This checklist provides an overview of the end of year payroll accrual process used to post payroll expenses for employees that work in one fiscal

Transcription

1 This checklist provides an overview of the end of year payroll accrual process used to post payroll expenses for employees that work in one fiscal year but do not get paid until the next fiscal year. 1

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3 The district will need to decide which pieces of the accrual system it should use to best meet its needs. Note: In prior years, it was necessary to use the monthly accrual process to ensure all payroll expenses were posted to the books by the end of June for grants ending in June. However, since most grants no longer end in June, there may no longer be a need for the district to accrual monthly which requires additional work for the district. If the district has a July to June fiscal year but pays employees from September to August, the district could use the monthly accrual process to ensure payroll expenses are posted by the end of the fiscal year in June. 3

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6 Once the report is displayed, verify that the Accrued Pay balance is $0 for each employee for If accruals exist for 2015, those amounts will need to be corrected prior to this process by using the Zero School YTD Accruals utility. If the district chooses to accrue employees who receive their first check in August (11 and/or 13 month employees), the accrual totals for August should display on the 2016 report. 13 month employees are new employees to the district who have elected the option to receive a check from August 2015 to August 2016 if allowable by the district. 12 month employees do not need to be accrued since they work each month as they are paid. 6

7 Verify that all accrual amounts are cleared for 216X and 221X accounts, or that they represent just 11 and/or 13 month employees who receive their first check in August. The totals in Finance should match the School Year To Date totals in HR. If other accruals exist, those amounts will need to be corrected prior to this process by creating a Journal Entry. 7

8 Prior to clearing last year s EOY Accrual Data, check the accrual accounts in the general ledger to be sure the EOY accrual reversal has been posted in current year for employees who were included in EOY accrual calculations but not set up to accrue monthly. 1. Select Clear EOY Accrual Data Only. Do not use the arrows to move tables to the right. Doing so will clear all of next year payroll. 2. Click Execute. 8

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10 Enter 2016 in the School Year field and then click Retrieve to input the new rates. Be sure the 2016 rates are being updated and not the 2015 rates. Once the rates have been entered, click Save. 10

11 Build a user created report to verify employee information. Select the following fields to be included on the report: Employee Number First Name Last Name Termination Date Pay Status Job Code Job Description Pay Type Contract Begin Date Contract End Date Payoff Date Nbr Days Employed Contract Total Contract Balance 11

12 Daily Rate Accrual Code Accrual Rate TRS Year Fund TRS Grant Cd 11

13 Open the report as a CSV report or in Excel. Sort by Pay Status and then by Fund: Verify all Active and Inactive employees. Be sure inactive employees have a Termination Date. Verify federal funds have a grant code. Filter by Pay Status to exclude Pay Status 2 (inactive) and sort by Accrual Code: Verify everyone who needs to be accrued has an Accrual Code and Accrual Rate if the district is going to accrue monthly. If the district is NOT going to accrue monthly, employees should NOT have an accrual code. Generally, 12 month employees and hourly employees do not accrue and therefore should not have an accrual code. 12

14 Verify the Daily Rate matches the Accrual Rate. Verify the Contract Begin Date, Contract End Date, Payoff Date, and # of Days Empld. Verify the TRS Year is N for employees paid from September to August and verify it is a Y for nonstandard employees. Verify the Contract Total, Contract Balance, and Job Codes. 12

15 This report compares the Computed Balance (Pay Rate X Remaining Payments) to the Actual Balance. If a variance exists, the employee may be underpaid or overpaid during the year. Enter A to sort alphabetically. Enter an acceptable difference. Assuming the district has 12 monthly payrolls, $.11 has been entered as the acceptable difference. Any more than that could be divided into the 12 monthly payments. This report is designed for Pay Type 1, contracted and Pay Type 2, non contracted employees who have an annualized salary so the report can be run for each Pay Type separately or for all employees at once. Disregard variances for Pay Type 3, hourly employees and Pay Type 4, substitutes. Resolve variances under HR > Maintenance > Staff Job/Pay Data > Job Info Tab. 13

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17 1. Under Table Type, select Hourly for pay type 3 and 4 employees. Select Daily for pay type 1 and 2 employees. 2. Click Populate Table. 15

18 1. Enter the Estimated Days worked for EOY Accruals for the Start Dates to be included in EOY accrual calculations. If populating the hourly table, enter hours rather than days. 2. Click Execute. 3. Once you receive a message that the Process completed successfully, click Cancel. 16

