Home/ Employee Management/ Employee YTD Setup

Employee YTD Setup

Overview

Employee YTD (Year-to-Date) setup is required when you transfer information from another payroll system into ProPay. This two-step process ensures accurate year-to-date totals for wages, taxes, and deductions.

Setup Process

Step 1: Set up employee information

Enter employee names, addresses, pay rates, automatic deductions, and other basic information.

See: Add/Change Employees section for detailed instructions.

Step 2: Set up employee YTD earnings and deductions

Enter year-to-date totals through Manual Checks.

Entering YTD Through Manual Checks

Access manual checks

  1. From the Payroll Main Menu, click Paychecks.
  2. Click Manual Checks.

Example scenario

If you are switching to ProPay on August 1st from another payroll system:

Entry 1: Prior period totals

  1. Enter gross wages, FICA, STWT, and other withholdings as one entry per employee for the 6-month period ending June 30.
  2. Use a date of `06/30/XX` (XX = current year).

Entry 2: Most recent period

  1. Enter gross wages, FICA, STWT, and other withholdings for the month of July.
  2. Enter as one entry for the whole month.
  3. Use a date of `07/31/XX`.

Override Capabilities

When entering Manual Checks, you are automatically in "Override" mode. You can change:

  • Federal withholding tax
  • State withholding tax
  • Other withholding taxes

Match these to the client's YTD totals.

FICA/Medicare override warning

CAUTION: Do NOT override FICA/Medicare taxes.

If a client has withheld incorrect FICA or Medicare tax and you override ProPay, you may encounter problems:

  • Balancing various reports
  • Balancing tax forms

Verification Steps

Step 1: Print and compare

After entering YTD earnings and deductions:

  1. Print the payroll summary.
  2. Compare the newly printed summary to:
    • Existing print-outs from the previous system
    • Form 941s
    • State filed reports
    1. Verify your beginning balance forward is correct.

    Important: Completing this verification now prevents year-end reconciliation problems.

    Step 2: Enter tax payments

    If your client has made any tax payments for the current quarter:

    1. Enter these payments under List/Update Tax Deposits File.
    2. View tax liabilities by clicking Display Tax Liability for Qtr.

    Step 3: Final verification

    If everything looks correct, you are ready to begin processing payrolls for this client on a regular basis.

    Related Topics

    ← Back to Index