21st Century Accounting Help - Payroll/Configure

Income

Use Payroll/Configure/Income to define all types of income that employees receive from your company. Types of income include salaries, hourly wages, sales commissions, piece rates, expense reimbursements, cash benefits, reported tips, and pay period (other) income. The 21st Century Accounting21st Century Payroll shorthand term for all types of income is "pay factors."

Configuring income

You can indicate which taxes should be applied to the income factor for all types except expense reimbursements, which are not taxable.

Depending on the type of income (the "contribution method"), you then set up flat amounts (for salary and hourly rate, for example) and associated hours, or set up a calculation procedure (graduated scales for commissions, for example), and certain tax reporting information.

Finally, for all pay factors that are posted to the general ledger, you select the expense accounts, as appropriate, for posting the factors.

If you do not select the departmentalization option, the income factor accounts are the accounts used for posting income expenses.

Assigning income to employees

You can assign an income factor to all employees when you configure the income factor. You can also assign income factors to (and remove them from) selected employees in the Payroll/Configure/Employees window, where you also customize income factors for individual employees, if necessary.

Posting income

The system calculates and adds the income amounts to an employee's gross pay when you process Payroll for the employee and posts the incomes to the general ledger accounts assigned to the incomes.

If you select the option for departmentalization by G/L account segment in Payroll/Configure/Company Information, the expense and liability accounts you assign to pay factors that post to the general ledger (incomes, deductions, vacation and sick payouts, and taxes) are the "default" posting accounts. You then have the option to departmentalize each factor (or not). When you actually post paychecks using departmentalization, the system substitutes each employee's assigned department value for the department segment value in each factor's default account and posts expenses and liabilities for each employee to the accounts that are based on the employee's assigned departments.

If you select the option in Payroll/Configure/Company Information to allow manual distribution, during Payroll processing the system sums the earnings factors (incomes and vacation and sick payouts) that are configured to allow manual distribution. You then have the opportunity to manually distribute the gross earnings sum to up to 10 G/L accounts by percent, amount, or hours.