AX 2012 Payroll Processing

Microsoft Dynamics® AX 2012 R2 Payroll: Payroll Processing (Public Sector) December 2012

Version 1.0

Contents Demo Overview ....................................................................................................................................................................................3 INTRODUCTION .............................................................................................................................................................................3 AUDIENCE .......................................................................................................................................................................................3 SCENARIO OVERVIEW ...................................................................................................................................................................4 PROBLEMS THIS DEMO ADDRESSES ...........................................................................................................................................5 KEY PAINS OR BUSINESS IMPERATIVES ......................................................................................................................................5 PURPOSE OF DEMO (SOLUTIONS TO PAINS, BENEFITS, VALUE PROPOSITIONS)................................................................5 KEY BENEFITS AND SOLUTIONS ..................................................................................................................................................5 DEMO PRESET CONFIGURATION.................................................................................................................................................6 DEMO: PAYROLL PROCESSING ....................................................................................................................................................6 INTRODUCTION .............................................................................................................................................................................6 GENERATE EARNINGS ...............................................................................................................................................................7 REVIEW AND EDIT PAY STATEMENTS ...................................................................................................................................12 ISSUE PAYMENTS .....................................................................................................................................................................14 GENERATE AN ADDITIONAL PAY STATEMENT ....................................................................................................................19 POST PAY STATEMENTS ..........................................................................................................................................................25 GENERATE VENDOR INVOICES ..............................................................................................................................................27 CLOSE THE PAY PERIOD ..........................................................................................................................................................29 EMPLOYEE SELF-SERVICE ........................................................................................................................................................31 CONCLUSION ...............................................................................................................................................................................32 GLOSSARY AND ADDITIONAL BACKGROUND CONTENT......................................................................................................32 Disclaimer ...........................................................................................................................................................................................33

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Demo Overview INTRODUCTION This document and its included script introduce you to the payroll process and the new features included in Microsoft Dynamics AX 2012 R2. When you complete this document and demo script, you will be able to:   

Describe how Microsoft Dynamics AX 2012 R2 provides a timely way to pay and manage an organization’s payroll needs. Discuss how payroll provides the flexibility needed during the payroll processing. Manage the payroll process end to end.

AUDIENCE The included script should be used to demonstrate the value of Microsoft Dynamics AX 2012 R2 to a business decision maker (BDM). The executives that you are presenting to will find value in this script if they are challenged with:     

Meeting payroll needs in a timely way. Ensuring accuracy in the payroll process. Providing the flexibility to deal with challenging situations. Maintaining tax compliancy. Working with multi-state payroll situations,

The demo script targets the: 

Payroll administrator who is challenged by the difficulties of the day-to-day payroll processes.

The following role examples represent key decisions makers, selection process personnel, and influencers and/or evaluators: 

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Payroll Manager – The Payroll Manager is responsible for ensuring the oversight of all payroll personnel. The person in this role is responsible for ensuring that all business process and safeguards are enforced and reporting data is accurate and timely. Payroll Administrator (Mia) – The Payroll Administrator is responsible for the overall data entry and processing of payroll. The person in this role is also responsible for accurate and timely payroll data for reporting. Employees’ earnings, tax, and deductions must be accurate and issued in a timely recurring fashion in order to meet numerous federal, state, and local payroll and tax laws. Human Resources Manager (Claire) – The Human Resources Manager manages the needs of a company's employees. The person in this role develops and manages areas such as employment programs, salary compensation, job evaluations, benefits, and training programs. The Human Resources Manager struggles with obtaining information to make decisions, managing change, and maintaining employee data using a manual process. Compensation and Benefits Manager (Jodi) – The Compensation and Benefits Manager conducts compensation and benefit analysis. The person in this role maintains fairness in pay structures and ensures job analysis is tied to compensation planning; this person also handles preferred HR vendor relationships. Accounting Manager (Phyllis) – The Accounting Manager manages the accounting department by processing general ledger transactions, reviewing and approving transactions, and reviewing aging reports. The person in this role also ensures that the accounting team accurately completes financial procedures on time. IT Manager (Tim) – Tim is responsible for the systems used within the company. Tim struggles with a complicated security setup and manual processes.

