#OptimumUC2016 V7 PTO & FMLA. Debra Van Fleet Software Support Specialist. Jean Pierce Implementation Specialist

Transcription

1 #OptimumUC2016 V7 PTO & FMLA Debra Van Fleet Software Support Specialist Jean Pierce Implementation Specialist Optimum Solutions, Inc. 2016

2 Paid Time Off Accrual Plans v7 Paid Time Off accrual tables are used to track the number of hours that an employee may accrue for the named plan during a specified accrual period. These plans also enable you to record how many PTO hours an employee takes during a plan year. PTO hours taken will be entered on timecards using Earnings codes you attach to the plans. Earnings codes for taken PTO hours will reduce the hours available. Accrual types may be based on calendar year, anniversary date or fiscal year. Hours can be accrued annually, monthly, per pay period, based on a percentage of hours worked, percentage of annual gross or percentage of gross wages per pay period. Define Paid Time Off Accrual Tables The most common accrual plan types are annual, per pay period, and percentage of hours worked. From the Main Menu, select option 1. File Maintenance. Select option 2. Code Tables. Use option 2 to change Paid Time Off Accrual tables. Press F6 to create. 2

3 Enter company number. Create a Plan Code with an appropriate description. Create a unique plan code to specify the accrual table. This will have to be linked to the employee record to identify which plan applies to them. Unlimited plan codes may be setup. Example: You may have a plan for salaried employees, hourly employees and a grandfather policy. Make the code something you can easily remember, i.e. VAC, VACH for hourly plan, VACS for Salary, VAC1, VAC2, etc. Create a description for the type of plan code you are creating, i.e. Salaried Vacation Plan, Hourly Vacation Plan, etc. This will print on the accrual reports generated in payroll process, update vac/sick accruals, and payroll reports menu options. When Earned: A = Hours are earned as they are accrued (i.e. immediately available to the employee) Y = Hours are accrued each time the plan accrual is run, but do not become available to the employee until an accrual date is reached. Accrual Type: This field is used to determine when and how to accrue vacation, sick, personal, and/or other time. Valid values are as follows: %GROSSPO... Percent of Gross Wages for Pay Out %GROSSWG... Percent Gross Wages - Accrue in PR Proc %HOURSWRK... Percent Hours Worked - Accrue in PR Proc DAYS Hours per Period (e.g. 8 hrs = one day) Accrual Frequency: How often will hours be accrued by employees with this plan code? % = Percent Plan in Payroll: This method of accrual (percent of hours worked) is calculated and the employee accrual updated with every payroll process. A report is generated and the employee accrual is updated in the Finish Payroll Process step. The accrual and carryover are reset when the employee's accrual date falls within the date range, (month and day) selected for the accrual program. The table for this type should be set up as percentages. A = Annually: Accrual and carryover hours will be reset on the employee s accrual date, when the accrual process is run. Only employees with an accrual date (month and day) that is between the ranges of dates entered in the accrual update process will have their accrual and carryover hours updated. This type of table should contain the number of hours accrued per year. M = Monthly: This accrual method is rarely used, because the Accrual update program makes a determination of the exact number of days an employee should have to-date and will adjust the hours accordingly. The P type accrual discussed below will also calculate on a monthly basis if the accrual table is set up with monthly hours to be accrued and the employee s hours will not be adjusted for the number of days in the period. The accrual and carryover are reset when the employee's accrual date falls within the date range, (month and day) selected for the accrual program. This type of table should contain the number of hours accrued per month. 3

4 P = Per Period: This accrual method is based on a number of hours accrued per pay or time period. For example: The accrual may be run every pay period and the accrual table will be set up with the number of hours to accrue per pay period. If the period is monthly, set up the table with the number of hours to be accrued each month and run the accrual program once a month. If the period is once a year and the accrual date for the employees is not all the same (maybe it is based on anniversary), the table will be set with the annual number of hours to accrue, but the update program will be run once a month to update the employees for the month of their annual accrual. The accrual and carryover are reset when the employee's accrual date falls within the date range, (month and day) selected for the accrual program. 4

