Entering Interim Payments for Bonus, Back Pay, and Cash Out Payments
In addition to standard time entry, you can create bonus, back pay, and cash out payments using the Interim Payment Workbench (P07210I). When you enter an interim payment, you can specify on the Payment Overrides tab of the Interim Entry form whether the payment is a bonus, back pay, or cash out payment.
When you enter bonus, back pay, or cash out payments using the Interim Payment Workbench, you can override the employee's standard normal wages for the override period. When you enter an override amount, the system does not calculate the employee's actual earnings and taxes paid during the time period. Instead, the system uses this amount as the amount earned during the time period, and calculates the amount of taxes that should have been withheld on this override amount. The system uses these amounts instead of the actual earnings and actual taxes paid when determining the tax amount for the interim payment.
When you enter a back payment that includes timecards with dates in the current fiscal year, the system ignores the Value that you enter in the Override Period Normal Wages field when calculating the tax liability on any amounts in the current fiscal year. The system does use the override value to calculate the tax for all other amounts that are associated with the payment. The system displays a warning message when this occurs.
Additionally, when you enter a standard interim payment, you can search for an employee's existing timecards and attach them to the interim payment. However, when you enter a bonus, back pay, or cash out interim payment, you can view and attach to the interim only those timecards that match the interim payment type. For example, if you are entering a back pay interim payment, when you search for existing timecards, the system displays and will allow you to attach to the interim only those timecards that have a back pay pay type, or that have the Back Pay Flag selected. Similarly, when you enter a cash out interim payment, you can attach only those timecards that include a cash out pay type.