Prior to entering YTD Adjustments, you must have at a minimum your Payroll Items (Earnings, Deductions, Additions, Taxes, and Employer Liabilities) setup. For information on creating Payroll Items, please view the training video series for Payroll Setup.
Gathering Required Information
Any historical payroll that has been paid for the current year (1/1/xx to your “Go Live” date) needs to be entered as Payroll YTD Adjustments. You can enter these adjustments in lump sum amounts by quarter (1/1/xx to 3/31/xx, 4/1/xx to 6/30/xx, 7/1/xx to 9/30/xx, 10/1/xx to 12/31/xx). If you want a complete breakout, you can enter the historical paychecks by Pay Date. For a walk thru of a Payroll YTD Adjustment, please view the training video Payroll YTD Adjustments. To enter the historical payroll you will need to do the following:
- Run your Payroll Summary Reports from your current software program. These reports need to run by quarter or Pay Date.
- In Total Office Manager, open the Payroll YTD Adjustments form. YTD Adjustments on the Setup Navigator or Employees | Payroll YTD Adjustments.
- From the Employee Summary Information, ensure that the YTD Adjustments tab is selected on the left and click the New Adjustment button.
- Enter the Date that the adjustment is effective.
- If you are entering YTD Adjustments by quarter, please enter the last day of the quarter (3/31/xx, 6/30/xx, 9/30/xx, 12/31/xx).If you have historical paychecks that fall within a quarter that is not closed, use the last Pay Date that employees received a paycheck.
- If you are entering YTD Adjustments by the paycheck Pay Date, enter the date of the paycheck.
- In the upper right corner of the form, the From & To dates should be for the quarter you are entering the YTD Adjustment.
- In the To: drop down, select the employee that you are entering information for.
- In the Memo, enter a description for the purpose of the YTD Adjustment.
- From your Payroll Summary reports, enter the following:
- Total amount of earnings for the employee for each Payroll Earning that they received wages earned.
- Total amount of deductions for the employee for each Payroll Deduction that was withheld.
- Total amount of taxes for the employee for each Payroll Tax that that was withheld.
- Total amount of liabilities for the employee for each Payroll Employer Liability that was calculated.
- Total amount of additions for the employee for each Payroll Addition that was paid.
***Please ensure that you are on the appropriate tab (Left side of the YTD Adjustment form) when entering the different payroll amounts. ***
- In the Affected Accounts section at the bottom of the form, select the option for Payroll Liability and Expense Accounts Only. Selecting this option will properly affect the Vendor Balance for the liability accounts associated with the taxes, deductions, and liabilities. As with any transaction that affects your financials, it is always best to seek the advice of your professional certified public accountant.
- Save the YTD Adjustment.
- Repeat this process for each employee that needs historical payroll data entered.
Once you have completed the historical paycheck entries, you need to inform Total Office Manager of the Payroll Liability amounts that were paid in your prior accounting software. For a walk thru of a Payroll YTD Adjustment, please view the training video Prior Payments of Liabilities. To do this, you will need to enter a Prior Payment of Liability. Prior Payments are entered as followed:
- Run your Payroll Liability Balance Report from your current software program. This report needs to run for the calendar year (1/1/xx to 12/31/xx).
- In Total Office Manager, open the Payroll YTD Adjustments form. Employees | Payroll YTD Adjustments.
- On the Setup YTD Payroll Amounts, click the Next button.
- From the Employee Summary Information, ensure that the Prior Payments tab is selected on the left and click the New Adjustment button.
- Enter the Date that the adjustment is being made.
- The Entry # is automatically populated. You can change this at your discretion.
- Enter the Effective Date. This date should be the date that the liabilities have been paid through. If you are entering Prior Payments that fall within a quarter that is not closed, you will need to make two Prior Payments adjustments. One for all payments made prior to the quarter that you are currently in and one for the total of payments made for the existing quarter as of the last liability payment date.
- Select the radio button for Company as the Adjustment is for.
- In the Payroll Item drop down, select each deduction, tax, and liability that you have made a payment for in your prior software program.
- In the Decrease column, enter the total amount that was paid against the payroll item selected.
- In the Memo, enter a description for the purpose of the Prior Payment Adjustment.
- In the Expense, Asset or Liability Account for Employee Liabilities, select the Opening Balance Equity account. *** If you do not see this account, you may need to disable your Smart Account Selection Filter in your Main Chart of Account Preferences. ***