Pay Cycle F/M (PRF978)

This program allows the user of the FACTS system to enter and maintain information regarding pay cycles. Users may set up as many pay cycles as needed. For example, a company may have a weekly pay cycle for hourly employees, a semimonthly for salaried employees, a monthly (commission) for salespeople and a bonus pay cycle. Employees are set up in the appropriate pay cycles in the Employee Pay Cycle F/M program. One employee may be set up in as many pay cycles as needed. For example, if an employee’s compensation plan is salary plus commission, that employee may be set up in the semimonthly pay cycle and the monthly pay cycle. The same employee might also perhaps be set up in the bonus pay cycle.

Information in this file is used by the system to ensure that all payrolls are handled in the proper time period. Usage flags for earnings and deductions determine which categories are used in each pay cycle. For example, if commission is an earnings code, it might only be applicable to the monthly pay cycles where commissions are paid. Weekly and semimonthly employees are not eligible to receive commission during those pay cycles.

Use the following fields to create a pay cycle:

1. Pay Cycle

Enter the pay cycle (up to 2 characters). F2 allows a search.

2. Description

Enter the pay cycle description (up to 30 characters).

3. Number Payrolls/Year

Enter the number of times per year this payroll is run (1-366). Examples include 12 monthly, 52 weekly, etc. Enter (CR) initially defaults to 52.

4. Minimum Days

Enter the minimum number of days required to pass before the next payroll of this pay cycle may 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 entering this number. Any entry from 1 to 366 and less than or equal to maximum days between payrolls is accepted. Enter (CR) initially defaults to 5.

5. Maximum Days

Enter the maximum number of days allowed to pass before the next payroll of this pay cycle type may be run. Any entry from 1 to 366 and greater than or equal to minimum days between payrolls is accepted. Enter (CR) initially defaults 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

Enter the average number of hours worked by an employee per pay period in this pay cycle (1-999.99). Enter (CR) initially defaults to 40.

7. Last Payroll Ending Date

Enter 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 (CR) to default to NO DATE, see field #8.

8. Current Payroll Ending Date

Enter 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 (CR) 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

Enter the current payroll number this year (1-366). Enter (CR) initially defaults 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

Enter the current payroll number for this month (1-31). Enter (CR) initially defaults 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

Enter 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. F2 allows a search. When printing checks for this pay cycle, this is the default bank. Enter (CR) initially defaults 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). Enter (CR) initially defaults to E.

13. Job Cost

Enter N or Y to indicate whether the job cost bill rate is to be entered when setting up employees in their appropriate pay cycles in the Employee Pay Cycle F/M program. Enter (CR) initially defaults to N.

14-25. Earnings Usage Flags

For each earnings code, enter Y or N to determine whether it is used in this pay cycle. For example, a commission earnings code may not 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. Enter (CR) initially defaults to Y.

26-41. Deduction Usage Flags

For each deduction code, enter 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 entered, the deduction is only used for even payrolls; i.e., the 2nd, 4th, etc. payroll of the year. If 1-5 is entered, the deduction is only used for the 1st, 2nd, etc. payroll of the month. For example, insurance may only be taken out once a month. Entering an N indicates the deduction is never used for the pay cycle. For example, weekly employees may not be eligible for advances, therefore, the deduction code for advance is set to N.