Payroll End of Fiscal Year Checklist

Note: Complete the End of Fiscal Year Checklist for Payroll before completing the End of Month and End of Quarter Checklist for Payroll and the End of Month and End of Fiscal Year Checklist for General Ledger so the reports include all the expenses for the month.

_____ 1. If applicable, complete the Increment Years of Service option to update the Years of Service (Internal) field within the Employee File for employees.

Steps to Increment Years of Service

Note: When completing the Increment Years of Service option, if the current year is already included in the total number of years entered in the Years of Service (Internal) field for employees, be sure to exclude the employees who retired (or their employment ended) this year.

_____ 2. For all states except Nebraska school districts, expense the unpaid salaries and benefits earned this year, including the July and August contract balances and the June wages for unit employees, to the current fiscal year. To expense the salaries and benefits, complete the necessary payroll calculations selecting the appropriate payroll type: Regular (Method 1), Expense Payroll (Method 2), Pay Off Contracts (Method 3), or Reversing GAAP (Method 4; applicable for Iowa school districts who reverse GAAP expense only). The methods are designed to expense wages for contract employees in specific pay groups and the unit employees who have entries for the June wages entered in a selected pay period entries batch.

Note: If the rates for deductions, such as insurance rates, are changing July 1, be sure to enter the new rates in the Deduction File (for those with rate tables defined) or in the Employee File before completing any of these methods, so the correct amount of board-paid benefits (the employer share of deductions) is expensed; if needed, the new rates can be entered with a Rate Change Date on the rate tables in the Deduction File or in the Employee File. Also, to expense or pay contract balances for only specific groups of employees, assign the employees to unique pay groups by entering the pay group ID on the Employment screen (or assign the pay group ID to only the appropriate pay codes on the Wages screen, if applicable).

Steps to Add a Pay Group

Method 1: Regular Payroll

a. Using June of the current fiscal year as the processing month, create and process separate payroll calculation batches using Regular as the Payroll Type for the July and August pay cycles. Include only the pay groups whose pay was earned by June 30. Calculate the first payroll batch, print the reports, checks, and check registers, update the batch, and then repeat the steps until all the payroll batches have been completed. Be sure to use 06/yyyy as the processing month (with yyyy as being the year you are closing) for all the batches.

Note: If applicable, select the Exclude Contract Hours From ACA Tracking field (column) for a pay group to not have the hours worked tracked for contract pay codes for employees for the Affordable Care Act (ACA) Hours Tracking option (will still be tracked for inclusion on the other applicable government reports, such as retirement and unemployment reports). A checkmark will appear in the box if the field is selected. Typically, the Exclude Contract Hours From ACA Tracking field is selected for a pay group only during the summer months when contract employees who are defined with a service break (on the ACA Hours screen in the Employee File) are getting paid for their time while on break; for example, if the contract employees in a certain pay group who are defined with a service break did not work any hours in June, July, and August, select the field for the appropriate pay group when completing a payroll calculation to pay the June, July, and August wages. The Exclude Contract Hours From ACA Tracking field is only applicable for the Payroll Types of Regular, Extra, or Pay Off Contracts, as hours worked are not tracked in payroll calculations with Payroll Types of Expense Payroll, Purchase Order, or Reversing GAAP.

Important: Keep in mind, the state retirement reports are generated based on processing month and the Quarterly 941 is generated based on check date. For example, if completing Method 1 using check dates in July and August with the processing month in June, the taxes will post to the third quarter on the Quarterly 941, while the retirement contributions will be reported in June; or if completing Method 1 using check dates in June with the processing month in June, the taxes will post to the second quarter and the retirement contributions will be reported in June.

Tip: For South Dakota school districts only, Method 1 is not recommended by the state auditor as an option to be used, unless checks actually need to be printed in June for the July and August payments, in which case, all the checks must be printed with a June check date and be distributed in June (for example, if paying off the contract for a retired employee and all the checks will be distributed now).

Method 2: Expense Payroll

This method allows expensing of salaries (contract balances and entries in selected pay period entries batches for unit employees who have June wages) and benefits during the current fiscal year without printing the checks. With the Expense Payroll method, the system: 1) posts the remaining fiscal year salaries and board-paid benefits as debits to the correct expenditure accounts; 2) posts the totals as credits to the Contract and Benefits Payable balance sheet accounts; and 3) updates the Expensed Payroll fields on the Deductions, Taxes, and Wages screens in the Employee File for the applicable employees and pay codes. Then during the regular July and August payroll batches (processed in the new fiscal year), the checks are written for the expensed wages, while the system debits the Contracts and Benefits Payable balance sheet accounts. When the expensed pay codes have been paid in full (remaining pay periods is zero for the expensed contracts), the Contract and Benefits Payable balance sheet accounts should reflect a zero balance.

