Session 4-1 Sage 100 Contractor Advanced Payroll©2017, Construction Rev. 10/01/17 Session 4-1 Sage 100 Contractor: Advanced Payroll -1 Business Services, Inc. Session 4-1 Thursday,

©2017, Construction Rev. 10/01/17 Session 4-1 Sage 100 Contractor: Advanced Payroll - 1 Business Services, Inc.

Session 4-1

Thursday, October 12 8:30am – 10:00am Room 619

Session 4-1

Sage 100 Contractor Advanced Payroll

Presented By: Kathy Gotzenberg

Construction Business Services, Inc. [email protected]

Credits/Revision History

• Original Author(s): Kathy Gotzenberg • Revised Date: 10-01-2017 • Major Revisions Include:

o o o


PAYROLL REPORTS Federal & State Tax Reports vs. YTD/QTD Earnings vs. Payroll Check Register

• Understand the difference in numbers on various reports


Workers Comp Report

• Have a State-specific format not listed? Let Sage know!

Certified Payroll Reports • 5-1-6 Certified Payroll Report – Original reports contained in Sage 100 Contractor • 5-1-11 Certified Payroll Forms – Federal and State specific forms provided by Aatrix

Union Reports • 5-1-7-21 & 26 – Compiles information from payroll calculations that include default rates – NOT

Paygroups • 5-1-7-31 & 36 – Compiles information from Paygroup Benefits

Employee Documents • NOT just for mailing labels! • Learn how to use Form Design to create unlimited employee-related documents and

correspondence

PAYROLL PROCESSING Employees

• Accrued Sick and Vacation – Manu 5-2-1/Compensation Tab o New Accrual Maximum and Last Year Carry Forward fields o You don’t have to use an accrual method; manually enter value on eligibility dates


o New visual prompt at Payroll Records Menu 5-2-2 of remaining vacation

• Employee Licenses for Miscellaneous Info

• Employee Training for Date Sensitive Items


o Existing System Sample Alert Queries at Menu 7-6 Alerts Manager that can be Imported to

provide notifications

Payroll Records

• Job Costing Salaried Employee o To job cost ENTIRE salary:

Program will job cost the entire salary proportionally by the number of hours for each job


o To job cost only a PORTION of salary:

Be sure to enter a line with NO job for the remaining hours that are not job costed (assume typical work week)

Program will only job cost timecards lines that have a job

• Grossing Up Bonus Payroll to Cover Taxes o Basic Formula: Net amount + flat tax amounts / (100% - total percent of taxes) = Gross

Assume desired net pay amount = $200, and withhold FICA/Medicare and $100 FIT 1. Total the tax percentages: FICA 6.2% = Medicare 1.45% = 7.65% 2. Subtract the total from 100%: 100-7.75 92.35 3. Convert that number to a % (move decimal 2 positions to the left): 0.9235 4. Add $100 for FIT to the desired net: $100 + $200 = $300 5. Divide new net amount by the amount in step 3: $300 / .9235 = $324.85

o 5-2-2 Payroll Records, Payroll Type Bonus, Salary Amount = $324.85 • Trial Compute & recall record; enter $100 in FIT and -0- out any Deduct from

Employee amounts –enter YES in Override column • Final Compute


• Correcting Job Costs o Using 1-3 Journal Transactions

• Determine cost from 5-2-2 Payroll Record/Costs


• Enter 1-3 Journal Transaction (no need for amount in grid)

o Correcting in Future payroll • Enter negative hours to incorrect job (must be first line of grid); positive hours

to correct job • Can’t use this method if time is reported on Certified Payroll


o Adjustments in 6-3 Job Costs

• Enter 2 separate records

• Lessen the chances of incorrect job costing o Activate Budget Verification o New in Version 20.5! Ability to filter Cost Codes by Job


Compute Payroll

• Trial vs. Final Compute o Trial Compute allows you to review records for accuracy, determine amounts on variable

calculations, and Override computed amounts • Tip for Overriding Calculations: Have Company Administrator set field

properties on Override column to Yes • If payroll record needs to be voided, program can automatically reverse

posted record from General Ledger o Final Compute posts job costs and increases employee’s YTD/QTD info If payroll record needs to be voided, separate Payroll Posting must be done to reverse

from General Ledger

Payroll Checks

• Reprint a Posted Payroll Check – Payroll Checks 5-2-4 o NEW in Version 20.6!

• Direct Deposit o Suggest unique numbering scheme


Post Payroll to GL

• New in V20.6 – Warning if posting period does not match check date or payroll period ending date • Posted to wrong period – no problem w/V20.5!

