payroll setup and maintenance guide - adp setup and maintenance guide version 5.04

HR. Payroll. Benefits.

ADP Enterprise HR

Payroll Setup and Maintenance Guide

Version 5.04ADP-Hosted Clients

Versions 5.01, 5.02, and 5.03

ADP Copyright InformationCopyright 19932013 by ADP, Inc.Portions copyright 19881998 PeopleSoft, Inc.

Third-Party Copyright InformationFor copyright information about the third-party software used in ADPs HR/payroll solutions, click Copyright Information.

This manual supports ADP Enterprise HR Version 5.04.01. Published Fall 2013.

All rights reserved. The information contained in this document is proprietary and confidential to ADP. No part of this document may be reproduced or transmitted in any form or by any means, mechanical or electronic, including photography and recording, for any purpose without the express written permission of ADP.

The core software technology for ADPs product offering has been acquired through a licensing agreement with PeopleSoft, Inc., Pleasanton, California. Portions of the following text have been copied by permission of PeopleSoft, Inc. Product specifications are subject to change without notice. No product warranty should be implied from this document.

ADP and the ADP Logo are registered trademarks of ADP of North America, Inc. Enterprise HR is a registered trademark of ADP of North America Inc. Microsoft, Windows, Internet Explorer are registered trademarks, and Excel is a trademark of Microsoft Corporation. PeopleSoft and Java are registered trademarks of Oracle Corporation. SQR is a registered trademark of Hyperion Solutions Corporation.

Printed in the United States.

https://adp4me.adp.com/publicationservices/misc/copyright.htm

Contents

About This Guide

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiiAudience for This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiiiIntroducing the Enterprise Payroll Documentation Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xivWhats in This Book. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvWhats New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xviiRelated Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xviiiDocumentation Conventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xixProviding Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xxi

1 Introduction to Enterprise Payroll

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2Company Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-3Employee Payroll Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-4Payroll Cycle Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-5Post-Payroll Cycle Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-6Periodic Payroll Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-7Year-End Tax Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-8Enterprise Payroll Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-9

2 Defining Earnings and Special Accumulators

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-2Understanding Tax Considerations for Earnings Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3Understanding Payback Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4Defining an Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-5

Establishing Basic Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-6Defining Taxing Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-8

Selecting a Special Tax Reporting Category (ADP TAXServices Subscribers Only) . . . . . . . . .2-8Setting Up the Taxing Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-10

Establishing Factors and Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-13Selecting the Earnings Calculation Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-13Setting Up Factors and Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-18

Defining the Effect on Leave Accruals and Special Accumulators . . . . . . . . . . . . . . . . . . . . . . . . . .2-22Defining Earnings Code-Based Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-25Assigning an Earnings Type to an Earnings Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-27Printing Earnings Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-27

Defining a Retroactive Earnings Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-28Defining Employee Types that are Eligible for Retroactive Earnings . . . . . . . . . . . . . . . . . . . . . . . .2-29Establishing Retroactive Basic Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-29

ContentsPayroll Setup and Maintenance Guide Version 5.04

iv Contents

Establishing Retroactive Taxing Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-32Establishing Retroactive Factors and Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-34Defining Retroactive Accruals and Accumulators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-37Assigning the Retroactive Earnings Code to an Earnings Program . . . . . . . . . . . . . . . . . . . . . . . . . 2-39Linking a Retroactive Earnings Type to a Regular Earnings Type . . . . . . . . . . . . . . . . . . . . . . . . . . 2-39Printing Retroactive Pay Earnings Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-42

Defining an Account for Earnings Distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-43Defining an Earnings Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-44

Defining an Earnings Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-44Printing Earnings Program Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-46

Assigning an Earnings Type to an Earnings Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-47Defining a Special Accumulator Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-49

Establishing a Special Accumulator Code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-49Adding Special Balances to Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-51Calculating Special Balances Based on the Special Accumulator . . . . . . . . . . . . . . . . . . . . . . . . . . 2-53Printing Special Accumulator Panel Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-53

Assigning a Special Accumulator To An Earnings Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-54Assigning the Special Accumulator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-54Viewing Earnings Types and Deduction Codes Assigned to a Special Accumulator. . . . . . . . . . . . 2-57

Overriding Taxability Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-59Selecting the Appropriate Taxable Gross Component ID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-61Defining the Taxable Gross Component ID for a State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-62Defining the Taxable Gross Component ID for a Locality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-65Linking the State and Local Calculation Overrides. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-69Reviewing All Taxable Gross Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-72Reviewing Only Active Taxable Gross Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-72

Setting Up Third Party Sick Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-75Defining the Earnings for Third Party Sick Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-75Establishing the Taxable Gross Component ID. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-75

Defining Group-Based Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-76Defining Shift Differentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-76

Calculation of Shift Differentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-77Defining Your Companys Shifts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-78Printing Shift Code Definitions (PAY708) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-80Defining Shift Rate Groups for Your Employee Population . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-81Assigning Shift-Specific Rates to a Shift Rate Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-81Defining Shift Rates by Job Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-83

Defining Earnings Code-Based Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-84Defining the Earnings Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-84Defining Earnings Code-Based Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-84

Defining Additive Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-88Assigning Additive Groups to an Earnings Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-88Defining Additive Rate Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-89


Contents v

3 Defining Deductions

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-2Understanding How to Define a Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3

Understanding Deduction Processing Relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3Understanding Deduction Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-4

Example. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5Using Priorities to Determine Deduction Arrears. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5

Priority and Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-6Understanding the Effect of Deductions on Federal Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-7Setting Up Deductions with Multiple Classifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-8

Defining a Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9Establishing Basic Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9Establishing Taxing Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-12Defining Deduction Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-15Defining the Effect of Deductions into a Special Accumulator . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-18Defining the Deduction Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-20

