What This Process Does

Provides guidance on how to apply forfeiture funds to credit towards employer paid VRS Deductions.

PAYROLL:

Payroll processing will remain the same.  Employer deductions should process in the payroll as usual.


VENDOR WITHHOLDING:

  • When adding Vendor Withholding vouchers for the employer Hybrid deductions, select the employer paid deduction(s) and reduce the amount paid by the amount that will be used from the forfeiture account to fund.  For example, if one of the deduction totals is $500.00 and the forfeiture amount available to use is $400.00, then reduce the amount to $100.00.  

  • Process Vendor Withholding vouchers to completion.  By reducing the amount on the vouchers, this will leave a credit amount on the Trial balance in the liability account (Employer’s Share of Employee Benefits which normally account 462) for the amount unpaid

  • The amount  unpaid will be left in the Deduction Description Account and will need to be removed.  Access the Deduction Account by going to Payroll - Setup - Deductions - Deduction Accounts and locate any Deduction Descriptions in which the amounts were left as a result of reducing Vendor Withholding Vouchers and delete the Amount Withheld field amount and Save at the bottom


FINANCIAL MANAGEMENT:

  • Go to Add Journal Entries on the left task menu

  • Journal ID will be a Corrections journal entry for the appropriate Fiscal Year and Fiscal Month

  • Account Type will be Expenditures and Journal Entry Type is Normal

  • Account code will be the expense account for the employer Hybrid Deduction expense (if this was for one employee, the employee’s payroll expense for the employer deduction account would be used, but would need to decide if multiple journal entries will be entered or if one account will be used for the entire amount)

  • Debit and Credit codes will be automatically populated, but the credit code should be changed to the liability account for the employer Deduction such as 01-462 Employer’s Share of Employee Benefits

  • The Amount will be a negative amount which is the amount that was removed from the balance in the Deduction Accounts as a result of the forfeiture fund  amount used to fund the deduction amounts. In the example described above, that would be $400.  Enter the amount followed by the negative (-) sign.

  • Save the journal entry and process the journal entry to completion.

  • The results of the journal entry on the Trial Balance will be a reduction in the debit amount for Expenditures and zeroing out the amount unpaid from vendor withholding on the credit side for account 462 Employer’s Share of Employee Benefits