Payroll TroubleshootingBronwyn Betts

What We’ll Cover Today• OMG!• Determining the BEST way to Correct P/R• Data Flow• Voiding Checks• Simple Corrections• Corrections that Require Diligence• Reconciling to G/L

First – Don’t panic!Determine – WHAT is wrong

WHO it affects WHAT it affects HOW often is it happening HOW to correct (easiest not always OK)

Act – Update Manually

OMG!!!

Various Ways to Correct PR• Voiding P/R Check• Reversing Timecard• Current Adjustment• History Adjustment• General Ledger Journal Entries• Job Journal Entries• Correcting Payroll Feature

# We do NOT correct by entering Neg Hours

How Payroll AffectsOther Modules

Payroll

General Ledger

Job Costing

How G/L Entries AffectsOther Modules

Payroll

General Ledger

Job Costing

How JC Entries AffectsOther Modules

Payroll

General Ledger

Job Costing

Voiding a Check/Direct Deposit• Pay Period

• Put the Pay Period back to the dates when check was cut

• Net Adjustment• Net must be the same as

the original check – just negative

• Post Date • Should be same date as

original check or the upcoming check date

• DON’T• Don’t change the Use

Timecard History flag. Leave as “Yes”

• DON’T void checks originally cut in a prior year

• DON’T post a void into a prior quarter

• Do a General Ledger Entry on the post date of the payroll

• Determine why it happened and correct if possible

• Keep in mind that General Ledger expense accounts can be overridden by “departments” and/or cost codes

• Next P/R, check your pre-check G/L REGISTER!

Simple CorrectionsWrong General Ledger Account

• Easiest is a Payroll History Adjustment• Done when no timecards are in the system• Negative amounts corresponding to the

incorrect state/rate, positive to correct state/rate

• Must be computed correctly• Post date should be in same quarter where the

error occurred. Affecting G/L is optional.

Simple CorrectionsWrong Worker Comp State/Class/Rate

• Adjusting in the next payroll the easiest method to fix through Adjustment Genie.

• If no payroll upcoming for the employee (terminated or laid off), history adjustment can be used. However, recommend the new correcting payroll feature.

Simple CorrectionsWrong Miscellaneous Deduction (not Section 125 or 401(k) related)

• Must adjust through the Adjustment Genie.• Taxables and amount will be changed correctly.• Federal and State withholding cannot be

calculated at this point. Technically a non-issue because the taxable is correct.

Simple CorrectionsSection 125 or 401(k) Miscellaneous Deductions

• Adjusting in the next upcoming payroll the easiest method to fix through Adjustment Genie assuming the mistake happened in the same quarter.

• Determine why it happened because it may need to be corrected in a maintenance area.

• If in a different quarter, the history adjustment will need to be created through the Adjustment Genie.

Simple CorrectionsWrong Tax Authority or FUTA/SUTA

Simple CorrectionsWrong Job (not Certified P/R or Union)

G/L Journal Entry

Use G/L Journal that has a place for Job/Cost Code/Cost

Class

Date as of “Check Date”

Credit Labor G/L Acct & wrong Job and costing info

Debit Labor G/L Acct & Correct job and costing info

OR

Job Journal Entry

Enter wrong job in the header

Add a line date as of “Check Date”

Enter cost code/class used on wrong job,

negative amt & negative hours. Enter

to save

Repeat for correct job only use positive amt

& positive hours.

Post!

OR

Transfer Job Costs

Enter “Check Date” in header

Enter a line in the “Remove” and enter

positive amounts

Enter a line in the “Distribution” and

enter positive amounts

Enter to save

Post!

• Create an earn code “Retro” with a type of “Additional” (lump sum) and add in next payroll.

• If missing hours, no need to enter lump sum. Add hours on timecard and make sure pay rate is zero. Do this AFTER overtime is pre-processed

Simple CorrectionsEmployee(s) owed money or hours (Only if OK for Certified PR and Union)

• Type/handwrite a new check (note old and new number for person doing the bank rec)

• Do an A/P check for the employee as the vendor. The G/L expense is the P/R cash account. Post and print check.

• Go through the void process and post void on the original check date. Re-enter the timecard and process for single check. Confirm net check is same amount as original.

Simple CorrectionsEmployee lost check/washed it in the laundry

Corrections That

Require Diligence

• Found in P/R, Daily, Void Check area

• Feature can be used even if there are current payroll timecards in the system

• Feature can be used even if correction is in another period of time.

Payroll Correction Feature

SIMPLE ONE-TIME SET UP

• Create a Miscellaneous Deduction “CORR” or similar. Plan type must be “Other”

• P/R Control File, “Misc” tab. Must add this new Misc Deduction in the Payroll Correction field.

Payroll Correction Feature

1. Change Pay Period, choose Period (not date), and click [OK].

2. Go to “Enter Corrections.”3. Answer question, “Have checks been

distributed?” (Applies also to Dir Dep)4. Enter weekend date where correction

needs to be made.5. Enter criteria as desired. Click [OK].

Correction Flow

Payroll Correction Feature

6. Click all the appropriate payroll postings to be corrected. Click “Next Check.”

7. Options:a) Click [Delete[ if this timecard should

never have been entered.b) Click [Modify[ and make appropriate

corrections to the timecard.c) Click “New” if an additional timecard

should have been entered.

Correction FlowPayroll Correction Feature

8. Click on [Save and Continue] until all changes have been made.

9. When done, click on [Done].10.Answer “Yes” to run the compute

corrections now.11.Choose any difference (+ or -) to pay

a) By Checkb) By Emp Reg Pay Methodc) Later

Correction FlowPayroll Correction Feature

• By check will produce an actual check to be printed

• By employee’s regular method, the difference will be included/excluded in next pay.

• Later will be during a payroll at your discretion. Amount can also be controlled.

Correction FlowPayroll Correction Feature

12.The compute payroll result window will tell you how much is due from or to each employee for that particular week.

13.Print the Pre-Check Correction Register.14.Print Correct Paychecks and Deposits.

Enter the check date you want this to post (advise the next upcoming payroll week).

Correction FlowPayroll Correction Feature

a) At this point, a check will be produced for the difference (if due TO the emp)

b) Adjustments will be posted.

Correction Flow

REPEAT ENTIRE PROCESS IF CORRECTIONS SPAN MULTIPLE WEEKS

Payroll Correction Feature

• Assuming that you have completed all the corrections you need to make and they are posted, you will at some point, whether immediately or later, begin to do regular payroll. When you compute payroll, a message will pop up and tell you how much difference is due TO or FROM an employee.

• You can choose the WHOLE amount or a partial amount. It will automatically be included in the payroll!

Correction FlowPayroll Correction Feature

• All P/R goes to G/L• All P/R goes to J/C (one exception)• Not all P/R goes to Job G/L Activity Report if G/L

account set up incorrectly.

Reconciling to GL

• PR posts to GL on PR Post Date• AP posts on Trx Date• Causes payable accounts not to clear to zero. • Not a problem, just a timing issue.

Reconciling to GL

• Sometimes you may give checks to employees earlier and bank clears them too early

• Bank Rec won’t clear checks if the check date is after the Bank Ending Date

• G/L Journal Entry will fix• Date journal entry for date cleared by bank• Debit cash for check amount • Credit cash for check amount• Post

• Clear credit amount only for current month• Next month, clear check and debit amount

Reconciling Bank Account

Questions

Thank You!