually" on page 559.
Deposit receipts when
you close a payroll 2. Select the Open line action next to the Direct Deposit receipt you want
cycle. to void.
3. Choose the Change form action to open the receipt.
4. Select the Void line action next to the Direct Deposit receipt to void.
5. Choose the Change form action to void the receipt.
6. Run Payroll Register (PR141) to create a register to use when you
balance payroll.
7. To update history Þles for voided payments, run Payroll Close (PR197). If
you do not run PR197 to close voided payments, the voided payments
are updated when you run PR197 for the next payroll cycle. For more
information, see "Creating the Payroll Register" on page 483.

534 Chapter 34 Manual Processes: Voids Payroll User Guide

Voiding a Partial Payment
Partial payments consist of payments which are part direct deposit and part
paper check. A partial payment void is complete when either the direct
deposit or check portion of the payment is voided.

Need More Details? Check out the following concepts:

• "What Happens when I Void a Payment?" on page 526
• "When should I void a Payment?" on page 526
• "When will a Void affect Time Accrual?" on page 527

STEPS To void a partial payment

1. Access Bank Account Reconciliation (PR85.1). For more information, see
"Reconciling Payments Manually" on page 559.
2. Select P in the Type Þeld.
3. Select the Change form action and the Void line action next to the
payment you want to void.
4. Select Yes or No on the Void ACH Portion of the Partial Payment Þeld of
Void Partial ACH (PR85.3).

IMPORTANT If you Select Yes on the Void ACH Portion, select the
offsetting general ledger account for the cash account. If the payment is
only the ACH portion, select the offsetting general ledger account for the
cash account in Void Partial ACH (PR85.4).

5. Run Payroll Register (PR141) to create a register to use in balancing

payroll.
6. To update history Þles for voided payments, run Payroll Close (PR197). If
you do not run PR197 to close voided payments, the voided payments
are updated when you run PR197 for the next payroll cycle. For more
information, see "Creating the Payroll Register" on page 483.

Adjusting Attendance History

Whether the Payroll creates attendance history or you enter it manually,
you must manually adjust for voids and adjustments. The Payroll does not
automatically delete attendance history when you void a payment in Bank
Account Reconciliation (PR85.1). If you create manual payments in Manual
Payment (PR80.1) or make adjustments to payroll in Adjustment (PR82.1)
that affect attendance history, use Attendance History (TM70.1) to adjust
attendance history.

Payroll User Guide Chapter 34 Manual Processes: Voids 535

 Need More Details? Check out the following concepts:
• "What Happens when I Void a Payment?" on page 526

STEPS To adjust attendance history

1. Access Attendance History (TM70.1). For more information, see
"Adjusting Time and Attendance" on page 480.
2. Delete attendance history created by a voided payment.
– or –
Create negative attendance history as an offset.
3. Choose the Change form action to add the changes.

Related Reports and Inquiries

To Use
Inquire on attendance history of Employee Attendance Date Inquiry
a speciÞc employee and display (TM50.1)
data in ascending date order by
attendance codes
Inquire on the attendance history Employee Attendance Code Inquiry
of a speciÞc employee and display (TM51.1)
data in attendance code order by
ascending date
Inquire on employee attendance Attendance Date Inquiry (TM52.1)
history for all employees in
a company, process level, or
department and display data in
ascending date order by attendance
code, and employee number
Inquire on employee attendance Attendance Code Inquiry (TM53.1)
history for all employees in
a company, process level, or
department and display data in
attendance code order by ascending
date and employee number
Inquire on employee attendance Attendance Class Inquiry (TM54.1)
history for attendance codes in an
attendance class display data in
ascending date order by employee
number

536 Chapter 34 Manual Processes: Voids Payroll User Guide

 To Use
Inquire on attendance history for Employee Date Calendar (TM60.1)
a speciÞc employee by year and
attendance code or attendance class
Select the Total form action to open
the Annual Totals subform that
displays hour and point totals for the
year and attendance code or class
entered.
Inquire on attendance history for Employee Days Calendar (TM61.1)
a speciÞc employee by year and
attendance code or attendance class
Select the Total form action to
access the Annual Totals subform
that displays hour and point totals
for the year and attendance code or
class entered.
Inquire on all attendance history. Attendance History (TM70.1)
The Type Þeld indicates whether
the attendance record was created
manually or updated by the Payroll

Payroll User Guide Chapter 34 Manual Processes: Voids 537

538 Chapter 34 Manual Processes: Voids Payroll User Guide
Chapter 35

Manual Processes: Payment Modeling

This chapter covers how to model payments within the Lawson Payroll
application.

Payroll User Guide Chapter 35 Manual Processes: 539

Payment Modeling
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 542 • "What is Payment Modeling?" on page 540
• "When Do I Use Payment Modeling?" on page 541

What is Payment Modeling?

You can use the payment modeling process to perform calculations and
create models of employee taxes and other deductions. Examples of these
calculations include determining how a change in taxes or other deductions
affect an employee’s net pay and performing a gross-to-net calculation.
Four payment models are discussed in this chapter. They include:
• Creating a gross-to-net payment model for an existing employee
• Creating a gross-to-net payment model for a hypothetical employee
• Creating a gross-up (net-to-gross) payment model for an existing
employee
• Creating a gross-up (net-to-gross) payment model for a hypothetical
employee
Gross-up payment modeling is commonly used to calculate an award or
bonus as the take-home amount, rather than paying the employee the
after-tax amount.
Gross-to-net payment modeling is used to calculate net pay after changes
in deductions or gross pay.

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When Do I Use Payment Modeling?
Payments can be modeled to perform a gross-up (net-to-gross) calculation
or a gross-to-net payment calculation. You can perform these calculations
for an existing employee or choose to model a payment without specifying
an employee.
When you inquire on a speciÞc employee, values deÞned on the employee
record default in the appropriate Þelds. You can enter a deduction cycle and a
payment date to retrieve actual deduction information. You can override any
Þeld on the form to process “What If” scenarios for an employee.
If you do not select an employee, you must enter the desired deduction
amounts or percentages by deduction type, and select the applicable taxes to
include.
The taxation options for payment modeling include the option to change:
• Number of exemptions
• Marital status
• The state for which taxes are paid
• County and city tax authorities

IMPORTANT Payment modeling does not automatically update payroll

data Þles. After you perform payment modeling, you can transfer the
information to a manual payment.

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Procedures in this Chapter
The following procedure explains how to create a payment model.
• "Creating a Gross-to-Net Payment Model for an Existing Employee"
on page 542
• "Creating a Gross-to-Net Payment Model for a Hypothetical
Employee" on page 544
• "Creating a Gross-Up Payment Model for an Existing Employee" on
page 545
• "Creating a Gross-Up Payment Model for a Hypothetical Employee"
on page 548
• "Calculating a Gross Wage Amount from a Net Pay Amount" on page
549

Creating a Gross-to-Net Payment Model for an Existing

Employee
Change an existing employee’s pay rates, taxes, and beneÞts to create a
payment model. You select the gross amount and apply deductions, which
Payroll calculates to a lower net amount.

Need More Details? Check out the following concepts:

• "What is Payment Modeling?" on page 540
• "When Do I Use Payment Modeling?" on page 541

STEPS To create a gross-to-net payment model for an existing

employee
1. Access Payment Modeling (PR89.1).
2. Select the Company and Employee in the appropriate Þelds.
TIP In some cases 3. Choose inquire to display the current default values for the employee.
you might choose not The default values are deÞned through Employee (HR11.1).
to inquire and display
the current default 4. Select the employee tab. Consider the following Þelds to modify the
values for a speciÞc default values for the payment model calculation.
employee. If many of
the default values must Employee Select an employee.
be changed, you can
type in the new values Payment Date Type the date in the Þeld. All taxes and
rather than overriding all deductions are based on this date. If the date is
of the displayed default
values. left blank, Payroll date defaults.
Hours Type the number of hours.
Gross Amount Type the gross amount.
– or –
Let Payroll calculate the gross amount in the Þeld.
Tax Select the value for how you want taxes
calculated.

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 Net Amount Leave blank. Payroll will calculate the net based
on the gross and deductions.
Pay Frequency Select the pay frequency.
– or –
Leave the Þeld blank for the frequency to default
from Employee (HR11.1).
Salary Class Select the salary class.
– or –
Leave the Þeld blank for the salary class to
default from Employee (HR11.1).
Pay Rate If the employee is hourly, enter the number of
hours and leave the Pay Rate Þeld blank to allow
Payroll to compute the pay rate.
– or –
Type the pay rate and leave the hours Þeld blank
to allow Payroll to compute the hours.
Schedule, Grade, These will default for an existing employee.
Step
NOTE :If an employee is 5. On the Taxes form tab, deÞne the tax parameters.
taxed in multiple states,
Payroll uses the resident – or –
state when calculating a
payment model. Let Payroll default to the current employee’s tax elections. (exemptions,
marital status, tax state) Use the Override Þeld to indicate whether the
change is a replacement, addition, or exemption, and whether the value is
an amount or a percentage. The Amount or Percent Þeld holds the value.
6. On the Deductions form tab, deÞne the deductions.
– or –
Let Payroll default by selecting a deduction cycle. If you do not deÞne a
deduction cycle, you can select deductions by typing X in the appropriate
Þelds. For non-tax deductions, enter A (Amount) or P (Percent), and enter
the dollar amount of the deduction.
7. Choose the Calculate form action to perform the calculations and display
the result on the Result form tab.

Options for Modeling Gross-to-Net Payments for

Existing Employees
Additional options for modeling gross-to-net payments for existing employees
include:

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 If Then
The employee is salaried type a value in the Gross Amount
Þeld. The value bases the payment
model on a predetermined gross
amount of wages.
If you do not type a value in
the Gross Amount Þeld, Payroll
calculates a gross amount on the
basis of the speciÞed pay frequency.
The employee is hourly leave the Gross Amount Þeld blank
and type the number of hours in the
Hours Þeld.
Payroll multiplies the hours by the
pay rate and displays the calculated
value in the Gross amount Þeld.

Related Reports and Inquiries

To Use
Audit deduction changes and Deduction Audit Report (PR280)
produce a list of log Þle records
of changes made to Employee
Deductions (PR14)

Creating a Gross-to-Net Payment Model for a Hypothetical

Employee
Create a payment model for a hypothetical employee. For a Gross-to-Net
payment model, you will select a gross amount and apply deductions. Payroll
calculates the gross amount to a lower net amount.

Need More Details? Check out the following concepts:

• "What is Payment Modeling?" on page 540
• "When Do I Use Payment Modeling?" on page 541

STEPS To create a gross-to-net payment model for a hypothetical

employee
1. Access Payment Modeling (PR89.1).
2. Select the company in the Company Þeld.
3. Select the Employee tab. Consider the following Þelds.

Employee Leave the employee Þeld blank when modeling

for a hypothetical employee.

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 Payment Date Type the date. All taxes and deductions are
based on this date. If the date is left blank,
Payroll date defaults.
Hours Type the number of hours.
Gross Amount Type the gross amount.
Tax Select the value for how you want taxes
calculated.
Net Amount Leave this Þeld blank. Payroll calculates the net
based on the gross and deductions.
Pay Frequency Select the frequency of pay.
Pay Rate If the employee is hourly, enter the number of
hours and leave the Pay Rate Þeld blank to allow
Payroll to compute the pay rate.
– or –
Type the pay rate and leave the hours Þeld blank
to allow Payroll to compute the hours.
Schedule, Grade, Select a schedule, grade and step to determine
Step a pay rate.
NOTE If an employee is 4. On the Taxes form tab, deÞne the federal and state tax requirements.
taxed in multiple states,
Payroll uses the resident 5. On the Deductions form tab, deÞne the deductions. Select deductions
state in the calculation. by typing X in the appropriate Þelds. For non-tax deductions, enter A
(Amount) or P (Percent), and enter the dollar amount of the deduction.
6. Choose the Calculate form action to perform the calculations and display
the result on the Result form tab.

Creating a Gross-Up Payment Model for an Existing Employee

Create a payment model by changing pay rates, taxes and beneÞts. Payroll
performs net-to-gross calculations based on the value deÞned in the Net
Amount Þeld on Payment Modeling (PR89.1).

Need More Details? Check out the following concepts:

• "What is Payment Modeling?" on page 540
• "When Do I Use Payment Modeling?" on page 541

STEPS To create a gross-up payment model for an existing

employee
1. Access Payment Modeling (PR89.1).
2. Select the Company and Employee in the appropriate Þelds.

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TIP In some cases 3. Choose the Inquire form action to display the current default values for the
you might choose not employee. The default values are deÞned through Employee (HR11.1).
to inquire and display
the current default – or –
values for a speciÞc
employee. If many of Choose not to Inquire if you prefer to enter speciÞc variables on the
the default values must following steps.
be changed, you can
type in the new values 4. Choose the employee tab. Consider the following Þelds when changing
rather than override all the default values for the payment model calculation.
of the displayed default
values. Employee Select an employee.
Payment Date Type the date in the Þeld. All taxes and
deductions are based on this date. If the date is
left blank, the system date defaults.
Hours Type the number of hours.
Gross Amount Leave blank.
Tax Select the value for how you want taxes
calculated.
Net Amount Type the net amount to calculate a higher gross
amount.
Pay Frequency Select the frequency of pay.
– or –
Leave the Þeld blank for the frequency to default
from Employee (HR11.1).
Salary Class Select the salary class.
– or –
Leave the Þeld blank for the salary class to
default from Employee (HR11.1).
Pay Rate If the employee is hourly, enter the number of
hours and leave the Pay Rate Þeld blank to allow
Payroll to compute the pay rate.
– or –
Type the pay rate and leave the hours Þeld blank
to allow Payroll to compute the hours.
Schedule, Grade, These will default for an existing employee.
Step
NOTE If an employee is 5. On the Taxes form tab, deÞne the tax parameters.
taxed in multiple states,
Payroll uses the resident – or –
state in the calculation.
Let Payroll default to the employee’s tax elections (exemptions, marital
status, tax state, etc.) Override the federal tax calculation with an entry
in the Override, and Amount or Percent Þelds. On the taxes form tab,
deÞne the tax parameters.
6. On the Deductions form tab, deÞne the deductions.
– or –

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 Let Payroll default by selecting a deduction cycle. If you do not deÞne a
deduction cycle, you can select deductions by typing X in the appropriate
Þelds. For non-tax deductions, enter A (Amount) or P (Percent), and enter
the dollar amount of the deduction.
7. Choose the Calculate form action to perform the calculations and display
the result on the Result form tab.

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Creating a Gross-Up Payment Model for a Hypothetical
Employee
Payroll will calculate the gross pay for a hypothetical employee based on the
net pay designated in payment modeling.

Need More Details? Check out the following concepts:

• "What is Payment Modeling?" on page 540
• "When Do I Use Payment Modeling?" on page 541

STEPS To create a gross-up payment for a hypothetical

employee
1. Access Payment Modeling (PR89.1).
2. Select the company in the Company Þeld.
3. Choose the employee tab. Consider the following Þelds.

Employee Leave the employee Þeld blank when modeling

for a hypothetical employee.
Payment Date Type the date. All taxes and deductions are
based on this date. If the date is left blank,
Payroll date defaults.
Hours Type the number of hours.
Gross Amount Leave this Þeld blank.
Tax Select the value for how you want taxes
calculated.
Net Amount Type the net amount to calculate a higher gross
amount.
Pay Frequency Select the frequency of pay.
Pay Rate If the employee is hourly, enter the number of
hours and leave the Pay Rate Þeld blank to allow
Payroll to compute the pay rate.
– or –
Type the pay rate and leave the hours Þeld blank
to allow Payroll to compute the hours.
Schedule, Grade, Select a schedule, grade and step to determine
Step a pay rate.
NOTE If an employee is 4. On the Taxes form tab, deÞne the federal and state tax requirements.
taxed in multiple states,
Payroll uses the resident 5. On the Deductions form tab, deÞne the deductions. Select deductions
state in the calculation. by typing X in the appropriate Þelds. For non-tax deductions, enter A
(Amount) or P (Percent), and enter the dollar amount of the deduction.
6. Choose the Calculate form action to perform the calculations and display
the result on the Result form tab.

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Calculating a Gross Wage Amount from a Net Pay Amount
Use the Gross Up Calculation (PR189) to calculate a gross wage amount
from a net pay amount. PA189 creates a time record and a payment with
deductions.
NOTE This program is Processing Considerations
only available for US
employees. • If you select a percent pre-tax deduction within a deduction cycle, an
amount will not be calculated because there is no wage amount available.
• Pre-tax deductions are processed before the interface to BSI for the
Gross Up calculation.
• One Time deductions are not processed by the Gross Up Calculation.
• You can process gross up payments as a unique payroll cycle, or as a
part of a regular payroll cycle.

NOTE You cannot process gross up payments in Manual Payment (PR80).

The following process ßow shows gross up paymnents processed as a unique

payroll cycle.
Figure 40. Procedure relationship: Gross Up payments in unique payroll cycle

1
Gross-Up
Calculation -
Report Only mode
PR189

2
Gross-Up
Calculation -
Update mode
PR189

3
- Conditional -
Make changes to
time record
PR36 or PR45

4
Print payments
PR160

5
Generate payroll
register
PR141

6
Close payroll
PR197

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 The following process ßow shows gross up paymnents processed as part of a
regular payroll cycle.

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 NOTE If you process gross up payments during a regular payroll cycle, you
must deÞne a job name that is different from PR160 job for regular payments.
You must also deÞne unique names for Tape, Receipt, and Checkon the File
Name form tab in PR160.

Figure 41. Procedure relationship: Gross Up payments within a regular payroll cycle

1
Gross-Up
Calculation -
Report Only mode
PR189

2
Gross-Up
Calculation -
Update mode
PR189

3
- Conditional -
Make changes to
time record
PR36 or PR45

4
Earnings and
deductions
calculation
PR140

5
Print payments
(Option 5 - Gross
Up Payments)
PR160

6
Print payments
(Option 1 - Normal
Run)
PR160

7
Generate payroll
register
PR141

8
Close payroll
PR197

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Payment Modeling
NOTE Gross up
payments will display
separately in PR140 and
PR141.

STEPS To calculate a gross wage amount from a net pay amount

1. Access Gross Up Calculation (PR189).
2. Choose the Main form tab. Consider the following Þelds.

Payment Date Type the payment date. The payment date prints
on payments when Payment Print (PR160) is run.
This date determines what deductions to process.
Deduction Cycle Select a deduction cycle. The deduction cycle
determines which deductions are taken for the
payroll cycle.
Report Only Select Yes to produce an edit report without
creating actual payment records.
If you select No, the report creates payment
records in addition to the edit report. You must
create payment records before you can run
Payment Print (PR160).
Garn Report Select the value indicating the order to list
Sequence garnishments.
This report is used to verify the calculation of the
garnishments processed in this payroll cycle.
Override Bank If you select a bank code, your selection overrides
Code the bank and cash accounts associated with the
Employee’s process level.

NOTE Must be a US bank code.

To complete a bank code override, you must also

select the override bank code in Payment Print
(PR160).

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 No Dir Dep, All If you select yes, the payroll produces only
System Payments system checks for employees regardless of
whether or not the employees are setup for direct
deposit on the employee master.

3. Choose the Selection form tab to run the report for an entire company,
a process level, department, user level, employee group or individual
employees. Other selection criteria include pay frequency, include/exclude
and status codes.
4. Choose the Time Record form tab to deÞne information for the time record
that PR189 creates.
5. Choose the Add form action to add the job.
6. Choose the Submit form action to Submit the form.

IMPORTANT You cannot delete a Gross Up payment/time record after it

is printed. You must void and close the payment.

Related Reports and Inquiries

To Use
List gross up records created Time Record Edit (PR135)

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554 Chapter 35 Manual Processes: Payment Payroll User Guide
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Chapter 36

Manual Processes: Bank Reconciliation

This chapter covers how to reconcile bank information within the Lawson
Payroll application.

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Reconciliation
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 557 • "Should I Reconcile Payments Automatically or Manually?" on page
556
• "What Happens When a Payment is Reconciled?" on page 556

Should I Reconcile Payments Automatically or Manually?

In Payroll, you can reconcile payments either automatically or manually.
Automatic reconciliation involves the use of an electronic Þle provided by
your bank to compare the checks that have been cleared by the bank to the
checks entered in Payroll.
Manual reconciliation lets you reconcile individual payments or a range
of payments. You can also void partial payments through the manual
reconciliation process.
Direct Deposit payments are automatically assigned a reconciled status when
you close the payroll cycle.

What Happens When a Payment is Reconciled?

During automatic reconciliation, Payroll compares payment Þles and the bank
Þles. Payment information is automatically updated with the reconciliation
date, type, and the status of the payment. If there is a discrepancy, the
payment is not reconciled. A listing will show the discrepancy.
Manual reconciliation lets you manually compare the payment Þles to the
bank statement. You can manually update the reconciliation date, type, and
status of the payment.

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Procedures in this Chapter
The following procedures explain how to reconcile payments.
• "Verifying the Bank Tape File" on page 557
• "Reconciling Payments Automatically" on page 558
• "Reconciling Payments Manually" on page 559
• "Running the Bank Reconciliation Report" on page 562

Verifying the Bank Tape File

When you run Bank Reconciliation Tape Processing (PR165) Payroll reads
information from an electronic bank Þle and compares it to the Employee
Payment Þle. Before reconciling payments automatically, you must verify that
the tape Þle is in the proper format.

Need More Details? Check out the following concepts:

• "Should I Reconcile Payments Automatically or Manually?" on
page 556
• "What Happens When a Payment is Reconciled?" on page 556

STOP Before you can verify the bank tape Þle, you must receive the bank
tape Þle from the bank.

STEPS To verify the bank tape Þle

For Bank Reconciliation Tape Processing (PR165) to read a tape Þle received
from the bank, you can verify the data in one of two ways.
1. Access the bank tape Þle.
2. Verify that the data adheres to the following Þle layout.

Field Name Type Size

BNK-ACCT-NBR Alpha 17
SERIAL-NBR Numeric 10
FILL Alpha 1
DATE-PAID Numeric 6 (mmddyy)
AMOUNT Numeric 12

– or –
3. Access the workdef environment form to view the Þle layout and choose
Enter, or Select the appropriate:
a. Product Line
b. System Code (PR)

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Reconciliation
 c. Program Code (PR165)
d. File Name (TAPE)
After completing these Þelds, the pre-deÞned layout will appear, and
you can verify that the bank tape layout is correct.
4. For either tape Þle veriÞcation option, if the bank’s tape Þle is not in the
correct format, re-format the data to meet the necessary layout.
– or –
Modify the Þle layout in Payroll to meet the bank’s format.

IMPORTANT Lawson recommends that you do not modify the Þle layout.

5. Once you have veriÞed the format of the tape Þle, name the tape Þle as
TPR165 and place the Þle in the following path:
For UNIX clients:
$LAWDIR/productline/work/TPR165/
– or –
For NT clients:
%LAWDIR%/productline/work/TPR165/
LAWDIR/productline/work/TPR165/

Reconciling Payments Automatically

The automatic reconciliation process updates Bank Account Reconciliation
(PR85.1) with the reconciliation date, type, and status, and produces a report
listing reconciled and unreconciled payments. You perform the update when
you run Bank Reconciliation Tape Processing (PR165), which compares the
Employee Payment Þle in Payroll to the bank tape Þle.
You can reconcile payments and void payments after closing the payments
through Payroll Close (PR197).

STOP Before reconciling payments automatically, verify the format of the

bank tape Þle. For more information, see "Verifying the Bank Tape File" on
page 557.

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 Need More Details? Check out the following concepts:
• "Should I Reconcile Payments Automatically or Manually?" on
page 556
• "What Happens When a Payment is Reconciled?" on page 556

STEPS To reconcile payments automatically

1. Access Bank Reconciliation Tape Processing (PR165).
2. With the Add form action, type the job name in the job Þeld.
– or –
With the Inquire form action, select a deÞned job. The jobs displayed
are for the active user.
TIP The job description 3. Type the description of the job in the Description Þeld.
helps you identify a
batch job by providing 4. Choose the Submit form action to submit the job.
additional information
about the job name.
Related Reports and Inquiries
To Use
Print a current reconciliation listing Bank Reconciliation (PR155)

Reconciling Payments Manually

Use the manual reconciliation process to manually reconcile and void
payments previously closed through Payroll Close (PR197). You can
reconcile individual payments or all payments within a speciÞed payment
range. Use Bank Reconciliation (PR85.1) to add interest, withdrawal, or
deposit transactions.

Need More Details? Check out the following concepts:

• "Should I Reconcile Payments Automatically or Manually?" on
page 556
• "What Happens When a Payment is Reconciled?" on page 556

STEPS To reconcile payments manually

1. Access Bank Account Reconciliation (PR85.1).
2. Complete the form. Consider the following Þelds.

Account Select the bank account on which the payment

you want to void or reconcile is drawn.
Date Type a date to display payments by a speciÞc
date.

