Within Infinity POWER:
1. Click on Systems
3. Set Up and Maintenance
4. Set Up Special Pay Types
5. Click the Create a Record button located beside the binoculars (allows you to create a new special pay type)
6. Type in EIC for Pay Type
7. Description is Advanced EIC credit
8. Type is Earning
9. Leave all boxes unchecked because these wages are already taxed and need not be taxed again.
10. W-2 Form Status: is Advanced EIC Payments.
11. The GL account that must be used here is the Federal tax liability account used in your chart of accounts to track what you have set up on your payroll.
The form should look like the print screen below. (Your GL account may be different than the sample GL code)
Click Save once you have finished and your Special Pay Type is now set up.
Sample of GL account to be used.
Once you have clicked save you must now go into each employee who is approved for Advanced EIC payments and add this special pay type to their employee set up.
1. Enter into first employee payroll file
2. Click the Modify Record button
3. Click on the Pay Types tab at the bottom of the window
4. Once you have clicked this you will see the following screen.
5. In the first blank line below the special pay types you already have set up, type in EIC.
6. Click the second box labeled Perm.
This field indicates to the system whether or not the special pay type is permanent. If the special pay type is permanent, <click> on this checkbox and this pay type will remain in the employee's pay data until manually removed. If the special pay type is temporary, leave this checkbox blank and the system will remove this pay type when the option to "Print Checks"is executed. If you will be utilizing the "Max Per Check" or the "Max Per Year" fields, this option must be set to (Y)es.
7. You must then use the Circular E tables to calculate what the employees per pay period advanced payment should be.
8. This amount will be entered into the Max Per Check field.
Max Per Check
This field contains the maximum amount to be automatically calculated for any one check for this employee. When the Special Pay Type amount is calculated for a check, it is checked against this amount and will only calculate an amount up to this amount. Although this is an automatic calculation, it may be overridden at the time the pay data information is entered.
Below is a sample of how your screen should appear:
9. Click Save and the employee will now receive the advanced Earned Income Credit added to their check every pay period.
The advanced Earned Income payments will print in box 9 of the employee's W2 when printed at the end of the year.
31st o March, 2009