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SCENARIO OVERVIEW

Every pay period, Mia, the Payroll Administrator, faces a daunting task of paying all the employees at the City of Maple. With the large workforce at the city, Mia must accurately maintain all employee payroll records and the information needed to properly process the payroll each pay period. Employees are continually submitting changes to their tax setup information and several other payroll related factors. Mia must update this information in a timely fashion. Part of these responsibilities also fall on the HR Assistant and the Compensation and Benefits Manager at the city. Mia must coordinate with Brooke (HR Assistant) and Jodi (Compensation and Benefits Manger) each pay period to make sure all updates are in place and ready for payroll. After all updates are in, Mia starts the task of running the pay period process of paying the employees. The preceding chart highlights this complex and critical process of managing the payroll process. This script focuses on the payroll process and some of the various exceptions and configurations that occur at City of Maple. The script will highlight the following: 

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Earnings generation: o Entering and validating exceptions on earnings such as vacation usage (both schedule based and salary based) o Employee on extended leave o Employee holding multiple positions o Employee works in an alternate location for tax purposes o Recurring earnings (car allowance) Pay statement generation: o Multiple tax regions in a single pay statement o Manual benefit adjustments o Position specific benefit calculations o Gross up bonus calculation Issuing payments and posting payroll to the general ledger o Printing checks

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o Generating ACH bank file for direct deposit o Posting payroll costs and liabilities to the general ledger o Generating vendor invoices for benefit and taxes Employee self-service o Reviewing an employee’s pay statement history and detail from the employee self-service area of the enterprise portal

PROBLEMS THIS DEMO ADDRESSES This script focuses on solving the challenge of processing numerous unique situations and payments that are seen in the payroll department in a timely and accurate way each pay period.

KEY PAINS OR BUSINESS IMPERATIVES      

Maintaining employee setup data Issuing payroll statements accurately Issuing payroll statements in a timely manner Sharing data with other areas of the organization (such as Human Resources and Finance) Determining proper taxation and reciprocity Maintaining tax compliance

PURPOSE OF DEMO (SOLUTIONS TO PAINS, BENEFITS, VALUE PROPOSITIONS)    

Integration points with other modules of Microsoft Dynamics AX 2012 R2 Date effective setup for both company and employee data Manual overrides Position based for greater flexibility and control

KEY BENEFITS AND SOLUTIONS  

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Position-based payroll: o Pay multiple positions for a single employee with unique compensation rates, benefits, and tax regions Integrated: o Worker (employee or contractor) o Position o Human Resources fixed compensation o Human Resources benefits and deductions  Enhanced to manage garnishments and tax levies o Employment leave o Employee self-service  Pay statements Benefit accruals Automatic gross up payment calculations Automatic deduction arrears Flexible frequency support Built-in tax engine maintained by Microsoft covering most federal, state, and local tax calculations

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DEMO PRESET CONFIGURATION 1. Make sure that the virtual machine (VM) is up and running that you are logged on. This script was written to work with the Microsoft Dynamics AX 2012 R2 RTM VM, which was released in December 2012. 2. All users are in the CONTOSO domain and the password is “pass@word1”. So if you are to log on as Mia, you would use CONTOSO\MiaPSUS with the password as pass@word1.

DEMO: PAYROLL PROCESSING This demo is about introducing a streamlined payroll process in Microsoft Dynamics AX 2012 R2. This demo provides an overview of the major concepts to introduce you to new key features and functionalities that are available to users of Microsoft Dynamics AX 2012 R2.

INTRODUCTION Microsoft Dynamics AX 2012 R2 is introducing new processes for managing the payroll process. This section provides an

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

overview of how users can be made productive with the payroll process in Microsoft Dynamics AX 2012 R2.

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GENERATE EARNINGS  

Enter vacation for a worker with a salary based position Generate earnings

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes Before you begin, highlight the value of simplicity by walking the audience through the navigation and landing page to familiarize them with the user interface so they are able to follow you as you transition from screen to screen. Entering earnings: In this Microsoft Dynamics AX 2012 R2 scenario, the payroll administrator, Mia, will enter all earnings to be paid to the workers. This is demonstrated in a variety of ways, including manual edits and system generated. You should point out that earnings can be imported using the Earnings import AIF service. They can expose this service with a template in Excel using the Excel Add-ins for Microsoft Dynamics AX, or a custom integration between an external time capturing system and Microsoft Dynamics AX through the AIF service framework. Perform the following steps to understand the process:

1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

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3. On the Area page, under Common, select Earnings statements, and then click Earnings statements. The Earnings statement list page is displayed.

