You can use a percentage in a General Ledger Batch to calculate payroll oncosts, e.g. Payroll Tax. When the batch is processed, the percentage is calculated and then displayed as either a debit or a credit, depending on how the details were set up.
Step 1 - Payroll Tax Parameters
First, set up the Payroll Tax Parameters for each State. The parameters are based on the State's Revenue Office specifications. To set up go to Payroll, Maintenance, Payroll Tax. For more information see Payroll Tax.
Step 2 - General Ledger File Layout
Set up a separate General Ledger File Layout for the Payroll Tax Batch. The GL File Layout should be based on your Accounting Software specifications.
Go to General Ledger Integration, Maintenance, Batches, GL File Layout.
Click Add.
The file can include Header, Detail and Footer records.
To include fields, select the field in the Source List and use the right single arrow button to move to the Destination List. To move all fields, use the right double arrow button.
To remove fields, select the field in the Destination List and use the left single arrow button to move to the Source List. To move all fields, use the left double arrow button.
For Payroll Tax, the fields Payroll_Tax and Payroll_Tax_Category can be added to the Details rows, along with Percentage, Credit_Percent, and Debit_Percent. Total_Debit_Percent and Total_Credit_Percent can be added to Header and Footer rows.
Complete the File Detail tab.
Click OK to save.
Step 3 - Payroll Tax Batch
Create a separate batch for the Payroll Tax.
Important: Ticking Payroll Tax Only Batch on an existing, non-Payroll Tax Batch or unticking it on a Payroll Tax batch will clear the contents of the Details tab.
Go to General Ledger Integration, Maintenance, Batches, Batches.
Click Add.
Enter a Code and Description.
From the dropdown, select the General Ledger File Layout created above.
Tick Payroll Tax Only Batch.
Complete the remaining fields on the Batch File tab.
Select the Details tab.
Select Add.
Type will default to Payroll Tax and be greyed out. Select Payroll Tax.
The Description will automatically populate from the Payroll Tax selected.
Select either Debit or Credit as Post As.
Select the Group By fields, including Payroll Tax and Payroll Tax Category.
Click Add under Payroll Tax Category
Select the Payroll Tax Category, Cost Account, and Ledger Account (Ledger Account Description will appear).
Enter the Percentage. This is determined by the State Revenue Department for the Payroll Tax you have selected.
Once all Payroll Tax Category lines have been added, click OK.
Repeat setups 8 to 15 until all Payroll Tax details lines have been created. Click OK.
Tip: A quick way to add Payroll Tax Categories is to complete the first line, then use the Copy feature at the bottom of the screen and change the Payroll Tax Category. You can also copy Detail lines.
Batch Processing
When an End of Pay has been completed:
Go to General Ledger Integration, Transactions, Batch Process.
Click Grid Display and tick the fields that relate to Payroll Tax, including Display Percent, Display Debit Percent, Display Credit Percent, and Display Payroll Tax Category.
OK to save.
Select Batch, Period From, Period To, and any other required fields.
Click Process.
When the batch is processed, the Percentage column in the grid displays the payroll tax rate entered in the batch Details. The percentage amount is displayed in either the Credit Percent or Debit Percent columns, depending on whether the batch Details were set up to be posted as either a credit or a debit.
You can Print Batch, Post Batch, Save Grid, or Generate File, which will create the file based on the General Ledger File Layout, ready to import into your Accounting software.