Payroll User Group. November 28, 2018

Transcription

1 Payroll User Group November 28, 2018

2 Welcome Welcome Kevin McHugh Chief Payroll Officer Kevin McHugh State Payroll Director, CTR CTR Payroll User Group

3 This Week s Alert! Comptroller of the Commonwealth Thomas G. Shack III, Comptroller November 26, Please share this warning with appropriate staff within your agency. Warning: Stay Alert for Aggressive and Evolving Phishing and Spoofing Activity A reminder to use caution upon receipt of unsolicited or unexpected s from known state employees and officials. Phishing and Spoofing efforts against the Commonwealth are increasingly aggressive and rapidly evolving, using the names of specific Commonwealth employees and terminology that would attract the attention of state employees in the fiscal and payroll areas. Recent Phishing and Spoofing attempts appear to come from a legitimate known Commonwealth sender and have included attachments claiming to be Invoices or employee award Nomination Forms from the Office of the Comptroller. Other recent attempts have asked for Direct Deposit changes or Usernames and Passwords. The Office of the Comptroller does not send invoices, nomination forms, or other such documentation via as attachments. Agencies within the Commonwealth will never send a solicited or unsolicited asking for your account details, password, or other sensitive data. As fraud schemes evolve and become more specific and targeted, it is critical that all employees remain vigilant and review s carefully. If you receive any suspicious, unsolicited, or unusual ; please do not open it and contact your agency CIO (Chief Information Officer), DSO (Department Security Officer), or IT support immediately. ### The Office of the Comptroller of the Commonwealth Visit our Website:

4 Welcome Cyber Awareness Tryntje Rainbow Bumgardner Deputy Chief Payroll Officer CTR Payroll User Group Kevin McHugh State Payroll Director, CTR

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6 Security Threats Security threats to personal information are everywhere on the internet Always use caution online Remember, the Commonwealth will never send unsolicited s asking you to provide personal information or direct you to click on a link to validate personal information online Immediately report any suspicious s to your local IT staff

7 A generic greeting e.g., Dear Customer A sense of urgency immediate action required An implied threat account disabled A forged address An unusual/unexpected website link A request for your login and password or other personal information What to watch for

8 Good feeling gone

9 What to do Verbally confirm all communication related to personal, payroll or direct deposit changes Do not make changes unless verified Direct employees to use self-service

10 National Tax Security Awareness Week The third annual National Tax Security is December 3-7 The IRS is offering a free webinar Understanding the Dark Web twitter handle to keep the public aware of emerging threats throughout the 2019 tax filing season

11 Watch for Questions There will be a test! Anti-Phishing Video

12 Thank You!!!

13 SMART Plan Agenda Presented by Marianne Cole, Retirement Plan Advisor 2019 Contribution Limits PEC Enrollment (online enroll) 2018 Year in Review Questions 13

14 2019 New Contribution Limits The limit on elective deferrals has increased to $19,000. The age 50 catch-up amount for participants aged 50 remains at $6,000. The new limit for participants utilizing the Special Catch-up program is $38,

15 PEC (Online) Enrollment 15

16 PEC (Online) Enrollment More efficient, paperless Still available: Enroll through Active Choice (Quick Enroll) Enroll with traditional Enroll form 16

17 2018 Year in Review Active Choice Enrollment Over 1,200 State employees enrolled (through 10/31) 5,641 Total Enrollments 278,000 participants; over $8.98 billion Data through 11/16/

18 Questions? Thank you 18

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20 Quick Facts

21 Credit Union for State Employees Over 12,000 State Employees are Members Over $112,000,000 on Deposit from State Employees Over $98,000,000 in Loan Balances Exclusive Offers for State Employees Only Once a Member, Always a Member Exclusive Web Page on Metro Website -

22 Metrocu.org/state Enrollment/Specials

23 Fun Facts* 82% of current credit union members have recommended their institution to others. With more than 5000 credit unions across the globe and access to tens of thousands of ATM, credit unions are increasingly convenient on a national scale. President Roosevelt signed the Federal Credit Union Act in 1934 to promote thriftiness and prevent usury during the Great Depression. Credit unions are not-for-profit- institutions and are owned by the people they serve. *The Neighborhood Developers-November 15, 2018

24 Quick Reminders

25 REFER A FRIEND

26 0% Interest Loan Up to $25,000 with terms up to 7 years.

27 Metro Insurance Advisors

28 Only for State Employees

29 Free Lunch and Learns

30 Download and Print

31 MetroCU.org

32 Happy Holidays! Mary Holland 877-MY-METRO x 3504

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34 Welcome Year End Processing ACA and W-2 Distribution Kevin McHugh Statewide Payroll Team CTR Payroll User Group Kevin McHugh State Payroll Director, CTR

35 W-2/W-2c Consent Employees can review the disclosure and consent to suppress their paper W-2/W- 2c forms. Employees can also choose to remove their consent if they wish to receive a paper W-2. Path to Self-Service Page: Self Service > Payroll and Compensation > W-2/W-2c Consent Only employees can consent to receive an electronic copy of their W-2 Core users do not have access to update this field

36 Benefits of Suppression Access your W-2 and 1095-C, and correction forms online No possibility an employee's forms getting lost, stolen, delayed or misplaced Secure access, including the employee's ID number and personally chosen password, protect all information within HR/CMS. The format of the online W-2 for an employee to quickly and easily cut and paste the included information into most tax preparation software. The 1095-C should be kept with tax records, format allows to download in PDF form For more information please visit the Comptroller Website