Notice that the FactBoxes include information on the earnings statements. Mia can see the Position assignment information of the worker that the earnings statement belongs to. Mia can also see summary and reference information regarding the earnings statement, such as Worker Earnings totals, which summarize the earnings statement by earning code; Worker earnings totals, which summarize hours and amounts; and lastly, the Pay statements, which links to all pay statements which payout earnings for the selected earnings statement. 4. Create a new earnings statement to record vacation time as an exception entry. Click the Earnings statement button in the New button group on the Action Pane. 5. Enter the following information in the header: Worker: Brad Sutton Pay cycle: bw Pay period: 12/22/2013 – 1/4/2014

6. In the Earnings statement lines section, click the Add line button on the Action Pane. 7. Enter the following information in the new line: Earning date: 1/4/2014 Earning code: Vacation Quantity: 4.0000 Leave all other fields at the default values. 8. Click the Close button on the Earnings statement form.

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9. Generate all earnings statements for the pay period. On the Area page, under Periodic, select Earning statement processing, and then click Generate earnings.

10. Enter the following: Pay cycle: bw Pay period: 12/22/2013 – 1/4/2014 11. Click OK. Note that 43 earnings statements were created or updated.

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GENERATE PAY STATEMENTS  

Generate pay statements, Discuss alternate flows and features within the pay statement generation process: o Tax:  Auto reciprocity determination and tax calculation o Benefit deduction arrears tracking:  All or nothing method or Partial method  Option to track and recover in future pay statement o Fringe benefit calculations:  Offsetting earning record auto-generated

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes Pay statement generation: In this Microsoft Dynamics AX 2012 R2 scenario, the payroll administrator, Mia, will generate the pay statements that form the basis for the employees’ actual paychecks. This is the heavy-lifting process of payroll. During this process, all earnings from the prior scenarios are converted to earning lines on a pay statement (this includes the creation of offset earnings for gross up and fringe benefit earnings). Then benefits (both deductions and contributions) and taxes are all calculated. During the tax calculation, automatic tax impact is automatically determined based on the worker’s residency, work location (from the earnings), configured employer tax regions, and other worker-level parameters for specific taxes (such as non-resident agreements for state income taxes). Lastly, if the calculated net pay is negative, the system will process deductions using the arrears configuration of the benefits to prevent a negative net pay. Perform the following steps to understand the process:

1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

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3. Generate all pay statements for the pay period. On the Area page, under Periodic, select Pay statement processing, and then click Generate pay statements.

4. Enter the following: Pay cycle: bw Pay period: 12/22/2013 – 1/4/2014 Payment date: 1/10/2014 Payment run type: Primary 5. Click OK. Note that 44 pay statements were created or updated.

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REVIEW AND EDIT PAY STATEMENTS 

Adjust pay statement for a worker by adding a one-time deduction.

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes Frequently, it is necessary to review and make edits to individual pay statements after the initial calculation has occurred. This is done for a variety of reasons, including, but not limited to, a need to add or modify a benefit or tax amount to correct prior issues, or to take a one-time deduction.

1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

3. On the Area page, under Common, select Pay statements,and then click All pay statements. The Pay statement list page is displayed.

Notice that the FactBoxes include information on the pay statements. In the Pay statement totals, Mia can quickly see a summary of the pay statement, including gross pay, deductions, net pay, and contributions. In the Position assignment FactBox, the workers positions are listed for easy reference and access. The Payments FactBox gives reference and access to the payment journal and related information, such as check number and direct deposit disbursement information. Lastly, if the pay statement had arrears generated from it, those newly

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created arrears will show in the Arrears FactBox.

Edit a calculated pay statement: 4. Select the pay statement for Brad Sutton with a pay period ending on 1/4/2014. 5. Select the Benefit calculations link on the left. 6. Click the Add line button on the Action Pane above the Benefit deductions grid. 7. Enter the following: Benefit: Flex Park Participate Deduction amount: 10.00

Because a change was made to Brad’s pay statement, the entire statement must go through the recalculation process to ensure all taxes and benefits are still accurate given the edit. 8. Click the Recalculate button in the yellow message pane. 9. Click the Close button on Brad’s pay statement form.

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ISSUE PAYMENTS   

Submit pay statements to a payment journal. Print checks. Generate ACH bank file for direct deposit.

