Processing U.S. Payroll Cycle Information

This chapter provides an overview of U.S. payroll setup and discusses how to:

Process U.S. payment information.
Review country-specific payroll cycle reports.
Enter tax overrides for an interim payment.

Understanding U.S. Payroll Setup

To process payroll for employees in the U.S., you must set up the information in this chapter and also set up all basic payroll information. The information in this chapter discusses only the country-specific setup tasks that you must complete. All other setup tasks are discussed in the JD Edwards EnterpriseOne Payroll 8.12 implementation guide.

Processing U.S. Payment Information

This section provides an overview of the payment process, lists prerequisites, and discusses how to create the flat file for automatic deposits.

Understanding U.S. Payments

After you process employees through pre-payroll, you can print payments for those employees. JD Edwards EnterpriseOne Payroll enables you to create these types of payment information:

Paychecks.
Payment advice slips for employees who receive automatic deposits.
Automatic deposit flat files to send to the banking institution.

Flat File for Automatic Deposits

When you print payments for a payroll cycle that includes at least one employee who receives payment through a direct deposit, you must create an automatic deposit bank file. Using the Create Auto Deposit Tape File program (R07235), the system automatically creates the flat file for automatic deposits. The flat file provides the bank with information from the system that the bank must have to process the automatic deposits.

The flat file that the system creates is named PayACH and is stored in the export folder. Using a text editor, review the PayACH file to verify that the information is correct and complete. If errors occur when you create the file, you can recreate it as many times as necessary until you begin the next payroll cycle, at which point the new information overrides the information in the existing file.

If the file contains errors, delete it and then recreate the file. Otherwise, copy the file to the appropriate media (such as diskette or magnetic tape) and send it to the bank. Consult the system administrator for assistance with this task.

The PayACH file contains five record types, which comply with the requirements of the National Automated Clearing House Association (NACHA). This table describes each record type that is contained in the flat file:

Record	Description
Record 1: File Header record	This record contains the file header information, including the origin and the intended destination of the file.
Record 5: Company/Batch Header record	This record contains detailed information about the company and the auto deposit batch.
Record 6: Employee Entry Detail record	This record contains detailed information about employee bank account numbers, employee identification numbers, names, and deposit amounts.
Record 8: Company Batch Control record	This record contains the monetary amount totals for each company in the batch.
Record 9: File Control record	This record contains the totals for the entire flat file.

Note. The file that you create complies with the requirements of the NACHA. Because standards might vary by bank or region, verify the automated clearing house requirements with the bank.

The processing options for the Create Auto Deposit Tape File program (R07235) enable you to add information organization-specific to the flat file. Do not add other information to the flat file. Including additional information in the flat file requires system customization.

Prerequisites

Before you complete the tasks in this section:

Verify that the export folder exists, where package name is the name of the software environment and release (for example, PROD733). If the export folder does not exist, you must create it. Contact the system administrator or technical support for assistance with this task.
Set up the conversion table that supports Unicode processing.

See JD Edwards EnterpriseOne Tools 8.96 Interoperability Guide
Review the processing options for the Create Auto Deposit Tape File program (R07235), and set up payment types to use the correct payment programs.

See Setting Up Payment Information.
Process pre-payroll.

See Processing Pre-Payroll.

Forms Used to Create the Flat File for Automatic Deposits

Form Name	FormID	Navigation	Usage
Work With Pay Cycle Workbench	W07210A	Payroll Workbench menu (G07BUSP11), Pay Cycle Workbench	Access the payroll ID for which you want to create the flat file.
Print Payments	W07230A	On the Work With Pay Cycle Workbench form, select the payroll ID, and then select Payments, Print Payments from the Row menu.	Create the flat file for automatic deposits.

Creating the Flat File for Automatic Deposits

Access the Print Payments form.