Note: If applicable, select the Exclude from Expense Payroll field within the Deduction File for any deduction that should not be expensed, and if needed, complete the Exclude After Date field to exclude the deduction from only certain expensed pay periods (date sequences). If the Exclude from Expense Payroll field is selected for a deduction (and the date entered in the Exclude After Date field is on or before the date of the pay period (date sequence) being expensed, if applicable), the system will still include (calculate) the deduction during the expensed payroll calculation in order to correctly figure the gross taxable wages for Social Security and Medicare, but the deduction will not be expensed to General Ledger. If deductions have the Exclude After Date field completed with a prior year's date, utilize the Increment Exclude After Date option to update the dates for the current year.

Steps to Increment Exclude After Date

a. Verify the masks are entered (using Xs as placeholders for the funds) for the Contracts and Benefits Payable balance sheet accounts in the appropriate fields in the Payroll System File. Then verify that the Contracts and Benefits Payable balance sheet account numbers are set up in the Chart of Accounts File for all funds that have remaining wages to be expensed.

b. Enter any absences from contracts that have not been previously subtracted along with other absence entries, if applicable, using either the Pay Period Entries option (see Step C below) or the Employee Absences option. Be sure to select the Expense Payroll field on the batch options for the batch to: 1) ensure only pay codes which are set up on the Wages screen in the Employee File for the employees can be used in the entries (otherwise, an error will occur if expensing a pay code not set up on the Wages screen); and 2) to retain the batch so that once the payroll calculation batch is updated, the entries will remain out there so they can be paid in July. After all the entries have been entered in the batch, print a listing to verify the information.

Note: If there are multiple entries for one employee that need to be processed and paid at separate times (for example, if one employee has two absences from contract that should be processed over two pay periods (one processed for the July pay period and one processed for the August pay period)), be sure to create two batches and enter one entry in each batch.

c. To expense the June wages for unit employees, key the entries for the June wages for the unit employees in Pay Period Entries. Be sure to select the Expense Payroll field on the batch options for the batch to: 1) ensure only pay codes which are set up on the Wages screen in the Employee File for the employees can be used in the entries (otherwise, an error will occur if expensing a pay code not set up on the Wages screen); and 2) to retain the batch so that once the payroll calculation batch is updated, the entries will remain out there so they can be paid in July. When making the entries, verify the cross references to stipulate whether or not any deductions paid by the board are selected and thus will also be expensed in addition to the salaries, if desired. After all the entries have been entered in the batch, print a listing to verify the information.

Note: If there are multiple entries for one employee that need to be processed and paid at separate times (for example, if one employee has two entries that should be processed and paid over two pay periods (one processed and paid for the July pay period and one processed and paid for the August pay period)), be sure to create two batches and enter one entry in each batch.

Tip: If any adjustments for deductions or taxes need to be made and included in the expense payroll process, create a batch using the Deduction/Tax Adjustments option and be sure to select the Expense Payroll field on the batch options.

d. Calculate the payroll for the Expense Payroll type by selecting Calculate Payroll from the Check Cycle menu and completing the fields with the appropriate information.

Enter Expense Payroll in the Payroll Type field, or click the down-arrow button to select the correct one.
Enter a unique description (up to 50 characters long) for the batch in the Batch Description field.
Enter the correct fiscal period (06/yyyy, with yyyy being the year you are closing) for which to post the entries to General Ledger in the Processing Month field. Use the mm/yyyy format or click the down-arrow button to select the desired date.
The Check Date, Last Worked Date, Week Number for Deductions, and Days This Pay Period fields are disabled and cannot be completed.
Enter the 4-digit year of the ending fiscal year date for which contracts to expense in the Fiscal Year End field. For example, to include the contracts for the 2023-2024 fiscal year in the calculation, enter 2024 in this field. Leave the field blank to default to the current fiscal year (as specified in the Current Fiscal Year End field in the Payroll System File).
The Override General Ledger Entry Date field is disabled and cannot be completed.
Enter the date to use as the posting date for the entries in the Expense Payroll General Ledger Entry Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date.
The Write Payee Checks, Override - No Direct Deposit, and Test Payroll (No Checks) fields are disabled and cannot be selected.
Click the Save button.
If Expense Payroll is specified as the Payroll Type, click the Expense Payroll Options tab and complete the additional required fields. For each pay period to be expensed, add an entry in the Dates List and then select the applicable pay groups and pay period batches to include for the corresponding period. For example, to expense the payrolls for July and August if there is only one payroll a month, add two entries in the Dates List with the appropriate payroll check dates (one for July and one for August) and select the applicable pay groups and pay period batches for each; or to expense the payrolls for July and August if there are two payrolls a month, add four entries in the Dates List with the appropriate payroll check dates (two for July and two for August) and select the applicable pay groups and pay period batches for each. To add an entry, complete the following:

In the blank line (indicated with an asterisk) at the bottom of the Dates List, enter the date to determine which contracts are included in the pay period to be expensed (based on the Start Date of the contract) and which deductions and direct deposit items are included (based on the Start and/or End Date of the deduction or direct deposit item) in the Payroll Check Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date.

Tip: The same date cannot be entered in the Payroll Check Date field for multiple entries. Typically, the check date of the pay period being expensed is entered in this field.

Enter the appropriate pay period (frequency) for which deductions to include in the pay period to be expensed in the Week Number for Deductions field, or click the down-arrow button to select the correct one. For example, to include only those deductions defined with amounts for Every Pay Period, enter Every Pay Period; or to include those deductions defined with amounts for Every Pay Period and those with amounts for a specific week (used if there are multiple payrolls in one month and deductions are only withheld and expensed on a specific week), enter the appropriate week number, such as Week 1, Week 2, etc. Leave the field blank to default to Every Pay Period.
Enter a description for the pay period to be expensed in the Description field. The description can be alphanumeric and up to 40 characters long.
In the Pay Groups to Include List, select the pay groups for which employees' contracts to expense in the pay period. To select a pay group, click the box for the Selected column to the left of the desired pay group ID. A checkmark will appear in the box if the pay group is selected. To select all of the pay groups, click the Select All button located above the Pay Groups to Include List.

Note: The Exclude Contract Hours From ACA Tracking field is only applicable for the Payroll Types of Regular, Extra, or Pay Off Contracts, as hours worked are not tracked in payroll calculations with Payroll Types of Expense Payroll, Purchase Order, or Reversing GAAP.

Tip: If an employee within a selected pay group has a deduction defined with the Process if No Pay field selected for the Employer share on the Deductions screen in the Employee File and the employee does not have any wages to expense, the deduction will be processed and expensed for the employee for the total number of times the pay group is selected in the different pay periods to be expensed. For Illinois and Missouri school districts, the Process if No Pay field is not applicable (will not work) for health insurance deductions that have the Retirement on Board’s Share field (in the Deduction File) selected.

If entries were made for absences on contracts or to expense June wages for unit employees, select the desired batches to expense (include) in the pay period in the Pay Period Batches to Include List. Only the batches of pay period entries, employee absences, and deduction/tax adjustments with the Expense Payroll field selected that are not tied to any other pay period to be expensed appear in the list. To select a batch, click the box for the Selected column to the left of the desired batch description. A checkmark will appear in the box if the batch is selected. To select all of the batches, click the Select All button located above the Pay Period Batches to Include List.
Click the Save button.

Tip: There must be at least one entry in the Dates List for a Payroll Type of Expense Payroll. For the pay groups including contract employees to be expensed, a pay period must be listed (with the pay group selected) for the total number of remaining payments for the contracts; for example, if the contracts for the employees in the Teachers pay group has two payments remaining, there must be at least two pay periods listed with the Teachers pay group selected.

Note: To remove an entry from the Dates List, click the Delete button to the left of the desired entry.

Click the Execute button to continue the payroll calculation.

Note: If there are two pay periods to expense, the earnings calculation will take the same amount of time as two separate payrolls.

e. Print the desired pre-check reports (such as a payroll register) and verify the information.

f. For organizations using the School Accounting System installed locally, make a backup.

g. Complete the Update Checks option.

Note: During the update, the expenditure accounts in General Ledger will be debited and the Contracts and Benefits Payable balance sheet accounts will be credited. Also, the Expensed Payroll fields on the Deductions, Taxes, and Wages screens in the Employee File will be updated with the amounts expensed for the applicable deductions, taxes, and pay codes; the balances for any contract pay codes will not be updated until the checks are written and updated in the next fiscal year. The batches of pay period entries, employee absences, and/or deduction/tax adjustments that were expensed will continue to show as unposted but will be set to read only as changes cannot be made to the entries in the batch; once the batches are paid in the next fiscal year, the batches will be posted at that time.

CAUTION: Once this payroll calculation batch has been updated, changes cannot be made to existing wages on the Wages screen in the Employee File until the expensed amounts have been paid in full (all the fields except the Fiscal Year End field are disabled); if corrections must be made, contact Customer Support for assistance. Also, do NOT make any changes to deductions for an employee until the expensed wages have been paid in full (unless the deduction is paid only by the employee and is not a pre-tax deduction); otherwise, if corrections must be made, contact Customer Support for assistance. For more details on the steps that need to be completed if corrections must be made, click here to view the FAQ regarding making corrections after expensing.

Tip: If needed, the pre-check reports can be reprinted for an expensed payroll calculation batch after updating by choosing the desired report (from the Payroll screen, Reports menu), selecting a Posted report selection, specifying the desired payroll batch in the Batch Description parameter, and specifying Expense Payroll in the Payroll Type parameter. Also, the Employee Expensed Wages Report - Detail or the Employee Expensed Wages Report - Summary can be printed to see the total amount expensed and remaining for the wages, deductions, and taxes for each pay code for each employee.

h. Then when in the next fiscal year, complete a check cycle as normal to print checks for the expensed wages by doing the following: select Regular as the Payroll Type, use the appropriate July or August dates in the Processing Month and Check Date fields, and select the appropriate expensed pay period in the Expensed Payroll Check Dates to Include List. To select to pay an expensed pay period, click the box for the Selected column to the left of the desired record in the Expensed Payroll Check Dates to Include List. A checkmark will appear in the box if the expensed pay period is selected.

Tip: If desired, in the Expensed Payroll Check Dates to Include List, click the Show Details button to the right of the description for an expensed pay period to view the pay groups and pay period batches that had been selected and processed with the expensed pay period.

Note: The Expensed Payroll Check Dates to Include List only appears if Regular, Extra, or Pay Off Contracts is specified as the Payroll Type and there are previously expensed pay periods that have not yet been paid.

Method 3: Pay Off Contracts

This method will pay all remaining contracts for those pay groups included in the payroll calculation and any entries made for June wages for unit employees in the selected pay period entries and employee absences batches. With this method, employee and payee checks can be printed separately with the same dates, separately with different dates, combined into one check per employee or company, or a combination of the above. When printing combined employee checks, the taxes and deductions are figured as though they were being paid on separate checks.

Important: Keep in mind, the state retirement reports are generated based on processing month and the Quarterly 941 is generated based on check date. For example, if completing Method 3 using check dates in July and August with the processing month in June, the taxes will post to the third quarter on the Quarterly 941, while the retirement contributions will be reported in June; or if completing Method 3 using check dates in June with the processing month in June, the taxes will post to the second quarter and the retirement contributions will be reported in June.

Tip: For South Dakota school districts only, Method 3 is not recommended by the state auditor as an option to be used, unless checks actually need to be printed in June for the July and August payments, in which case, all the checks must be printed with a June check date and be distributed in June (for example, if paying off the contract for a retired employee and all the checks will be distributed now).

a. Calculate the payroll for the Pay Off Contracts type by selecting Calculate Payroll from the Check Cycle menu and completing the fields with the appropriate information.

Enter Pay Off Contracts in the Payroll Type field, or click the down-arrow button to select the correct one.
Enter a unique description (up to 50 characters long) for the batch in the Batch Description field.
Enter the correct fiscal period (06/yyyy, with yyyy being the year you are closing) for which to post the entries to General Ledger in the Processing Month field. Use the mm/yyyy format or click the down-arrow button to select the desired date.
Enter the date to print on the checks for the first pay period being paid in the Check Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date. The date entered here will show in General Ledger and on the reports as the date expensed (paid), unless a date is entered in the Override General Ledger Entry Date field (below).
Enter the last date of the first pay period being paid in the Last Worked Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date.
Enter the appropriate pay period (frequency) for which deductions to include in the calculation for the first pay period to be paid in the Week Number for Deductions field, or click the down-arrow button to select the correct one. Leave the field blank to default to Every Pay Period.
If applicable, enter the number of days (up to 2 digits) included in the first pay period being paid in the Days This Pay Period field.
Enter the 4-digit year of the ending fiscal year date for which contracts to include in the calculation in the Fiscal Year End field. For example, to include the contracts for the 2023-2024 fiscal year in the calculation, enter 2024 in this field. Leave the field blank to default to the current fiscal year (as specified in the Current Fiscal Year End field in the Payroll System File).
If desired, enter the date to use as the posting date for the entries in the Override General Ledger Entry Date field; otherwise, leave the field blank to use the date entered in the Check Date field as the posting date. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date.

Note: If this field is completed, the employee direct deposits will show as one total when completing the Check Reconciliation option. If desired, to have the employee direct deposits show as separate totals (one for each date sequence) when completing the Check Reconciliation option, leave this field blank and enter a different date for each date sequence in the Dates List on the Advanced Options screen.

The Expense Payroll General Ledger Entry Date field is disabled and cannot be completed.
If desired, to print checks for the payees during the check cycle, select the Write Payee Checks field. A checkmark will appear in the box if this field is selected.

Note: All payee checks will be written for the total amounts withheld and expensed unless the system has been set up to do one of the following:

1) Payee checks will not be written for those deductions or taxes without a payee ID entered in the Payee ID field in the Deduction File or Tax File. Those checks can be written from Accounts Payable when they are due and expensed to the payable accounts.

Steps to Change a Deduction

Steps to Change a Tax

2) The amount of any payee check can be overridden on the Deductions Payable screen in the Deduction File or the Taxes Payable screen in the Tax File.

Steps to Add a Deductions Payable or Taxes Payable Entry

3) The payee check for a deduction or tax can be set to "hold" in order to print the check at a later time from Payroll. To do this, select the Hold Check field for the deduction or tax in the Deduction File or Tax File.

Steps to Change a Deduction

Steps to Change a Tax

In the Pay Groups to Include List, select the pay groups for which employees' contracts to include in the calculation. To select a pay group, click the box for the Selected column to the left of the desired pay group ID. A checkmark will appear in the box if the pay group is selected. To select all of the pay groups, click the Select All button located above the Pay Groups to Include List.

Tip: If an employee within a selected pay group earns leave per pay period (has the Units Per Pay Period field on the Leaves screen in the Employee File completed for a leave) and will be getting paid, the leave will be accrued and post to the balance using the Check Date of the first date sequence for the payroll calculation batch. Also, if an employee within a selected pay group has a deduction defined with the Process if No Pay field selected for the Employer share on the Deductions screen in the Employee File and the employee will not be getting paid, the deduction will be processed for the employee for the total number of date sequences included in the payroll calculation; for Illinois and Missouri school districts, the Process if No Pay field is not applicable (will not work) for health insurance deductions that have the Retirement on Board’s Share field (in the Deduction File) selected.

If entries were made for absences on contracts or to pay June wages for unit employees, select the desired batches of pay period entries and/or employee absences to include in the calculation in the Pay Period Batches to Include List. To select a batch, click the box for the Selected column to the left of the desired batch description. A checkmark will appear in the box if the batch is selected. To select all of the batches, click the Select All button located above the Pay Period Batches to Include List.
Click the Save button.
Click the Advanced Options tab and complete the following:

1) Select the Combine Employee Checks field to print only one check for each employee using the date entered on the Regular Options screen. A checkmark will appear in the box if the field is selected.

Note: If the employee checks are selected to be combined and the employee has direct deposit with multiple direct deposit transactions, the direct deposit splits will only be taken one time. For example, if the employee has $100 designated to be deposited into a savings account and the remainder to be deposited into a checking account, only $100 will be deposited into the savings account. If the employee checks are written separately (not combined), $100 would be deposited into the savings account for each pay period.

2) Select the Combine Payee Checks field to print only one check for each payee using the date entered on the Regular Options screen. A checkmark will appear in the box if the field is selected.

Note: If a deduction or tax has an Override Amount specified (on the Deductions Payable screen in the Deduction File or the Taxes Payable screen in the Tax File) and the Combine Payee Checks field is selected, one check will print for the payee equaling the total of the Override Amount multiplied by the number of pay periods being paid.

3) If one or more of the following four scenarios apply, complete the Date Sequence, Check Date, and Week Number for Deductions fields: 1) if there are multiple payrolls calculated per month and different week numbers are used to stipulate when deductions are withheld and expensed, 2) if new rates are entered for a deduction with a Rate Change Date (in the Deduction File or the Employee File), 3) if ending dates are defined for deductions (in the Deduction File or the Employee File), or 4) if separate employee and/or payee checks are to be printed using different dates on the checks.

- The date and week number specified on the Regular Options screen will appear as the first date sequence in the Dates List for the first pay period to be expensed. If needed, the entry can be edited.
- To add a new entry, in the blank line (indicated with an asterisk), enter the number of the date sequence for the new entry in the Date Sequence field (for example, enter 2 for the second entry, 3 for the third entry, etc.). If rate change dates are specified for deductions in the Deduction File, if ending dates are defined for deductions, or to print checks with different dates, enter the date to use for each pay period in the Check Date field. Checks can be written separately or combined into one check even though separate dates are entered. If there are multiple payrolls per month and different week numbers are used to stipulate when deductions are withheld and expensed, enter the appropriate pay period (frequency) for which deductions to include in the calculation for the specified Date Sequence in the Week Number for Deductions field, or click the down-arrow button to select the correct one. Leave the field blank to default to Every Pay Period.

Note: The date sequences, dates, and week numbers for deductions must be entered in order to print separate employee and/or payee checks with different dates. If the Combine Employee Checks and the Combine Payee Checks fields were not selected and only one date was entered (on the Regular Options screen only), the system will generate separate checks with the same date.

After all the changes have been made, click the Save button.
Click the Execute button to continue the payroll calculation.

Note: If there are two remaining pay periods pay, the earnings calculation will take the same amount of time as two separate payrolls.

b. Print the desired pre-check reports (such as a payroll register) and verify the information.

Tip: Depending on the selections made for combined or separate employee and/or payee checks, the payroll register will print in the following manner:

Employee Checks	Payee Checks	Dates	Payroll Register Results
Combined	Combined	Same	One total for amount paid for each employee with one date sequence; one total and date sequence for each payee
Combined	Combined	Different	One total for amount paid for each employee with one date sequence; one total and date sequence for each payee
Combined	Separate	Same	One total for amount paid for each employee with one date sequence; one total for each payee but with multiple date sequences for same date
Combined	Separate	Different	One total for amount paid for each employee with one date sequence; separate totals for each pay period per payee and multiple date sequences for different dates
Separate	Combined	Same	Separate totals for each pay period per employee (grouped by employee) with multiple date sequences for same date; one total and date sequence for each payee
Separate	Combined	Different	Separate totals for each pay period per employee (grouped by date) with multiple date sequences for different dates; separate totals for each pay period per payee but with one date sequence
Separate	Separate	Same	Separate totals for each pay period per employee (grouped by employee) with multiple date sequences for same date; one total for each payee but with multiple date sequences for same date
Separate	Separate	Different	Separate totals for each pay period per employee (grouped by date) with multiple date sequences for different dates; separate totals for each pay period per payee and multiple date sequences for different dates

c. Print the checks, direct deposit stubs, and automatic payment stubs for the payroll calculation batch.

Note: When printing the checks, direct deposit stubs, and automatic payment stubs, select the correct date sequence if separate employee and/or payee checks were specified to be printed (even if only one date was utilized) in order to print the checks for all the pay periods (date sequences).

d. Complete the Email Direct Deposit Stubs option, if applicable.

Note: When emailing the direct deposit stubs, select the correct date sequence if separate employee and/or payee checks were specified to be printed (even if only one date was utilized) in order to email the direct deposit stubs for all the pay periods (date sequences).

e. Print the desired post-check reports (such as a check register) and verify the information.

f. Create the direct deposit files, if applicable.

Note: When creating the direct deposit files, select the correct date sequence if separate employee and/or payee checks were specified to be printed (even if only one date was utilized) in order to create the direct deposit file for each pay period (date sequence). If desired, select the Combine All Date Sequences field to create only one direct deposit file (for each direct deposit header record, if applicable) containing the direct deposit entries for all the date sequences. A checkmark will appear in the box if the field is selected.

g. For organizations using the School Accounting System installed locally, make a backup.

h. Complete the Update Checks option.

Method 4: Reversing GAAP

For Iowa school districts who reverse GAAP expense only, this method will calculate and reverse GAAP expense the July and August salaries and benefits during the current fiscal year without printing the checks. If the salaries and benefits are reverse GAAP expensed, the totals do not post to the expenditure accounts, but are reflected on the C.A.R.

Note: If applicable, select the Exclude from Expense Payroll field within the Deduction File for any deduction that should not be reverse GAAP expensed, and if needed, complete the Exclude After Date field to exclude the deduction from only certain pay periods (date sequences). If the Exclude from Expense Payroll field is selected for a deduction (and the date entered in the Exclude After Date field is on or before the date of the pay period (date sequence) being reverse GAAP expensed, if applicable), the system will still include (calculate) the deduction during the payroll calculation in order to correctly figure the gross taxable wages for Social Security and Medicare, but the deduction will not be reverse GAAP expensed. If deductions have the Exclude After Date field completed with a prior year's date, utilize the Increment Exclude After Date option to update the dates for the current year.

Steps to Increment Exclude After Date

Note: If separate dates will be entered for the payroll calculation (see Step D below), specify the corresponding date sequence in which each employee absence entry should be included in the Date Sequence field. Typically, the date sequence will be 1.

c. To reverse GAAP expense the June wages for unit employees, key the entries for the June wages for the unit employees in Pay Period Entries. When making the entries, verify the cross references to stipulate whether or not any deductions paid by the board are selected and thus will also be reverse GAAP expensed in addition to the salaries, if desired. After all the entries have been entered in the batch, print a listing to verify the information.

Note: If separate dates will be entered for the payroll calculation (see Step D below), specify the corresponding date sequence in which each entry should be included in the Date Sequence field. Typically, the date sequence will be 1.

d. Calculate the payroll for the Reversing GAAP payroll type by selecting Calculate Payroll from the Check Cycle menu and completing the fields with the appropriate information.

Enter Reversing GAAP in the Payroll Type field, or click the down-arrow button to select the correct one.
Enter a unique description (up to 50 characters long) for the batch in the Batch Description field.
Enter the correct fiscal period (06/yyyy, with yyyy being the year you are closing) for which to post the entries to General Ledger in the Processing Month field. Use the mm/yyyy format or click the down-arrow button to select the desired date.
Enter the date the payroll batch is being reverse GAAP expensed in the Check Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date. The date entered here will show in General Ledger and on the reports as the date expensed, unless a date is entered in the Override General Ledger Entry Date field (below).
The Last Worked Date field is disabled and cannot be completed.
Enter the appropriate pay period (frequency) for which deductions to include in the calculation for the first pay period to be expensed in the Week Number for Deductions field, or click the down-arrow button to select the correct one. Leave the field blank to default to Every Pay Period.
The Days This Pay Period field is disabled and cannot be completed.
Enter the 4-digit year of the ending fiscal year date for which contracts to reverse GAAP expense in the Fiscal Year End field. For example, to include the contracts for the 2023-2024 fiscal year in the calculation, enter 2024 in this field. Leave the field blank to default to the current fiscal year (as specified in the Current Fiscal Year End field in the Payroll System File).
If desired, enter the date to use as the posting date for the entries in the Override General Ledger Entry Date field; otherwise, leave the field blank to use the date entered in the Check Date field as the posting date. Use the mm/dd/yyyy format or click the down-arrow button to select the desired date.
The Expense Payroll General Ledger Entry Date field is disabled and cannot be completed.
The Write Payee Checks, Override - No Direct Deposit, and Test Payroll (No Checks) fields are disabled and cannot be selected.
In the Pay Groups to Include List, select the pay groups for which employees' contracts to reverse GAAP expense. To select a pay group, click the box for the Selected column to the left of the desired pay group ID. A checkmark will appear in the box if the pay group is selected. To select all of the pay groups, click the Select All button located above the Pay Groups to Include List.

If entries were made for absences on contracts or to reverse GAAP expense June wages for unit employees, select the desired batches of pay period entries and/or employee absences to include in the calculation in the Pay Period Batches to Include List. To select a batch, click the box for the Selected column to the left of the desired batch description. A checkmark will appear in the box if the batch is selected. To select all of the batches, click the Select All button located above the Pay Period Batches to Include List.
Click the Save button.
If one or more of the following three scenarios apply, after completing the Regular Options, click the Advanced Options tab to complete the Date Sequence, Check Date, and Week Number for Deductions fields: 1) if there are multiple payrolls calculated per month and different week numbers are used to stipulate when deductions are withheld and expensed, 2) if new rates are entered for a deduction with a Rate Change Date (in the Deduction File or the Employee File), or 3) if ending dates are defined for deductions (in the Deduction File or the Employee File).
The date and week number specified on the Regular Options screen will appear as the first date sequence in the Dates List for the first pay period to be expensed. If needed, the entry can be edited.
To add a new entry, in the blank line (indicated with an asterisk), enter the number of the date sequence for the new entry in the Date Sequence field (for example, enter 2 as the Date Sequence for the second entry, 3 for the third entry, etc.). If rate change dates are specified for deductions in the Deduction File, or ending dates are defined for deductions, enter the date to use for expensing each pay period in the Check Date field. If there are multiple payrolls per month and different week numbers are used to stipulate when deductions are withheld and expensed, enter the appropriate pay period (frequency) for which deductions to include in the calculation for the specified Date Sequence in the Week Number for Deductions field, or click the down-arrow button to select the correct one. Leave the field blank to default to Every Pay Period.
After all the changes have been made, click the Save button.
Click the Execute button to continue the payroll calculation.

Note: If there are two remaining pay periods left to expense, the earnings calculation will take the same amount of time as two separate payrolls.

e. Print the desired pre-check reports (such as a payroll register) and verify the information.

Note: If the Exclude from Expense Payroll field was selected for a deduction (and the date entered in the Exclude After Date field is on or before the date of the pay period (date sequence) being reverse GAAP expensed, if applicable), the deduction prints on the applicable pre-check reports because the system still included (calculated) the deduction in order to correctly figure the gross taxable wages for Social Security and Medicare, but the deduction will not be reverse GAAP expensed to General Ledger. Also, if the Combine Employee Checks field was selected on the Advanced Options screen, only one line will print for each employee on the payroll register for the total amount expensed; if this field was not selected, a line for each remaining pay period will print.

f. For organizations using the School Accounting System installed locally, make a backup.

g. Complete the Update Checks option.

Note: During the update, the totals do not post to the expenditure accounts, but are reflected on the C.A.R.

CAUTION: Once this payroll calculation batch has been updated, do NOT make any changes to existing contracts until they have been paid in full; otherwise, if corrections must be made, enter and post correcting manual journal entries in General Ledger. Also, do NOT make any changes to deductions for an employee until the reverse GAAP expensed wages have been paid in full (unless the deduction is paid only by the employee and is not a pre-tax deduction); otherwise, if corrections must be made, enter and post correcting manual journal entries in General Ledger.

h. Then when in the next fiscal year, complete a check cycle as normal to print checks for the reverse GAAP expensed wages by doing the following: select Regular as the Payroll Type and use the appropriate July or August dates in the Processing Month and Check Date fields. If entries were made for absences on contracts or to expense June wages for unit employees with this process, edit the entries in the batch, if needed (for example, if date sequences other than 1 had been entered).

_____ 3. Complete the End of Month Checklist for Payroll.

Payroll End of Month Checklist

_____ 4. Complete the End of Quarter Checklist for Payroll. For Nebraska school districts only, skip this step since you are not at the end of a quarter.

Payroll End of Quarter Checklist

_____ 5. Print the Payroll Register - Summarized by Employee (from the Payroll screen, Reports menu, Payroll Register Reports) for Summary selecting all the months in the fiscal year for a cumulative payroll register. This step is optional.

Steps to Print a Report

_____ 6. Print the Deduction Register by Deduction (from the Payroll screen, Reports menu, Deduction Reports) for Posted Summary selecting all the months in the fiscal year for a cumulative deduction register. This step is optional.

Steps to Print a Report

_____ 7. Print the Earnings Report by Pay Code (from the Payroll screen, Reports menu, Other Reports) for the applicable Report Selection Description (Posted - Exclude Expensed Wages or Posted - Include Expensed Wages) selecting all the months in the fiscal year. This step is optional.

Steps to Print a Report

_____ 8. Print the Combined Earnings Report (from the Payroll screen, Reports menu, Other Reports) for the applicable Report Selection Description (Exclude Expensed Wages or Include Expensed Wages) selecting all the dates in the fiscal year. This report can be used to publish gross salaries in the newspaper. This step is optional.

Steps to Print a Report

_____ 9. Print the Payee Totals Report (from the Payroll screen, Reports menu, Other Reports) selecting all the months in the fiscal year. This step is optional.

Steps to Print a Report

_____ 10. Print the Deduction Totals Report (from the Payroll screen, Reports menu, Deduction Reports) for Posted Summary selecting all the months in the fiscal year. This step is optional.

Steps to Print a Report

_____ 11. For Idaho and North Dakota school districts only, generate the Workers Compensation Report by selecting the Government Reporting menu and then Workers Compensation Report by Class from the Payroll screen.

Workers Compensation Report by Class

Tip: For North Dakota school districts, for additional information, refer to the Frequently Asked Question titled FAQ: For North Dakota organizations, can I submit the file created within the Workers Compensation Report by Class option? within the Knowledge Base.

_____ 12. For organizations using the School Accounting System installed locally, make a backup.

$image\btn_mini.gif$ Steps to Backup

_____ 13. Update the year in the Current Fiscal Year End field in the Payroll System File to be the ending year of the new fiscal year.

Steps to Complete the Payroll System File

_____ 14. Enter new wages for the next year for the employees. If desired, use the Create Payroll Wages for New Year option as a shortcut in creating wages for the next fiscal year.

Note: For organizations with the Negotiations module, if packages were updated, the wages for the employees tied to those packages will already be set up for the new year.

Steps to Create Payroll Wages for New Year

_____ 15. If applicable, create the new year for the leaves for the employees. If desired, use the Adjust Leave Balances option as a shortcut in creating the leaves for the next fiscal year.

Tip: Be sure to process all absence entries and leave requests (if applicable) prior to creating the new year for leaves if the ending balance from this year will be carried forward to the beginning balance for the new year.

Steps to Adjust Leave Balances

_____ 16. If there are funds in the Fund File in General Ledger with the Automatically Start New Fiscal Year field not selected, check to see if the Fiscal Year Begin and End dates for the next fiscal year display in the Fund Years List if those funds will be used again next year. If the dates for the next fiscal year do not display for those funds, complete the Start New Fiscal Year option at this time and be sure to only select the applicable funds.

$image\btn_mini.gif$ Steps to Start New Fiscal Year