## 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 9.0 implementation guide.

See Also

JD Edwards EnterpriseOne Payroll 9.0 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 8.98 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.

### Printing Retroactive Pay on Payment Stubs

This section includes an overview of the retroactive payment printing process and discusses how to:

- Set up states for retroactive pay printing.

- Set retro pay processing options for the Payroll Workbench.

- Set retro pay processing options for the Interim Payment Workbench.

- Change the dates for payroll processing.

#### Understanding the Retroactive Payment Printing Process

Recently, some states have changed labor legislation regarding the printing of retroactive pay on employee pay stubs and payment advice slips. Some states now require that any retroactive payments that are included in an employee’s payment are printed separately from current earnings, and that the date range that is associated with those retroactive payments is also printed.

To ensure that this information prints correctly for all payments that occur in states that require this information, you must complete these steps:

1. Set up each state that requires retroactive pay to be printed separately.

2. Set the processing options for the Payroll Workbench (P07210) and the Interim Payment Workbench (P07210I).

3. Enter timecards that include work dates that are earlier than the beginning date of the current pay period.

4. Change the From Date of the current payroll cycle to include the retroactive timecards.

To set up retroactive pay information by state, you use the Paystub Retro Pay State Setup program (P07212). This program enables you to specify which states require you to print retroactive pay separately.

After you specify which states require retroactive pay to print separately, you set the processing options to specify that you want to print retroactive pay separately. The same processing option exists for both the Payroll Workbench (P07210) and the Interim Payment Workbench (P07210I). These options must be set to 1 in order for retroactive pay to print separately on employee pay stubs.

After you have set up the system to print retroactive pay correctly, you can enter timecards for retroactive pay. To be considered a retroactive timecard, the work date on the time card must be earlier than the pay period beginning date of the current payroll cycle.

After you have entered retroactive timecards, you can process them through a payroll cycle or through an interim payment process. When you process the payment through a regular payroll cycle, you must first change the date in the From field in the Dates section of the Pre-Payroll Processing form to a date that is earlier than the pay period beginning date. Changing the date enables the system to include the retroactive timecards in the payroll cycle.

Note. You cannot enter a date that is more than two months earlier than the actual pay period beginning date. To process timecards with earlier work dates, you must use the Interim Payment Workbench.

During payroll processing, or interim processing, the system determines whether any timecards exist with a work date that is earlier than the original pay period beginning date. If timecards that meet this criterion exist, the system then determines whether the timecards are associated with a state that has been set up to print retroactive pay separately. If all of the criteria is met, the system prints retroactive pay information as a separate line on the employee’s pay stub or payment advice.

Additionally, the system enters a date range in the description below the retroactive pay. The date range that is printed on the payment is the date that is manually entered in the From field and the ending date is one day prior to the original pay period begin date.

For example, if the current pay period is June 15 through June 30, and you want to process retroactive timecards with work dates in May, change the From field in the Dates section of the Pre-Payroll Processing form to May 1. When payments and advices are printed, all retroactive pay will be listed separately, and the description for each item is the date range of May 1 through June 14.

See Also

Setting Up the Payroll Cycle Workbench

Working with Interim Payments

Setting Time Entry Processing Options

#### Forms Used to Print Retroactive Pay

Form Name | FormID | Navigation | Usage
Work With Paystub Retro State Setup | W07212A | System Setup (G07BUSP4), Retro Pay State Setup | Use this form to review existing state setup or to access forms to set up additional states.
Paystub Retro State Setup | W07212B | Click Add on Work With Paystub Retro State Setup. | Set up states for retroactive pay printing.
Work With Pay Cycle Workbench | W07210A | Payroll Workbench (G07BUSP11), Pay Cycle Workbench | Select a payroll ID for which you want to change the dates.

#### Setting Up States for Retroactive Pay Printing

Access the Paystub Retro State Setup form.

Statutory Code | Enter the two-character code that specifies the state for which you are setting up retroactive payment information. Values are stored in UDC (06/SC).
Print Retro Detail | Enter a code to specify whether to print retroactive pay separately for the specified state. Values are: Y: Print retroactive pay information separately. N: Do not print retroactive pay information separately.

#### Setting Retro Pay Processing Options for the Payroll Workbench

You use processing options to specify default processing information for a process or program.

Note. This task discusses only the options that pertain to printing retroactive pay.

See Setting Processing Options for Payroll Cycle Workbench (P07210).

Print Tab

Use this option to specify whether retroactive payment information prints separately on employee payments.

1. Print Retro Pay Detail on the Pay Stub | Use this processing option to specify whether to print retroactive pay information separately on employee payments. To print this information separately, in addition to setting this option, you must also specify which states require this information to be printed separately, and you must enter timecards that are associated with one of those states and that include a work date earlier than the pay period begin date. Values are: Blank or 0: Do not print retro pay detail on the pay stub. 1: Print retropay detail on the pay stub.

#### Setting Retro Pay Processing Options for the Interim Payment Workbench

You use processing options to specify default processing information for a process or program.

Note. This task discusses only the options that pertain to printing retroactive pay.

See Setting Processing Options for the Interims Workbench program (P07210I).

Print Tab

Use this option to specify whether retroactive payment information prints separately on employee payments.

1. Print Retro Pay Detail on the Pay Stub | Use this processing option to specify whether to print retroactive pay information separately on employee payments. To print this information separately, in addition to setting this option, you must also specify which states require this information to be printed separately, and you must enter timecards that are associated with one of those states and that include a work date earlier than the pay period begin date. Values are: Blank or 0: Do not print retro pay detail on the pay stub. 1: Print retropay detail on the pay stub.

#### Changing the Dates for a Payroll Cycle

Access the Pre-Payroll Processing form.

See Processing Pre-Payroll.

From | Enter a date that is earlier than the original pay period begin date. You enter an earlier date to include retroactive timecards in the payroll cycle. This date cannot be more than two months earlier than the original pay period begin date. The system uses the date that you enter in this field as the beginning date in the description that prints for each retroactive pay item on an employee payment.

### 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.