19 1. Review the table for accuracy. Delete any information not needed. 2. Click Save. 3. Click Print and/or save in the EOY Payroll Accruals subfolder (refer to EOY Payroll Accruals Process Step 1). 17

20 Employee distributions currently have been incremented to the upcoming fiscal year (6) in next year payroll. To post to the August books where accounts are primarily fiscal year 5, TxEIS will automatically decrement all distributions. This tab is used to select funds that should not be decremented to a 5 but rather should post as a 6 in the August books. Do NOT select local funds. Grant funds should be considered individually to determine which funds open for expenditures prior to September 1. When grant funds that pay salaries are chosen on this page, they keep the fiscal year in next year payroll and are not automatically decremented. Click Funds/Yr List button to select the funds to be posted to a year 6 account in the August books. 18

21 1. Select the Fund to exclude a fund from decrementing. Fund 212 is used as an example only. Each district will need to determine which fund if any, need to be selected. 2. Click OK. 19

22 1. Review the table for accuracy. Delete and/or Add any funds as needed. 2. Click Save. 3. Click Print and/or save in the EOY Payroll Accruals subfolder (refer to EOY Payroll Accruals Process Step 1). 20

23 The Run Calculations tab uses the employee's pay information and the estimated hours or estimated days in the Accrual table to calculate the pay for each employee that is to be expensed in current year but paid in the next school year. First, the system computes the salary by taking either the next year accrual daily rate or the hourly rate, depending on the person's pay type, and multiplying it by either the number of days or the number of hours worked as set up in the Accrual table. Next, the Year To Date amounts for associated benefits, such as FICA and TRS are calculated by multiplying the pay by the appropriate percentages. 1. Enter the Calculation Date as Select the Exclude Non Standard Employees box. These are 11, 12, and 13 month contracts that receive their first pay check of the new school year before September. They should have the TRS Year box checked on the Maintenance > Staff/Job Pay Data page. 3. Select the Exclude Substitutes box. 21

24 4. Use the arrows to select the employees. 5. Click Run. 21

25 1. Review all messages and make corrections as needed. Employees on this list will NOT be included in the EOY Accrual calculations. NOTE: If any corrections are made on the employee records, you must return to the EOY Accrual Table Step 2 and repeat from there. 2. Click Close. 22

26 Review each report to verify employee data for EOY Accruals and then save in the Step 4 Accrual Reports subfolder (refer to EOY Payroll Accruals Process Step 1). 23

27 Once the reports have been verified, the general journal can be created to interface amounts to Finance. 1. Select the File ID that represents the school year. 2. Enter the JV Number: EOYACC. 3. Select the Calculation. 4. Click Execute. 24

28 1. Review the EOY Accrual General Journal Transactions report by comparing the amounts for each fund with those displayed on the EOY Accrual Distribution report from Step Save in the Step 5b Create General Journal subfolder (refer to EOY Payroll Accruals Process Step 1). 3. Click Save as Pending. NOTE: If any corrections need to be made follow the steps below: a. Go to the Interface to Finance tab (Step 6) and click Delete Pending. b. Change to current year payroll to repeat Step 3 Clear EOY Accrual Data. c. Change to next year payroll and make changes as needed. d. Go to the Utilities > Export by Human Resources by Payroll page to make a backup of current year and next year payroll frequencies. e. Repeat EOY Accrual Table Step 2. 25

29 Now that the reports and general journal have been verified, the calculations are ready to be interfaced to Finance. 1. Under Next Year Frequency select the August accounting period. 2. In the Interface Transaction Date field, enter Select the calculation. 4. Click Preview Report. 26

30 1. Review the EOY Accrual General Journal Transactions report and verify everything is correct. 2. Save in the Step 6 Interface to Finance subfolder (refer to EOY Payroll Accruals Process Step 1). 3. Select Emp Report. 27

31 1. Review the EOY Accrual Information report and verify everything is correct. 2. Save in the Step 6 Interface to Finance subfolder (refer to EOY Payroll Accruals Process Step 1). 3. Click Interface. 4. Make a backup when prompted and save in the Step 6c Interface to Finance Backup subfolder (refer to EOY Payroll Accruals Process Step 1). 28

32 Save in the Step 7 Finance General Ledger subfolder (refer to EOY Payroll Accruals Process Step 1). The balances should reflect the EOY accruals (and August payroll accruals if the district accrues 11 and/or 13 month employees. 29

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