Learn Applications -> Payroll

Payroll

The primary function of the payroll application is to calculate payroll for salaried, hourly, and
commission only employees. Because eNsite is fully integrated, the information you enter in the payroll application is automatically supplied to other parts of the system. In this case, this information is used in the personnel application to update history information.

How you enter information in the Personnel database directly affects how your Payroll application works. Therefore, you should complete the Personnel portion of this training guide before continuing with Payroll.

The payroll application maintains an accurate account of personnel information affecting each pay period. This includes rate of pay, deductions for taxes, allowed vacation and sick days, and so on.

The payroll application also maintains payroll history for each employee and updates general ledger. To operate your business more effectively, you need immediate access to information about it.

Your eNsite system arrives with a catalog of standard reports with predesigned formats. In many cases, these predesigned reports should meet your needs.

Setting Up Payroll

The first part of setting up payroll is entering names in the personnel database. This is discussed in the Personnel portion of this training guide.

Pay Codes

You will need to set up pay codes. The Pay Code field in the (HN) screen indicates whether an employee is hourly, salaried, or commission only. If an employee is paid an hourly wage, specify H. If an employee is salaried or commission only, specify S.

Rate of Pay

You must also set up the rate of pay. The Rate $ field in the (HN) Personnel Master screen determines the rate of pay for each employee. This field works in conjunction with the Pay Code field to calculate wages. For hourly employees, you enter the hourly wage in this field. For salaried employees, enter the gross monthly salary in this field. For commission only employees, you specify S in the Pay Code field and enter 0.00 in the Rate $ field.

Group Codes

You must also set up group codes. (These are also discussed in Personnel.) Group codes allow you to calculate payroll separately for different groups of employees. Use this field
when one group of employees is paid with a different frequency than another group. For example, employees who are paid on a weekly basis might be assigned one group code while employees who are paid twice each month are assigned another.

Group codes are set in the Group field in the (HN) screen and are user-defined. They can be one alphanumeric character. For example, you could assign a group code of W for employees who are paid weekly.

General Ledger Numbers

You must assign a general ledger number for each employee. This number designates how an employee’s salary is expensed. Specify the general ledger number in the G/L # field in the (HN) screen before you print payroll. Although the location is the only portion of the general ledger number the system requires to create an employee record, your general ledger summations will not balance if you do not specify a general ledger expense account.

Tax Tables

Before you can actually print payroll, you must set the federal and state withholding tables in the (L4) Federal Payroll Tables and (L5) State Payroll Tables screens, respectively.
The federal tax table is not location specific. However, the state tax table lets you enter a tax table for each location if you have locations in different states. Some states do not have a state income tax. However, percentages and amounts for those that do vary from state to state. Therefore, you must verify the percentages and amounts that apply to your state before you begin using the payroll application.

Parameters

Parameters for Payroll are set up in the following screens:

• (LHN) Payroll/Personnel Parameters screen
• (L4) Federal Payroll Tables screen
• (L5) State Payroll Tables screen
• (L5T) State Payroll Tables screen
• (L2) G/L Master Numbers screen.

Using Payroll

Once you set up parameters, you will need to setup in the (I) Payroll Update screen.

Using the (I) Screen

1. In the (I) screen, you will need to post time card detail. You can use the [A] Add action code or you can enter total hours using the [S] Set Period action code.
   
   
2. To specify salaried employees, use the [S] Set Period action code.
   
   
3. To figure payroll, select the [F] Figure action code.
   
   
4. Use the [C] Change action code to change pay period information.

Using the (V) Screen

You will also use the (V) Personnel and Payroll Reports screen for many of your payroll functions.

1. Use the [A] Print Personnel Report function to print a listing of personnel in the personnel master file. This report includes: base rate, pay code, group code, and deductions.
   
   
2. The [B] Print Payroll Register function provides three reports.

• You can run the payroll register for the current pay period. This report includes: gross pay, deductions, and net amount for each employee figured for that pay period. This report should run twice. Print it before the checks are run so you have a hard copy of what the system has figured. Then, print it after the checks are printed, and type Y at the Release prompt to release current period checks. This release will update general ledger (if you are on Auto-Post) and update the year-to-date figures in the (HN) screen.
  
  
• You can run the payroll register for the quarterly pay period. This report includes details for each pay period within the specified dates. This report is also used to release voided checks.
  
  
• Use this function to run the check register. This report lists checks written in payroll.

3. Use the [C] Print Payroll Checks function to run checks.
   
   
4. Use the [D] Print State and Fed Reports function to print the state quarterly report and Federal W2s.

• The State Quarterly report is used in many states for figuring unemployment compensation. A range of dates may be specified. A cap for this report can be specified in the (L5) State Payroll Tax Tables screen.
  
  
• You can print W2s. After that, W3s will print.

Voiding Checks

To void a released check, use the following steps:

1. In the (I) screen, select the [V] Void action code.
   
   
2. Enter the employee ID # or Name, then specify the check number.
   
   
3. Run a quarterly payroll register and respond with Y to the Release prompt. The check will appear as voided in the check file, reverse the G/L entries, and reset your year-to-date figures in the (H) Personnel Master screen.