Use these fields to create a pay cycle.
1. Pay Cycle
Specify the pay cycle (up to 2 characters).
2. Description
Specify the pay cycle description (up to 30 characters).
3. Number Payrolls/Year
Specify the number of times per year this payroll is run (1-366). Examples include 12 monthly, 52 weekly, etc. Press Enter to initially default to 52.
4. Minimum Days
Specify the minimum number of days required to pass before the next payroll of this pay cycle can be run. For example, in a monthly pay cycle at least 25 days must pass before the next monthly payroll. Be sure to take holidays and months of different lengths into account when specifying this number. Any entry from 1 to 366 and less than or equal to maximum days between payrolls is accepted. Press Enter to initially default to 5.
5. Maximum Days
Specify the maximum number of days allowed to pass before the next payroll of this pay cycle type can be run. Any entry from 1 to 366 and greater than or equal to minimum days between payrolls is accepted. Press Enter to initially default to 10.
NOTE: When the Initialize Pay Cycle program is run, the system checks the date of the previous payroll and the dates of the current payroll to be sure this payroll will fall within the required minimum and maximum number of days.
6. Average Hours
Specify the average number of hours worked by an employee per pay period in this pay cycle (1-999.99). Press Enter to initially default to 40.
7. Last Payroll Ending Date
Specify the ending date of the time period for which employees were paid in the most recent payroll of this pay cycle. If being set up for the first time, press Enter to default to NO DATE, see field #8.
8. Current Payroll Ending Date
Specify the ending date of the time period for which employees will be paid by the current payroll of this cycle. Any valid date greater than or equal to the current payroll beginning date is accepted. If being set up for the first time, press Enter to default to NO DATE.
The system updates the current payroll ending date at the time when the Initialize Pay Cycle program is run. When the Check Register is updated, the system rolls the current payroll ending date to the last payroll ending date and leaves the current payroll ending date blank.
9. Current Payroll Number This Year
Specify the current payroll number this year (1-366). Press Enter to initially default to 1. The payroll number is by the system to determine when deductions are used. If a deduction is set to be used on all odd payrolls, the system checks this flag to determine if the payroll is odd. If the flag is an odd number, the deduction is used. This flag is used to determine if odd or even deductions are used.
10. Current Payroll Number This Month
Specify the current payroll number for this month (1-31). Press Enter to initially default to 1. The payroll number is used by the system to determine when deductions are used. If a deduction is set to be used on the 2nd payroll of the month, the system checks this flag to determine if the payroll is the 2nd of the month. If the flag is set to 2, the deduction is used. This flag is used to determine if deductions are used for the 1st, 2nd, 3rd, 4th or 5th payroll of the month.
11. Bank Code
Specify the bank on which pay checks for this pay cycle are drawn. The entry must be a valid bank in the banking and check system in system management. When printing checks for this pay cycle, this is the default bank. Press Enter to initially default to the first bank on file.
12. Post Unemployment
Post unemployment by E-state of employment or by R-state of residence; i.e., post unemployment based on the tax district the employee lives in (from the Employee F/M) or where the employee works (from the Employee pay Cycle F/M). Press Enter to initially default to E.
13. Job Cost
Specify N or Y to indicate whether the job cost bill rate is to be specified when setting up employees in their appropriate pay cycles in the Employee Pay Cycle F/M program. Press Enter to initially default to N.
14-25. Earnings Usage Flags
For each earnings code, specify Y or N to determine whether it is used in this pay cycle. For example, a commission earnings code cannot be applicable to a weekly pay cycle where only hourly employees are paid. Only earnings with a Y appear in the Employee Pay Cycle F/M. Press Enter to initially default to Y.
26-41. Deduction Usage Flags
For each deduction code, specify the frequency to withhold each deduction as A-all, O-odd, E-even, 1-1st, 2-2nd, 3-3rd, 4-4th or 5-5th payroll of the month, or N-not used. Enter (CR) initially defaults to A. If E is specified, the deduction is only used for even payrolls; i.e., the 2nd, 4th, etc. payroll of the year. If 1-5 is specified, the deduction is only used for the 1st, 2nd, etc. payroll of the month. For example, insurance can only be taken out once a month. Specifying an N indicates the deduction is never used for the pay cycle. For example, weekly employees cannot be eligible for advances, therefore, the deduction code for advance is set to N.
Note: Advanced Earned Income Credit was discontinued after 2010. If FIEI is set up in Code Sequence F/M, it needs to either be removed from there or set to “not used” in Pay Cycle F/M or Employee Pay Cycle F/M. If FIEI is set up in Code Sequence F/M and is still set to be used, the Pre-check Edit List will give a message and not run.