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes At this point, customers have a couple of options on the next steps to proceed with. Some customers may need to post their payroll-related costs to the general ledger prior to issuing the checks and creating the direct deposit file, and others may choose to post after issuing the payments. Typically, the most common is to issue prior to posting, so this is how the scenarios will proceed. But it is good to note that this step and the “Post pay statements” scenario are interchangeable. But in switching them, the posting may need to be run multiple times for each batch of pay statements processed (including one off payments).

1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

3. Submit all pay statements for the pay period. On the Area page, under Periodic, select Pay statement processing, and then click Submit pay statements.

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4. Enter the following: Pay cycle: bw Pay period: 12/22/2013 – 1/4/2014 5. Click OK. Note that a payment journal with 52 vouchers was created along with a single invoice. Keep track of the journal number for later use. Note: The invoice is used to pay out the net pay of all pay statements. It is a single invoice that all payment journal vouchers will be automatically settled to on the posting of the payment journal. This invoice and all payment journal vouchers are created for the payroll vendor specified in the payroll parameters. The actual payment documents (check and direct deposit) are created for the actual employee. 6. Generate all payments (checks and direct deposit file) for the payment journal created earlier. On the Area page, under Periodic, select Pay statement processing, and then click Payment journal.

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7. Select the payment journal with the Journal batch number matching the journal number noted earlier. 8. Click the Lines button on the Action Pane.

Generate check payments. 9. Click Functions, and then click Generate payments. Enter the following: Method of payment: Payroll-CK Bank account: PSUS PAYRL 10. Click OK.

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11. Verify the next available check number. Note: If you want to print the checks to screen for demonstration purposes, click the Document button, select Screen in the left pane, and then click OK. 12. Click OK. Note: If you printed to screen, you will need to close the report that displays the pay statements.

Generate a direct deposit file for the electronic payments. 13. Click Functions, and then click Generate payments. Enter the following: Method of payment: Payroll-EL Bank account: PSUS PAYRL 14. Click OK.

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15. Click the Yellow folder icon to browse to the location where you want to save the ACH file. Also provide a file name in the File name field. 16. Enter the actual payment date of the payments being processed, 1/10/2014. Note: Optionally, you can print the actual pay statements for distribution to employees at this point by marking the Pay statement check box in the Print group. The printer can be specified by clicking the Pay statement button and selecting the appropriate printer. 17. Click OK. Note that 29 transactions were included in the ACH file. The total dollars is also listed. At this point, all payments have either been included in an ACH file for offline submission to the bank, or a check was printed for them. The payment journal must now be posted to commit the cash disbursement to the bank and general ledger. This posting does not post the payroll costs. It simply credits the bank, debits the payroll proxy vendor, and settles the payment journal lines with the invoice that was created earlier. The actual pay statement will be posted later on in the Post Pay statements scenario, which will post the payroll costs and liabilities. 18. Click Post, and then click Post. Note that 52 vouchers were posted. 19. Click the Close button on the Journal voucher form and also on the Payment journal form.

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GENERATE AN ADDITIONAL PAY STATEMENT 

Create a gross up bonus pay statement as a secondary payment for a worker in the same pay period.

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes Now that the primary pay run has been run for the pay period, it is common that additional payments may need to be made for things like bonuses, corrects, gross up payments, and so on. This step will walk through giving a gross up bonus to a worker who already received primary pay in the last run. However, note that additional pay runs do not have to be run after the primary. There is no dependency or requirements to the order in which pay runs are processed.

1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

3. On the Area page, under Common, select Earning statement, and then click Earning statements. The Earnings statement list page is displayed.

4. Select the earnings statement for Brad

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Sutton with a pay period ending on 1/4/2014. Note that only a single earnings statement can exist for a worker and pay period combination. The individual lines may be processed in different pay statements. In this example, a statement already exists for Brad because the Primary pay run has already been completed. A new line will be added to it to be processed in a different pay statement.

5. In the Earnings statement lines section, click the Add line button. 6. Enter the following information on the new line: Earnings date: 1/4/2014 Earning code: Anniversary award Rate: 1,000.00

7. Select the new line, and then click the Release lines for payment button on the Action Pane.

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8. Since a single pay statement needs to be generated, we are able to quickly generate an invoice for Brad for his gross up Anniversary award bonus. 9. Click the Pay statement button in the Process group on the Action Pane. Enter the following information: Payment date: 1/10/2014 Payment run type: Gross up 10. Click OK. Note that one pay statement was generated. 11. Click the Close button on the earnings statement form.

