While regular employees all have at least one “Wage” employee payroll item, substitute pay works differently. Although substitutes still need employee payroll items for retirement, income taxes, and FICA/Medicare contributions, they should not be assigned a “Wage” item. Instead, each pay is recorded on the Human Resources > Employee Attendance/Time Off/Substitutes page, and all employees can use the same default “Substitute Pay” district payroll item.
This district payroll item is set up so that it automatically contributes to all six payroll items.
Of course, no single pay should contribute to all those subtotals at once. Instead, an algorithm will use the substitute position’s retirement plan to determine which subtotals should be applicable for this entry.
For this reason, substitute employees should have different substitute positions if they have multiple substitute roles that contribute to different subtotals.
The following table demonstrates how each retirement plan impacts the six subtotals.
|
Tax |
SUTA |
TRS |
IMRF |
FICA |
Med |
|
|
TRS |
+ |
+ |
+ |
+ |
||
|
IMRF/FICA |
+ |
+ |
+ |
+ |
+ |
|
|
FICA Only |
+ |
+ |
+ |
+ |
||
|
None |
+ |
+ |
+ |
Special care should be taken with the retired certified substitutes, who contribute to neither TRS, IMRF, nor FICA. These employees should use the “None” option for retired certified substitute positions. If the Retirement Plan is left blank instead, this can cause problems on the Federal 941, as the wages will count toward FICA Earnings.
To mass edit retirement plans:
- Go to Financials Main > Human Resources > Employee Positions (multi-view)
- Mass Edit Positions
- Choose the Retirement Plan
- Check the employee positions that should be changed
- Save