5 Max total carryover hours: Maximum number of hours that can be accumulated in the carryover field. If this number has been met and an employee has more hours available at the end of an accrual year, those hours will be lost. Example: The maximum total carryover hours an employee may have at any time is 40. John Doe has 40 hours in carryover and 8 hours available at the end of his accrual period. Since, the carryover amount is already 40 the 8 hours will be lost. Edit Timecard: Set this flag Y to receive a warning when an employee will be exceeding hours available. For example, if an employee has 20 VAC hours available, but a timecard entry is for 40 VAC hours, a warning message will be generated. This warning will be received on the External Timeclock Interface Report if pulling time into Optimum Payroll from the Optimum Time and Attendance application or other external time clock program or on the timecard entry screen when time is entered in excess of available. Max total available hours: Maximum number of hours that an employee can have in the available field at any time. This is often used to urge employees to take their accrued time, in a reasonable timeframe. Example: The maximum number of hours an employee may have available at any time is 120. John Doe s accrual date is March. An employee may accrue 4 hours a month. John reaches 120 hours in November. John will not accrue any additional hours until he has taken existing accrued time. Allow carryover: Carryover field indicates if the employee may carry hours from one accrual year to another. Max yearly carryover hours: Maximum number of hours that will be allowed to rollover from available per plan year. Check Stub Description: Enter a description to print for the available hours on employee s paycheck stub. If left blank, the available hours will not print on the check stub. Debit and Credit GL Accounts: Enter the valid GL account numbers for debits and credits for this PTO plan. The journal entry can be created for the annual, monthly and per pay period accrual types during the Update Accrual option on the payroll menu. Percent of hours worked and percent of gross wages journal entries will be created during the Update/Finalize step of payroll processing. 5

6 Suspend Accrual for Employees on Leave of Absence? Y or N Press enter. Use option T to define Taken Earnings Types. List the earnings codes that should be used to reduce an employee s available hours. When these earnings types are entered on an employee s timecard, hours available for this plan code will be reduced accordingly. 6

7 Use option X to exclude earnings types from a % hours worked calculation. List any earnings codes that should be excluded from a %HOURSWRK type plan. Use option 7 to create the Accrual Table. The accrual table will determine how the employee is to accrue the hours based on the employee s plan. Below are examples of annual, per pay period, monthly, and percentage of hours worked accrual tables. Example #1: Annual Accrual Each full time employee is eligible for vacation time based on the following schedule. After completion of 1 year 5 days paid vacation After completion of 2 to 4 years 10 days paid vacation After completion of 5 to 9 years 15 days paid vacation After completion of 10 to 14 years 20 days paid vacation After completion of 15 years and up 25 days paid vacation All vacation is based on anniversary date. Any unused hours may be carried over from year to year with a maximum of 25 days available at any given time. Any hours not taken will be paid out upon termination. 7

8 Table sequence #: This will automatically update when a new line of entry is added. If a line needs to be removed, do not field exit or blank through the fields, use a 4 in the option field to delete. Months of Service: Enter the beginning and ending months of service for this example. Always start with 0 months of service and end with Hours Accrued: Enter the total number of hours to be accrued annually for the specific range of months of service. Although this example is an annual accrual, the anniversary date is to be used to determine the number of hours to accrue, therefore, the accrual update process will be run once a month. Max Hours Per Period: Enter the maximum number of hours an employee can accrue per accrual period, if applicable. Max Annual Accrued Hrs: Enter the maximum number of hours an employee can accrue for that year. It is recommended to enter the total number of hours an employee may accrue based on his/her years of service otherwise, they may over accrue due to overtime, etc. Anniversary Bonus: Enter the number of hours an employee will earn at their anniversary date, if anniversary date is not the accrual date, but is an eligible date for accrual of extra hours. 8