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Reconciliation
 Type Select a payment type to display a speciÞc type
of payment.
When you leave this Þeld blank, all payment
types display.
Payment Type a payment number to deÞne a range of
payments to reconcile.
Reconciliation This Þeld is required when reconciling a range
Date of payments.
Position To Select the check number you wish to view.
FC Select R (Reconcile) to reconcile individual
payments. Other choices include Change,
Delete, Open, or Void.

NOTE To void a payment, select the line action

Void next to the appropriate payment. You can
type a date for the void, or allow Payroll date to
default. Payroll updates payroll history Þles and
reversing general ledger entries based on the
void date.

Payment Number On inquiry, the payment number displays.

Type a payment number to add an interest,
withdrawal, or adjustment type record.
Pmt Suf Type a sufÞx number to further identify an
interest, withdrawal, or adjustment type record.
Amount Type the cleared amount if a payment clears for
an amount different than originally issued.
Pmt Date The payment date displays. A date is required
when adding an interest, withdrawal, or
adjustment type record.
Recon Date When reconciling an individual payment, type a
reconciliation date for the payment.
A reconciliation date displays for payments
reconciled when you run Bank Reconciliation
Tape Processing (PR165).

3. Select the Totals form action to display bank account totals for a selected
date range and transaction type.
4. Select the Reconcile form action to reconcile a range of payments.

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NOTE If you do not run 5. Run Payroll Close (PR197) in the report mode to produce a listing of
Payroll Close (PR197) to distribution transactions and update history Þles for voided payments. If
speciÞcally close voided
payments, the voided data from the report mode is correct, run the PR197 in Update mode. For
payments are updated more information, see "Calculating Tip Credit Records (U.S. and CA)"
when you run PR 197 for on page 393.
the next payroll close.
IMPORTANT If you enter No in the Create Distributions Þeld on the
Company (HR00.1) or Process Level (HR01.1) record, or if payroll history
is purged, Payroll creates general ledger distributions based on current
distribution information.

Related Reports and Inquiries

To Use
Print a current reconciliation listing Bank Reconciliation (PR155)
List all payments issued for a speciÞc Payment Register (PR162)
date range

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Running the Bank Reconciliation Report
Run the Bank Reconciliation (PR155) to perform a periodic reconciliation.
Included in the report are the payment number, payment date, date cleared,
employee name and number, issued amount, and the cleared, voided or open
amount. The report provides totals by payment type.
Payments voided on Manual Payment Reservation (PR81.1) appear on this
report.

Need More Details? Check out the following concepts:

• "What Happens When a Payment is Reconciled?" on page 556

STEPS To run the bank reconciliation report

1. Access Bank Reconciliation (PR155).
2. With the Add form action, type the name of the job.
– or –
With the Inquire form action, select a previously deÞned job.
3. Type a description of the job in the Job Description Þeld.
NOTE The report 4. Choose the Report Selection. Select from the following options.
includes all payments
reconciled since the Choose To
last run of Bank
Reconciliation (PR155) Report print a current reconciliation listing.
using the Update option.
– or –
list open, reconciled, and voided
payments for a speciÞc date range.
Update update reconciled payments and
remove the payments from the
report.
History create a report of all bank account
activity for a speciÞc date range.
– or –
access payments already updated.

Related Reports and Inquiries

To Use
List all payments issued for a speciÞc Payment Register (PR162))
date range.

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Chapter 37

Manual Processes: Purge Data

This chapter covers how to purge data within the Lawson Payroll.

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Data
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 566 • "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

What is a Data Purge?

A data purge is the process of permanently removing data from the Lawson
Payroll.
Some examples of when you might want to purge data are:
• After you complete your installation and testing to remove any “garbage”
data
• After you create a backup of historical data
For example, the company wants to have immediate access (through drill
around, queries, running reports, and so on) to the current year’s data plus
two previous years of data. You archive the data for the years previous to
the years you want to access and then purge this data from the production
database.
CAUTION Purging
employee records
permanently removes the
employee from the Lawson
Payroll. If you mistakenly
purge an employee, you
can re-enter the employee,
but you CANNOT retrieve
history on the employee.
Purged payroll history
must be reloaded using
conversion program Payroll
History Load CSV (PR560)
or UK Payroll History Load
CSV (UK56).

What is Included in Payroll History?

Controls in the Payroll prevent payroll history for a given year from being
purged until July of the following year. While you can purge payments,
comments, and distributions at anytime, Lawson recommends that you retain
at least one year of history online.

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 When you purge payroll history the following items that meet the deÞned
parameters are purged:
• Pay records and related deduction
• Employee direct deposit distribution
• Payroll distribution records
If you are an Time Accrual application user, please note that this option
deletes pay records which may affect time accrual plans that have a waiting
period before plan entry.
When you purge history, you can purge the records in any of the Human
Resources applications. However, if you purge an employee, you must
purge all records tied to the employee before you can completely purge the
employee.

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Data
Procedures in this Chapter
The following procedures explain how to purge data in the Payroll.
"Purging Payroll History" on page Purge payroll history based on
566 chosen parameters.
"Purging Employee Deduction Purge employee deduction history
History" on page 568 from Payroll.
"Purging Tip Pay Records" on page Purge tip pay records for prior years.
571
"Purging Time and Attendance Purge Time and Attendance records
Records" on page 571 for an entire company or for
employee individual history.
"Purging Time Accrual History" on Purge time accrual history,
page 573 transactions, and employees from
time accrual plans.
"Purging Transactions and Purge transactions and employees
Employees from Time Accrual from time accrual plans.
Plans" on page 574
"Purging TaxLocator Records" on Purge tax locator records.
page 576
"Purging Employee Records" on Purge employee history and pay
page 577 history.

Purging Payroll History

Use History Purge (PR300) to selectively purge payroll history based on the
report parameters you choose. You can purge comments during the current
year; however, Lawson recommends that you maintain at least three months
distribution history to allow the Payroll to automatically create reversing
general ledger entries for voided payments.

STOP You cannot purge payroll history until six months into the following
payroll year. You can purge payroll distributions at anytime. However, if you
have purged payroll distributions, General Ledger distributions created by a
void will use the normal defaulting rather than reversing the original entries.

566 Chapter 37 Manual Processes: Purge Data Payroll User Guide

 Need More Details? Check out the following concepts:
• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge payroll history

NOTE Perform edits 1. Access History Purge (PR300).
to limit purging of
transactions to records
with a date of at least 12
months previous to the
Payroll date.
NOTE You can purge 2. Complete the form. Consider the following Þelds.
time accrual history
through a speciÞed date Job Name With the Add form action, type the name of the
by using History Purge
(PR300), which will job.
consolidate all the time
accrual information into With the Inquire form action, you can select a
one line per employee previously deÞned job. The jobs displayed are
and create an “historical” for the active user.
transaction which is a
summary of all the Job Description Type a description of the job.
purged detail.
The job description helps you identify a batch
job by providing additional information about the
job name.
Company Select the company for which you want to purge
records.
Payroll History To purge payroll history and create a ßat Þle of
purged records, select C (Delete/No Copy).
Cut-off Year Type a cut-off year to purge all payroll history up
to and including the year you enter.
History Files Select the value that determining if the Payroll
purges information in the history Þles.
Employee Group Select an employee group to purge only history
for a speciÞc employee group.
For example, you may want to purge history for
terminated employees only.
Payments, ACH Select the value determining if the Payroll purges
payment and direct deposit records.
You can purge all reconciled and voided
payments regardless of date.
Bank Account Select a bank account number.
Payment Type a payment number to deÞne the beginning
of a range of reconciled and voided payments
to purge.

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Data
 ACH Receipts Type a direct deposit receipt number to deÞne the
beginning range of reconciled and voided direct
deposit receipts to purge.
Comments To delete employee comments, select D
(Delete/No Copy).
To delete employee comments and create a ßat
Þle of the purged records, select C (Delete/Copy).
Cut-off Date Type a cut-off date to purge employee comments
dated on or before the entered date.
Distributions To purge payroll distribution records, select D
(Delete/No Copy).
To purge payroll distribution records and create a
ßat Þle of purged records, select C (Delete/Copy).
Cut-off Date Type a cut-off date to purge all distribution
records dated on or before the date entered.
Reconciled Select the value determining if only distribution
Payments records associated with reconciled payments are
purged.
To purge payment history, the reconciled payment
must be updated using Bank Reconciliation
(PR155).
Clearing Entries Select the value determining if only distribution
records associated with clearing entries are
purged.

3. Choose the Submit form action to submit the purge.

IMPORTANT Lawson recommends saving the payroll history to a

separate media such as tape, before purging. To purge payment history,
you must update the payment using Bank Reconciliation (PR155).

Purging Employee Deduction History

You can delete employee deduction history records from the history log
Þle when you run the Deduction Audit Report (PR280) with U (Update and
Report) in the Update Þeld.

568 Chapter 37 Manual Processes: Purge Data Payroll User Guide

 Need More Details? Check out the following concepts:
• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge employee deduction history

1. Access Deduction Audit Report (PR280).
2. Complete the form. Consider the following Þelds.

Job Name With the Add form action, type the name of the
job.
With the Inquire form action, you can select a
previously deÞned job. The jobs displayed are
for the active user.
Job Description Type a description of the job.
The job description helps you identify a batch
job by providing additional information about the
job name.
Company Select the company for which you want to run a
deduction audit report.
Date Type a date to deÞne the beginning of a date
range.
If you deÞne a date range, the report includes
only deduction log records within the deÞned
date range.
Employee Select or type an employee number to deÞne the
beginning of a range of employees to be included
in the report.
Employee Select an employee sequence to override the
Sequence default print order deÞned for the company.

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Data
 Update Select R (Report) to produce a report of log Þle
records of changes made to employee deduction
records since the report was last run with U
(Update and Report).
If you select R (Report), log Þle records of the
deduction changes are not deleted.
– or –
Select U (Update and Report) to produce a report
of log Þle records of changes made to employee
deduction records since the report was last run
with U (Update and Report). If you select U
(Update and Report), the application remembers
the last date and time of change.
If you select U (Update and Report), the system
deletes log Þle records of the changes.

3. Choose the Submit form action to submit the purge.

570 Chapter 37 Manual Processes: Purge Data Payroll User Guide

Purging Tip Pay Records
You cannot purge tip records for the current and prior payroll year.

Need More Details? Check out the following concepts:

• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge tip pay records

1. Access Tips Purge (TP105) .
2. Complete the form. Consider the following Þelds.

Job Name With the Add form action, type the name of the
job.
With the Inquire form action, you can select a
previously deÞned job. The jobs displayed are
for the active user.
Job Description Type a description of the job.
The job description helps you identify a batch
job by providing additional information about the
job name.
Company Select the company from which you want to
purge tip allocation records.
The Payroll does not let you purge records from
the current or prior payroll year.
Begin Date Type the beginning date of the date range for
which you want to purge tip records.
End Date Type the ending date of the date range for which
you want to purge tip records.

3. Choose the Submit form action to submit the purge.

Purging Time and Attendance Records

Use Attendance History Purge to delete attendance history for the company
as a whole or for an employee’s individual history.

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Data
 Need More Details? Check out the following concepts:
• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge time and attendance records

1. AccessAttendance History Purge (TM300) .
2. Complete the form. Consider the following Þelds.

Job Name With the Add form action, type the name of the
job.
With the Inquire form action, you can select a
previously deÞned job. The jobs displayed are
for the active user.
Job Description Type a description of the job.
The job description helps you identify a batch
job by providing additional information about the
job name.
Company Select a company.
Employee To purge attendance history for speciÞc
employees, select up to Þve employees.
If you leave this Þeld blank, the system purges
attendance history for all employees.
Thru Date To purge attendance history through a speciÞc
date, type the date through which you want
attendance history purged.
Attendance Code To purge only attendance history associated with
a speciÞc attendance code, select a code.
If you leave this Þeld blank, all attendance codes
are affected.
Create CSV Select the value if you want to create a
comma-separated value (csv) Þle with purged
information.
The information can be reloaded with Attendance
History Conversion (TM570).

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 Update Select the value that indicating whether or not
you want to perform the update.
If you select Yes, the update is performed.
– or –
If you select No, the Payroll creates a report that
listing pending changes.

IMPORTANT Lawson recommends selecting Report Only in the Update

Þeld to view the changes before selecting Update.

3. Choose the Submit form action to submit the purge.

Purging Time Accrual History

In the Time Accrual application, you can purge time accrual history as well
as purge transactions and employees from plans through a speciÞed date.
Time Accrual Purge (TA300) creates an “historical” transaction which is a
summary of all the detail purged.
When you purge the employee Time Accrual transaction records, the Payroll
combines all employee records into one record per employee for each plan.
The application performs edits to limit purging of transaction to the records
with a date of at least 12 months previous to the system date.

Need More Details? Check out the following concepts:

• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge time accrual history

1. Access Time Accrual Purge (TA300).
2. Complete the form. Consider the following Þelds.

Job Name With the Add form action, type the name of the
job.
With the Inquire form action, you can select a
previously deÞned job. The jobs displayed are
for the active user.
Job Description Type a description of the job.
The job description helps you identify a batch
job by providing additional information about the
job name.
Company Select a company.

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Data
 Thru Date Type the date through which time accrual
transaction history records are to be purged.

3. Choose the Submit form action to submit the purge.

Related Reports and Inquiries

To Use
View the transactions created Employee Transaction Inquiry
through Time Accrual Purge (TA300) (TA65.3)
as a type B transaction.

Purging Transactions and Employees from Time Accrual

Plans
Run Employee Plan Purge (TA310) to end employee enrollment in time
accrual plans and to delete the employee transactions. You can purge
an employee’s plan transactions as well as his or her enrollment in the
plan. Employee Plan Purge (TA310) deletes the employee’s plan master
established in Employee Plan (TA60.1).

Need More Details? Check out the following concepts:

• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge transactions and employees from Time Accrual

plans
NOTE This form is 1. Access Employee Plan Purge (TA310).
typically used when
testing a new time 2. Complete the form. Consider the following Þelds.
accrual plan.
Job Name With the Add form action, type the name of the
job.
With the Inquire form action, you can select a
previously deÞned job. The jobs displayed are
for the active user.
Job Description Type a description of the job.
The job description helps you identify a batch
job by providing additional information about the
job name.
Company Select a company.
Plan Select the time accrual plan from which you want
employee transactions purged.

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 Report Option Select the value that indicates whether All
Employees (1), or only SpeciÞed Employees (2)
are to be purged.
If you select All Employees (1), all employee
transactions are deleted from the plans that you
select.
If you select SpeciÞed Employees (2), the Payroll
deletes transactions for employees selected in
the Employee Þelds.
Employees You can select up to 20 employees to purge from
the selected time accrual plan.
If you select 2 (SpeciÞed Employees) in the
Report Option Þeld, select at least one employee.
Employee Plan Enter a value for the employee plan end date.
End Date
Update Select Report Only to produce a report of the
employee information that will be purged when
you run the report using the Update option.

NOTE Lawson recommends Þrst running the

report with the Report Only option, to review the
information that will be purged.

Review the information and adjust the parameters

to purge only the information you want purged.
After you review the report run in Report Only,
Re-run Employee Plan Purge (TA310) with
Update selected in the Update Þeld.
When you select Update, the Payroll purges the
employee and associated transactions from the
selected plan, and lists the information that was
purged.
Employee Select the employee sequence in which you want
Sequence the report to print.
If you leave this Þeld blank, employees list in
the order deÞned in Company (HR00.1) for the
selected company.

WARNING Lawson recommends Þrst running the report with

Report Only in the Update Þeld in order to review the information
you want purged. Once you run the report with Update in the
Update Þeld, you can no longer access the purged information.

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Data
Purging TaxLocator Records
You can use TaxLocator Deduction Purge (PR313) to purge inactive taxlocator
records. The inactive records you purge start from the beginning of the
selected year through prior years.

Need More Details? Check out the following concepts:

• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge taxlocator records

1. Access TaxLocator Deduction Purge (PR313).
2. Complete the form. Consider the following Þelds.

Job Name With the Add form action, type the name of the
job.
With the Inquire form action, you can select a
previously deÞned job. The jobs displayed are
for the active user.
Job Description Type a description of the job.
The job description helps you identify a batch
job by providing additional information about the
job name.
Company Select the company for which you want to run
the report.
Process Level Select a process level to include only employees
in the selected process level in the listing.
Location Choose a location.
Year Contains the Þscal year for the data stored on
this record.
The year entered in this Þeld determines the
ending year for purging records. Records dated
with this year and prior years are deleted.
Employee Select an employee sequence to override the
Sequence default print order deÞned for the company.

3. Choose the Submit form action to submit the purge.

576 Chapter 37 Manual Processes: Purge Data Payroll User Guide

Purging Employee Records
This procedure covers how to delete both pay history and employee history.
To purge employee records you must purge all of the following:
• Employee pay history
• Time Accrual history
• Open manual payments
• Adjustments
• One-time deductions
• Log history
•
After completing these steps, you must enter a termination date on the
employee record of each employee you want to purge.
– or –
To purge an employee, you must purge all of the employee’s data including:
• Employee history
• Payroll history
• BeneÞt history
• Tip pay records
• Time Accrual history
• Time and Attendance history
• Absence Management
• COBRA and retiree invoices
• Employee and employee comments

CAUTION Purging employee records permanently removes the

employee from the Lawson Payroll. If you mistakenly purge an
employee, you can re-enter the employee, but you CANNOT retrieve
history on the employee.

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Data
 Need More Details? Check out the following concepts:
• "What is a Data Purge?" on page 564
• "What is Included in Payroll History?" on page 564

STEPS To purge employee records

1. On Bank Account Reconciliation (PR85.1) , reconcile open payments by
bank account and payment range for employees to be purged. For more
information, see "Reconciling Payments Manually" on page 559.
2. On Bank Reconciliation (PR155), send all reconciled payments to history.
For more information, see "Running the Bank Reconciliation Report" on
page 562.
3. Run History Purge (PR300) to purge payroll history. For more information,
see "Purging Payroll History" on page 566.
4. Run BeneÞt Purge (BN430) to purge employee beneÞt enrollment history.
For more information, see the BeneÞts Administration Users Guide.
5. Run Employee Plan Purge (TA310) to purge employees from time accrual
plans. To skip directly to the procedures, see "Purging Time Accrual
History" on page 573 For more information, see "Purging Transactions
and Employees from Time Accrual Plans" on page 574.
6. On Time Entry (PR35.1), delete individual time records for employees to
be purged. For more information, see "Entering Time Records for One
Employee by Batch" on page 306.
– or –
On Batch Time Control (PR37.1), delete any batch status time records or
time record batches for employees to be purged. For more information,
see "Deleting Batches" on page 337.
7. On Time Record Selection (PR38.1), bring future status time records to
current for employees to be purge. For more information, see "Selecting
Time Records from Future to Current Status" on page 355.
8. On Time Record Entry (PR36.1), delete current, error, or processed time
records individually. For more information, see "Selecting One Time
Record" on page 359.
– or –

578 Chapter 37 Manual Processes: Purge Data Payroll User Guide

 On Error Processing (PR45.1), delete current, error, or processed time
records by process level. For more information, see "Deleting Processed
Time Records" on page 459.
9. On One-Time Deduction (PR39.1), delete all future or current status
one-time deductions for employees to be purged. For more information,
see "Maintaining One-Time Deductions" on page 289.
10. On Manual Payment (PR80.1), delete open manual payments for
employees to be purged. For more information, see "Creating Manual
Payments" on page 473.
11. Run Payment Detail Listing (PR260) to identify open adjustments for
employees to be purged.
12. On Adjustment (PR82.1), delete open adjustments for employees to be
purged. For more information, see "Manual Processes: Adjustments"
on page 491.
13. Run Employee History Purge (PA125), to delete all personnel action
history for employees to be purged. For more information, see the
Personnel Administration User Guide.
14. Run Employee Audit Purge (HR125) to delete all log history for employees
to be purged. For more information, see the Human Resources User
Guide.
TIP Use Mass Action 15. Type a date in the Termination Date Þeld of Employee (HR11.1) for
(PA52.3) to set up a all employees to be purged. For more information, see the Human
mass action to enter
a termination on the Resources User Guide.
records of all employees 16. Run Employee Purge (PA115) to purge employee records. For more
to be purged. For information, see the Personnel Administration User Guide.
more information,
see the Personnel
Administration User
Guide. Related Reports and Inquiries
To Use
Verify that employees have been Employee (HR11.1)
purged
List employees Employee Listing (HR211)

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580 Chapter 37 Manual Processes: Purge Data Payroll User Guide
Chapter 38

Manual Processes: Tips

This chapter covers manual Tips processes within the Lawson Payroll
application.

STOP Before continuing with the procedures in this chapter, you must set
up tips information for your employees. For more information, see "Setting
Up Tips" on page 197.

Payroll User Guide Chapter 38 Manual Processes: Tips 581

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 584 • "What Happens When a Payroll Cycle is in Progress?" on page 582
• "What Kind of Tip Adjustments Can I Make?" on page 582
• "How do I Close a Tip Manual Payment or Adjustment?" on page 583

What Happens When a Payroll Cycle is in Progress?

When a payroll cycle is in progress and the tip calculation has already been
processed, you might receive a message that an adjustment or manual
payment is not allowed because a cycle is in progress for the tipped employee.
You then have two options:
• Wait to enter the adjustment until the current payroll cycle is closed.
– or –
• Change the time record to error status, enter an adjustment, and
reprocess the tip calculation and the remainder of the payroll cycle.

What Kind of Tip Adjustments Can I Make?

Adjustments update tip history when you run the tip calculation or payroll
close.
You can adjust tip pay for an individual employee.
– or –
You can adjust tip pay for multiple employees in an allocation level.
You can make the necessary adjustment through Payroll, which in turn
updates the Tips application if adjustments to taxable wages are required.
Adjusting tip history through the Tips application does not update payroll
history.

582 Chapter 38 Manual Processes: Tips Payroll User Guide

How do I Close a Tip Manual Payment or Adjustment?
There are two ways to close a manual payment or adjustment. You can
immediately close the manual payment or adjustment and run the tip
calculation for only manual payments and adjustments. Lawson recommends
this option.
– or –
You can immediately run a payroll close to close the manual payments and
adjustments. This option bypasses running a tip calculation, so no edits or
calculations are performed. The payroll close creates tip pay records but
does not include tip credit.
If you perform a closing option immediately after creating a manual payment
or adjustment, either closes the manual payment or adjustment outside of the
normal payroll cycle.
If you wait to close the manual payment or adjustment until you process the
next payroll cycle, the adjustment is included with the payroll register of that
payroll and might complicate balancing.

Payroll User Guide Chapter 38 Manual Processes: Tips 583

Procedures in this Chapter
The following procedures explain how to process tips manual payments and
adjustments.
• "Creating Tip Manual Payments" on page 584
• "Adjusting Tip Pay Records for an Individual Employee" on page 584
• "Adjusting Tip Pay Records for Multiple Employees" on page 586
• "Closing a Manual Payment or Adjustment Using Tip Calculation"
on page 587

Creating Tip Manual Payments

Manual payments update Tip history when you run Tip Calculation (TP135) or
Payroll Close (PR197).
You must enter manual payment hours and tip information for the application
to properly calculate tip credit.

STOP Before creating tip manual payments, you must deÞne pay codes.
For more information, see "DeÞning Pay Codes" on page 58.

Need More Details? Check out the following concepts:

• "What Happens When a Payroll Cycle is in Progress?" on page
582
• "How do I Close a Tip Manual Payment or Adjustment?" on page
583

STEPS To create a tip manual payment

1. Access Manual Payment (PR80.1).
2. Choose the Company and Bank Code in the appropriate Þelds.
NOTE For proper 3. Complete the manual payment. For more information, see "Creating
calculation of tip credit, Manual Payments" on page 473.
you must enter hours
and tips for manual 4. Access Tip Calculation (TP135).
payments. 5. Close the manual payment. For more information, see "Closing a Manual
Payment or Adjustment Using Tip Calculation" on page 587.

Adjusting Tip Pay Records for an Individual Employee

You can create tip adjustments by adding tip pay records for individual
employees. You cannot use Employee Tip Pay (TP30.1) to maintain tip
pay records created in Payroll. Adjusting tip history with this form does not
update payroll history.

584 Chapter 38 Manual Processes: Tips Payroll User Guide

 Need More Details? Check out the following concepts:
• "What Kind of Tip Adjustments Can I Make?" on page 582
• "How do I Close a Tip Manual Payment or Adjustment?" on page
583

STEPS To adjust tip pay records for an individual employee

1. Access Employee Tip Pay (TP30.1).
2. Choose the Company and Employee.
3. Complete the form. Consider the following Þelds.

