Deltek Insight 2012: Labor, Leave and Payroll

Labor, Leave and Payroll

Stacey McCarver, DeltekGC-477

2 ©2012 Deltek, Inc. All Rights Reserved

Discover tips and tricks for streaming your Labor, Leave and Payroll processes. If you’ve given up hope on reconciling 941s, or accruing or correcting your leave balances in GCS, this session is for you. We’ll discuss the types of leave available and the how-to's of tracking Comp time and banked holidays. For Payroll, we'll also show features designed as time savers! This session will also cover how Deltek Time factors into the equation.

Abstract


The purpose of an IRS 941 tax form is to report and deposit amounts that employers are withholding from their employees wages.

Reconciling the withholding/liability to the deposits

941 — Employer's Quarterly Federal Tax Return


Employers can't wait until they file the return to send the quarter's 941 tax money to the IRS.

Employers must make regular deposits throughout the year.

Depending on how much they pay in wages, they must deposit 941 taxes with the IRS either once a month or every two weeks.

If an employer's outstanding 941 taxes reach $100,000, that employer must deposit it by the next business day, regardless of its normal deposit schedule.

Deposits


The quarterly payroll tax information report extracts most of its data from the earnings record file.

If the report does not have the correct totals withheld, the amounts on the report can be traced back to individual payrolls.

Run a summary earnings report for the entire quarter.

Verify that the amounts withheld agree with the quarterly payroll tax information report.

Run summary earnings reports for each check date.

Verify that each report agrees with the tax deposits made for that payroll.

Reconciling Tax Deposits


Run the FICA reconciliation report Systems Administration / Misc Utilities / Misc Functions / UT-FICAACharacter Application printing screen, select to print to a file Open the file with Notepad

Reconciling FICA


UT-FICAA Sample Results

Minor differences are to be expected due to accumulated rounding..


Some reasons why FICA may not be correct: Taxability was changed on a deduction during the year. Gross pay or a FICA exempt deduction was changed in a pay record in

edit payroll and FICA was not recalculated. The Social Security limit was changed after an employee exceeded the

previous limit. After an employee exceeded the Social Security limit, a payment was

reversed that was made before the limit had been exceeded. There may be an erroneous non-FICA amount in the earnings record

file, due to either an employee or a pay type having been recorded as FICA exempt when the timesheet was entered.

Zero the erroneous non-FICA entries in the earnings record file. Re-run UT-FICAA.

Reconciling FICA


Corrections made during the payroll year for a current employee

If FICA was not withheld correctly, an adjustment should be made to FICA in a subsequent payroll. If this adjustment is made in a calendar quarter subsequent to the error, manual adjustments will need to be made to the 941s both for the quarter being reported and for the quarter when the adjustment is made.

Corrections made after closing the payroll year for a current employee

Since the payroll year has already been closed, the adjustment cannot be made directly to FICA, since it would be recorded in the wrong payroll year. An adjusting journal entry will also be required, because payroll cannot be posted for the prior payroll year.

Correcting FICA


Corrections made during the payroll year for a terminated employee

If the employee’s FICA was over withheld, enter an adjusting X record in edit payroll with a negative FICA deduction to make a payment to the former employee.

If the employee’s FICA was under withheld, either the amount should be collected back from the employee or the amount under withheld should be grossed up and applied as additional pay to the employee.

Corrections made after closing the payroll year for a terminated employee

Since the payroll year has already been closed, the adjustment cannot be made directly to FICA, since it would be recorded in the wrong payroll year. An adjusting journal entry will also be required, because payroll cannot be posted for the prior payroll year.

Correcting FICA

Leave


PTO – Paid Time OffVacationSickPersonalHolidaysComp TimeFloatersOther Leave- Jury, Military, BereavementLWOP – Leave without pay

Leave Types


Leave taken is entered on the timesheet to either the accrual or expense account, depending on the method used for the particular type of leave

When the Payroll Journal is posted to the G/L, the Earnings Record File is updated with the amount of leave taken and accrued for that pay period

Accrued Leave Report & Inquiry is updated by the Payroll Journal Posting.