Understanding How Pay Frequency Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-20Defining the Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-22

Assigning a Deduction Subset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-24Printing Deduction Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-26

Defining a Deduction Group Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-27Defining a Deduction Group Limit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-27Assigning Deduction Group Limit Code to a Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-29Viewing Deductions Assigned to a Deduction Group Limit Code. . . . . . . . . . . . . . . . . . . . . . . . . . .3-31

Defining a Deduction Subset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-34Defining a Deduction Subset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-34Assigning a Deduction Subset to a Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-36Viewing Deductions Assigned to a Deduction Subset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-38

Setting Up a Deduction Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-40Defining Section 415 Limits Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-41Defining General Deduction Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-42

Defining the General Deduction Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-42Printing General Deduction Panel Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-46

Updating ETD Deduction Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-47Defining Garnishments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-48

Defining Deduction Information for Garnishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-49Defining the Deduction Priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-49Establishing Deduction Classifications and Tax Effects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-51Defining Deduction Parameters and GL Account Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-52Defining Pay Periods and Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-54Establishing Data for Specific Garnishment Court Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-55

Defining Garnishment Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-57Defining Disposable Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-58Defining the Rules for Garnishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-64Printing Garnishment Rule Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-70

Manually Overriding Garnishment Prioritization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-71Viewing Garnishment Laws by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-72

Setting Up U.S. Savings Bond Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-74Defining U.S. Savings Bond Denominations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-74Printing Savings Bond Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-76Specifying Federal Reserve Bank Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-77


vi Contents

4 Defining Pay Groups

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2Overview of Pay Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3Completing a Pay Group Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5Establishing Basic Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-6Establishing Employee Type Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-10Establishing Earnings and Payment Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13Setting Up Deduction Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-16Setting Up Proration Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-18Setting Up Paycheck Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-21Defining Paycheck Print Sequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-23Assigning a Time and Labor Management System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25Printing Pay Group Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-28

5 Setting Up the General Ledger Interface

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2Defining General Ledger Interface Options at the Company Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3

Defining General Ledger Account Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3Defining General Ledger Account Number Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6

Specifying the Earnings to Use for Statistical Hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-11Allocating a Specific Fringe to a Different Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-12Allocating Paid-time Off Accruals for a Specific Leave Plan to a Different Department . . . . . . . . . . . . 5-13

6 Defining Company Tax Data

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-2Reviewing Tax Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-3Reviewing Tax Classes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-4Calculating Taxes for Supplemental Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-6Defining Tax and Interface Data at the Company Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-8Reviewing Federal/State Tax Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-12

Reviewing Configuration Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-13Reviewing Tax Rate Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-15Reviewing Other Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-17Reviewing State-Level Nonstandard Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-18Reviewing EE-Level Nonstandard Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-19Printing Federal/State Tax Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-22Printing State Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-22

Reviewing Federal/State Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-23Reviewing Formula Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-23Reviewing Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-25

Defining State Tax Reciprocity Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-28Defining State Tax Reciprocity Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-28Printing State Tax Reciprocity Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-30

Verifying Local Tax Configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-31Verifying Local Tax Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-31

Verifying Local Tax Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-31Verifying Calculation Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-34


Contents vii

Printing Local Tax Reciprocity Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-36Converting/Deleting Localities from an Employees Local Tax Record . . . . . . . . . . . . . . . . . . . . . .6-36

Following Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-37Converting Localities from an Employees Local Tax Data Record . . . . . . . . . . . . . . . . . . . . .6-37Deleting Localities from an Employees Local Tax Data Record . . . . . . . . . . . . . . . . . . . . . . .6-41

Defining Local Tax Reciprocity Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-45Defining a Local Tax Reciprocity Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-46Printing Local Tax Reciprocity Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-48

Defining State/Local Effects for Earnings and Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-49Defining Company State/Local Tax Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-50

Defining Basic Tax Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-50Defining General Ledger Account Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-55Defining Local Tax Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-57Printing Company State Tax Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-59

Defining UI Report Codes for Work-Site Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-60

7 Setting Up Insurance

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-2Setting Up Group Term Life Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-3

Understanding Automatic Calculation of Imputed Income and Taxes. . . . . . . . . . . . . . . . . . . . . . . . .7-3Defining a Deduction for Group-Term Life Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-5Changing Definitions of Taxable Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-5Viewing Examples of Imputed Income Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-6

Basic Life Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-6Basic and Supplemental Life Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-7Basic and Supplemental Life Coverage with Large Employee Contribution . . . . . . . . . . . . . . . .7-9

Setting Up Voluntary Disability Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-11Setting Up The Tax Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-12Recording the Disability Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-12Recording the General Ledger Liability Account Number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-12Indicating Whether the Disability Plan is State or Private . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-13Recording the General Ledger Expense Account Number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-13

8 Maintaining Banking Information

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-2Defining a U.S. Payroll Bank Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-3

Setting Up a Payroll Bank Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-3Setting Up a Bank Account Using the Payroll Bank Accounts Task . . . . . . . . . . . . . . . . . . . . . .8-4Importing Bank Table Data from a .csv File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-6

Printing Payroll Bank Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-8Defining a Foreign Bank Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-10Overriding NACHA Bank Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-13Defining Pay Forms for Checks, Advices, ADPCheck, and FSDD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-15

Setting Up Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-15Defining the Pay Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-16Assigning a Pay Form to a Pay Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-18

Setting Up Fund Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-21Indicating that You Are Using Fund Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-22Defining an Account for Fund Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-22


viii Contents

Printing Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-24Maintaining Fund Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-25

Clearing Fund History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-27Printing Fund Accounting Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-28

Printing the Fund Summary Report (PAY100) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-28Printing the Unfunded Positions Report (PAY103). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-29

9 Setting Up Paycheck Delivery Information

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-2Setting Up Vendor Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-3Assigning Paycheck Delivery Information to a Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-5

