Payroll Version 17 Manual
 
 
Manage Liabilities
The following information is covered in this chapter:
•    Manage Liabilities window
•    Liability payments
•    The Check Register dialog
 
Manage Liabilities window
The options in the Manage Liabilities window allow you to set up your liability payments as well as write and print/record them.
The Payment portion of the Manage Liabilities window is where you create, edit and delete those liabilities you pay regularly (e.g., 941 deposit). For details, refer to Creating liability payments.
When you use the program to write a check, it calculates the amount of the check using data from your pay history records for your employees. The total amount of the check is inserted into the Total field and the amounts of the payroll items are allocated to the appropriate liability registers. The program then tracks the amount of the payment for reports, such as the 941. For details, refer to Writing/printing liability checks.
Finally, another benefit of the Payment feature is that when you write a check using a payment, the recorded payment is maintained in the Payment History window for quick viewing. For details, refer to Viewing your liability payment history.
 
 
You can use the "check" portion of the window to write/record miscellaneous checks that don't need to be calculated or tracked for reports.

If you want the program to track your liability payments for a report such as the 941, you need to decide at what point you want to begin tracking the payments. You also need to know how many prior checks you need to enter into the system.

For example, if you begin using the payroll program sometime during the second quarter and you want to track your 941 deposits for the 941 report, you need to enter all prior second quarter 941 liability payments into your check register. If there are only a few days left in the quarter, you may want to wait until the next quarter to begin tracking your liability payments. The point is that if any 941 payment is missing from the check register for the quarter you are processing the 941 report, the deposit amount on your 941 report will not be accurate.
Using check registers
The name of the check register you created during the installation routine is displayed in two separate locations:
•    In the Defaults portion of the Company Information window.
•    In the Register pop-up menu of the Manage Liabilities window.
 
 
You do not have to maintain a separate check register in payroll. The program however, does require you to select a default register for recording purposes. So even if you choose not to maintain a check register, you must have one selected in the Defaults portion of the Company Information window.
 
Liability payments
The advantage of using the liability payment feature is twofold:
•    The program can calculate the amount of the check for you and track the data for particular reports, such as the 941 report.
•    Your recorded "liability payment" checks are displayed in the Payment History window. This allows you to see which payments you have already made. For details, refer to Viewing your liability payment history.
 
Creating a liability payment
 
For payments that occurs on a regular basis (e.g., 941 liability payment, 401K deposit), we recommend that you create a payment to use whenever you write a check for the payment.
1.    In the Manage Liabilities window, click the New button located below the Payments list.
2.    In the New Payment dialog, enter the general information for this payment.
Title
Enter a descriptive name for your payment.
Pay to and Address
Enter the name and address of the payee.
In order for the address to print on the check, the checkform template you use must have an address field on it.
Memo
What you enter in the optional Memo field is recorded with your transaction in the check register, it does not print on the check.
Remind
Click the Remind button if you want to create a reminder for this payment. For details, refer to Setting up reminders.
3.    Select (√) the payroll items you want included in the payment.
This step is very important because the program calculates the amount of the payment based on what payroll items you select. To select an item, click the name of the payroll item and a √ will appear next to the item name. To unselect a payroll item, click the item again. You can set up to a maximum of ten payroll items to include.
4.    From the Report type pop-up menu, select the type of report the payment is associated with.
The Report type option allows you to track the amounts of your payments (e.g., 941 tax deposit) for specific reports (e.g., Form 941).
Select the None option if you are setting up a payment that does not appear in the pop-up menu (e.g., 401K Plan). The title of the payment will be used in the Payment History window.
5.    From the Frequency pop-up menu, select how often you make this payment.
6.    Click the OK button.
An alert dialog will appear displaying the payment settings.
7.    Click Continue if the settings are correct or Cancel to go back and correct them.
The title of the payment is added to the Payments list. For details on using payments when writing checks, refer to Writing/printing liability checks.
 
Editing a liability payment
 
There may be times when you need to edit the setup of an existing payment. For example, the payment schedule for your 401K deposits changed, so you need to correct the frequency of payment.
1.    In the Manage Liabilities window, select the payment you wish to edit from the Payments list.
2.    Click the Edit button.
3.    In the Edit Payment dialog, make the changes you want, then Click the OK button.  
 
Deleting a liability payment
At some point, you may find that you want to delete an existing payment because it is no longer needed.
1.    In the Payment Liabilities window, select the payment you wish to delete from the Payments list.
2.    Click the Delete button.
3.    An alert dialog will ask if you are sure you want to delete the selected payment. Click Yes to delete the payment, or click No if you decide not to delete this payment.  
 
