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Check preparation phases |
  
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Check preparation phases |
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The following are the steps the system takes in order to prepare the Payroll checks:
Select Employees
The system selects Employees for processing based on these criteria:
| • | The Employee matches your request... If Hourly was requested then Salary Employees are ignored. If Salary was requested then Hourly Employees are ignored. If Hourly and Salary was requested then all Employees are considered. |
| • | If Selected was requested then only Employees in your Employee List are considered. |
| • | Employees whose LastPayDate is on or after the Check Date you specified are ignored. |
| • | Employees whose StartDate is after the Check Date you specified are ignored. |
| • | Employees whose StopDate is before the Check Date you specified are ignored. |
Each selected Employee is then processed further as described below. When all selected Employees have been processed the system continues to the next phase.
Calculate Gross Pay and Taxable Earnings
A Salary Employee has the Salary for this pay period calculated as well as any Other Earnings and Benefits applicable to this Pay Cycle.
An Hourly Employee whose MinimumHours is 0 and who has no Hours entries on or before the HoursCutoffDate is ignored. The system skips further processing of that Employee and resumes selection of the next eligible Employee.
An Hourly Employee whose MinimumHours is greater than 0 but who has no Hours entries on or before the HoursCutoffDate has the Earnings for those MinimumHours at Rate1 calculated. Any Other Earnings and Benefits applicable to this Pay Cycle are also calculated.
An Hourly Employee with eligible Hours entries has their Earnings summarized by RateCode and any Other Earnings and Benefits applicable to this Pay Cycle are determined.
Calculate Deductions
Regular Deductions are calculated as well as any Other Deductions applicable to this Pay Cycle.
Automatic advances processing
Automatic advances processing is an option you can enable or disable for each installed Company.
When you enable it, the system will issue an automatic advance to an Employee whenever their Total Deductions exceed their Total Earnings in a Pay Period. That automatic advance is just enough to bring their Net Pay to 0 and enable those Deductions to be taken. In subsequent Pay Periods, any automatic advances previously issued this year are automatically recaptured as quickly as possible.
Enabling or disabling automatic advances processing for a Company is done using the Maintenance | Payroll Setup task.
When you first install a Company, automatic advances processing is disabled and the AutoAdvance field is not checked. To enable automatic advances processing, check the AutoAdvance field. If you subsequently wish to disable automatic advances processing then uncheck the AutoAdvance field.
When automatic advances processing is enabled, automatic advances recovery applies only to automatic advances issued in the current Year. If any unrecovered automatic advances exist once that Year is over then they must be recovered manually.
Recover automatic advances
If the total of automatic advances issued this year is less than the total of automatic advances recovered this year and the currently calculated Gross Pay exceeds the currently calculated Total Deductions then deduct the maximum possible as a recovery against those automatic advances.
Checking for any unrecovered automatic advances for this year is always performed regardless of the current setting for AutoAdvance. This ensures that the system will always attempt to recover any previously issued advances even if you have subsequently disabled automatic advances processing.
When Gross Pay exceeds Total Deductions
When the Gross Pay exceeds the Total Deductions this processing phase is finished for this Employee and the system resumes selecting the next eligible Employee.
When Gross Pay is less than Total Deductions
If the Gross Pay is less than the Total Deductions for an Employee the consequences depend on whether or not automatic advances processing is enabled for this Company.
If automatic advances processing is not enabled for this Company then there is no further processing of this Employee. They are paid nothing and nothing is deducted. For an Hourly Employee any entries in the Payroll Entry table will simply remain there. The system resumes selecting the next eligible Employee. In these circumstances, you must make manual adjustments to increase some Other Earnings category or reduce or eliminate some Other Deduction category to enable Gross Pay to equal or exceed Total Deductions and then do another Payroll Preview or Processing run to process that Employee.
If automatic advances processing is enabled for this Company, then an automatic advance is issued to bring the Gross Pay up to the Total Deductions (i.e. a Net Pay of 0.00). The system resumes selecting the next eligible Employee.