Payroll System Features and Objectives:
The primary objective of the Payroll System from Legler Systems is to
process payroll information in an online environment, so specific online procedures
can be performed in seconds rather than the hours required by traditional batch
methods of computer processing. This PR system performs the basic
payroll objectives by providing a complete and accurate record of all
payroll transactions affecting each hourly and salaried employee.
Specific employee Payroll features and objectives of this business software
are highlighted below:
After all detail payroll information (e.g. labor hours worked) has been
entered for a payroll period (YRNO), the Labor Edit Report (PR02) is printed
to verify the completeness and accuracy of the time card data. A separate
Pay code is used to indicate the type of labor voucher entered, such as
regular payroll hours, payroll adjustments and labor hours only. If only 36.00
hours were reported for an employee who normally works 40.00 hours a week,
an error message is printed in the edit report.
- Maintain a Labor Detail Record on the number of hours worked and the
types of work done by hourly employees during a payroll period, as
well as the associated general ledger account distribution
information for labor expense.
- Calculate gross pay for hourly employees based on the hours
worked including overtime, if any. The gross pay for salaried
employees is predefined for each payroll period in their
Employee Master Record.
- Automatically calculate required federal and state payroll taxes,
such as income tax withholding, Medicare, FICA and unemployment
tax, for both employee and employer. The results are stored in a
Payroll Period Record for each pay period.
- Print payroll checks with stubs on preprinted forms showing current
period and year-to-date (YTD) dollar earnings and deductions.
These same multi-purpose check forms can be used by the Accounts
Payable System. Pay checks can be printed for a single employee or
for a specified group of employees.
- Print payroll reports, such as Labor Edit Report, Hours
Distribution Report and Payroll Register, to provide an audit trail
of payroll data entered into the system, so adequate audit control
- Print generalized payroll reports with the capability to extract
specific payroll information from the online database, such as
"List the total FICA withheld this quarter for each employee".
- Print the Payroll Posting Report summarizing general ledger
posting information by GL account code for either manual or
automatic posting to the GL System (PR09). Either the accrual or
cash accounting method is supported.
- Print annual IRS W-2 forms and W-3 transmittal totals for each
employee paid during the year.
- Enable the user to change the federal and state tax rates used in
calculating payroll withholding and deductions by storing payroll
tax rates in separate Payroll Rates Records (PR14) by calendar year.
- Provide reporting capability by location (or department) and job
code (order number). Location and job codes used by this PR System
should be consistent with the location codes used by other
accounting modules within the company.
- Provide online inquiry capability to (1) display all data elements
on a single employee, and (2) display all hours and dollar amounts
associated with payroll earnings and deductions for an employee.
- Define an Active-Flag to prohibit the current online entry of labor
transactions for an inactive employee, yet keep that old code for
historical reporting purposes.
- Maintain vacation balance (hours available) per employee and
automatically calculate vacation hours earned per payroll period
based on hours worked (System-Option-28).
- Automatic voucher number assignment to new labor transactions
added to the PR System for positive control and audit trail. This
payroll feature can be overridden by the setting of System-Option-16 (DB03).
- Automatically assign GL expense account codes to a labor detail entry
based on standard expense codes setup for that employee to reduce
clerical coding errors. This payroll system objective minimizes
the clerical data entry workload.
- Maintain an Employee Master Record for each employee that receives
a computer-printed payroll check. Information in the
Employee Master Record includes name, address, marital status,
hourly salary, voluntary deductions, labor distribution account
codes and other information affecting payroll.
- Provide source document control over input labor transactions to the
computer by establishing batch numbers.
- Provide the capability to create custom PR reports where the user
defines the data fields to be selected, sorted and printed (DB12).
- Automatically display a detail record (Employee Master Record or
Labor Detail Record) when function key F7 is pressed from data
entry procedure PR01 and from inquiry procedure PR10. This
payroll objective enables the operator to quickly drill down
to more information.
- Handle any fiscal year for accounting purposes, even one different
from the calendar year, through the use of a separate accounting
period number (YRMO) field.
- Each labor transaction is associated with a specific payroll period
(YRNO) for control purposes, which is different than the
financial accounting period.
- Verify state code and ZIP code (first 3 digits) associated with
an employee address. The Canadian province code is validated when
the ZIP code is not numeric.
- Automatic employee number assignment whenever the employee name
initials are entered as the employee number for faster employee number
lookup. Employee initials are manually or automatically set in the
Employee Master Record.
- Print quarterly and annual employer reports, including IRS 940 and
IRS 941. The California DE-3 form can be printed.
- Provide system options in the Company Control Record to handle
6-digit or 8-digit dates for user preference.
- In addition to online processing, batch job processing is supported where
PR report requests are entered online for later batch processing.
A General Payroll Report (PR07) can be printed at any time covering
payroll data for the year-to-date, quarter-to-date or for any payroll
period. This general report writer allows the user to define the report
columns by specifying specific dollar codes or hour codes. This report
provides a flexible method of organizing payroll data by time period and by
type of payroll activity. It can be used for management purposes and to
prepare documents for federal and state agencies.
The PR System procedures that can be run by the user are identified in the
Payroll System Menu document.
More Information on the PR Software:
For additional information on this online Payroll software,
please e-mail Bill Legler in the SF Bay Area, California
or go to the main Payroll System main page.
Version 11.4 (2014). All rights reserved.