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Payroll Adjustments
Function
Adjustment routines will enable you to perform two functions.
Things You Should Know
Manual Payroll Check
Void Payroll Check
There is a button on this form to void an existing payroll check or employee direct deposit. Please see void section below for more detailed instructions.
One Time Check Changes
If the one time change that needs to be made affects gross pay, a Timesheet adjustment batch must be entered. The Timesheet adjustment batch or a Payroll Adjustment will be used during Current Period Payroll Processing to produce the gross to net payroll computation. To decide which one will be used, consider the following:
If the answer to either of the above questions is yes, then enter a Payroll Adjustment to produce the paycheck information and a corresponding Timesheet adjustment to record the salary distribution.
If the one-time adjustment affects only withholdings and net pay, no Timesheet adjustment is necessary as gross salary is not affected.
Recording Third Party Sick Pay
If you have not yet processed W2’s and need to add third party sick pay to an employee’s year-to-date payroll information:
Note: Please make sure you check the PADJ box when recording Third Party Sick Pay on this form.
Enter a Payroll Adjustment to record third party sick pay including all information which must be included on the W2. Make certain that you enter a check number and check date if you plan to process the adjustment with payroll. If the check number and check date are left blank then the adjustment will be treated as a cash adjustment and included in the employee’s paycheck.
You may process the Payroll Adjustment after the final payroll has been prepared for the year if you have not previously saved the W2 information and cleared the Year-to-Date Files.
If you have already saved the W2 information, you will need to edit the W2 file for the employee, adding in all information to be included regarding the third party sick pay.
Document Attachments
Once a Payroll Adjustment is saved, you will have the option to attach an external document to the Payroll Adjustment Register. An example of this would be a Word document or pdf of an employee request for a one-time adjustment to a specific deduction. To accomplish this, once the Payroll Adjustment Register is open, click on the Documents button on the tool bar across the top of your screen. A New Document form will appear with the Source combo box defaulted to Payroll Adjustment. At this point you can open Windows Explorer or My Computer and locate the document you wish to attach. Then simply drag and drop the document by placing the cursor over the document name, left click and drag it to the New Document form in GMS. Once the cursor is anywhere on the New Document form simply let go of the cursor button and the complete file name and path will appear in the File Name field. Then save the document attachment. Another option is to click on the >> symbol to the right of the File Name field and locate the document to be attached. Once the document is selected, click on save.
Once a document is attached a paperclip image will appear to the left of the column headings. Should you wish to view a document already attached, click on the paper clip. If there is only one document attached, when you click on the paper clip the document will open. If there are multiple documents attached, the view document form will appear and you may choose the document you wish to view.
Should you wish to add additional documents to the Payroll Adjustment Register, once the grid appears with the currently attached document(s) click on the New button on the bottom of the form and repeat the attachment process.
Should you wish to “un-attach” a document, highlight the existing file name and click on the Delete button on the bottom. Note: this step does not delete the document, it merely “un-attaches” it from the Payroll Adjustment Register.
Note: This process may be followed for current and previous Payroll Adjustment Registers.
Operating Instructions
Current Payroll Adjustment tab
Employee: Enter the Employee code in this field. Data entry can be accomplished by typing in the code or clicking on the combo box arrow and making your selection. Your selection will be restricted to current active staff.
The Employee’s name will appear in the field to the right for verification.
Record #: This is an informational field, as the system will assign the record numbers. You may, however, enter the number of an existing record for editing or deletion.
Check #: If the adjustment is for a Manual or Void payroll check, record the appropriate check number in this field. If the adjustment is for a one time check change, do not enter a check number.
Check Date: If the adjustment is for a Manual check, record the date the check was issued. If the adjustment is for a void payroll check, we recommend that you enter the same check date as the check date of the current payroll. Enter the check date as mm/dd/yyyy or select the date from the calendar. If the adjustment is for a one-time check change for the current payroll, no date entry is necessary.
Note: This check date field will only appear if a check number is entered on the form or the PADJ box is checked.
Note: The system will not allow you to enter a check date that falls within a calendar year for which you have already done the Save/Clear YTD Amts step in W2 processing.
PADJ: Check this box if you are entering a PADJ that does not have a check number, such as third party sick pay or life insurance over $50,000.