Position To Type the date to begin an inquiry with a speciÞc

date.
FC Select Add, Change, or Delete.
Proc Level Select a process level to adjust tip pay records
associated with a process level allocation level.
Dept Select a department to adjust tip pay records
associated with a department allocation level.
Sh Select a shift to adjust tip pay records associated
with a shift allocation level.
Date On an inquiry, the record date of the transaction
displays. When you add or adjust tips information,
the system date defaults if you do not enter a
date.
Hours Worked On an inquiry, the hours associated with the
recorded tips transaction display. Adjustments
you make to the hours worked do not affect
payroll records.
Tips On an inquiry, the tips recorded for the selected
employee display. Adjustments you make to
employee tips records do not affect payroll
records.
Pay On an inquiry, the pay summary group associated
with the tips amount displays. When entering
or adjusting tips, select the appropriate pay
summary group indicating if tips are direct or
indirect.

4. Choose the Add form action to add the form.

Payroll User Guide Chapter 38 Manual Processes: Tips 585

NOTE If you wait to 5. Update the Adjustment to payroll history through Payroll Close (PR197).
close the adjustment Lawson recommends running Payroll Register (PR141) before closing
until you process the
next payroll cycle, the adjustments and including these totals in the payroll ledger used for
adjustment is included balancing.
with the payroll register
of that payroll and might
complicate balancing. Related Reports and Inquiries
For more information,
see "Creating the Payroll To Use
Register" on page 483.
Update adjustments Tip Calculation (TP135)
List employee tip income by Tip Pay Report (TP130)
allocation level and tip pay history
entered through Payroll, Tips
application, or both

Adjusting Tip Pay Records for Multiple Employees

You can create tip adjustments by allocation level for multiple employees.

STOP You cannot use Allocation Level Tip Pay (TP30.2) to maintain tip pay
records created in Payroll. This form does not update the payroll information.
If adjustments to taxable wages are needed, make the necessary adjustment
through Payroll, which will update the Tips application.

Need More Details? Check out the following concepts:

• "What Kind of Tip Adjustments Can I Make?" on page 582
• "How do I Close a Tip Manual Payment or Adjustment?" on page
583

STEPS To adjust tip pay records for multiple employees

1. Access Allocation Level Tip Pay (TP30.2).
2. Enter the company in the Company Þeld.
3. Choose to Inquire on the Process Level, Department, or Shift in the
appropriate Þelds.
4. Complete the form. Consider the following Þelds.

Position To Type the date to begin your inquiry at a speciÞc

date.
FC Select Add, Change or Delete.
Employee On the inquiry, employees with tips associated
with the selected allocation level display.
To add tip records, select the employee whose
tips you want to add to this allocation.

586 Chapter 38 Manual Processes: Tips Payroll User Guide

 Date On the inquiry, the default record date of the
transaction displays.
Hours Worked On the inquiry, the hours associated with the
recorded tips transaction displays.
Adjustments you make to the hours worked do
not affect payroll records.
Tips On the inquiry, the tips transactions associated
with the selected allocation level display.
Type an amount to adjust the amount displayed
or to add tips.
Pay On the inquiry, the pay summary group
associated with the tips amount displays.
Select a pay summary group indicating whether
tips are direct or indirect when entering or
adjusting tips.

5. Choose the Add form action to add the form.

NOTE If you wait to 6. Update the Adjustment to payroll history through Payroll Close (PR197).
close the adjustment Lawson recommends running Payroll Register (PR141) before closing
until you process the
adjustments and including these totals in the payroll ledger used for
next payroll cycle, the
adjustment is included balancing.
with the payroll register
of that payroll and might
complicate balancing. Related Reports and Inquiries
For more information,
see "Creating the Payroll To Use
Register" on page 483.
List employee tip income by Tip Pay Report (TP130)
allocation level and tip pay history
entered through Payroll, Tips
application, or both

Closing a Manual Payment or Adjustment Using Tip

Calculation
Run Tip Calculation (TP135) to verify that the higher minimum wage (federal
or state) is met and to calculate and track tips credited as wages to meet the
minimum wage.
When you select Yes in the Manual and Adj. Only Þeld, Payroll veriÞes the
minimum wage is met and, if a shortage exists, creates a time record for
the shortage. If no other payments exist for the employee, Payroll uses the
manual payment information to create the record. You can then process the
time record in the next pay cycle, or delete the time record, recalculate the
manual payment with the proper amount, and re-run Tip Calculation (TP135).
The tip credit is calculated and stored on the tip pay records you created.
The tip credit is stored for audit and reporting purposes and is included in the
regular rate of pay for the overtime calculation.

Payroll User Guide Chapter 38 Manual Processes: Tips 587

 Hours worked for tipped employees in tipped jobs are calculated and stored
for use in the hours worked method of tip shortfall allocation calculation.
Tip Calculation (TP135) determines which direct or indirect pay code to use if
there is no tip time record. The application determines the pay code based on
the time record job code and the set up of Direct Tipped Jobs (TP01.1).

IMPORTANT Lawson does not recommend using Payroll Close (PR197) to

close a manual payment or adjustment. When you use PR197, the close is
completed without creation of edits or calculations.

Need More Details? Check out the following concepts:

• "What Happens When a Payroll Cycle is in Progress?" on page
582
• "How do I Close a Tip Manual Payment or Adjustment?" on page
583

STEPS To close a manual payment or adjustment using tip

calculation
1. Access Tip Calculation (TP135).
TIP When you run Tip 2. Run the report. For more information, see "Calculating Tip Credit Records
Calculation (TP135), the (U.S. and CA)" on page 393.
application processes
the open records 3. Choose the Submit form action to submit the calculation.
along with the system
payments.

588 Chapter 38 Manual Processes: Tips Payroll User Guide

Chapter 39

Manual Processes: Time and Attendance

This chapter describes manual processes for Time and Attendance within the
Lawson Payroll application.

STOP Before entering attendance history, you must deÞne attendance

codes. For more information, see "DeÞning Attendance Codes" on page 73.

Payroll User Guide Chapter 39 Manual Processes: Time 589

and Attendance
Concepts in this Chapter
TIP "Procedures in this The following concept provides background and conceptual information for
Chapter" on page 591 the procedures within this chapter.
• "Where do I Enter Time and Attendance?" on page 590

Where do I Enter Time and Attendance?

You can enter attendance information manually through Time and Attendance,
or enter employee attendance information along with or on time record entries
in Payroll. If you use attendance codes when entering time records in Payroll,
running the payroll close updates attendance history in Time and Attendance.

590 Chapter 39 Manual Processes: Time and Payroll User Guide

Attendance
Procedures in this Chapter
The following procedures explain how to manually process time and
attendance.
• "Entering Employee Attendance History Manually Through Time and
Attendance" on page 591
• "Entering Employee Attendance History Manually Through Payroll"
on page 592
• "Adjusting Time and Attendance History" on page 594

Entering Employee Attendance History Manually Through

Time and Attendance
Time and Attendance allows you to manually enter and maintain employee
attendance history.

STOP Before entering attendance history, you must deÞne attendance

codes. For more information, see "DeÞning Attendance Codes" on page 73.

Need More Details? Check out the following concepts:

• "Where do I Enter Time and Attendance?" on page 590

STEPS To enter employee attendance history manually through

Time and Attendance
1. Access Attendance History (TM70.1).
2. Choose a Company and Employee in the appropriate Þelds.
3. Choose the Inquire form action to Inquire on the employee’s attendance
history.
4. Enter the employee’s attendance history. For more information, see
"Adjusting Time and Attendance" on page 480.
5. Choose the Change form action to add the changes.

Payroll User Guide Chapter 39 Manual Processes: Time 591

and Attendance
 Related Reports and Inquiries
To Use
Inquire on attendance history of Employee Attendance Date Inquiry
a speciÞc employee and display (TM50.1)
data in ascending date order by
attendance codes
Inquire on the attendance history Employee Attendance Code Inquiry
of a speciÞc employee and display (TM51.1)
data in attendance code order by
ascending date
Inquire on employee attendance Attendance Date Inquiry (TM52.1)
history for all employees in
a company, process level, or
department and display data in
ascending date order by attendance
code, and employee number
Inquire on employee attendance Attendance Code Inquiry (TM53.1)
history for all employees in
a company, process level, or
department and display data by
attendance code order, ascending
date, and employee number
Inquire on employee attendance Attendance Class Inquiry (TM54.1)
history for attendance codes in an
attendance class and display data in
ascending date order by employee
number
Inquire on attendance history for Employee Date Calendar (TM60.1)
a speciÞc employee by year and
attendance code or attendance class
Inquire on attendance history for Employee Days Calendar (TM61.1)
a speciÞc employee by year and
attendance code or attendance class
Inquire on all attendance history Attendance History (TM70.1)
Convert time and attendance data Attendance History Conversion
to Lawson (TM570)

Entering Employee Attendance History Manually Through

Payroll
Use Standard Time Record (PR30.1) to deÞne standard time records for an
individual employee or an employee group. You can add attendance codes to
standard time records.
When employees work the same number of hours each pay period, such as
salaried employees, standard time records eliminate entering time for every
pay cycle by automatically creating time records for eligible employees.

592 Chapter 39 Manual Processes: Time and Payroll User Guide

Attendance
 STOP For an employee record to be eligible for a standard time record,
the employee record must have an Auto Time Record Þeld value of Standard,
Time Group, or Yes. When you run Automatic Time Records (PR134), Payroll
creates time records and calculates wages for eligible employees. For more
information, see "Creating Automatic Time Records" on page 332.

Need More Details? Check out the following concepts:

• "Where do I Enter Time and Attendance?" on page 590

STEPS To enter employee attendance history manually through

Payroll
1. Access Standard Time Record (PR30.1). For more information, see
"Assigning Standard Time Records" on page 278.
TIP If you leave the 2. Complete the form to update attendance history inTime and Attendance.
Amount Þeld blank, the Consider the following Þelds.
pay rate defaults from
the pay code, alternate
rates, job code, pending Pay Code Select a pay code.
actions, log Þle, or the
employee record. For Time and Attendance users, a pay code tied
to an attendance code defaults when you select
an attendance code.
Job Code Select a job code. If you leave this Þeld blank,
the job code defaults from the employee record.
Amount Type the rate of pay or leave the Þeld blank.
For hourly employees, the amount is considered
an hourly rate and is multiplied by the hours
entered on the time record. For salaried
employees, the amount entered overrides normal
salary amounts for pay codes with calculation
type of Normal Rate and is not multiplied by the
hours entered.
TRD Comments Choose the TRD Comments button to open the
Comments subform. Use the subform to type
comments about the time record and indicate
whether the comments are allowed to print on
reports.
Work, General Choose these tabs to change defaults for entry
Ledger, and More or reporting.
form tabs

3. Choose the Add form action to add the record.

Payroll User Guide Chapter 39 Manual Processes: Time 593

and Attendance
 Related Reports and Inquiries
To Use
Create time records that update Speed Entry Setup (PR33.1)
attendance history in Time and
– or –
Attendance application
Detail Time Entry (PR35.2)
– or –
Activity Time Entry (PR35.6)
– or –
Automatic Time Records (PR134)
Create time records for employees Step and Grade, Grade Range Time
associated with a step and grade Entry (PR35.4)
schedule or a grade range schedule
Create time records associated Attendance Time Entry (PR35.5)
with attendance codes deÞned in
Time and Attendance, which uses
these records for tracking hours and
occurrences
Add or maintain attendance codes Time Entry Maintenance (PR36.1)
and occurrences for future or current
time records
Create batch status time records Time Record Interface (PR130)
from the Time Record Interface Þle
and include attendance codes and
occurrences on the report if they
are included in the Time Record
Interface Þle

Adjusting Time and Attendance History

Whether Payroll creates attendance history or you enter it manually, you must
manually enter voids and adjustments. Payroll does not automatically delete
attendance history when you void a payment in Bank Account Reconciliation
(PR85.1).
If you create manual payments in Manual Payment (PR80.1) or make
adjustments to Payroll in Adjustment (PR82.1) that affect attendance history,
use Attendance History (TM70.1) to adjust attendance history. Use TM70.1 to
delete attendance history created by a voided payment or to create negative
attendance history as an offset.

594 Chapter 39 Manual Processes: Time and Payroll User Guide

Attendance
 Need More Details? Check out the following concepts:
• "What Kinds of Adjustments Can I Make?" on page 492

STEPS To adjust time and attendance history

1. Access Attendance History (TM70.1).
2. Delete attendance history created by a voided payment.
– or –
Create negative attendance history as an offset. For more information,
see "Creating a Zero Gross Manual Payment" on page 480.
3. Choose the Change form action to add the adjustments.

Related Reports and Inquiries

To Use
Inquire on attendance history of Employee Attendance Date Inquiry
a speciÞc employee and display (TM50.1)
data in ascending date order by
attendance codes
Inquire on the attendance history Employee Attendance Code Inquiry
of a speciÞc employee and display (TM51.1)
data in attendance code order by
ascending date
Inquire on employee attendance Attendance Date Inquiry (TM52.1)
history for all employees in
a company, process level, or
department and display data in
ascending date order by attendance
code, and employee number
Inquire on employee attendance Attendance Code Inquiry (TM53.1)
history for all employees in
a company, process level, or
department and display data by
attendance code order, ascending
date and employee number
Inquire on employee attendance Attendance Class Inquiry (TM54.1)
history for attendance codes in an
attendance class and display data in
ascending date order by employee
number
Inquire on attendance history for Employee Date Calendar (TM60.1)
a speciÞc employee by year and
attendance code or attendance class
Inquire on attendance history for Employee Days Calendar (TM61.1)
a speciÞc employee by year and
attendance code or attendance class
Inquire on all attendance history Attendance History (TM70.1)

Payroll User Guide Chapter 39 Manual Processes: Time 595

and Attendance
596 Chapter 39 Manual Processes: Time and Payroll User Guide
Attendance
Chapter 40

Reports: Balancing Payroll

This chapter describes how to balance payroll within the Lawson Payroll
application.

Payroll User Guide Chapter 40 Reports: Balancing Payroll 597

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 600 • "What is Payroll Cycle Balancing?" on page 598
• "How do I Close a Payroll Year?" on page 599

What is Payroll Cycle Balancing?

Balancing payroll is an on-going process from cycle to cycle within Payroll.
When you balance on a cycle to cycle basis, balancing month-end,
quarter-end, and year-end in preparation for regulatory reporting is cleaner
and easier to perform.
Routine, cyclical payroll balancing involves maintaining a detailed record of all
transactions processed through payroll. These transactions include normal
cyclical payments and extra payments such as voids, manual adjustments,
and manual payments. These extra payments can be closed either when
normal cyclical payments are closed, or closed independent of normal cyclical
payments.

IMPORTANT Lawson recommends that you close voids, manual adjustments,

and manual payments independently from the normal cyclical close. When
you close these transactions independently, you will not overlook these extra
payments, and will have greater ease in documenting these transactions.

When you prepare to balance a payroll cycle, you must remember two
concepts. First, performing adjustments through Adjustment is the only
cause of an out of balance transaction in Payroll. If you Þnd out of balance
transactions when balancing, you can research transactions made through
Adjustment.

IMPORTANT Because the possibility of creating out of balance transactions

exists with Adjustment, you must create an adjustment for an employee
record with caution and a thorough understanding of the adjustment process.
For more information, see "Manual Processes: Adjustments" on page 491.

NOTE The Payroll Second, the Payroll Register reßects voids, adjustments, and manual
Register is a record of payments as well as normal application payments.
your transactions. Refer
to this record when
balancing a payroll IMPORTANT Lawson recommends running the Payroll Register after you
cycle. perform all prerequisite procedures for payroll close, and prior to running
Payroll Close. Save a copy of the Payroll Register either electronically, or as
a permanent payroll record on paper. For more information, see "Creating
the Payroll Register (U.S. and CA)" on page 439.

598 Chapter 40 Reports: Balancing Payroll Payroll User Guide

How do I Close a Payroll Year?
Payroll is date-sensitive, operating on a calendar year basis. Closing the
calendar year, also known as the payroll year, involves running Payroll Year
End Close. No special procedure is required for month-end or quarter-end
closing.
When you close a payroll year, the application:
• Changes the year in the Payroll Year Þeld on Company to the new year
so Year to Date data and Quarter to Date drill around data are for the
new year
• Updates pay plans and creates work periods and pay periods for the
new year
NOTE You must review • Deletes all withholding deductions in arrears created by the application
these deductions prior to during the previous year
closing the payroll year.
Once the payroll year is closed, you can still go back and adjust employee
payroll history to balance for the previous year end. To access the prior
payroll year once it is closed:
• Change the payroll year on the Pay tab on Company back to the prior year
• Process and close any adjustments or voids
• Close the adjustments or voids with Payroll Close in Update mode
• Change the payroll year on the Pay tab on Company back to the current
year.

IMPORTANT Change the payroll year back to the current year before you
begin processing any current year entries. If you do not change back to
the current year, current year entries are performed in the prior year.

Payroll User Guide Chapter 40 Reports: Balancing Payroll 599

Procedures in this Chapter
The following procedures explain how to balance payroll.
• "Preparing for Payroll Cycle Balancing" on page 600
• "Balancing a Payroll Cycle" on page 602
• "Performing Periodic, Month-End, Quarter-End, or Year-End
Balancing" on page 605
• "Closing a Payroll Year" on page 608

Preparing for Payroll Cycle Balancing

As you process the payroll cycle, use the Earnings and Deductions
Calculation (PR140), Payroll Register (PR141), Payroll Close (PR197), and
General Ledger Posting (PR198) to verify totals and prepare for month-end,
quarter-end, and year-end balancing.

Need More Details? Check out the following concepts:

• "What is Payroll Cycle Balancing?" on page 598

STEPS To prepare for payroll cycle balancing

1. Access Earnings and Deductions Calculation (PR140).
2. Run the report. For more information, see "Calculating Tip Credit Records
(U.S. and CA)" on page 393.
3. Access Payroll Register (PR141).
4. Run a detailed register of earnings and deductions for all payments.
Payroll Register (PR141) includes all payments that have not been closed
by Payroll Close (PR197). For more information, see "Creating the Payroll
Register (U.S. and CA)" on page 439.
5. Access Payroll Close (PR197).
TIP Running Payroll 6. Run the report in Report mode to receive and verify the report of GL
Close (PR197) in both transactions. If transactions in Report mode are correct, you will later
Report mode and
Update mode provides run the report in Update mode after completing balancing for the payroll
a report. However, period. For more information, see "Balancing a Payroll Cycle" on page
running PR197 in Report 602.
mode before Update
mode allows you to 7. Create an Excel or Lotus spreadsheet of all Payroll Register (PR141)
verify the transactions. totals to use in month-end, quarter-end, and year-end balancing using
PR141 as your source document.
Enter totals from PR141 into the spreadsheet. Below is an example of
how to format the spreadsheet and what data to track from each PR141
prepared during the payroll cycle. Since Lawson recommends closing
voids, manual adjustments, and manual payments separately from the
normal cyclical closings, you must maintain a record for all transactions,
including those closed outside of the payroll cycle on this spreadsheet.

600 Chapter 40 Reports: Balancing Payroll Payroll User Guide

Table 6. Example: Spreadsheet of all Payroll Register totals

Fed. Med. Fed. Med. MN St.

Payment Date Gross Txbl. Txbl. W/H SS W/H W/H W/H Net Pay
Ex. 02/09/01
Ex. 02/23/01

Special Runs
(list below by
date)

Ex. 03/12/01
Ex. 03/20/01

1st Quarter
Totals - - - - - - -

Ex. 03/02/01
Ex. 03/16/01
Ex. 03/30/01

Special Runs
(list below by
date)

2nd Quarter
Totals - - - - - - -

Grand Total All

Quarters

8. Check PR141 totals on the spreadsheet to verify that all payroll

transactions balance. Consider the following information when verifying
PR141 totals.

For Verify
U.S. and Canada Total of all earnings equal Gross
Pay.
U.S. and Canada Gross Wages less employee
deductions equal Net Pay.

Payroll User Guide Chapter 40 Reports: Balancing Payroll 601

 For Verify
U.S. Gross Pay less Pre-Tax
Deductions equals FICA taxable.
U.S. Gross Pay less Pre-Tax
Deductions and 401(k) equals
Federal Taxable and State Taxable
Wages.

NOTE Taxability of deductions

and 401(k) can differ between
Federal and individual states.
These can also differ from state to
state.

U.S. FICA Withholding equals 6.2%

(Social Security) and 1.45%
(Medicare) of FICA Taxable
Wages.
Canada Gross Taxable Income equals
gross earnings plus taxable
beneÞts less RRSP.
Canada Net Taxable Income equals Gross
Taxable Income less allowable
exemptions.
Canada Gross Taxable Income equals
CPP/QPP Taxable Income.
Canada CPP/QPP Withholding equals the
rate issued to you by Revenue
Canada multiplied by Pension
Earnings.
Canada EI (Employee Insurance)
Employee Withholding equals
the rate issued to you by Revenue
Canada multiplied by Insurable
Earnings.
Canada EI Company Withholding equals
the rate issued to you by Revenue
Canada multiplied by Insurable
Earnings.

Balancing a Payroll Cycle

All open payment records, including ACH, system, manual, adjustments, and
voids are listed on the Payroll Register (PR141).

602 Chapter 40 Reports: Balancing Payroll Payroll User Guide

 You create a log or spreadsheet of payroll totals using the Payroll Register
(PR141) as the source document for balancing periodic, month-end,
quarter-end, or year-end. Balance these items to ensure that all payroll
activity is consistent within the reports.

Need More Details? Check out the following concepts:

• "What is Payroll Cycle Balancing?" on page 598

STEPS To balance a payroll cycle

1. With the Earnings and Deductions Calculation (PR140) and Payroll Close
(PR197), verify that:
a. Payroll Pay Totals from PR140 equal Distribution Pay Expense Totals
from PR197
b. Payroll Deduction Totals from PR140 equal Distribution Deduction
Expense and Accruals Totals from PR197
c. Payroll Net from PR140 equals Distribution Cash Totals from PR197
2. On the Payroll Register (PR141), verify the following company totals:
a. Total Earnings equal Gross Pay
b. Gross Pay less Pretax Deductions equal FICA Taxable Wages
c. Gross Pay less Pretax Deductions and 401(K) equal Federal and
State Taxable Wages
d. Gross Wages less Deductions equal Net Pay

Payroll User Guide Chapter 40 Reports: Balancing Payroll 603

 e. FICA Withholding equals 6.2% (Social Security) and 1.45%
(Medicare) of FICA Taxable Wages
3. Access Payroll Close (PR197).
4. Run the report in Update mode.
5. Verify that the Payroll Close (PR197) totals equal the Payroll Register
(PR141). This ensures that no other transactions were entered after the
PR197 and PR141 were processed.
6. Compare output reports from various stages of the payroll cycle.
Beginning with the Earnings and Deductions Calculation (PR140),
balance the payroll cycle by comparing:
• PR140 totals to PR141 totals
• PR141 totals to PR197 Report mode totals
• PR197 Report mode totals to PR197 Update mode totals
• PR197 Update Mode totals to General Ledger Posting (PR198) totals.
As you process the payroll cycle, use the output from the reports
identiÞed above to balance the payroll cycle. The objective is to
document and summarize all activity that was closed with the payroll
cycle.

IMPORTANT When you compare PR197 Update Mode totals to

PR198 totals you might Þnd different totals if you do not run the
PR198 with each payroll cycle. Because PR198 updates the General
Ledger, and can be run to coincide with the General Ledger calendar
instead of the payroll calendar, totals from multiple PR197 runs might
be reßected in PR198 totals.

Table 7. Example: Comparing output reports for balancing a payroll cycle

PR140 PR141 PR197 REPORT PR197 UPDATE PR198

MODE MODE
Hours Hours Only if Hours are Only if Hours are Only if Hours are
posted to GL posted to GL posted to GL
Total Gross Total Gross Wages Accrued Payroll Accrued Payroll Accrued Payroll
Wages Clearing Account(s) Clearing Clearing
Account(s) Account(s)
Net Pay Net Pay Cash Account(s) Cash Account(s) Cash Account(s)

604 Chapter 40 Reports: Balancing Payroll Payroll User Guide

 Related Reports and Inquiries
To Use
List payment number and type, Consolidated Payroll Register
total hours, gross wages, total (PR142)
deductions, and net pay for each
open payment

Performing Periodic, Month-End, Quarter-End, or Year-End

Balancing
Use the spreadsheet you created to log Payroll Register (PR141) payroll
totals from each run to perform pay period, periodic, month end, quarter end,
or year end balancing.

IMPORTANT Balance month to date and quarter to date reports each period.
If you Þnd a discrepancy, you will be able to identify the discrepancy in that
pay period. If you run quarter-to-date reports only once a quarter and Þnd
an error, the error will be more difÞcult to identify than when you balance
reports each period.

STOP Before performing periodic, month-end, quarter-end, or year-end

balancing, create a log of Payroll Register (PR141) transactions for each run.
For more information, see "Balancing a Payroll Cycle" on page 602.