10 Maintaining Enterprise Payroll Messages

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-2Defining an Enterprise Payroll Error Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-3Printing Enterprise Payroll Messages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-5

11 Setting Up the Interface to Time and Labor Management Systems

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-2Assigning a Time and Labor Management System to Pay Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-3Setting Basic Time and Attendance Parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-4

Defining Process Rules for Time and Attendance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-4Defining the Name and File Type for the Import File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-7Mapping a Pay Category to an Earnings Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-9Defining Time Reporting Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-11

Setting Up the Enterprise eTIME Interface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-13Automatically Importing TLM Data into Time and Attendance. . . . . . . . . . . . . . . . . . . . . . . . . . . 11-13Manually Setting Up TLM Data in Time and Attendance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-14

Defining Accrual Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-14Defining Group Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-16Defining Pay Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-17Defining Person Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-19Defining Terminal Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-21Defining Time Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-22Defining Time Entry Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-23Defining Wage Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-25

Setting Up the eTIME Interface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-27Automatically Importing TLM Data into Time and Attendance. . . . . . . . . . . . . . . . . . . . . . . . . . . 11-27Manually Setting Up TLM Data in Time and Attendance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-28

Defining Time Clock Classes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-28Defining Time Clocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-29Defining Restriction Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-31

Setting Up the TimeSaver Interface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-33Automatically Importing TLM Data into Time and Attendance. . . . . . . . . . . . . . . . . . . . . . . . . . . 11-33Manually Setting Up TLM Data in Time and Attendance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-34

Defining Benefit Plan Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-34Defining Employment Status Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-35


Contents ix

Defining Site Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-37Defining Labor-Level User Fields to Track TLM Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-39

Defining the Field Label . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-39Creating Values for a Field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11-40

12 Setting Up ADP Premium Services

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-2Setting Up Your ADP Company Code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-3Setting Up the Wage Garnishment Processing Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-5

Activating the Wage Garnishment Processing Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-6Indicating that You Are an Enterprise Payroll WGPS Client . . . . . . . . . . . . . . . . . . . . . . . . . . .12-6Identifying Your Company as a WGPS Subscriber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-6

Adding New Garnishment Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-7Adding a Payee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-7Splitting Garnishment Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-7Assigning the Garnishment Deduction to an Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-8Setting Up a Garnishment Specification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-8

Forwarding Initial Employee Garnishment Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-9Issuing a Lien Termination Letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-10

Setting Up the ADPCheck, FSDD, iPayStatements, and TotalPay Card Services . . . . . . . . . . . . . . . . .12-13Activating the Premium Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-13

Indicating that You Are an Enterprise Payroll ADPCheck, FSDD, iPayStatements, and/or TotalPay Card Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-14Identifying Your Company as an ADPCheck, FSDD, iPayStatements, and/or TotalPay Card Subscriber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-14

Assigning iPayStatements and/or TotalPay Card to a Pay Group . . . . . . . . . . . . . . . . . . . . . . . . . .12-16Setting Up the ADP TAXServices Interface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-18

Reviewing Setup Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-19Viewing Maximum Levels of Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-19Assigning ADP TAXServices IDs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-21Establishing User-Defined Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-22Implementing Mid-Year/Mid-Quarter Starts and Service Types . . . . . . . . . . . . . . . . . . . . . . .12-24

Indicating That You Are an ADP TAXServices Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-25Defining Tax Filing Company Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-25Identifying Your Company as a Subscriber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-27Verifying That All States Are Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-27Defining Federal, State, and Local Taxing Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-28

Establishing a Default ADP TAXServices Tax Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . . . . .12-28Defining Additional ADP TAXServices Tax Jurisdictions . . . . . . . . . . . . . . . . . . . . . . . . . . .12-29Terminating an ADP TAXServices Tax Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-30

Recording the Tax Filing Type of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-33Establishing Default Jurisdiction and Type of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-33Adding an Type of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12-33


x Contents

13 Maintaining Employee Payroll Data

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-2Defining Additional Fields to Track Employee Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-3Understanding Date Processing in Enterprise Payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-4

General Deductions Effective Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-4Additional Pay Effective Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-6Benefit Deductions Effective Dates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-7Job Data Effective Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-8

Setting Up Additional Pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-10Setting Up Additional Pay Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-11Setting Up Additional Charge Codes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-15Setting Up Additional Pay, Taxes, and Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-17

Assigning Retroactive Pay to Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-20Assigning Group-Based Earnings to Individual Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-21

Assigning Shift Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-21Assigning Earnings Code-Based Rate Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-22Assigning Additive Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-24

Reviewing Compensation Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-27Entering Federal, State, and Local Tax Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-28Establishing General Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-29Overriding General Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-33Working with Employee Savings Bond Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-36Setting Up and Maintaining Direct Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-40

Working with Deposit Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-41Setting Up Direct Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-41Setting Up One-Time Stops on Direct Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-44Running Direct Deposit Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-46

Setting Up Garnishments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-47Splitting Garnishment Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-47Entering a Garnishment General Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-48Setting Up a Garnishment Specification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-48

Establishing the Garnishment Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-48Establishing Garnishment Payee Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-52Specifying Garnishment Rules and Exemption Parameters. . . . . . . . . . . . . . . . . . . . . . . . . . . 13-53Defining Garnishment Deduction Parameters and Limitations . . . . . . . . . . . . . . . . . . . . . . . . 13-56Indicating Excluded Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-60Setting Up Deduction and Process Fees Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-62Setting Up the Deduction Schedule and Calculation Methods . . . . . . . . . . . . . . . . . . . . . . . . 13-64Setting up WGPS-Specific Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-66Printing Garnishment Specification Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-68

Setting Up Paycheck Delivery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-71Setting Up Time and Labor Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-74