Note: By checking this box only the YTD amounts and not the current payroll
will be affected by the adjustment.
Earnings Grid: If the adjustment is to affect hours worked or gross salary amount, enter the information in the appropriate field(s) by clicking on the desired field on this grid and typing in the data.
Special Pay A & B: Should the selected employee have entries in either of these fields in their employee file, the information will appear on this form.
Employer Health: Should the selected employee have an amount in this field in the employee file, the information will appear on this form.
Taxes Grid: If the adjustment is to affect payroll taxes withheld, enter the information in the appropriate field(s) by clicking on the desired field on this grid and typing in the data. The code column is only used for Local Tax codes.
Deductions Grid: If the adjustment is to affect deductions, enter the information in the appropriate field(s) by clicking on the desired field on this grid and typing in the data.
Only deductions currently set up in an employee’s file will be available for adjustment.
Additional Medicare: If the employee has earned more than $200,000 in the calendar year and is subject to the additional Medicare Tax Withholding, enter that amount here. For more information, see IRS Publication 15 (Circular E).
Expense: Use this field for adjustments affecting Employee Expense Reimbursements. Please note that an adjustment to this field could affect the control account that all payroll adjustments pass through. There might be cases where an additional General Journal entry is necessary to reconcile the control account.
Net Pay: This is an informational field. As adjustments are added to the form, the end result of how the net pay will be affected appears in this field.
% Tax Rate: If you want the Federal and/or State Taxes to be calculated at a certain percentage on the Earning Amount, enter the percentage(s) to be used. For example, 30% will be entered as 30. Do not enter a decimal before the number, nor enter the percentage symbol. The appropriate amount will be calculated when the Calculate Taxes button is selected. If using % Tax Rate, you should not enter the amount under Federal and/or State on the left side of the screen.
Calculate Taxes: If you want the Social Security, Medicare, state and local taxes automatically calculated for a current deduction, enter the gross wages for this adjustment and click on Calculate Taxes
Void: Use this button to void a payroll check or payroll direct deposit. When voiding a live check, enter the employee number or name, check number you wish to void and the date of the void check. The form will be populated with the information as it appeared in the original check only with negative values. The information on this form cannot be edited. Click Save to save the Void Check.
Note: When voiding a direct deposit, enter a zero in the check number field. The system with then ask you for the payroll run number of the original direct deposit.
Find: This selection enables you to search the payroll adjustment file by the employee code or last name.
When entering an employee code, you need to enter an existing code. If a valid code is not entered, you will receive the message Employee code not found. If you enter a valid code, the current payroll adjustment will appear on the screen.
When entering an employee’s last name, the system will display the payroll adjustment of the first employee, in alphabetical order, that meets the criteria. For example you might enter “Smi” and if the only two employees that have current payroll adjustments are David Smith and Janice Smith, the system will display David Smith’s file.
Previous Adjustment tab
You are able to re-print previous payroll and deduction adjustment registers based on the check date and payroll number assigned to that payroll. Previous payroll adjustments will only be shown in the check date combo box after the current payroll has been updated to the YTD tables. Should a previous payroll include only padj's with varying check dates, the latest check date used in that run will appear in the date combo box.
Adjustment routines will enable you to perform two functions.
- Manual actions such as the voiding of a check or the issuance of a manual check may be recorded.
- One-time check changes may be processed, such as adding to an employee deduction without changing the employee file.
Things You Should Know
Manual Payroll Check
- Enter a payroll adjustment with the correct gross to net information. While entering this information, make sure to include the check number used for this check and the date of the check. This instructs the software that the check has already been written. Although the information will appear on the next Payroll Register and be updated to the Employee File, no check will be issued. Print the adjustment register to check for accuracy. If you ever need to reprint the Payroll Register for this pay period, if the date entered for the manual check was different than the check date on the checks printed, you will have to select both payroll check dates. They will be printed on 2 separate reports.
- During the next payroll processing, the system will ask you “Are there any adjustments to be processed?” By answering ‘Yes’ the adjustment information will be processed accordingly and appropriate files updated. If you answer ‘No’ to that question, even if the payroll adjustment exists, it will not be processed with the payroll.
