21st Century Accounting Tutorials - Payroll

Setting up Payroll

Setting up Payroll consists of installing the current Tax Tables, configuring Payroll Company Information for several options (if desired), configuring pay factors (income, deductions, noncash benefits, accruals, and taxes), and then adding employees and assigning their pay factors and other attributes.

(This lesson is designed for users who do NOT do departmental distribution of Payroll expenses.)

Follow these steps:

If you intend to use the Payroll Remittance Checks function, run Payables/Configure/Vendors to set up Payroll tax remittance payees as Payables vendors and then designate the appropriate remittance vendor for each Payroll tax when you configure the tax in the Payroll/Configure/Taxes window.

For Payroll tutorials,

NOTE: Because the sample data in NETCON contains data that fully illustrates most Payroll functions, the Payroll tutorials are built on NETCON.

You can see some remittance vendors in NETCON's Configure/Vendors window. For example, the United States Treasury is the remittance vendor for US FIT, US FUTA, US Med, and US SS.

Run System/Company/Select and select NETCON.

Run Payroll/Configure/Company Information.

Review the Payroll company configuration options:

Once Payroll data is posted in a 21st Century Accounting company, the Payroll departmentalization option is fixed. Since NETCON contains posted Payroll data, you can no longer change the departmentalization option. Read Help/Contents/Special Tasks/Payroll/ Departmentalizing Payroll to learn how to departmentalize Payroll by G/L account segment.

  • Turn on the option for manual pay distribution at any time if you intend to use this feature.

  • Check the option box to print vacation and sick balances on paycheck stubs at any time.

  • If you want to use the feature, at any time turn on the option to automatically calculate accrual pay amounts when you enter the number of accrual hours taken when you run Calculate or ATF Payroll.

Configure pay factors in this order

When you are setting up Payroll from scratch, set up pay factors used in your company's Payroll in this order for maximum effectiveness.

If you intend to track Workers’ Compensation, configure Workers’ Comp. Codes before you add employees.

  1. Income

  2. Deductions

  3. Noncash Benefits

  4. Vacation and Sick Accruals

  5. Tax Calculations (only if you have a local Payroll tax)

  6. Taxes

Configure Workers’ Comp. Codes if you report Workers’ Comp.

  1. Workers’ Compensation. Codes (if you track and report Workers’ Comp.)

  2. Employees


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