Payroll Processing Tips in MAS 90/200 ERP
In this post we’ll show you how to set up Benefit Schedules, and how to set up multi-state employees, in MAS 90/200.
Setting Up Benefit Schedules (Tip One)
To assist you in creating a Benefit Schedule that matches your business needs, this tip will help you to better understand the fields and calculations used by the Payroll module pertaining to benefits. Benefit hours, such as vacation and sick leave, accrue based on selections in Payroll Setup Options and Benefit Schedule Maintenance.
Benefit Options In Payroll Setup
Within the Additional tab in Payroll Setup/Options are two settings pertaining to benefits:
- Benefit Hours can be calculated using one of two methods: Annual Limit or Accrual. With the Annual Limit method, the benefit amount can be made available all at once or after a delay period. With the Accrued method, benefit hours are available as they are accumulated over time, as dictated by the Benefit Schedule associated with the employee. In either case, hours should be accrued at a rate that will bring the accrued hours to the annual limit by the end of the year. This is required to properly compute Carry Over hours at the end of the year.
- Carry Over and/or Used Hours can be applied to an annual limit, so that (Accrued hours + Carry Over – Used Hours) cannot exceed the annual limit.
Settings In Setup/Benefit Schedule Maintenance
- The Accrual Method determines at what intervals accruals are to be made: Hourly, Daily, Weekly, Per Check, Dollars Paid, or a Fixed amount at year-end.
- The Rate Method can be based on a Fixed multiplier (Accrual Rate) or a Table of Accruals, allowing up to 20 steps based on dates from hire or anniversary date.
- Delay Period can delay the start of accrual of benefit hours by 1 to 999 days after the hire date. Carry Over hours and hours based on annual limit are not subject to this condition.
- Eligibility Wait provides an additional delay. After benefit hours have been accrued, wait 1 to 12 months before the accrued hours become available for use. Carry Over hours and hours based on annual limit are not subject to this condition.
- Eligibility Hours provide that, regardless of the benefit hours accrued or hours eligible based on annual limit, they are not available until 1 to 12 months after the hire date. All hours are subject to this condition.
- Max Hrs/Check is where you specify the maximum hours per check on which benefit accruals should take place. If there is no limit, set it to zero.
Once an employee is attached to a Benefit Code Schedule, or when any changes are made to the schedule in Benefit Schedule Maintenance, the code must be applied to the employee. Use the Apply button to apply to employees on that schedule.
There are two fields that are tracked for employees in relation to each benefit. The Hours Eligible tracks accrued hours and stops when it reaches the annual limit, and also includes any carry-over hours from the previous year. The Available Hours is calculated by subtracting the Hours Used from the Hours Eligible value. When based on an annual Limit, benefit hours are not added to the Available field until any delays have expired. When based on Accrual, benefit hours are not Available until they are both accrued and any delays have expired.
Accrual Rate is not a percentage, but rather a multiplier. For example, for a Weekly Accrual Method with a benefit of 40 hours per year, the Accrual Rate equals Benefit Hours per Year divided by the Number of Accruals per Year. (e.g. 40/52 = 0.7692310).
Multi-State Employees (Tip two)
Note: This is a basic overview of setting up a multi-state employee. Consult the appropriate jurisdiction for instructions pertaining to specific state reciprocity tax laws.
- Open Payroll/Main/Employee Maintenance. Select the employee, and click the Wages tab.
- In the Primary State field, enter the state in which the employee pays taxes.
- In the SUI State field, enter the state for which state unemployment taxes are paid. For example, if an employee has state tax withholding in California and state unemployment tax is paid in Nevada, enter CA in the Primary State field and NV in the SUI State field. Note: If this field is left blank, the state where earnings are recorded during data entry is used to calculate and pay both SUI and SDI.
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