Writing/printing a liability check
 
You are not required to use payments to write liability checks in the payroll program, however, the following instruction set assumes you have already set up a payment for the check you are writing. If you have not yet set up a payment, refer to Creating liability payments for details.
1.    In the Manage Liabilities window, select the payment you are writing a check for from the Payments list.
2.    Select which Employee List the program should use when calculating the payment amount.
If you are writing a "miscellaneous" check in which the amount does not need to be calculated from your pay history data, or if it's not a payment you want to track via the Payment History window, you can fill in the check fields (e.g., Check #, Pay To, Total, Memo, etc.). After entering the check information, go ahead and print and/or record the check.
3.    Select the Period the program should use when calculating the payment amount.
4.    Click the Calculate Amount Due button.
The program fills in the check fields using information gathered from the pay history records of all employees on the selected Employee List for the period you designate.
5.    (Optional) To confirm that the amount of the payment is correct, click the Verify button and print the Verification Report.
6.    
Based on the period set up and selected Employee List, the Verification Report lists the following:
•    Total amount of payroll items allocated for each Pay Period, amounts of the payments already recorded, amount of the current payment, and the difference between these amounts.
•    The difference amount should be zero. If it is not, examine all the payroll and liability checks recorded during the selected period and determine where the error is. Then you need to make the appropriate corrections.
6.    Click either the Print Check or Record Check button.
Print Check
Align a checkform in your printer, then click the Print Check button. In standard print window that appears, click the Print button. Once the check has been printed, it will be recorded into the selected check register.
Record Check
If you would like to enter the check directly into your register without actually printing it, fill in the necessary fields. Then click the Record Check button. The check is recorded in the currently selected register.
 
Viewing your liability payment history
To view the Payment History window in the Manage Liabilities window, select Utilities > Payment History.
For each liability payment you have set up in the Manage Liabilities window, the Payment History window displays the dates of your recorded liability checks, as well as the amount due for the year-to-date.
 
About the Payment History window
 
 
The brackets ({....}) indicate the number of remaining payments. You can designate the frequency (e.g., quarterly, annually) of your payments when you set them up. When you make a payment, the next bracket is replaced with the date of the payment. Brackets are not used for payments set up with a frequency of "Undefined or Irregular".
The Payment History window defaults to automatically open every time you launch your payroll program. If you want, this option can be disabled in Program Preferences, or by marking the Don't show this window on startup checkbox in the lower left corner.
In order for your payments to appear in the Payment History window, you must have a report type selected when writing checks in the Liabilities tab window.
 
The Check Register window
The Check Register window displays both your payroll and liability check information in much the same format as your regular checkbook register.
To open the check register, click the Manage Liabilities button from the Payroll Navigator window. From the Register pop-up menu, select the register you want to open, then click the View Register button.
The Check Register window displays the transactions in the same format as your regular checkbook register. You can use the scroll bar at the right to scroll through your transactions.
About the Check Register window
The program automatically opens the register to the last transaction in the register. The Display and Limit by Options at the top part of this window allow you to display your transactions based on the criteria you select.
To mark a transaction as cleared ( √ ), you must balance your check register with your bank statement in the Reconcile window.
If Direct Deposit was used to deposit employee paychecks, the letters DD will appear in the Number field. To close the register, click the close button/box in the upper left corner.
 
Viewing options
Note the viewing options (Display and Limit by ) in the top portion of the Check Register window. These options allow you to view your registers based on criteria you select. For example, you can set the register to display only uncleared checks. The Display and Limit by options are detailed in this section.
 
Display options
The Display options can be used to display entries based on the criteria you select. You can choose more than one option, giving you many possible combinations. Marking a checkbox means that any entry that fits the selected category will be displayed.
Cleared
Cleared transactions are those transactions that have appeared on your bank statement. The program will mark ( √ ) a transaction in the register when you mark a transaction as cleared in the Reconcile screen.
Uncleared
Uncleared transactions are those entries that have not appeared on a bank statement and that you have not marked as cleared in the Reconcile screen.
Checks
Check this box to display checks you have entered into the register.
Deposits
Check this box to display deposits you have entered into the register.
Withdrawals
Check this box to display withdrawals you have entered into the register.
Show Memos
Check this box to display the memo fields in the register.
 