Setting Up Enterprise eTIME Employee TLM Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-74Setting Up eTIME Employee TLM Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-78Setting Up TimeSaver Employee TLM Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-80

Assigning ADP TAXServices IDs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-83


Contents xi

A Working with Flexible Field Lengths

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-2Working with Character Fields. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-3Working with Number Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-5

B Completing Accumulation for Supplemental Wages

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-2Attaching the $1M Accumulator Code to the Earnings Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-3

Index


xii Contents


About This Guide

PAGE TOPIC

xiv Introduction

xv Audience for This Guide

xvi Introducing the Enterprise Payroll Documentation Library

xvii Whats in This Book

xix Whats New

xx Related Documentation

xxi Documentation Conventions

xxiii Providing Comments

About This GuidePayroll Setup and Maintenance Guide Version 5.04

xiv Introduction

Introduction

This guide provides the procedures and tasks required to process your payroll using ADPs Enterprise HR payroll solution (referred to as Enterprise Payroll). Various optional tasks and procedures are also provided.


Audience for This Guide xv

Audience for This Guide

This guide is written for payroll professionals who are using ADPs Enterprise HRSM solution (referred to as ADP Enterprise HR) for payroll activities that occur periodically.

To take full advantage of this guide, we recommend that you have a basic understanding of how to use the ADP Enterprise HR product and have completed the Enterprise Payroll training course(s). This guide is not intended to be a tutorial.

You should be familiar with how to navigate around in the ADP Enterprise HR product and how to add, modify, and delete information. In addition, you should be comfortable with using a graphical user interface as well as a web-enabled application.


xvi Introducing the Enterprise Payroll Documentation Library

Introducing the Enterprise Payroll Documentation Library

The Enterprise Payroll library consists of the following guides:

Payroll Setup and Maintenance Guide - describes all the payroll activities that you must complete before you can process a payroll, such as setting up and maintaining company definitions and employee payroll information.

Payroll Processing Guide - describes the process of running a typical payroll. In addition, it provides instructions on running an off-cycle payroll for on-demand or on-line checks, adjustments, and reversals. It also provides information on post-payroll cycle processes such as preparing your payroll distributions and building your ADP TAXServices interface file. Finally, it provides step-by-step instructions on periodic payroll processes.

Employee Tax Setup Guide - provides the procedures and information necessary to set up employee tax withholding information. Customized instructions are provided for states and localities with special withholding requirements.


Whats in This Book xvii

Whats in This Book

This guide, the Payroll Setup and Maintenance Guide, covers the following topics:

Chapter 1, Introduction to Enterprise Payroll, provides an overview of the Enterprise Payroll module

Chapter 2, Defining Earnings and Special Accumulators, provides Enterprise Payroll settings information used throughout the payroll process such as, how each type of earnings is taxed, calculated, and adjusted, as well as how it may affect other balances. The chapter includes information for earnings type tax considerations and payback deductions, and step-by-step instructions for setting up earnings, retroactive earnings, account codes for earnings distributions, an earnings program, special accumulators, and overriding taxability rules. In addition the chapter provides step-by-step instructions for defining shift differentials, earnings code-based rates, and additive rates. Finally, the chapter provides step-by-step instructions for reporting third party sick pay details through the interface files set up with ADP TAXServices. This feature applies to third party sick pay only when the third party transfers the employer tax liability back to the employer.

Chapter 3, Defining Deductions, provides instructions for defining deductions, deduction subsets, deduction group limits, and general deductions. In addition, it describes how to define Section 415 Limits, set up a deduction program, and update Employment-To-Date deduction balances. It also provides step-by-step instructions for defining U.S. savings bond deductions. Finally, it provides step-by-step instructions for setting up ordinary automated garnishments or court ordered garnishments that call for specific disposable earnings definitions by tailoring your own garnishment rules to fit the orders.

Chapter 4, Defining Pay Groups, provides step-by-step instructions for setting up pay groups which are organizational tools that help you categorize employee types and streamline payroll processing.

Chapter 5, Setting Up the General Ledger Interface, provides step-by-step instructions for setting up the general ledger interface. With the ADP Enterprise HR General Ledger interface, you can track employee wages, benefits, employee taxes, and paid time-off accruals, and generate files for statistical hours and paid time-off accruals. In addition, if you use the Pathways Financial Management System, the general ledger interface generates these files in a format compatible with your system. Finally, information is provided in this chapter to designate the allocation of employer taxes and fringes.

Chapter 6, Defining Company Tax Data, provides information on calculating taxes for supplemental wages and s tax tables. In addition, it describes how to define state and local tax reciprocity, local tax data, state/local effects for earnings and deductions, company state/local tax information, and UI report codes.

Chapter 7, Setting Up Insurance, provides information about the IRS regulations defining a group-term life plan and coverage amounts that are considered imputed income and taxable to the employee. The chapter provides step-by-step instructions for setting up group-term life insurance, defining a deduction for group-term life insurance, and defining tax options. In addition, it provides step-by-step instructions for setting up temporary disability benefits for employees.


xviii Whats in This Book

Chapter 8, Maintaining Banking Information, provides step-by-step instructions for setting up bank accounts information to identify every bank and savings institution where your company has accounts established for payroll purposes. In addition, this chapter provides step-by-step instructions on defining pay forms for checks, advices, ADPCheck, and FSDD. It also describes how to override NACHA bank account information. Finally, it describes how to set up fund accounting.

Chapter 9, Setting Up Paycheck Delivery Information, provides instructions for setting up delivery vendor accounts and then establishing paycheck shipping information for each location.

