Exception Payrolls

With Exception Payroll processing, the sponsor gives the credit union a list of deduction amounts for all the members on the payroll. Exception Payrolls allow your credit union to have complete control of payroll processing. The Payroll Posting Summary window assists you in assuring that only balanced payrolls (total deductions or the control amount is equal to the check amount received from the sponsor) are posted. After the payroll posts for the first time, you can make changes, such as adding new member deductions, deleting members from the payroll, or changing member distribution amounts, as needed.

Complete the following steps to post an exception payroll:

1. When you receive the sponsor's list of deduction amounts and the check for the total deduction amount, make one of these general ledger entries:
   1. Use the Transactions – Teller Sales/General Ledger window to credit the sponsor's check to the undistributed payroll GL (usually account 803xxx). This automatically debits GL 739200 (teller drawer), or
   2. Use the Journal Voucher – Basic Journal Voucher window to credit the sponsor's check to the undistributed payroll GL (usually account 803xxx) and debit GL 731xxx (bank). This amount appears as a transfer on the teller-balancing sheet.
2. Upon receipt of the sponsor's deduction listing, compile a list of the members with deduction amounts that have increased, decreased, started or stopped since the last posting of the payroll. Some payroll sponsors provide their own listing of members with changed deduction amounts. If yours does not, compare the last list of deduction amounts to the new one. Enter any differences on a start/stop worksheet. Enter old deduction amounts as stops and new amounts as starts.
3. If your sponsor does not provide a list of members whose deduction amounts have changed, use this equation to balance the changes: previous payroll posted amount + total start amount (total new deduction amount) - total stop amount (total old deduction amounts) = new payroll posting amount. Always balance the changes before entering them on the members' payroll records.
4. Compare your new payroll posting amount to the sponsor's check amount. The two must equal for the payroll to balance. If they do not equal, reconcile them before changing members' payroll records.
5. When the payroll balances, use the Payroll Group Details window, Payroll Deduction Maintenance window, or Member Payroll Maintenance dialog box to make the deduction changes. As the changes are made, the Payroll Posting Summary window tracks the addition amount/count, the stop/deletes amount/count and updates the control amount accordingly.
6. Compare the amount in the Control Amount field on the Payroll Posting Summary window to the sponsor's check amount. The two amounts should equal.
7. On Payroll Posting Summary window, click the Effective Date down arrow to select the correct effective date from the pop-up calendar or enter the date in MM/DD/YYYY format. The effective date can be the current date, a future date up to four days in the future including a date across month end, Saturday or Sunday, or a holiday. The system will post and distribute the funds based on the effective date if received prior to the start of the daily cycle. The system will post the payroll based on the date specified in the Effective Date field, if the Force Post field is No and the Post field is Yes on all positive, exception, and negative payrolls. You cannot enter an effective date in the past on the Payroll Posting Summary window for an exception payroll, if the Post Online check box is not selected. You can only post an exception payroll with a past effective date if the Post Online check box is selected.
8. Click the Post down arrow and select Yes.
9. Enter the correct amount in the Amount to Post field and click Save. The TRANSACTION COMPLETE message will appear.