9 Max Annual Carryover: Enter the maximum number of hours an employee can carryover annually. Example #2: Per Pay Period Accrual Each full time employee is eligible for vacation based on the following schedule: From date of hire through 1 year of employment-.77 hours per pay period, maximum of 40 hours per year. From 2 years to 4 years of employment-1.54 hours per pay period, maximum of 80 hours per year. From 5 years to 9 years of employment hours per pay period, maximum of 120 hours per year. 10 years and above-3.08 per pay period, maximum of 160 hours per year. 9

10 Example #3: Monthly Accrual Each full time employee is eligible for vacation based on the following schedule: From date of hire through 1 year of employment hours per month, maximum of 40 hours per year. From 2 years to 4 years of employment hours per month, maximum of 80 hours per year. From 5 years to 9 years of employment hours per month, maximum of 120 hours per year. 10 years and above per month, maximum of 160 hours per year. 10

11 Example #4: Percentage of Hours Worked All vacation hours are earned based on hours worked. Hours will only accrue on regular or overtime hours worked. Vacation hours will accrue based on the following schedule. 1 year of service 1.93% of Regular and/or Overtime hours worked up to 40 hours per year. 2-4 years of service-3.85% of Regular and/or Overtime hours worked up to 80 hours per year. 5 years of service and up 5.77% of Regular and/or Overtime hours worked up to 120 hours per year. Remember to use option X to enter any earnings codes to be excluded on this plan type. 11

12 When starting a pay cycle only, enter a Y on Rollover Paid Time Off Accruals for % hours method when the accrued hours should be rolled into the earned hours field as available to the employee. During the calculation process, the hours indicated to be included will be added and multiplied by the percentage that corresponds to the employee s months of service. When the Payroll Update/Finalize step is run, the Vacation Hours Accrual Report is generated. This report will show the number of hours accrued and the number of hours used. 12

13 Employee Accrual Setup Once the company accrual plans have been defined, the plan codes must be associated with the employee master. Path: Main PR MENU, (1) File Maintenance menu, (1) Work with Employees, select LE next to employee s name to Work with Employee Paid Time Off. Press F6 to add a PTO code. Leave Plan Code: Assign the appropriate plan code to the employee from the list previously defined under the appropriate heading. You can link an unlimited number of plan codes to an individual employee. Effective Date: The date used to start counting employee s length of service. Stop Date: If a plan should be stopped, enter the stop date. 13

14 Accrual Date: The date the employee s accrual time will be reset based on the accrual plan. If the plan is based on calendar year use an accrual date of and the year the employee is hired. This will indicate the accrual is to be reset on January 1 and the number of years of service for the employee to compare to the accrual table. Press Enter. Accrual Detail History Use option 7 Detail History if plan hours should be entered manually when converting from another program or when starting a plan in mid year, or to view detail history after you have been running accruals. Press F6 to enter detail history. L03 MADJ PO R01 R02 R03 R04 TKN Loss - Excess over Maximum Available Manual Adjustment Paid Out Rollover - Offset Taken to Prior C/Over Rollover - Offset Taken to Earned Rollover - Current Earned/Taken to C/O Rollover - Accrued to Earned Taken Hours / Paid Dollars Transaction Effective Date: Enter the date that applies to the Transaction Reason. 14

15 Transaction Reason Code: ACR Accrued ANNBON Anniversary Bonus BEGBAL Beginning Balance BONUS Discretionary Bonus CLB Catastrophic Leave Bank Donation ERN Earned L01 Loss - Excess over Maximum Accr/Earn L02 Loss - Excess over Maximum Carryover L03 Loss - Excess over Maximum Available MADJ Manual Adjustment PO Paid Out R01 Rollover - Offset Taken to Prior C/Over R02 Rollover - Offset Taken to Earned R03 Rollover - Current Earned/Taken to C/O R04 Rollover - Accrued to Earned TKN Taken Hours / Paid Dollars VOID Reverse Accruals for Terminated Employee 15