12. On the Area page, under Common, select Pay statements, and then click All pay statements. The Pay statement list page is displayed.

13. Double-click the pay statement for Brad Sutton with a pay period ending on 1/4/2014 and a Payment run type of Gross up.

PS Demo Script – Payroll Processing

Note that the 1,000.00 Anniversary award earning shows along with a system generated Anniversary award gross up earnings for 441.96. The Anniversary award earning code is configured as a gross up earning and in turn specifies the gross up earning code to use for the additional earnings. Since the payment run type of gross up was selected all gross up earnings for Brad were included and the gross up was auto calculated based on the sum of all employee taxes. This calculation also includes any tax on the system

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generated earnings. The result of the payment is a net pay of 1,000. 14. Click the Submit for payment button on the Action Pane to submit the pay statement to payment journal for payment. Note: The option to post this single pay statement to the general ledger at the same time exists by selecting the Post the selected pay statement check box. This will not be done for this scenario because this pay statement will post to the general ledger with all other pay statements created in prior scenarios for the Primary pay run in a later scenario. 15. Click the Submit button. Note that a payment journal with two vouchers was created along with a single invoice. Keep track of the journal number for later use. 20. Generate all payments (checks and direct deposit file) for the payment journal created earlier. On the Area page, under Periodic, select Pay statement processing, and then click Payment journal.

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21. Select the payment journal with the Journal batch number matching the journal number noted earlier. 22. Click the Lines button on the Action Pane.

Generate a direct deposit file for the electronic payments. 23. Click Functions, and then click Generate payments. Enter the following: Method of payment: Payroll-EL Bank account: PSUS PAYRL 24. Click OK.

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25. Click the Yellow folder icon to browse to the location where you want to save the ACH file. Also provide a file name in the File name field. 26. Enter the actual payment date of the payments being processed, 1/10/2014. 27. Click OK. Note that two transactions were included in the ACH file. The total dollars is also listed.

The payment journal must now be posted to commit the cash disbursement to the bank and general ledger. 28. Click Post, and then click Post. Note that two vouchers were posted. 29. Click the Close button on the Journal voucher form and also on the Payment journal form.

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POST PAY STATEMENTS 

Post pay statements to the general ledger.

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes This scenario will post all pay statements to the general ledger. All payroll costs (earnings, benefit contributions, employer taxes) will be posted. All pay statements for the selected pay period that have not previously been posted to the general ledger will be included in the process together. Depending on the batch transfer rules setup in the general ledger for the pay statement document, the pay statement lines may post in detail or be summarized.

The following is a list of all the postings that will occur as a result of running this process: 

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Earnings: o Earning cost is debited to the main account specified on the earning code. o Earning costs are credited to the Salary clearing account defined in the Payroll parameters form. Benefit deductions: o Deduction amount debits the Salary clearing account defined in the Payroll parameters form. o Deduction amount credits the deduction main account specified on the benefit plan. Benefit contributions: o Contribution amount debits the contribution main account specified on the benefit plan. o Contribution amount credits the main account, as defined in the Posting definitions in the general ledger setup based on the main account used for the debit. Employee taxes: o Tax amount debits the Salary clearing account defined in the Payroll parameters form. o Tax amount credits the main account specified on the tax code. Employer taxes: o Tax amount debits the main account specified on the tax code. o Tax amount credits the main account as defined in the Posting definitions in the general ledger setup based on the main account used for the debit.

If you want to show the full ledger entry for a specific pay statement, you can go to the pay statement list page or open the detail of a specific pay statement (Payroll > Common > Pay statements > All pay statements) and click the Financials tab on the Action Pane. From there, you can click the Subledger journal entries button to see the full entry for the selected pay statement. This can be done before or after posting has been run. If you do this before posting is run, it shows how it will appear in the ledger. If it is viewed after the posting is run, it shows the actual posted entry.

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1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

3. Post all pay statements for the pay period. On the Area page, under Periodic, select Pay statement processing, and then click Post pay statements.

1. Enter the following: Pay cycle: bw Pay period: 12/22/2013 – 1/4/2014 2. Click OK. Note that 45 pay statements were successfully posted to the general ledger.

