Home/ Reports & Utilities/ Employee YTD Setup

Employee YTD Setup

Set up year-to-date earnings and deductions for employees when converting from another payroll system to ProPay.

Overview

Employee YTD setup is required when transferring information from another payroll system into ProPay mid-year. The process involves two steps: setting up employee information and entering YTD earnings and deductions.

Step 1: Set up Employee Information

Set up employee names, addresses, pay rates, and automatic deductions as explained in the Add/Change Employees section.

Step 2: Enter Employee YTD Earnings and Deductions

Enter YTD earnings and deductions through Manual Checks.

Accessing manual checks

  1. Go to Paychecks > Enter Payroll.
  2. Click Manual Checks.

Example: Mid-year conversion on August 1

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

  1. Enter gross wages, FICA, state withholding tax, and other taxes as one entry per employee for the 6-month period ending June 30.
  2. Enter this manual entry with a date of 06/30/XX (XX = current year).
  3. Enter gross wages, FICA, state withholding tax, and other taxes again for the month of July.
  4. Enter this as one entry for the whole month with a date of 07/31/XX.

Working with override mode

When entering manual checks, you are automatically in Override mode. You can change the federal withholding tax and other withholding taxes to match the client's YTD amounts.

CAUTION: DO NOT OVERRIDE FICA/MEDICARE TAXES

Do not override FICA or Medicare taxes. If a client has withheld the wrong FICA or Medicare tax and you override ProPay, you may have problems balancing various reports and tax forms.

Verification Steps

After entering all YTD earnings and deductions:

  1. Print the payroll summary report.
  2. Compare the newly printed summary with the client's previous payroll history.
  3. Match your entries against existing printouts, 941s, and state filed reports.
  4. Verify that your beginning balance forward is correct.

This verification now prevents year-end reconciliation problems later.

Entering Tax Payments

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

  1. Go to Taxes > List/Update Tax Deposits File.
  2. Enter all tax payments made for the current quarter.

After entering tax payments:

  1. Go to Taxes > Display Tax Liability for Qtr.
  2. Review the tax liability to verify all payments were entered correctly.

Final Verification

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

Related Topics

← Back to Index