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Setting up employees for in-house payroll

unavailable in ajeraCore unless you have the Payroll add-on

Set up general information for the employee.
If you are not already viewing the Employee window, from the Setup menu, click Employees.
Double-click the employee you are setting up.
Additional pay - To set up additional pay for employees, click the Pay Information tab. Otherwise, proceed to the next step.

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Pay

Enter the type of pay. If the pay you want is not already set up, click the New button from the Pay List window.

Calculation

Select the calculation method for the way you want to calculate the pay.

Amount

Type the amount, percent, or rate of this additional pay, depending on the calculation method you selected.

Note:

If the amount is zero, the additional pay is not included on the paycheck.

On Demand

If you do not want this additional pay automatically included in every paycheck, select this check box.

When running payroll, you can choose to include all on-demand Closed pays for all employees.

Note:

To include an individual pay on a payroll, set it up as a pay through the Company > Payroll menu and then add it on the Edit Paycheck window.

Supp

Select this check box to also automatically include this pay on a supplemental paycheck, such as a bonus.

If you want to include this pay only on supplemental paychecks, you must also select the On Demand check box.

Limit

If there is a yearly maximum amount or number of hours for this pay, enter it.

Limit Period

Note that the limit you entered is always per calendar year.

Auto Reduce

Reduce to

Reduce Month/Day

For a pay which has a type of Accrual.

Ajera accrues hours according to the options you selected when setting up the pay. If you want to accrue hours differently for this employee, change these fields as needed.

If you want to set the accrued hours to zero or reduce them at a specific time (such as at year-end), select the Auto Reduce check box and do the following:

In the Reduce To field, type the maximum number of hours to carry over. You can enter a zero to carry over no hours.
In the Reduce Month/Day field, enter the month and day when you want to reduce the hours. Ajera reduces the hours when you create a payroll that includes the month/day within its period beginning and ending dates.

Notes

Enter any notes.

Click the Payroll Taxes tab, and enter the following information.

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Federal filing status

Select the filing status the employee entered on the W-4 form.

Single	The employee files as single
Married	The employee files as married
Do Not Withhold	Wages are subject to tax but taxes are not withheld. Wages are included on the W-2.
Flat Amount	Type the amount you want withheld each pay period in the Federal withholding amount. For example, type 100 to withhold this amount for each pay period.
Percent of taxable	Type the percent in the Percent of taxable. For example, you enter 10. If federal taxable is 1,200, then 120 is withheld.
Exempt	Wages are exempt from this tax and the wages are not included on the W-2. There will be no taxable, subject to, and withholding amounts. It is rare that an employee is exempt from taxable wages. This usually applies to foreign workers.

Federal exemptions

Type the number of withholding allowances that the employee entered on the W-4 form.

Additional Federal withholding

Type the amount of any additional federal withholding that the employee entered on the W-4 form.

EIC status

Appears only if you set up Earned Income Credit (EIC) for the purpose of assigning advance Earned Income Credit (EIC) to eligible employees.

If the employee is not eligible for EIC, leave the EIC status as Not Applicable. Otherwise, select the appropriate EIC status for the employee.

Covered by retirement plan

Select this check box if the employee is covered by your company's retirement plan.

When W-2 forms print, the retirement plan box is checked on the W-2 form for this employee.

Covered by HIRE ACT

Applies only if you are running payroll for 2010.

Select this check box if you are not paying employer Social Security for this employee pursuant to the federal Hiring Incentives to Restore Employment (HIRE) Act.

When you run payroll, the Taxable, Subject-To, and Amount are blank for employer Social Security for this employee.

Only if you are set up to process payroll in multiple states on one paycheck (you selected the Company > Preferences > Payroll tab > Allow state taxes from multiple states on one paycheck check box), skip to Step 6 of these instructions.

Otherwise, continue with the following table:

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Miscellaneous state code

Available only if the state where the employee is paying income tax requires a special code. Type that code in the field. Refer to your state tax publication for more information on these special state topics.

