PRWIN Begin Calendar Year 2013 Instructions

Transcription

1 SM Financial Management for Windows PRWIN Begin Calendar Year 2013 Instructions

2 Update Federal Tax Tables Increase the FICA Maximum Adjust FICA Deduction Amount Additional Medicare Tax Withholding Update IMRF Benefit Add New Date Ranges Change Deduction/Benefit Names Payroll Record Maintenance Important Notes: Print these instructions so they can be referred to easily while making changes. PRWIN must be updated to at least version for the 2013 Tax Tables. See Notice 1036 at All 2012 payrolls should be complete before updating to this version. STI is aware of the 2013 Tax Table changes and FICA/Soc Sec deduction percentage changing from 4.2% to 6.2% at the beginning of January See The FICA/Soc Sec deduction percentage must be changed manually by you in PRWIN. See page 5 of these instructions. If there are other changes that affect the calculation of your payroll that we are not aware of, you must make the necessary changes. Remember to always verify each and every payroll before printing checks by using the document found at > Documents > PRWIN > Voids Category > Avoid the Void. If assistance is needed please call only with program related questions. If ing please include your name, agency, and phone number. The address is fmsupport@sti-k12.com Our phone number is (800) Software Technology, Inc. 2 Copyright 2013

3 Index A Tax Tables Updating and Verifying... 4 B. FICA/Soc Sec Employee Tax Rate Change... 5 C. FICA/Soc Sec Maximum... 7 D. Additional Medicare Tax Withholding... 8 E. IMRF Benefit Amount Update... 9 F. Payroll Date Ranges G. Deduction/Benefit Name Change H. Payroll Record Maintenance Software Technology, Inc. 3 Copyright 2013

4 A Tax Tables Updating and Verifying 1. The 2013 Tax Tables are contained in at least version Update to this version or higher before continuing. 2. Go to File Add/Edit Tax Tables Check the Single and Married Income Schedule and the Personal Exemptions to make sure they reflect the numbers below. If they do not, click Import then Save. Recheck the numbers. If they are still not correct re-update the program. 3. To verify the above tax tables refer to the Notice 1036 found at Software Technology, Inc. 4 Copyright 2013

5 B. FICA/Soc Sec Employee Tax Rate Change The following information box was copied from Very Important: Before doing the first payroll for January 2013, follow these instructions to increase the FICA/Soc Sec deduction from 4.2% to 6.2%. Data Entry Deductions 1. Search for and select FICA/Soc Sec. Note: This must also be done for all other FICA/Soc Sec deductions if there is more than one. 2. Edit. 3. Change the Calculation Method Percentage to 6.2%. The Max should be $7, See page 7. Software Technology, Inc. 5 Copyright 2013

6 4. Save. 5. To verify the change, look in an employee s record that has the FICA/Soc Sec deduction and be sure the deduction amount has also changed there. 6. After the validation of the first payroll in 2013, take the total FICA/Soc Sec wages and multiply by 6.2% and compare it to the amount calculated by payroll. The amounts should be the same or within very few pennies. Software Technology, Inc. 6 Copyright 2013

7 C. FICA/Soc Sec Maximum The following information box was copied from The Social Security maximum taxable earnings for 2013 are increasing from $110,100 to $113,700. In PRWIN the Max amount in the FICA/Soc Sec base benefit and deduction should be $7, beginning with the first payroll in January This is calculated by multiplying the maximum taxable earnings by the Social Security tax rate. $113,700 x 6.2% = $7, Data Entry Benefits and Deductions 1. Search for and select FICA/Soc Sec. This must also be done for all other FICA/Soc Sec benefits and deductions if there is more than one. 2. Edit. 3. Change the Max field to $7, for benefits and deductions. This amount is determined by multiplying the Soc Sec wage base ($113,700) by 6.2%. 4. Save. 5. To verify the change, look in an employee s record that has the FICA deduction and make sure the maximum also changed there. Software Technology, Inc. 7 Copyright 2013

8 D. Additional Medicare Tax Withholding The following box was copied from STI is aware of the Additional Medicare Tax Withholding and we have plans to make provisions for this in PRWIN. Because it is not likely that an employee will reach the $200, wage limit for several months in 2013, this will be in a future build this year. If any employee does reach the $200, limit before it is available please make the necessary adjustments manually. Software Technology, Inc. 8 Copyright 2013

9 E. IMRF Benefit Amount Update IMRF should send a notice stating how much the IMRF benefit percentage will be for Before running the first 2013 payroll change the percentage as follows: Data Entry Benefits 1. Search for and select IMRF. 2. Edit. 3. Change the IMRF percentage to the new amount. 4. Save. 5. To verify the change, look in an employee s record that has the IMRF benefit and make sure the default percentage also changed there. 6. Use the total pages of the Validation report for the first 2013 payroll to make sure the IMRF benefit is calculating correctly. Multiply the total IMRF benefit wages by the new percentage and it should equal the total IMRF benefit amount within a few pennies. Software Technology, Inc. 9 Copyright 2013

10 F. Payroll Date Ranges The payroll date ranges for the new calendar year must be added. Date ranges in the PRWIN program are a user preference and must be manually added. Add as many or as few as needed. STI recommends having at least the calendar year and fiscal year. The date ranges are used in Attendance, Substitutes, Time Cards, and the Employee s History tab. References Date Ranges 1. Click Add. Type the description of the date range in the New Reference field and click OK. 2. Edit. 3. Enter the Begin and End Date range. 4. Save. Software Technology, Inc. 10 Copyright 2013

11 G. Deduction and Benefit Name Change If there is a need to change the names of base deductions and/or benefits a good time to do it is before running the first payroll of the calendar year. Following are some things to consider: Depending on the date range of a report, some reports will show the old and new deduction/benefit name and the corresponding amounts. Some reports that are run for a time when only the old name was active will now show the new name. Because of this it is important to not make any drastic changes. Examples: Do not change a TRS to a THIS or to FICA. It is ok to change Blue Cross Blue Shield to Health Alliance or TRS Admin to TRS 24 because they are really the same thing just named differently. H. Payroll Record Maintenance To prevent the PRWIN database from becoming so large that the program does not operate properly, this cleanup wizard should be run usually once every year. The IRS requires 5 years be saved so that is a good number to use when entering delete dates, but a smaller number of years can be saved if there are a large number of employees. IMPORTANT: At the end of every calendar, fiscal year, and before running Record Maintenance, a backup of the program should be made to a flash or zip drive and saved forever so the data can be restored whenever necessary. There are no written instructions for using the cleanup wizard, just follow the on-screen instructions. It is a good idea to go through the wizard to read the options and select what is wanted and then at the end select Cancel if not sure. Then do it over and over until the proper selections have been made. The wizard will not allow records less than 18 months old to be deleted. That assures that the current fiscal and calendar years will always be available. Software Technology, Inc. 11 Copyright 2013