Sage DacEasy2012PayrollUser’s Guide

Sage DacEasyPayroll

CopyrightInformation in this document is subject to change without notice. Company names and dataused in examples herein are fictitious unless otherwise noted. No part of this document maybe reproduced or transmitted in any form or by any means without the express writtenpermission of Sage Software Inc, 1715 North Brown Rd, Lawrenceville, Georgia 30043. 1998-2011 Sage Software, Inc. All rights reserved.Printed in the United States of America.This document, the associated software, and the associated online documentation are theproperty of Sage Software, Inc. and are loaned to the user under the terms of the Limited UseLicense Agreement. Unauthorized copying or use of the software or any associated materialsis contrary to the property rights of Sage Software, Inc. and is a violation of state and federallaw. This material must be returned to Sage Software, Inc. upon demand.TrademarksSage, the Sage logos, Sage DacEasy, and the Sage product and service names mentionedherein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities.All other trademarks are the property of their respective owners.Some of the artwork in this manual is modified from illustrations provided by the CorelCorporation.ii

Table of Contents Chapter 1WelcomeOverview . 2Key Features. 2Additional Features . 10Chapter 2Getting StartedOverview . 14Starting Sage DacEasy Payroll . 14Exiting Sage DacEasy Payroll . 15Working With Sage DacEasy Payroll . 16Opening and Adding Companies . 16Setting the Default Company. 18Copying Companies . 18Creating and Restoring a Backup. 19Using the Utilities Feature. 21Chapter 3Quick TourOverview . 24Getting Started Checklist . 24Understanding the Payroll Process Checklist . 26Periodic Routines Checklist . 29Monthly Routine Checklist . 29Quarterly Routine Checklist. 30Yearly Routine Checklist . 32Chapter 4Setting UpSetting Up Default Information . 36Setting Up System Preferences. 36Interfacing Sage DacEasy Payroll with Sage DacEasy Accounting. 37Setting Up Job Tracking . 38Files Shared with Sage DacEasy Accounting . 39Setting Up Company Information. 40Editing Standard Earning Code Descriptions . 42Setting Up Security . 42Setting Up the Printer. 43iii

Table of ContentsSage DacEasy Payroll User’s GuideSetting Up Tax Table Information.44Setting Up Federal Tax Tables . 45Setting Up State Tax Tables . 48Setting Up Local Tax Tables. 51Setting Up Code Information .52Adding and Editing Codes . 53Adding and Setting Up User Defined Liabilities. 54Adding and Setting Up User Defined Earnings . 56Adding and Setting Up User Defined Deductions. 57Setting Up Department Information.59Assigning Account Numbers . 59Adding or Editing Departments . 60Setting Up Employee Information.62Adding or Editing Employees . 62Chapter 5Processing PayrollWhen to Use the Transaction Entry dialog box.66Learning About Negative Pay . 67Processing a Payroll Using the Transaction Entry. 67Processing a Payroll Using Renew Payroll . 70Processing a Payroll Using Blanket Entry . 71Payroll Processing with Groups. 73Editing a Transaction After Printing Checks . 75Using Time Cards .76Entering Time Cards . 76Printing the Time Card Report. 78Calculating Payrolls .79Canceling the Automatic Payroll Calculation. 82Printing the Payroll Register .83Printing Payment Forms .85Printing Payroll Checks. 85Printing Direct Deposit Advices . 88Correcting Unposted Payroll Entry Errors . 89Printing the Check Register.90Printing the Department Report.91Creating the Direct Deposit File .93Prenoting a Direct Deposit . 93Creating a Generic ACH Direct Deposit File . 95Creating an NPC Direct Deposit File . 96Posting Payroll Transactions.97Printing the Posting Report . 99iv

Table of ContentsSage DacEasy Payroll User’s GuideReversing Payrolls. 100Using AutoReverse Posting . 100Manually Reversing a Payroll. 103Making Tax Deposits . 105Making 940 Tax Deposits . 105Making 941 Tax Deposits . 107Making State Tax Deposits. 108Making Local Tax Deposits . 110Chapter 6Management ReportingOverview . 114Printing the Employee Directory Report . 114Printing Employee Labels . 115Printing the Employee History Report. 116Printing the Detail Report. 117Printing the New Hire Report . 119Integrating With Microsoft Word. 121Printing the Transaction History Report . 123Printing the Codes History Report. 124Vacation/Sick time report . 125Print 1096 Forms. 126Chapter 7Periodic OperationsChecking for Tax Updates Online. 130Printing W-4s . 131Reconciling Checks . 132Purging Checks. 134Closing the Month. 135Printing State Quarterly Reports . 135Printing State Quarterly Worksheets . 136Printing the 941 . 137Printing the Schedule B. 138Closing the Quarter. 139Printing the 940 . 140Printing W-2s . 141Printing the W-3. 142Printing 1099s and 1096s . 143Creating Magnetic Media Files . 144Closing the Year. 145v