Limit by options
Use the Limit by options to further define and specify the types of transactions displayed in the register. You are allowed to choose more than one option, giving you many possible combinations.
Amount
Limits transactions that are displayed in the register according to a specific amount. Allows you to view transactions that match, is less than, is more than, or is between the amount you select.
Date
Limits transactions that are displayed in the register according to a specific date. Allows you to view transactions that match, is before, is after, or is between the date you select.
Number
Limit transactions that are displayed in the register according to a specific check number. Allows you to view transactions that match, is before, is after, or is between the check number you select.
Description
Limit transactions that are displayed in the register according to a specific description. Allows you to view transactions that contains, starts with, ends with, or matches the description you select.
Memo
Limits transactions that are displayed in the register according to a specific memo. Allows you to view transactions that contains, starts with, ends with, or matches the memo you select.
Voided
Displays only the voided transactions in your check register.
To return to the original register display, click the Stop limiting button
Managing check registers
You do not have to maintain a separate check register in payroll.
Managing a check register can involve many different actions. For example, you will need to record deposits and withdrawals if you want to keep an accurate balance. Also, you may find there are times when you need to void a check. This section describes those actions that are involved in managing a check register.
 
Entering a deposit
In order to maintain an accurate check register balance, you need to record all deposits that you make into the checking account.
1.    In the Manage Liabilities window, select the appropriate register from the Register pop-up menu.
2.    Click the Deposit button.
3.    In the Deposit dialog, fill in the following deposit information:
Date
Enter the date of the deposit. The program defaults to today's date.
Description
Enter a brief description of your deposit. This description will appear in the register.
Amount
Enter the amount of the deposit in the $ field.
Memo
Enter an optional brief memo to your deposit entry.
4.    Click the OK button.
The deposit is entered into the selected check register.
 
Entering a withdrawal
 
In order to maintain an accurate check register balance, you need to record all withdrawals that you make from the checking account.
1.    In the Manage Liabilities window, select the appropriate register from the Register pop-up menu.
2.    Click the Withdrawal button.
3.    In the Withdrawals dialog, fill in the following withdrawal information.
Date
Enter the date of the withdrawal. The program defaults to today's date.
Description
Enter a brief description of your withdrawal (e.g., Service Charge). This description will appear in the register.
Amount
Enter the amount of the withdrawal in the $ field.
Memo
Enter an optional brief memo to your withdrawal entry.
4.    Click the OK button.
The withdrawal is entered into the selected check register
 
Finding an entry
The Find feature in the Manage Liabilities window allows you to locate a specific entry in your register by using the description, memo, check number, amount, and date of the entry as criteria for the search.
1.    Click the View Register button on the Manage Liabilities window toolbar.
2.    In the Check Register dialog, click the Find button.
3.    In the Find dialog, select the categories you are searching (e.g., Description, Date).
4.    Use the pop-up menus next to each category to define the parameters of your search.
5.    Enter your search criteria in the text boxes.
 
 
Description
Use this option to find entries that match or contain the description you enter. The program also finds partial matches. For example typing in "pay" will find "paycheck" and "payroll".
Memo
Use this option to find entries that match or contain the memo you enter.
Check number
Use this option to find entries that match, come before, come after, or is between a specific check number you enter.
Amount
Use this option to find entries that are equal to, less than, more than, or between an amount you specify.
Date
Use this option to find entries that occur on, before, after, or between a specific date.
6.    Mark the Beginning of Register checkbox if you want to start the search from the very beginning of the register.
To start your search from a particular entry in the register, select that entry, then click the Find button.
7.    Click the Find button.
The program will locate and highlight the first entry in the register that matches your criteria. If the search is unsuccessful, you will hear a system beep and the program will highlight the first entry on the screen at the time of the search.
 
 
When you click the Find button, the program brings up the first entry in the register that matches your find criteria. If that entry is not the particular one you are searching for, press Command-G and the program will find the next entry that matches your criteria. Note that for the Command-G feature to work, the Search from beginning of register option must be turned off.
 
Editing a check register entry
 
From time to time you may find that you need to go into your check register and edit an existing entry.
1.    Access the Check Register window by clicking the View Register button.
2.    In the Check Register window, select the entry you want to edit.
3.    Click the Edit Entry button to display a window similar to the following:.
4.    Make the changes you want.
 
