42 Overview to Interim Checks

This chapter contains these topics:

42.1 Objectives

  • To process payments outside the normal payroll cycle

  • To understand the different ways you can process interim payments

42.2 About Interim Checks

An interim check is any check that you prepare outside the normal payroll cycle, such as a bonus check, advance pay, a termination check, or vacation pay.

For Canadian payroll, you can enter interim checks at any time, but you must process them through a regular payroll cycle.

Interim checks consists of:

  • Entering interim checks

  • Printing interim checks

  • Updating interim checks

When you enter an interim check, you can use existing timecard records or enter new timecard information specifically relating to the current interim check. The system uses these time entry records to calculate the gross pay, taxes, DBAs, and net pay amount for processing a mini pre-payroll for each check.

Entering interim checks includes:

  • Entering check parameters

  • Entering time or using previously entered timecard information

  • Calculating all check details, including earnings, taxes, DBAs, and net pay

The system can calculate interim checks interactively. When you use interactive processing, the system displays the detail for each check one at a time as shown in the following graphic.

You can enter interim checks interactively. When you use interactive processing, the system displays the detail for each check one at a time.

Alternatively, you can enter several checks at a time and the system calculates all the checks as a batch job.

Alternatively, as shown in the following graphic, you can enter several checks at a time and the system calculates all the checks as a batch job.

The system generates a Payroll Register for both interactive and batch processing. The system stores all tax and DBA calculations for interim checks in workfiles to process later during a payroll cycle. Processing interim checks in a payroll cycle creates journal entries and updates history.

42.2.1 When Can You Print and Update Interim Checks?

You can print interim checks either by the computer or manually as a handwritten or typed check.

You can process interim computer checks in a payroll cycle or separately. When you print interim checks separately, you shorten processing time for checks that must meet deadlines, such as travel advances or termination checks.

When you update interim checks, the system:

  • Creates journal entries

  • Prints payroll cycle reports

  • Updates history

The Payroll system provides alternatives for printing and updating interim checks:

Alternative Description
Running a regular payroll cycle that includes interim checks When you run a regular payroll cycle that includes interim checks, the system prints the interim checks along with the payroll checks. The system also prints the payroll cycle reports that include interim check information.
Running a payroll cycle for interim checks only When you run a payroll cycle for interim checks only, the cycle includes printing of interim checks. You can print payroll cycle reports for the interim check information. If your organization processes a high volume of interim checks, this alternative might save you time and be more efficient.
Printing interactively and updating with the next payroll cycle When you print interactively and update with the next regular payroll cycle, you can distribute checks quickly and update the information at a later time. The payroll cycle reports include interim check information along with regular check information.
Printing and updating interactively When you print and update interim checks interactively, you can select which checks to process. This alternative provides for immediate updating of interim checks without locking employee records for an entire payroll cycle.

42.2.2 What Are the Purposes of Interim Checks?

You can use interim checks for the following:

Task Description
Calculate gross to net from timecards You can calculate earnings, tax, and deduction detail. You can the use the resulting calculations in one of these four ways:

  • Save/No Check - To display the resulting check information and save it but write the check manually. You might use this method to create an interim check for a termination.

  • Save/Print Check - To display the resulting check information, save it, and print a computer check. For example to create a bonus check where you enter the information in advance and print the check during the next payroll cycle.

  • Display/Advance - To display the resulting check information in detail but save only the net amount as an advance. The system treats the advance as a deduction. When you process the next normal pay period, the system reduces the employee's gross pay for this amount. For example, you can create an interim check to pay an employee an advance on earnings-to-date.

  • Display Only - To display the resulting check information but not retain it. For example, for "what if" calculations. Note, however, that the JD Edwards World Tax Calculator is designed to calculate tax amounts, so you might prefer to use that selection from the Interim Checks and Special Post menu (G0721).
Enter information from manual checks (typed or handwritten) You can enter information from typed or handwritten manual checks, including earnings, tax, and deduction details. The system creates journal entries and merges this information into history when you complete the next payroll cycle.
Adjust historical data for an employee You can adjust historical data for an employee, for example, if an employee was taxed incorrectly. This interim check process provides an audit trail for future reference.
Enter a flat dollar advance on pay You can treat an advance as a flat dollar deduction to be subtracted from gross pay during normal payroll processing.
Convert payroll history You can use interim checks to load historical data for conversion purposes and provide an audit trail for future reference.