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InterMicro Oklahoma office has moved
- Join us for an
Open House
Please join us for an Open House
at our new location.
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Tuesday, February 8, 2011
4:00 pm – 6:00 pm
Refreshments will be served
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New
Address:
1701 Signal Ridge Dr. Suite 110
Edmond, OK 73013
Same Phone: (405) 359-5887
New Fax: (888) 501-1061
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Getting through
Payroll
The year is
finished and now you must get additional information
onto the W2’s. Things like GTLI (The cost of life
insurance policies paid by the company that are
greater than $50,000), Auto Usage, Owner’s Medical
Insurance, Third Party Sick Pay, and Employer HSA
amounts.
While most of
these additions can be added to the last payroll
processed for the year sometimes the information is
not known until after the last Payroll Run of the
year has been processed.
Through ‘Manual
Checks’ these amounts can be added to the taxable
earnings of employees and all applicable taxes can
be deducted.
Setting up
Earnings Codes GTL (Life Insurance), CAR (Auto
Usage), OMI (Owner’s medical insurance), and SIC
(Third Party Sick Pay). Since the Employer Portion
of HSA is not an earning this will get onto the
employee’s W2 through an ‘Employer Deduction’.
Set up these
earning codes as “Fringe Benefits”, and do NOT
include these amounts in Net Pay. When a deduction
is set up as a fringe benefit there is no General
Ledger Expense Posting, so if you want to show any
of these amounts in separate General Ledger Accounts
you will make manual General Ledger transaction
entries.
GTLI and Auto
Usage increase Federal, State, Social Security,
Medicare, and Local Wages. If this is a separate
Payroll run in order to have the employee actually
have the taxes withheld from the paycheck you must
increase the total wages in this manual check by the
amounts of Social Security, Medicare and Local taxes
that need to be withheld. For example if the GTLI or
Auto amount is $1000 this would generate a Social
Security employee liability of $62.00, a Medicare
Liability of $14.50, and a Local Tax at 1% of
$10.00. You would enter the GTL or CAR amount as
$1000 and you would enter REG or SAL for the sum of
the taxes to be withheld ($86.50). This will
increase the Employee’s wages by $1086.50 and the
$86.50 will be used to cover the taxes that were
required to be withheld.
The OMI (Owners
Medical Insurance) is also set up as a fringe
benefit, not included in net pay but in addition
excluded from Social Security and Medicare. (Local
Taxes generally apply)
The Employer HSA
is set up as an Employer Deduction and marked as Tax
Deferred. You will manually enter this deduction
into each Employee’s Deduction Screen and enter the
amount that the Company contributed to the plan.
Third Party Sic
Pay can be manually added to the Employee History.
Remember to include taxes the Employee paid.
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Tax Changes for 2011
Please note that
the EMPLOYEE portion of Social Security (OASDI) has
been reduced for 2011 by 2%. The EMPLOYER portion
has NOT been reduced. This change came about after
the Year End Tax Update was released by OSI.
You will need to
manually make this change yourself before you run
your first Payroll of 2011. The Federal Tax Tables
will also need to be changed manually. These have
been mailed to you if you are current on CES. If you
are not current please contact us if you need help
in charging these tables.
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Physical Inventory
To perform a
Physical Inventory and update the balances of items:
* Complete
all transactions involving Inventory Items by
posting all Purchases and Sales.
* Prepare
the Inventory Batch for all Locations and Items that
will be counted
* Freeze
the batch and print either the worksheets or the
tags for employees to enter the physical counts on.
* Once
the Batch is frozen there should be no activity in
the warehouse until the physical inventory is
updated through the Physical Inventory function, but
you can continue to process transactions during this
time.
* Once
the items have been counted enter the counts under
the Physical Counts Worksheet Entry.
* Run
Variance and Valuation Reports, backup your data,
and Update Perpetual Inventory.
Once updated run
the Valuation Report and file with your Year End
papers.
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Accuwage 2010
is Available
This FREE
software is now available from the Social Security
Administration.
This software
allows you to test your W2 Magnetic Media
Submissions for the year 2010 for any errors before
you submit it to the Social Security Administration
and your State submission if your state is accepts
the Federal standards.
To download the
2010 Accuprint software go to:
www.ssa.gov/employer/accuwage
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**Stop
and Double Check**
During the transition between 2011 and 2010 ALWAYS
double check yourself in Payroll and General Ledger
in the lower right hand side to insure that you are
in the correct year.
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Some “Just in Case” Reports
We all know that
we can always go back and print certain reports such
as Aged Trial Balances in Accounts Payable and
Accounts Receivable at anytime as long as the ‘Paid
Open Invoices’ have not been purged.
We all also know
that sometimes things ‘happen’. It is an excellent
idea to print (or print to file) the Open Invoice
Reports with Dates extended out a couple of years,
and the Aged Trial Balance printed (or printed to
file) for the Period Ending 12/31/10.
Once generated go
to the General Ledger Journal Activity for these
particular accounts (Accounts Receivable and
Accounts Payable) and compare the year end balances
(posted and un-posted) to these reports.
In theory these
reports will match your General Ledger year end
amounts. Now, if something happens such as someone
accidently purging Paid Invoices or items being
posted to the wrong year and manually corrected you
will have these reports that are ‘a picture at year
end’ and you can rebuild and back into any figures
that may be skewed due to manual adjustments.
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Postings To
The Wrong Year
Sometimes no
matter how careful you are you do accidently post a
batch of Accounts Receivable, Accounts Payable, Bank
Reconciliation, Inventory, or General Ledger
Transactions to the wrong year. How is the best way
to correct these ‘wrong year’ postings?
Accounts Payable Checks:
Using the Void
Check function void these checks to the wrong year
that you originally posted them to. When posted go
to Hold/Release and Pre-Pay these invoices with the
check you paid them with and the correct date.
Prepare payments and post. Instead of Pre-paying
these checks you can also do another check run and
re-print the checks and post to the correct year.
Accounts Payable Transactions:
To completely
reverse invoices posted to the wrong year enter a
Miscellaneous Debit Memo for each of these and post
to the incorrect year. Then enter these invoices
again and post to the proper year. You can take the
short cut of reversing these AP posted invoices in
the wrong year through General Ledger Transactions.
This will correct the General Ledger but the
invoices will still be posted to the AP history for
the incorrect year.
Bank Reconciliation:
It is best to
reverse these transactions with a negative sign in
front of the figures so that they will line up
together in the bank reconciliation so that you can
tag both that net to zero. Then enter and post to
the correct year.
Inventory:
Because of the
Valuation Report at Year End if you posted anything
to the incorrect year it is best to reverse these
entries to the wrong year and re-enter to the
correct year.
General Ledger Transactions:
If these
transactions are not ’Posted to the Master’ you can
use the Edit Transactions in the incorrect year to
zero out the dollar amounts, or you can reverse the
transactions. Then switch to the correct year and
re-enter the transactions.
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Contact Us
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Eastern Regional Office:
5 Davis Keats Drive
Greenville, SC 29607
(864) 676-2160
(864) 676-2161 fax
info@intermicro.com |
Central Regional Office:
2700 Morrison Trail
Edmond, OK 73012
(405) 359-5887
(405) 359-9088 fax
info@intermicro.com |