 
If the amount of the check is changed and it has been allocated, be sure to change the Allocated Amounts correspondingly. The total Allocated must equal the check total.
5.    Click the OK button.
When you click the Reprint button, a window will appear allowing you to select the checkform you want to use for reprinting. The program prints only the date, check number, address, description, and the amount of the check. If you need to reprint a paycheck, do so from the Pay History window. If you change any information in the Edit Entry window before clicking the Reprint button, you must exit the Edit Entry window, then return to the Edit Entry window in order for your changes to print using the Reprint option.
 
Voiding a check register entry
 
If you have recorded a transaction in error and it is no longer valid, you can use the void option to void that entry.
1.    Access the Check Register window by clicking the View Register button.
2.    In the Check Register window, select the entry you want to void.
3.    Click the Void button.
The program inserts the term VOID in the entry line of the selected transaction and recalculates the register balance. The voided entry remains in the register to serve as an audit trail.
To "undo" a voided transaction, select the voided entry and click the Void button again. The term VOID will be removed from the entry line of the selected transaction and the register balance will be re-calculated.
 
 
Note that voiding a paycheck from the check register does not void the check in Pay History. Also, voiding an allocated liability check will not void the corresponding transaction in your liability registers. If the information has been sent and posted to your accounting program, it will have to be removed from the accounting program as well.
 
Deleting an entry
 
You should not delete entries that have actually taken place. Instead use the Void command in order to maintain a proper audit trail of your entries.
1.    Access the Check Register window by clicking the View Register button.
2.    In the Check Register window, select the entry you want to delete.
3.    Click the Delete Entry button.
4.    In the warning window that appears, Click the OK button to delete the entry.
 
 
Deleting a paycheck from the check register will not delete the check from the Pay History records. Also, deleting an allocated liability check will not delete the corresponding transaction in your Liability registers. You will need to manually delete those checks. You will also have to remove these checks from your accounting program if they have been sent and posted.
 
Printing a check register
 
After you have entered a number of transactions in the register, you may want to print the register to review the transactions or to keep a hard copy for your records.
1.    Access the Check Register window by clicking the View Register button.
2.    If you want, use the Display options and Limit by options to limit the printout to a specific range of transactions.
The program will print all the transactions in the register if the register is not limited by some criteria such as the date.
3.    Click the Print button.
4.    In the standard Print window that appears, click the Print button.
 
 
Holding down the OPTION key while clicking the Print button will export the current register as an Excel file.
 
Reconciling a check register
 
Perhaps the most tedious and complicated aspect of keeping a check register is reconciling it with your monthly bank statement. Fortunately, your payroll program has taken much of the work out of this important task and allows you to reconcile your check register in just minutes.
1.    Open the Check Register that you want to reconcile.
2.    Click the Reconcile button.
3.    Review your Bank Statement for any deposits, withdrawals, bank charges or interest that do not appear in your check register.
4.    From your Bank Statement, enter the following information:
Statement Ending Balance
This is the balance the bank had for your register on the day the statement was issued. This balance does not include any transactions that have occurred since this date. To balance the register, the program will compare this amount with the cleared balance amount for this register.
Interest Earned
If your Bank Statement lists any earned interest and you have not yet entered it into your check register, enter the amount and the date in the Interest Earned fields. When you Click the OK button, the program will enter a cleared transaction for the interest earned in the register.
5.    Mark ( √ ) all cleared transactions.
A cleared transaction is one that the bank has processed and appears on your bank statement. The Reconcile window displays all the transactions from your register that have not been marked as cleared. To mark a transaction, click the transaction and a √ will appear to the left of the transaction description. To unmark a transaction, click the transaction again.
Make sure that the amounts for these transactions match each other exactly. If there is a discrepancy, you should keep track of what the difference is and after reconciling the register, edit the transaction in your check register to match that of the bank statement using the Edit Entry button. You may wish to make a note of these changes and check them against the actual check to make sure the bank has not made a mistake.
If, after reconciling the register, you find that you need to unclear a transaction that has already been cleared, select the transaction in the Register window, then click the Edit Entry button. Click the Cleared checkbox, then Click the OK button. The transaction will appear in the register as an uncleared transaction.
6.    Check the amount you entered for the Ending Balance against the amount the program now has for the Cleared Balance.
•    If the amounts are the same, your check register is balanced.
•    If the Statement Ending Balance does not equal the Cleared Balance and there is an amount in the Difference field, then your check register is not balanced and you need to find the error. Suggestions for finding the error are listed below:
7.    When the register is reconciled, click the OK button.
Finding reconciliation errors
 
Following are some suggestions for finding a reconciliation error:
•    Determine the difference between the two amounts. Once you know this number, you can search for amounts that equal this number or possibly end with this amount. For example, if the difference is $4. 57, search for a transaction that equals $4. 57 or an amount that ends in 57;.
•    Check all of your transactions to make sure the amount listed on the bank statement equals the amount entered in your check register.
•    Make sure you have entered all service charges that appear on your bank statement.
•    Check to see if your Cleared Balance was correct to begin with. If you start with an unbalanced check register, the amounts will most likely not match up.
 
