Workflow: Entering Special Payments and Deductions for Employees

When issuing salary or commission checks to agency employees you often need to add amounts for such things as mileage allowances/reimbursements or to take deductions for dependent insurance, etc. AMS360 makes it easy to enter these adjustments.

Salary Payments

  1. Open the Employee in the Employee Center.
  2. Click Actions > New Check. The Check for Employee form opens.
  3. Review the information defaulted into the General Information section of the form and change as necessary (bank account, type of check, etc.).
  4. Expand the Administrative Salaries section, and click Editon the appropriate GL # row to enter the gross salary amount and an appropriate description (Ex: Salary through 5-15-17). Click Update.
  5. Expand the Taxes – Employee Withholding section and click Edit on the appropriate GL # rows to enter the required tax withholding amounts. These amounts are entered as negative numbers. Click Update.

 

If your state has other types of withholdings (Ex: CA State Disability Insurance) change the account name for the city or county withholding account in Chart of Accounts setup to conform to the actual account name.
  1. If an amount is being deducted from the employee's check and then being forwarded on to a vendor, such as the health insurance carrier, expand the Employee Expenses and Reimbursements section and click Edit.

    Enter the Amount of the deduction as a negative amount to account #21160000, and a Description of the deduction (Ex: Sally Jones dependent health 5-15-17). Click Update. This general ledger account is subledgered by commissioned person (Execs, Reps) for reporting purposes.
 

Account #21160000 is a holding account until the vendor is paid, at which point this account is offset and brought to zero.
  1. For additions to a check which the employee is not required to repay, such as a mileage allowance supported by mileage records or reimbursement of travel expenses advanced by the employee, use the Other GL Accounts section to post the amount to the appropriate agency expense account.
  1. Build and reconcile the Commission Payable Statement. Click the Ready to Pay option in the Statement section, Statement Status group. The Pay Statement section expands.
  2. If payroll for your agency is:
Issued In-House

And you need to make additions/deductions, click the option, Create a Check for the Amount of the Statement. Credit/Debit the Appropriate Payroll Tax Liabilities and Expenses and Additional Voucher Lines.

Issued Through a Payroll Service

And you need to make additions/deductions, click the option, Create a Journal Entry for the Amount of the Statement. Clearing Commission Payables and Offsetting to Other GL Accounts.

  1. Expand the Taxes – Employee Withholding section and click Edit on the appropriate GL # rows to enter the required tax withholding amounts. These amounts are entered as negative numbers. Click Update.
 

If your state has other types of withholdings (Ex: CA State Disability Insurance) change the account name for the city or county withholding account in Chart of Accounts setup to conform to the actual account name.
  1. If an amount is being deducted from the employee's check and then being forwarded on to a vendor, such as the health insurance carrier, expand the Employee Expenses and Reimbursements section and click Edit.

    Enter the Amount of the deduction as a negative amount to account #21160000, and a Description of the deduction (Ex: Sally Jones dependent health 5-15-17). Click Update. This general ledger account is subledgered by commissioned person (Execs, Reps) for reporting purposes.
 

Account #21160000 is a holding account until the vendor is paid, at which point this account is offset and brought to zero.
  1. Use the Insured Accounts Receivable voucher type when commissions due an employee/broker are used to clear an uncollectible customer receivable balance. Enter a negative amount to credit the customer account and deduct the 'charge back' from the commission statement.
  2. Use the Other GL Accounts section to post adjustments to any accounts not covered by one of the specific sections indicated above.