Need More Details? Check out the following concepts:

• "What is Payroll Cycle Balancing?" on page 598

STEPS To perform periodic, month-end, quarter-end, or year-end

balancing
1. For pay period, periodic, month-end, or quarter-end balancing, validate
totals you tracked on your spreadsheet of Payroll Register (PR141)
transactions against the details from the reports listed below.
Table 8. Example: Validate Payroll Register (PR141) against balancing reports

Balance your Monthly or Quarterly totals from PR141 against the Þgures in the following reports.
Report Title Report # Dates Description Use To
Payment PR260 User A detail listing of This report can be used to verify
Detail Listing SpeciÞed payments for a speciÞc Gross Wages and New Wages
Date quarter. for a time period with totals from
Range PR141.

Payroll User Guide Chapter 40 Reports: Balancing Payroll 605

Employee PR270 User A Summary of wages Use to edit speciÞc summary level
Wage Report SpeciÞed for each employee for a types of pay data for a range of
Date date range. employees, in a date range by
Range process level or department.
Deduction PR275 User A report of deduction Use to troubleshoot errors This
Report SpeciÞed amounts, by payment report can be run for employee
Date for a speciÞc quarter. totals or deduction totals.
Range
Employee PR276 User A report of deduction Used to troubleshoot errors in
Deduction SpeciÞed amounts and totals for a deductions taken.
Report Date speciÞc quarter.
Range
Quarterly PR290 Qtr A report of taxable Verify Taxable Wages totals from
Report wages and taxes this report with Taxable Wage
withheld for a quarter. Totals from PR260. Quarterly and
Year-to-Date Gross Wages from
this report are Total Wages.
Unemployment PR291 Qtr A quarterly Verify Excess Wages with PR294.
Continuation unemployment report of Verify Taxable Wages and tax
Form Social Security taxable withholdings from this report
wages, total wages, against output from PR297.
total taxable wages,
excess wages, and
weeks worked.
Balancing PR294 Qtr A report of wages Verify Excess Wages with PR291.
Report and deductions by tax
authority and class.
W-2 Forms PR297 Year A report of year-to-date Verify Taxable Wages and tax
totals associated with withholdings from this report
W-2 reporting (summary against PR290 totals for all four
or detail). quarters. You can run this report at
any time of the year for balancing.

606 Chapter 40 Reports: Balancing Payroll Payroll User Guide

 2. For year-end balancing, validate totals you tracked on your spreadsheet
of Payroll Register (PR141) transactions against the details from the
reports listed below.
Table 9. Example: Balance Payroll Register (PR141) with grand totals

Balance your Grand Total All Quarters totals from PR141 against the Þgures in the following reports.
Report Title Report # Dates Description Use To
Payment Detail PR260 User SpeciÞed Detail Payment Verify Gross Wages and Net
Listing Date Range listing for year dates. wages for a time period with totals
from PR141.
Year To Date PR265 Thru Date Year-to-Date totals Produce a report of
Payment through a speciÞc Month-to-Date, Quarter-to-Date,
Report date. and Year-to-Date open and closed
payments.
Employee PR270 User SpeciÞed Summary of wages Edit speciÞc summary level
Wage Report Date Range for each employee types of pay data for a range of
for the year. employees, in a date range by
process level or department.
Deduction PR275 User SpeciÞed A report of deduction Troubleshoot errors in deductions
Report Date Range amounts by taken. Can be run for employee
payment, for a totals or deduction totals.
speciÞc year.
Employee PR276 User SpeciÞed A report of deduction Troubleshoot errors in deductions
Deduction Date Range amounts and totals taken.
Report for a speciÞc year.
W-2 Forms PR297 Year A report of year Verify Taxable Wages and tax
to date totals withholdings from this report
associated with W2 against PR290 totals for all four
reporting in detail or quarters. This report can be run at
summary style. any time of the year for balancing.

Payroll User Guide Chapter 40 Reports: Balancing Payroll 607

Closing a Payroll Year
Perform Payroll Year End Close (PR999) annually to close transactions from
the previous year and to prepare Payroll for new calendar year transactions.

STOP Before you run the Þrst payroll cycle of the new calendar year, you
must run Payroll Year End Close (PR999).

Need More Details? Check out the following concepts:

• "How do I Close a Payroll Year?" on page 599

STEPS To Close a Payroll Year

1. Access Payroll Year End Close (PR999).
2. Run the report. For more information, see the Payroll Year End Manual.
3. If you detect errors in wage and tax information after you run Payroll Year
End Close (PR999), you can make adjustments to the previous year on
Adjustment (PR82.1). Make these adjustments by:
• Changing the payroll year on Company (HR00.1) back to the previous
year
• Processing and closing adjustments or voids
• Closing the adjustments or voids with Payroll Close (PR197) in
Update mode
• Changing the payroll year back to the current year on Company
(HR00.1) so payroll transactions for the current year are made to
the correct year.

608 Chapter 40 Reports: Balancing Payroll Payroll User Guide

Chapter 41

Reports: Tips

This chapter covers how to process government tips reports within the
Lawson Payroll application.

STOP Before you process tip reports, you must Þrst deÞne the company,
process level and department, shift allocation level parameters or both on
Company Allocation (TP00.1), Process Level Allocation (TP00.2), Department
Allocation (TP00.3), or Shift Allocation Level (TP00.4). For more information,
see "Setting Up Tips" on page 197.

Payroll User Guide Chapter 41 Reports: Tips 609

Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 614 • "What is the Hours Worked Method for Calculating Tip Shortfall?"
on page 610
• "What is the Individual Gross Receipts Method?" on page 610
• "How do I Calculate Shortfall Allocation for Year End Reporting?"
on page 611
• "How do I Calculate Tax Credit?" on page 611

What is the Hours Worked Method for Calculating Tip

Shortfall?
With the Hours Worked Method of calculating tip shortfall, the application
determines the shortfall by the ratio of hours worked by the tipped employee
to the total hours worked by all tipped employees in the allocation level for
the same time period.
The Hours Worked method uses the hours worked by tipped employees in
tipped jobs tracked by Tip Calculation in the calculation of shortfall allocation.

What is the Individual Gross Receipts Method?

With the Individual Gross Receipts method of calculating tip shortfall, the
application uses the ratio of gross receipts reported by a tipped employee to
the total gross receipts for the allocation level.
The Individual Gross Receipts method gives you the option, at the company
level, to require that the total gross receipts added for an allocation level for
any given time period must balance with the individual gross receipts added
for that time period and allocation level. To use this option, select Yes in
the Control Totals Þeld on Company Allocation. If you use this option, all
allocation levels deÞned for the selected company are affected.
To use the Individual Gross Receipts method of shortfall allocation calculation,
you need to add the individual gross receipts for employees and the total
gross receipts for the allocation level.
In the Individual Gross Receipts method of calculating tip shortfall, the
application uses the ratio of gross receipts reported by a tipped employee to
the total gross receipts for the allocation level for the date range you specify.

610 Chapter 41 Reports: Tips Payroll User Guide

How do I Calculate Shortfall Allocation for Year End
Reporting?
When an establishment in which tipping is considered customary does not
report the required minimum percent of its gross receipts as tip income
received by its tipped employees, the establishment must calculate the
shortfall amount and allocate that amount to those tipped employees who did
not report the minimum required percent.
The Tips application offers two methods of calculating shortfall allocation:
• Hours Worked method (used more often)
• Individual Gross Receipts method (more labor intensive)
You can deÞne the method and percent you want to use in the calculation
when you deÞne allocation levels for the company.
To keep track of the shortfall allocation amount throughout the year, you can
run the Shortfall Allocation Calculation at anytime to calculate the shortfall
allocation for employee reporting tip income in the company, process level,
and year selected.

How do I Calculate Tax Credit?

Employers are required to pay employee and employer Social Security and
Medicare tax on tip income. However, a credit is available equal to the
employer’s Medicare and Social Security tax obligation for reported tips in
excess of those treated as wages to satisfy the federal minimum wage.
Tax Credit Calculation calculates a tax credit based on the employer’s portion
of Social Security and Medicare Tax on tip income in excess of the amount
used to meet the federal minimum wage requirement.
In the Tips application, use Tax Credit Calculation to calculate the tax credit.
Tax Credit Calculation is not an update report, so you can run it as often
as you like.

Minimum Wage Due Calculation

Tax Credit Calculation calculates the minimum wage due by multiplying the
federal minimum wage by the employee’s hours worked and veriÞes the
minimum wage by comparing the federal minimum wage effective date with
the payment date of the tip pay record. If no federal minimum wage is found,
the application ends the report and prints an error message.

Tip Credit Calculation

Tax Credit Calculation calculates the tip credit by subtracting the wages
(excluding tips) from the minimum wage due.

Payroll User Guide Chapter 41 Reports: Tips 611

 If Then
The tip credit is zero the employee information prints on
the report.
The tip credit is negative (voids) the application processes the
records and prints the information
on the report.
The tip pay record has only hours the employee information prints on
(an adjustment) the report, but no amount exists for
the calculation.
The tip credit exceeds the actual tip an error message prints on the
amount report. You can report tip credit
only up to the amount of actual tips
reported.
The employee has multiple tip the application recalculates the
records and one of those records shortage with the other tip records
has a tip credit greater than tips that have excess tips.
reported due to a shortage

Excess Tips Calculation

Tax Credit Calculation calculates excess tips by subtracting the tip credit
from the reported tips.

Excess Tips VeriÞcation

Tax Credit Calculation compares excess tips with Social Security taxable
wages for the payment, with the following results:
If Then
Social Security taxable wages are the application uses the total of
greater than excess tips the excess tips in the calculation.
The amount of excess tips prints
separately for Social Security and
Medicare.
Social Security taxable wages are the application uses the amount of
less than excess tips Social Security taxable wages as
the excess tips in the calculation.
The amount of excess tips prints
separately for Social Security and
Medicare.
No Social Security employee excess tips are zero.
payment deduction records exist
for the payment because the Social
Security taxable wages limit has
been met
There is no limit for Medicare taxable the application uses the total excess
wages tips in the calculation.

612 Chapter 41 Reports: Tips Payroll User Guide

 Tax Credit Calculation
Tax Credit Calculation calculates the tax credit by multiplying the excess tips
by the Social Security and Medicare rates.

Payroll User Guide Chapter 41 Reports: Tips 613

Procedures in this Chapter
The following procedures explain how to create government reports for tipped
employees.
• "Adding Allocation Level Gross Receipts for the Hours Worked
Method" on page 614
• "Adding Individual Employee Gross Receipts for the Individual Gross
Receipts Method" on page 616
• "Recording Gross Receipts for Individual Employees" on page 618
• "Adding Allocation Level Gross Receipts for the Individual Gross
Receipts Method" on page 618
• "Calculating Tip Shortfall Allocations" on page 620
• "Calculating Tip Tax Credit" on page 623

Adding Allocation Level Gross Receipts for the Hours Worked

Method
With the Hours Worked method of calculating tip shortfall, the application
determines the shortfall by the ratio of hours worked by a tipped employee
to the total hours worked by all tipped employees in the allocation level for
the same tip period.
The Hours Worked method uses the hours worked by tipped employees in
tipped jobs tracked by Tip Calculation (TP135), in the calculation of shortfall
allocation.
Use Hours Worked Allocation (TP10.1) to enter gross receipts records to use
in the Hours Worked method of calculating shortfall allocations for speciÞc
allocation levels.
Through Hours Worked Allocation (TP10.1) you can record charged tips,
charged receipts, and service charges of less than 10 percent paid as wages
to employees. The application uses this optional information for year-end
federal reporting.

STOP Before you process tip reports, you must deÞne the company,
process level, department, or shift allocation level parameters. For more
information, see "Setting Up Tips" on page 197.

614 Chapter 41 Reports: Tips Payroll User Guide

 Need More Details? Check out the following concepts:
• "What is the Hours Worked Method for Calculating Tip Shortfall?"
on page 610

STEPS To add allocation level gross receipts for the hours

worked method
NOTE For year-end 1. Access Hours Worked Allocation (TP10.1).
federal reporting, on
Hours Worked Allocation 2. Select a Company, Process Level, Department, or Shift to create gross
(TP10.1), you can add receipts records for the Hours Worked Method of calculating the shortfall
charged tips, charged allocation for the Company, Process Level, Department, or Shift allocation
receipts, and service level.
charges of less than 10
percent paid as wages 3. Complete the form. Consider the following Þelds.
to employees.
Date Type the date of the transaction.
If you do not type a date, the application date
defaults.
With form action Inquire, this Þeld is required.
Gross Receipts Type the gross receipts for the date entered.
If you did not enter a date, the application date
defaults.
Charged Tips Type the amount of charged tips for the allocation
level and date entered.
Charged Receipts Type the amount of charged allocable receipts for
the allocation level and date entered.
Service Charges Type the total amount of service charges of less
than 10 percent paid as wages to employees.

4. Choose the Add form action to add the form.

Payroll User Guide Chapter 41 Reports: Tips 615

 Related Reports and Inquiries
To Use
Report the gross receipts of Gross Receipts Edit by Hours
allocation levels that use the Hours Worked (TP115)
Worked method of calculating
shortfall or to report any charged
tips, charged receipts, and service
charges of less than 10 percent paid
as wages to employees added in
Hours Worked Allocation (TP10.1)

Adding Individual Employee Gross Receipts for the Individual

Gross Receipts Method
Use Gross Receipts by Allocation Level (TP20.1) to add individual gross
receipts for multiple employees in an allocation level.

STOP If you selected Yes in the Control Totals Þeld on Company Allocation
(TP00.1), the gross receipts you add on Gross Receipts by Allocation Level
(TP20.1) or Employee Gross Receipts (TP20.2) for all employees in the
selected allocation level must equal the gross receipts added on Gross
Receipts Allocation (TP20.3) for the selected allocation level or you cannot
release the records. To release the gross receipts records, type a date in the
Release Date Þeld and select the Release function. For more information,
see "Setting Up Tips" on page 197.

Need More Details? Check out the following concepts:

• "What is the Individual Gross Receipts Method?" on page 610

STEPS To add individual employee gross receipts for the

individual gross receipts method
1. Access Gross Receipts by Allocation Level (TP20.1).
2. Select a Company, Process Level, Department, or Shift to record or
display gross receipts for a Company, Process Level, Department, or
Shift Allocation Level.
3. Complete the form. Consider the following Þelds:

Release Date Type the release date.

If you use the Individual Gross Receipts method
of shortfall allocation calculation, the gross
receipts entered from all employees in the
allocation level must match the total gross
receipts for the allocation level or you cannot
release the records for processing.

616 Chapter 41 Reports: Tips Payroll User Guide

 Position To-Date To begin an inquiry with a speciÞc date, type the
date.
Position To- To begin an inquiry with a speciÞc employee,
Employee select an employee.
FC Select the action you want to perform on this line.
Employee Name Select the employee whose gross receipts you
want to record.
Gross Receipts Enter the employee’s gross receipts for this
transaction.
Date Type the transaction date. If you do not type a
date, the application date defaults.

4. Choose the Add form action to add the form.

Related Reports and Inquiries

To Use
Add gross receipts for an individual Employee Gross Receipts (TP20.2)
employee who reports tips in multiple
allocation levels
Report the gross receipts of Gross Receipts Edit by Employee
employees who reported tips (TP120)
in allocation levels that use the
Individual Gross Receipts method
of calculating shortfall allocation or
to report any charged tips, charged
receipts, and service charges of less
than 10 percent paid as wages to
employees added in Gross Receipts
Allocation (TP20.3).

Payroll User Guide Chapter 41 Reports: Tips 617

Recording Gross Receipts for Individual Employees
Use Employee Gross Receipts Allocation (TP20.2) to record gross receipts
for individual employees reporting in more than one allocation level.

Need More Details? Check out the following concepts:

• "What is the Individual Gross Receipts Method?" on page 610

STEPS To record gross receipts for individual employees

1. Access Employee Gross Receipts (TP20.2).
2. Complete the form. Consider the following Þelds.

Employee Select the employee whose gross receipts you

want to record or display.On inquiry, records
for all allocation levels display for the selected
employee.
Position To To begin an inquiry with a speciÞc date, type the
date.
Process Level If the gross receipts for the employee are
associated with a process level allocation level,
select a process level.
Department If the gross receipts for the employee are
associated with a department allocation level,
select a department.
Shift If the gross receipts for the employee are
associated with a shift allocation level, select a
shift.
Gross Receipts Type the employee’s gross receipts for this
transaction.
Date Type the transaction date. If you do not type a
date, the system date defaults.

Adding Allocation Level Gross Receipts for the Individual

Gross Receipts Method
On Gross Receipts Allocation (TP20.3), the application compares the gross
receipts you add on this form for the selected allocation level, with the total of
the individual gross receipts you add in Gross Receipts by Allocation Level
(TP20.1) or Employee Gross Receipts Allocation (TP20.2) for the same date
and allocation level, to determine if they are in balance.
Use Gross Receipts Allocation (TP20.3) to create gross receipts records to
use in the Individual Gross Receipts method of calculating shortfall allocations
for speciÞc allocation levels.
– or –

618 Chapter 41 Reports: Tips Payroll User Guide

 Use this form to record charged tips, charged receipts, and service charges
of less than 10% paid as wages to employees. The application uses this
information for year-end federal reporting. This method requires daily
TP20.1,2,3,4 records for gross receipts associated with a single, speciÞc date.
This daily record can be created using POS Gross Receipts Interface (TP125).

STOP Select Yes in the Control Totals Þeld on Company Allocation

(TP00.1) for total gross receipts added for an allocation level for any given
time period. Balance these Þgures with the individual gross receipts added
for that time period and allocation. If you use this option, all allocation levels
deÞned for the selected company are affected. For more information, see
"Setting Up Tips" on page 197.

Need More Details? Check out the following concepts:

• "What is the Individual Gross Receipts Method?" on page 610

STEPS To add allocation level gross receipts for the individual

gross receipts method
NOTE For year-end 1. Access Gross Receipts Allocation (TP20.3).
federal reporting,
on Gross Receipts 2. Select a Company, Process Level, Department, or Shift to record gross
Allocation (TP20.3) you receipts for a Company, Process Level, Department, or Shift.
can add charged tips,
charged receipts, and
service charges of less
than 10 percent paid as
wages to employees.
TIP Information in the 3. Complete the form. Consider the following Þelds.
Charged Tips, Charged
Receipts, and Service Date Type the transaction date. If you do not type a
Charges Þelds is not
required for shortfall date, the application date defaults.
allocation calculation,
but provides information This Þeld is required with form action Inquire.
for year-end federal If you use the Individual Gross Receipts method
reporting.
and select Yes in the Control Totals Þeld in
Company Allocation (TP00.1), the gross receipts
you add on this form for the selected allocation
level must equal the total of the gross receipts you
add for all employees in the selected allocation
level, or you cannot release records.
To release the gross receipts records, type a date
in the Release Date Þeld and select the Release
function.
Gross Receipts Type the gross receipts for the allocation level
and date entered.
Charged Tips Type the amount of charged tips for the allocation
level and date entered.

Payroll User Guide Chapter 41 Reports: Tips 619

 Charged Receipts Type the allocable charged receipts for the
allocation level and date entered.
Service Charges Type the service charges of less than 10 percent
paid as wages to employees for the allocation
level and date entered.

4. Choose the Add form action to Add the form.

Related Reports and Inquiries

To Use
Report the gross receipts of Gross Receipts Edit by Employee
employees who report tips in (TP120)
allocation levels that use the
Individual Gross Receipts method
of calculating shortfall allocation, or
to report any charged tips, charged
receipts, and service charges of less
than 10 percent paid as wages to
employees added on Gross Receipts
Allocation (TP20.3).

Calculating Tip Shortfall Allocations

Run Shortfall Allocation Calculation (TP100) to calculate the year-to-date
shortfall allocation for employees reporting tip income in the company,
process level, and year selected.
There are three basic ways to run Shortfall Allocation Calculation (TP100):
• Calculate year-to-date tip shortfall allocation and update the summary
records
• Calculate tip shortfall allocation for a period of time deÞned in the report
parameters
• Calculate the tip shortfall allocation at year-end

STOP Before you choose the company in the Company Þeld on

Shortfall Allocation Calculation (TP100), the company must be deÞned
on Company Allocation (TP00.1) as an allocation level. For more
information, see "Setting Up Tips" on page 197.

620 Chapter 41 Reports: Tips Payroll User Guide

 Need More Details? Check out the following concepts:
• "What is the Individual Gross Receipts Method?" on page 610
• "How do I Calculate Shortfall Allocation for Year End Reporting?"
on page 611

STEPS To calculate year-to-date tip shortfall allocation and

update the summary records
1. Access Shortfall Allocation Calculation (TP100).
2. Select a Company and Process Level to calculate the shortfall allocation.
3. Complete the form. Consider the following Þelds.

Date In the Beginning Date Þeld:

Type mm/dd/yy (yy being the year for which you
want to calculate year-to-date shortfall allocation)
– or –
Leave the Þeld blank and mm/dd of the year you
deÞne in the End Date Þeld defaults.
In the End Date Þeld:
Type the date through which you want to calculate
the year-to-date shortfall allocation.
If this date is greater than the last year-to-date
calculation date, the application performs the
calculation and updates the allocation and
employee tips summary records. If not, the
application performs the calculation but does
not update the allocation and employee tips
summary records.
Report Option The Report Option Þeld defaults to a value of Y
(Print Report).
If you do not want to print a report but want to
calculate new year-to-date records for viewing on
the inquiry forms, select N (Do Not Print Report).
Report Sequence Select the value determining the employee
sequence of the report.
If you do not select an employee sequence
option, the sequence deÞned in the Print Order
Þeld of Company (HR00.1) for the selected
company defaults.

Payroll User Guide Chapter 41 Reports: Tips 621

 Update In the Update Þeld, select N (Not YE Update).
Once you run Shortfall Allocation Calculation
(TP100) using the Y (YE Update) option, you
can no longer access the records used in the
calculation for further calculation or TP100
reporting.

4. Choose the Submit form action to submit the report.

STEPS To calculate tip shortfall allocation for a period of time

deÞned in the report parameters
1. Access Shortfall Allocation Calculation (TP100).
2. In the Beginning Date Þeld, type the beginning date of the period for
which you want to calculate the shortfall allocation. If you do not type a
date in the Beginning Date Þeld, mm/dd of the year deÞned in the End
Date Þeld defaults.
NOTE If the date you 3. In the End Date Þeld, type the date through which you want to calculate
type in the End Date the shortfall allocation.
Þeld is greater than
the last year-to-date 4. The Report Option Þeld defaults to a value of Y (Print Report). If you do
calculation date, and not want to print a report, but you want to calculate new year-to-date
the Beginning Date records in viewing on the inquiry forms, select N (Do Not Print Report).
Þeld value is something
other than mm/dd, the 5. In the Update Þeld, select N (Not YE Update).
application performs the 6. Choose the Submit form action to submit the report.
calculation, updates the
tips summary records,
and produces a report
reßecting the year-
to-date calculation in
addition to the report
that reßects the period
deÞned.

STEPS To calculate the tip shortfall allocation at year-end

1. Access Shortfall Allocation Calculation (TP100).
2. In the Beginning Date Þeld, type mm/dd/yy (yy being the year for which
you want to calculate year-end shortfall allocations)
– or –
Leave the Þeld blank and mm/dd of the year deÞned in the End Date
Þeld will default.
3. In the End Date Þeld, type the date the year-to-date should calculate
through.
4. In the Report Option Þeld, select Y (Print Report).
5. In the Update Þeld, select Y (YE Update) to update the tips status ßags
to “close”. Once the records are closed by running Shortfall Allocation
Calculation (TP100) using the Y (YE Update) option, you can no longer
access the records used in the calculation for that year.
6. Choose the Submit form action to submit the report.

622 Chapter 41 Reports: Tips Payroll User Guide

 Related Reports and Inquiries
To Use
Inquire on year-to-date gross Gross Receipts Inquiry (TP40.1)
receipts for a speciÞc allocation level
and year
Inquire on year-to-date tip allocation Tips Allocation Inquiry (TP40.2)
amounts for employees in speciÞc
allocation levels
Inquire on year-to-date shortfall Employee Shortfall Allocation
allocation for a speciÞc employee (TP40.3)
Inquire on the shortfall allocation Allocation Processing Status
status for the selected company (TP40.4)
Display year-to-date totals for Year to Date Totals (TP40.5)
allocated tips, tip shortfall, reported
tips, gross receipts, and hours
worked, from all allocation levels
in which the selected employee
reported tip income when the Totals
form action is selected
Produce a report by home allocation Year End Shortfall Report (TP210)
level showing shortfall activity for
each employee in each allocation
level in which the employee reported
tip income during the deÞned year
after running TP100 with Yes in the
Update Þeld
Produce a report by allocation level Shortfall Allocation Report (TP220)
that lists shortfall information for
each employee in every allocation
level in which the employee reported
tip pay
Produce a summary of gross Year End Allocation Summary
receipts for the allocation level, Report (TP230)
charged receipts, charged tips,
service charges, reported direct &
indirect tip income, and allocation tip
shortfall
Create a Þle containing information Form 8027 Magnetic Media (TP231)
for Þling magnetic media

Calculating Tip Tax Credit

Run Tax Credit Calculation (TP140) to calculate and report tips in excess of
those deemed “wages” for meeting the federal minimum wage requirement,
and to calculate the Social Security and Medicare tax on the excess tips
amount.