Chapter 10, Maintaining Enterprise Payroll Messages, provides information for reviewing all the error messages that may occur during the payroll processes and adding or customizing your own messages.

Chapter 11, Setting Up the Interface to Time and Labor Management Systems, provides instructions for importing external payroll data files from a time collection system and then updating paysheets with this pay cycle data. External systems include time clocks (such as eTIME) and the ADP Rapid Pay Data Entry facility. Importing eliminates the need to enter exception and hourly employees directly into paysheets for regular, overtime, and other earnings one employee at a time. This chapter provides step-by-step instructions for setting up your time and attendance parameters and your interface to the Time and Labor Management system.

Chapter 12, Setting Up ADP Premium Services, describes how to set up optional ADP Enterprise HR premium services. It provides instructions for setting up your ADP company code. It also describes how to set up the ADPCheck, FSDD, iPayStatements, and TotalPay Card services as well as the Wage Garnishment Processing Service (WGPS). Finally, it describes how to set up the interface between ADP Enterprise HR Payroll clients and ADP TAXServices.

Chapter 13, Maintaining Employee Payroll Data, provides step-by-step instructions for establishing and maintaining employee specific payroll data such as, special earnings, retroactive pay, group-based earnings, tax information, additional pay, and general deductions. In addition, information is provided for overriding general deductions, setting up employee savings bond deductions, garnishments, paycheck delivery, and setting up time and labor management information. Finally, this chapter describes how to assign ADP TAXServices IDs.

Appendix A, Working with Flexible Field Lengths, provides a list of the maximum field sizes for specific ADP Enterprise HR applications.

Appendix B, Completing Accumulation for Supplemental Wages,describes how to complete tax accumulation for supplemental wages exceeding one million dollars.


Whats New xix

Whats New

The following changes have been made to this guide for Version 5.04:

You can now specify which deduction codes can be updated or displayed in Employee Self Service. In the General Deductions panel:

The Self Service Visible and Allow Self Service Update check boxes were added.

The Self Service Applicable check box was removed.

See Defining the General Deduction Calculation on page 3-42.

You can now override the local tax rate entered at the system level (Payroll ~ Company Definitions ~ System Tax Data ~ Local Tax Configuration). On the Local Tax Data panel, select the Use Company Tax Rate check box and then enter the Company Tax Rate.

See Defining Local Tax Data on page 6-57.


xx Related Documentation

Related Documentation

This guide describes all the payroll activities that you must complete before you can process a payroll. It includes step-by-step instructions for setting up and maintaining both company-level and employee-level payroll information.

You may need to refer to related documentation for other areas of the product. You can access the documentation in the following locations:

Online manuals through the ADP Enterprise HR application Help menu

Printed and online manuals on the web at adp4me.adp.com, select the Product Knowledgebase tab and then select Payroll / HR

The Using ADP Enterprise HR Guide also includes a related documentation table which lists the documentation set delivered with the application, the purpose of the documents, and where the documents can be located. This table also includes a list of delivered online help.

To access the ADP Enterprise HR guides on this web site, you must be assigned the ADP4ME User role in the ADP Netsecure Security Management System. This role is issued a digital certificate. For more information, contact your system administrator.


https://.adp4me.adp.com

Documentation Conventions xxi

Documentation Conventions

Table 1 describes the documentation conventions used in this guide

Note: ADP Enterprise HR allows your administrator to configure panels, translate values, and the ADP Enterprise HR home page. Your administrator can change field labels, assign default values to fields, define fields as required, hide fields, as well as re-align fields on a panel. Translate values can be added, changed or deleted for many fields. Panel illustrations and field descriptions used throughout this guide represent the default settings as delivered by ADP. For specifics on configuring ADP Enterprise HR, see the Application Administrators Guide.

Table 1. Documentation Conventions

Documentation convention Descriptionbold In procedures, user interface items that you

select, click, or enter information for are shown in bold. For instance, panel names, buttons, and field names.

command Indicates that you should type the command on your computer.

Signifies important additional information.

Signifies very important additional information

Identifies helpfulbut not necessaryinformation.

Signifies that a failure to follow the recommended procedure could result in a loss of data or could result in the product not performing properly.

Used to indicate either of the following: You can find additional information in the

online Help

You can find additional information on interface shortcuts and tips in the users guide.

Company Definitions ~ Organization Definitions

At the beginning of a procedure, shows the path or navigation to a process or task.

People ~ Personnel Actions ~ Change Employees Job/Position ~ Change Job Position

Within text, shows the path or navigation to a process, task, or panel.


xxii Documentation Conventions

Indicates that you have reached the end of one step in a multiple-step process. Instructions are given after this convention to help you find the next step in the process and other related information.

Indicates that you have reached the end of a procedure. If additional information is available, it is noted after this convention.

Indicates where you can find a complete description of every field on a panel.

This convention is placed either to the left or, less often, to the right of a screen illustration.

Lists each step in a multi-step process, and indicates which step the current section is documenting.

In this example, the third step is currently being documented. Note that this step is highlighted in bold and is preceded by a check mark.

If you are viewing an online manual, click the highlighted text to jump to the desired section.

Table 1. Documentation Conventions (cont.)

Documentation convention Description

For a description of the fields on this panel, press F1.

MULTI-STEP PROCESSFirst step in process

Second step in process

Third step in process


Providing Comments xxiii

Providing Comments

We welcome your comments and suggestions about the documentation delivered with ADP Enterprise HR. That way, we can continue to improve the manuals and online Help. You can provide comments in one of the following ways:

Select Help ~ Online Manuals from the ADP Enterprise HR application and then click the link to submit your suggestions.

