What is the PAYTBL file?

This file contains control items used throughout the P/R module. The following control records reside within this file:

• Deduction Types - These items are two digit (alpha/numeric) codes used by the P/R module to make deductions from an employee's payroll check. However, several deductions are treated differently by the Gov't for tax purposes. If field# 2 of the deduction record has no value (or a 0 value) then the deduction type has no effect on tax calculations. This is generally used when an employee has health insurance they pay for. If field# 2 has a value of '1' in it then the payroll system will reduce the taxable GROSS pay for Federal Income tax calculations by the deduction amount. There will be no reduction of taxable GROSS pay for other types of Tax withholding calculations. This is typical for pension contributions. If field# 2 has a value of '2' in it then the payroll system will reduce the taxable amount for ALL tax calculations (including workers compensation). This is typical for cafeteria plans.
• PT*{xxx} - These items are the PayTypes used for wages. The system will come with the following types:

ADV - used for Advances.    
BON - used for Bonuses.  This is not regular pay.
COM - used for Commissions.  This is not regular pay.
DAC - used for Daycare benefits.  Paid direct by employer.
EDU - used for Education.  This is regular pay.
HOL - used for Holidays.  This is regular pay.
OT1 - used for Overtime (@ time and a half).
OT2 - used for Overtime (@ double time).
RCR - used for Rent and/or Meals.
REG - used for Regular pay.
SIC - used as Sick pay.
TIP - used for Tips.
VAC - used for Vacation Pay.
MOV - used for Moving Expenses.  Paid direct by employer.

RCR, MOV, and TIP are Non-Cash paytypes. Workers Comp. is calculated on RCR for employer billings while Federal Tax will be withheld on TIP wages for employees only. Wages are assigned one of these paytypes because it is necessary to allocate the breakdown of different types of earnings to employees and to know how each type of wage effects taxes and earnings calculations. It is also necessary to determine if tracking the number of hours worked by an employee is required.

How are the G/L records created?

The posting process, which eventually creates G/L posting records, is done throughout the month. The following postings are made to the payroll account, and to the other sets of Clients, unless otherwise noted.

1. Payroll calculates and pays employee earnings (Client #9800).

account....       amount....  dr/cr   account....  amount....  dr/cr
Accts Paybl       EE Net       dr     Cash         EE Net       cr
A/P Taxes         EE Taxes     dr     Accts Paybl  EE Net       dr
A/P Benefits      EE Deds      dr
a/P WageExp       EE Gross     dr
                  EE Advs      cr

2. Payroll bills back each Client (Client #9800).

account....       amount....  dr/cr   account....  amount....  dr/cr
A/R or TaxExp     ER Taxes     dr     Client.A/P   EE Adv       dr
                  ER Wcomp     dr                  ER Gross     cr
                  EE Gross     dr                  ER Taxes     cr
                  EE Gross     cr                  ER Wcomp     cr
                  EE Advs      dr     Client.Wages EE Gross     dr
                  EE Advs      cr     Client.Taxes ER Taxes     dr
A/P Taxes         ER Taxes     cr                  ER Wcomp     dr
A/P WComp         EE Wcomp     cr     Client.A/R   EE Adv       cr

3. Set's of Clients reimburse payroll account.

account....       amount....  dr/cr
Client.Cash       EE Gross     cr
                  ER Taxes     cr
                  ER Wcomp     cr
Client.A/P        EE Gross     dr
                  ER Taxes     dr
                  ER Wcomp     dr

4. Payroll account receives reimbursement (Client# 9800).

account....       amount....  dr/cr
Cash              EE Gross     dr
                  ER Taxes     dr
                  ER Wcomp     dr
Accts Recvbl      EE Gross     cr
                  ER Taxes     cr
                  ER Wcomp     cr

5. Payroll pays all withheld amounts (Client# 9800).

account....       amount....  dr/cr
Cash              EE Taxes     cr
                  ER Deds      cr
                  ER Taxes     cr
                  ER Wcomp     cr
A/P.Taxes         EE Taxes     dr
                  ER Taxes     dr
A/P.WComp         ER Wcomp     dr
A/P.Benefits      EE Deds      dr

How is Workers Compensation calculated?

If no Workers compensation rate is in an employee record then no amount will be charged the employer. This rate is calculated by a custom API for each state. The API is called 'PAYWCOMP_{St}', where {St} is defined as the two digit state abbreviation code assigned by the US Postal Service. If this API does not exist the default Workers Compensation rates will be used.