Making Adjustments on the Payroll
Preview Window
CAUTION! Making changes on the Payroll Preview window should be done ONLY during setup when you are entering year to date payroll history for quarterly and year end reporting. Follow the instructions provided in the Learning Companion. Thereafter, any changes made on preview will affect your subsequent payroll calculations and reports. Here’s a review of the effects preview adjustments have:
All deductions that are based on earnings are calculated on the original wages entered. For example, if you adjust wages of $500 to $600, all taxes and union/benefit plans and employee withholdings are still calculated on the $500.
Using the example above, note the amounts that are recorded in the various payroll tables when the payroll is posted:
§ The Employee History and the Payroll Earnings Tables are updated with the adjusted amount ($600.00).
§ Employee Summary Table, however, is updated with the original amount ($500.00). When you run your 941a and your W-2s, Millennium puts a summary of quarterly or year to date amounts from this table into the Payroll Summary table for the report to read.
§ For FICA and Medicare Millennium self-corrects on the following payroll run; i.e., an under deductions is offset by an automatic over-deduction on the next paycheck.
§ For Federal and State tax, there is no self-correction on the next paycheck.
§ For Benefit/Union Plans three is no self-correction on the next paycheck. Any adjustment to the company paid portion of a benefit/union plan calculation results in an out-of-balance JE. Millennium calculates the expense account amount without regard to adjustments on the preview screen and adds the difference between the original calculated amount and the preview screen adjustment to the employees’ wages.
Example: Wages of $1000.00
Deduct 3% IRA <30.00>
3% match doubled on Preview 60.00
Millennium adds the $60.00 employer’s contribution to the gross wages as non-taxable income and deducts the employee’s contribution. In effect this adds $30.00 to net wages.
§ For FUI, SUI and Payroll Insurance there is no self correction on the following payroll. Any adjustments to the FUI or insurance accrual amount results in an out of balance JE. Millennium calculates the expense account amount without regard for the preview adjustments but uses the adjusted amount for the liability account posting.