Welcome to our Payroll Overview

1. Welcome to our Payroll Overview

2. Payroll Demonstration This demonstration will take you on a short guided tour of our software. The demo is divided in two sections, the first will step you through some of the setup files. The second section will show you some of the programs used to process a payroll. Each slide will contain a screen image with a description of the fields on the screen. After you have reviewed a slide click on the left mouse button or hit enter to advance to the next slide. To re-display a viewed slide use the backspace key.

3. Main Menu This is the Payroll Maintenance Menu. We will look at each item in the menu and follow the logical flow for a typical system setup.

4. Payroll Implementation Flow We will look at the tables based on this flowchart. The chart outlines a typical implementation in that we first deal with the background tables followed by employees.

5. Parameter Maintenance This function allows you to maintain the system parameters and are used when setting up a new Payroll Company. Each parameter can be reviewed and edited. Parameters are system switches, that is, they direct the software function. They are system defaults used in different areas of the software. For example, the Frequency of Run will define the default frequency; monthly, semi-monthly, bi-weekly, and weekly. An employee can have a different frequency but the default would be defined as a parameter.

6. Pay Period Maintenance This is the pay period maintenance function. It represents the calendar that maps the payroll system. This function allows you define your pay dates and pay period ending dates. You also define which month, quarter and year you are operating in. The accrue switches allow you to choose which pay periods accrue vacation and sick pay (tab folder not shown). You can also specify when to run an alternative pay frequency. The G/L year and period are determined by pay period. The interface to the G/L is also determined by pay period.

7. Federal Tax Table The Federal Tax table contains the FICA, Medicare, and FUTA factors. The table is driven by the year allowing for entering the information prior to year end. Also, this feature allows for re-calculation of taxes for a prior year.

8. Tax Authorities The Tax Authority Table contains tax rates and wage levels for all tax jurisdictions. The page viewed here shows you the annual levels with their percentages. Our payroll annualizes the gross in order to calculate tax therefore all tables contain annualized levels.

9. StateUnemployment The State Unemployment rates and maximums are stored in this table. This table will be expanded to allow for a year and deduction category (EBD) Notice that the State ID is also stored here. The W2’s will retrieve that information from this file.

10. Workers Comp Workers Compensation allows for the recording of the compensation code and the rate associated with that code. Another function (not shown here) allows you to store a State maximum. The compensation code is then linked to the employee.

11. Rate Codes This is rate code maintenance. It is useful when you have a number of employees being paid at the same rate. If that rate needs to be changed, one change here will be effective for each employee associated with this rate code.

12. Vacation History Vacation History Maintenance is used to make accruals, payments or adjustments to the vacation history of an employee. Every accrual and payment is stored in this file. Every accrual and payment is stored in this file allowing for a history of every transaction. Reports are available that show the status of the sick pay at any point in time.

13. Sick Pay History Sick Pay History Maintenance is used to make accruals, payments or adjustments to the sick pay history of an employee. Every accrual and payment is stored in this file allowing for a history of every transaction. Reports are available that show the status of the sick pay at any point in time.

14. Time Banks Time Bank History Maintenance is used to make accruals, payments or adjustments to an employees time bank. An employees time can be banked to any number of time banks allowing for banked overtime or double time. In fact, any time can be banked. The system allows for payouts of banked time during the payroll process.

15. Keywords This is the Payroll Keyword Function. Payroll keywords are used by user defined formulas. User defined formulas are used to define benefits or deductions. The formula can use a combination of keywords, function keywords (next frame) and logical operators (if, then, else, minimum, etc) to accomplish a task. For example we could define a deduction as being a function of a percentage of gross pay less overtime. When you use a payroll keyword in a formula, the value in the file and field specified for this keyword is used as part of the formula. Keywords are the ‘building blocks’ of a formula.

16. Function Keywords This is the Payroll Function Keyword Maintenance function. Payroll function keywords are used in user defined formulas. When you use a payroll function keyword in a formula, the formula associated with this function keyword is inserted into the formula during formula calculation. The highlighted function will calculate the annual salary as a function of the employees frequency. If the employee is classified as hourly then the annual salary would be the employees rate (eg 10.00) multiplied by the number of hours in a typical work week (eg 40) multiplied by the frequency of pay (eg 52). In our example the annual salary would be 20,800.00. This formula could be used in a life insurance benefit calculation where the premium might be a function of the annual salary.

17. Shifts Payroll Shift Maintenance allows you an infinite number of shift codes. These shift codes are entered during time and entry posting. You can default a shift code in employee maintenance in order to facilitate time entry. You choose which EBD number to associate with your shift codes.

18. EBD’s are categories that will capture the payroll financial information by employee. The G/L will be coded on the EBD. G/L over-ride can be done by department or employee allowing for maximum flexibility in your coding structure. EBD’s are assigned (using employee fixed maintenance) to individual employees for: Extra Deductions. State Deductions. Benefit Tracking. Etc. Earnings Benefits and Deductions(EBD’s)

19. EBD Types • E = Earnings • TB = Taxable Benefit • NB = Non-taxable Benefit • NE = Non-taxable Earning • D = Deduction • ES = Employer Share

20. EBD’s General Information EBD’s are the categories that structure the payroll system. Checks are made up of an accumulation of EBD details. The G/L codes are coded to the EBD which offers the ability to track detail. EBD’s can be restricted by company. The type defines which kind of EBD we are looking at (this example is an earning EBD).