16 Employee Vacation Calculator It is recommended that you test your setup thoroughly before using the accrual process to update employee master information. This will confirm that you have set up your tables correctly and are getting the results expected. If you do not test and the tables are set up incorrectly, the employee information will be updated incorrectly. This will require correcting each employee manually or restoring from a backup. To test your setup, press F8 on the Employee Paid Time Off screen. Path: Main PR MENU, (1) File Maintenance menu, (1) Work with Employees, select LE next to employee s name for Employee Paid Time Off. From and Through Dates: Allows you to enter a date range to test the accrual. The date range is based on your accrual type (Annual, Per period, etc). It is recommended to run accrual date ranges that would fall within each years of service bracket and on the employee s accrual date for testing. Number of periods: This will be 1, unless the accrual is to be run for more than one week for the percentage of hours worked or per pay period accrual. Note: This will not update the employee master information, as it is to be used for what if testing scenarios. 16

17 Update Paid Time Off Accruals and Optional Journal Entries Hours taken are updated every payroll. Running option 15 updates hours accrued, or earned. If the employee s accrual date falls within the date range you select in this update process, the employee s hours taken will be reset. The Annual, Monthly, and Per Period accruals require running the accrual process from the Payroll processing menu. Path: Main PR MENU, (2) Payroll Processing menu, (15) Update Vac/Sick accruals. Accrual Dates: Enter a date range that corresponds to the accrual type to be updated and enter 01 for the number of periods. PTO Plan Codes to process: Enter plan codes to process, or leave blank to process all plan codes Accrual Method (ACR or YTD): This will determine the type of general ledger accrual to be used. If your company records PTO accrual entries to the general ledger to accrue the monies owed to employees by the company, the payroll system can automatically generate these entries. 17

18 Frequencies to Update: Select the type of plan you wish to accrue by placing an X in the appropriate field. It may be necessary to run this process more than once, if the accrual types require different date ranges. Example: The vacation plan is a per pay period accrual and the sick plan is an annual plan. Create Journal Entries: Enter Y to generate a Journal Entry for the PTO accrual. Enter the fiscal period and fiscal year on your general ledger in which the journal entry should be posted. Also enter the Transaction Date in the 8 digit date in MMDDCCYY format to be used as the transaction date in your general ledger. Create Reversing PTO Journal Entries: If a reversing journal entry is to be generated, enter Y. Enter the fiscal period and fiscal year on your general ledger for the reversing entry. Also enter the Transaction Date in the 8 digit date in MMDDCCYY format to be used as the transaction date of the reversing entry in your general ledger. The general ledger entry will be created when the accrual is processed. There are two types of accruals (ACR and YTD). The ACR accrual option will expense the vacation by multiplying the employee s current hourly rate of pay by the number of hours accrued with each accrual update. Each time the accrual is run for this accrual type, the expense will be added to the previous accrual amount. Keep in mind when an employee is paid for his/her vacation hours they may have had an increase in pay since the hours were accrued, therefore, the accrual may not be the exact amount of expense that is incurred. If your accountant requires an exact accrual amount, the YTD accrual type may be used. This option will accrue and reverse with each update the employee s year-to-date available times the employee s current rate of pay, therefore, the accrual expense will reflect the actual year-to-date expense at all times. To use this option, you must start with a zero accrual in the general ledger for the vacation owed. When vacation is paid to an employee it should be expensed and not applied to the accrual. Make sure you have used the correct general ledger account number in the earnings codes setup. To define which option will be used, type CALL LIBLIST PR on a payroll command line and press enter. Page down until you locate VACACROPT in the data area column. Press enter. Notice the value is ACR. To change to use the YTD method, enter a 1 in the option field to the left of the value and press enter. You will be prompted for a TO LIBRARY, this will be your payroll data files library name, normally OIPAYFILES. The new value should be a capital YTD. Press enter and F3 to exit. 18

