Five Underutilized Features for Payroll

Five Underutilized Features for Payroll

Written By: Janelle Montplaisir

from July 8, 2014

In this issue of Dynamics University Magazine, we continue to highlight underutilized features in Microsoft Dynamics GP that can provide significant value to users. Let’s look at five such features of Payroll:

PTO Manager
Many companies that utilize Payroll often have a need to create more complex vacation and sick accrual schedules than what the standard Payroll vacation and sick feature offers. PTO Manager allows users to create accrual schedules based on years worked or hire dates, define waiting periods, and set a maximum of carryover hours for vacation and sick time. PTO Manager also allows users to define an unlimited number of calculation formulas for those accrual schedules and provides the ability to assign a PTO Code to multiple employees who have the same PTO policies within the organization. PTO Manager helps automate many processes that were once completed manually, which can save staff resource time and improve data accuracy.

Post-Date Pay Rates
Most companies give employees pay rate increases at some point such as a hire date anniversary, a promotion, a certain time of year, etc. For users with a large number of employees, this can be very stressful to manage as many users manually track pay rate increases in Microsoft Excel, Post-it® Notes, and so on, and then have to remember to adjust employees’ pay code rates in-between pay runs. The Post-Date Pay Rates feature allows users to enter and save pay code rate changes in advance with a specific effective date and activate them as needed prior to pay runs. When the user is ready to activate saved pay rate changes, he/she can sort on effective dates and only activate those needed for the next pay run.

Payroll Integration to Payables Management
Processing payroll creates many different payroll liabilities that a company must track and pay for on behalf of its employees as well as its own company payroll liabilities. Taxes, insurance premiums, and garnishments are just a few examples of the different payroll liabilities for both the company and employees. Keeping track of these liabilities and making payments on them can be a very manual and time-consuming process. Many users ask if the system can simply post payroll liabilities as vendor invoices so those invoices/liabilities can be tracked and paid through Payables Management. The Payroll Integration to Payables Management (PIP) module does just that. Users can set up different transaction liability types (federal/state taxes, company/employee deductions, company/employee benefits, etc.) and create associations to specific vendors. When Payroll is processed, PIP automatically creates a batch of invoices in Payables Management for all of those liabilities that have been set up. A user then just needs to verify and post the batch. The next time vendor payments are processed, those payroll liabilities will be available for payment.

Deductions in Arrears
Deductions in Arrears (DIA) tracks a payroll deduction balance when an employee’s pay amount is not sufficient to cover all deductions. Also, DIA allows the collection of mandatory arrears for employee deductions when an employee does not receive a paycheck at all. When future pay runs are completed for employees with uncollected deductions, DIA will attempt to collect the deductions until the outstanding amount has been successfully collected. If an employee continues to have a shortage of wages in the future for deductions, DIA will create a new arrears record for those deductions to that employee. Deductions in Arrears allows users to manage those arrears and make manual adjustments as needed per employee and per arrear.

Gross Up
Payroll Gross Up provides a calculation tool to quickly determine the gross pay amount that would be needed to provide an employee with a specified net pay amount. Many companies use this tool to determine what an employee’s gross pay needs to be in order for him/her to receive a net bonus amount of $1,000. The Gross Up calculation is based on the net amount and tax percentages entered at the time of calculation.