Union Processing

Overview

The accounting system allows the operator to calculate, accrue and track union fringe benefit information for multiple unions. In order to specify what fringe benefits are calculated, the system allows Fringe Benefit tables to be set up. These tables are essentially a group of fringe benefits with specific rates dictated by the union contract.

The Union Fringe Benefit features can also be used in a non-union environment to accrue and track employee fringe benefits such as vacation, sick pay, pension, etc.

Setting Up Union Processing

Preparing the system for union processing is a matter of completing the steps outlined below. Each step is important, so read this section thoroughly before attempting to set up unions.

Compile Union Benefit Information

Gather information about each union. This may include fringe benefit information for several different unions, as well as different classifications within a union.

Define Union Fringe Names and Accounts

From the System Setup menu, select Payroll Options. From the Payroll Options menu, select Fringe Benefit Dictionary. The following screen will come into view.

At this point, the dictionary of fringe benefits is entered. The operator may give each individual fringe benefit a description, a general ledger account in which accrued amounts will be held, and a code defining who pays for the fringe benefit and whether it is taxable to the employee.

These are General Fringe Descriptions; no specific calculation percentages or amounts are needed. Also, since this is just a dictionary to be pulled from at a later time, the Paid By column can be changed during fringe benefit table setup to suit the individual union requirements.

Number Your Unions and Fringe Benefit Tables

To understand the numbering conventions in the accounting system, study the following example.

This sample company works with three different unions. Within each union, there are multiple rate tables which need to be entered into the accounting system.

Notice how each union has a specific number, but the Benefit Tables have a totally independent numbering system. In other words, Union #2 (United Drywall Hangers) is not in any way associated with Fringe Table #2 (Plumber Journeyman).

Set Up Unions and Benefit Rate Tables 

Now the dictionary may be used to build calculation tables for individual unions. To do this, select Payroll Options from the System Setup menu. Now select Unions. The following screen comes into view.

Here, a list of all unions currently set up in the accounting system may be viewed. Press the Insert button or highlight the desired union and press the Change button. The following screen will come into view.

Here, information can be entered about the union and any number of union fringe benefit tables may be assigned.

Fringe Benefit Tables

Press the Insert button or highlight the desired fringe benefit table and press the Change button. The following screen will come into view.

The accounting system will automatically assign a Table ID when a table is inserted. This is the fringe table number used in Employee Entry and Timesheet Entry to specify which union table should be used in payroll calculations.

Press the Insert or Change button to create or change a fringe benefit. The following screen comes into view. Now the specific fringe benefit rates and pay types for each union classification can be entered.

Handling "Paid By Employee" Pay Types

Some fringe benefits, most notably Union Dues, are actually amounts which are paid by employees and must be deducted from their gross pay during payroll processing. If any of the fringes are "Paid by Employee" type fringes, they will be deducted from the employee’s gross pay. It must be specified which Standard Deduction number will be used for this deduction.

For this reason, if any "Paid by Employee" fringes will be set up, go to the Standard Deduction Setup screen and rename or create a deduction called "Union Deductions" or something similar.

Assigning Default Unions in Employee Entry

Once the union tables have been set up, the package of fringes created can now be reached by referencing the Fringe Table number.

If an employee belongs to a certain union and all of the hours they work are subject to calculation of union fringe benefits, specify their default fringe benefit table number in their employee record. This will cause the system to always insert the default fringe benefit table number into any timesheets entered for this employee.

Assigning Unions Timesheet Entry

There may be times when a different set of union fringe benefits should be calculated for an employee’s time. If this is the case, remember that the union fringe table number can always be manually overridden during timesheet entry processes. Any fringe table number needed can be entered at that time.

Assigning Default Unions in Wage Rate Table Entry
Preferred Feature Only

In the case of some prevailing wage jobs, there may also be a prevailing package of union fringe benefits. The accounting system allows the operator to specify the prevailing fringe benefit table when setting up prevailing wages in the Wage Rate Table entry screen.

Union Processing Information in Payroll Posting Reports

As timesheets are posted, union accruals are reflected in various locations on the Payroll Posting reports. First, the Payroll Summary report lists totals for the entire posting. These include total taxable union accruals and total fringe benefit accruals, listed by fringe type.

Next the Payroll Detail Listing includes a full Fringe Benefit section for each employee. This section gives employee totals by fringe type. Any fringes paid by the Employee or paid by the Employer but taxed to the Employee will show up in the Deductions section under the user-defined deduction number. As this report prints the line item detail for the employee, the Union column will print the total union accrual amount for each set of hours.

On the Summary of Accrual listing, union fringe totals for the entire posting are once again printed.

Finally, the G/L Summary of Payroll Posting shows all the G/L transactions associated with the posting. These will include transactions to credit certain union accrual accounts as specified in Union Tailoring. It will also post the expense for the union accruals as directed in the Miscellaneous section of Payroll Tailoring.

Union Reporting

Special union reporting capabilities are contained in the Union File Edit/Reports menu option from the Payroll main menu. The most useful of these reports is the End-of-Month Union Report. This report breaks down the regular, overtime and total hours and earnings for union table by employee. It is accepted by many unions as documentation of adherence to the union contract.