States and codes are listed below:

Arizona: Percent of federal withholding
California: Additional allowances
Georgia: Marital allowances. Enter 0, 1, or 2 when the state filing status is Married Filing Jointly.
Illinois: Number of dependents
Indiana: Number of dependents
Louisiana: Number of dependents
Massachusetts: Blind exemptions
Mississippi: Dual income exemptions

Home state

The state you entered as the Home State on the Payroll tab in Company > Preferences automatically appears here.

If this employee lives in a different state, select that state instead.

Note:

You can select the No State option for a temporary employee on whom you want to withhold no taxes. You then select the Do not withhold option for the federal and state filing status fields.

State withholding

Select this check box to withhold state taxes for the state where the employee lives.

Note:

You must first set up a tax with a type of State Withholding.

State disability

Select this check box to pay state disability for the state where the employee lives.

Note:

You must first set up a tax with a type of State Disability. If you want to calculate employer-paid state disability, you must select the Employer tax check box when setting up the tax. To calculate both employer and employee-paid state disability, you must set up a separate tax for each.
For multi-company, Ajera uses the tax rate associated with the employee company. If there is none, Ajera then uses the tax rate from the tax setup where the Company field is blank.
If you want to use a different rate for this employee instead of the rate set up on the tax, you can add a state disability tax in the Additional Taxes table on this window. To do so, follow the next step of these instructions.

State unemployment

Select this check box to pay state unemployment tax to the state where the employee lives.

Note:

You must first set up a tax with a type of State Unemployment. If you want to calculate employer-paid state unemployment, you must select the Employer tax check box when setting up the tax. To calculate both employer and employee-paid state unemployment, you must set up a separate tax for each.
For multi-company, Ajera uses the tax rate associated with the employee company. If there is none, Ajera then uses the tax rate from the tax setup where the Company field is blank.
If you want to use a different rate for this employee instead of the rate set up on the tax, you can add a state unemployment tax in the Additional Taxes table on this window. To do so, follow the next step of these instructions.

Work state

If the employee lives and works in the same state, you do not need to select a Work state and you can leave the associated check boxes cleared. Ajera uses the Home state information.

If the employee lives and works in different states, you pay taxes to the state where the employee works by selecting it here.

State withholding

If you selected a work state, select this check box to withhold state taxes for the state where the employee works.

Note:

You must first set up a tax with a type of State Withholding.

State disability

If you selected a work state, select this check box to pay state disability for the state where the employee works.

Note:

You must first set up a tax with a type of State Disability. If you want to calculate employer-paid state disability, you must select the Employer tax check box when setting up the tax. To calculate both employer and employee-paid state disability, you must set up a separate tax for each.
For multi-company, Ajera uses the tax rate associated with the employee company. If there is none, Ajera then uses the tax rate from the tax setup where the Company field is blank.
If you want to use a different rate for this employee instead of the rate set up on the tax, you can add a state disability tax in the Additional Taxes table on this window. To do so, follow the next step of these instructions.

State unemployment

If you selected a work state, select this check box to pay unemployment tax to the state where the employee works.

Note:

You must first set up a tax with a type of State Unemployment. If you want to calculate employer-paid state unemployment, you must select the Employer tax check box when setting up the tax. To calculate both employer and employee-paid state unemployment, you must set up a separate tax for each.
For multi-company, Ajera uses the tax rate associated with the employee company. If there is none, Ajera then uses the tax rate from the tax setup where the Company field is blank.
If you want to use a different rate for this employee instead of the rate set up on the tax, you can add a state unemployment tax in the Additional Taxes table on this window. To do so, follow the next step of these instructions.

State filing status

Select the filing status that the employee entered on the employee's state withholding form.

Single	The employee files as single
Married	The employee files as married
Do Not Withhold	Wages are subject to tax but taxes are not withheld. Wages are included on the W-2.
Flat Amount	Type the amount you want withheld each pay period in the State withholding amount. For example, type 100 to withhold this amount for each pay period.
Percent of taxable	Type the percent in the Percent of taxable. For example, you enter 10. If state taxable is 1,200, then 120 is withheld.
Exempt	Wages are exempt from this tax and the wages are not included on the W-2. There will be no taxable, subject to, and withholding amounts. It is rare that an employee is exempt from taxable wages. This usually applies to foreign workers.

State exemptions

Type the number of exemptions that the employee entered on the employee's state withholding form.

