The payroll process revolves around the Employee and the Timecard Files. Timecards are entered from the employees' time sheet and update the Employee Record to generate paychecks. The timecards are stored by both employee and by charge number allowing for Employee, Direct, and Indirect labor reports to be printed without sorting. Timecards are maintained in detail for the entire fiscal year and are also used when printing the project management status reports.

Click below for greater detail on the following  subjects:

Employee Record Reports
Labor Categories Post Paychecks
Timecards Post Timecards

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THE EMPLOYEE RECORD

The Employee Record is very large and lends itself to a discussion in two distinct sections.  Each item stored in the Employee record may be printed in a user-defined custom report (see below).

General Information

A partial (but representative) list of the information stored in the first section of the employee record is shown below:
bulletTax Information:
bulletCurrent W/H State
bulletTax filing status - M or S
bulletFICA exemption
bulletFederal and State Exemptions
bulletFixed Federal and State W/H amounts
bulletAmounts to be deducted from each paycheck (in $ or %):
bulletThree individual employee deductions which may be charged directly to a G/L Account
bulletHealth Insurance
bulletLife Insurance
bulletDental Insurance
bulletOther insurance
bullet125 Plan
bullet125 Plan Dependent Care
bulletOther 125 Plan
bullet401K Plan
bulletPay Type - hourly or salaried
bulletPay Frequency - used to indicate different pay cycles
bulletTwo Hourly rates of pay. (Rates A and B)
bulletTwo Shift Time rates
bulletTwo Overtime rates
bulletVacation - hours to accrue and balance in hours and dollars
bulletSick Leave - hours to accrue and balance in hours and dollars
bulletCompensatory in hours and dollars
bulletSalary Variance - for salaried employees

Employee History

The second section of the record contains the employee history in six columns:

  1. Accrued (the payroll which is being paid)
  2. Current (the last payroll paid)
  3. Month
  4. Quarter
  5. Calendar Year
  6. Fiscal year

The Accrued Column is updated during Timecard Entry (see below). When the timecards are saved the hours and dollars are stored in the Employee Record broken down as follows:

  1. Regular - All except overtime, vacation, sick and holiday
  2. Overtime - All overtime timecards
  3. Vacation - Accounts 2300, 6300 and 7300
  4. Sick - Accounts 2302, 6302 and 7302
  5. Holiday - Accounts 2301, 6301 and 7301
  6. Overhead - 6XXX Accounts not ending in G
  7. G&A - 6XXX Accounts ending in G
  8. B&P - Contracts beginning with P
  9. I R&D - Contracts beginning with R
  10. Billed - All other Contract charges

The remainder of the Employee Records contains the "Gross-to-Net" data for the six periods shown above. The Paychecks are printed from the information contained in the Accrued Column.

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LABOR CATEGORY TITLES

Labor Categories A through Z may be assigned company wide and are used as default Labor Class Titles in the Contract Cost Record. The titles may be changed to contract specific titles as desired. These titles are used when printing Contract Status Reports. In addition, a three character Labor Class Billing Category may be assigned to each employee.

When timecards are entered, the operator is prompted with the 3 digit Labor Class Billing Category, if present, or the company assigned Labor Category from Employee Record. This default value may be changed; however, for ease of entry, it will be helpful if the category assigned in the Employee Record is the one to which the Employee is most often going to charge time.

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TIMECARDS

A timecard is created for each unique charge which appears on a timesheet. Timecards can be entered at the end of the pay period, or as often as desired during the pay period.

The CLOSER system will not accept duplicate timecards -- i.e., same employee number, labor category, charge code, pay rate, and date.

Recalculate Timecards

Full labor hour accounting (or uncompensated overtime) is one of the method that may be used in calculating the value of a set of timecards. This procedure divides the base salary by the number of hours worked in order to get an effective rate. This rate is then applied to the timecards. The difference between the amount of pay and the value of the timecards may also be recorded as a Salary Variance or Compensatory Time.

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REPORTS

EMPLOYEE PAYROLL DETAIL REPORT

The Employee Payroll Detail Report shows the labor in hours and dollars, by employee for the current pay period, the month, the fiscal year and cumulative.

DIRECT AND INDIRECT LABOR REPORTS

The Direct and Indirect Labor Reports shows the labor by Contract or Indirect G/L Account number for the same periods. The Hours and/or the dollars may be printed.

REPORT GENERATOR

The Custom Report Generator allows the operator to design a columnar report selecting any of the available data fields in the Employee Records. As with any report printed within the system, the Generated report may be printed (hard copy) or sent to a delimited ASCII file. Options available include:

bulletMath calculations on dollar fields.
bulletSave report formats to use later.
bulletPrint from any column.
bulletPrint by Division, W/H or Unemployment state.
bulletSuppress if Pay Rate or specific field = Zero

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POST PAYCHECKS

The Post paycheck procedure creates the Payroll (E) Transaction which summarizes the paycheck information. The transaction includes the following:
bulletCredits to cash for each check/ direct deposit
bullet Includes the employee and check numbers.
bulletSummary Credits to Social Security, Medicare, Federal, and state tax accounts.
bulletCredits recording the liabilities for all deductions made.
bulletThe calculated Vacation Accrual for the posting period.
bulletA debit to the accrued salary account.

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POST TIMECARDS

The Post Timecard procedure creates a Payroll (E) Transaction summarizing the labor charges. The transaction includes the following:
bulletDebits to the Direct Labor accounts.
bulletDebits to the Indirect Labor Accounts.
bulletDebits for Vacation, Sick, Holiday taken.
bulletA credit to accrued salaries account.

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