Occasionally, you may have to re-enter a payroll check using the Manual Check window in Payroll.
Transactions | Payroll | Manual Checks
Payroll Manual Check Adjustment Entry Window
This window can be used to enter three transaction types:
- Beginning Balances – Recorded as checks with a gross and net amounts, but do not post to the general ledger or bank reconciliation
- Manual Check – Recorded as checks with a gross and net amounts, do update general ledger and bank reconciliation
- Adjustment – The gross and net must be zero; this type is used to move amounts between codes. For example, moving pay recorded under one pay code to another pay code.
When entering a transaction in this window, you can select a Batch ID (highly recommended to allow you to review the transaction before posting) and then select:
- Checkbook ID (if using Manual Check type)
- Check number (if using Manual Check type)
- Check date (very important for proper reporting)
- Posted date (very important for proper posting)
- Employee ID
Click the “Transactions” button to enter the individual transactions to appear on the check.
Transactions | Payroll | Manual Checks | Transactions Button
Payroll Manual Check Transaction Entry Window
What is unique about manual checks is that NOTHING is calculated for you. You must enter every aspect of the transaction, from the taxes to the taxable wages. If you click the “Transaction Type” drop-down list, you will see all of the different transaction types available.
You can see now how mistakes are possible. For example, when you select a Pay Code transaction type, you need to make sure that the correct department, position, state, local, SUTA state and workers comp codes are populated so the wages are reported correctly. However, the most common issues are around the Federal Tax, FICA Soc Sec Tax, FICA Medicare Tax, State Tax and Local Tax transaction types. When you select one of these types, special fields are displayed for taxable wages and, in the case of FICA, the employer’s portion of taxes.
You not only need to record the amount of tax taken out of the check, but you also must record the correct amount of taxable wages to be reported for this tax and, in the case of FICA, the correct amount of employer’s FICA tax. Again, none of this is calculated for you, so be very careful.
- Amount – Tax Amount
- Taxable Wage – Wage Amount to be reported as taxable for this tax
- EFIC Amount – Applicable to FICA only, the tax amount for the employer’s portion of the tax
To further complicate matters, none of these fields appear on the edit list for manual checks.
Transactions | Payroll | Manual Checks | Printer Icon
Note the tax amount is displayed, but not the taxable wages, and the employer FICA tax amount is only displayed in summary. Unfortunately, these common mistakes will impact the amounts on the 941 report and payroll summary, causing these reports not to reconcile as you might expect.
The lesson here is to make sure you review the actual transactions and not rely solely on the edit list for your review.