Table of ContentsSage DacEasy Payroll User’s GuideChapter 8Custom ReportingOverview.148Using the Query .150Using the Query Checklist . 151Completing the Header Area . 151Selecting Fields in the Column Selection Area . 152Selecting the Sort Order for the Query. 152Creating User Defined Fields . 154Limiting Records on a Query .155Establishing Criteria . 156Understanding AND/OR Logic . 157Understanding Joins. 159Printing the Query. 160Using the Publisher.161Using the Publisher Checklist . 163Completing the Header and Page Header Area . 163Completing the Detail Area . 164Completing the Group Footer Area . 164Completing the Report Footer Area. 164Previewing and Printing the Final Report. 166vi

Table of ContentsSage DacEasy Payroll User’s GuideChapter 9Glossary of Terms1099 Misc Form . 167940 Form . 167941 Form . 167ACH (Automated Clearing House) . 168Sage DacEasy Business Center . 168Code. 168Deduction. 168Direct Deposit . 169Earning . 169EIC (Earned Income Credit). 169Federal Withholding. 169FICA . 170FUTA . 170Liability. 170Magnetic Media . 171Medicare. 171New Hire Report. 171NPC (National Payment Corporation) . 171Prenote . 172Reconciliation . 172Schedule B . 172SDI . 172Social Security . 172Standard Codes . 172SUI . 173SUTA . 173Third Party Sick Pay (TPSP) . 173User Defined Codes . 173W-2 Form. 173W-3 Form. 174W-4 Form. 174W-4 Form . 174vii

Table of ContentsSage DacEasy Payroll User’s Guideviii

1WelcomeOverview2Key Features2Additional Features10

1WelcomeSage DacEasy Payroll User’s Guide Welcome OverviewWelcome to Sage DacEasy Payroll. Sage DacEasy Payroll makes automatingyour payroll a simple process, yet offers you the power and sophistication ofmuch more expensive payroll systems. For more than a decade, we have listenedto our customers’ suggestions to develop a robust payroll system with thefeatures needed to successfully grow a business.This User’s Guide assists you with setting up your company and details basicpayroll routines. For more detailed instructions on related or advanced features,the User’s Guide includes a “Related Help Topics” section. Each “Related HelpTopics” section in the User’s Guide lists the related topics included in the SageDacEasy Payroll Help system. Use the Contents tab or the Index tab in the Helpto locate the topic.Refer to the Getting Started Guide for assistance with using Help,documentation conventions and other methods of obtaining assistance withyour software. The Getting Started Guide also includes information on installingSage DacEasy and adding or converting company files with the Sage DacEasyBusiness Center. In addition, global Sage DacEasy features such as printing andusing the LookUp are explained.Note: If you choose to use the Sage DacEasy Business Center, and select ascheme with multiple Sage DacEasy programs, please note the following changeregarding menu selections. When this User’s Guide instructs you to select acommand from a menu in Sage DacEasy Payroll, select the Payroll menu in theSage DacEasy Business Center, and then proceed with the steps. For example, ifthe User’s Guide instructs you to select Copy from the File menu, you have toselect File from the Payroll menu in the Sage DacEasy Business Center, and thenselect Copy.Key FeaturesThe following information highlights some of the many powerful features inSage DacEasy Payroll.Note: For a list of key features common to all Sage DacEasy programs, refer toChapter 1, “Welcome” in the Getting Started Guide.2

