Appendix C - Payroll Total Codes
Overview
Understanding total codes will make the Payroll installation a much easier task, as they are required in most areas of the payroll definition. As apayroll becomes more complex, new total codes may be defined to cover the many situations that arise. Refer to the Contribution, Deduction, Pay, Tax, and Total Code Maintenance tasks either in this documentation or on your terminal while studying total codes.
Total Code Definition
As described in the Total Code Maintenance task, total codes identify accumulators that are used during payroll calculation. These accumulators store intermediate results during the payroll calculation and become the basis on which subsequent calculations are made.
Total Code in Pay Code Maintenance
In the definition of pay codes, there are multiple fields for specifying total codes at the bottom of the screen. Each of these total codes (up to 10) accumulates the earnings for each employee during the Payroll Calculation process. These are output or "Total To" code designations.
Total Codes in Contribution, Deduction, and Tax Code Maintenance
In the definition of contribution, deduction, and tax codes, there are two different areas where total codes may be entered. The Total Code entry in the upper section of the screen specifies the total code that has accumulated employee earnings on which contributions, deductions, or taxes are to be based.
The definition for contribution, deduction, pay, and tax codes also allows a second total code entry in the lower section of the screen. This entry is an output or Total To code designation. The deduction, contribution, pay, or tax dollar amount resulting from payroll calculation is then added (+) to, or subtracted (-) from, the designated Total Code based on the Operator entered, either (+) or (-). The easiest explanation of Total Codes is through examples.
Total Code Example One
In a simple payroll where all contributions, deductions, and taxes are based on the gross earnings of the employee, all pay codes (i.e., regular pay, overtime, commission pay) would accumulate in only one total code, usually named 01 and described as Gross Earnings. In this example, 01 would be entered in the Total To field (lower section of the screen) and “+” entered in the Operator field for all pay codes defined. These entries specify that during the payroll calculation, each amount entered for each pay code would be added to total code 01 for use later in the calculation. Remember that the total code is reset for each individual employee as payroll is processed.
As part of the definition of each contribution, deduction, and tax code, a request to enter the total code is made in the upper portion of the screen. The amount accumulated in the total code specified here is the basis on which this contribution, deduction, or tax is calculated during Payroll Calculation. In this example, the total code for all contributions, deductions, and taxes would be 01, Gross Earnings.
Total Code Example Two
This is an example of a more complex payroll where a non-taxable 401(k) Plan must be processed and the total codes are again used.
In the Total Code maintenance task, two total codes must be defined:01, Gross Earnings and 02, Taxable Earnings.
In the Pay Code maintenance task, all pay codes are defined with two entries under the Total To and Operator fields.
Total To Operator
01, Gross Earnings +
02, Taxable Earning +These entries direct all earnings to be accumulated in both the 01 and 02 total codes.
In the Deduction Code maintenance task, a code must be defined for the 401(k) deduction named 4K. Since the basis for the 401(k) calculation is the employee’s gross earnings, the total code entry in the upper section is 01, Gross Earnings. The lower portion of the screen is specified as 02, Taxable Earnings, with an Operator entry of -. This will direct the subtraction of the resulting 401(k) amount from the 02, Taxable Earnings total.
In the Tax Code maintenance task, the total code for Federal taxes (upper section) must be specified as 02, Taxable Earnings, from which the 401(k) deduction has been subtracted, so that Federal taxes are calculated on the taxable earnings rather than the gross earnings. The total code for FICA taxes (upper section) is specified as 01, Gross Earnings, so that FICA taxes are calculated on the employee’s gross earnings. You should not enter Total Codes with reference to the 401(k) in the "Total to" (lower section).
Federal Information Processing Standard (FIPS 5-2) Postal Abbreviations and Numberic Codes
| State | Abbr. | Code* | State | Abbr. | Code* |
|---|---|---|---|---|---|
| Alabama | AL | 01 | Montana | MT | 30 |
| Alaska | AK | 02 | Nebraska | NE | 31 |
| Arizona | AZ | 04 | Nevada | NV | 32 |
| Arkansas | AR | 05 | New Hampshire | NH | 33 |
| California | CA | 06 | New Jersey | NJ | 34 |
| Colorado | CO | 08 | New Mexico | NM | 35 |
| Connecticut | CT | 09 | New York | NY | 36 |
| Delaware | DE | 10 | North Carolina | NC | 37 |
| District of Columbia | DC | 11 | North Dakota | ND | 38 |
| Florida | FL | 12 | Ohio | OH | 39 |
| Georgia | GA | 13 | Oklahoma | OK | 40 |
| Hawaii | HI | 15 | Oregon | OR | 41 |
| Idaho | ID | 16 | Pennsylvania | PA | 42 |
| Illinois | IL | 17 | Rhode Island | RI | 44 |
| Indiana | IN | 18 | South Carolina | SC | 45 |
| Iowa | IA | 19 | South Dakota | SD | 46 |
| Kansas | KS | 20 | Tennessee | TN | 47 |
| Kentucky | KY | 21 | Texas | TX | 48 |
| Louisiana | LA | 22 | Utah | UT | 49 |
| Maine | ME | 23 | Vermont | VT | 50 |
| Maryland | MD | 24 | Virginia | VA | 51 |
| Massachusetts | MA | 25 | Washington | WA | 53 |
| Michigan | MI | 26 | West Virginia | WV | 54 |
| Minnesota | MN | 27 | Wisconsin | WI | 55 |
| Mississippi | MS | 28 | Wyoming | WY | 56 |
| Missouri | MO | 29 | |||
| * Use on code S or Code 1S/2S Supplemental Records only. | |||||
Territories and Possessions
| Name | Abbr. |
|---|---|
| American Samoa | AS |
| Guam | GU |
| Northern Marian Islands | MP |
| Puerto Rico | PR |
| Virgin Islands | VI |