19 Once the fields are correctly populated, press enter to run the accrual and create journal entries. The following screen will display. If you selected to run WITH update, the employee master will be updated. If you selected either WITH or WITHOUT update, a report will be generated that shows the employees hours before the update, after the update, and the amount of change for earned, accrued, carryover, taken and available. If an employee s accrual date falls within the date range selected, the employee s hours will be reset. If carryover is set to N, all fields will be set to zero and the new accrual for the new accrual year will be updated. Example: Earned = 40, Taken = 32 and Available = 8 and the employee earns hours per month and the employee s accrual date falls in the date selected, the employee master will be updated to Earned = 3.333, Taken = 0 and Available = If carryover is set to Y, the available will be rolled to carryover, a new accrual amount updated and taken set to zero. Example: Using same as above, the employee master will be updated to Earned = 3.333, Carryover = 8, Taken = 0 and Available = If the accrual plan is set to accrue yearly, there will be hours in the employee s accrued field that will roll to the employee s earned field and is now available to use. When testing the accrual results, select run WITHOUT update. To update the employee accruals run WITH update. Remember if the accrual amounts are incorrect, a restore from backup or manual entry will need to be used to correct. 19

20 IF this update is run more than once WITH UPDATE, the employee master will be updated more than once. 20

21 Relieving Vacation/Sick/Personal/Other Accruals It may be necessary to relieve the accrual expense from your general ledger when an employee terminates. Path: Main PRMENU, (2) Payroll Processing menu, (16) Relieve Vac/Sick Accruals Company Number: Enter the 2 digit company number for the employee(s) to relieve accrued expense. Terminated Date Range: Enter the date range for the employee(s) who are terminated and their accrual is to be relieved. PTO Plan Code: Select the type of accrual(s) to be relieved. Leave blank to select all plan codes. This step will generate a general ledger entry and clear the employee master vacation/sick/personal/other screen for the appropriate plan(s). The employee master must have a termination date for the accrual expense to be relieved. 21

22 Employee Vacation Payout The vacation payout option can be used is to pay employees their remaining vacation hours at the end of the year, if defined this way by your company. This option is not designed to pay out a single employee; it is designed to pay all employees who have available PTO hours at a specific date. Process a Vacation Payout payroll from the Payroll Processing menu. Path: Main PRMENU, (2) Payroll Processing, (1) Perform Payroll Processing, F6 to create a new active pay cycle. Press enter to create the cycle. 22

23 If there are deductions/benefits to apply to the vacation payout payroll, use option F=Benefit Frequencies and F6 to add the appropriate frequencies. Use option B=Batches on the cycle and F6 to create a batch. Use option K on the batch to create the vacation payout timecards. 23

24 The screen below will display. Enter the PTO code for payout. Select type of Payout: A will create timecards for any available ours for employees with the selected Plan code. P will create timecards to pay a dollar amount based on a percent of wages for a specified period of time according to the date range entered. Company number defaults from the Pay cycle. Employee Pay Cycle: Enter a valid pay cycle or leave blank for all cycles. Employee Number: Enter an employee number or leave blank for all. Pay Cycle defaults from Start Payroll options selected previously. Batch defaults from Batch created previously. Enter Check Code for payout. Enter Multi Check Code. Enter Earnings Code that will zero out available PTO hours when payroll is updated. Press enter to create Vacation Payout Timecards. 24

25 Press F3 to return to Work with Active Pay Cycles. Complete the regular payroll processing steps. Use option P to print a Timecard Edit. Use the edit list to verify that the correct timecards have been created for the correct number of hours. Use option C to calculate the Vacation Payout payroll. Use option P to print the desired Payroll Processing reports. Use these reports to validate the calculations for the Vacation Payout payroll. Use option K to print the Vacation Payout checks and direct deposit advices. Use option P to print the Check Register. Use option U to Update/Finalize the Vacation Payout payroll. This step will post the vacation pay to the employees earnings history, and it will also reduce available PTO hours, bringing the selected employees available hours to zero. Return to the Payroll Processing Menu and process the ACH/Direct Deposit if applicable. From the Payroll Processing Menu, use option 3 to access the General Ledger Journal Entries menu and select the appropriate options to create and post journal entries for the Vacation Payout payroll. 25