Payroll Best Practices & What’s New

1. Payroll Best Practices & What’s New Presenter – Mike Lasanowski Payroll Specialist 2013 Customer Conference

2. Agenda 1: Maintain Employee Records Field Level and Button Security 2: Time Entry and Viewing Pay Rates 3: Tracking Employee Loans/Advances 4: Customizing Deductions 5: Quarterly Tax Reports (U.S.) 6: Processing Retiring Allowances (Canadian) New Features

3. Maintain Employee Records & User Access Fields and buttons in the Maintain Employee Record screen can now be disabled and/or hidden by user.

4. Button Security

5. Field Level Security

6. Time Entry and Viewing Rates Can now restrict viewing of rates in time entry by user.

7. Tracking Employee Loans/Advances Track employees loans and advances through the G/L.

8. Customizing Earnings/Deductions Set Pre tax rules for deductions (U.S.) Set Other Earnings to use Supplemental rate (U.S.) Link Earnings and Deductions (U.S.) Set Other Earnings to use Bonus Method (Canadian) Set RRSP Benefit to be taxed or not be taxed federal tax (Canadian)

9. Pre Tax Rules (U.S.) Set under Customize as opposed to by employee.

10. Earnings and Supplemental Rate (U.S.)

11. Linking Earnings and Deductions (U.S.) Link a deduction code to an earning code to have it automatically calculate whenever something is entered for that earning. Has the net effect of the amount being taxed but not paid to the employee.

12. Other Earnings & Bonus Method (CDN) Define for all Other Earnings (E07-E24) whether or not to use the Bonus Method to calculate taxes on those earnings.

13. RRSP Benefit Code (CDN) Specify whether or not you want RRSP Benefit to be taxed . Controlled by the description, if RSP is together in the description then it will not tax the benefit (will still be included in taxable income)

14. Quarterly Tax Reports – U.S. Quarterly reporting options exist for 941 Report. 940 Report, State Unemployment report. In addition option exists for several states to file State Unemployment details electronically.

15. FUTA REPORT The FUTA Report shows YTD FUTA taxable wages, QTRLY FUTA taxable wages, excess wages and resulting FUTA tax (FUTA taxable wages are gross wages less any deductions set with a pre tax rule of ‘U’). The rate for FUTA is pulled from SWH/SUI button in the Payroll Profile. When running the FUTA report for the 4th Qtr there is also an option to run a YTD FUTA report that will also show deduction amounts that are set to be pre-taxed for FUTA

16. SUTA Report Similar to the FUTA report, the SUTA report shows Report shows YTD SUTA taxable wages, QTRLY SUTA taxable wages, excess wages and resulting employee (if applicable) and employer SUTA tax (SUTA taxable wages are gross wages less any deductions set with flag to reduce SUI wages). The rate and maximum for SUTA is pulled from SWH/SUI button in the Payroll Profile. For several states Jonas also provides ability to submit quarterly SUTA information electronically. Choose the state in the dropdown list for which tax report and chose File, then choose the state and answer any prompts that may come up. Once file is saved, you can transmit it to the state.

17. 941 Report • The 941 report shows federal and FICA wages along with corresponding taxes deducted. A summary for 941B containing combined employee/employer contributions is stored by check date. New for 2013, the Excess over $7000 column has been removed and a new column has been added to show Medicare Wages in excess of $200,000. • The actual forms for the 941 report and 941B report can be filled on an online form from IRS website: • http://www.irs.gov/pub/irs-pdf/f941.pdf?portlet=3 • http://www.irs.gov/pub/irs-pdf/f941sb.pdf • For line 2 on the 941 report, use the total from the Total Wages Pre Tax column

18. 941 Report Cont’d Verify all amounts on the 941 Report each QTR Line 2 Should Equal Should Equal

19. Retiring Allowances (CDN) Recommended to process as non taxable earnings. Setup a Non Tax Earning code for both Eligible and Non–Eligible amounts Process under Manual Cheque program. Enter in amount under the non taxable earning that was setup and then enter in federal tax amount under Deductions.

20. Retiring Allowances (cont’d) To have amounts show on T4, click on Other Boxes and enter in 66 for Eligible and 67 for Non Eligible with the respective non tax earning codes that you setup.

21. Additional New Features U.S. (12.3) – Time and Attendance – if plan permits negative hours, a flag has been added to check for negative hours and a report will print when running Batch Accrual process if anyone has negative balance (12.3) – Regular, overtime and double time hours can now be entered on a 2nd check (flag in Special Payroll Options to “allow ROD hours on a 2nd check” and the hours must be entered under Time Entry ROD entry screen . To edit these hours you must go back into the same entry screen as opposed to using EDIT ROD time. (12.3) – Report Generator – code has been added (XLDP) that shows last date paid for employees (12.3) – New Combined Time Entry – now have option to click on Employee Calendar (from Mini Personnel) and update/view it from the entry screen (12.3) – Union Reporting – can now be run by check date (12.3) – Additional 50 other earning codes have been added (12.3) – Earning Statements – Can now flag by employee how you want their earning statement processed (email, printed, Digio) (12.3) – Cost Allocation Report – Option to print report by employee has been added

22. Additional New Features U.S. (cont’d) (12.3) – Secure button in Payroll Profile has been expanded from 4 to 18 users (12.2) - Configurable Earning Statement (GJV23UC) added (12.2) – Report Generator – code X@PT added to show Federal pre tax wage figure (12.2) – Report Generator – EE09 Social Security Number can now be masked so that only last 4 digits show (enter word ‘MASK’ in the calc row of the oolumn (12.2) – Employee Edit Log added to track changes to employee’s file

23. Additional New Features CDN (12.3) – Rates button added to Maintain Employee Record screen (12.3) – New Combined Time Entry – now have option to click on Employee Calendar (from Mini Personnel) and update/view it from the entry screen (12.3) – Edit Current ROD time has been expanded so that H04-H06 hours can also be edited here (12.3) – When entering H04 and H06 hours through Misc Other Hours entry screen, option will now come up if you want to pay these hours at a different factor (12.3) – Historical Cost Allocation – can now enter the P/E date as opposed to having to wait for list to populate with all the periods. (12.3) – Union report and Report Gen reports can now be run by cheque date (12.3) – Print T4 – Selected Employee option has been added to the Print T4 screen so you can select employees by their code (12.2) – Report Generator – Can now pull in time record details (12.2) – Layoffs – can now set to do Optional vacation pay release (12.2) – Configurable Earning Statement Design Added – GJW23UC

24. Thank-you for Attending! Presenter – Mike LasanowskiPayroll Specialistmike.lasanowski@jonassoftware.com 2013 Customer Conference