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Articles:

Credit Card Transactions

Entering Fixed Assets as Journal Entries

Estimating

Estimating-At-A-Glance

Estimating, Project Management Overview

Paying Liabilities and Transfers Between Accounts

Payroll Overview

Profitability

Proposals

Profits - Strategies to Improve

Responsibility As A Motivator

Risk Management

Schedule Variance

Take Your Business to the Next Level

Teamwork As A Motivator

Time Management

Time Management Matrix

Timetable of Procedures

The Balance Sheet, Part 1

The Balance Sheet, Part 2

The Balance Sheet, Part 3

The Balance Sheet, Part 4

Training Saves Money

Value As A Motivator

Year-end Close

Payroll Overview

Payroll is a big subject. It’s the second-largest module in Master Builder, and subject to more laws than any other part of business. Setting up, operating and maintaining the Payroll module in Master Builder is beyond the scope of this article. The steps outlined below are only intended to be a general guide to setting up Payroll. Since each company, each state, and often each region within a state involves different laws and practices, the best way to set up and operate the Payroll module of Master Builder is by working with a qualified Master Builder consultant.

Without a good foundation, the Payroll module in Master Builder becomes very difficult to deal with. Many companies choose to outsource their payroll, hoping that it will take a burden off of their overhead time and costs.

Since Master Builder relies on Payroll for a large portion of its job costs, a company running the program is almost required to run Payroll in Master Builder in order to obtain its true job costs. The savings in overhead by outsourcing Payroll become almost meaningless, and the supposed shifting of liability to the third party is a mirage. In the eyes of government agencies and insurance companies, the company which is the employer is always liable for payroll inaccuracies. So there is no reason not to run the Payroll module in Master Builder, and there is every reason to learn to run it well.

It’s a really good idea to test the Payroll setup prior to starting to use the module by entering a few records with specific scenarios and taking them all the way through the process. Some refinement of the setup will often be necessary to achieve the correct results. Any test records which may be entered can always be voided.

Screen 5-3-1 Payroll Calculations:

To set up this screen when no calculations have been entered, click on Options, Setup Payroll Calculations, Standard Calculations. If you have the current version of MB, certain calculations will be set up according to Federal and state law and tax tables.

Screen 5-3-2 Workers Compensation:

Enter the classifications, rates and Experience Modification supplied by your Workers Comp carrier. Ignore the Liability column for now – it’s too large a subject to tackle without a detailed explanation (consult with Technical Support or a Master Builder consultant). If the state(s) in which your company does business require(s) Hourly or Maximum Wage amounts to be entered, consult with Technical Support or a Master Builder consultant.

Screen 5-3-3 Positions:

The use of this screen determines what section of the Income Statement various employees’ wages and associated payroll expenses fall in. It also requires a detailed explanation and understanding by management of the results.

Screens 5-3-4 Paygroups, 5-3-5 Payroll Unions, 5-3-6 Local Payroll Tax:

Unless one or more of these screens is applicable to your company, there is no need to use them. If one or more of these screens is applicable to your company, a detailed explanation and information supplied by you to a qualified Master Builder technical support representative or consult will determine how the screens are completed.

Screen 5-2-1 Employees:

There are three tabs – General, Compensation and Calculations. The General tab is almost self-explanatory, but setup elsewhere is required for Comp Code and Position. The Compensation tab and Calculations tab depend on the laws under which the company operates and company policy. After the Payroll Calculations are completely set up in screen 5-3-1 above, Employees can be entered.

Screen 5-2-2 Payroll Records:

This screen depends on company workflow, company policies, and applicable law. It is essentially a timecard. However, there are many options, and other screens (e.g. 5-2-3 Compute Payroll) affect this screen to a large extent. Comprehensive training in the use of this screen is highly recommended.

Screens 5-2-3 Compute Payroll, 5-2-4 Payroll Checks, 5-2-5 Direct Deposit File Manager and 5-2-6 Post Payroll:

The use of these screens may be interdependent on how each one is used with the other, how Payroll has been set up, and how Payroll Records (screen 5-2-2) are entered. Although the actual operation of the screens is not complex, comprehensive training and practice in the use of these screens is highly recommended.

In summary, using the Payroll module is a good example of the entire operation of the Master Builder program: great pains have been taken to achieve very specific results, and extensive refinements over the years have been made in order to comply with best practices, company policies and specific laws in various parts of the construction industry and various parts of the country. Excellent results can be achieved, but not without effort. The module, like the program, requires a large amount of time and effort to set up and learn, but once operating after making necessary adjustments, a large amount of time and effort can be saved while producing detailed results.

Please contact me if you would like to learn more about instituting a comprehensive training process. Thank you.

Andy King
T: 805-771-8400
service@missiondevelopment.com