Key FeaturesStand Alone Module or Interfaced with Sage DacEasy AccountingSage DacEasy Payroll can be run as a stand alone program or as an add-onmodule to Sage DacEasy Accounting. If you currently use Sage DacEasyAccounting, you can set up a direct interface to the Sage DacEasy AccountingGeneral Ledger module. Then, when you post a payroll, the appropriateaccounts are updated in the General Ledger automatically.Processing Payrolls EasilyPayrolls are a snap to process using the Transaction Entry, Time Card Entry andCalculate Payroll routines. You can enter any out of the ordinary payrollsituation, such as paying vacation or sick time using the Transaction Entryroutine. You can also enter time cards for your hourly employees using the TimeCard Entry routine, and the regular and overtime is automatically calculated foryou. The Calculate Payroll routine automatically calculates a full payroll for allother selected employees and calculates the liabilities and deductions foremployees with time cards and other manual entries you made using theTransaction Entry routine.Sage DacEasy Payroll lets you choose which employee pay type you want toinclude when you automatically calculate a payroll. This allows you to generatea payroll for only hourly employees if you want. You also have the ability tocalculate payroll for a select number of employees in a range or certainfrequencies.Renew PayrollThe Renew Payroll feature allows you to select any previously posted payroll andreuse that payroll as a template for a new payroll. The selected posted payroll isused to copy most of the transactions that you usually use when processing apayroll. For more information on this feature, refer to Chapter 5, “ProcessingPayroll."Blanket EntryThe Blanket Entry feature dramatically reduces the time and error associatedwith making payroll entries. You can define the common exceptions once, alongwith the set of employees affected, and Sage DacEasy generates the necessarytransactions for each individual employee. Once the transactions have beengenerated, you can continue the normal payroll process, as well as add nonconforming exceptions to individual employees if necessary. For moreinformation on this feature, refer to Chapter 5, “Processing Payroll."Automatic Employee Loan RepaymentWith the Automatic Employee Loan Repayment feature, it has never been easierfor your employees to pay off a loan or repay for supplies and equipment to thecompany.31

1WelcomeSage DacEasy Payroll User’s GuideThis feature allows you to create a loan for an employee that automaticallyrepays the loan as a recurring deduction. This works as a negative deduction thatautomatically stops calculating when the amount reaches zero. This type ofdeduction code also carries the balance to the next year after closing the currentyear. For more information on this feature, refer to the Help topic titled “Settingup a repayment deduction.”Increased Field SizesCertain fields in Sage DacEasy Payroll have been extended to accommodatelarger memos giving you more flexibility to provide detailed memoinformation. The employee memo field has increased from 30 characters to 40characters. In addition, both the payroll check memo and tax deposit checkmemo have increased from 20 characters to 40 characters.Select Individual Employees When Printing Checks and AdvicesNow you can print checks for only the employees you want in a single run, evenif they have nonconsecutive employee information. When you use this feature,a list of all employees in the range you select appears. You can pick only theemployees you want included when printing checks. This feature is alsoavailable in the new Direct Deposit Advice feature. For more information onthis feature, refer to Chapter 5, “Processing Payroll."Exclude Social Security Number On Payment FormsThis new feature allows you to protect your employee’s social security number,considered by most confidential information. At check and direct deposit adviceprint time, you have the option of masking the social security number.Exclude Routing and Bank Account Numbers on Payment FormsYou now have the option of hiding the bank account and routing numbers ondirect deposit advices and checks. These preferences are easily available at checkor direct deposit advice print time.OCReady Long Stub ChecksThis feature allows you to print more detail lines on your payroll check stubs.You can print up to 27 earnings and 27 deductions on the check as opposed tothe limited 10 from previous versions. Also, vacation and sick time print in anarea specifically designed for this purpose. To use this feature select OCReadyLong Stub Format as the Check Type option on the Payments Settings tab ofthe System Preferences dialog box. For more information on this feature, referto Chapter 5, “Processing Payroll."4

Key FeaturesDirect Deposit AdviceYou can print a Direct Deposit Advice also known as Direct Deposit Slips foremployees using direct deposit. This saves you time and money. You no longerhave to void checks for those employees using direct deposit to provide themwith their payroll information. For more information on this feature, refer toChapter 5, “Processing Payroll."Direct Deposit Disbursement ReportThis report for Direct Deposit Disbursements allows better reporting of theemployees’ payment history. The Direct Deposit Disbursement Report availablein Sage DacEasy is based on the Direct Deposit History, so it is always availablefor current or past payrolls. The Direct Deposit Disbursement Report that printsafter creating your Direct Deposit file includes payment information for thecurrent payroll.You also have access to past payment history by viewing and printing theDeposit History from the Edit Employee Information and Edit EmployeeAccumulations dialog boxes. You also have access to the new Direct DepositHistory information when creating custom reports in DacAccess and CrystalReports.Reconcilable Direct Deposit TransactionsIn previous versions, the Check Reconciliation routine could be complicatedand confusing when an employee was partially paid with direct deposit and acheck was printed for the remaining portion. This confusion was because aCheck Register entry was created for the full amount the employee was paid(both the amount paid by direct deposit and the amount paid by check) and notjust the amount for which the check was printed. Sage DacEasy creates CheckRegister entries for the amounts paid by check, as well as creates separate CheckRegister entries for the direct deposit payments. This feature allows you toaccurately track the Check Register information and reconcile your bankaccount.Employee Method of Payment HistoryPosted employee payment information is stored in the Payroll Detail Historyfiles. Unlike the previous versions, you can differentiate the amounts paid toemployees if they were paid by check and direct deposit.When printing checks or direct deposit advices, a snap shot of the current directdeposit information is stored in a temporary file. When you post a payrolltransaction, the information stored in the temporary file is transferred to thePayroll Detail History files. A new file is added to the Payroll Detail History fileset to store the records for direct deposit only. Only those employees that havedirect deposit are included in this new file.51