Reviewing Country-Specific Payroll Cycle Reports

This section provides an overview of U.S. payroll reports and discusses how to:

Set processing options for the Employee Social Security Register (R073665).
Set processing options for the Workers' Compensation Register (R073601).
Set processing options for the General Liability Insurance Register (R073651).

Understanding U.S. Payroll Reports

During the payroll cycle, you can print reports from the Payroll Workbench. These reports include data for the payroll ID that you select when you process the reports. In addition to the reports that are available for the U.S., there are other reports that can be processed for all supported countries.

Reviewing the Federal Tax Distribution Summary Report (R073170)

You use the information on the Federal Tax Distribution Summary report (R073170) to determine the federal tax burden for a payroll cycle. Generating this report during pre-payroll enables you to promptly submit federal taxes. The report lists totals of taxable wages and federal tax amounts for the current period and for month-to-date. It also lists tax amounts by company for quarter-to-date and year-to-date.

You can generate this report during a payroll cycle only. You cannot generate reports from the Report Setup form.

Reviewing the State Tax Distribution Summary Report (R073162)

You use the information on the State Tax Distribution Summary report (R073162) to determine the state tax burden for this payroll cycle. The State Tax Distribution Summary report lists totals of taxable wages and state tax amounts for the current period and month-to-date. It also lists tax amounts by company for quarter-to-date and year-to-date.

You can generate this report during a payroll cycle only. You cannot generate reports from the Report Setup form.

Reviewing Social Security and Medicare Register Reports (R073665)

The Employee Social Security Register program (R073665) produces reports that list the employee and employer portions of taxes withheld for Social Security tax and Medicare. You can generate these reports during a payroll cycle only. You cannot generate reports from the Report Setup form. This table describes each report that is created when you run the Employee Social Security Register program:

Report	Description
Employee Social Security Register	This report lists the employee-paid portion of Social Security taxes. It includes this information: Social Security number. Current wages. Any excludable wages or amounts paid in excess. Taxable wages. FICA rates. Current tax amounts for the employee portion of Social Security taxes.
Employer Social Security Register	This report lists the employer-paid portion of Social Security taxes. It includes this information: Social Security number. Current wages. Any excludable wages or amounts paid in excess. Taxable wages. FICA rates. Current tax amounts for the employer portion of Social Security taxes.
Employee Medicare Register	This report lists the employee-paid portion of Medicare taxes. It includes this information: Current and taxable wages. Medicare rates. Current tax amounts for the employee portion of Medicare taxes.
Employer Medicare Register	This report lists the employer-paid portion of Medicare taxes. It includes this information: Current and taxable wages. Medicare rates. Current tax amounts for the employer portion of Medicare taxes.

Reviewing the Workers Compensation Register Report (R073601)

You can generate the Workers' Compensation Register report (R073601) to review the rates paid by the company per employee for workers' compensation insurance. The rates that an employer pays for workers' compensation insurance vary by job type. In some cases, employees, rather than employers, might be required to pay workers' compensation premiums. In such situations, the reports contain the employee-paid amounts.

The report includes:

Employee listing by company.
Employee hours and gross wages.
Employee job type and job step.
Excludable and overtime wages.
Premium amounts for each employee.
Totals for each work state and company.
Grand totals for the report.

You can generate the report in either of these formats:

Detailed report, which includes each line of time entry.
Summary report, which consolidates the information by employee, company, tax area, workers' compensation code, job type, and job step.

The information provided in the Workers' Compensation Register report is based on the Employee Transaction History table (F0618).

You can generate this report during a payroll cycle only. You cannot generate reports from the Report Setup form.

Reviewing the General Liability Insurance Register Report

You can generate the General Liability Insurance Register report (R073651) to review the rates paid by the company per employee for general liability insurance. The employer pays one standard rate for general liability insurance for each employee. The General Liability Insurance Register report is identical to the Workers' Compensation Register report, except for the actual amounts that appear in the Workers' Compensation Amount field. The system bases the totals on the general liability rate.

The information provided in this report is based on the Employee Transaction History table (F0618).

