You can add, edit, and review employee information at any time.
Deleting Employees
•An employee cannot be deleted if the employee has paychecks.
•If an employee leaves, mark them as an 'ex' employee.
Name and address
•Enter the employee's name exactly as shown on their Social Security card.
•Enter the employee's mailing address.
•Select the state tax calculation to use for this employee.
•The State Tax Calculation can be different than their mailing location.
•All 50 states plus Puerto Rico can be selected - even states with no withholding tax.
Social Security Number
•Enter exactly as shown on the employee's Social Security card.
•Employers are subject to fines if you do not have the proper SSN for each employee.
•Do not accept an ITIN.
•If the employee is applying for a SSN, you can enter something 'made up' for a short time, but do not continue to employ the person if they cannot provide proof of the application, and the actual SSN in a reasonable time frame.
Payroll Period
•Select the default pay period (pay frequency) for this employee.
•The payroll period for a specific check can be changed as the check is being entered.
•If you have selected to include the period ending date on the pay stubs, the beginning and ending pay period dates will both be printed, based on the pay frequency.
•The Payroll Period is a critical part of the tax calculation process.
•Medlin Payroll Software calculates taxes using the annual method.
•If you are seeing withholding amounts far different than you expected, check to see you are using the correct payroll period.
•If you pay twice a month (semimonthly) and your pay periods are not the 1st through the 15th and the 16th through the end of the month, the period beginning date will not be printed.
•You can manually enter the period beginning date by clicking the 'Memo' button on the Paycheck entry screen.
Department
•The department field (up to six characters) is used to separate the employee figures for the department breakdown on the bottom of the Payroll Check Listing report.
•The employee's department is also important for preparing Worker's Compensation (WC) reports.
•Use a different department for each WC insurance rate category, and filling your annual WC form will be very easy.
Ex-Employee
•Check this option to tell the software the employee is no longer in your employ.
Hire Date
•Select the date the employee was hired.
•This date is used when printing the New Hire Report.
•All states require employers to report all new hires within a certain number of days.
Hourly Rate / Salary (per check)
•Medlin Payroll Software Classic and MICR Editions allow one pay rate and department per employee
•If you have employees with multiple pay rates, manually calculate the earnings and enter the amount in one of the Other Income fields.
•Medlin Payroll Software Professional Edition allows two pay rates and departments per employee
•Overtime is calculated at 1.5 of their usual rate, subject to RROP calculations.
Salaried
•A salaried employee is someone who gets the same amount of gross pay each check, whether they work 1 second or 168 hours per week.
•Check this option if the employee gets the same dollar amount on every paycheck.
•Enter their per paycheck salary in the Salary (per check) field.
•NOTES
•A salary does not mean the net pay will be the same on each check.
•For accuracy, we calculate Social Security, Medicare, and certain other deductions on an annual basis.
•This means a salaried employees net pay can vary by a cent or two, depending on the rounding of certain deductions.
•This reduces the 'fraction of cents' adjustment on Form 941, and is the most accurate calculation possible.
DOB (Date of Birth)
•IF REQUIRED, enter the employee's date of birth.
•As of Jan 2022, there are only three instances where the DOB is needed. All three are state required retirement plans (subject to eligibility).
•California - Cal Savers - calsavers.com
•Illinois - Secure Choice - ilsecurechoice.com
•Oregon - Oregon Saves - oregonsaves.com
•Notes
•The DOB field was added late in 2021.
•Since it is a new field, there was no existing DOB to use.
•For existing employees, the DOB was preset to 1/1/60.
•Unless you have one of the above items to deduct and report, you can ignore the DOB field.
•The DOB does not appear on any other report or statement.
•The DOB is only used for specific items shown above.
Memo
•You can enter a unique memo for each employee.
•Their memo will appear on the screen, when entering checks for the employee, and can also print on the employee's check stub.
•Use this field to remind yourself of special deductions for the employee, and to explain them on the pay stub.
Memo (Private)
•This memo ONLY appears on the employee's screen, and the Employee Data report.
•Enter the employee's e-mail address and you will be able e-mail pay stubs to this employee, if desired.
Federal and State Information
•Employee Status and Allowance information is given to employers via a completed Federal W-4 form and in some cases, a special state form.
•For withholding purposes, the Status and Allowance information determines (in part) which withholding calculations are used.
•There may be additional state specific information to set, depending on the employee's state tax calculation.
Additional WH
•Employees can request additional federal and state withholding on their W-4 and/or state forms.
•Enter the extra amount to be withheld from each paycheck.
•The additional withholding will continue until this amount is changed.
•The additional withholding amounts will need to be factored in if you are comparing the Medlin Payroll Software calculation against the state or federal guide books.
•Additional tax is entered in whole dollar amounts.
Fixed Deductions
•A fixed amount or percentage to be deducted from each paycheck.
•Enter percentages with the percent sign (2.52%, 1%, etc.).
•To use one of the fixed deduction fields, setup one or more of the Fixed Ded 'types' in the Paycheck Deduction section of the Setup screen.
•Fixed deductions are ideal for recurring deductions that are not the same for each employees, or for when there is a deduction that does not apply to every employee.
Retirement Deduction
•A fixed amount or percentage to be deducted from each paycheck.
•Enter percentages as 2.52%, 1% etc.
•To use this calculation - on the 'Setup' screen, one of the 'Adjustments to Income' must be set as 'Retirement' or '401k Plan' AND one of the 'Paycheck Deductions' must be set as 'Retirement'.
•See the Retirement Setup topic for more detail.
Section 125
•For this field to be active, 'Section 125' must be selected as one of the 'Adjustments to Income' on the 'Setup' screen.
•Enter a fixed dollar amount to deduct from each check.
•See the Section 125 Setup topic for more detail.
Section 132 (Professional Edition only)
•Qualified salary reduction agreement amounts (employee contributions) which are allowed under IRS Section 132.
•For this field to be active, 'Section 132' must be selected as one of the 'Adjustments to Income' on the 'Setup' screen.
•This item should only be used if your state follows the IRS regulations and does not have their own separate rules for Section 132 amounts.
•Amounts entered as Section 132 normally removed from gross pay, and not used for any paycheck tax calculation, or employer paid tax calculation.
•One exception is Section 132 (along with Section 125/Cafeteria) can be set to be included for employer paid SUTA calculations.
•On the Employee screen, in the Fixed Deduction section, you can designate a fixed amount for each check.
•On the Employee screen, in the Fixed Deduction section, you can designate a fixed amount for the first new paycheck each new month, by entering the desired monthly amount, AND checking the 'Once a Month' box.
•You can manually add/edit the amount when creating a paycheck.
•MAKE SURE the amount you allow the employee to contribute to Section 132 is within the amount allowed by the IRS.
•Medlin Payroll does not build in any limit, since there are separate limits based on the type of item the contribution is for.
Individial PTO Parameters (Professional Edition only)
•Refer to the PTO Setup section for details.
•Employees marked as salary, the left three columns are ignored.