CENTRAL SUSQUEHANNA INTERMEDIATE UNIT Application: Payroll

Transcription

1 CENTRAL SUSQUEHANNA INTERMEDIATE UNIT Application: Payroll Hourly-Daily Accruals Step-by-step Instructions 2013 Central Susquehanna Intermediate Unit, USA

2

3 Table of Contents Introduction... 1 Accrual Basics... 2 Initiating Hourly/Daily Accruals... 2 Employer Parameters... 2 Processing Hourly/Daily Accruals... 3 Payroll Entry... 3 Hourly/Daily Accrual Reports... 4 Hourly/Daily Accrual Distribution... 5 Stop Hourly/Daily Accruals Central Susquehanna Intermediate Unit, USA

4

5 INTRODUCTION This guide covers how to accrue Hourly/Daily and extra pay items that occur over the summer. These payments need to be recorded as an expense to the employer in the prior fiscal year and reported to PSERS as prior year earnings. In this instruction guide you will learn: How to initiate the Hourly/Daily accrual process. How to designate payments to be accrued during a payroll. How to verify Hourly/Daily accrual payments. How to post Hourly/Daily accrual payments to Fund Accounting. How to stop accruing Hourly/Daily accrual payments. Revised: 01/17/ Central Susquehanna Intermediate Unit, USA Page 1

6 ACCRUAL BASICS Salary accruals are processed in advance of the payment. These accruals create the expense of the salary wages and benefits prior to making the payments to employees. Hourly/Daily accruals are processed with the payroll rather than in advance, as these payments are not known prior to the payroll in which they are paid. INITIATING HOURLY/DAILY ACCRUALS Employer Parameters Changing the Current fiscal year updates all wage account records that were not included in the Salary accrual process to the new fiscal year. After you change the Current fiscal year on the EMPLOYER PARAMETERS screen, select the Accrue Hourly/Daily Wages checkbox, if needed. The Accrue Hourly/Daily Wages option is required to designate wages as an Hourly/Daily accrual. If you do not select this option, changes to the fiscal year on employee account records would affect only the employer share of retirement and the year for which wages are reported in the PSERS MONTHLY WORK REPORT. You could not select an Accrual Type, which would allow you to process an hourly or daily accrual. Revised: 01/17/ Central Susquehanna Intermediate Unit, USA Page 2

7 PROCESSING HOURLY/DAILY ACCRUALS Payroll Entry If you do select the Accrue Hourly/Daily Wages checkbox option, when the fiscal year is manually changed to the prior fiscal year in Payroll Entry wage records are identified as Hourly/Daily accruals. An A should be entered into the Accrual Type field to identify that the payment is to be processed as an accrual. If the fiscal year is changed on a fixed record, the A will remain for future payments to be accrued. If an accrual is needed for only one pay, a temporary record can be used to make the payment, or after the payroll is processed you can use the MASS UPDATES > WAGE FISCAL YEAR menu item to reset the year for Hourly/Daily accruals and to remove the 'A' Accrual Type designation. Revised: 01/17/ Central Susquehanna Intermediate Unit, USA Page 3

8 Hourly/Daily Accrual Reports You can generate Hourly/Daily accrual reports using the PROCESS PAYROLL > HOURLY/DAILY ACCRUAL DISTRIBUTION menu item. These reports will include only records processed with an A Accrual Type. The distribution reports allow you to review (by employee or by account) the information that was processed as an hourly/daily accrual. Use the Hourly/Daily accrual reports to verify employees who should have been processed as an accrual. Use the totals from the reports to verify the total accrued wages on the REPORTS > STANDARD PAYROLL > ACCOUNT DISTRIBUTION reports. Employees with Hourly/Daily accruals during the payroll will be designated on the Account Distribution reports with a ## symbol and should have the prior fiscal year displayed. The Act 29 Status option on the Hourly/Daily Accrual Distribution report is run for all Hourly/Daily Accruals processed over the summer based on the payroll date entered. This information is requested by auditors to verify your new and existing reimbursement amounts. When all Hourly/Daily Accruals have been processed, select this report and enter the last payroll date to see the total of all hourly/daily accruals. Revised: 01/17/ Central Susquehanna Intermediate Unit, USA Page 4

9 HOURLY/DAILY ACCRUAL DISTRIBUTION Wages paid with an A in the Accrual Type field are transferred to Fund Accounting like accrued salaries, which have a P in the Accrual Type field. Because accrued salaries are recorded as an expense in the prior fiscal year during the accrual process, the regular payroll distribution is designed to relieve the payable of wages previously expensed. After the payroll is processed, Hourly/Daily accruals require an additional transfer to record the expenses in the prior fiscal year. The Transfer option for the Hourly/Daily Accrual Distribution report records the expenses with a 6/30 date and a purpose code of HA for Hourly Accrual. To provide an audit trail in Fund Accounting, the actual Payroll Date is included in the transaction description for each transfer. After each payroll, generate the distribution reports to assist in verifying the accrual totals and perform the Transfer to record the expense in Fund Accounting. Revised: 01/17/ Central Susquehanna Intermediate Unit, USA Page 5

10 STOP HOURLY/DAILY ACCRUALS Although the A can be removed for individual employees using the spacebar and the fiscal year can be changed manually, we recommend using the ADMINISTRATIVE FUNCTIONS > MASS UPDATES > WAGE FISCAL YEAR menu item to ensure that all related records are updated. Use the WAGE FISCAL YEAR menu item even if some A designations are removed manually. Enter the fiscal year information in the Current Fiscal Year and Change Fiscal Year to fields and select the Hourly Accrual option. Click the Get Records button to display records designated with the A Accrual Type. Click the Post button to make the changes. After the post process is complete, a prompt asks if you are finished processing the accruals. Click Yes to remove the checkmark from the Accrue Hourly/Daily Wages option on the EMPLOYER PARAMETERS screen. After the Accrue Hourly/Daily Wages option is deselected, changing the Fis Yr (fiscal year) in PAYROLL ENTRY will not allow an A to be entered into the Acc (accrual) Type field. If the mass update process was NOT used to remove the A and update the fiscal year, then any records remaining with an A in the Acc Type field allow hourly accruals to continue. Revised: 01/17/ Central Susquehanna Intermediate Unit, USA Page 6