Human Resources Benefits and Deductions

This Distribution Entry screen displays if Distribution Code H was selected on the Distribution Master Selection screen.

H/R Benefits and Deductions Entry screen

Description

Enter a Description for this Benefit/Deduction.

Account Numbers

Liability

Enter the Liability (credit) G/L Account Number to which this Benefit/Deduction should be posted, or click the prompt to select from a list. This is a required entry.

Expense

Enter the Employer Expense (debit) G/L Account Number to which this Benefit/Deduction should be posted, or click the prompt to select from a list. This is a required entry, however it will only be used for Benefits.

Exempt Withholding Tax Codes

The Benefit Master includes a Taxable option and that setting determines the benefits exempt status. When a benefit records Taxable option is selected in the Benefit Master, the exempt status of that benefit will be determined by the selections made in this section. It is not necessary to complete this section if the Taxable option for this benefit has not been selected on its Benefit Master record.

Click the prompts for the following Deductions and, from the drop-down list, select the option that indicates their exempt status.

If the options Varies by State or Varies by Local are selected, clicking OK will display screens on which to select the States or Locals that are exempt. The State Exempt Selection screen, and the Local Exempt Selection screen.

Other Exempt Withholding Codes

In addition to the statutory exemptions listed above, other exemptions can be specified that would not be subject to the basis upon which a garnishment should be applied.

Condition of Employment Deduction

These are deductions imposed by an employer as a condition of employment. An example might be Union dues, if membership in a Union was mandatory.

Select this option if deductions are imposed that constitute conditions of employment.

Health Insurance Deduction

Select this option if deductions are taken for the purpose of Health Insurance.

Other 1/Other 2

Select these options if deductions are imposed that should not be subject to the basis upon which a garnishment should be applied.

Railroad Employee Withholding

The following options are used to process railroad employee withholding for Railroad Tier 1, Tier 2 and Unemployment Insurance tax. The Employee Master must first be used to designate that an Employee will be subject to these tax categories.

• RR T1 FICA SS

• RR T1 FICA MC

• RR T2 Pension

• UI

Accounts Payable

Vendor Number

Enter a valid Vendor Number or click the prompt to select from a list. If the Vendor Master record is in a different Company/Division than the Distribution record, make the Company/Division selections (below) prior to selecting this Vendor Number.

The lookup table available from the Vendor Location prompt also lists the Vendor Number associated with each location, so both the Vendor Number and Vendor Location selections can be made using that prompt.

Vendor Location

A Vendor Location is a remittal address, for Vendor payables, that is set up in the Vendor Master file.

Enter a current Vendor Location, or click the prompt to select from a list. The Vendor Number associated with this selection will auto-fill the Vendor Number field.

If the Vendor Master record is in a different Company/Division than the Distribution record, make the Company/Division selections (below) prior to selecting the Vendor Number and Vendor Location.

Company/Division Number

Accept the Company/Division used at login or, if the Vendor Master record is in a different Company/Division, click the Division Number prompt to make new selections from a list. The Company/Division Numbers are used for Inter-company transactions at the detail level.

The Vendor and Company/Division entries will allow a deduction, or benefit, to automatically build an open Accounts Payable transaction.

The following processing occurs during Payroll Update

1. 1. These transactions will update the Accounts Payable batch file with a batch number of 88888.

   2. The Liability Account will be used to post the tax liability during Payroll Update. When the batch entries are updated in Accounts Payable, a debit entry will be posted to this account and a credit entry will be posted to the Accounts Payable control account.

   3. All of the transactions will be summarized according to Vendor Number/G/L Account Numbers to create one invoice per Vendor.

The invoices will be created during Payroll Update if the Vendor Number is currently set up and is non-zero. The Vendor Number cannot be added to the Vendor Master during this procedure.

Separate Invoice

Select this option to create separate invoices in payroll at the employee level, and print the garnishment descriptions on check stubs. This can prove useful for Vendors who have employees enrolled in garnishment deductions. For information about creating separate invoices at the employee level, see Separate Invoices for Employees Enrolled in Deductions.

Clear this option to not have separate invoices created at the employee level.

Arrears Deduction

Select this option to flag the deduction as an Arrears Deduction, thereby making it eligible for the arrears calculation.

Auto Create

Select this option to create the Arrears Deductions automatically.

For the arrears record to be created:

1. • The employee must not have been terminated.

   • The employee must not have worked for at least one pay period

   • The Auto Create Arrears Deds Payroll default (on the Update Screen) must be set to Y. Selecting the Auto Create option, with the Auto Create Arrears Deds default set to N, will generate an error when you click OK.

Update Job Cost

Select this option to charge not only an Employees time to a job, but this Benefit/Deduction as well.

Zero To-Date Amount

Select this option to cause the To-Date amounts to be set to zero when selected during the preparation of the year end files for W2s. See the Annual Processing documentation for details.

Include in Benefit/Wage Calculation

Select this option to have this Benefit included when calculating the Actual Wage Rate paid to an employee. This is used for Certified Jobs, when the Prevailing Wage is compared to an employee's Rate Plus benefits.

Exclude from Garnishment Calc

Select this option to exclude this benefit/deduction from subsequent garnishment calculations.

Do Not Use Department Sub-Account

The G/L Sub Account, listed in the Department Master, is used by the system as an H record’s Expense sub-account if the Human Resources Benefit account number field is blank. This field is used to override the use of that sub-account.

	Click to process these entries. New Records: The Check Type Selection screen displays automatically and is used to select the Check Types applicable to this Benefit/Deduction. When finished, click OK to screens for each of the Exempt Withholding Tax Codes as described above. Existing Records: Screens will display consecutively for each of the Exempt Withholding Tax Codes that were set to Varies by State or Varies by Local (see, State Exempt Selection screen or the Local Exempt Selection screen). These screens are used to select the States and Locals that should be classified as exempt. When finished, click OK to return to the Distribution Master Selection screen.
	Click to return to the Main Menu without saving changes.
	Click to display the Check Type Selection screen, which is used to select the Check Types that apply to this Benefit/Deduction.
	Click to return to the Distribution Master Selection screen without saving changes.

  Check Type Selection screen

Select

Select all applicable Check Types

	Click to process these entries. If you marked any Exempt Withholding Taxes as variable (Varies by State or Local), those screens will open in succession. Otherwise, you will return to the H/R Benefits & Deductions Entry screen.
	Click to return to the H/R Benefits & Deductions Entry screen without saving changes.

State Exempt Selection screen

 Select

Select the States to be exempt from taxation.

	Click to process these entries. If other Exempt Withholding Taxes were marked as variable (Varies by State SDI or Local), those screens will open in succession. Otherwise, you will return to the H/R Benefits & Deductions Entry screen.
	Click to return to the H/R Benefits & Deductions Entry screen without saving changes.

Local Exempt Selection screen

A Local is any taxing entity below the State level. Examples would include not only Counties and Cities, but also Transit Districts.

Select

Click the prompt for the Locals that should be classified as exempt from taxation. From the drop-down list, select who should be exempt:

• Employee

• Employer

• Both

	Click to process these entries and return to the H/R Benefits & Deductions Entry screen.
	Click to return to the H/R Benefits & Deductions Entry screen without saving changes.