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Payroll Categories Overview
A paycheck normally consists of five elements: wages, accruals, deductions, taxes and employer expenses. Collectively, these elements are referred to as payroll categories. Before you begin writing paychecks to employees, you’ll create the payroll categories that are used by your business and are required by law, and then you’ll assign each employee the payroll categories that apply to him or her. Then, when you use the Write Paychecks window to pay an employee, the payroll categories you’ve assigned to the employee will automatically determine the various amounts that are associated with the paycheck.
A set of payroll categories is automatically created for you when you use the MYOB Accounting Plus Easy Setup Wizard. It’s possible, however, that this default set of payroll categories doesn’t fully suit your company’s payroll needs. If this is the case, you can create the payroll categories you need.
Please note that wages, accruals, deductions and employer expenses must be assigned to employees before they can be used on paychecks. If you choose not to assign the new wage, accrual, deduction and employer expense to employees using the procedures listed below, see To enter payroll details (employees only) for more information.
In Accounting Plus, money paid to employees forlabor or services is referred to as wages. Wages are determined on an hourly, salary or other basis. Some examples of wages are salary, bonus, commission and overtime. In addition, some other forms of payment, such as some types of employee benefits, are also considered wages for tax purposes, and are referred to as non-cash wages. Company car benefits, excess life insurance and incentive travel costs are all examples of non-cash wages.
All types of employee payment, regardless of whether they’re based in cash, need to exist in the Accounting Plus system so you can pay your employees properly.
Click below for the step-by-step procedure:
In Accounting Plus, accruals are hours that accumulate on paychecks that help you pay special wages, such as vacation pay or sick pay.
When you create an accrual in Accounting Plus, you’ll link it to an hourly wage. Whenever you pay that particular hourly wage, the accrual hours associated with that wage will be automatically decreased the appropriate amount. For example, if you include a week’s worth of vacation pay on an employee’s paycheck, that employee’s vacation accrual will be decreased by the number of hours in one work week.
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In Accounting Plus, deductions are any amounts other than taxes that are subtracted from an employee’s gross pay.
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In Accounting Plus, employer expenses are your company’s costs of having employees. Employer expenses are calculated on employees’ paychecks, but they don’t affect the employees’ net pay; instead, they affect the amounts you must contribute to the employee (such as pension contributions), to the government or to other institutions.
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In Accounting Plus, payroll taxes are amounts that are calculated and deducted from employee paychecks from laws established by government taxation authorities.
Since tax laws change frequently, it’s important that you use the most up-to-date payroll tax amounts and percentages when you write your paychecks. To keep your payroll tax calculations current, payroll taxes are administered in Accounting Plus by the use of special tax tables, which are included in your Accounting Plus package. To learn the date of the payroll taxes loaded in your data file, click the Payroll Categories button in the Payroll Command Center. When the Payroll Category List window appears, click the Taxes tab. Click on an arrow next to any tax in the taxes list. The Tax Table Information window opens, and the Tax Table Revision Date is shown.
Since the accuracy of your payroll records is at stake, you can’t add, change or remove any payroll taxes from Accounting Plus’s tax tables. However, you can receive up-to-date tables from Accounting Plus automatically for a modest fee, whenever payroll tax laws change. See http:// www.myob.com/us/service/techsupport/myob_supportplans.htm to learn more about updating your payroll taxes.
Payroll taxes must be assigned to employees before they can be used on paychecks. See To enter payroll details (employees only) to learn more about entering an employee’s payroll information.
Occasionally, you’ll find it necessary to make a change to a payroll category.
You can change any accrual, deduction or employer expense in the Accounting Plus system. You can also change any wage, except the Base Salary and Base Hourly wages.
Accounts are linked to payroll categories so all payroll-related amounts can be tracked properly. Default payroll linked accounts are assigned automatically when you set up Payroll, so you may not need to change them. If you want to change an individual wage, deduction, accrual or employer expense’s linked account, you can.
You can have only one wage expense account for each employee. However, it can be changed in the Employee Payroll Information window for that employee.
Since the accuracy of your payroll records is at stake, you can’t add, change or remove any payroll taxes from Accounting Plus’s tax tables. You can, however, change the account that you want to use to track the payroll taxes that you withhold from paychecks.
Some of the payroll taxes in the Accounting Plus system have special rules or situations that are difficult to represent in the tax table format that’s displayed in the Tax Table Information window. If you ever see an “empty” Tax Table Information window when you believe some numbers and percentages should be displayed, don’t worry; the proper tax information does exist -- it just can’t be shown in the window.
Click below for the step-by-step procedures:
To change an employee’s wage’s linked account
To change a deduction's linked account
There may be times when you want to remove a payroll category. When this is the case, you can quickly remove such an element from your records.
You can remove any accrual, deduction or employer expense in the Accounting Plus system. You can also remove any wage, except the Base Salary and Base Hourly wages.
Wages, accruals, deductions and employer expenses that have been recorded on current paychecks -- that is, paychecks that have been recorded in the current payroll year -- can’t be removed. You can remove a wage only after the record of the paychecks on which the wage appeared is purged from your data file. (In most cases, this means that you probably won’t be able to remove the wage until after you start the next payroll year.)
Since the accuracy of your payroll records is at stake, you can’t add, change or remove any payroll taxes from Accounting Plus’s tax tables.
To learn the date of the payroll taxes loaded in your data file, click the Payroll Categories button in the Payroll Command Center. When the Payroll Category List window appears, click the Taxes tab. Click on an arrow next to any tax in the taxes list. The Tax Table Information window opens, and the Tax Table Revision Date is shown. See http:// www.myob.com/us/service/techsupport/myob_supportplans.htm to learn more about updating your payroll taxes.
Click below for the step-by-step procedures:
Payroll Categories Overview