Payroll User Guide Chapter 41 Reports: Tips 623

 Run Tax Credit Calculation (TP140) is not an update report so you can run the
report as often as necessary.

Need More Details? Check out the following concepts:

• "How do I Calculate Tax Credit?" on page 611

STEPS To calculate tip tax credit

1. Access Tax Credit Calculation (TP140).
NOTE Voids, manual 2. Select the Company, Process Level, Department, Job Code, and
payments, and Employee Group for which you want to perform a tax credit calculation.
adjustments are
included in the
calculation of the If Then
tax credit. The employee is included Tax Credit Calculation (TP140)
in the company, process level, selects the employee for the tax
department, job code, or employee credit calculation.
group
– or –
The employee has tip records
You select a speciÞc process level only records associated with
that process level are reported
and included in the tax credit
calculation.
You select a speciÞc department only records associated with that
department and process level are
reported and included in the tax
credit calculation.
You select a speciÞc job code only records associated with that
job code are reported and included
in the tax credit calculation.
The job code must be deÞned on
Job Code (HR06.1) as a tipped
job eligible to include in the tax
credit calculation. The Tips Þeld on
HR06.1 must have a value of C.

624 Chapter 41 Reports: Tips Payroll User Guide

 The selected records for an employee are sorted by process level, work state,
department, and job code.
1. Complete the form. Consider the following Þelds.

Date To include in the tax credit calculation, the time

records with payment dates within a speciÞc date
range only, type the beginning date of the desired
date range.
To include in the tax credit calculation, the time
records within a speciÞc date range only, type the
ending desired date range.
If you deÞne a date range, only records that fall
within the date range and that meet the other
deÞned criteria are reported and included in the
tax credit calculation.
Social Security Type the Social Security rate to use in the tax
Rate credit calculation.
Medicare Rate Type the Medicare rate to use in the tax credit
calculation.
Pay Class Select the pay class that represents the kinds
of pay you want to include in the tax credit
calculation.
To include in the calculation only certain kinds
of pay, deÞne a pay class and associate the
appropriate pay summary groups with that pay
class.

NOTE If you select a pay class, the application

includes in the calculation the amounts from
pay summary groups associated with the
selected pay class (excluding tips) only. The
application reads the pay summary group ßags
to determine whether amounts associated with
the pay summary group are included, excluded,
or subtracted from the pay class totals. If you do
not select a pay class, the application totals all
wages.

Report Sequence Select the value that determines the sequence

you want the report to print in.

Payroll User Guide Chapter 41 Reports: Tips 625

 Summary Option Select the option that determines the kind of data
included in the report.
Select D (Employee Detail) to include in the
report all tax credit calculation data for employees
meeting the report parameters.
Select T (Employee Totals) to include in the
report, the tax credit calculation totals only for
employees meeting the report parameters.
Select S (Sort Level Totals) to include in the
report, the sort level totals only for the report
parameters. Sort levels are determined by the
value in the Report Sequence Þeld.
Employee Select the value that determines the employee
Sequence sequence in which the data prints on the report.
If you do not deÞne an employee sequence, the
report prints in the order deÞned in the Print
Order Þeld in Company (HR00.1) for the selected
company.

2. Choose the Submit form action to submit the report.

Follow up
The tax credit report produced by Tax Credit Calculation (TP140) offers the
following sort options:
• Process Level, Department, Job, Employee
• Process Level, Department, Employee
• Job, Employee
• Employee
• Process Level, Work State, Department, Job, Employee
The report provides the totals for the following columns: Payment Date,
Wages, Hours, Minimum Wage Due, Tip Credit, Tips, Excess Tips, and Tax
Credit by sort sequence.
If the excess tips for Social Security and Medicare are different, a second line
prints on the report for the detail line and the total lines.

626 Chapter 41 Reports: Tips Payroll User Guide

Chapter 42

Reports: Payroll Government

This chapter describes how to process government reports within the Lawson
Payroll application.

Payroll User Guide Chapter 42 Reports: Payroll 627

Government
Concepts in this Chapter
TIP To skip directly The following concepts provide background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 630 • "What are Excess Wages?" on page 628
• "Why might I Need to Adjust Weeks Worked?" on page 628
• "What do I Include in Unemployment Reporting?" on page 628
• "What is the Canada Record of Employment?" on page 629

What are Excess Wages?

Federal unemployment excess wages (FUTA) are wages that would have
been subject to tax but exceed the federal wage limit for the payroll year.
State unemployment excess wages (SUI) are the wages that would have
been subject to tax but exceed the state wage limit for the payroll year.
Each payroll cycle, Payroll determines whether the wages paid in that payroll
cycle are taxable for unemployment or excess wages for unemployment.

Why might I Need to Adjust Weeks Worked?

Some states require reporting of weeks worked by employee. You can specify
the Unemployment Continuation form to print weeks worked on the Quarterly
Continuation form. The application also reports weeks worked for speciÞc
states when you run the Unemployment Tape.
Incorrect time entry can result in miscalculated weeks worked for an
employee. For example, 40 hours were entered in a single time record when
32 hours were actually worked in one week, and 8 hours were worked in
another week. You can make adjustments to weeks worked on the Weeks
Worked Adjustment form.

What do I Include in Unemployment Reporting?

When you report unemployment, perform the following steps in the order
listed:
1. Balance Quarterly Unemployment Data and Report Excess Wages
• Taxable + Excess = Total Gross
• Taxable + Rate(s) = Total UC Deductions
• Ensure there are no negative wages
2. Calculate and Adjust Weeks Worked
3. Verify Social Security Numbers
4. Verify Quarterly Reporting Information
5. Create Forms, Files, and Tapes

628 Chapter 42 Reports: Payroll Government Payroll User Guide

What is the Canada Record of Employment?
In Canada, employers must issue a Record of Employment (ROE) when an
employee has an interruption of earnings by either voluntary or involuntary
termination or lay-off, has seven consecutive calendar days without work
and insurable earnings, or has a fall in insurable earnings below 60 percent
of normal weekly earnings. The seven day rule does not apply to real estate
agents or commissioned employees.
In general, employers must issue a ROE within Þve calendar days of the
interruption of earnings or of the date the employee learns of the interruption.
Employers must also issue an ROE if requested by the employee and there
has been an interruption of earnings, or if requested by Human Resources
Development Canada (HRDC).
The employer must report on the ROE the employee’s gross earnings for
the previous 27 weeks and the total worked for the previous 53 weeks if the
employee has worked a year or more. The employer must report the earnings
and hours available if the employee worked less than a year.

Payroll User Guide Chapter 42 Reports: Payroll 629

Government
Procedures in this Chapter
The following procedures explain how to create government reports.
"Balancing Quarterly Unemployment When you create unemployment
Data and Reporting Excess Wages" reports, you must Þrst balance
on page 630 quarterly unemployment data, and
report excess wages.
"Calculating and Adjusting Weeks Calculate and adjust the number of
Worked" on page 633 weeks worked for the quarter for
each employee.
"Verifying Social Security Numbers Verify Social Security Numbers for
for Employees" on page 634 employees using the Enumeration
VeriÞcation System (EVS).
"Verifying Quarterly Reporting Verify quarterly reporting information.
Information" on page 634
"Generating an Unemployment Generate an unemployment
Continuation Form" on page 637 continuation form attached to state
quarterly unemployment remittance
forms.
"Generating a File for Unemployment Generate a Þle for unemployment
Magnetic Media" on page 638 magnetic media of quarterly
information for state reporting.
"Transferring the Final File to Transfer the Þnal Þle to diskette or
Diskette or Tape" on page 639 tape as recommended by your state.
"Generating a File for New Hire Generate a Þle for new hire magnetic
Magnetic Media" on page 641 media for state reporting.
"Completing Canada Record of Complete Canada Record of
Employment" on page 642 Employment for use in producing
a Record of Employment (ROE)
manually.
"Printing W-2 Forms" on page 644 Print W-2 Forms and create
magnetic media, typically after the
year-end close.

Balancing Quarterly Unemployment Data and Reporting

Excess Wages
When you create unemployment reports, you must Þrst balance quarterly
unemployment data.
Use the Unemployment Continuation Form (PR291) to produce a listing
of data required on continuation forms for quarterly state unemployment
reporting. The report includes the employee name and Social Security
Number along with the report items you select.

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 Use Quarterly Report (PR290) to produce a report of employees who have
withholding deductions associated with speciÞc BSI tax authorities. The report
includes quarterly gross wages, year-to-date gross wages, quarterly taxable
wages, year-to-date taxable wages, quarterly taxes paid, and year-to-date
taxes paid for each employee for the payroll quarter and year you specify in
the report parameters.
Payroll calculates excess wages for unemployment deductions in each payroll
cycle. Use Adjustment (PR82.1) to make adjustments to excess and taxable
wages.

Need More Details? Check out the following concepts:

• "What are Excess Wages?" on page 628
• "What do I Include in Unemployment Reporting?" on page 628

STEPS To balance quarterly unemployment data and report

excess wages
1. Access and run Payment Detail Listing (PR260), Quarterly Report
(PR290), and Unemployment Continuation Form (PR291).
2. Compare the Payroll Register (PR141) totals for the payroll and
adjustments cycles in the quarter to the Payment Detail Listing (PR260)
for the appropriate date range and the Quarterly Report (PR290) for the
quarter. For more information, see "Performing Periodic, Month-End,
Quarter-End, or Year-End Balancing" on page 605.
3. Access the following reports to report excess wages:

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Government
 Use For
Earnings and Deductions Payments in which all wages
Calculation (PR140), Payroll are excess wages for an
Register (PR141), and Payment unemployment deduction. The
Detail Listing (PR260) application reports the deduction
with other deductions, but does
not report the amount or taxable
wages.
Unemployment Continuation Form Excess wages by employee, and
(PR291) to optionally print the wages on
edit reports and forms for the
quarter.
Unemployment Tape (PR292) Excess wages by employee to
report on the magnetic media Þle
according to state speciÞcations.
Balancing Report (PR294) Excess wages by tax authority.
HR Writer Title Creation (HR65.1) Forms to create a report using the
Payment Deduction (PD) option to
list taxable and excess wages by
employee and payment.

4. Access Adjustment (PR82.1) to make adjustments.

5. Perform necessary adjustments. For more information, see "Creating
Miscellaneous Adjustments" on page 499.

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Calculating and Adjusting Weeks Worked
Calculating the number of weeks worked is the second step in unemployment
reporting. You can verify the weeks worked by viewing and changing them
in Weeks Worked Adjustment (PR83.1). If you make adjustments using
PR83.1, re-run Weeks Worked Calculation (PR289) to recalculate the number
of weeks worked.
Weeks Worked Calculation (PR289) calculates the number of weeks worked
for the quarter for each employee. The calculation is based on the employee’s
pay plan work-period dates and the values in the Maximum Number of Weeks
Þelds, the Work State Þeld, and the Base Wage Þeld.
This form reads history records to determine how many weeks each employee
has actually worked.

STOP Before you can view and adjust weeks worked using Weeks Worked
Adjustment (PR83.1), you must Þrst run Weeks Worked Calculation (PR289).
For more information, see "Calculating and Adjusting Weeks Worked" on
page 633.

Need More Details? Check out the following concepts:

• "Why might I Need to Adjust Weeks Worked?" on page 628
• "What do I Include in Unemployment Reporting?" on page 628

STEPS To calculate and adjust weeks worked

1. Access Weeks Worked Calculation (PR289).
2. Run the report. When you run Weeks Worked Calculation (PR289)
in Update mode, Payroll calculates the number of weeks worked and
updates Weeks Worked Adjustments (PR83.1).
3. Access Weeks Worked Adjustment (PR83.1) if the number of weeks
worked needs adjusting.
4. Choose the Inquire form action to view the number of weeks worked for a
payroll year and quarter before you adjust the number of weeks worked
for a speciÞc employee.
5. Verify the information on Weeks Worked Calculation (PR289) with Weeks
Worked Adjustment (PR83.1).
6. To recalculate the number of weeks worked, re-run Weeks Worked
Calculation (PR289) after making adjustments on Weeks Worked
Adjustment (PR83.1). By performing this step, the weeks worked
calculation is reset to what the application calculates and adjustments
made with Weeks Worked Adjustment (PR83.1) are “lost”.

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Government
Verifying Social Security Numbers for Employees
The Social Security Administration (SSA) provides the Enumeration
VeriÞcation System (EVS) service to verify that a given Social Security
Number is assigned to the individual whose name you submit. Verifying
employee Social Security Numbers ensures that your employee records
are correct for completing W-2 forms and reporting wages to government
agencies. To use this service, an employer must Þrst be assigned a requestor
ID code by the SSA.

Need More Details? Check out the following concepts:

• "What do I Include in Unemployment Reporting?" on page 628

STEPS To Verify Social Security Numbers for Employees

1. Access Enumeration VeriÞcation (PR293).
2. Select Create in the Report Option Þeld. Payroll creates a Þle named
evs-ssn in the appropriate directory.
UNIX directory:
$LAWDIR/print/username/jobname/step nbr/evs-ssn
Windows NT directory:
%LAWDIR%\print\username\jobname\step nbr\evs-ssn
LAWDIR/print/username/jobname/step nbr/job#//evs-ssn
3. You can send the magnetic media Þle to the SSA for review. The SSA will
return the Þle back to you.
4. When you receive a Þle back from SSA, copy it to the appropriate
directory.
UNIX directory:
$LAWDIR/productline/work/SSN-EVS/SSN-EVS
Windows NT directory;
%LAWDIR%\productline\work\SSN-EVS\SSN-EVS
LAWDIR/productline/work/SSN-EVS/SSN-EVS
5. Select Verify or Summary in the Report Option Þeld on Enumeration
VeriÞcation (PR293).

Verifying Quarterly Reporting Information

Use United States Tax Authority (PR06.1) and Employee Taxes (PR13.1) to
verify quarterly reporting information.

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 Need More Details? Check out the following concepts:
• "What do I Include in Unemployment Reporting?" on page 628

STEPS To verify quarterly reporting information

1. Access United States Tax Authority (PR06.1).
2. Verify that employer account numbers are deÞned for each state for which
you Þle quarterly reports.
3. Choose the Addl EIN (Employer IdentiÞcation Number) button to open
the Additional EIN subform.
4. Verify that the employer account numbers are deÞned for process levels
on the Additional EIN subform.
5. Choose the State Rpt button to open the State subform.
6. Verify that additional information for the state associated with the tax
authority is deÞned.
7. The following states require additional employer information for quarterly
reporting.

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 California New Jersey
District of Columbia New Mexico
Florida New York
Illinois North Carolina
Indiana North Dakota
Kentucky Pennsylvania
Maine Tennessee
Montana Texas
Nevada West Virginia

8. Access Employee Taxes (PR13.1).

9. Choose the State Rpt button to open the State subform, and verify that
additional information required by the employee’s work state is deÞned.
The following states require additional employee information for quarterly
reporting.

Alaska Massachusetts
Arizona Minnesota
Arkansas Missouri
California New Jersey
Colorado North Carolina
Florida Ohio
Illinois Oregon
Indiana Pennsylvania
Iowa Texas
Maine Wyoming
Michigan

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Generating an Unemployment Continuation Form
Payroll provides a report that produces data for the unemployment
continuation forms that are attached to state quarterly unemployment
remittance forms.

Need More Details? Check out the following concepts:

• "What do I Include in Unemployment Reporting?" on page 628

STEPS To generate an unemployment continuation form

1. Access Weeks Worked Calculation (PR289).
2. Run the report if you intend to print the Weeks Worked on the
Unemployment Continuation Form (PR291).
3. If required, access Weeks Worked Adjustment (PR83.1) to adjust weeks
worked.
4. Access Unemployment Continuation Form (PR291).
5. Choose among the following options to produce edit reports:
• Option 1 produces a detail edit listing
• Option 2 produces a summary edit listing
• Option 3 produces a negative wages report
The negative wages report is important to ensure negative wages
are not reported for an employee.
6. Choose among the following continuation form options:
• Option 4: Continuation Form - Moore
• Option 5: Continuation Form - Wallace
• Option 6: Style A Continuation Form - Wallace
Unemployment Continuation Form (PR291) prints the employee’s Social
Security Number and name with options to include the following information:
Field Information Reported
SS Taxable Wages Social Security wages up to the
annual limit
Total Wages All wages that would have been
taxable for the work state (based on
BSI-Tax system)
Taxable Wages Wages taxable up to the state limit
Excess Wages Wages in excess of the state limit
Weeks Worked Number of weeks worked

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Generating a File for Unemployment Magnetic Media
Within Payroll, you can create a magnetic media Þle of quarterly
unemployment information for state reporting. When you run Quarterly UI
Mag Media (PR292), Payroll creates an output Þle called Þnal. The Þnal
Þle contains the quarterly unemployment information the state requires you
to report.

STOP Check with your state organization to determine what magnetic

media format your state accepts.

Need More Details? Check out the following concepts:

• "What do I Include in Unemployment Reporting?" on page 628

STEPS To generate a Þle for unemployment magnetic media

IMPORTANT Before you generate the Þle for unemployment magnetic

media, unemployment deductions must exist, and you must have run
Quarterly UI Mag Media (PR292) to create a Þle with unemployment data.
This also applies to non-proÞt organizations whose unemployment is
self-funded.

1. Access Quarterly UI Mag Media (PR292) for the appropriate work state.
NOTE Quarterly UI 2. Run the report. The report is placed in:
Mag Media (PR292)
places negative wages Unix directory:
on the error report.
Negative wages do $LAWDIR/print/username/jobname/step/Þnal
not appear in the Þle for – or –
unemployment magnetic
media. Windows NT directory:
%LAWDIR%/\print\username\jobname\step\Þnal
LAWDIR/print/username/jobname/step/job#/Þnal
The parameters and work state you select on Quarterly UI Mag Media
(PR292) determine the format in which Payroll creates the magnetic
media Þle. Additional information you deÞne on the State Rpt subform of
both Employee Taxes (PR13.1) and Tax Authority (PR06.1) is included in
the Þle based on the state selected.
An employer account number deÞned on Quarterly UI Mag Media (PR292)
overrides the account number deÞned on Tax Authority (PR06.1).
3. Transfer the formatted Þle to the kind of magnetic media the state accepts.
For more information, see "Transferring the Final File to Diskette or Tape"
on page 639.

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Transferring the Final File to Diskette or Tape
When you run Quarterly UI Mag Media (PR292), you create a formatted Þle
that you can transfer to diskette. You use parameters on PR292 to create
the Þle in the correct format.
On the Quarterly UI Mag Media (PR292) parameters screen, you formatted
the Þle in one of three ways:
• Sequential format
• UNIX-standard line sequential (CR)
• MS-DOS and Windows standard (CR/LF)

STOP Consult with the state you report to for details on the kind of required
format.

Need More Details? Check out the following concepts:

• "What do I Include in Unemployment Reporting?" on page 628

STEPS To transfer the Þnal Þle to diskette as a sequential Þle, as

a UNIX-Standard Sequential (CR) Þle, or as an MS-DOS
and Windows Standard (CR/LF) Þle
1. Transfer the Þnal Þle to diskette using the naming convention required
by the state.

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Government
 Use an MS-DOS or Windows compatible PC to create the diskette. A
client-side FTP program is recommended for best results.
2. For sequential Þles or UNIX-standard sequential (CR) Þles, when using
an FTP client to transfer the Þle to a PC diskette, be sure to transfer in
Binary mode to transfer the Þle accurately from UNIX to DOS.
– or –
For MS-DOS and Windows standard (CR/LF) Þle, when using an FTP
client to transfer the Þle to a PC diskette, be sure to transfer in ASCII
mode to transfer the Þle accurately from UNIX to DOS.

STEPS To transfer the Þnal Þle to tape

• Transfer the Þnal Þle to the appropriate tape device.

Related Reports and Inquiries

To Use
Display summary information Payment Inquiry (PR50.2)
associated with employee payment
records, such as payment number,
payment date, gross earnings, total
deductions, and net pay
Display detail information associated Pay Stub Inquiry (PR51.1)
with employee payment records,
such as payment number,
payment date, gross earnings,
total deductions, and net pay
Produce a report of employee Employee Deduction Report
deduction information (PR276)
Produce a report of employees Quarterly Report (PR290)
who have withholding deductions
associated with speciÞc BSI tax
authorities
Produce a listing of data required on Unemployment Continuation Form
continuation forms for quarterly state (PR291)
unemployment reporting
Produce a report for use in balancing Balancing Report (PR294)
wages and deductions by tax
authority and tax category at any
time during the payroll year
Produce W-2 forms for government W-2 Forms (PR297)
reporting, an edit report in either
detail or summary format, or a
negative wage report showing all
employees with negative wages for
the year
Produce a list of payments Payment Detail Listing (PR260)

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Generating a File for New Hire Magnetic Media
Within Payroll, you can create a magnetic media Þle of new hire information for
state reporting. When you run New Hire Reporting (PR296), the application
creates a Þle called NEWHIRE. The NEWHIRE Þle contains the new hire
information the state requires you to report.
If a state requires the IBM Standard Label, New Hire Reporting (PR296) also
creates the Þles N-IBMSL-H, H-IBMSL-TM, and N-IBMSL-T. These Þles
contain the header and trailer information for the IBM Standard Label.
After you run New Hire Reporting (PR296), you must transfer the Þle to the
appropriate medium.

STEPS To Generate a File for New Hire Magnetic Media

1. Access New Hire Reporting (PR296).
2. Run the report for the appropriate state.
3. The report places the Þles in the appropriate locations.
• $LAWDIR/productline/work/NEWHIRE/NEWHIRE
• $LAWDIR/productline/work/N-IBMSL-H/N-IBMSL-H
• $LAWDIR/productline/work/N-IBMSL-T/N-IBMSL-T
• $LAWDIR/productline/work/N-IBMSL-TM/N-IBMSL-TM
Windows NT directories:
• %LAWDIR%\productline\work\NEWHIRE\NEWHIRE
• %LAWDIR%\productline\work\N-IBMSL-H\N-IBMSL-H
• %LAWDIR%\productline\work\N-IBMSL-T\N-IBMSL-T
• %LAWDIR%\productline\work\N-IBMSL-TM\N-IBMSL-TM
• LAWDIR/productline/work/NEWHIRE/NEWHIRE
• LAWDIR/productline/work/N-IBMSL-H/N-IBMSL-H
• LAWDIR/productline/work/N-IBMSL-T/N-IBMSL-T
• LAWDIR/productline/work/N-IBMSL-TM/N-IBMSL-TM
4. Refer to the end of the listing created by New Hire Reporting (PR296) to
Þnd out whether the state accepts tapes or diskettes.

IMPORTANT If a state accepts both tape and diskette, format and

transfer the Þle onto diskette. Some states do not accept tape or diskette
for new hire reporting. In most of these cases, the printed New Hire
Reporting (PR296) is acceptable.

NOTE Contact the 5. If you are transferring New Hire Reporting (PR296) to diskette, convert
state you report to the Þle to one of three formats:
for details on the kind
of format required. • Sequential format
Use an MS-DOS or • UNIX-standard line sequential (CR)
Windows compatible PC
to create the diskette. A • MS-DOS and windows standard (CR/LF)
client-side FTP program
is recommended for best
results.

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Completing Canada Record of Employment
Use ROE - Canada (PR282) to generate a report that contains the information
needed to complete a manual ROE (Canada Record of Employment).

STOP Before completing ROE - Canada (PR282), you must complete the
setup of Pay Plan (PR20.1), Employee (HR11.1), and HR Codes (HR04.2) or
Personnel Action Reason (HR 83.5). For more information, see the Human
Resources User Guide. For more information, see "Setting Up Pay Structure"
on page 29. For more information, see "Assigning Employee Pay" on page
214.

Need More Details? Check out the following concepts:

• "What is the Canada Record of Employment?" on page 629

STEPS To complete Canada Record of Employment

1. Access ROE - Canada (PR282).
2. Complete the Employee tab. This information is used to complete Box
9 of the ROE. Address information for the employees comes from the
Employee (HR11.1) Address tab. Consider the following Þelds.