Recording Leave


Four major leave types are availableThe order in which the leave amounts are presented on the paycheck and Accrued Leave Report is determined by the order in which they are set up in the Payroll Control File.

Common setup: Vacation - (Paid Time Off) Sick Comp Holiday

Leave Types


Compensatory time is paid time off granted to an employee for working extra hours

To accrue comp time for overtime hours worked, charge all hours to the appropriate accounts; then charge the difference between the total hours and the paid hours against the comp time account

Record as Negative hours on Timesheet when earned or accrued

Record as Positive hours on Timesheet when taken or expensed

Tracking Comp Time


Two ways to track Holiday leave in GCSExpense as you goAccrual method

Banked Holidays


Importing and Exporting leave between GCS Premier and Deltek Time & Expense (T&E).

The export to T&E sends the beginning balance from the Employee Master File and each accrual from the Earnings Record File.

T&E maintains leave used on its own and is not updated by GCS Premier. Therefore, payouts of leave balances must be entered as adjustments in T&E. This is not necessary for terminating employees as they will become inactive.

Leave used is accounted for in GCS Premier by having the appropriate leave account (expense or accrual) recorded in the timesheet data exported from T&E.

Leave and T&E

Payroll


Scheduled Pay ChangesAssumed TimesheetsTerminating Timesheets

Payroll Time Savers


Generate pay changes for a group of employees meeting specified selection criteria.

Create records with a fixed dollar change in hourly rate, a fixed dollar new hourly rate, or a percentage change in hourly rate

Update the Scheduled Pay Changes File

The main purpose of this feature is to allow payroll personnel the convenience of entering mass pay changes when they receive them and postpone the usage of the new information until the Employee Master is updated with the information.

Scheduled Pay Changes










Print reportUpdates the EMFNo undo for this post!



Assumed Timesheets


Automatically create "Assumed Pay" timesheets for employees with missing timesheets within the current pay period

Later, when a "Regular" timesheet is entered and the Assumed Pay Timesheets Outstanding field in the Employee Master File is greater than zero, you can create a "Reverse Assumed" timesheet to reverse the "Assumed Pay" timesheet.

Assumed Timesheets


Timesheets are treated the same as any regular timesheetPay Type "ASP" and "REV” The timesheet date is the last day of the current pay period. Will be included in the next regular paycheck generatedWill be included in the next Labor Distribution posting.

Assumed pay timesheets are not compatible with T&E.

Assumed Timesheets


Select pay frequencyAccount to chargeAuto Adjust %Number of HoursSalaried/Hourly

Assumed Timesheets


Terminating Timesheets


Automatically create "Terminating" timesheets for payout of accrued leave for employees who terminated within the current pay period

Timesheets are treated the same as any "Regular" timesheet

Pay Type "TRM,"

Will be included in the next paycheck run that is generated

Will be included in the next Labor Distribution

The timesheet date chosen is the last day of the current pay period.



Create T/S if balance not zero – This option is used primarily for accrued vacation; an employee is paid for accrued

vacation and pay is deducted for negative vacation.

Create T/S only if balance < zero – This option is used sometimes for sick leave, when accrued sick leave is not paid

upon termination, but negative sick leave is deducted from the final check.

Create T/S only if balance > zero – This option would be used if you have a leave type where you pay the employee

for an accrued leave balance, but do not deduct negative leave balances from employees' pay.

Do not create T/S for leave type – This option is primarily for leave types such as holiday, for which you track the

amount accrued and/or taken, but you do not reconcile any balance with the employee upon termination.

Leave Processing Options


Enter termination date in EMFSelect leave types to payoutCreates positive or negative timesheet records



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Deltek Insight 2012: Labor, Leave and Payroll