Give us feedback by visiting the web at www.adp4me.nas.adp.com, select the Product Knowledgebase tab and then select Payroll / HR


www.adp4me.nas.adp.com

xxiv Providing Comments


Chapter 1

Introduction to Enterprise Payroll

PAGE TOPIC

1-2 Introduction

1-3 Company Definitions

1-4 Employee Payroll Information

1-5 Payroll Cycle Process

1-6 Post-Payroll Cycle Processes

1-7 Periodic Payroll Processes

1-8 Year-End Tax Reporting

1-9 Enterprise Payroll Reports

Chapter 1: Introduction to Enterprise PayrollPayroll Setup and Maintenance Guide Version 5.04

1-2 Introduction

Introduction

Enterprise Payroll is an intuitive, innovative payroll system that provides complete control over all aspects of payroll operationfrom time reporting, payroll calculation, and tax computation to check preparation, payroll reporting, and tax reporting.

This chapter provides an overview of the flow of activities relative to using Enterprise Payroll and processing your payroll.


Company Definitions 1-3

Company Definitions

Before running a payroll, you must establish company definitions. These tasks include setting up and maintaining the following definitions:

Earnings

Special accumulators

Group-based earnings

Deductions

Garnishments

Section 415 limits

Company tax data

System tax data

Pay groups

Payroll calendars

Fund accounting

Payroll forms

Holiday schedules

Banking information

Time and Attendance

Time and Labor Management (TLM) system interface

Pay Data Entry views

Enterprise Payroll messages

ADP TAXServices interface

ADP Wage Garnishment Processing Service (WGPS)

Third-party sick pay

ADP company code

Organization definitions

For detailed information on setting up company definitions, refer to this guide.


1-4 Employee Payroll Information

Employee Payroll Information

Before an employee can be paid, you must enter employee payroll information. These tasks include:

Special earnings for specific employees

Group-based earnings for individual employees

Federal, state, and local tax data

General deductions and overrides

Direct deposits

Garnishments

Paycheck delivery information

Time and Labor Management (TLM) data

Job earnings distributions

Savings bonds

Leave balances

For detailed information on setting up employee payroll information, refer to this guide.

For detailed information on setting up federal, state, and local tax data, refer to the Employee Tax Setup Guide.


Payroll Cycle Process 1-5

Payroll Cycle Process

The Enterprise Payroll payroll cycle consists of the following tasks:

Generating initial pay cycle data (paysheets)

Entering pay cycle data using paysheets

Entering pay cycle data using the Pay Data Entry system

Importing pay cycle data

Updating pay cycle data

Recording third party sick payments

Creating estimates of paychecks

Calculating retroactive pay

Creating estimates for employee paychecks

Viewing preliminary check data

Calculating and confirming your payroll

Performing adjustments and reversals

Creating manual checks using the On-Line Check process

Processing Time and Attendance data

Handling balance adjustments

Deleting pay cycle data

Unconfirming a payroll

Reversing leave balances

For detailed information on running your payroll cycle, refer to the Payroll Processing Guide.


1-6 Post-Payroll Cycle Processes

Post-Payroll Cycle Processes

Post-payroll cycle processes consist of the following:

Generating summary reports

Printing checks and advices

Creating the NACHA file

Creating the ADP Payment Solutions Services file

Reprinting checks

Generating and transmitting ADP TAXServices files

Generating and transmitting ADP Wage Garnishment Processing Service (WGPS) files

Distributing your payroll

Researching and correcting employee payroll data

Processing manual and on-demand checks

Adjusting and/or reversing a paychecks

For detailed information on running your payroll cycle, refer to the Payroll Processing Guide.


Periodic Payroll Processes 1-7

Periodic Payroll Processes

You perform several payroll processes on a monthly, quarterly, or annual basis.

Monthly tasks include:

Updating leave balances

Creating general ledger accruals for leave balances

Reconciling your checks

Purchasing savings bonds

Creating Federal Reserve Bank files for savings bonds

Creating the ADP UCM Services Wage file

Generating monthly summary reports

Updating dead paychecks

Quarterly tasks include:

Setting up multiple-company reporting

Setting up multiple work-site reporting

Running your quarterly state wage reports

Generating summary reports

Processing TAXServices interface quarterly data

Annual tasks include:

Creating a pay calendar

Assigning a pay run ID to a pay calendar

Defining a holiday schedule

Archiving/deleting/restoring/converting payroll data

Preparing for year-end tax reporting

For detailed information on running your periodic payroll processes, refer to the Payroll Processing Guide.


1-8 Year-End Tax Reporting

Year-End Tax Reporting

Enterprise Payroll is designed to help you organize and process your year-end data and reports in the most efficient possible way. The primary goal of year-end processing is to produce accurate tax reportsthe key report being the W-2, which must be mailed to every employee by January 31.

For instructions on year-end tax reporting processes you can complete throughout the year, refer to the Payroll Processing Guide.

For detailed information on all aspects of year-end tax reporting, refer to the Year-End Tax Reporting Guide.


Enterprise Payroll Reports 1-9

Enterprise Payroll Reports

Enterprise Payroll reports support your payroll requirements by providing the following types of reports and processes:

Payroll cycle

Paychecks

Direct deposits

General ledger

Tax reports

Tax definitions

Tax Service

Time and Attendance

Payroll definitions

Payroll utilities

These standard reports are created using Structured Query Report Writer (SQR). ADP delivers this third party product with Enterprise to provide you with ability to customize the standard reports to meet your specific needs. For additional information on SQR, refer to the SQR Users Guide provided by SQRiBE.

You will find information about running specific Enterprise Payroll reports and processes throughout all of the Enterprise Payroll guides. For detailed information about the reports that Enterprise provides, refer to the Standard Reports Guide.


