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Payroll Accruals

Payroll Accruals. TxEIS Payroll Accruals. Region XVIII Information Systems. I. Accrue = Accumulate. Why do we accrue ?

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Payroll Accruals

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  1. Payroll Accruals TxEIS Payroll Accruals Region XVIII Information Systems

  2. I. Accrue = Accumulate Why do we accrue? 1. From the TEA Accounting Guide: “Expenditures should be recorded and reported in the period in which they are incurred. Therefore, unpaid salaries and related benefits that have been earned but not yet paid should be recorded as accrued expenditures” (liabilities). 2. The process of accruing salaries enables a school district to accurately reflect expenses after each payday. 3. Enables the district to maintain earned but unpaid salary amounts in School YTD for each employee. 4. All businesses and city and state governments accrue pay earned in one fiscal year and not paid until the next fiscal year. 5. Accruing enables districts to fully expense salaries paid out of federal funds by June.

  3. II. Calculation • Formulas: Standard Pay Rate = Contract Amount ÷ 12 Daily Rate = Contract Amount ÷ Number of Days in Contract Monthly Amount Expensed = Daily Rate X Number of Days Worked Monthly Amount Accrued = Monthly Amount Expensed – Standard Pay Rate -or- Monthly Amount Accrued= Number of Days Worked X (Contract Amount ÷ Number of Days in Contract) – (Contract Amount ÷ 12)

  4. Illustration

  5. III. Accounts

  6. IV. TxEIS End-of-Year (August) Accruals

  7. Step 1

  8. Step 2

  9. Step 5

  10. Step 5 (continued)

  11. Step 5 (continued)

  12. Step 6

  13. Step 6 (continued)

  14. Step 6 (continued)

  15. Step 7

  16. Step 8

  17. Step 9

  18. Step 9 (continued)

  19. Step 10

  20. Step 10 (continued)

  21. Step 11

  22. STOP

  23. Step 12

  24. Step 12 (continued)

  25. Step 13

  26. Step 14

  27. Step 15

  28. V. TxEIS Monthly Payroll Accruals

  29. Step 1 The Pay Dates must match the Pay Dates Table.

  30. Step 2

  31. Step 2 (continued)

  32. Step 2 (continued)

  33. Step 3

  34. XI. Balancing Accruals Monthly

  35. HRS3050: School YTD Report

  36. Finance GL Account Summary: Object 2161

  37. XIII. Correcting Accruals

  38. 1. Accrual Variance Extract

  39. 1. Accrual Variance Extract (continued)

  40. 1. Accrual Variance Report (continued)

  41. 1. Accrual Variance Extract (continued)

  42. 2. Zero School YTD Accruals

  43. 2. Zero School YTD Accruals (continued)

  44. 2. Zero School YTD Accruals (continued)

  45. 3. Special Adjustments

  46. Finished!! Questions

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