Time, Billing and Accounting FAQ
Table of Contents
- Time & Billing
- Accounts Payable
- General Ledger
- Trust Accounting
- Payroll
- Bank Reconciliation Troubleshooting
Payroll Processing
- What is the default time ticket type on the time ticket input screen?
- What is the deduction code type GTL used
for?
- Under tax status in relation to deduction codes,
what does annuity mean?
- How do I withhold additional
Federal Withholding dollars from an employee's check each pay period?
- What do the vacation and sick accrual rates
do on the employee profile?
- How do I calculate the vacation and
sick rates?
- How do I process a bonus run on the payroll
system?
- How can I set the number of hours in
a pay period (we work 37.5 hours, not 40)?
- If I already processed my payroll
but have not yet cut the checks, can I change the gross amount and have the
system recalculate all tax figures etc?
- Can I give an employee a report that has only
their information in regards to all payroll activity?
- Where do I get the state unemployment
rate and how often does this change?
- What happens if I void a payroll check?
- What is the "Supplemental"
marital status for federal withholding?
- What happens if someone quits or is fired, should
I delete them?
- Can I have a zero dollar pay check?
- How do I determine my tax liability for
any pay period?
- Do I need to make a General Ledger entry for the matching portion of Social Security and Medicare?
- What do I do in AbacusLaw if I make my tax
deposit by telephone or electronically?
- Why are there 10 salary expense accounts
on the default chart of account screen?
- How do I keep track of used vacation and
sick hours?
What is the default time ticket type on the time ticket input screen?
The default is the last type of time ticket you used. It is remembered from
one ticket entered to the next.
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What is the deduction code type GTL used for?
The deduction code GTL stands for Group Term Life. If a firm pays for life
insurance for an individual in the amount of $50,000 or more, the individual
must report the dollar amount (as computed in the tables provided by the Internal
Revenue Service) as wages on their W-2, in boxes 1, 3, 5, & 13. In essence,
GTL is not a deduction, but actually added to wages. GTL's are considered an
annuity, which means federal withholding is not owed on the dollar amount as
computed by the IRS. Social security and Medicare taxes are due.
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Under tax status in relation to deduction codes, what does annuity mean?
A deduction that is coded as an annuity will be taxed for social security and
Medicare taxes. However, no federal or state withholding will be taxed on the
amount of the deduction.
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How do I withhold additional Federal Withholding dollars from an employee's
check each pay period?
When filling in the information on the employee profile, if an employee wants more money deducted each pay period for F ederal W ithholding, go to the "Tax Information" tab. In the box below "Additional Withholding" enter the ADDITIONAL amount. When processing payroll, the additional amount will be combined with the regular deduction in the Federal Withholding tax box.
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What do the vacation and sick accrual rates do on the employee profile?
If you want to keep track of vacation and sick time that the employees have "earned" during the course of the year, these rates must be calculated. The rates entered on the employee profile represent the number of hours accrued per pay period. The time accrued per employee will appear in the " Details " of payroll processing or you can also find the hours on the YTD Hours tab on the employee profile.
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How do I calculate the vacation and sick rates?
To calculate the accrual rate for vacation and sick time, take the number of hours the employee is eligible for and divide by the number of pay periods. For example, let's say an employee is eligible for 2 weeks vacation and they are paid biweekly. Your calculation would be 80 (hours) divided by 26 (pay periods), or 3.07 hours per pay period. This numerical value is then entered on the Employee Profile.
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How do I process a bonus run on the payroll system?
To process a bonus payroll run, simply click on Process Payroll under the Payroll option, and then "Add". You will then choose the particular employees for the run. After highlighting the employees, ( and you do this by holding down the Control key) click on the box marked "Bonus Payroll Run", then click "OK". You will have to modify each employee's gross regular amount to the bonus amount. After doing this, be sure to click the "Recalculate Tax Button". This will correctly calculate taxes for the amount of the bonus. A Bonus Run only deducts local, state and federal taxes, not the deductions that have been setup under Deduction Codes.
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How can I set the number of hours in a pay period (we work 37.5 hours, not
40)?
Under the Payroll menu option, choose Process Payroll, then Add. Choose the
appropriate employees and fill in the Default Work Hours. The system will remember
the hours from one payroll to the next.