Employee Contains the employee number. Each person

employed by the company is assigned a unique
number.
The application uses the employee number to
correlate all of the information related to that
person.
Personnel Action This Þeld is used to determine the reason for the
ROE. If none is speciÞed, a reason will not be
determined.
Use reason code attached to the personnel
action that interrupted the earnings to complete
Box 16 of the ROE.
On the Box 16 tab, map the personnel action
reason codes to the ROE reason codes to
complete Box 16 of the ROE.
Expected Recall Select the value that indicates the status of the
recall date. If no value is speciÞed, Payroll does
not return information for Box 14 of the ROE.
If you select Yes, and Recall Date Þeld is
indicated, the value attached to the user Þeld
from Employee (HR11.1) is returned. Use this
value to complete Box 14 of the ROE.

642 Chapter 42 Reports: Payroll Government Payroll User Guide

 Special Calc This Þeld is used infrequently. If necessary, use
this Þeld to determine if you need to perform
any special calculations on the earnings of the
employee. The special calculation is typically
performed on commission or contract employees.

3. Complete the Main tab. Consider the following Þelds.

Insurable Hours This Þeld indicates the pay class representing the
Pay Class correct Insurable Hours and dollars.
Recall Date Select the name of the user Þeld that will return
a recall date. If you do not specify a date, no
information for Box 14 of the ROE is returned by
the application.
If you select the name of the user Þeld, you
must select Yes in the Recall Date Þeld on the
Employee tab.
Use this date to complete Box 14 of the ROE.
French Contains employee’s language if it is other than
the company’s primary language.
Issuer Select the employee number of the person who
is the issuer of the ROE or contact for HRDC.
Complete the work phone number for this
individual on their Employee (HR11.1) record.
Use the name and phone number from PR282 to
complete Box 16 of the ROE.
File Create Select whether or not a you use a Þle to generate
laser ROEs.
Select Yes to generate a report and Þle for the
HRDC laser software.
Select No to generate a report.

4. Complete the Box 16 tab.

On this tab, map the personnel action reason codes to ROE reason codes
in boxes A-P. Specifying both the personnel actions (with the personnel
action reason codes attached) on the Employee tab, and mapping the
personnel action reason codes to the ROE reason codes must be done
for Lawson to return the reason for the interruption of earnings on the
report produced by PR282.
If you choose not to map the reason codes or use personnel action reason
codes, Lawson will be unable to return a reason for the ROE.
5. Complete the Box 17 tab and Box 17 cont tabs.

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Government
 Supply pay classes on these two tabs to report earnings that are paid
solely during or in anticipation of the Þnal pay period, or payable at a
later date for an employee. If the amounts you reported in Box 17 are
insurable, include them in Box 15A or 15B of the ROE, or explain the
amounts in Box 18.
6. Choose the Submit form action to submit the report.

Followup
The application uses the addresses associated with the process level on
the time records (report entity) to create the employer’s name and address
(Box 4 of the ROE). The application creates a separate ROE for each unique
combination of Report Entity, Process Level, and Business Number Code
that is found. Because of this structure, there is only one process level for
each ROE.
The job description from the job code attached to the employee record is
returned as “Occupation”. Use this description to complete Box 13 of the ROE.
If changes to an employee’s pay frequency are logged in history and the
employee has a change in pay frequency during the reporting period, multiple
ROE’s are generated.
You must manually determine and enter the following required information
on the ROE form or HRDC software:
• Contact person or name of person issuing ROE if the Issuer Þeld is not
complete on PR282, or the work phone number for the Issuer Þeld is not
complete on Employee (HR11.1)
• Statutory holidays for which amounts are owed that occur after the last
day paid
• Earnings for which amounts are owed that are not mapped to a pay
class for Box 17
• Paid sick leave, maternity leave, paternal leave, or group wage loss
indemnity earnings that occur after the last day worked and are reported
in Box 19
• Comments to appear in Box 18

Printing W-2 Forms

Use W-2 Forms (PR297) to produce edit reports, negative wage reports, or to
print W-2 forms. This form is not an update report, so you can run it anytime
during the year. PR297 produces an edit report in either detail or summary
format that can be used to balance year-end totals. DeÞne the parameters for
PR297 on W-2 Parameters (PR27.1). For more information on Printing W-2
forms, see the Payroll Year End Procedures Manual.

644 Chapter 42 Reports: Payroll Government Payroll User Guide

 Creating the W-2 forms and magnetic media Þle is typically completed in the
middle of January after the year-end close, following the processing of a
few payrolls for the new year.

IMPORTANT Lawson recommends you Þrst run W-2 Forms (PR297) using
the edit report options to identify any potential problems before printing the
actual W-2 forms. You can run PR297 as often as necessary because it is not
an update report. You can run it after your Þrst payroll cycle of the new year.

STOP If you are a Lawson Software Tips user, prior to creating the Þnal W-2
forms, you must run the Shortfall Allocation Calculation (TP100) in Update
to update the shortfall allocation for employees. Continue by processing
Magnetic Media (TP231) to create a Þle to copy to tape for reporting of the
form 8027 information. For more information, see "Setting Up Tips" on page
197.

STEPS To Print W-2 Forms

1. Access W-2 Parameters (PR27.1).
2. Select and save speciÞc parameters. For more information on selecting
parameters, see the Payroll Year End Procedures Manual.
3. Access W-2 Forms (PR297).
4. Create a trial run of W-2 forms. In the Report Option Þeld, select either
Summary Report or Detail Report.
Payroll creates an error report if it recognizes any errors in the W-2 report
it creates. Review the error report and correct any errors. After you create
the trial run, check the W-2 forms for errors. If there are errors, make
the necessary adjustments to the W-2 data and/or the W-2 parameters
before you print your W-2 forms.

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NOTE W-2 Forms 5. Print your W-2 forms.
(PR297) will not create a
W-2 form for employees
with negative data. IMPORTANT Lawson recommends you print a small test group of W-2
These employees print forms before you print the entire group. If you print a small test group of
on the Error report W-2 forms Þrst, you can ensure that you have set all your software and
with the message, “No
W-2 created, negative hardware parameters correctly.
data exists,” and are
included in the Detail You can print the forms for a Company, Process Level, or a Head Process
and Summary Edit Level.
reports and the Negative
Wage report. Print W-2 forms for Run
Company W-2 Forms (PR297) for a
company.
The report prints W-2 forms for
each employee who had taxable
earnings during the payroll year
you select on W-2 Forms (PR297).
If you use independent process
levels and an employee has
earnings in both an independent
process level and a regular
process level, the report creates
a W-2 for the taxable earnings in
each.
Process Level W-2 Forms (PR297) for a company
and process level.
Payroll prints W-2 forms for
employees who currently have
the process level selected on
Employee (HR11.1).
If an employee has earnings in
multiple process levels, all wages
in the process level you selected
for the employee on Employee
(HR11.1) are reported.
If an employee has earnings in
the process level, but does not
have the process level selected
on Employee (HR11.1), the
application will not print a W-2
form for the employee.

646 Chapter 42 Reports: Payroll Government Payroll User Guide

 Print W-2 forms for Run
Head Process Level W-2 Forms (PR297) for a company
and head process level.
If you select a head process level
on PR297, the report prints W-2
forms for that head process level
only. If an employee had earnings
in multiple dependent process
levels that are attached to an
independent head process level,
the taxable earnings print under
the head process level.

IMPORTANT Because the functionality of a head process level is

different from a process level, Lawson recommends you create all your
W-2 forms using either the process level option or head process level
option. Do not use both options.

6. Back up the W-2 Þle after you print the W-2 forms. The kind of W-2 you
select in the Report Option Þeld on PR297 determines the directory and
and name of the W-2 Þle.

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Government
NOTE Generate the W- 7. Access W-2 Magnetic Media (PR298) to generate a magnetic media Þle.
2 magnetic media for a
company, process level, 8. After you create the magnetic media Þle, you can transfer the Þle in tape
or a head process level. or diskette format. Refer to SSA Publication 42-007-TIB-4 (available from
If you use independent the Social Security Administration) for tape speciÞcations.
process levels and an
employee has earnings
in both an independent Related Reports and Inquiries
process level and a
regular process level, To Use
the application creates
a W-2 record for the Select speciÞc parameters to include W-2 Parameters (PR27.1)
taxable earnings in information in Boxes 10, 11, 12, 13,
each. and 14 of your W-2 magnetic media
Calculate and report tips in excess Tax Credit Calculation (TP140)
of those deemed “wages” for
meeting the Federal minimum wage NOTE This information can be used
requirement and the SS/Medicare to take a tax credit on the corporate
tax on the excess tips amount tax form. This report is not an update
report, so it can be re-run as often
as needed.

Produce a summary of each Year End Allocation Summary

allocation level’s gross receipts, Report (TP230)
charged receipts, charged tips,
service charges, reported indirect NOTE The report shows the number
tips income, reported direct tips of directly and indirectly tipped
income, and allocable tips reporting employees that reported tip income
shortfall summarized in the allocation level.

648 Chapter 42 Reports: Payroll Government Payroll User Guide

Chapter 43

Reports: U.S. and Canada Workers’

Compensation

This chapter describes how to process third party government reports within
the Lawson Payroll application.

STOP For workers’ compensation premiums to calculate correctly, you

must assign the appropriate workers’ compensation classes to affected job
codes, and the job codes must be attached to employee records. For more
information, see "DeÞning U.S. Workers’ Compensation Classes" on page
146. For more information, see "DeÞning Canada Workers’ Compensation
Classes" on page 150.

Payroll User Guide Chapter 43 Reports: U.S. and Canada 649

Workers’ Compensation
Concepts in this Chapter
TIP To skip directly The following concept provides background and conceptual information for
to the procedures, see the procedures within this chapter.
"Procedures in this
Chapter" on page 651 • "How Do I Calculate Workers’ Compensation?" on page 650

How Do I Calculate Workers’ Compensation?

With Payroll, you can calculate workers’ compensation premiums based on
parameters you deÞne on the Workers Compensation Policy and Workers
Compensation ClassiÞcation forms.
You can calculate workers’ compensation premiums on the basis of current
job codes on Employee or on the basis of employee’s job codes at the time
of payment, provided you assigned workers’ compensation classes to job
codes on Job Codes.
To calculate the workers’ compensation premiums, run the workers’
compensation report after payroll is closed. Use the Workers’ Compensation
Report form to report workers’ compensation.

650 Chapter 43 Reports: U.S. and Canada Workers’ Payroll User Guide
Compensation
Procedures in this Chapter
The following procedures explain how to submit third party reports.
• "Submitting United States Third-Party Reports" on page 651
• "Submitting Canada Third-Party Reports" on page 653

Submitting United States Third-Party Reports

You can use Workers' Compensation Report (PR278) to create a report for
manual journal entries to the general ledger in lieu of a company deduction, or
run the report to recalculate the premium amounts periodically. You can use
manual journal entries to adjust entries created by each payroll cycle.

Need More Details? Check out the following concepts:

• "How Do I Calculate Workers’ Compensation?" on page 650

STEPS To submit United States third party reports

NOTE This report does 1. Access Workers' Compensation Report (PR278).
not update the database.
You can re-run it to 2. Calculate the premiums based on the employee’s current job.
accommodate last- – or –
minute changes to
Workers’ Compensation Calculate the premiums based on the speciÞc job stored in history for
classiÞcation rates. each payment.

IMPORTANT These options can result in different calculations, because

an employee’s job history might be different from the current HR11.1
record.

Payroll User Guide Chapter 43 Reports: U.S. and Canada 651

Workers’ Compensation
 Related Reports and Inquiries
To Use
Review the payment inquiry to Payment Inquiry (PR50.2)
view a summary total of wages
and deductions by employee for a
speciÞc quarter
View taxable wages or tax withheld Employee Deduction Report
for speciÞc deductions or deduction (PR276)
classes
NOTE Four Report Options: Report
option 1, Summary = Y provides
summary level totals by process
level/department Report option 1,
Summary = N provides employee
detail with process level/department
breaks Report option 2, Summary
= Y provides one total for the
company Report option 2, Summary
= N provides employee detail
(alpha or numeric) with no process
level/department breaks

Balance gross wages to taxable Balancing Report (PR294)

wages by tax category
Assist in balancing payroll data W2 Forms (PR297)
anytime during the year
NOTE Choose from report options
of Summary, Detail, or Negative
Wages. An additional errors report
will ßag any problems with Social
Security Numbers, or deÞned
contributions that exceed the limit
allowed by law.

Calculate and report tips in excess Tax Credit Calculation (TP140)

of those deemed “wages” for
meeting the Federal minimum wage NOTE This information can be used
requirement and the SS/Medicare to take a tax credit on the corporate
tax on the excess tips amount tax form. This report is not an update
report, so you can re-run it as often
as needed.

Verify rates and premium set up for US WC ClassiÞcation Listing

workers’ compensation (PR218)

652 Chapter 43 Reports: U.S. and Canada Workers’ Payroll User Guide
Compensation
Submitting Canada Third-Party Reports
Use Canada Workers Compensation Report (PR418) to calculate workers’
compensation (WC) premiums on the basis of parameters deÞned on Canada
Workers' Compensation ClassiÞcation (PR18.2).
PR418 calculates assessable/excess wages from the beginning of the year
through the To Date even if the report is being run just for a speciÞc month.
For example, when running for April 1, 2004 through April 30, 2004, the
calculation of the assessable and excess wages includes the wages and
taxable beneÞts from January 1, 2004 through April 30, 2004.
If an employee’s payment is for ‘hours only’ type pay code and company paid
taxable beneÞts are processed for the payment, PR418 processes the taxable
beneÞts if the WC pay class includes the ‘hours only’.
If an employee receives wages from different process levels on one payment,
the earnings and beneÞts are reported by process level for PR418 Report
Options 3 and 4.

STOP You must have WC classes deÞned on Canada Workers'

Compensation ClassiÞcation (PR18.2) or this report will not create premiums
for employees.

Need More Details? Check out the following concepts:

• "How Do I Calculate Workers’ Compensation?" on page 650

STEPS To submit third party Canada reports

1. Access Canada Workers Compensation Report (PR418).
2. Complete the form. Consider the following Þelds:

Company Select the HR company you want to report

workers’ compensation for.
WC Province Select the workers’ compensation province you
want to create the report for.
The report select payments, history time records,
and taxable beneÞt deductions based on the
employee’s country and the program parameters
you select (i.e., process level, province, and
check date). You can process an employee
whose tax province is different from the WC
Province.

Payroll User Guide Chapter 43 Reports: U.S. and Canada 653

Workers’ Compensation
 Process Level Select the process level for which you want to
run the report.
The report select payments, history time records,
and taxable beneÞt deductions based on the
employee’s country and the program parameters
you select (i.e., process level, province, and
check date). You can process an employee
whose tax province is different from the WC
Province.
Date (beginning Type the beginning date of the range you want
Þeld) to create the report for.
Select time records from this date range for
assessable wage calculations.
The report select payments, history time records,
and taxable beneÞt deductions based on the
employee’s country and the program parameters
you select (i.e., process level, province, and
check date). You can process an employee
whose tax province is different from the WC
Province.
Date (ending Þeld) Type the end date of the range you want to create
the report for.
Select time records from this date range for
assessable wage calculations.
Pay Class Select the pay class you want to use to identify
assessable wages. If you leave this Þeld blank,
the Payroll application uses gross earnings as
the assessable wages in workers’ compensation
calculations.
Workers Select whether or not you want to use the workers
Compensation compensation (WC) class on the employees
Class current job code.
If you select Yes, the Payroll application uses the
WC class on the employees current job code. If
you select No, the Payroll application uses the
WC class from the employees job code at the
time the payment was issued.
Report Option Select how you want to sort the report. You can
choose to sort the report by:
WC Class, Employee, Process Level/WC Class,
or Process Level/Employee
If you leave this Þeld blank, WC Class defaults.

654 Chapter 43 Reports: U.S. and Canada Workers’ Payroll User Guide
Compensation
 Summary Option Select Detail Report or Summary report. If you
leave this Þeld blank, the application defaults to
Summary Report.
A detail report provides more information, but
may take longer to process.

3. Choose the Submit form action to submit the report.

Related Reports and Inquiries

To Use
Create a list of parameters deÞned Canada WC ClassiÞcation Listing
on Canada workers’ compensation (PR288)
classiÞcation

Payroll User Guide Chapter 43 Reports: U.S. and Canada 655

Workers’ Compensation
656 Chapter 43 Reports: U.S. and Canada Workers’ Payroll User Guide
Compensation
Appendix A

Defaults and Overrides

This appendix describes the major defaulting schemes that affect the Payroll
application.

Payroll User Guide Appendix A Defaults and Overrides 657

Concepts in this Chapter
The following concept provides background and conceptual information for
the defaulting schemes within this appendix.

How to Read Payroll Defaulting Flow Charts

The defauting ßow charts show the logic Payroll applies to Þnd a speciÞc
piece of information. Sometimes this information actually appears in a Þeld on
a form and other times the Þeld remains empty, but Payroll knows to go to the
next place in the defaulting scheme to Þnd the piece of information.
The following ßow chart shows the different elements of the defaulting ßow
chart and how they work together.

Time Record An oval describes

An arrow shows the (Payroll looks here a place that
direction in which Payroll first) Payroll looks for
looks for the information. the specific
In this example, Payoll information
looks at the time record
and if the information
isn't there, it looks at the
pay code next. Pay Code

Boxes contain
Is 1 selected in the questions Payroll
Pay Rate field of asks before
Position Rules moving to the
(PR06.1)?
next level of
defaulting.
Yes

No
Job Code

Unless otherwise
noted, the
Employee information is
(Payroll looks here required at the
last) last oval level,
since this is the
last place Payroll
looks.

658 Appendix A Defaults and Overrides Payroll User Guide

General Ledger Accounts Defaulting
The Human Resources application requires that you deÞne four general
ledger accounts when you set up a company on Company (HR00.1). Three
of these accounts—the expense account, clearing account, and noncash
account—can be overriden on different forms in Human Capital Management.
The expense account can default for wage expenses or company paid
deduction expenses. You also deÞne the deduction accrual company and
accounting unit.
This section explains how each account defaults.
• "Clearing Account" on page 659
• "Noncash Account" on page 660
• "Wage Expense Account" on page 660
• "Company-paid Deduction Expense Account" on page 663
• "Deduction Accrual Company and Accounting Unit" on page 664

Clearing Account
Gross payroll amounts are run through the clearing account and posted to a
detail account. If payroll expenses are split into two accounting periods, the
Payroll application posts the offsetting entries for each period to the clearing
account.
Figure 42. Defaulting hierarchy: Clearing account

Process Level
HR01.1

Company
HR00.1

Payroll User Guide Appendix A Defaults and Overrides 659

Noncash Account
The noncash account represents the posting account where the credit entry is
posted for noncash income.
Figure 43. Defaulting hierarchy: Noncash account

Process Level
HR01.1

Company
HR00.1

Wage Expense Account

NOTE The distribution The expense account represents the posting account where you post the
company and debit entry for salary and wage expense.
accounting unit default
together and can An expense distribution company, accounting unit, and account number is
default independently required at the company level.
of the account and sub
account. The defaulting Payroll uses to Þnd the wage expense account depends on
whether or not the company uses positions for employees. You deÞne how
positions are used by the Payroll Application on Position Rules (PA06.1) in
the Personnel Administration application. If you do not use the Personnel
Administration application, Payroll follow the logic for defaulting without
positions.
Payroll Distribution - Employees (PR23.1) overrides by percentage the normal
distribution of wage for an employee or position. A value of Yes in the Payroll
Distribution Þeld on the time record indicates a payroll distribution override
is deÞned for the selected employee/position and pay code. If you do not
want to use the general ledger information deÞned on PR23.1, select No in
the Payroll Distribution Þeld.
If you select Yes in the Payroll Distribution Þeld on the time record, the
account information deÞned in Payroll Distribution - Employees (PR23.1) or
Payroll Distribution - Positions (PR23.3) overrides the account information on
the time record when you run Payroll Close (PR197).

660 Appendix A Defaults and Overrides Payroll User Guide

 Figure 44. Defaulting hierarchy: Wage expense account WITHOUT positions

Payroll
Distributions

Time Record

Pay Code

Is Ignore Positions or
Primary Positions
selected in the
GL Expense, Activity
field of PA06.1?

Yes

No
Job Code

Employee

Department

Process Level

Company

Payroll User Guide Appendix A Defaults and Overrides 661

 Figure 45. Defaulting hierarchy: Wage expense account WITH positions

Payroll
Distributions

Time Record

Pay Code

Is All Positions
selected in the
GL Expense, Activity
field of PA06.1?

Yes No

Position Job Code

Employee

Department

Process Level

Company

662 Appendix A Defaults and Overrides Payroll User Guide

Company-paid Deduction Expense Account
NOTE The distribution The wage expense account deÞned for the employee determines the general
company and ledger expense account to which the company-paid deduction expense is
accounting unit default charged unless it is overridden at other levels.
together and can
default independently You can override the general ledger expense information used for
of the account and sub company-paid deduction expense in the following areas:
account.
• A payroll distribution
• The employee deduction master
• The deduction code
• Time record
If an override does not exist at any of these levels, deduction expenses follow
wage expense account defaulting.
For company-paid deductions that are created by the BeneÞts Administration
application, an additional level is included in the default scheme. For these
deductions, the Payroll application looks Þrst at PR23.1. If an override
expense account is not deÞned for the deduction at this level, the application
looks at the Employee Deduction Þle where beneÞt-deduction expense
accounts are stored. If an expense account was not deÞned for the deduction
created by the BeneÞts Administration application, the next level in the default
scheme is PR05.1 If no expense account is deÞned for the deduction, the

Payroll User Guide Appendix A Defaults and Overrides 663

 deduction expenses are posted to the same accounts to which the pay is
posted.
Figure 46. Defaulting: Company-paid deduction expense account

Payroll
Distributions

Is this a Benefits
deduction?

Yes

No
Benefit Overrides

Deduction

Note: If you do not

enter an expense
Time Record account on the time
record, Payroll uses
the wage expense
account defaulting of
the employee who is
assigned to the time
record.

Deduction Accrual Company and Accounting Unit

When you set up a company in the Human Resources application, you can
deÞne a distribution company and accounting unit for deduction accruals on
the Accounts form tab on Company (HR00.1). If you leave the Deduction
Accrual Þelds blank on HR00.1, the Payroll application uses the default
scheme to determine the distribution company and accounting unit used for
deduction accruals.
The Payroll application lets you deÞne an accrual distribution company and
accounting unit for a speciÞc deduction or process level. If you do not deÞne

664 Appendix A Defaults and Overrides Payroll User Guide

 an accrual distribution company and accounting unit for a deduction, process
level, or company, the application uses the expense account distribution
company and accounting unit deÞned for the employee on the Pay form tab
on HR11.1 (Employee) for the accrual accounting unit.
There are Þve levels at which you can identify an accrual accounting unit:

Employee Deduction
For deductions created by the BeneÞts Administration application, the Þrst
default level for accrual account information is the Employee Deduction Þle
where the accrual account information deÞned for deductions created by the
BeneÞts Administration application is stored. If an account number without a
distribution company or accounting unit is found in the Employee Deduction
Þle, the application uses the normal default scheme to display the distribution
company, the accounting unit, or both.

Deduction
You can assign a general ledger accrual account to a deduction. If you leave
the Accrual Distribution Company and Accounting Unit Þelds blank, Payroll
uses the deduction-accrual distribution company and accounting unit deÞned
for the process level.

Process level
You can deÞne a general ledger deduction accrual distribution company and
accounting unit for a process level on the Accounts tab on Process Level
(HR01.1). If you leave either the Deduction Accrual Distribution Company or
the Accounting Unit Þeld blank, the application uses the distribution company
or the accounting unit, or both, deÞned for the company.

Company
You can deÞne a general ledger deduction accrual distribution company and
accounting unit for a company on the Accounts tab on Company (HR00.1).
If you leave either the Deduction Accrual Distribution Company or the
Accounting Unit Þeld blank, the application uses the distribution company or
the accounting unit, or both, deÞned for the employee.

Employee
The application uses the expense distribution company and accounting unit
deÞned on the Pay tab on Employee (HR11.1) for deduction accruals if neither
the distribution company nor the accounting unit is deÞned at the deduction
level, process level, or company level. The expense distribution company

Payroll User Guide Appendix A Defaults and Overrides 665

 and accounting unit can default to the employee from the process level or
company. For more information, see "Wage Expense Account" on page 660.
Figure 47. Defaulting hierarchy: Deduction accrual company and accounting unit

Is this a Benefits
deduction?

