2 Understanding U.S. Payroll Processing

This chapter contains the following topics:

2.1 Understanding U.S. Payroll

With JD Edwards EnterpriseOne U.S. Payroll, you can design the system to meet the organization's specific requirements. You can define and establish earnings, deductions, taxes, and processes that fit the unique business needs. The system enables you to calculate gross-to-net or net-to-gross pay, leave accruals, and government-regulated tax information.

The U.S. Payroll process includes these steps:

  1. Pre-payroll processing

  2. Print payments

  3. Journal entries

  4. Payroll reports

  5. Final update

To process employees in the U.S. through a payroll cycle, you must complete all of these steps. Before you set up or process payroll information for employees in the U.S., you should have a thorough understanding of basic payroll processing. This implementation guide discusses only those steps, features, and processes that are specific to processing payroll for employees in the U.S., and it is intended to supplement the JD Edwards EnterpriseOne Payroll implementation guide.

2.2 Features of U.S. Payroll Processing

To correctly update payroll records for employees in the U.S., you must process those employees through a complete payroll cycle. Though the steps of the payroll cycle are the same for all supported countries, there are additional steps, features, and procedures that you can use to process country-specific information for employees in the U.S. This table lists country-specific processes for the U.S.:

Process Description
Prevailing Wages The system includes features that enable you to process Prevailing Wages for companies in states where the Davis Bacon Act is applicable.

This feature allows you to compare the actual wages of your employees per job type, to specific fringe values. These calculations will transport into the pre payroll calculations

Printing Payments If you print and distribute payments internally, you must set up automatic deposit information that is specific to the U.S.
Payroll Reporting In addition to the basic payroll cycle reports that are available for all supported countries, you can create additional, country-specific reports for the U.S. to assist you with analyzing payroll data.
ADP Integration If the organization processes payroll for employees in the U.S., you can integrate with ADP and have ADP perform these payroll functions:
  • Report quarterly tax information to government entities.

  • Report year-end tax information to government entities.

Tax History, Reporting, and Integrity The system uses tax tables that are specific to the U.S. to store and process employee payroll tax information. Additionally, the system provides country-specific tax reports that enable you to analyze and balance tax information and report it to the appropriate government entities.

The system also provides programs to verify the integrity of the payroll tax history and update it if necessary.

Interim Payments When you enter interim payments for employees in the U.S., the system enables you to enter country-specific tax overrides for payments.
State Unemployment Insurance (SUI) Reporting The system includes state-specific programs for each state to which the organization might need to report SUI information. Each program is designed to meet the requirements of the specified state.
New Hire Reporting The system includes state-specific programs for each state to which the organization might need to report new hire information. Each program is designed to meet the requirements of the specified state.
Worker's Compensation Regulations The system includes features that enable you to report Worker's Compensation information and also supports these processes:
  • Washington State Industrial Insurance Reporting

  • Wyoming Worker's Compensation Reporting