Creating a new check register
 
There may be times in which you want to create a new check register, either because you are using a different checking account now or you just want to start a new register for tracking your checks.
1.    In the  Manage Liabilities t window, select the New Register command from the Register pop-up menu.
2.    In the New Register Name dialogue enter a descriptive name for your new register.
3.    Click Save
4.    Enter the current balance for your new register.
If you are setting up a check register that is already in use, you may not know the exact current balance of the check register at the time you set it up. If this is the case, enter the ending balance from the last time you balanced your checkbook. Then enter all the transactions since then into the register. For details, refer to Entering deposits and Entering withdrawals.
5.    Click the OK button.
The program automatically saves the new check register file in the Registers; folder of the currently open company. The name of your new check register will appear in the Register pop-up menu in both the Manage Liabilities and Company Information windows.



 
The Liability Register dialog
Liability registers allow you to track the amount of payroll taxes you owe, such as federal and state withholdings. They can also be used to track other liabilities such as business loans. Using Liability registers is an optional feature.
Whether you decide to use liability registers or not is completely up to you. (Note that Liability Registers is not a feature of Aatrix PayCheck. ) To access your Liability registers, select File > Liability Registers.
The Register pop-up menu lists all Liability registers that were created during the installation process.
A Liability register contains an Increase and Decrease column. Each time you record your payroll, the amounts of the payroll taxes and liabilities are automatically entered in the Increase column of the appropriate Liability register.
When you Enter a Payment, record the amount of your payment in the Decrease column of the appropriate Liability register.
 
Managing liability registers
Managing a liability register can involve many different actions. For example, you may need to manually enter a liability payment in order to keep an accurate balance. This section describes those actions that are involved in managing your liability registers.
 
Creating a liability register
Whenever you incur a new liability, either payroll related or for general business purposes, you may want to set up a new liability register to track the amount of that liability.
1.    Select File > Liability Register.
2.    Click the New Register button to display the following window.
3.    From the pop-up menu, select either Withholdings or Employer Paids, depending on the type of liability register you are creating.
4.    From the scrolling list, select the payroll item you are creating the register for.
5.    (Optional) Select the Include YTD records checkbox if you want the register created with data already recorded in Pay History.
This does not include any liability payments.
6.    Click the Create button.
The program adds the name of the new liability register to the Register pop-up menu in the Liability Registers window.
7.    Click Done when you have finished creating your registers.
 
Entering liability register payments
In order to maintain an accurate balance in your Liability Registers, you must enter any liability payments you make.
Entering a liability register payment
Note that you can manually enter a liability payment as outlined here, or via the Liabilities tab window where it is automatically entered for you.
1.    Select File > Liability Register.
2.    From the Register pop-up menu, select the register you want.
3.    Click the Enter Payment button to display the following window.
4.    In the Liability Payment dialogue, enter the payment information, then Click the OK button.
The balance of the liability register will be decreased by the amount of the payment.
5.    Click Done to close the Liability Registers window.
Editing liability register entries
From time to time you may need to edit the information already recorded into a liability register.
Editing a liability register entry
1.    In the Employees tab window, select File > Liability Register.
2.    From the Register pop-up menu, select the register you want.
3.    Select the entry you want to edit.
4.    Click the Edit button.
5.    In the Edit Entry dialogue, make the changes you want, then Click the OK button.
Any changes you make to the register entry are automatically saved.
6.    Click Done to close the Liability Registers window.
Deleting a liability register entry
 
 
 
Once an entry has been deleted, the program cannot recover it. Be sure you really want to delete an entry before doing so.
1.    Select File > Liability Register.
2.    From the Register pop-up menu, select the register you want.
3.    Select the entry you want to delete.
4.    Click the Delete button.
5.    In the alert dialogue that appears, click Yes to delete the selected entry.
The program removes the entry from the register and recalculates the balance.
6.    Click Done to close the Liability Registers window.
Deleting an entry in the Liability Register does not delete the check from the Check Register. Refer to Voiding entries.
 
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