Yes

Employee No
Deduction

Deduction

Process Level

Company

Employee
(Wage expense
company and
accounting unit)

Process Level
(Wage expense
company and
accounting unit)

Company
(Wage expense
company and
accounting unit)

666 Appendix A Defaults and Overrides Payroll User Guide

Rate of Pay Defaults
When you create a time record for an employee, you can enter a value in the
Rate Þeld or allow a rate to default.
Payroll time records use the pay rate and grade range schedule from the
Employee record unless overridden at other levels in the defaulting scheme.
If you use the Lawson Personnel Administration application you can establish
defaults according to positions or jobs for the Payroll time record values of
process level, department, job code, shift, and step and grade schedule. You
can set up defaults according to an employee’s primary (Level 1) position
or job, all positions or jobs (Levels 1 through 5), or no positions or jobs.
Selections you make on Positions (PA02.1) and Position Rules (PA06.1)
determine whether position management information defaults to Payroll
application time records. When you deÞne these rules, it is important to
understand the defaulting schemes and position management. For more
information about position management, see the Personnel Administration
User Guide.
The following sections describe the Payroll defaulting schemes
• "Pay Rate Defaulting without Positions" on page 667
• "Pay Rate Defaulting with Positions" on page 670
• "Key Pay Rate Defaulting Fields" on page 672

Pay Rate Defaulting without Positions

You can set up employee pay rates in several different places within the
Payroll application. If you do not enter a pay rate when you add a time record,
the application uses a speciÞc path to look for the pay rate:
• The pay rate on the Pay tab of the Employee (HR11.1) is the Þnal default.
• The Alternate Rates button on HR11.1 can also be used to override the
employee pay rate for speciÞc pay codes, job codes, or combinations
therein.
The following ßowchart shows how the default pay rate is used on the time
record if you do not use the Personnel Administration application or if you
select Ignore Positions or Primary Positions in the Pay Rate Þeld on Position
Rules (PA06.1).
When you create a time record, you can type a value in the Rate Þeld or you
can let a rate default.
Pay codes are deÞned on Pay Codes (PR20.4). For more information, see
"Key Pay Rate Defaulting Fields" on page 672.
Alternate rates are deÞned with the Alternate Rate subform of HR11.1. For
more information, see "Key Pay Rate Defaulting Fields" on page 672.
For a rate of pay to default from a pending action, the time record must
correspond to the effective date of the pending action.
When you set up a company, you can determine whether or not the application
logs Þeld changes to a history Þle by setting the appropriate parameters on

Payroll User Guide Appendix A Defaults and Overrides 667

 Data Item Attributes (HR10). For a rate to default from the history Þle, you
must log Þeld changes and the date of the time record must match the date of
the history Þle record.
If the pay rate is determined by the Employee Position/Job Record, the pay
rate, annual hours, and FTE will be used to calculate the wage.

668 Appendix A Defaults and Overrides Payroll User Guide

 Payroll calculates gross pay when you add a time record to the application.
Figure 48. Defaulting hierarchy: Pay Rate

Time Record

Pay Code

Alternate Pay
Rates

Is Ignore Positions or
Primary Position
selected in the Pay
Rate field of Position
Rules (PA06.1)?

Yes

No
Job Code

Pending Actions
for the Employee

History File

Employee

Payroll User Guide Appendix A Defaults and Overrides 669

Pay Rate Defaulting with Positions
You can set up employee pay rates in several different places within the
Payroll application. If you do not enter a pay rate when you add a time record,
the application uses a speciÞc path to look for the pay rate:
• The pay rate on the Pay form of the employee record is the Þnal default.
• The Alternate Rates button on Employee (HR11.1) can also be used
to override the employee pay rate for speciÞc pay codes, job codes, or
combinations therein.
When you create a time record, you can type a value in the Rate Þeld or you
can let a rate default.
Pay codes are deÞned on Pay Codes (PR20.4). For more information, see
"Key Pay Rate Defaulting Fields" on page 672.
Alternate rates are deÞned with the Alternate Rate subform of HR11.1. For
more information, see "Key Pay Rate Defaulting Fields" on page 672.
For a rate of pay to default from a pending action, the time record must
correspond to the effective date of the pending action.
When you set up a company, you can determine whether or not the application
logs Þeld changes to a history Þle by setting the appropriate parameters on
Data Item Attributes (HR10). For a rate to default from the history Þle, you
must log Þeld changes and the date of the time record must match the date of
the history Þle record.
When you use step and grade pay schedules and have selected All Positions
in the Pay Rate Þeld of Position Rules (PA06.1), the application looks at the
employee’s position/job record and then looks for the pay rate on the Position.
In addition, when using step and grade pay schedules, employee alternate
rates will not be considered in the defaulting of pay rates.
When you use All Positions, be aware of the following implications for
defaulting the rate of pay in positions 2 through 5.
If the application Þnds pending actions that exist for active positions 2
through 5, the Pending Position/Job Actions rate of pay will default.
If any position 2 through 5 is selected on the time record and there is an ending
date on that position that falls within the pay period as represented by the time
record date, the application will continue through the defaulting scheme to
Pending Actions For Employee for the primary position for the rate of pay.
The ßowchart shows how the default pay rate is used if you select All Positions
in the Pay Rate Þeld on Position Rules (PA06.1).

670 Appendix A Defaults and Overrides Payroll User Guide

 Figure 49. Defaulting hierarchy: Pay Rate with Positions

Time Record

Pay Code

Alternate Pay
Rates

Pending Actions
for Non-Primary
Positions

Employee
Position/Job
Records

Is the employee's
primary position on
the time record?

Yes No

Position Job Code

Pending Actions
for Primary
Position

Employee
History Record

Employee

Payroll User Guide Appendix A Defaults and Overrides 671

Key Pay Rate Defaulting Fields
The following tables provide information on the key Þelds used as the default
rates of pay from Pay Codes (PR20.4) or the Alternate Pay Rates subform of
Employee (HR11.1). The date range of an alternate pay rate is compared to
the time record date to determine the default alternate pay rate.

Pay Codes
Pay rate deÞned for Uses the default if
A pay code unique to a speciÞc The Rate Þeld is left blank when
process level and job code a time record is created for an
employee matching both the process
level and the job code.
A pay code unique to a speciÞc job The Rate Þeld is left blank when
code a time record is created for an
employee matching the job code.
A pay code unique to a speciÞc The Rate Þeld is left blank when
process level a time record is created for an
employee matching the process
level.
A pay code without a speciÞc The Rate Þeld is left blank when a
process level and job code time record is created.

Alternate Rates Without the Personnel

Administration System (or Ignore Positions
selected in the Pay Rate Field of PA06.1)
Pay rate deÞned for Uses the default if
The Alternate Pay Rates subform The process level or department and
unique to a speciÞc process level or job code and pay code match the
department and job code and pay process level/department and job
code code and pay code deÞned for the
alternate pay rate; the time record
date is within the effective date range
of the alternate rate; and the Rate
Þeld is left blank for the time record.
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level or and pay code match the process
department and pay code level/department and pay code
deÞned for the alternate pay rate;
the time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.

672 Appendix A Defaults and Overrides Payroll User Guide

 Pay rate deÞned for Uses the default if
The Alternate Pay Rates subform The job code and pay code match
unique to a job code and pay code the job code and pay code deÞned
for the alternate pay rate; the time
record date is within the effective
date range of the alternate rate; and
the Rate Þeld is left blank for the
time record.
The Alternate Pay Rates subform The pay code matches the pay code
unique to a speciÞc pay code deÞned for the alternate pay rate;
the time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.
The Alternate Pay Rates subform The process level or department and
unique to a speciÞc process level or job code match the process level or
department and job code department and job code deÞned
for the alternate pay rate; the time
record date is within the effective
date range of the alternate rate; and
the Rate Þeld is left blank for the
time record.
The Alternate Pay Rates subform The process level or department and
unique to a speciÞc process level or job code and pay code match the
department process level/department deÞned
for the alternate pay rate; the time
record date is within the effective
date range of the alternate rate; and
the Rate Þeld is left blank for the
time record.
The Alternate Pay Rates subform The job code matches the job code
unique to a speciÞc job code for the alternate pay rate; the time
record date is within the effective
date range of the alternate rate; and
the Rate Þeld is left blank for the
time record.
The Alternate Pay Rates subform The time record date is within the
without a department or process effective date range of the alternate
level or job code or pay code rate; and the Rate Þeld is left blank
for the time record.

Payroll User Guide Appendix A Defaults and Overrides 673

 Alternate Rates With the Personnel Administration
System (and 1 or 2 in Selected in the Pay Rate Þeld
of PA06.1
Pay rate deÞned for Uses the default if
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level and position and job code and pay
or department and position and job code match the process level or
code and pay code department and position and job
code and pay code deÞned for the
alternate pay rate; the time record
date is within the effective date range
of the alternate rate; and the Rate
Þeld is left blank for the time record.
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level and position and pay code match
or department and position and pay the process level/department and
code position and pay code deÞned for the
alternate pay rate; the time record
date is within the effective date range
of the alternate rate; and the Rate
Þeld is left blank for the time record.
The Alternate Pay Rates subform The process level or department and
unique to a speciÞc process level or job code and pay code match the
department and job code and pay process level/department and job
code code and pay code deÞned for the
alternate pay rate; the time record
date is within the effective date range
of the alternate rate; and the Rate
Þeld is left blank for the time record.
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level or and pay code match the process
department and pay code level/department and pay code
deÞned for the alternate pay rate;
the time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.
The Alternate Pay Rates subform The position and job code and pay
unique to a speciÞc position and job code match the position and job
code and pay code code and pay code deÞned for the
alternate pay rate; the time record
date is within the effective date range
of the alternate rate; and the Rate
Þeld is left blank for the time record.

674 Appendix A Defaults and Overrides Payroll User Guide

 Pay rate deÞned for Uses the default if
The Alternate Pay Rates subform The position and pay code match
unique to a speciÞc position and pay the position and pay code deÞned
code for the alternate pay rate; the time
record date is within the effective
date range of the alternate rate; and
the Rate Þeld is left blank for the
time record.
The Alternate Pay Rates subform The job code and pay code match
unique to a speciÞc job code and the job code and pay code deÞned
pay code for the alternate pay rate; the time
record date is within the effective
date range of the alternate rate; and
the Rate Þeld is left blank for the
time record.
The Alternate Pay Rates subform The pay code matches the pay code
unique to a speciÞc pay code deÞned for the alternate pay rate;
the time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level and position and job code match
or department and position and job the process level/department and
code position and job code deÞned for the
alternate pay rate; the time record
date is within the effective date range
of the alternate rate; and the Rate
Þeld is left blank for the time record.
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level or and position match the process
department and position level/department and position
deÞned for the alternate pay rate;
the time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level or and job code and match the process
department and job code level/department and job code
deÞned for the alternate pay rate;
the time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.

Payroll User Guide Appendix A Defaults and Overrides 675

 Pay rate deÞned for Uses the default if
The Alternate Pay Rates subform The process level or department
unique to a speciÞc process level or matches the process level or
department department deÞned for the alternate
pay rate; the time record date is
within the effective date range of the
alternate rate; and the Rate Þeld is
left blank for the time record.
The Alternate Pay Rates subform The position and job code match the
unique to a speciÞc position and job position and job code deÞned for the
code alternate pay rate; the time record
date is within the effective date range
of the alternate rate; and the Rate
Þeld is left blank for the time record.
The Alternate Pay Rates subform The position matches the position
unique to a speciÞc position deÞned for the alternate pay rate;
the time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.
The Alternate Pay Rates subform The job code matches the process
unique to a speciÞc job code job code deÞned for the alternate
pay rate; the time record date is
within the effective date range of the
alternate rate; and the Rate Þeld is
left blank for the time record.
The Alternate Pay Rates subform The time record date is within the
effective date range of the alternate
rate; and the Rate Þeld is left blank
for the time record.

676 Appendix A Defaults and Overrides Payroll User Guide

Time Record Defaults
The following items can default onto the time record:
"Distribution Process Level and How the distribution process level
Department Defaulting" on page 677 and the department default to the
time record.
"Job Code and Shift Defaulting with How the job code and shift default
Positions" on page 679 to the time record.
"Grade Range Schedule Defaulting" How the grade range schedule
on page 679 defaults to the time record.
"Step and Grade Range Schedule How the step and grade range
Defaulting" on page 682 schedule defaults to the time record.

Distribution Process Level and Department Defaulting

The process level on the time record is used as the distribution process level to
report pay amounts and hours worked. It is also used to store payment history
or create a payment from a different bank account. Payroll uses the following
defaulting schemes to determine the appropriate distribution process level.
Figure 50. Defaulting hierarchy: Distribution process level and department
WITHOUT positions

Time Record

Employee

Payroll User Guide Appendix A Defaults and Overrides 677

 The following ßowchart shows how the default process level and department
are used on the time record if you select All Positions in the Process Level,
Department Þeld on Position Rules (PA06.1).
Figure 51. Defaulting hierarchy: Distribution process level and department WITH
positions

Time Record

Is the employee's
primary position on the No
time record?

Yes Is Yes or Yes; Blank

Alowed for Req
selected in the Use
No Formal Positions field
of Position Rules
(PA06.1)?

Yes

Position

Employee

678 Appendix A Defaults and Overrides Payroll User Guide

Job Code and Shift Defaulting with Positions
The following ßowchart shows how the default job code and shift are used
on the time record if you select All Positions in the Job Code, Position Þeld
on Position Rules (PA06.1).
Figure 52. Defaulting hierarchy: Job code and shift with positions

Time Record

Is the employee's
primary position on the No
time record?

Yes Is Yes or Yes; Blank

Alowed for Req
selected in the Use
No Formal Positions field
of Position Rules
(PA06.1)?

Yes

Position

Employee

Grade Range Schedule Defaulting

The following ßowchart shows how the default grade range schedule is used
on the time record if you do not use the Personnel Administration application

Payroll User Guide Appendix A Defaults and Overrides 679

 or you select Ignore Positions or Primary Positions in the Schedule Þeld on
Position Rules (PA06.1).
Figure 53. Defaulting hierarchy: Grade range schedule WITHOUT positions

Time Record

Is Ignore Positions or
Primary Positions
selected in the
Schedule field of
Position Rules
(PA06.1)?

Yes

No
Job Code

Employee

680 Appendix A Defaults and Overrides Payroll User Guide

 Grade Range Schedule Defaulting with Positions
The following ßowchart shows how the default grade range schedule is used
on the time record if you select All Positions in the Schedule Þeld on Position
Rules (PA06.1).
Figure 54. Defaulting hierarchy: Grade range schedule WITH position

Time Record

Employee Position
or Job Records

Is Yes or Yes; Blank

Alowed for Req
selected in the Use
Formal Positions field
of Position Rules
(PA06.1)?

Yes No

Position Job Code

Payroll User Guide Appendix A Defaults and Overrides 681

Step and Grade Range Schedule Defaulting
The following ßowchart shows how the default step and grade range schedule
are used on the time record if you select Ignore Positions or Primary Positions
in the Schedule Þeld on Position Rules (PA06.1).
Figure 55. Defaulting hierarchy: Step and grade range schedule

Time Record

Employee

Step and Grade Range Schedule Defaulting with

Positions
The following ßowchart shows how the default step and grade range schedule
are used on the Time record if you select All Positions in the Schedule Þeld
on Position Rules (PA06.1).
Figure 56. Defaulting hierarchy:Step and grade range schedule with positions

Time Record

Employee Position
or Job Records

No
Is Yes or Yes; Blank
Alowed for Req
selected in the Use
Formal Positions field
of Position Rules
(PA06.1)?

Yes

Position

682 Appendix A Defaults and Overrides Payroll User Guide

Appendix B

U.S. Garnishment Formulas

The following chapter provides information on U.S. garnishment formulas.

Wage Exemption Formulas

The following table shows the garnishment wage exemption formulas that
the Payroll application uses to calculate wages exempt from garnishment
(income protected). You deÞne which formula to use for a garnishment on
Garnishment Rules (PR25.2). You can override the garnishment formula
by selecting a formula for an employee garnishment on the Formula tab on
the Employee Garnishment (PR26.1).
Formula Condition Calculation
01 (Federal CCPA for If the employee has a The exemption is the
Support) second family deÞned percent of disposable
on the Family tab of income in the Second
PR26.1 Family, Yes Þeld on
PR25.2 - Disposable
Income tab.
If the employee does The exemption is the
not have a second percent of disposable
family deÞned on the income in the Second
Family tab of PR26.1 Family,No Þeld on
PR25.2 - Disposable
Income tab.
If Yes is selected in the The exemption is
Over 12 Weeks Þeld on reduced by the percent
PR26.1 - Arrears tab in the Addl %,Arrears
over 12 weeks Þeld.
02 (Tax Levy Exempt (None) The exemption is
Wage Tables) calculated using
employee information
from Employee
Garnishment (PR26.1)
and the United States
Tax Levy Table (PR10).
Lawson provides annual
updates to the Federal
Tax Levy Tables in csv
format, which can be
loaded using PR910.
DeÞne and enter State
Tax Levy Tables directly
on PR10.

Payroll User Guide Appendix B U.S. Garnishment Formulas 683

 Formula Condition Calculation
03 (Federal CCPA for (None) The exemption is the
other garnishments) greater of: a.) the
amount in the Rate Þeld
multiplied by the Federal
minimum wage from the
Min Wage button on
PR06.1 - or - b.) the
percent of disposable
income in the Factor 1
Þeld.
04 (Federal Limits on If the employee has The exemption is the
Student Loans held by a single student loan percent of disposable
State Guarantor) garnishment order income in the Factor 1
Þeld.
If the employee has The exemption is
multiple student loan capped at 75% of
garnishment orders disposable income for
the sum of all student
loan garnishment
orders.
05 (Federal Limits on If the employee has The exemption is the
Other Student Loans) a single student loan percent of disposable
garnishment order. income in the Factor 1
Þeld.
If employee has The exemption is
multiple student loan capped at 75% of
garnishment orders disposable income for
the sum of all student
loan garnishment
orders.
10 (% Of Disposable (None) The exemption is the
Income) percent of disposable
income in the Factor 1
Þeld.

684 Appendix B U.S. Garnishment Formulas Payroll User Guide

 Formula Condition Calculation
11 ( > Of Rate Or % Of The exemption is the
Disp Income) greater of: a.) the
amount of disposable
in the appropriate
Factor Þeld, based
on pay frequency. (If
the employee is paid
weekly, Factor 1 is used.
If the employee is paid
biweekly, Factor 2 is
used. If the employee
is paid semimonthly,
Factor 3 is used. If
the employee is paid
monthly, Factor 4 is
used.) - or - b.) the
percent of disposable
income, based on family
status.
If arrears exist Reduce the percent
in the 2nd family Þeld
by the percent in the
Arrears Addl % Þeld.
If exemptions are not Type the same percent
based on family status in both the Second
Family,Yes and Second
Family, No Þelds.
12 (> Of Rate Or % Of (None) The exemption is the
Disp Income) greater of: a.) the
amount in the Rate Þeld
multiplied by the Federal
minimum wage from the
Min Wage button on
PR06.1 - or - b.) the
percent of disposable
income in the Factor 1
Þeld.
13 (% Of Disp Inc Less If there are no The exemption is the
Amt Or Pct Dep) dependents percent of disposable
income in the Factor 1
Þeld.
If there are dependents The exemption is the
percent of disposable
income in the Factor 1
Þeld minus the percent
in the Per Dependent
Þeld.

Payroll User Guide Appendix B U.S. Garnishment Formulas 685

 Formula Condition Calculation
14 (% Of Disp Inc If there is only one The exemption is the
Based On Nbr Of Garn) order percent of disposable
income in the Factor 1
Þeld.
If there are multiple The exemption
orders is the percent of
disposable income in
the appropriate Second
Family,Yes or Second
Family, No Þeld on
PR26.1.
15 (Flat Amt Per Pay (None) The exemption
Frequency) is the amount of
disposable income in
the appropriate Factor
Þeld.
(If the employee is paid
weekly, Factor 1 is used.
If the employee is paid
biweekly, Factor 2 is
used. If the employee
is paid semimonthly,
Factor 3 is used. If
the employee is paid
monthly, Factor 4 is
used.)
16 (Flat Amt Plus Amt (None) The exemption
Per Dep) is the amount of
disposable income in
the appropriate Factor
Þeld plus the amount in
the Per Dependent Þeld.
(If the employee is paid
weekly, Factor 1 is used.
If the employee is paid
biweekly, Factor 2 is
used. If the employee
is paid semimonthly,
Factor 3 is used. If
the employee is paid
monthly, Factor 4 is
used.)

686 Appendix B U.S. Garnishment Formulas Payroll User Guide

 Formula Condition Calculation
17 ( % Of Gross Pay) If the employee does The exemption is the
not have a second percent of gross pay in
family the Factor 1 Þeld. Note
that it is acceptable
for Factor 1 to contain
zero to represent an
exemption of 0% gross
pay.
If the employee has a The exemption is the
second family percent in the Second
Family, Yes Þeld on
PR26.1.
18 (< Rate Or % Of The exemption is the
Disp Income) lesser of: a.) the
amount in the Rate Þeld
multiplied by the Federal
minimum wage from the
Min Wage button on
PR06.1 - or - b.) the
percent of disposable
income in the Factor 1
Þeld.
19 ( Rate Plus Amt Per The exemption is the
Dep) amount in the Rate
Þeld multiplied by the
Federal minimum wage
(from the Min Wage
button on PR06.1) plus
the amount deÞned
per week for each
dependent.
20 ( Flat Amt If Head If the employee is the The exemption
Of Family) head of the family is the amount of
(deÞned on PR26.1) disposable income in
the appropriate Factor
Þeld for the appropriate
garnishment Category.
(If the employee is paid
weekly, Factor 1 is used.
If the employee is paid
biweekly, Factor 2 is
used. If the employee
is paid semimonthly,
Factor 3 is used. If
the employee is paid
monthly, Factor 4 is
used.)

Payroll User Guide Appendix B U.S. Garnishment Formulas 687

 Formula Condition Calculation
If the employee is the The exemption is 30
head of the family, and times Federal Minimum
garnishment category Wage.
is L (Loans), and the
protection provided by
the greater of state
or Federal rule is less
than 30 times Federal
Minimum Wage.
If the employee is not The exemption is the
the head of the family same as Formula 01.
21 (Rate Or % Of Disp If the employee is the The exemption is
Inc For Head) head of the family greater of: a.) the
(deÞned on PR26.1) amount in the Rate
Þeld multiplied by the
Federal minimum wage
per week (from the
Min Wage button on
PR06.1) - or - b.) the
percent of disposable
income for the head of
the family in the Factor
1 Þeld.
If the employee is not The exemption is the
the head of the family same as Formula 01.
22 ( % Of Disp Inc By (None) Exemptions are based
Income Level) on different levels of
disposable income.
The exemption is 95%
of the amount in the
Factor 1 Þeld; 90% of
the amount in the Factor
2 Þeld; and 80% of
the difference between
disposable income and
the amount in the Factor
3 Þeld.
Values entered for
Factor 2 and Factor
3 are calculated as
monthly amounts.
23 (% Of Gross Plus If the employee does The exemption is the
Amt Per Dep) not have a second percent of gross income
family (deÞned on in the Second Family,No
PR26.1) Þeld.

688 Appendix B U.S. Garnishment Formulas Payroll User Guide

 Formula Condition Calculation
If the employee has a The exemption is
second family the percent of gross
income in the Second
Family,Yes Þeld plus
the amount in the Per
Dependent Þeld for
each dependent.
24 (Rate multiplied by (None) The exemption is the
Fed Minimum Wage) amount in the Rate
Þeld multiplied by the
Federal minimum wage
(from the Min Wage
button on PR06.1).
25 (% Of Disp Inc The exemption varies
Gross By Inc Level) according to the amount
of disposable income.
If the disposable The exemption is 100%.
income is less than
or equal to 30 times the
Federal minimum wage
(from the Min Wage
button on PR06.1)
If the disposable The exemption is the
income is between greater of a.) the
30 and 40 times the disposable income up
Federal minimum wage to 30 times the Federal
minimum wage - or -
b.) 90% of the gross
income.
If the disposable The exemption is the
income is equal to or greater of: a.) 75% of
greater than 40 times the disposable income -
the Federal minimum or - b.) 90% of the gross
wage income.
If the employee is The exemption is
subject to both a New calculated so that
York State Tax Levy the New York State Tax
and a Child Support Levy takes no more than
order 25% of the employee’s
disposable income. The
Child Support order can
reduce or deplete the
amount that is available
for the New York State
Tax Levy deduction.

Payroll User Guide Appendix B U.S. Garnishment Formulas 689

 Formula Condition Calculation
26 (> % Disp Inc Or (None) The exemption is the
Rate + Amt By Dep) greater of: a.) the
percent of weekly
disposable income in
the Factor 1 Þeld - or
- b.) the disposable
income that exceeds
the amount in the Rate
Þeld multiplied by the
Federal minimum wage
(from the Min Wage
button on PR06.1) plus
the amount in the Per
Dependent Þeld for
each dependent.
27 (Amt Per Dep + (None) The exemption is the
CCPA Other Garn) greater of: a.) the
amount in the Rate Þeld
multiplied by the Federal
minimum wage (from
the Min Wage button on
PR06.1) - or - b.) the
percent of disposable
income in the Factor 1
Þeld.
In addition, the amount
in the Per Dependent
Þeld on PR26.1 is
exempted for each
dependent.
28 (> % Of Gross Pay (None) The exemption is the
Or Rate) greater of: the percent
of gross income in the
Factor 1 Þeld - or - the
amount in the Rate
Þeld multiplied by the
Federal minimum wage
(from the Min Wage
button on PR06.1).
29 (No Wages Exempt (None) The exemption is a
From Garn) percent or amount of
the disposable income
with no protection.
30 ( Flat Amt Plus % Of (None) The exemption is the
Gross Pay) amount of gross wages
in the Factor 1 Þeld plus
50% of all wages due in
excess of the amount in
the Factor 2 Þeld.

