About setting up payroll calculations for paygroup benefit packages

Use the 5-3-4 Paygroups window to assign each paygroup its own set of payroll calculations that Sage 100 Contractor uses to compute its associated benefits. First you select the payroll calculations, and then you assign each a rate. When you perform the final compute of the payroll, 5-3-4 Paygroups is the source for the benefit rates.

In some cases, the calculation methods or the taxes to which a calculation is subject differ from union to union or from job to job. When the calculation method or taxes differ for a similar payroll calculation, you have to set up a separate payroll calculation.

For each paygroup benefit, create a separate payroll calculation in 5-3-1 Payroll Calculations in the Calc Method drop-down list, using the following guidelines:

• You can use most calculation methods for paygroups with the following exceptions:

  • 2-%Total Taxable Wages
  • 10-Per Day
  • 11-Per Pay Period,
  • 17-Tables
  • 18-Variable (manual calc)

  Benefits set up using these methods are excluded from reports.

• Some payroll calculations are computed after a paygroup benefit has been computed and its result has been added to the gross wages. In the Calc Method list, click 3-%Gross + Paygroup Benefits. For example, you might need to compute union dues after the vacation benefit has been added to the gross wage.
• Calculation method 3-%Gross + Paygroup Benefits requires the calculation to have a calculation number larger than that of the calculation that adds the benefit to the gross wage. Sage 100 Contractor executes each payroll calculation in the order established by the calculation numbers.
• To use the calculation for paygroup benefit packages only, select the Use in Paygroup Benefits check box.
• To include the calculation on a union report, under Reporting, select the union from the Union drop-down list. Union reports can only be included with the calculations of their own union number. If you are using union reports and have more than one union, you must create a set of calculations for each union.
• To include the calculation on certified payroll reports, under Reporting, select the type of benefit in the Benefit list.

You can use the same payroll calculation in different paygroups, but assign different rates. Suppose that in county A you have performed Davis-Bacon work. Recently, you won a Davis-Bacon contract in county B from the same government agency. The governing agency has not changed the calculation methods, but the wage and benefit rates differ. In setting up the paygroups for the new contract, you can use the same benefit calculations but assign different rates to them.