Purposes of Interim Payments

This table explains some typical purposes of interim payments:

Purpose	Description
Enter a flat-amount advance on pay.	You can create a flat-amount advance payment for an employee.
Enter a calculated advance on pay.	Calculated advances are used to advance an entire paycheck to an employee or to advance pay for a certain number of hours that an employee might already have worked. You create a calculated advance interim to pay an employee his or her net pay amount in advance.
Enter a bonus payment.	Many employers make bonus payments to employees and do not want these payments included with the employees' regular paychecks. Processing bonus payments with regular payroll payments might cause voluntary deductions such as medical insurance premiums, retirement plan elections, and charitable contributions to be withheld from these bonus payments. You can use the interim process to specify that, other than taxes, no deductions are to be withheld from the payment. You can also use the interim process to specify that you want to create printed checks regardless of whether employees have automatic deposit instructions. This might be useful if you want to distribute bonus checks in person (for example, during a company meeting).
Enter a termination payment.	When an employee is terminated, most states require that the final paycheck be disbursed within a specified amount of time. Many companies generate a final paycheck immediately when the termination is involuntary. Timecards can be entered during the interim process to account for severance pay and vacation or sick leave pay that an employee has earned, and current timecards that would normally be processed during the next regular payroll cycle can be used to generate the termination paycheck. Using the Interim Payment Workbench, you can print the payment immediately, and then process the interim payment through the next regular payroll cycle to create reports and journal entries, and to update employee payroll history. You can also generate a printed check regardless of whether the employee is set up to receive payroll payments as automatic deposits.
Enter information from manual payments (typed or handwritten).	You can enter information from typed or handwritten manual payments, including earnings, tax, and deduction details. The system creates journal entries and merges this information into payroll history when the interim is processed through a payroll cycle.
Adjust historical data for an employee.	You can adjust historical data for an employee. Using interim payments to adjust historical data enables you to enter negative payments into the system and provides an audit trail for future reference. The system does not generate a printed payment if you specify that it not do so.
Convert payroll history.	You can use interim payments to load historical data for all employees who are involved in a midyear conversion to JD Edwards EnterpriseOne software. To update the history records for employees who are converting midyear, you can use the interim process to enter a one-time payment of year-to-date amounts. Doing so correctly updates the history files in the JD Edwards EnterpriseOne Payroll system and provides an audit trail for future reference, without creating payments for the employees. See Converting Payroll History.
Calculate gross-up amounts.	The gross-up process enables you to enter a desired net amount for an employee and have the system calculate the gross amount for the payment to cover taxes and achieve the desired net amount. You can also create gross-up payments for individual employees or for a group of employees.
Reissue payment of a voided paycheck.	If a payment that was created during the regular payroll cycle is incorrect after it has been processed through final update, you can void the payment and generate a corrected payment using interim processing. You would process this interim payment through a full payroll cycle to ensure that the corrected information is updated in historical records.

Regardless of the purpose for creating an interim payment, you can generate the interim payment using these methods:

Method	Description
Computer	The system performs the tax and earnings calculations and generates the bank file or printed payment.
Hand Manual	The payment is calculated manually and typed or written outside of the JD Edwards EnterpriseOne Payroll system. The amounts on the manual interim are then entered into the system and processed through a payroll cycle to update history and create appropriate accounting entries. The system does not print manual payments.
Auto Manual	The system calculates the payment using the data in the system (deduction amounts and tax history determine the appropriate amounts to withhold from the payment), and the payment can be typed or manually written outside of the system. The interim is then processed through a payroll cycle to update history and create appropriate accounting entries. The system does not print manual payments.