690 Appendix B U.S. Garnishment Formulas Payroll User Guide

 Formula Condition Calculation
31 (% Of Disp Inc If If the employee is the The exemption is the
Head Of Family) head of the family percent of disposable
(deÞned in PR26.1) income in the Factor 1
Þeld.
If the employee is The exemption is the
not the head of the same as Formula 01.
household
32 (Flat Amt Of Gross (None) The exemption is a ßat
Pay) amount of gross pay in
the appropriate Factor
Þelds.
(If the employee is paid
weekly, Factor 1 is used.
If the employee is paid
biweekly, Factor 2 is
used. If the employee
is paid semimonthly,
Factor 3 is used. If
the employee is paid
monthly, Factor 4 is
used.)
33 (Amt % Based On (None) The exemption is the
Gross Pay Levels) gross weekly earnings
that are less than or
equal to the amount in
the Factor 1 Þeld.
If the gross weekly
earnings are greater
than the amount in the
Factor 1 Þeld but less
than the amount in the
Factor 2 Þeld, only the
amount greater than the
Factor 1 Þeld can be
subject to garnishment.
If the gross earnings per
week are greater than
or equal to the amount
in the Factor 2 Þeld,
the percent of gross
earnings in the Factor 3
Þeld is exempt.
34 (% Of Disp Inc Amt If the employee owes The exemption is the
Plus $1) support only percent of disposable
income in the Factor 1
Þeld.

Payroll User Guide Appendix B U.S. Garnishment Formulas 691

 Formula Condition Calculation
If the employee owes The amount to be
support and arrears withheld is the greater
of: a.) the percent of
disposable income in
the Factor 2 Þeld - or -
b.) the current amount
due plus $1.00 not
exceeding the percent
of disposable income in
the Factor 1 Þeld.
If the employee owes The exemption is the
arrears only greater of: a.) the
percent of disposable
income typed in the
Factor 3 Þeld - or
- b.) the amount
typed in the Rate Þeld
multiplied by the Federal
minimum wage (from
the Min Wage button on
PR06.1).
35 (% of Adjusted None The exemption is the
Gross Pay With lesser of: A) adjusted
Minimum) gross pay times the
protection percent in
Factor 1
– or –
B) adjusted gross pay
minus the minimum
garnishment in Factor
2, where adjusted gross
pay is gross pay minus
the adjustment amount
in Factor 3. Values
entered for Factor 2 and
Factor 3 are calculated
as weekly amounts.
Note that it is acceptable
for Factor 1 to contain
zero to represent an
exemption of 0% of
adjusted gross pay.

692 Appendix B U.S. Garnishment Formulas Payroll User Guide

 Formula Condition Calculation
36 (Subtract Excluded None Disposable income is
Deductions after calculated using the
Exempt Wage percent value typed
Calculation) in the Factor 1 Þeld
before the excluded
deductions reduce the
available amount.
99 Use the User Exit.

Payroll User Guide Appendix B U.S. Garnishment Formulas 693

694 Appendix B U.S. Garnishment Formulas Payroll User Guide
Appendix C

Documentation Conventions and Support

Documentation Conventions
This document uses speciÞc text conventions and visual elements.

Payroll User Guide Appendix C Documentation 695

Conventions and Support
 Text Conventions
This Represents
bold A key name or function key name. For example, Shift is
a key name and Help (F1) is a function key name.
A value or command that must be typed exactly as it
appears.
A program or Þle name.
italics A manual title or form name.
An emphasized word or phrase.
A placeholder for a user-deÞned value or variable.
(F1)–(F24) A function key number. “Press Help (F1)” instructs you
to press the key mapped for the (F1) function.
Key1+Key2 A key combination. “Press Shift+FndNxt (F3)” instructs
you to press and hold down the Shift key and then
press the FndNxt (F3) function key. Release both keys
to complete the action.
[] Optional parameters. Type none, one, or more of
the parameters within the brackets. For example, the
command:
qsubmit [-Un] [-jJobQueue -dDate -tTime]
username jobname
means that you can type a speciÞc job queue, date, or
time, or you can omit these parameters.
[|] Optional parameters. You can type only one of the
parameters separated by a vertical line. For example,
the command:
phraserpt[-n|t] BaseLanguage
[Translation]
means that you can type either the n or t parameter;
you cannot type both.
... A parameter that can be repeated. For example, the
command:
scrgen [-scxvV] productline [systemcode
[programcode...]]
means that you can type any number of program codes.

696 Appendix C Documentation Conventions and Payroll User Guide

Support
 Visual Elements

STOP Information you need to know before you attempt the procedure
or process.

IMPORTANT Important information to consider when you perform the

procedure.

CAUTION Cautionary information about actions that involve a risk of

possible damage to equipment, data, or software.

WARNING Warning information about actions that involve a risk of

personal injury or irreversible destruction to the data or operating
system.

Product Documentation
Lawson offers the following product documentation:
• Online help
• User guides and manuals
• Release notes and installation instructions
To Þnd Lawson documentation, see the user interface or http://
support.lawson.com. To obtain a login password and ID for the Support site,
see your organization’s Lawson contact or your Lawson client manager.

Global Support Center

Lawson Global Support Center (GSC) services are available to all Lawson
customers who are on maintenance support for Lawson products. See the
Global Support Manual for the following information:
• What information to gather before you contact the GSC
• How to contact the GSC
• How the GSC processes your request
• Which services are standard maintenance and which are billable
To Þnd the Global Support Manual, see http://support.lawson.com. To obtain
a login password and ID for the support web site, see your organization’s
Lawson contact or your Lawson client manager.

Documentation Contact
We welcome your questions or suggestions about Lawson documentation.
Please send comments to [email protected].

Payroll User Guide Appendix C Documentation 697

Conventions and Support
698 Appendix C Documentation Conventions and Payroll User Guide
Support
Index

A Attendance codes
creating, 73
Accounting unit, 664
deÞned, 70
Accruals
time records, and, 70
creating, 437
Attendance history, 480
deÞned, 429
Attendance points
exceptions, 430
deÞned, 71
payroll close vs. accrual program, 429
example, 71
ACH
Attendance time records, 328
deÞned, 187
Auto-reversing GL entries, 429
Activity time records, 312
Automatic arrears, 401
options for, 315
Automatic time records, 332
Adjustments
between non-tax deductions, 505
between pay codes, 503
between tax deductions and wages, 506
example, 493
B
General Ledger, 519 BACS
kinds, 492 deÞned, 187
miscellaneous, 499 Balancing
moving earnings, 510 adjustments, and, 598
moving wages, 507 concepts of, 598
payroll history, 496 deÞned, 598
pension payment, 496 month-end, 605
repayment by employee, 513 payroll cycle, 602
third-party payment, 516 payroll register, and, 598
Time and Attendance, and, 496 periodic, 605
tips, 583 - 584, 586 preparing for, 600
wash deductions, and, 495 quarter-end, 605
weeks worked, 633 year end, 605
Aggregation with pay periods method, 312, 319 Bank accounts
Allocation levels adding, 190
deÞned, 198 Canada, 191
gross receipts, for Bank codes
hours worked method, 614 creating, 191
individual gross receipts method, 618 deÞned, 186
Allocations example, 186
company, 206 process levels, and, 186
department, 209 Bank reconciliation report, 562
process level, 208 Bank tape Þle, 557
shift, 210 Batch control, 353, 357
Alternate pay rates, 672 Batch status
Arrears deÞned, 300
automation, 390, 401 deleting, 337
creating, 401 time records, 306
Attendance classes detailed, 309
creating, 73 options for, 308
deÞned, 72 BeneÞts history, 442
example, 72 BSI

Payroll User Guide Index 699

 deÞned, 76 one-time, 286, 289, 291 - 292, 380
example, 77 purging history, 568
setup requirements, 76 recalculating
tax authority, and, 77 after printing, 464
TaxLocator after running payment print, 463
application of, 219 before running payment print, 460
correcting errors, 226 wash, 495
deduction codes, 219 Defaulting
deduction start dates, 219 accounting unit, 664
deÞned, 218 clearing account, 659
employee address, and, 218 company-paid deduction expense
modifying, 225 account, 663
modifying deductions, 220 deduction accrual company, 664
purging records, 576 distribution process level and department, 677
setting up, 221 ßow charts, 658
viewing, 225 general ledger, 659
warning messages, 410, 412 general ledger accounts, 659
grade range schedules, 679, 681
job codes with positions, 679

C noncash account, 660

shifts with positions, 679
Check groups step and grade schedules, 682
deÞned, 303 wage expense account, 660
example, 303 Delete TR report, 412
Clearing account, 659 Department allocations
Closing deÞning, 209
payroll cycle, 368 Detailed time records, 309
Common paymaster, 80 options for, 312
Company allocations Direct deposit
deÞning, 206 default distribution, 187
Company-paid deduction expense account, 663 deÞned, 187
Current status distributions, 187
deÞned, 300 assigning, 270
time records, 316 deÞned, 268
setting up, 269
employee, 215

D
prenoting, 188
receipts, 428, 433
recreating tape, 465 - 466
Data purge
requirements, 188
deÞned, 564
tape, 428
Deduction accrual company, 664
voiding, 534
Deductions
Distribution codes, 342
assigning, 239
Distribution process level, 79, 677
assigning required, 237
Distribution types, 340
manual entry, 238
Distributions
options for, 238
accruals, and, 430
speed entry, 238
department, 677
via Human Resources, 238
direct deposit, 268 - 270
balance type
edit report, 442
deÞned, 236
HR company, and, 447
example, 236
payroll, 262 - 264
calculating, 417
process level, 677
changing, 422
offset, 495

700 Index Payroll User Guide

E reporting, 630
Expensing
Earnings company-paid deductions, 263
calculating, 366, 417 wages, 262 - 264
Earnings and deductions calculation Exspensing
errors, 459 company-paid deductions, 262, 264
example, 409
follow up, 421
functions of, 408
monitoring reports, 412 F
options for, 409 File locations
recalculating bank tape, 558
after running payment print, 463 enumeration veriÞcation, 634
before running payment print, 460 new hire, 641
reports, 409 payments, 437
Employee quarterly unemployment, 638
gross receipts, for Flex time records
gross receipts method, 616 deleting, 382
recording, 618 FLSA overtime
payroll distributions, 263 - 264 accruals, and, 430
tasks, 23 calculating, 37
tipped, 203 example, 38
Employee groups hours worked, 37
creating, 293 supplied hours, 38
deÞned, 287 errors, 401
example, 287 pay plan, 64
updating, 293 retroactive pay, and, 395
Employee pay Formulas
alternate rates, 215 garnishment, 159
assigning, 214 garnishment rules, and, 159
edits, 215 Funding sources
options for, 215 creating, 195
Employee records deÞned, 194
purging, 577 earnings and deductions calculation, and, 408
Enrollment plans options for, 195
changing, 423 pension payments, and, 342
Enumeration veriÞcation, 634 Future status
Error status deÞned, 300
correcting, 453 time records
deÞned, 301 creating, 316
Errors
correcting, 452
payroll cycle, 452
Errors report, 412 G
Exception pay Garnish report, 412
example, 43 Garnishment
pay codes, 42 calculation, 166
rules deÞned, 42 Canada, 167
Exception pay code, 42 example, Canada, 167
Exception, offset time record rules example, U.S., 166
creating, 67 U.S., 166
deÞned, 42 categories, 158
example, 43 deÞned, 156
Excess wages
deÞned, 628

Payroll User Guide Index 701

 employee, Canada recording for employee, 618
assigning, 253 Gross receipts method, 610
employee, united states Gross wage amount
assigning, 246 calculating from a net pay amount, 549
example, 156 Grouping employees, 287
exemption formulas, 683
formulas
Canada garnishment rules, and, 159
deÞned, 159 H
example, Canada, 159 Head process level
example, U.S., 159 deÞned, 78
U.S. garnishment rules, and, 159 Hours worked method, 610
multiple, 161 Human Resources
example, 161 - 162 pension payments, and, 342
multiple categories, 162
one category, 161

I
priority, 163
rules
defaulting, 164
Independent process level
defaulting, U.S., 165
deÞned, 78
defaulting,Canada, 165
Integration
deÞned, 158
SEA, 28
deÞning, Canada, 178
Interfaces, 28
deÞning, U.S., 172
federal, Canada, 158
federal, U.S., 158

types
follow up tasks, U.S., 175 J
deÞned, 157 Job codes
deÞning, Canada, 177 defaulting, 679
deÞning, U.S., 171 tipped, 203
U.S. federal limitations, 164
U.S. federal rules
loading, 171
wages used for, 160
L
Garnishment audit report, 408 Life insurance, 494
Garnishment-only tax authority calculating excess cost, 405
deÞned, 78
example, 78
General Ledger
accruals, 437 M
editing adjustment entries, 519 Magnetic media
HR company, and, 450 new hire, 641
liability update, 449 transferring to tape or diskette, 639
manual payments, and, 498 unemployment, 638
payroll close date, 443 Manual payments, 469
posting follow up, 450 creating, 473
posting to, 444, 449 deÞned, 468
transactions, 442, 444, 447 General Ledger, and, 498
Grade range schedules payroll cycle, and, 469
defaulting, 679 reserving checks, 468
defaulting with positions, 681 reserving numbers, 472
Gross receipts, 388 tips, 583 - 584
adding for allocation levels, 614, 618 voids, 528
adding for employee, 616

702 Index Payroll User Guide

 warning, 478 calculating FLSA, 37
zero gross, 480 example, 38
Manual processes hours worked, 37
tasks, 24 supplied hours, 38
Mass pay update, 293 FLSA overtime pay plan, 64
important, 293 pay class, 33
Minimum wage pay code, 30
deÞning, 204 pay plans, 37 - 38
Missing time records, 372 example, 38
editing for, 374
options for, 377
Moving time records
batch to current, 357 P
in two steps, 353 Pay
Multiple employees assigning employee, 214
time records, 323 edits, 215
options for, 324 employee
alternate rates, 215
options for, 215
N updating multiple rates, 293
Pay class
Net pay deÞned, 33
calculating, 417 HR company, and, 33
options for, 409 noncash, 33
recalculating overtime, 33
after running payment print, 463 tip pay, 33
before running payment print, 460 tips, 203 - 204
New hire Pay classes
magnetic media, 641 creating, 53
Noncash Pay code
account, 660 deÞned, 30
pay class, 33 example, 30
overtime, 30
shift, 30

O tips, 204
Pay codes
Offset deductions, 495 creating, 58
Offset pay code, 42 exception, 42
Offset time records, 42 offset, 42
creating, 379 Pay periods, 36
deÞned, 373 Pay plans
One-time deductions creating, 62
adding, 289 default
deÞned, 286 assigning, 65
deleting, 291, 442 deÞned, 36
earnings and deductions calculation, and, 408 example, 36
example, 286 progressive, 42
follow up, 382 example, 42
listing, 380 Pay rates
selecting, 355 additional ßat rate, 34
verifying, 292 calculation of, 34
Overtime custom calculation, 34
defaulting, 667
defaulting with positions, 670

Payroll User Guide Index 703

 defaulting without positions, 667 reconciling, 556
example, 35 replacement, 488
hours only, 34 report options, 434
key Þelds, 672 reprinting, 456, 466
length of service, 42 third-party software, and, 433
noncash income, 34 Time Accrual balances, on, 413
normal, 34 voiding, 526, 531
percent shift differential, 34 voiding partial, 535
percentage, 34 when to void, 526
percentage with percentage shift Payroll close, 429
differential, 34 distributions, 442
percentage with rate shift differential, 34 functions of, 442
rate shift differential, 34 GL date, 443
step and grade schedule, 41 GL transactions, 444
Pay summary group relationships, 32 options for, 447
creating, 57 posting to GL, 444
tips, 204 running, 446
Pay summary groups warning, 446
creating, 54 year end, 599
deÞned, 32 Payroll cycle
example, 32 balancing, 600, 602
pay classes, and, 32 big picture, 363
pay codes, and, 32 calculating earnings, 366
pension payments, and, 342 closing, 368, 446
relationships, 32, 57 correcting errors, 452
tips, 204 creating payments, 367
tax exemptions, 56 payroll register, 439
tax overrides, 56 pre-cycle maintenance, 365
tips, 204 preparing for, 362
Payment date status, 385, 393, 442
deÞned, 411 tasks, 24
example, 411 Time Accrual, and, 413
Payment modeling troubleshooting, 369
deÞned, 540 Payroll distributions
gross-to-net, 542 assigning, 263 - 264
gross-to-net, hypothetical employee, 544 creating, 408
gross-to-net, options for, 543 deÞned, 262 - 263
gross-up, 545 Payroll history, 442
gross-up, hypothetical employee, 548 adjustments, 496
uses, 541 contents of, 564
Payments modiÞcations, 494
creating, 367 payroll year end, and, 599
errors, 459 purging, 566
example, 428 updating, 408
Þle location, 437 Payroll register, 483
Þle name, 437 creating, 439
formats, 188 warning, 440
printing, and, 188 Payroll year
history, 428 balancing, 605
manual, 468, 473 closing, 599, 608
modeling, 540 effects of close, 599
payroll cycle status, and, 428 payroll history, and, 599
printing, 428, 433 Pension
re-running, 465 funding sources, 194
recalculating, 455 options for, 195

704 Index Payroll User Guide

 setup, 195 normal, 34
Pension payments percent shift differential, 34
adjustments, 496 percentage, 34
deÞned, 340 percentage with percentage shift
distribution codes, 342 differential, 34
distribution types, 340 percentage with rate shift differential, 34
employee taxes, and, 342 rate shift differential, 34
follow up task, 346 Receipts
Funding sources, and, 342 formats, 188
Human Resources, and, 342 pay codes, and, 188
lump sum, 340, 347 Reconcile payments
options for, 346 automatically, 556, 558
pay summary groups, and, 342 bank reconciliation report, 562
periodic, 340, 344 manually, 556, 559
required setup, 342 results, 556
Positions Record of Employment, 629, 642
time records, 329 follow up, 644
Prenoting, 188 Related report entities, 80
not required, 188 Releasing time records, 352
required, 188 batch to future, 354
Printer jam, 459 caution, 354
Priority follow up tasks, 355
garnishment, 163 options for, 355
Process groups Replacement payment
deÞned, 302 deÞned, 488
example, 302 Replacement payments
Process level creating, 489
distribution, 79 reserving checks, 488 - 489
head, 78 Report entities
independent, 78 adjustments, 510
Process level allocations common paymaster, 80
deÞning, 208 deÞned, 79
Processed status distribution process level, 79
deÞned, 300 related, 80
deleting, 454, 459 Reporting
Progressive pay plans quarterly, 634
deÞned, 42 Reports
example, 42 earnings and deduction calculation, 409
overview, 24
Retroactive pay, 389

Q accruals, and, 430

calculating, 395
Quarterly report example, 389
verifying, 634 FLSA, and, 395
ROE, 629, 642

R S
Rates of pay
additional ßat rate, 34 Selecting time records, 352
calculation of, 34 future to current, 355
custom calculation, 34 one record, 359
hours only, 34 options for, 356
noncash income, 34 Setup

Payroll User Guide Index 705

 tasks, 23 garnishment only, 78
Shift allocations example, 78
deÞning, 210 minimum wage, and, 77
Shift tables tax deduction, and, 77
creating, 52 United States
Shifts creating, 81
defaulting, 679 Tax credit, 611
pay codes, 30 calculating, 623
shift tables, 52 excess tips, 612
Shortfall allocations follow up, 626
deÞned, 198 minimum wage due, 611
hours worked, 200 tip credit calculation, 611
individual gross receipts, 198 tips veriÞcation, 612
Shortfall calculation Tax exemptions, 56
allocations, 620 Tax overrides, 56
gross receipts method, 610 Tax reporting group
hours worked method, 610 Canada
periodic, 620 creating, 87
year end, 611, 620 deÞned, 78
year-to-date, 620 example, 78
Social security numbers United States
verifying, 634 creating, 84
Speed entry, 319 Tax reporting ID
by employee name, 321 independent process level, 78
by employee number, 322 tax reporting group, 78
options for, 322 Taxes
setup, 320 assigning, 218
Standard time records, 332 employee, Canada
assigning, 278 assigning, 228
deÞned, 276 assigning required, 230 - 231
example, 276 important, 232
Step and grade modifying, 231
time records, 324 viewing, 231
Step and grade schedules employee, U.S.
creating, 46 correcting errors, 226
copying a schedule, 46 modifying, 222
from a shell, 46 TaxLocator, 221
mimicking a schedule, 46 viewing, 222
mimicking and updating, 46 pension payments, and, 342
options for, 46 TaxLocator, 218
updating a schedule, 46 correcting errors, 226
defaulting, 682 deduction codes, 219
defaulting with positions, 682 deduction start dates, 219
deÞned, 41 deductions
example, 41 modifying, 225
viewing, 225
employee address, and, 218

T modifying deductions, 220

purging records, 576
Tax authority setting up, 221
BSI, and, 77 when used, 219
Canada Time Accrual
creating, 85 adjustments, 496
deÞned, 77 balances, 473
closing, 448

706 Index Payroll User Guide

 followup, 449 releasing, 352, 354
printing balances on payments, 413 retroactive pay, 389
purging employees, 574 selecting, 352, 355
purging history, 573 shortfall amount, 393
purging transactions, 574 speed entry, 319 - 322
updating, 423 standard, 276, 278
updating transactions, 413 status, 299
void dates, 529 step and grade, 324
voids, and, 527 tasks, 24
warning messages, 497 work period, 304
Time and Attendance work periods, 306
adjusting, 535 Tips
entering, 590 adjustments, 582
entering history, 591 - 592 adjustments for employee, 584
history, 442 adjustments for multiple employees, 586
manual payments, and, 480 allocation levels, 198
purging records, 571 calculating credits, 393
Time record status calculation, 386
batch, 300 closing adjustment, 587
current, 300 employee, 203, 215
deÞned, 299 gross receipts, 388
error, 301 gross receipts method, 610, 616, 618
future, 300 history, 393, 442
processed, 300 hours worked method, 610, 614
Time records individual gross receipts method, 618
accuracy of, 372, 377 job code, 203
activity, 312 manual payment
attendance, 328 closing, 587
automatic, 332 manual payments
batch status creating, 584
creating, 306 minimum wage, 204
current status pay class, 33, 203 - 204
creating, 316 pay code, 204
options for, 319 pay summary group relationships, 204
date, 301 purging pay records, 571
defaulting, 677 setup requirements, 202
deÞned, 298 shortfall allocations, 198, 620
deleting, 337, 412, 442, 454, 459 hours worked, 200
deleting ßex, 382 individual gross receipts, 198
detailed, 309 tax credit, 611
editing, 364, 377 Tips calculation, 393
error, 412 deÞned, 386
errors, 453 Troubleshooting
future status payroll cycle, 369, 457
creating, 316 payroll cycle errors, 452
options for, 319
methods, 296
missing, 372, 374
moving, 352, 357 U
moving in two steps, 353 Unemployment
multiple employees, 323 balancing data, 630
offset, 42, 373, 379 continuation form, 637
overall process, 282 magnetic media, 638
overview of procedures, 283 record of employment, 629, 642
positions, 329

Payroll User Guide Index 707

 reporting, 628 reports
Upgrade creating, Canada, 151
important, 29 Workersxd5 compensation
class
creating, Canada, 150

V creating, U.S., 146

deÞned, 142
Void report, 412 followup tasks, U.S., 147
Voids options for, 151
direct deposit receipts, 534 example, 144
on payments, 465 optional setup, 143
options for, 532 options for, 243
partial payments, 535 payroll cycle, and, 144
payments, 526, 531 policy
reasons for, 526 creating, 145
reserving numbers for, 528 deÞned, 142
processing, 143
province

W
assigning, 243
use of, 242
reports, 144
W-2 forms
creating, U.S., 148
printing, 644
required setup, 143
Wage expense account, 660
requirements, 143
Wages
state
calculating, 417
assigning, 243
Wash deductions, 495
use of, 242
Weeks worked
United States
adjusting, 628, 633
thrid-party reports, 651
calculating, 633
Work periods, 36
time records
options for, 306
time records for, 304
Y
Workers compensation Year end
calculating, 650 calculating shortfall, 611
Canada payroll close, 599
third-party reports, 653 W-2 forms, 644

708 Index Payroll User Guide