About hand-computed cheques

Important! When adjusting any calculation balances, it is important to consider the impact to the employee’s taxable wages. Additional adjustments to the wages may be necessary.

Use hand-computed payroll cheques to make small adjustments to the calculation balances stored in an employee record. When you assign pay type 3-Hand Computed to a payroll record, Sage 100 Contractor limits entry to the Calculations tab.

To adjust the balance of an employer cost, enter a negative sum to deduct from the balance, or enter a positive sum to add to the balance. The adjustment does not affect the employee’s net wages.

To adjust employee costs, transfer the sum from one calculation balance to another. Depending on which balance you are adjusting, you can offset the net cheque amount to Federal Income Tax or Payroll Advance.

• Use Federal Income Tax to adjust federal taxes such as CPP or EI.
• Use Payroll Advance to change the amount of the net pay cheque.

Suppose that you have over-deducted $10 for CPP from Dick’s gross wages. On the Calculations tab, you enter –$10 in the Amount cell for the Employee CPP calculation. Then in the Amount cell of Federal Income Tax, enter $10. Sage 100 Contractor deducts the $10 from the Employee CPP balance and adds it to the Federal Income Tax balance. Rather than moving the balance to Federal Income Tax, you could enter the amount in Payroll Advance. Sage 100 Contractor would then add $10 to the employee’s next pay cheque.