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GENERATE VENDOR INVOICES 

Generate invoices for vendors associated with benefits and taxes.

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes Frequently, many of the benefit and tax liabilities (both employee and employer) need to be paid to the respective vendor for the benefit or tax. This scenario will automatically create and post invoices on the vendors that are configured for the respective benefit plans, worker benefit enrollments, or tax codes. This is useful for those transactions where the actual amount must be directly paid, such as garnishments, and some withholding taxes.

1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

3. Generate vendor invoices for all pay statements for the pay period. On the Area page, under Periodic, select Pay statement processing, and then click Generate vendor invoices.

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4. Enter the following: Pay cycle: bw Pay period: 12/22/2013 – 1/4/2014 Select All invoices 5. Click OK. Note that 18 vendor invoices were created.

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CLOSE THE PAY PERIOD 

Close the pay period to processing so that no additional transactions can be generated in the pay period.

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes This step will close the period to further processing. Earnings, pay statements, and other processes can no longer be run for closed periods. Earning lines can still be added to earnings statements for a closed period, but they will be paid in a later pay period.

1. Log on as MIAPSUS (or optionally as ADMINPSUS). 2. Open the Payroll module.

3. On the Area page, under Setup, select Pay cycles and pay periods.

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4. In the list on the left, select the bw pay cycle. 5. In the list on the right, select the pay period with a Period start date of 12/22/2013 and a Period end date of 1/4/2014. 6. Change the Status to Closed.

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EMPLOYEE SELF-SERVICE 

Review pay statements on the Employee Self-Service area of the Enterprise Portal.

Generate earnings

Review earnings

Generate pay statements

Review and edit pay statements

Issue payments

Additional pay statement

Post pay statements

Generate vendor invoices

Close the pay period

Employee self-service

Scenario and presenter notes

1. Log on as BradPSUS. 2. On the taskbar, click the Internet Explorer icon. 3. Navigate to the Employee services portal at http://dynamicsax.contoso.com/sites/Dynami csAx/EmployeeServices/. 4. In the Personal information group, click the Pay statements link.

5. Pay statements for Brad are displayed. 6. Click one of the pay statements to view and print the details. Note: The pay statements displayed here are automatically filtered to show only pay statements with a payment date less than or equal to today.

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CONCLUSION This demonstration has taken you through many of the typical processes Mia runs in a normal pay period at the City of Maple. Various worker and position configurations and situations have been highlighted, including:         

Earning exceptions for workers in both scheduled and salary positions. Employment leave integration. Multiple positions for a single worker. Automatic tax reciprocity for multiple tax regions. Benefit adjustments. Gross up payment. Primary payroll process for a full pay period. Integration with Accounts Payable for benefit and tax invoice creation. Pay statements on the Employee self-service.

GLOSSARY AND ADDITIONAL BACKGROUND CONTENT   

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Worker – An internal party (person). A worker is hired to work for a company, organization, or legal entity and can be an Employee or a Contractor. Position – Represents an allocation for headcount. Controls numerous settings on how payroll performs calculations. Earnings statement – A source document that contains all earnings for a specific pay period for a worker. May include earnings for multiple positions for the worker. This document is always open to be able to make adjustments to prior period earnings for payment in a current pay period. Pay statement – A financial source document that contains all the earnings, benefits, and taxes for a specific payment to a worker. This document is a financial document that records costs and liabilities in the general ledger when posted. It is also the source for payment journal lines, which are created for paying out the net pay of a pay statement. Gross up payment – Gross up payments are used when workers receive a specific, additional amount in their paycheck after taxes and all deductions. An example might be a car payment or relocation expense. The taxes are added to the payment as additional earnings automatically by the system after calculating the taxes. Fringe benefits – Fringe benefits are earnings that workers are taxed on, even though they do not receive any additional currency amount increase in their pay. An example might be a life insurance policy or a fitness allowance. Deduction arrear – If the net pay of a pay statement is negative, the system will back off benefit deductions until the check is at or above zero. Deductions that are removed are considered in arrears, and are owed to the employer. Depending on the configuration of the benefit, these deduction arrears amounts may be tracked for recovery in a future pay statement. Benefit accruals – Benefit accrual plans, such as vacation and sick time off, let you track accrual balances as they increase and decrease throughout the plan year. These balances accrue based on a rate per hour.

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Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial, customer relationship and supply chain processes in a way that helps you drive business success.

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