Checks and Balances for Payroll


Using your Payroll Summary Report use the following formulas for verification:

FICA and FICA Matching (% may change) FICA deduction 7.65/FICA benefit 7.65
G3 x 7.65 = FR (or the code you use for the FICA Benefit)
G3 x 7.65 = T2

Medicare and Matching Medicare (Illinois Schools) - These figures should always equal
G7 x 1.45 = m
m = MC and MR (deduction/benefit codes may vary from district to district)

IMRF (Illinois Schools) Employee and Board Share
G5 x employee share = ie
ie= IM (deduction code may vary from district to district)

G5 x board share = ib
ib= RM (benefit code may vary from district to district)

Depending on the state and retirement gross codes (i.e. G4(I) G5(T) ) setup your own formulas for verification of totals.

PERA (Colorado Schools) Employee and District Share
G5 x employee share = ie
ie = PERA (deduction code may vary from district to district)

G5 x district share = ib
ib = PERAMA (benefit code may vary from district to district)

The “X” Wages on the bottom of the last page are a breakdown of total gross for each pay entry, separated by gross codes (aka gross code indicators).

For example, a gross code of 5 will total into the X5 wages. This is a separation “tool” for grosses for those that want a total for each gross code used in the payroll entries. The total of the “X Wages” will equal the G1 Wages, which is the total gross entered for the payroll. There is a Gross Pay by Indicator report for a break down.

The FICA Breakdown is located on the last page of the payroll summary. FICA is made up of two components Social Security (Oasdi) and Medicare (HI). SDS splits the total FICA into these breakdowns using the T21 and T22 codes for reporting purposes.

Taxable Gross
G1 – all tax sheltered deductions = G2(taxable gross)

Direct Deposit Totals
The total of the Direct Deposit Report must match the total of the Direct Deposit column on the Employee Check Register Report

Net Pay
Total on Payroll Distribution Report – Total on Payroll Liability Report = NT

To understand your payroll reports better search for “Understanding Your Payroll Reports”.