- Enter a new Timesheet batch with a Timesheet reflecting the proper salary distribution for the manual payroll check. If the gross salary on the Timesheet does not agree with the gross salary in the manual payroll check adjustment, you will need to adjust the Timesheet amount through Timesheet Adjustments. This batch is to be processed through Leave Balance Processing and included in your Month End activities, however it is not to be processed during any Current Payroll Processing Procedure. This timesheet batch will need to be posted under Tools/Post Timesheet Batches after it has been processed through Leave Balance Processing.
Void Payroll Check
There is a button on this form to void an existing payroll check or employee direct deposit. Please see void section below for more detailed instructions.
One Time Check Changes
If the one time change that needs to be made affects gross pay, a Timesheet adjustment batch must be entered. The Timesheet adjustment batch or a Payroll Adjustment will be used during Current Period Payroll Processing to produce the gross to net payroll computation. To decide which one will be used, consider the following:
- Will the current period gross amount plus the one time gross adjustment put the salary base in a higher tax bracket than desired?
- If processing the one time gross adjustment without regular current period salaries, are there deductions in the Employee file that are to be withheld?
If the answer to either of the above questions is yes, then enter a Payroll Adjustment to produce the paycheck information and a corresponding Timesheet adjustment to record the salary distribution.
If the one-time adjustment affects only withholdings and net pay, no Timesheet adjustment is necessary as gross salary is not affected.
- Enter the one-time adjustment with the appropriate information and do not record a check number. This instructs the system that the adjustment is to be processed during the next Current Period Payroll Processing. Print the adjustment register to check for accuracy.
- During the next payroll processing the system will ask you Are there any adjustments to be processed? By answering ‘Yes’ the adjustment information will be processed accordingly and appropriate files updated. If you answer ‘No’ to that question, even if the payroll adjustment exists, it will not be processed with the payroll.
Recording Third Party Sick Pay
If you have not yet processed W2’s and need to add third party sick pay to an employee’s year-to-date payroll information:
Note: Please make sure you check the PADJ box when recording Third Party Sick Pay on this form.
Enter a Payroll Adjustment to record third party sick pay including all information which must be included on the W2. Make certain that you enter a check number and check date if you plan to process the adjustment with payroll. If the check number and check date are left blank then the adjustment will be treated as a cash adjustment and included in the employee’s paycheck.
You may process the Payroll Adjustment after the final payroll has been prepared for the year if you have not previously saved the W2 information and cleared the Year-to-Date Files.
If you have already saved the W2 information, you will need to edit the W2 file for the employee, adding in all information to be included regarding the third party sick pay.
Document Attachments
Once a Payroll Adjustment is saved, you will have the option to attach an external document to the Payroll Adjustment Register. An example of this would be a Word document or pdf of an employee request for a one-time adjustment to a specific deduction. To accomplish this, once the Payroll Adjustment Register is open, click on the Documents button on the tool bar across the top of your screen. A New Document form will appear with the Source combo box defaulted to Payroll Adjustment. At this point you can open Windows Explorer or My Computer and locate the document you wish to attach. Then simply drag and drop the document by placing the cursor over the document name, left click and drag it to the New Document form in GMS. Once the cursor is anywhere on the New Document form simply let go of the cursor button and the complete file name and path will appear in the File Name field. Then save the document attachment. Another option is to click on the >> symbol to the right of the File Name field and locate the document to be attached. Once the document is selected, click on save.
Once a document is attached a paperclip image will appear to the left of the column headings. Should you wish to view a document already attached, click on the paper clip. If there is only one document attached, when you click on the paper clip the document will open. If there are multiple documents attached, the view document form will appear and you may choose the document you wish to view.
Should you wish to add additional documents to the Payroll Adjustment Register, once the grid appears with the currently attached document(s) click on the New button on the bottom of the form and repeat the attachment process.
Should you wish to “un-attach” a document, highlight the existing file name and click on the Delete button on the bottom. Note: this step does not delete the document, it merely “un-attaches” it from the Payroll Adjustment Register.
Note: This process may be followed for current and previous Payroll Adjustment Registers.
Operating Instructions
Current Payroll Adjustment tab
Employee: Enter the Employee code in this field. Data entry can be accomplished by typing in the code or clicking on the combo box arrow and making your selection. Your selection will be restricted to current active staff.
