For employees, payday is the reward for one or more weeks of hard work. For payroll and accounting professionals, there are a few more steps before the work is actually completed!
On each employee’s paycheck – there are amount withheld typically for:
- Federal/State mandated withholding
- Social Security/Medicare
- Insurance & voluntary deductions
- Child Support & garnishments
Payment of these withheld amounts – plus any employer-provided or matched items – falls on an Accounts Payable process.
FundView Payroll automates the payments of withheld amounts by creating Accounts Payable invoices with pre-determined payment dates according to each type of deduction. Here’s how that saves time for our users:
- Payments are created by the payroll system and automatically sent to Accounts Payable each payday. Payments are pre-distributed to the appropriate expense and liability accounts according to each employee’s designated charging department (or split departments).
- Employer-paid benefits are also charged appropriately and applied to employee tax records at year-end in compliance with Affordable Care Act and other reporting requirements on the W-2s.
- Payments that are automatically withdrawn from the organization’s bank now have automatically generated entries to dovetail the bank reconciliation processes.
- Refunded deductions create Accounts Payable credit memos to offset previous invoices. Appropriate General Ledger entries are also generated to adjust the expense and liability accounts.
Ready to let your software do the work for you? Call 806-794-3278 or email us for a demo of our Financial Suite modules, including General Ledger, Accounts Payable, Secure Signatures, and Payroll!
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