When is the GL Clearing Account Used in WinTeam?
The GL Clearing account should be a unique general ledger number. The GL number should not be used for any other reason that to process payroll on the system. When the system updates payroll to the general ledger, the system uses this account in order to process the four journal reports (Payroll Tax Journal, Labor Distribution Journal, Other Compensations Journal, and the Other Deductions Journal).
When WinTeam updates the Payroll Tax Journal, all of the GL Payroll Tax accounts (Federal, FICA, Medicare, State Taxes, etc) and net payroll are credited. Then in order to balance (debits and credits have to equal) the system debits the total amount to the GL Payroll Clearing account. The Payroll Tax Journal includes all payroll taxes related to this payroll. When we update this information to the general ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the Check Date of the batch.
When WinTeam updates the Labor Distribution Journal, all of the GL Labor accounts (Wages, Salary, Overtime, Vacation, Holiday, Sick, Training, etc) that are processed with this payroll are a debit. Then in order to balance (debits and credits have to equal) the system credits the total amount to the GL Payroll Clearing account. The Labor Distribution Journal includes all labor associated, down to the job level, related to this payroll. When we update this information to the general ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the Pay Period Ending Date of the batch.
When WinTeam updates the Other Compensations Journal, all of the GL Labor accounts (Back Pay, Bonuses, Commissions, Car Allowance, Mileage Reimbursements, Severance, Uniform Pay, etc) that are processed with this payroll are debited. Then in order to balance (debits and credits have to equal) the system credits the total amount to the GL Payroll Clearing account. The Other Compensations Journal includes all other pay related to this payroll. When we update this information to the general ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the Pay Period Ending Date of the batch.
When WinTeam updates the Other Deductions Journal, all of the Other Deductions accounts (Garnishments, Child Support, Insurance, Savings, Union Dues, etc) that are processed with this payroll are credited. Then in order to balance (debits and credits have to equal) we debit the total amount to the GL Payroll Clearing account. The Other Deductions Journal includes all Other Deductions related to this payroll. When the system updates this information to the general ledger, the posting date is determined from the Payroll Processing Update General Ledger screen. The default for this date is the Check Date of the batch. Since the GL Payroll Clearing account is only used to process the four journals, as of the Check Date of the batch, this account balance should net to zero.