Flexgen Payroll Deduction Maintenance
description
Transcript of Flexgen Payroll Deduction Maintenance
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Flexgen Payroll Deduction
Maintenance
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Highlights
• Set up Payroll Deduction Controls
• Employer Sponsored Health Care Reporting
• Employer Matching and the Calculations
• Deduction General Ledger Entries
• Deduction Premium Changes
• W2 Reporting
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• Gather insurance rate information for each insurance option that is available to your employees.
Consider the following:
• How many times a year do you take the deduction for payroll?
• Does the county/city pay any portion of dental insurance or vision insurance?
• What GL liability account number do you use for each insurance?
• Do you offer sheltered and non-sheltered options?
Things to do before setting up deductions
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Setting up Payroll Deduction Codes• Reports, Control, Control A-J, Deduction Code Summary
Print the Deduction Code Summary Report before making any changes
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Setting up Payroll Deduction CodesWithin the Payroll Menu Choose:-Other-Control
Within the Control Menu Choose:-Control A-L-Deduction Code
Next, we will review each field within the Payroll Deduction Screen. Note: Look Up (F2) and Help (F1) is available for each field
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Deduction Code
The Deduction Code number is user defined. Assign a number not previously used
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Deduction Code Description
Description should be detailed enough to distinguish each deduction from another
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Deduction Code Screen Description
This abbreviated description is printed on the check stub, therefore should be meaningful to the employees
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Deduction Code Classification
Select the Classification for this deduction. Health Insurance is generally a Regular Voluntary Deduction
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Deduction Code Function
Enter the liability account used in posting to the GL when this deduction is taken
An “X” in CC or SOb attaches the employee’s cost center or sub object to the liability account
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Deduction Code Grouping
Deductions can be grouped together on the insurance report
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Deduction Code - Sheltered From
The Sheltered From indicators tell the system whether to calculate taxes before or after this deduction is takenSheltered From Yes means to subtract this deduction before calculating taxesSheltered From No means do not subtract this deduction before calculating taxes
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Standard Non-sheltered Deduction
Cafeteria Plan
Sheltered Deduction
Deduction Code - Sheltered From
A little FYI…“Cafeteria plan” is named such because it is similar to a cafeteria where individuals select their food of choice, employees may choose benefits of their choice.
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Primary elements of cafeteria plan deductionsClassification of Regular Vol Ded is chosen
Sheltered From indicators are normally YES (except TCRS retirement)
W2 Cafeteria Plan indicator is YES
Employee amount of cafeteria plan will be recorded as DDNTB in box 14 of the W2
Deduction Code – Cafeteria Plan
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Two Amount Types
01 - Flat Amount
02 - Percentage
Deduction Code - Amount Type & Default Flat Amount
This is the amount PER PAY PERIODIf the deducted amount is the same for everyone, a default flat amount may be enteredLeave Blank if amount varies per employee
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Deduction Code – Employer Sponsored Reporting
Code 34 DD in Form W-2 Box 12 is not necessary to report employer portion but is ok if you do fill it in as such
Set the Emplyr Sponsored Health Ins flag to 01 YES to report in Box 12 of the W2 as code DD (default is NO)
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Amount to be deducted(per pay period)
Total Premium(per pay period)
Employer Exp(per pay period)
Obj Code used for employer expenditure
Deduction Code Control – For Employer Matching
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Deduction Code Control Screen
Your final screen will look something like this. Repeat for each and every insurance option
Check with your plan provider for the correct setting on the fields: (Dependent Care; Section 457; Nonsection 457; Qualified)
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Once the deduction codes are set up, you will add the deduction code to the employee deduction screen
Employee Deduction Screen
•Payroll Master
•PayInf (F9)
•Deduction
•Add (F5)
•LookUp (F2). Page Up or Down to find deduction to be linked to this employee
•Deduction Scroll is also a good way to add deductions
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Consider this…If you take the steps mentioned above, your system will accumulate reporting amounts.
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The system subtracts the deducted amount from the total premium amount to determine how much should be posted to the GL as the employer expense, posting to the employee’s distribution Fund, Function & Obj Code (& Cost Center & SOb if used)
Automatic Employer Matching - Calculation
Amt Deducted Subtracted from
Employer Expense
Employee DeductionDeduction Control File
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If deduction is paid in full by employerSet up a default flat amount to zero in order to calculate the employer’s expense
Automatic Employer Matching – Employer pays Total Premium
Subtracted from
Employer Expense
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Automatic Employer Matching - Correction
Subtracted from
Employer Share
Don’t just double the deduction amount to “catch up” a deduction
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Automatic Employer Matching - Correction
Add the Deduction Twice to the employee
That way the matching calculation is done twice
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GL Entries – NOT using Employer matching
Note: When NOT using automatic employer matching, the payroll system only generates posting for the employee’s portion of health insurance.
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GL Entries – using Employer matching
Note: When using automatic employer matching, the payroll system allows posting for the employee, as well as, the employer portion of health insurance to the liability account. Also the employer expense account is automatically debited.
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WHEN WRITING CHECKSNo Expenditure accounts are used on
checks to the insurance company, ONLY Debit Liability accounts once Automatic Matching is implemented
GL Entries – using Employer matching
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Deduction Premium ChangesReports, Control, Control A-J, Deduction Code Summary
Print the Deduction Code Summary Report before making any changes
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Deduction Premium ChangesReports, Payroll, Emps/Itm A-L, Deduction Code
Print the Employees Per Deduction Report before making any changes
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From this
If amount is deducted twice a month, the amounts would be half
To this
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Once change is made to deduction control, it does not automatically update employee deduction amount
Likewise, you cannot simply change employee’s flat amount without changing the deduction control
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Reprint Deduction Code Summary Report to confirm changes made to Deduction Control
Deduction Premium Changes
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Various Ways to Change Employee Deduction Amounts
• Deduction Maintenance through Payroll Master
• Deduction Scroll
• Auto Update
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Deduction ScrollOther, Deduction Scroll
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Deduction ScrollOther, Deduction Scroll
From this
To this
Update (F4) scrolls to next person with that deduction
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Deduction ScrollOther, Deduction Scroll
If chose All Employees or Only Employees Without Deduction
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Auto UpdateOther, Update, Auto Update, Deduction Amount/Percent
Defaulted in from deduction control
Enter in the amount to match the control
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Deduction Premium ChangesReports, Payroll, Emps/Itm A-L, Deduction Code
RE-Print Employees Per Deduction Report to confirm changes
Before
After
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• W-2 Report shows the employee ($575.38) plus employer portion ($643.76) coded with DD and will be shown in box 12 of the W-2
W-2 Reporting
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W-2 Reporting• W-2 shows the employee ($575.38) plus employer portion
($643.76) coded with DD in box 12 of the W-2• The employee portion is coded with DDNTB in Box 14 if
marked Caf Plan
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W-2 Reporting – Build Health Coverage File
• Build Health Coverage File – These options are only required if you have not had the deduction code control set up for employer contribution for the entire calendar year for the Employer-Sponsored health insurance and/or need to make changes to the deduction amount.
• Build by Calendar Year and selected
deduction codes. Deduction(s) must have “Emplyr Sponsored Health Ins” flag set to “Yes” on the deduction control.
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W-2 Reporting – Build Health Coverage File
The amount in the Corrected Health Coverage field should be the total employEE plus employER. In this example, the employER portion is increased by $100
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Any Questions?
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This concludes our session on Flexgen Payroll Deduction Maintenance
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