1WelcomeSage DacEasy Payroll User’s GuideOnce you post your payroll transactions, you can view the direct depositinformation in the Payroll Transaction History LookUp. To view this directdeposit information, select History from the Edit Employee Information orEdit Employee Accumulations dialog box, select a direct deposit transaction,and then click Deposit.AutoReverse PayrollIt is easier than ever to reverse a payroll. This feature allows you to automaticallyreverse the payroll quickly and accurately. You no longer have to manuallyrecord a payroll entry using the Payroll Register. Instead, you can select thepayroll transaction, and then select the employees within the payroll transactionyou want reversed. For more information on this feature, refer to Chapter 5,“Processing Payroll."AutoApply Regular EarningsStop manually calculating regular earnings for your employees when they takevacation or sick time. This time consuming task has been conveniently replacedwith the AutoApply button on the Transaction Entry dialog box. Whenentering a payroll for an employee, simply enter their vacation or sick time, andthen click AutoApply. The amount of regular time is automatically calculatedand inserted into the payroll entry for the employee. Now all you have to do isrun the Calculate Payroll routine to automatically calculate the employee’sliabilities and deductions. For more information on this feature, refer toChapter 5, “Processing Payroll."Calculate Payroll for Selected EmployeesYou can calculate a single payroll for only the employees you want, even if theyhave nonconsecutive employee codes. When you use this feature, a list ofemployees in the range you select appears. You pick only the employees youwant included in the payroll calculation. This feature is also available whenprinting checks and direct deposit advices and in the AutoReverse Payrollfeature. For more information on this feature, refer to Chapter 5, “ProcessingPayroll."View Payroll Transaction HistoryViewing your employee’s payroll transaction history is quick and easy. You haveseveral choices to view the payroll transaction history. A History button isavailable on the Edit Employee Information and Edit Employee Accumulationsdialog box that allows you to quickly view the payroll transaction history for theemployee. You can also print two additional reports.The Transaction History report is available in summary or detail. Theinformation on this report is similar to the Payroll Register, but includes onlyposted payroll transactions.6

Key FeaturesAnother report is the Codes History report. This report can be customized toprint the payroll history of individual codes. You can use this report to printyour vacation and sick time paid, or use it as a 401k report. For moreinformation on the payroll transaction history reports, refer to Chapter 6,“Management Reporting."Payroll Processing with GroupsMore flexible payroll processing! You may classify your payroll runs into definedgroups. For example, you may want to run payroll for a group of employees thatcontain both hourly and salaried employees. Payroll Groups consist of one ormore salaried or hourly employees that are processed in the same payroll run.Use Payroll Groups when you want to have payroll processing cycles segregatedby groups of employees with similar characteristics.Custom ChecksCustomize employee payroll checks to your company’s needs by positioninginformation based on your bank’s suggestions. You may print checks based ontemplates defined by you the same way as invoices, purchase orders and otherforms print in Sage DacEasy Accounting. To use customized checks in SageDacEasy payroll, setup Custom as the check printing option in Preferences, anddefine the check template to use.Audit TrailImprove auditing and defend against potential fraud. With this feature, you havea register of user activity in the system. Audit Trail records insertions, deletions,and modifications of the most relevant master tables in Sage DacEasy Payroll.This important enhancement keeps a record of the date and time of all changesto the Payroll Employee file and the Tax Tables.Customized LookupsAllows you to select the columns that appear in lookups, and the width of eachcolumn displayed. The feature also includes an option to export customizedlookups to an ASCII file. Records which have notes attached will be flagged inthe lookup with a note icon.Email Reports and FormsCurrently you may select whether to send a given report or form to the Printer,Screen, HTML, Excel, or whether to export the output to a comma delimited ortext file. This feature adds email to these options so that a form or a report canbe sent to an email address directly from within Sage DacEasy.71

1WelcomeSage DacEasy Payroll User’s GuidePrint 1096 FormSage DacEasy includes the ability to print Federal Form 1096. When usersprepare their 1099s they can print the summary data onto a pre-pr

Welcome to Sage DacEasy Payroll. Sage DacEasy Payroll makes automating your payroll a simple process, yet offers you the power and sophistication of much more expensive payroll systems. For more than a decade, we have listened to our customers' suggestions to develop a robust payroll system with the features needed to successfully grow a .