Tuesday, August 23, 2016

Payroll Reconciliation and Tax Flag Comparisons

First things first, it is always easier to reconcile payroll as you go.  Bit by bit goes down easier than looking at large ranges of time. What do I mean by reconciling?  Well, after each payroll do the following...

1. Print the check register that shows up automatically in most cases when you post the payroll (the one that shows what you owe as far as taxes)
2. Then print the payroll summary report (Reports-Payroll-Period End), print this from the start date of the current quarter through the payroll check date.  This report should reconcile (wages, taxes, etc) to the cumulative tracking of your payroll check registers.
3. Then print the 941 report for the current quarter.  This should also reconcile (wages, taxes, etc) to the payroll summary report.  And the Schedule B should reconcile by date to your check registers.

You can also follow this same process for state taxes, using the state tax register that prints when you post payroll and comparing it to the state tax summary printed from reports-payroll-period end.  It is important to do these exercises in a cumulative fashion so you inevitably pick up off-cycle adjustments and voids, as well as enable you to compare to your cumulative 941 as you go which makes quarter end a little less climactic :)

When you find an issue, then you can deal with it and already know what payroll or adjustment time period is the source.  However, we don't all live in perfectville and sometimes time gets away from us.  So if you are needing to back track and reconcile multiple payrolls, specifically after you have gone live, one useful double check can be to make sure that individual employee pay codes, benefits, and deductions are set with the same tax flags as the overall setup (comparing Cards-Payroll to Setup-Payroll).  The script below does that specifically for pay codes, but can be easily adapted for benefits or deductions as well.

--Compares UPR00400 employee pay code master to the overall pay code setup
--Identifies where tax flags don't match, or where SUTA states are missing for SUTA taxable codes
--Provides list of affected codes and employees
select UPR00400.EMPLOYID as EmployeeID, UPR00400.PAYRCORD as PayCode,
UPR00400.SBJTFUTA as SubjectToFUTA, UPR00400.SBJTSUTA as SubjectToSUTA,
UPR00400.SUTASTAT as SUTAState, UPR00400.SBJTFDTX as SubjectToFed, UPR00400.SBJTSSEC as SubjectToSS, UPR00400.SBJTMCAR as SubjectToMed,
UPR00400.SBJTSTTX as SubjectToState from UPR00400 inner join UPR40600 on UPR00400.PAYRCORD=UPR40600.PAYRCORD
or (UPR00400.SUTASTAT='' and UPR40600.SBJTSUTA=1) or (UPR00400.SBJTFDTX<>UPR40600.SBJTFDTX)

Christina Phillips is a Microsoft Certified Trainer and Dynamics GP Certified Professional. She is a director with BKD Technologies, providing training, support, and project management services to new and existing Microsoft Dynamics customers. This blog represents her views only, not those of her employer.

No comments: