Tracking Your Payroll Through TAM (V6.3.0)

Product: WinTAM V6.3.0

Please note that TAM does not have a true payroll function, but simply a payroll reporting function.

TAM is NOT a payroll program. It will not figure out your payroll taxes. The payroll functions within TAM are merely used for generating reports on data that has been created by a third-party payroll software or vendor, then reentered into TAM.

This document will cover three main sections:

Create Payroll Accounts

To enter a payroll check for an employee, you must have the required payroll accounts set up in your General Ledger. The accounts below are presented as samples only; your GL accounts numbers may vary.

To install these accounts:

  1. Access Options, Agency Manager for DOS, Utilities, System Set Up.
  2. Access Accounting Set Up ( UT-6), Chart of Accounts Maintance (1), Enter/Revise Chart of accounts (1), and enter the account number in the Account field.
  3. Reply ( Y)es to the question "Is this a new General Ledger Account Number?"
  4. Fill in the appropriate Title, Level, Type, and Group for the account. (Typical setups are listed below.)
Title Example Account # Your Account # Level Type Group
Operating Account 1020   A 1 10
FICA Tax Withholding 2300   A 2 20
Federal Tax Withholding 2310   A 2 20
State Tax Withholding 2320   A 2 20
Employer FICA Tax Withholding 2330   A 2 20
Medicare Tax Withholding 2340   A 2 20
Employer FICA Tax Expense 6300   A 5 60
Unemployment Insurance- Federal 6310   A 5 60
Unemployment Insurance- State 6320   A 5 60
Employer Medicare Expense 6340   A 5 60
  1. You are prompted to add the account to all agencies and all departments, and are also prompted, "Allow Account in GL entry programs?" Reply (Y)es to this question. Since this is a payroll account, you will need to access the account when entering your payroll check. On V6.3.0 you must enter Medicare Expense and Medicare Withholding, or else the Medicare column will pull zero balances.
  2. [Enter] past the Report Writer Codes until you get to the option line.
  3. (C)hange to add the next account number, and (E)nd when all accounts have been entered.

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Set Up Payroll Reports

Access the Payroll Reports Setup option from DOSTAM-UT-6-2.

Note: Payroll must be an actual check to pull into reports. Miscellaneous Disbursements do not display.

Payroll Reports Installation

  1. Required Payroll Withholding Accounts 
  2. Wage Expense Accounts 
  3. Additional Withholding Accounts 
  4. Subtract Tax Deferred from Gross 

Required Payroll Withholding 

Title Example Account # Your Account #
Social Security Withholding Taxes 2300  
Federal Withholding Taxes 2310  
State Withholding Taxes 2320  
Employer Social Security Withholding 2330  
Medicare Withholding Taxes 2340  
Employee Social Security Expense 6300  
Unemployment Insurance- Federal 6310  
Unemployment Insurance- State 6320  
Employer Medicare Expense 6340  

Note: On the check, this amount is broken into two accounts: Employer SS Tax Withholding and Employer Medicare Liability. Account #2335 is used for this on the sample check. For the Employer SS Tax Withholding, this amount is being placed into the required 2330 Social Security Account.

Wage Expense Accounts 

Title Example Account # Your Account #
Executive Salaries 6000  
Office Salaries 6010  

The above accounts are just examples. You may enter up to ten Wage Expense Accounts. This is the account that offsets the gross. If account numbers are not entered into this area of the reports installation, $0 balances will pull into the gross fields on the payroll reports.

Additional Withholding Accounts 

Title Example Account # Your Account #
County Tax Withheld 2345  
Insurance Group Health 6210  
401-K 2350  

Again, the above accounts are just examples. You may have up to ten additional withholding accounts.

Note: Additional Withholding appears as a lump sum on the reports, not broken down individually by account. If you need this option, set up a schedule for the individual lines.

Additional Withholding accounts must be set up for each state you have payroll in. When setting up Additional Withholding Accounts, you need to specify the type of withholding. The choices are as follows:

Subtract Tax Deferred from Gross 

State IL Illinois 

Subtract tax deferred deductions from:

You need to enter for each state in which your employees live. Reports can be run for one or all agencies. In WinReports, run the Reports, General Ledger, Payroll report. Select Payroll History or Quarterly Payroll Report in the Output area on the Criteria page.

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Enter Payroll Checks 

Follow these steps to enter a payroll check:

  1. Access the Cash Disbursements program and enter the cash journal number for the account from which you are making the employee disbursement. Select an agency if you are prompted; you will be at the Date and Month fields. Click to move past these fields or revise this information as needed. The entry will be filled in the accounting month displayed. 
  2. In the Type field, enter Employee Disbursement. This will bring you to the Payee field. Fill in your Employee code or double click for a list. Verify that the Payroll radio button is selected.
  3. In the Schedule field, you have the option to enter a schedule description for this item. The purpose of this is to help you to keep track of your employee disbursements. For example, if entering a disbursement to Tom Johnson, you could use a schedule description of TJ-NET. To keep track his individual net earnings over a selected time period you could run a General Ledger Schedule Report for only TJ-NET

Note: You must use consistent schedule descriptions, or the data that appears on the Schedule reports will be inconsistent and meaningless. Applied Systems recommends that you use the initials of the person for whom you are making the entry, a dash, and then a description of the items that make up the disbursement (NET, GROSS, FICA, STATE, etc.). If you have more that one employee with the initials, you may have to use numbers in the schedule description (TJ1-NET, for example). Refer to the section Typical Offset Accounts for an Employee Check for a sample check.

  1. Next, enter a Description for this disbursement. The Agency Manager displays the name of the employee, but you may change the description as desired. This field provides another way for you to keep track of expenditures. Again, make sure that you are consistent when entering your own descriptions. 
  2. In the Amount field, enter the net amount of the employee’s check. Answer No to changes; you are prompted to enter the offsetting accounts. If you have entered a payroll check for this employee before, the offsets should appear. If this is the first time you are entering a payroll check for this employee, you will need to manually enter the offsets and amounts so that debits equal credits. Refer to the section Typical Offset Accounts for an Employee Check for a sample check.

Typical Offset Accounts For An Employee Check (Tom Johnson TJ) 

Account Date Schedule Description Debit Credit
1020 07/10/00 TJ-Net Operating Cash Account   1210.75
6000 07/10/00 TJ-Gross Office Salaries 1500.00  
2300 07/10/00 TJ-SS Social Security   93.00
2340 07/10/00 TJ-MED Medicare   21.75
2330 07/10/00 TJ-ESS Employer's SS Withholding   93.00
2335 07/10/00 TJ-EMED Employer's Medicare Withholding   21.75
6300 07/10/00 TJ-FEXP Employer's Social Security Expense 93.00  
6340 07/10/00 TJ-MEXP Employer's Medicare Expense 21.75  
2310 07/10/00 TJ-FW Federal Withholding   95.00
2350 07/10/00 TJ-SW State Tax   35.00
6210 07/10/00 TJ-GH Group Health   44.50

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How to Write a Check to Clear the FICA Accounts (Tax Deposit) 

Simply write a check clearing the liabilities for the employer and the employee portion of Social Security and Medicare. There will be four offsets on the check.

The same applies to pay the Federal Withholding and the State Tax Withholding.

Last Revised: April 06, 2011 04:24 PM

SWE1926