Debt Audit Worksheets FEHB Audits

Transcription

1 Debt Audit Worksheets FEHB Audits Defense Finance and Accounting Service INDIANAPOLIS PAYROLL OFFICE August 22, 2014 Integrity - Service - Innovation

2 Training Objective Identify steps in processing a Debt Audit Reading Employee s Master Pay History Calculating Employee s Pay Understanding Debt Creation 4/10/2015 Integrity - Service - Innovation 2

3 Employee s Master Pay History Master Pay History is a record of an employee's pay history for current and previous pay periods. Online Refers to records that can be viewed up to 26 pay periods from current. If an employee is assigned overseas (specific activity/org), then 65 pay periods from current are online for review. Offline Refers to information beyond 26/65 pay periods. This information is retrieved from a separate database. 4/10/2015 Integrity - Service - Innovation 3

4 Master Pay History PPE 8/24/13 Adjustment/ Allowance Code 4/10/2015 Integrity - Service - Innovation 4

5 Master Pay History PPE 8/24/13 Adjustment Date Effective Reason Indicator 4/10/2015 Integrity - Service - Innovation 5

6 Master Pay History PPE 8/24/13 4/10/2015 Integrity - Service - Innovation 6

7 Earning Type Codes Calculating Pay Gross Pay (AA) All combined earnings (Regular Pay + Entitlements /Awards) Net Pay (AB) Combined earnings less all deductions (Taxes, benefits, TSP, etc.) Earnings Subject to Federal Tax (VC) All earnings less dental, vision, FSA, HSA, FEHB, and TSP (if applicable). Earnings Subject to State Tax (VD) All earnings less dental, vision, FEHB, and TSP (if applicable). Earnings Subject to Local Tax (VE) All earnings less dental, vision, FEHB, and TSP (if applicable). Earnings subject to Medicare (VF) All earnings less dental, vision, and FEHB 4/10/2015 Integrity - Service - Innovation 7

8 Earning Type Codes Calculating Pay Federal Tax (WD) Calculated by tables established by IRS Publication 15 State and Local Tax (WE/WF) Calculated by tables established by state taxing authorities Earnings Subject to OASDI (VI) All earnings less Dental, Vision, FEHB, FSA, HSA Cannot exceed $117,000 for the 2014 tax year OASDI (WM) Earnings Subject to OASDI multiplied by 6.2%). Medicare (WB) Earnings Subject to Medicare multiplied by 1.45% (VF x 1.45% = WB) Any amount over $200,000 is taxed at additional 0.9% (total 2.35%) 4/10/2015 Integrity - Service - Innovation 8

9 Debt Creation What causes a debt to create? Retroactive Personnel actions changing employee information such as pay, entitlements, awards, benefits, etc. Retroactive Time and Attendance changes, and advanced leave upon separation. Debt Collection Most debts are held within the DCPS Debt Module PRO collect on debts either by payroll deduction or check/money order. 4/10/2015 Integrity - Service - Innovation 9

10 Debt Case 4/10/2015 Integrity - Service - Innovation 10

11 Debt Case Accounting Information (F10) 4/10/2015 Integrity - Service - Innovation 11

12 Master Pay History 09/07/13 4/10/2015 Integrity - Service - Innovation 12

13 Master Pay History 09/07/13 Debt Created in PPE 09/07/13 for PPE DATE 08/24/13 4/10/2015 Integrity - Service - Innovation 13

14 Master Pay History 09/07/13 Total /10/2015 Integrity - Service - Innovation 14

15 Master Pay History 09/07/13 This amount sent to Debt Module for collection This amount was collected (Offset) 4/10/2015 Integrity - Service - Innovation 15

16 Master Pay History 09/07/13 4/10/2015 Integrity - Service - Innovation 16

17 Master Pay History 09/07/13 4/10/2015 Integrity - Service - Innovation 17

18 Debt Case 4/10/2015 Integrity - Service - Innovation 18

19 Debt Case Payment History Inquiry (F12) Amount collected in prior year 4/10/2015 Integrity - Service - Innovation 19

20 Debt Case 4/10/2015 Integrity - Service - Innovation 20

21 Debt Case Payment History Inquiry (F12) Amount collected in current year 4/10/2015 Integrity - Service - Innovation 21

22 Master Time History PPE 08/24/13 System Generated Indicator Date of Adjustments 4/10/2015 Integrity - Service - Innovation 22

23 Master Leave History PPE 08/24/13 4/10/2015 Integrity - Service - Innovation 23

24 Debt Audit Examination of employee records To check accuracy To verify accounts To determine if adjustments or corrections are needed Employee s payroll record to date results from timecard entries and personnel changes via SF-50 s. PRO can verify information that interfaced to DCPS, not the validity of the timecard/personnel entries. Debt audit provides an accounting of what has taken place on the employee s payroll record so that the Agency can determine validity of payments and deductions. Most Debt audits are conducted for offline pay periods. Agency does not have access to offline pay periods 4/10/2015 Integrity - Service - Innovation 24

25 Offline Debt Audit Step 1 Locate any SF50 s, invalid reports, or supporting documentation Step 2 Determine what the employee was paid prior to adjustments Step 3 Determine the authorized amount of pay the employee should have been entitled to. Step 4 Determine the difference the employee owes, and Manually create a debt within the Debt Module. 4/10/2015 Integrity - Service - Innovation 25

