[PR] Balancing Employee Accumulations

The PR Employee Accumulation Report is crucial for verifying that your payroll deductions and liabilities are accurate. It supports proper regulatory reporting (e.g., W-2s, 941s) and should be reviewed regularly.

Important: Before running this report, ensure all payrolls are closed and the Ledger has been updated, as this report pulls data from the Ledger.

Understanding the Report Layout

The report is structured into three horizontal columns:

1. Month-To-Date (MTD)
   Totals for the specific month entered in the parameters.
   → e.g., entering 9/21 will only show totals for September 2021 here.

2. Quarter-To-Date (QTD)
   Totals for the quarter that includes the selected month.
   → If you enter 9/21, this column will show cumulative totals for July, August, and September, but only through September.

3. Year-To-Date (YTD)
   Totals from January 1 through the entered month.
   → With 9/21, this includes all data from January through September 2021.

Sections in the Report

The report displays information for each employee, and summarizes at the payroll group or company level.

Main Sections:

• Earnings

• Deductions

• Liabilities

Balancing Tips & Key Concepts

1. Match Federal Taxable Wages (Earnings) to the Subject Amount in Deductions

• To verify Federal taxable wages, subtract any pre-tax deductions (or negative earnings) from gross wages.

• Compare this result to the Subject amount in Deduction #1 (Federal Tax).

Example:

• Gross earnings: $4,890.00

• Pre-tax deductions: $360.00

• Taxable wages: $4,890.00 (→ appears no pre-tax reduction was applied in this case)

But if the Federal Subject amount doesn't match, check the setup:

In this example, earnings codes 8 and 13 are not included in the Federal taxable subject.
This means Deduction #1 (Federal) wasn't linked to those earning codes — a setup error.

2. Validate Other Taxes (e.g., FICA) Similarly

• Look at Deduction #2 for FICA.

• Ensure that the Subject amount matches the taxable earnings for FICA.

Example:

• FICA Subject earnings: $5,132.00 → This means the setup here is correct.

Understanding "Subject" vs "Eligible"

• Normally, Subject = Eligible

• If a limit is reached, Eligible will be less

Example:
If the FICA wage base limit is $142,800:

• Employee’s subject earnings = $150,000

• Eligible = $142,800 → only this amount is taxed for FICA

Summary of Balancing Steps

1. Run report after ledger is updated

2. Select correct date parameters

3. Verify taxable wages match subject amounts in deductions

4. Ensure earning codes are properly linked to deductions

5. Check Subject vs Eligible for capped deductions

6. Correct setup issues as needed (e.g., missing earning codes in deduction setup)