RDA Systems Inc

What This Process Does

• Allows gross to be copied from a previous Pay ID to a new Pay ID in order to compute differences in deduction amounts or percentages.
• Differences are added to the Correcting Amounts field on the employee's deduction.
• This process is normally used when changes to deductions have been made after the effective date, and employees are due adjustments.
• An example of when this process would be used is for a tax rate change, such as FICA, after payrolls were run with the old rate in place.

Requirements

• Correct Deduction Description amount/percentage BEFORE running Compute Payroll, so the Correcting Amounts processed can compute the differences.
• If the deduction has a Calendar Withholding Limit, as the Unemployment deduction does, you will need to undo Update Payroll History for the original payroll that is being copied in order for the Compute to look at the gross as of the original payroll, as opposed to as of the time the correcting payroll is being run; once the Compute is completed, run the Update Payroll History for the original Pay ID.
• A new, unique Pay ID should be created for the Correcting Amounts process.
• Once Correcting Amounts are set, or refund checks are created, undo all processes, and delete the Pay ID.
• Correcting Amounts will need to be removed from the Correcting Amounts field after the next payroll.
  

Correcting Amounts - Pay Master / Pay ID

• HR → Payroll → Maintenance → Correcting Amounts → Pay Master / Pay ID
• Pay Master can be completed with all the same information as the original payroll that is being corrected (Pay ID, Start and End Dates, Pay Date, Calendar and Fiscal Periods), adding a C to the end of the Pay ID, and adding "Correction" to the Description.
• Pay Type should be REGULAR.
• Click Save when all information is populated on the Pay Master.

Correcting Amounts - Report of Correcting Amounts

• HR → Payroll → Maintenance → Correcting Amounts → Report of Correcting Amounts
• Run this report to verify whether any Correcting Amounts already exist for employees.
• If there are amounts that exist that need to be removed, skip to Correcting Amounts - Zero Employee Deduction Correcting Amounts to learn how to remove the Correcting Amounts.
• If amounts should remain, they will be added to the Correcting Amounts set from this process.

Correcting Amounts - Copy Gross from Pay to Pay ID

• HR → Payroll → Maintenance → Correcting Amounts → Copy Gross from Pay to Pay ID
• The new Pay Identification will mirror the same gross as the "Copy From" Pay Identification.
• Once the process is completed, the Select Completed will be marked as true for all Personnel Pay Masters to allow you to run the Compute Payroll.

• If only wanting to include one employee or a certain group of employees in the copy, range on Personnel ID, Personnel Status, or Personnel Class; otherwise, you do not need to range.
• All Select criteria at the bottom would normally be set to true to include all employees and jobs even if the employees are no longer current or jobs are no longer active since the original payroll.
• Click Select, and copy will complete; no report is provided.

Correcting Amounts - Compute Payroll

• HR → Payroll → Maintenance → Correcting Amounts → Compute Payroll
• Select the appropriate Pay ID
• Click Select
• Click the Error List tab, and verify that there are no errors; errors will generate if a negative net check has calculated for an employee (INVALID NET AMOUNT), or if an employee was selected into the payroll, and then had all their pay removed, leaving an empty Pay Master (INVALID PERSONNEL PAY MASTER)
• If errors exist, click the Print Errors button and print to your screen or printer, then undo the Compute, correct the situation, and re-Compute (refer to the link above)
• Click the Warning List tab, and verify that there are no warnings; warnings will generate if an employee has no deductions (NO DEDUCTION DESCRIPTIONS PROCESSED)
• If warnings exist, click the Print Warnings button and print to your screen or printer, then undo the Compute, correct the no-deductions situation, and re-Compute (refer to the link above)
• Once you have achieved No Errors and No Warnings on Compute Payroll, run your Deduction Registers to ensure that all employee deductions and employer benefits computed correctly (Recommend running Deduction Comparison reports as well; available to all Enterprise customers, or, with an add-on Bundle)

Correcting Amounts - Deduction Comparison

• HR → Payroll → Maintenance → Correcting Amounts → Deduction Comparison
• Compares deduction changes from the original payroll to the copied payroll with the new amount/rate.
• Range on Deduction Description ID.
• Leave all Select criteria at the bottom of the screen marked as true.
• Click on Select once fields are completed.
• The Difference column will show the amount that will be placed in the Correcting Amounts field on the employee deduction or be refunded.
• If the difference amount is negative, the employee is due a refund; if the difference is positive, the employee owes that amount

**PLEASE NOTE: If running multiple correcting payrolls to accumulate one Correcting Amount, STOP here and repeat all steps beginning at creating the Pay ID, before running the Set Employee Deduction Correcting Amounts. You should use each Deduction Comparison Report to add all amounts together to verify that the final Correcting Amount for each employee is correct.

Correcting Amounts - Set Employee Deduction Correcting Amounts

• HR → Payroll → Maintenance → Correcting Amounts → Set Employee Deduction Correcting Amounts
• Difference amounts are placed in the employee's deduction master in the Correcting Amounts field.
• Range on Deduction Description ID.
• Click on Select once all fields are completed 

**NOTE: No audit report is provided, so it's important to make sure the form is completed correctly.

• The recommendation is to refund amounts in the next payroll; however, if refund checks are desired, as opposed to adding to the Correcting Amounts field for the next payroll, then after setting Correcting Amounts, refer to the "Correcting Amounts - Refund Correcting Amounts" steps below.

Correcting Amounts - Report of Correcting Amounts

• HR → Payroll → Maintenance → Correcting Amounts → Report of Correcting Amounts
• Will display pending deduction amounts that will be added to the next payroll.
• Verify that refunds are negative amounts, and amounts owed are positive amounts.
• If correcting multiple payrolls, or if previous Correcting Amounts existed before beginning this process, all amounts totaled will be included on this report.
• Amounts included on this report have already been placed in the employee's deduction master.
• It is recommended that you save or print this report.

Correcting Amounts - Refund Correcting Amounts

• HR → Payroll → Maintenance → Correcting Amounts → Refund Correcting Amounts
• The recommendation is to refund amounts in the next payroll, especially when tax-sheltered deductions are involved; however, refund checks may be necessary for large amounts that can't wait until the next payroll, or for employees that will not receive another pay check.
• All refunds must be issued in a check using this process; direct deposit is not an option.
• If only some checks are desired, as opposed to all refund checks, the Refund Deduction process can be used (under HR → Payroll → Maintenance → Refund Deductions), and amounts must be removed from the Correcting Amounts field from the employee's deduction master.
• Amounts set to the Correcting Amounts field in the employee's deduction master will be the amount of the refund check.
• Create a new Pay ID for the Refund Check process.
• Correcting Amounts must be negative.
• Employee must have at least one active job.
• Run the Compute Audit trail and set flags.
• Run the Deduction Register and set flags.
• Continue on the regular payroll task menu beginning with Make Transactions and setting check numbers (remember, there can be no direct deposits issued with this process), and continue with the rest of the payroll steps through Post Activity.
• This process will automatically zero out the Correcting Amounts field on the employee's deduction master, so there is no need to run the Zero Employee Deduction Correcting Amounts.
• Amount of refund will be placed in the deduction accounts for Vendor Withholding to be applied as a credit to the next payment.

**PLEASE NOTE: You may receive Make Transactions errors for substitutes if their first active job was not paid in the last substitute payroll. If so, undo Make Transactions, and add a job account to that substitute job. The job account record must exist and will be used in the job (negative amount) and the deduction transactions (positive amount). Since these are refunds, there is no effect on expense, only on cash.