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Unemployment Analysis
Function
The Unemployment Analysis is used to accrue unemployment costs for the current pay period. This will help to produce a more accurate financial report by creating the expense in the system at the time it is incurred.
Operating Procedures
○ By selecting No, a window will open where you choose the classes to be included by clicking on the appropriate
class(es).
○ The system will display the General Journal batch and entry number to be used once it has been saved.
○ The expense code used for this entry in the previous payroll will appear as the default. It may, however, be changed at this time to any code greater than 50000.
○ The liability code used for this entry in the previous payroll will appear as the default. It may, however, be changed at this time.
○ The element code used for this entry in the previous payroll will appear as the default. It may be changed at this time. However, it is intended for the unemployment expense to be expensed to the fringe benefit pool, so 998000 is normally used.
○ The posting period will default to the month in which the pay period ended. This date however can be edited if you wish.
The Unemployment Analysis is used to accrue unemployment costs for the current pay period. This will help to produce a more accurate financial report by creating the expense in the system at the time it is incurred.
Operating Procedures
- Period Ending: The current pay period will be displayed.
- Unemployment Rate: Enter the organization’s current unemployment rate. The rate used the last time this analysis was generated will appear as the default. However, the rate can be changed by typing in the new rate. If the rate is 1 and ½ percent, enter as 1.5.
- Unemployment Limit: Enter the maximum calendar YTD wages subject to Unemployment tax. The maximum amount used the last time this analysis was generated will appear as the default. However, the amount can be changed by typing in the new amount.
- Include All Classes: Select whether to include the wages of all employee classes for this analysis.
○ By selecting No, a window will open where you choose the classes to be included by clicking on the appropriate
class(es).
- Prepare Unemployment by State: (If there are multiple states, this option will appear) Choosing a state from the drop down box will prepare the Unemployment report/journal entry for the employee’s residing in the selected state. This step can be run as many times as needed for each state. A separate journal entry will be created for each state.
- Include SSN#: Check the box to include SSN# on report.
- Previous Pay Period tab: Should you wish to print this report for a previous pay period, select this tab. You will then need to choose if the pay period is in the current calendar year or a prior calendar year. Next, choose the desired pay period from the combo box. Unemployment Rate and Unemployment Limit will default to the amounts entered for the last current payroll. These may be edited if rates were different for the pay period you are now selecting.
- Print: This will display the Unemployment Analysis based on the selected criteria. The report will include Employee ID #, Employee Name, Social Security # (if selected), Wages This Period, Wages Under Limit, and the Unemployment Amount for each employee. It will also include which classes were selected to include on the report. There are also organization totals where appropriate.
- Prepare Journal Entry: This option will prepare a General Journal entry that expenses the Unemployment costs into the Fringe Benefit pool and creates the corresponding Accrued Unemployment liability.
○ The system will display the General Journal batch and entry number to be used once it has been saved.
○ The expense code used for this entry in the previous payroll will appear as the default. It may, however, be changed at this time to any code greater than 50000.
○ The liability code used for this entry in the previous payroll will appear as the default. It may, however, be changed at this time.
○ The element code used for this entry in the previous payroll will appear as the default. It may be changed at this time. However, it is intended for the unemployment expense to be expensed to the fringe benefit pool, so 998000 is normally used.
○ The posting period will default to the month in which the pay period ended. This date however can be edited if you wish.
- Save Journal: Upon clicking on this button, you will receive a message that the General Journal Batch has been posted to the General Ledger. Clicking Ok will display the General Journal entry on the screen