21. EBD’s Switches This screen shows you the system switches. The hours ok switch defines whether hours and rate should be applied to this earning. The accrue switches allow you to define whether or not vacation or sick pay should be accrued on this earning. The workers comp switch determine whether workers compensation should be calculated on this earning. The tax switches allow you to define which taxes are to be deducted from this EBD.

22. EBD’s Formulas - 1 This tab folder illustrates a formula used to calculate a 401k deduction. In this example 6% of all earnings and taxable benefits will be calculated for employees who are assigned this 401k plan.

23. EBD’s Formulas - 2 The formula below is an example of a deduction involving a more complicated calculation. This formula first determines the employees annual salary. If the employees salary is greater than $50,000 then this formula will calculate the minimum of 3.25% of his earnings or the contents of the DENT-MAX variable. The minimum of the two becomes the value of the deduction. If the employees salary is less than $50,000 then the same comparison is made except that 2.25% of earnings is compared to DENT-MAX. if |annsal| > 50000 then minimum (|E| * .0325,|Dent-max|) else minimum (|E| * .0225, |Dent-max|)

24. Employee MaintenanceThe next few slides illustrate how employee data is entered and maintained.

25. Employee Maintenance - General We will now show you how we define our employees. Similar type fields are organized in tab folders as shown on the screen. The first tab folder contains the name and address fields for the employee as well as some demographic information.

26. Employee Maintenance - Salary This is the salary information screen of employee maintenance. It stores the salary and rate of each employee. The salary-hour switch defines the way in which to pay an employee. The hours field is used to default the standard hours during time posting.

27. Employee Maintenance - Codes The vacation code field ties into the vacation table defined for this employee. The sick pay code field ties into the sick pay table defined for this employee. The compensation code ties into the workers compensation file and determines the rate in which to calculate for this employee. The direct deposit switch is used to identify employees enrolled in a direct deposit program.

28. Employee Maintenance - Exemptions This is the tax exemption screen of employee maintenance. Federal and state allowances are stored here and used when the system calculates federal and state taxes. In some cases employees may be exempt in which case the system will not calculate the specified tax for that employee.

29. Employee Maintenance – Direct Deposit The direct deposit screen of employee maintenance allows you to set up multiple accounts in multiple institutions. The %/$ method field allows you to put either a specific amount or a percentage of the gross into any number of accounts. The priority allows you to name which account to use first. EX: priority 1 $100 to account 123 priority 2 $ 100 to account 456 priority 3 100 % of whatever remains to account 789

30. Employee Maintenance - Deductions This is employee fixed maintenance which also has a menu entry of its own on the maintenance menu. It has a choose bar which allows you to easily create new fixed EBD’s. Fixed maintenance is used to determine all the deductions and employer shares that must be calculated for this employee. Only state taxes, benefits, 401K Plans, overriding G/L codes and overriding formulas need be set up here. The system will automatically calculate the Federal, FICA, Medicare, SUI and FUTA taxes and need not be set up here.

31. Deduction Detail This is an example of an employee fixed maintenance record. In this example $10 is being deducted every pay period. The active switch allows you to set up fixed records before they are instituted. The balance amount is used for EBD’s that have a limit (like 401K). Carry forward allows you to carry deductions forward if there is no check. Every check allows you to set up the frequency of the EBD i.e. if there is more than one check should it be deducted on every check.

32. Thenext few slides will illustrate a typical Payroll run. The flowchart in the next slide will show the pay run flow. Perform the payroll initialization clear the previous pay period. Run Automatic Transaction Creation which creates transactions for salaried employees and fixed deductions. Post time. Run Batch Check Creation to create all checks if there is a problem then run Back Date checks for Re-run to undo the checks, make your adjustments to the appropriate transactions and then run Batch Check Creation Again. Print your checks and/or direct deposits Run your Management reports and G/L interface. Transaction Processing

33. P/Y Procedural Flow

34. Initialization This is the payroll initialization function. It is used each pay period to reset all switches and to advance the payroll system to the next pay period. It also clears the current , month to date, and year to date buckets based on your current pay period.

35. Post Time Post transactions using the Post Time functions.

36. Post Time – Vacation Tab Post regular time by rate allows you to enter the hours for regular pay, any overtime or double time pay and any dollar adjustments to be made. It also allows for any shifts worked. Notice that both the department and the rate can be overridden during time posting.

37. Post Time – Transaction Tab Post other time worked allows you to post to a specific EBD.

38. Post Time – Transaction Edit This screen allows you to edit the transaction detail.

39. Post Time - Summary The summary tab shows a summary of all the transactions posted for this employee.

40. Manual Checks Post manual check may be run at any time. You may create your own deductions and employer shares or choose calculate deductions and have the system calculate them for you. Check details may be edited before the check is created.

41. Check Run After all the transactions have been posted the next step is to run the Payroll Transaction List and verify that all transactions have been properly entered. If you are satisfied that all is well then run Batch Check Creation to create your checks. This function will automatically print a check register. If all is well then run the Bank Deposit List, Bank Transmittal and print your checks.

42. Management Reports This is the management processing menu. Here you’ll find all the labour distribution reports. Quarterly reports and year end reports such as W2’s are found on this menu.

43. Inquiries This is the inquiry menu. All inquiries are nested and able to run off each other by choosing the ‘zoom’ option within the programs.

44. System Management This is the system management menu. Many user sensitive programs reside here and should be protected against unauthorized use. You’ll find the back date, initialization, interface and date sensitive purges on this menu.

45. We hope you enjoyed this demonstration. The next slide will tell you how to contact us for more information.

46. How to reach us Phone 514-738-6680 Fax 514-738-8538 Web http://www.gtrdata.com E-mail gtr@gtrdata.com