1-10 Enterprise Payroll Reports


Chapter 2

Defining Earnings and SpecialAccumulators

PAGE TOPIC

2-2 Introduction

2-3 Understanding Tax Considerations for Earnings Types

2-4 Understanding Payback Deductions

2-5 Defining an Earnings

2-28 Defining a Retroactive Earnings Type

2-43 Defining an Account for Earnings Distributions

2-44 Defining an Earnings Program

2-47 Assigning an Earnings Type to an Earnings Program

2-49 Defining a Special Accumulator Type

2-54 Assigning a Special Accumulator To An Earnings Type

2-59 Overriding Taxability Rules

2-75 Setting Up Third Party Sick Pay

2-76 Defining Group-Based Earnings

Chapter 2: Defining Earnings and Special AccumulatorsPayroll Setup and Maintenance Guide Version 5.04

2-2 Introduction

Introduction

This chapter provides step-by-step instructions for setting up the following earnings and special accumulator information:

Earnings

Retroactive pay earnings type

Account code for earnings distribution

Earnings program

Special accumulator type

Taxability rules override

As you work through the tasks in this chapter, you may have questions about fields and options on the panels. To display a description of the fields and options, press F1 (Help) from the panel.

You can often complete a task in the product in multiple ways. For information on interface shortcuts and tips, refer to the Using ADP Enterprise HR Guide.


Understanding Tax Considerations for Earnings Types 2-3

Understanding Tax Considerations for Earnings Types

If an earnings is considered taxable for a specific employee-paid tax, Enterprise Payroll calculates withholding for that tax unless the Withhold FIT option is turned off on the Taxing Options panel (Payroll ~ Company Definitions ~ Earnings). Table 2-1 illustrates how you might set up various earnings types.

Turn the Subject to FIT, FUT, and Social Security and Medicare options on or off on this panel based on whether the earnings should be added to the taxable gross for the specific tax. These settings enable Enterprise Payroll to determine exactly how much of an employees pay is subject to federal, state or local taxes.

Table 2-1. Earnings Types

Earnings FIT FUT

Social Security and Medicare

Regular Tax Tax Tax

Overtime Tax Tax Tax

Injury Pay Tax Tax Tax

Expense Reimbursement

No Tax No Tax No Tax

Disability Payment

Tax No Tax No Tax


2-4 Understanding Payback Deductions

Understanding Payback Deductions

When calculating certain earnings, such as a loan or vacation advance, Enterprise Payroll automatically creates an arrears balance for the earnings amount if you enter a general deduction code in the Payback Deduction field on the Taxing Options panel (Payroll ~ Company Definitions ~ Earnings). Enterprise Payroll attempts to recover the arrears associated with this deduction code during subsequent payrolls until it has been reduced to zero. The actual amount deducted each payroll is based on the maximum arrears payback amount that you enter using the Basic Deduction Data panel (Payroll ~ Company Definitions ~ Deductions ~ Deductions).

For example, you set up an earnings type, ADV, for salary advance. Then you create a salary advance payback deduction code of ADVPB. You first need to set up the ADVPB deduction code, and then create the general deduction in the General Deductions task (Payroll ~ Company Definitions ~ Deductions ~ General Deductions) with a flat dollar deduction amount of $0unless you want to specify a dollar amount to be taken in addition to the actual arrears payback amount, which you enter by adding a new deduction code in the Deductions task (Payroll ~ Company Definitions ~ Deductions). On the Basic Deduction Data panel you can enter a flat dollar amount to tell Enterprise Payroll the maximum amount that can be deducted each pay period. Now you can enter ADVPB as the payback deduction code on the Taxing Options panel (Payroll ~ Company Definitions ~ Earnings) for the ADV earnings type.


Defining an Earnings 2-5

Defining an Earnings

When you are defining earnings in Enterprise Payroll, it relies on information stored in the Earning task to determine how earnings are processed. The panels store the parameters and rules printing for calculating earnings. In these panels, you define how each type of earnings is taxed, calculated, and adjusted, as well as how it may affect other balances.

When establishing your earnings, make sure that earnings and accumulators do not share the same codes.

Defining an earnings type consists of the following:

Establishing Basic Data

Defining Taxing Options

Establishing Factors and Rates

Defining the Effect on Leave Accruals and Special Accumulators

Defining Earnings Code-Based Rates

Assigning an Earnings Type to an Earnings Program

Printing Earnings Information




To enter an earnings type, do the following:

1. Click Payroll and make the following selections:

Company Definitions ~ Earnings

2. Click next to the Earnings task. The Add dialog box displays.

Figure 2-1. Add Dialog Box

To modify an existing earnings, double-click the Earnings task, enter the search criteria

in the Search dialog box, and click OK. To preserve history, click (Insert Row).

3. Enter the earnings type in the Earnings Type field and click OK. The Basic Data panel displays.

When establishing your earnings, make sure that earnings and accumulators do not share the same codes.

Figure 2-2. Basic Data Panel

4. Select a new Effective Date if necessary.

5. Enter a description for the earnings in the Earnings Description field.

6. Enter a short description in the Short Description field.












7. Select the option that indicates which type of employees are eligible for this earnings type in the Allowable Employee Types area.

8. Select one of the following payment type options from the Payment Type area. This option controls how earnings are entered on paysheets.

Either Hours or Amount OK - Select this option if you want Enterprise Payroll to accept either hours or amounts entries for this earnings type.

Both Hours and Amounts OK - Select this option to accept both hours and amounts for other earnings on paysheets. This allows you to record an employee's hours for record-keeping purposes and enter the actual amount of pay (which may be unrelated to the number of hours in terms of the employee's actual hourly rate).