Note:

For Mississippi, this is the number claimed for Dependents plus Age and Blindness.

Additional state withholding

Type the amount of any additional state withholding that the employee entered on the employee's state withholding form.

Skip to Step 7 unless you are set up to process payroll in multiple states on one paycheck.

For processing payroll in more than one state, follow the instructions in this step.

To follow the instructions for the entire process of setting up withholding for multiple states, see Setting up state withholding for multiple states.

To set up the employee for state withholding when processing for multiple states, complete these fields:

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Home state

The state you entered as the Home State on the Payroll tab in Company > Preferences automatically appears here.

If this employee lives in a different state, select that state instead.

Note:

You can select the No State option for a temporary employee on whom you want to withhold no taxes. You then select the Do not withhold option for the Federal and state filing status fields.

Default work state

Enter the state you want to withhold taxes from when an employee enters time to a project or phase, but you did not assign a state to that project or phase.

Ajera also uses this state for supplemental pays and salary-based paychecks.

State taxes table

In this table, complete one row for each state where the employee works (including the home state where the employee is a resident).

State

Enter a state where you need to withhold taxes. If you have not yet set up state taxes, see Setting up state withholding for multiple states.

Non Res

This check box appears only if you selected the Company > Preferences > Payroll Tab > Automatic SWH reciprocity calculations check box.

If the employee has a certificate of nonresidency for the state, select this check box, and Ajera processes withholding based on the states involved.

SWH

This check box appears only if you did not select the Company > Preferences > Payroll Tab > Automatic SWH reciprocity calculations check box.

To withhold state tax for the state on this row, select this check box.

SDI

To withhold state disability insurance (SDI) for the state on this row, select the check box.

You can withhold SDI for only one state.

Multi-company only. Ajera uses the tax rate associated with the employee company. If there is none, Ajera then uses the tax rate from the tax setup where the Company field is blank.

SUI

To withhold state unemployment insurance (SUI) for the state on this row, select the check box.

You can withhold SUI for only one state.

Multi-company only. Ajera uses the tax rate associated with the employee company. If there is none, Ajera then uses the tax rate from the tax setup where the Company field is blank.

Status

Select the filing status that the employee entered on the state withholding form for the state listed on this row.

If you select Percent of Taxable, be sure to enter the percent in the Amount field.

Note:

If you previously left blank the SWH check box for a state so as to not withhold tax, but you now have selected the Company > Preferences > Payroll tab > Automatic SWH reciprocity calculations check box, be sure to select the state filing status of Do not withhold.

Exemptions

Type the number of exemptions that the employee entered on the state withholding form for the state listed on this row.

Additional SWH

Type the amount of any additional state withholding that the employee entered on the state withholding form for the state listed on this row.

State option

Code

Amount

check box

These fields are available only if the state where the employee is paying income tax that requires a special code.

The State Option field describes the special tax information needed.

Complete the Code and Amount fields and select the check box, as needed, to enter the required information for the tax. Refer to your state tax publication for more information on these special requirements.

States and codes are listed below:

Arizona: Percent of federal withholding
California: Additional allowances
Georgia: Marital allowances; enter 0, 1, or 2 when the state filing status is Married filing jointly.
Illinois: Number of dependents
Indiana: Number of dependents
Louisiana: Number of dependents
Massachusetts: Blind exemptions
Mississippi: Dual income exemptions. For the Employee's Withholding Exception Certificate, select the amount claimed on the Marital Status, Spouse Is Employed line. Enter (Amount claimed/500).

To deduct any additional taxes, such as city or county tax, from the employee's paycheck, enter a row for each one in the Additional Taxes table as follows:

For	Do this
Tax	Enter the tax. If the tax you want is not already set up, click the New button from the Tax List window.
Calculation	To override the calculation method of this tax (as set up in Company > Payroll > Taxes) for this employee only, select a different calculation method.
Amount	To override the amount of this tax (as set up in Company > Payroll > Taxes) for this employee only, enter it here. A state tax for Pennsylvania is an exception. Because Pennsylvania currently calculates withholding at a flat percentage, Ajera does not use any amount you enter here.
On demand	If you do not want this additional tax automatically included for every paycheck, select this check box. When running payroll, you can choose to include all on-demand taxes for all employees.
Supp	Select this check box to also automatically deduct this tax from a supplemental pay check, such as a bonus. If you want to deduct this tax only on supplemental paychecks, you must also select the On Demand check box.
Limit	Enter the limit that can be withheld for this tax. You can only enter a limit if one was not entered in the setup of the tax (Company > Payroll > Taxes).
Limit period	Note that the limit you entered is always per year.
Notes	Enter any notes.

