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Payroll Guide Payroll Processing Guide Version 6.3 Financial MicroSystems, Inc. Client Ledger System documentation copyright 2012 Financial MicroSystems, Inc. All rights reserved. Absolutely no part of this documentation may be copied, photographed, reproduced, translated or reduced to any electronic medium without the express written consent of Financial MicroSystems, Inc. The software described in this documentation is furnished under a license agreement. Information contained in this documentation is subject to change without notice, and does not represent a commitment on the part of Financial MicroSystems, Inc. Financial MicroSystems, Inc. makes no warranties, either expressed or implied, regarding this computer software package, its merchantability, or its fitness for a specific purpose. The exclusion of implied warranties is not permitted by some states. The above exclusion may not apply to you. This warranty provides you with specific legal rights. There may be other rights which you have which vary from state to state. Client Ledger System is a trademark of Financial MicroSystems, Inc. Other brands and products are the trademarks of their respective holders and should be noted as such. First printing, August 1990. Second printing, August 1992. Third printing, April 1994. Fourth printing, November 1994. Fifth printing, November 1995. Sixth printing, November 1996. Seventh printing, October 1997. Eighth printing, October 1998. Ninth printing, October 1999. Tenth printing, November 2000. Eleventh printing, November 2001. Twelfth printing, December 2002. Thirteenth printing, December 2003. Fourteenth printing, March 2004. Fifteenth printing, December 2004. Sixteenth printing, December 2005. Seventeenth printing, December 2006. Eighteenth printing, November 2007. Nineteenth printing, November 2008. Twentieth printing, November 2009. Twenty-first printing. November 2010. Twenty-second printing. January 2012. Twenty-third printing, December 2012. Financial MicroSystems, Inc. 3000 Langford Road, Suite 2500 Norcross, GA 30071 Telephone: (770) 446-5709 Fax: (770) 446-1802 www.clientledgersystem.com Table of Contents Chapter 1 – CLS Passive Payroll Concepts ........................................................................... 1-1 CLS Passive Payroll Concepts .............................................................................................. 1-2 Chapter 2 – CLS Payroll Maintenance Programs ................................................................... 2-1 Computed Transactions (CT) ................................................................................................ 2-2 Employee File Maintenance (EF)........................................................................................... 2-5 Employee File List (EL) ......................................................................................................... 2-17 Payroll File Maintenance (PF) ............................................................................................... 2-19 Set CLS Payroll Options (SI) ................................................................................................. 2-35 Chapter 3 – CLS Payroll Reports ............................................................................................ 3-1 Payroll Journal (PJ) ............................................................................................................... 3-2 Query Employee Detail (QE) ................................................................................................. 3-5 Chapter 4 – CLS Payroll Tax Programs .................................................................................. 4-1 Payroll Tax Forms (TF) .......................................................................................................... 4-2 Employee W-2 Forms ....................................................................................................... 4-3 W-3 Transmittal Forms ..................................................................................................... 4-10 Vendor 1099/1098 Forms ................................................................................................. 4-17 1096 Transmittal Forms .................................................................................................... 4-27 W-2c and W-3c Forms ...................................................................................................... 4-34 W-2/1099 Form Requirements .......................................................................................... 4-39 Download Soft Tax Fonts .................................................................................................. 4-40 Payroll Tax Worksheets (TW) ................................................................................................ 4-41 Federal 941, 943 and 944 Forms ...................................................................................... 4-42 Federal 941-X, 943-X and 944-X Forms ........................................................................... 4-47 Federal Unemployment (940) Forms ................................................................................ 4-51 State Unemployment Reports ........................................................................................... 4-57 Align State Unemployment Continuation Sheet ................................................................ 4-60 Year-to-Date Employee/Vendor Activity ............................................................................ 4-61 Download Soft Tax Fonts .................................................................................................. 4-61 Appendixes A: Warning Messages .......................................................................................................... A-1 B: Glossary .......................................................................................................................... B-1 C: CLS Ledger Limits (Payroll) ............................................................................................. C-1 This page is left blank intentionally. Chapter 1 One CLS Passive Payroll Concepts CLS Passive Payroll Concepts ............................................................................................................................ 1-2 CLS Passive Payroll Concepts 1.1 CLS Passive Payroll Concepts The CLS passive (after-the-fact) payroll does not actually calculate payroll or print checks. It is designed to keep track of wages and deductions and prepare payroll reports (W-2 and W-3 forms, 940/941/943 forms, quarterly state unemployment continuation sheets, etc.) for your clients' employees. CLS will also track vendor-related expenses and prepare 1099/1098 and 1096 forms. Defining a Payroll Series Creating the Payroll Series You begin setting up the passive payroll by creating one or more payroll series (groups of employees) using the Payroll File Maintenance (PF) program, Menu Selection 1. Payroll series may be type E (employee series - W-2 forms), type 1-9 (vendor series - 1099), type A (vendor series - 1098), or type M (miscellaneous series - no tax forms). For example, you might set up a series beginning with 100 to record wages paid to employees in one state, a series beginning with 200 for employees in another state, and a series beginning with vendor number 1000 to record payments to sub-contractors. When defining a payroll series in program PF, Menu Selection 1, you will be prompted to enter information specific to that series, such as: Journal Format (1,2) Select an 8 or 16-column payroll journal. Options for an employee series Select from the following list of options: Employer Type Select an employer type. The default employer type is B. B Employer name is a business name I Employer name is an individual’s name Employee Type Select an employee type. The default employee type is R. A Agriculture M Military X Railroad G Annual 944 Q Medicare Qual Gov't Empl H Household R Regular FUTA/SUTA Print Options Select an option for FUTA and SUTA employees. This selection will be used by the Payroll Tax Worksheets (TW) program when printing federal or state unemployment continuation sheets. 1-2 CLS Passive Payroll Concepts CLS Passive Payroll Concepts C Print FUTA-exempt employees on FUTA wages lists D Print SUTA-exempt employees on SUTA wage lists O Include SUTA tax component 2 in SUTA tax reported on 940 form P Print a SUTA continuation sheet even if there is no activity Name Convention Select a convention for entering employee names. The Payroll Tax Worksheets (TW) program uses this information when rearranging employee names to meet each state's requirements for the unemployment continuation sheet. The default name convention is F. F First name entered first L Last name entered first Other Enter an E option to force printing of state wages on the W-2 form. Enter an S option if the employer is a semi-weekly 941 depositor. Enter a U option if all employees are subject to 6.2% SUTA (Minnesota only) California Unemployment Series Type In California, select the appropriate unemployment series type. The default type is 1. California Unemployment Series Types 1 UI and DI Wages (S) 6 DI Wages Only - Voluntary Plan (L) 2 UI Wages Only (A) 7 UI Wages Only – DI Religious Exemption (R) 3 DI Wages Only (J) 8 UI Wages Only - Sole Stockholder DI Exemption (R) 4 UI and Voluntary Plan DI Wages (U) 9 UI Wages Only - Third Party Sick Pay DI Exemption (R) 5 Personal Income Tax W/H Only (P) Use types 1-5, 8 and 9 for paper DE-6 reporting. Use types 1-7 for reporting
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