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If I already processed my payroll but have not yet cut the checks, can I change
the gross amount and have the system recalculate all tax figures etc?
Yes. After the user has chosen which individuals are to be paid, you may modify any particular person, changing hours, gross, sick/vacation time, etc. Simply highlight the employee and go into the Details. Change whatever is necessary. Then click on the Recalculate Taxes button. It is inadvisable to change the amounts in the social security and Medicare fields. The program will recalculate to the correct amount.
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Can I give an employee a report that has only their information in regards
to all payroll activity?
Yes. You have the choice of the printout of the Employee Profile, the Employee Payroll Summary report, or the Payroll Register ( this report is also called Employee Payroll Activity) , by specific employee. Any of these will give you year-to-date payroll information.
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Where do I get the state unemployment rate and how often does this change?
You need to set up an account with your Department of Labor in the capital city of your state. Each firm can differ in their rates, based on past turnover ratio of employees. These rates generally change on an annual basis. Please contact your Dept. of Labor with your account number to receive information regarding your individual rate.
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What happens if I void a payroll check?
To void a payroll check , simply go to the Payroll menu option and click on Void Payroll Check. Type in the Chart of Account number for the checking account the check was drawn on and then the check number. When a payroll check is voided, AbacusLaw automatically removes the entry from the Employee Payroll Activity or Payroll Register . Since the entry is removed, all tax reports, including the W-2 will be calculated without the voided check. AbacusLaw will automatically post the journal entries needed in the general ledger.
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What is the "Supplemental" marital status for federal withholding?
In the Employee Profile, on the Tax Information tab, you will find the Federal
Marital Status. Choose either single, married, exempt or supplemental.
Supplemental will calculate your federal withholding at a straight 28%.
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What happens if someone quits or is fired, should I delete them?
If an employee is terminated, do not delete them. Simply go into the employee's
profile and fill in the termination date. This will keep the employee from coming
up for future payrolls, but also allow you to include them on all relative tax
reports and print the year-end W-2.
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Can I have a zero dollar pay check?
Yes. It is a popular practice near year-end to write checks to cover benefits,
netting in a zero balance. AbacusLaw allows this to happen, although you will not
print the $0.00 check.
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How do I determine my tax liability for any pay period?
Under the Payroll option, choose Payroll Reports. Next, choose the Firm Payroll
Summary report. Enter the date frame covered by the payroll and choose the "All"
employees option. You may then print a report that will give you the total tax
liability for the named time frame. The social security and Medicare amounts
have already been doubled for you.
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Do I need to make a General Ledger entry for the matching portion of Social Security and Medicare?
No. AbacusLaw automatically calculates the matching portion for you. It is posted to the general ledger at the same time you print your payroll checks.
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What do I do in AbacusLaw if I make my tax deposit by telephone or electronically?
You will still printout the Firm Payroll Summary report, found in Payroll Reports.
You will then do a journal entry under Post Journal Entries, calling the entry
a Cash Disbursement. You will debit the liability accounts as listed on the
Firm Payroll Summary report. (Remember, the social security and Medicare amounts
have already been doubled.) You will credit the cash account from which the
funds were drawn.
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Why are there 10 salary expense accounts on the default chart of account screen?
AbacusLaw allows the user to subdivide salary expense in up to 10 different accounts.
For example, senior partners, junior associates, paralegals, secretaries, bookkeeper,
etc. You do not have to set up 10 different accounts. But you must enter a valid
account number in each of the ten fields on the payroll default account screen.
These account numbers correspond to the Department number entered on the Employee
Profile.
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How do I keep track of used vacation and sick hours?
To keep track of an employee's used sick or vacation time, you must modify
payroll as it is processed. To do this, process payroll as normal. Then choose
the employee to modify. Enter the number of hours of sick or vacation
time taken in the boxes beneath overtime hours. If the employee is being paid
for these hours, do not deduct them from the regular and overtime hours
(AbacusLaw will not stop you from paying an employee for sick or vacation hours not
yet accumulated.). You may also edit the accumulated hours fields
to adjust the amount of time accumulated by an employee when you setup your
system.
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