Click the Deductions/Fringes tab.

For each deduction you want to enter for the employee, complete a row on the Deductions table:

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Deduction

Enter the deduction. If the deduction you want is not already set up, click the New button from the Deduction List window.

Calculation

Select the calculation method for the way you want to calculate the deduction.

Note:

If you select Percent of Taxable, you can set up only one percent of taxable deduction per employee setup. This type of deduction must be the last deduction on this tab, because Ajera processes the deductions in the order they are set up.

Amount

If you selected a flat amount calculation method, type the amount here.

On demand

If you do not want this additional deduction automatically included in every paycheck, select this check box.

When running payroll, you can choose to include all on-demand deductions for all employees.

Note:

To include an individual deduction on a payroll, set it up as a deduction through the Company > Payroll menu and then add it to the paycheck.

Supp

Select this check box to also automatically include this deduction in a supplemental pay check, such as a bonus.

If you want to include this deduction only on supplemental paychecks, you must also select the On Demand check box.

Limit

If you want to limit the annual amount or number of hours for the deduction, type it here.

For example, if you were setting up a 401(k) deduction, and if the current year's contribution limit is $13,000, you would enter that amount as the limit.

Limit period

Note that the limit you entered is always per year.

Notes

Enter any notes.

For each direct deposit you want to enter for the employee, complete a row on the Direct Deposits table:

For	Do this
Routing number	Type the routing number which identifies the employee's bank. For security reasons, Ajera prints only the last 4 digits on the paycheck stub.
Account	Type the number of the account where the employee wants the funds deposited. For security reasons, Ajera prints only the last 4 digits on the paycheck stub.
Type	Make a selection to indicate if the bank account is a savings or checking account. Along with the Prenote check box, Ajera uses this field to set the correct codes for the NACHA file.
Prenote	Select this check box to send a pre-notification, instead of an actual direct deposit, to the bank where the funds are to be deposited. We recommend that you use this option to test the direct deposit for the employee before making the actual direct deposit. After your bank approves the direct deposit, clear this box and start generating direct deposits for the employee.
On demand	If you do not want this additional direct deposit automatically included in every paycheck, select this check box. When running payroll, you can choose to include all on-demand direct deposits for all employees.
Supp	Select this check box to also automatically include this direct deposit in a supplemental pay check, such as a bonus. If you want to include this direct deposit only on supplemental paychecks, you must also select the On Demand check box.
Remaining	When depositing to only one account, select this check box to ensure that the total net check amount is deposited in the account. When depositing to several accounts, such as savings and checking, select this check box for the account where you want to deposit the balance of the net check. For example, you enter an amount of $125 for the savings account and want the remainder to go to checking, so you select the Remaining check box for the checking account.
Amount	Use this field if the Remaining check box is cleared. Enter the amount you want to deposit in this account.
Notes	Enter any notes.

For each fringe you want to enter for the employee, complete a row on the Fringes table:

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Fringe

Enter the fringe. If the fringe you want is not already set up, click the New button from the Fringe List window.

Calculation

Select the calculation method for the way you want to calculate the fringe.

Amount

Enter the amount of the fringe.

On demand

If you do not want this additional fringe automatically included in every paycheck, select this check box.

When running payroll, you can choose to include all on-demand fringes for all employees.

Note:

To include an individual fringe on a payroll, set it up as a fringe through the Company > Payroll menu and then add it to the paycheck.

Supp

Select this check box to also automatically include this fringe in a supplemental pay check, such as a bonus.

If you want to include this fringe only on supplemental paychecks, you must also select the On Demand check box.

Limit

If there is a limit to the amount that can be deducted, enter that annual amount.

Limit period

Note that the limit you entered is always per year.

Notes

Enter any notes.

Click Save.