You can generate this report during a payroll cycle only. You cannot generate reports from the Report Setup form.

Setting Processing Options for the Employee Social Security Register (R073665)

Processing options enable you to specify the default processing for programs and reports.

For programs, you can specify options such as the default values for specific transactions, the availability of fields on a form, and the version of the program that you want to run.

For reports, processing options enable you to specify the information that appears on reports. For example, you set a processing option to include the fiscal year or the number of aging days on a report.

Do not modify JD Edwards EnterpriseOne demo versions, which are identified by the prefix ZJDE or XJDE. Copy these versions or create new versions to change any values, including the version number, version title, prompting options, security, and processing options.

Defaults

Although processing options are set up during JD Edwards EnterpriseOne implementation, you can change processing options each time that you run a program.

1. Enter the FICA Maximum Wage Base

Use this processing option to specify the FICA maximum wage base that applies to the Employee and Employer FICA Register.

Setting Processing Options for the Worker's Compensation Register (R073601)

Processing options enable you to specify the default processing for programs and reports.

Employee

1. Select the employee number to print.

Use this processing option to specify the employee number that the system prints on the report. Values are:

1: Address Book number

2: Social Security number

3: Third employee number

Setting Processing Options for the General Liability Insurance Register (R073651)

Processing options enable you to specify the default processing for programs and reports.

General

Select the Employee number to Print.

Use this processing option to specify the employee number that the system prints on the report. Values are:

1: Address Book number

2: Social Security number

3: Third employee number

Entering Tax Overrides for an Interim Payment

This section provides an overview of interim payment tax overrides and discusses how to enter tax overrides for interim payments.

Understanding Interim Payment Tax Overrides

When you enter interim payments, you can override employee tax information so that the interim payment includes the amounts that you want to appear on the payment. You can override tax information on the Interim Entry form, or you can access the employee's current tax exemption and credit information from the Interim Workbench and override that information to calculate the interim payment.

Note. When you override tax information from the Interims Workbench, the employee's permanent tax information does not change. The overridden information is used only for the calculation of the interim payment that you are entering for the employee.

Also, if you are using the batch method to process interim payments, you must enter tax overrides using the Tax Overrides option from the Form menu, because the tax tabs on the Interim Entry form are disabled for batch processing.

Note. You cannot override state unemployment insurance rates on an interim payment. If you want the state unemployment insurance rate (tax type C) to calculate at a rate different than the Federal rate, you must set up records for tax type C at the state level using the Unemployment Insurance Rate Revisions program (P079221). However, if you calculated state unemployment insurance on past employee payments using the wrong rate, you can enter adjustment interim payments to correct those amounts.

See Setting Up Unemployment Insurance Information.

To enter tax overrides, you must first complete the initial steps to enter an interim payment.

See Working with Interim Payments.

Forms Used to Enter Tax Overrides for Interim Payments

Form Name	FormID	Navigation	Usage
Work With Interims Workbench	W07210IA	Payroll Workbench (G07BUSP11), Interim Payment Workbench	Select the interim ID that includes the relevant interim payment.
Work With Interim Payments	W07350IA	On the Work With Interims Workbench form, select a record in the detail area and then select Review/Revise Int from the Row menu.	Select the interim payment.
Interim Entry	W070701E	On the Work With Interim Payments form, select a record and then click Select.	Enter tax overrides for an interim payment.

Entering Tax Overrides for Interim Payments

Access the Interim Entry form. Select the US Exemptions/Credits tab.

You can enter up to four tax overrides on the US Exemptions/Credits tab. To enter additional tax overrides for the interim payment, select Tax Overrides from the Form menu.

If you are using batch processing to enter interim payments, on Work With Interims Workbench, select the interim ID in the detail area, select Process Interims from the Row menu, and then select Process Single.

If you are running multiple versions of the Interim Calculation program, select Process Interims from the Row menu and then select Process Multiple.