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Does anyone have a template for describing payroll rules in order to migrate to a new payroll system?


My company wants to change the payroll system and I'm in charge of describing the existing rules. It would help me a lot if someone could get me an example of a payroll set-of-rules which I could use as an example.

Not a simple answer to this one... I think you are asking for process definitions; not rules?

Every payroll system has it's own rules - and some, like PeopleSoft have no internal rules at all.

Then you have GTIO issues, etc. that have to be loaded as process...

So - here's a basic list of processes that have to be included in any formatting. I'm probably forgetting a few - and you may have some specific to your business that I can't know...

Payroll accounting process:

Payroll is a process that involves a number of tasks to be performed according to specific timetables. This process has a cycle, or series of activities, that take place on a recurring basis.

Employees are hired - Paying employees (a continuing cycle) - Employer payroll tax liabilities are booked - Employer makes payroll tax deposits - Payroll tax reports are prepared and filed.

Once employee is hired and begins to work, the next step is to keep track of the hours worked and pay the employee.

The taxes withheld from employee paychecks must be remitted to the government. The payroll specialist must comply with rules for payroll tax deposits and has the responsibility for making deposits on a timely basis. Employer is also responsible for reporting its portion of social security taxes, federal and state unemployment taxes for each employee on its payroll.

The payroll specialist must prepare federal, state, and local payroll tax returns at various times during the year, including W-2 forms.

With payroll tax deposits, the employer is responsible for remitting the taxes withheld from employee paychecks on a timely basis. The name for these taxes is "trust fund taxes", because the employer is trusted with taxes that employee has paid.

With Employer payroll tax liabilities, employers are responsible for their share of "social security taxes. Employers have to pay their own share just like employees do. However, the employer is responsible for additional taxes that the employees do not have to pay. Federal and state unemployment taxes are taxes that only the employer pays.

When reporting payroll tax activities, it is a very important part of the payroll process to prepare and submit various payroll tax returns to federal, state and local governments.

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