This article is an overview of how Payroll Companies and Payroll Journal Entry Clearing Settings are configured for Workforce.
Payroll Company Setup
Payroll Companies are used only within Workforce and represent the company associated with a single EIN for the purpose of Payroll processing. Within Workforce, Payroll Companies are associated with Payroll Batches, Employee distributions (direct deposit, check, pay card), and tax reporting.
Payroll Company details are managed by R365. For assistance with adjusting the details for a Payroll Company, please contact R365 Support.
Many of the pages within Workforce display only a single Payroll Company at a time. The displayed Payroll Company can be changed using the Payroll Company drop-down.
Typically, each Payroll Company is paired with a single Legal Entity in Accounting. This results in Payroll Batches, Employee distributions, and tax filings that are grouped at the Legal Entity level. Employees who work at multiple Locations will receive one Paycheck per Legal Entity associated with their work Locations.
Payroll Common Payer
When multiple Legal Entities within Accounting process Payroll under one EIN, a single Legal Entity is configured as a Payroll Common Payer in Accounting, then paired with a single Payroll Company. This results in Payroll Batches, Employee distributions, and tax filings that are grouped at the Payroll Common Payer Level. When an Employee works at multiple Locations, they will receive one Paycheck for each Payroll Common Payer associated with the Legal Entities associated with their Work Locations.
Learn more about Payroll Common Payers here.
Paycheck Runs and Payroll Journal Entries
The Payroll Clearing setting also determines if Estimated Payroll Journal Entries are cleared individually or as a group. Estimated Payroll Journal Entries are created per Location when the DSS for a Location is polled. When an actual Payroll Journal Entry is created, the estimate is cleared. Learn more about Estimated and Actual Payroll Journal Entries here.
|Setting||Paycheck Runs Created||Payroll Journal Entries Created||Payroll Journal Entry Clearing|
|Per Location||1 per Location in the Payroll Batch||1 per Location in the Payroll Batch||Each Payroll Journal Entry is associated with the Estimated Payroll Journal Entries from a single Location.|
|Per Legal Entity||1 per Payroll Batch||1 per Payroll Batch||Each Payroll Journal Entry is associated with the Estimated Payroll Journal Entries for all Locations associated with the Legal Entity.|
|Per Payroll Common Payer||1 per Payroll Batch||1 per Payroll Batch||Each Payroll Journal Entry is associated with the Estimated Payroll Journal Entries from all Locations associated with all Legal Entities associated with the Payroll Common Payer.|
Important Note: The Per Location and Per Legal Entity options cannot be used with a Payroll Common Payer setup. The per Payroll Common Payer option must be used when a Payroll Common Payer setup is in place.
|Paycheck Run and Payroll Journal Entry Clearing Examples:|