If you are starting to use Patriot Software any time after the first pay date of a calendar year, it’s very important to enter all employees’ prior payroll history for the calendar year. This will ensure that taxes calculate properly and that W-2s will be correct at year-end.
You must enter all prior payroll history before running payrolls in Patriot Software. Some taxes such as Social Security and Unemployment are calculated on the employee’s first “X” dollars per calendar year. Entering payroll history ensures that the limits have been updated so that the taxes in Patriot Software also will be correct. If you need to enter payroll history after running a payroll, please contact Customer Support.
Before you enter payroll history, please make sure you:
- Add all of your employees into Patriot Software.
- Add any employee deductions/contributions to employee records.
- Add any missing information listed at the top of the page, including your SUTA tax rate.
- Have the hours, wages, deductions, and tax amounts for each pay date for each employee available from the beginning of the year, including the current quarter.
- Enter the employee history from oldest to newest, beginning with the first quarter of the year, up through the current quarter. For previous quarters this year, you can enter any level of employee detail, either by pay date or a lump sum for the quarter. For the current quarter, you will need to enter the history by each pay date, oldest to newest. This will allow either our optional tax filing service (for Full Service Payroll customers), or your own accountant to determine the payroll taxes to deposit and file on your behalf this quarter. If you are a 941 Schedule B filer, you will need to enter by pay date for the entire year.
To enter payroll history:
In the setup wizard, after you add all of your employees, you will be asked if your company has paid any employees this year. Answer “Yes” to begin entering your payroll history.
Enter Payroll History
- Enter the period start and end dates, and a check date for this entry. These dates should be meaningful for you, whether it’s a paycheck date or quarter-end date — as long as you can identify the prior payroll time frame. The dates you enter will apply to all employees you are entering for this payroll history. Note that the payroll history check date must be in the current year.
- Select the employee from the dropdown list. You will enter information for one employee at a time, but can add more employees later.
- The grid will show ALL types of hours, money, deductions, and company paid contributions that are set up at the Company level. Enter the amounts that apply to this employee. If a field does not apply, leave it blank. Click “Continue.”
- Next, enter the employee taxes that were actually withheld for this pay period. Enter the employer taxes for this pay period in the bottom section. If a tax does not apply, enter $0. After you enter all amounts, the totals will appear at the bottom, including the calculation of gross to net pay. Click “Continue.“
- At this point, we will check to make sure the tax amounts you entered are correct, based on the tax information we have. If we have found a difference in what we think the taxes should be, you will have a chance to either “Review Wages” to go back to the entry page and make corrections, or click “Ignore” to continue. When you are finished entering all of your payroll history, we will give you a breakdown of the differences we found.
If you have more than one employee for this pay period, you can now repeat the process for each employee.
Pay Period Summary
A summary of this employee’s check totals will display for the pay period. You can edit or delete this employee’s payroll history here. You can also add more employees to this pay period. When you are finished entering all employees for this pay period, click “Continue.”
You can now add more pay periods as needed.
Approve Payroll History
A summary list of payroll history checks will display, showing each pay period and number of employees. You can go back and edit any of the pay periods as needed before you approve your overall payroll history. When you have finished entering payroll histories for this date for all employees, click the “Approve Payroll History” button. Click “Yes” to the question that you are done entering all of your payroll history.
Review Tax Adjustments
Patriot will check to be sure the taxes you entered match our calculations, based on your tax rates and employee earnings. If the amount of employee and/or employer tax that you entered in your payroll history does not match our calculations, you will see a page to review the tax adjustments. Details showing the difference between our calculated tax amounts and the tax amounts you entered are displayed by pay date. If needed, you can edit the employee’s payroll history in order to fix the tax amounts, or if you want to accept the tax adjustments as they are, click “Accept Tax Adjustments.” Patriot will assume that you will make any tax corrections to your past records, so your tax calculations will be correct going forward.
Note that once you enter payroll history info for a particular Hours Type, Money Type, Deduction, or Contribution, you can no longer delete these from your Company lists. Likewise, once you enter payroll history info on an employee’s record, these types are no longer able to be deleted from the employee’s record. If you have deduction and/or contribution limits for an employee, the amounts you entered in Payroll History will apply to the limits.
If you need to completely void payroll history for an employee, see Voiding a Payroll History Entry.