The Employee’s name will appear in the field to the right for verification.
Record #: This is an informational field, as the system will assign the record numbers. You may, however, enter the number of an existing record for editing or deletion.
Check #: If the adjustment is for a Manual or Void payroll check, record the appropriate check number in this field. If the adjustment is for a one time check change, do not enter a check number.
Check Date: If the adjustment is for a Manual check, record the date the check was issued. If the adjustment is for a void payroll check, we recommend that you enter the same check date as the check date of the current payroll. Enter the check date as mm/dd/yyyy or select the date from the calendar. If the adjustment is for a one-time check change for the current payroll, no date entry is necessary.
Note: This check date field will only appear if a check number is entered on the form or the PADJ box is checked.
Note: The system will not allow you to enter a check date that falls within a calendar year for which you have already done the Save/Clear YTD Amts step in W2 processing.
PADJ: Check this box if you are entering a PADJ that does not have a check number, such as third party sick pay or life insurance over $50,000.
Note: By checking this box only the YTD amounts and not the current payroll
will be affected by the adjustment.
Earnings Grid: If the adjustment is to affect hours worked or gross salary amount, enter the information in the appropriate field(s) by clicking on the desired field on this grid and typing in the data.
Special Pay A & B: Should the selected employee have entries in either of these fields in their employee file, the information will appear on this form.
Employer Health: Should the selected employee have an amount in this field in the employee file, the information will appear on this form.
Taxes Grid: If the adjustment is to affect payroll taxes withheld, enter the information in the appropriate field(s) by clicking on the desired field on this grid and typing in the data. The code column is only used for Local Tax codes.
Deductions Grid: If the adjustment is to affect deductions, enter the information in the appropriate field(s) by clicking on the desired field on this grid and typing in the data.
Only deductions currently set up in an employee’s file will be available for adjustment.
Additional Medicare: If the employee has earned more than $200,000 in the calendar year and is subject to the additional Medicare Tax Withholding, enter that amount here. For more information, see IRS Publication 15 (Circular E).
Expense: Use this field for adjustments affecting Employee Expense Reimbursements. Please note that an adjustment to this field could affect the control account that all payroll adjustments pass through. There might be cases where an additional General Journal entry is necessary to reconcile the control account.
Net Pay: This is an informational field. As adjustments are added to the form, the end result of how the net pay will be affected appears in this field.
% Tax Rate: If you want the Federal and/or State Taxes to be calculated at a certain percentage on the Earning Amount, enter the percentage(s) to be used. For example, 30% will be entered as 30. Do not enter a decimal before the number, nor enter the percentage symbol. The appropriate amount will be calculated when the Calculate Taxes button is selected. If using % Tax Rate, you should not enter the amount under Federal and/or State on the left side of the screen.
Calculate Taxes: If you want the Social Security, Medicare, state and local taxes automatically calculated for a current deduction, enter the gross wages for this adjustment and click on Calculate Taxes
Void: Use this button to void a payroll check or payroll direct deposit. When voiding a live check, enter the employee number or name, check number you wish to void and the date of the void check. The form will be populated with the information as it appeared in the original check only with negative values. The information on this form cannot be edited. Click Save to save the Void Check.
Note: When voiding a direct deposit, enter a zero in the check number field. The system with then ask you for the payroll run number of the original direct deposit.
Find: This selection enables you to search the payroll adjustment file by the employee code or last name.
When entering an employee code, you need to enter an existing code. If a valid code is not entered, you will receive the message Employee code not found. If you enter a valid code, the current payroll adjustment will appear on the screen.
When entering an employee’s last name, the system will display the payroll adjustment of the first employee, in alphabetical order, that meets the criteria. For example you might enter “Smi” and if the only two employees that have current payroll adjustments are David Smith and Janice Smith, the system will display David Smith’s file.
Previous Adjustment tab
You are able to re-print previous payroll and deduction adjustment registers based on the check date and payroll number assigned to that payroll. Previous payroll adjustments will only be shown in the check date combo box after the current payroll has been updated to the YTD tables. Should a previous payroll include only padj's with varying check dates, the latest check date used in that run will appear in the date combo box.