Hours Only - Select this option if you want Enterprise Payroll to accept only hours (and not amounts) entries for this earnings type.

This validation occurs during payroll calculation.

Amounts Only - Select this option if you want Enterprise Payroll to accept only amounts (and not hours) entries for this earnings type.

This validation occurs during payroll calculation.

Per-Unit Rate - Select to provide a per unit rate for the earnings.

If you select this option, you must also enter the number of units in the Hours field on the Earnings panel (Payroll ~ Payroll Cycle Processes ~ Update Pay Cycle Data ~ Earnings and Overrides-Paysheet). The hourly rate on the paysheet must be set to $0.00. Enterprise Payroll uses the per-unit specified here to calculate the earnings amount.

9. Use the following check boxes in the Pay Statement Options area to indicate if you want the earnings, rate, and/or hours displayed on the paycheck, advice or in the ADP Payment Solutions Services files:

a. Select the Include Earnings check box if you want to display the earnings on the paycheck, advice, or in the ADP Payment Solutions Services files.

If the Add to Gross Pay check box is selected on the Taxing Options panel for this earnings, then this check box is automatically selected and is grayed.

b. If you selected the Include Earnings check box, then you can select one of the following check boxes:

Select the Include Rate check box to display the rate for the earnings type on the paycheck, advice, or in the ADP Payment Solutions Services files.

Select the Include Hours check box to display the hours for the earnings type on the paycheck, advice, or in the ADP Payment Solutions Services files.



The following shows an example of a completed Basic Data panel:

Figure 2-3. Basic Data Panel

You have just finished establishing an earnings type. Next, define special options and tax methods for the earnings type.


Use the Taxing Options panel to enter special options and tax methods for earnings types. This panel defines how each type of earnings is taxed, calculated, adjusted, and how it may affect other balances.

Defining taxing options consists of the following:

Selecting a Special Tax Reporting Category (ADP TAXServices Subscribers Only)

Setting Up the Taxing Options

Selecting a Special Tax Reporting Category (ADP TAXServices Subscribers Only)

When ADP TAXServices subscribers access the Taxing Options panel to set up taxing options, they will select a special tax reporting category for the earnings code they are setting up.












Table 2-2 lists all available special tax reporting categories and provides a description of each.

Table 2-2. Special Tax Reporting Categories

Category DescriptionCar Allowance Use only when 100% of the lease value is recorded for the

earnings and reported on the W-2 as a taxable fringe. If you select this option, you must also select the corresponding earnings type in the Tax Form Definitions task (Payroll ~ Year-End Tax Reporting ~ W-2 Setup).

Deferred Compensation 414h

Use when the earnings is considered deferred compensation 414(h).

Meals Use when an actual meal, rather than a meal dollar allowance, is provided for employer convenience. Generally these meals are not considered FUTA taxable, but may be taxable for state unemployment in some states. Use the Subject to FUT field and the taxable gross components to determine the taxability of this earnings type.

Moving Expense Use to identify moving expense incurred for employees.

Moving Expense Third Party

Use to identify third-party moving expense incurred for employees.

Non-Statutory Stock Options

Use to identify non-statutory stock options.

None Use when none of the other options apply.

Other Reimbursed Expenses

Use if the specific expense is not listed as a separate option.

Puerto Rico Commissions YTD

Use if earnings will be strictly used for recording commissions earned in Puerto Rico.

Qualified Transportation YTD

Use to identify a qualified transportation expense such as parking fees.

Severance Pay Use to identify severance or dismissal pay provided to employees.

Sick Pay Paid by a Third Party

Use to identify sick pay (taxable or non-taxable) earnings paid by a third-party payer.

Sick Pay Paid by the Employer

Use to identify sick pay provided for absence caused from personal injury or illness. Do not use for payments made by a third-party payer.

Taxable Fringe Benefit YTD

Use when the earnings is considered a taxable fringe benefit.

Taxable Fringe Benefit YTD

Use when the earnings is considered a taxable fringe benefit.



Setting Up the Taxing Options

To define taxing options, do the following:

1. Click the Taxing Options tab.

When adding a new taxing option, you must first start on the Basic Data panel. See page 2-6 for more information.

Figure 2-4. Taxing Options Panel

2. Select the Add to Gross Pay check box if an employee will be receiving actual dollars for this earnings type.

For example, regular pay adds to gross pay. If this earnings type is hours-related and this option is turned on, the hours paid for this earnings type add to the employees total hours. Clear this check box if this earnings type has no payroll effect (for example, meal allowance). In this case, dollar balances are maintained (if the Maintain Earnings Balances check box is selected), but it is not included in the gross pay calculation. Hours balances also are maintained (if the Maintain Earnings Balances check box is selected), but the hours are not added to the employees total hours.

3. Select the Maintain Earnings Balances check box to instruct Enterprise Payroll to automatically maintain year-to-date, quarter-to-date, and month-to-date earnings balances.

4. Select the Subtract from this Draw check box for your information only as a reminder that you want the earnings to subtract from the draw.

5. Select the Eligible for Shift Differential check box if the earnings type is used for shift pay.




6. Select the Hours Only (Reduce from Regular Pay) check box if the hours or earnings entered for that earnings type should reduce the employees regular pay by an equivalent number of hours entered on the paysheets. This check box is typically used for earnings types like holiday, sick leave, and vacation leave.

7. Select the Add to Statistical Hours for GL check box if earnings type is used when gathering statistical (worked) hours during the general ledger build process.

8. Select the Include Earnings in Avg Rate check box if you want Enterprise Payroll to inclu

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