• Posting in Detail o Creates a journal transaction for each payroll calculation on each payroll record o 5-2-2 Payroll Records – Voids can automatically be reversed from general ledger

• Posting in Summary o Creates a separate journal transaction for net amount of each payroll check, and creates a

journal transaction with a summary of the payroll costs o Copies of Payroll Posting logs are automatically saved as a text document in

\Sage100Con\Company\Sample Company\Files Payroll Posting XX_XX_XXXX log) o 5-2-2 Payroll Records – Voided records must be re-posted to general ledger

• Posting Payroll Expenses to WIP Asset Account o Designated at Menu 3-5 Jobs (checkbox at bottom left) o Overrides direct payroll costs to WIP asset


• Posting Direct Deposit Payroll

o Posting to regular payroll account creates multiple lines on bank reconciliation o Consider posting to a clearing account in cash account range; then journalizing full amount

of direct deposit to main payroll account

• Working with a Payroll Service

o Get the best of both worlds – See Pulse Article in the September, 2014 edition https://tugweb.site-ym.com/global_engine/download.asp?fileid=12D5D595-06D8-

4155-B345-D94610600634

PAYROLL MANAGEMENT Payroll Calculations

• Creating Payroll Burdens

https://tugweb.site-ym.com/global_engine/download.asp?fileid=12D5D595-06D8-4155-B345-D94610600634

https://tugweb.site-ym.com/global_engine/download.asp?fileid=12D5D595-06D8-4155-B345-D94610600634


• Adding a Taxable Cash Benefit to Employee Wages and Having it Show on W2

o Examples: Vehicle cash reimbursement or an insurance premium Calculation Method – Per Pay Period or Variable?

• Paying “Allowances” through Payroll (Cell Phone, Vehicle, etc.) o Understand “Accountable” vs. “Non-Accountable” IRS rules o Suggest allowances be paid through Accounts Payable


• Calculation to Display Owner’s Health Insurance on W2

o IRS requires health insurance for owners/officers of a company be reported in Box 1 and Box 14 of W2

o Subject to - selections may vary by State; however, for the calculation to impact Box 1 of the W2, Subject to Federal Income Tax MUST be checked

o Credit Account – if you have multiple employees that you want to track amounts in same expense account, multiple calculations would need to be created (i.e., one for Overhead, one for Admin)

• Health Insurance Calculation o What if someone doesn’t work every week? Consider changing Max Type

• New Calculation Method 19 – Per Hour (Worked Hours)


WORKERS COMPENSATION

• Owner-Controlled Insurance Program (OCIP) • Owner-Exempt – Check with insurance carrier • General Liability Insurance • Experience Modification Factor

PAYGROUPS

• Used for union shops and open shops working on Davis-Bacon projects • Suggest organizing paygroups by Union, job, or geographical area for quick identification • Job Specific Paygroups – Menu 3-5 Jobs

o Helpful if a company works on a large amount of prevailing wage projects with various paygroup wages/rates


o When time is entered in timecard for a PW project that has job-specific paygroups

assigned, system compares the employee’s position number from employee record with the position number assigned to the job paygroup and inserts the paygroup automatically

o Can be challenging if an employee works different paygroups


• Changing Union Rates/Benefits

o 5-3-4 Paygroups “Yes” in Override will force program to look to paygroups and benefit packages to

compute payroll When union rates/benefits are updated in this screen, all union employees can be

automatically updated at 5-2-1 Employees


• Taking Offset Credits for Allowable Fringe Benefits on Prevailing-Wage Jobs

o Contractors can take credit for contributions paid for benefits such as medical insurance, retirement plan contributions, etc.

o Allowable credit is determined by monthly contribution rate divided by 173 hours (average straight time hours per month); credit typically not eligible for overtime hours Medical Insurance Example: $320.05 / 173 = $1.85 per hour credit

o Create 5-3-1 Payroll Calculation for Prevailing Wage benefit(s) o Set up 5-3-4 Paygroups and assign Benefit(s) per Wage Rate Schedule for Project o Enter Offset in 5-2-1 Employee Calculations tab



Payroll Audit

• Should be run after each payroll to pinpoint irregularities that could impact various payroll reports o Uncomputed or Unposted payroll records, including records with “Reverse” status o Check dates that do not fall with the correct payroll quarter o Incorrectly computed Social Security or Medicare taxes

HR Forms • Provided by/maintained by Aatrix and part of your Sage 100 Contractor software • Over 90 standard forms that can be printed on demand • Maintains history of forms issued to employees


FEDERAL AND STATE TAX FILING • Updated by Aatrix on regular basis • Perform a cost analysis of benefits of Aatrix efiling service vs. manual report

preparation/submittals and tax deposits