Employee Card

Purpose

Integral Accounting allows you to keep track of all employees and maintain information for the payroll system. You can keep information about their addresses and phone numbers, pay type and frequency, W2 information, and information about additions and deductions from paychecks as defined by payroll items.

Usage

1. Enter an employee ID of up to 8 Characters. This field is used as a unique identifier and once created, it cannot be edited.

2. Employee Personal Information

Enter standard demographic information in this area. Employee info needs to be entered here if you want it to print on reports.

 

3. Additions/Earnings Tab

Department: Select a department to group employees into. Payroll expense and liability accounts are assignable to each department in payroll setup. e.g. All employees in the sale department group will have wages posted to the 'sales salaries expense' account you assign in the payroll setup screen.

Location: This is simply a reference field used only for grouping employees who may be in different physical locations.

Pay Type: There are 4 pay types available.

1) Salary -This selection allows you to enter an annual salary.

2) Commission -This selection allows you to pick a commission basis and enter a percent. Integral Accounting multiplies the basis amount by the commission percent to yield a commission amount due to that employee.

The "% of Profit" basis is calculated by taking the sale price minus the cost for each commissionable line item on invoices where that employee is assigned as the salesperson.

The "% of Sales" basis uses total sales of commissionable items for each invoice where that employee is assigned as the salesperson. Note: Items sold on invoices must be selected as "Commissionable" items in the Item Card setup or they will not generate a commission when sold. A ten percent rate would be entered as 10.00.

3) Salary + Commission -This selection combines an annual salary and commissions due from sales.

4) Hourly -Uses a standard method of hours worked multiplied by an hourly rate and an overtime rate to calculated pay. Overtime is determined as hours greater than the "overtime after" hours per week entered in payroll setup.

Pay Frequency - Select the time frame in which employees are normally paid. This value works in conjunction with the marital status field in the "Deductions/Taxes" tab to look up Federal income tax deductions from the

federal income tax table. Salaried employees pay is calculated by dividing the annual salary entered by the number of periods in each frequency. Frequency periods are: Monthly(12), SemiMonthly(24), Biweekly(26), and Weekly(52). Note: Hourly employees can only be weekly or biweekly pay types since the overtime parameter is based on hours per week.

 

4. Deductions/Taxes Tab

W-2 Information: These fields should contain the data from your employee W2 records.

SS# - The social security number is entered here in the standard format.

Withholding Allowances - Enter the number of allowances each employee claims on form W2.

Filing Status -Enter the filing status claimed by each employee on form W2.

Additional Amount to Withhold per Pay Period -Enter the flat dollar amount (if any) to be added to the federal income tax withholding calculated from the tax table. This amount will not be used if the "FIT" checkbox is not selected.

FIT: Check this box to have federal income taxes calculated and deducted from paychecks. Be sure the federal income tax table has been updated for the current year from the "Circular E, Employer's Tax Guide" which is available from a local IRS office. If this box is not selected, no federal taxes will be deducted for that employee.

FICA: Check this box to have FICA taxes calculated and deducted from paychecks. The FICA amount is determined by the FICA rate as a percentage of gross pay. The FICA Rate value is entered in the "Payroll Setup" screen under the "rates and amounts" tab.

Balances: These fields show current year-to-date balances. Enter beginning balances of year-to-date totals here before paying any employees. As paychecks are cut to employees, these totals will increase and

remain current automatically.

 

5. Payroll Items

Create Payroll Item Button - Selecting this button opens the Payroll Items Form. The Payroll Items Form is used to create new payroll items and set their default parameters. For more instructions on creating payroll items, select this button and see Help on the Payroll Items Form.

Payroll Items are used to handle additions and deductions to paychecks.

Items of type "Addition" will appear after they have been created, and when the "Additions/Earnings tab is selected. They are additions to income (either taxable or nontaxable). Examples of "Addition" type payroll items would be Tip income, Advanced Earned Income Credit payments to employees, or Expense Reimbursements to employees.

Items of type "Deduction" will appear after they have been created, and when the "Deductions/Taxes" tab is selected. They are deductions from income at a Pretax(Gross), Taxable(AGI), or Net Income(Net) levels. For example: A 401k payroll item would be a pretax deduction from Gross; a State or Local Tax payroll item would be a deduction from AGI which is taxable income; and deductions such as a payments to local charities or employee loan payments would be deductions from net income.

The following fields are linked to payroll items, and will only be activated for each tab when at least one payroll item of that tabs type (addition or deduction) is created:

These parameter values for any payroll item can be unique for each employee. However, these values cannot be edited unless the item is first selecting by checking the Apply box.

Apply -Selects the respective item to apply to the given employee.

Amount -A flat dollar amount to add to or subtract from each paycheck.

% -The percentage rate to be multiplied by the basis and either added to or subtracted from each paycheck.

Wage Low-Year to date gross pay must be "equal to or greater than" this amount for the payroll item to calculate and apply, even while it is selected. A value of zero leaves the item active, without a gross pay minimum level. The year to date gross number does not include the current check being calculated, since it has not posted yet.

Wage High-Year to date gross pay must "less than" this amount for the payroll item to calculate and apply, even while it is selected. A value of zero leaves the item active, without a gross pay maximum level. The year to date gross number does not include the current check being calculated, since it has not posted yet.

YTD Max-This is the maximum addition or deduction amount allowed for each payroll item per year. When the cumulative amount for a given employee reaches this level during the year, the item stops calculating additions or deductions even though it is still selected for that employee. A value of zero leaves the item active, with no max level.

Account -Enter the General Ledger account number to post payroll item debits or credits to.