26 Offline Debt Audit Per HRO, total salary S/B $40, /10/2015 Integrity - Service - Innovation 26

27 Offline Debt Audit 4/10/2015 Integrity - Service - Innovation 27

28 Offline Debt Audit 4/10/2015 Integrity - Service - Innovation 28

29 Offline Debt Audit No Retroactive Adjustments for PPE 7/16/11 or Prior 4/10/2015 Integrity - Service - Innovation 29

30 Offline Debt Audit 4/10/2015 Integrity - Service - Innovation 30

31 Offline Debt Audit 4/10/2015 Integrity - Service - Innovation 31

32 Offline Debt Audit 4/10/2015 Integrity - Service - Innovation 32

33 FEHB Audit/Worksheet FEHB Audit DCPS pay codes associated with FEHB Example of retroactive FEHB change How the LES is impacted when a change occurs How the LES is impacted when a debt is created How to create an audit

34 FEHB Debts Why FEHB debts generate Change in election retroactively to a higher plan Erroneous refunds Employee in LWOP status Part-Time Career Act eligibility Pay Codes for FEHB deductions WG = FEHB Premium Deduction XO = Debt owed to the Carrier JO = Debt owed to the Agency UH = Employer Contribution UO = Employer Contribution-Prepaid FEHB Premium NOTE: Negative deductions are credits to the employee/employer 4/10/2015 Integrity - Service - Innovation 34

35 Master Employee Record Deductions (Before) Utilize MER to validate the FEHB coverage elected, gather the dates and rates for each time period covered. If the MER is not accurate a correction needs to be processed. 4/10/2015 Integrity - Service - Innovation 35

36 Master Employee Record Deductions (Before) Deduction Code and Identification Effective Date of Active FEHB Enrollment 4/10/2015 Integrity - Service - Innovation 36

37 Master Employee Record Deductions (Before) Employer s FEHB contribution. Employee s FEHB contribution. 4/10/2015 Integrity - Service - Innovation 37

38 Master Employee Record Deductions (Before) FEHB enrollment code R reflects deductions are withheld from pre-tax monies. 4/10/2015 Integrity - Service - Innovation 38

39 Master Employee Record Deductions (Before) Date end of FEHB Enrollment 4/10/2015 Integrity - Service - Innovation 39

40 Master Employee Record Deductions (Before) The Date indicates this is the Current/Active FEHB Enrollment Plan 4/10/2015 Integrity - Service - Innovation 40

41 Add/Change/Delete Report (P6609R01) Report reflects Personnel (P) changed PCA Indicator from N to Y. (NOAC 781 Work Schedule change) 4/10/2015 Integrity - Service - Innovation 41

42 Master Pay History Employee has erroneous premiums deducted at the full time rate. 4/10/2015 Integrity - Service - Innovation 42

43 Master Pay History Future date reflects the Enrollment change. Retroactive adjustments reflect H under Reason Indicator for History 4/10/2015 Integrity - Service - Innovation 43

44 Master Pay History RSN IDC R identifies monies that need to be collected from the employee and the Adjustment Date reflects the retroactive pay period. Notice: UH has no RSN IDC 4/10/2015 Integrity - Service - Innovation 44

45 Master Employee Record Deductions (After) Deductions menu now reflects the XO debt (manually entered by PRO) 4/10/2015 Integrity - Service - Innovation 45

46 Master Employee Record Deductions (After) Total deduction amount withheld to date. Amount reflects biweekly amount to be deducted. 4/10/2015 Integrity - Service - Innovation 46

47 Master Employee Record Deductions (After) Reflects total amount of debt (Paid in full) 4/10/2015 Integrity - Service - Innovation 47

48 Part-time Career Appointment (PCA) Employees working 16 to 32 hours a week or 32 to 64 hours biweekly are entitled to a partial Government contribution in proportion to the number of hours scheduled to work in a pay period. To obtain the Percentage Factor amount of the Government contribution (UH) Divide the number of hours the PCA employee is scheduled to work during the pay period by the number of hours worked by a full-time employee serving in the same or comparable position (normally 80 hours per biweekly pay period). 4/10/2015 Integrity - Service - Innovation 48

49 Part-time Career Appointment (PCA) To obtain the Government Contribution amount (UH) for the PCA Employee The Percentage Factor is multiplied by the Government contribution amount made for full-time employees enrolled in that plan To obtain the PCA Employee s Contribution The Government contribution is deducted from the Total Premium (Government share + Employee share) Remaining amount is withheld from Employee s pay. 4/10/2015 Integrity - Service - Innovation 49

50 Part-time Career Appointment Hours worked on a regular biweekly schedule Factor Hours worked on a regular biweekly schedule Factor <32 or > /10/2015 Integrity - Service - Innovation 50

51 Part-time Career Appointment - Calculations 2013 FEHB PT Calculation: Scheduled Hours: 40/Biweekly (40/80 =.5000) (Government Contribution) X.5000 = (total premium WG+UH) = FEHB PT Calculation: Scheduled Hours: 40/Biweekly (40/80) = (Government Contribution) X.5000 = (total premium WG+UH) = Government Percentage Factor is /10/2015 Integrity - Service - Innovation 51

52 FEHB Debt Audit Performing an audit utilizing DCPS identifies how the Debt amount was calculated. 4/10/2015 Integrity - Service - Innovation 52

53 Questions QUESTIONS? 4/10/2015 Integrity - Service - Innovation 53