37 W-2/W-2C and ACA 1095-C forms Consent to Suppress WE CAN DO BETTER New this year No suppression, no access to W-2 until January 31, or until it arrives in the mail that includes you. All employees have access to view and print their W-2 and 1095-C forms Encourage your employees to suppress their paper W-2 and 1095-C forms and direct them to the following link: Path for Employee Self-Service Page in HR/CMS: Self Service > Payroll and Compensation > W-2/W-2c Consent Self Service > Benefits > 1095-C Consent

38 W-2 and 1095-C Distribution Paper Delivery: Update Home Address by January 6 Mailed to employee s Home address Postmarked by January 31 st Avoid using P.O. Box as Home Address but is allowable --Double Dash, Double Space not allowed Returns: Undeliverable Forms returned to CTR Reprints: Use HR/CMS Self-Service (All Employees have access regardless of Consent status) Contact Department for W-2 for years prior to 2012

39 Preparation for Tax Year End The Last Pay Period for 2018 W-2 Reporting is 12/22/2018. CAR and other non-cash taxable benefits must be entered within this final pay period. Review HMTAX010 Report for potential Medicare Tax Errors

40 Tax Year End Receipt vouchers for pay period ending 11/24/18 or earlier should submitted to RET by 12/7/2018 Receipt vouchers for pay period ending 12/8/18 must be submitted by 12/18/18. Receipt vouchers for pay period ending 12/22/18 must be submitted by 12/28/18.

41 Deferred Compensation Refunds All Deferrals-in-Error or over contributions need to be refunded to the employee (cash in hand) prior to 12/31 in order to have the W-2 updated correctly. Refund requests go to TRE c/o Jane Waldron.

42 Fringe Benefits Includes an employee s use of an employerprovided vehicle for business purposes which is also used for personal commuting. Fringe benefits must be added to an employee's federal and state taxable gross income and are subject to federal and state income tax withholding and Medicare taxes.

43 Employer Provided Car Benefit Non-cash payment included in Paycheck Departments should be entering all CAR imputed income via HR/CMS Period is November 1 to October 31 Code is CAR (amounts) $1.50 per commute or Amount Submitted by Employee on OSD Form See OSD Memo posted on CTR Homepage

44 View W-2/W-2c Forms -- Self-Service 2018 forms will be available Mid January and employees will have access to previous W-2s by using the View a Different Tax Year link. W-2s prior to 2012 will not be available using self-service Employees who consent to suppression will receive a system generated when a new W-2 form is available A link to filing instructions is available An accessible version of the unofficial W-2 data will continue to be available in PayInfo at the end of January

45 W-2 Questions Employee W-2 Questions should be referred to Employee s Payroll Office. Comptroller s Payroll Team will help with any questions submitted by Department s Payroll Office.

46 W-2 Form Corrections Department submits and copy Request for Correction Form of original W-2 along with memo explaining reason for correction. CTR will process in HR/CMS. Employee will get a notification when available online in HR/CMS Self-Service

47 ACA Employee Reporting To be Mailed By 01/31/19 Employer Shared Responsibility (ESR) Provide an offer of Insurance to ACA Full Time Employees IRS Form 1095-C for ACA Full Time Employee for any month of the year Minimal Essential Coverage (MEC) GIC Plans provide MEC Coverage to those whom are eligible Employee and Beneficiaries coverage IRS Form 1095-B Reporting entities New this year GIC to do all Self Insured Plans

48 Who will Get 1095-C Employees who work 30 or more hours on average a week or 130 or more a month during 2017 Once measured, ACA eligibility status will remain until next measurement period or termination If employee does not meet the definition of ACA full-time during the year, they will NOT get a form

49 What will be on the form? Box 14 Did the employee have an offer of insurance Box 15 What is the lowest cost employee self coverage Box 16 Is Box 15 coverage affordable based on Safe Harbors There will be NO information on coverage for employee and dependents in Part 3 Instead employees and dependents will get a form 1095-B from GIC CTR Payroll User Group

50 Preview of 2019 Tax Changes State Unemployment and EMAC The UI rate for TY2019 is 0.3% (drops from 0.4% to 0.3%) EMAC rate is 0.51% (unchanged) EMAC cap remains $15,000 New rates take effect 1/1/2019 Qualified transportation fringes The amounts that may be excluded from gross income for employer-provided qualified transportation fringe benefits (transportation in a commuter highway vehicle and any transit pass) and qualified parking for 2019 are both $265 per month ($260 in 2018). Health flexible spending arrangements For plan years beginning in 2019, the dollar limitation under IRC 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $2,700 ($2,650 in 2018). Standard deduction The standard deduction amounts for 2019 increase to $24,400 for married couples filing jointly or surviving spouses ($24,000 in 2018), $12,200 for single taxpayers and married taxpayers filing separately ($12,000 in 2018), and $18,350 for heads of household ($18,000 in 2018). Federal tax levies The Tax Cuts and Jobs Act altered the way the amount of wages, salary, or other income exempt from a federal tax levy is calculated. For taxable years beginning in 2019, the dollar amount used to calculate the amount determined under IRC 6334(d)(4)(B) is $4,200 (up from $4,150 in 2018).

51 Questions

52 Commuter Choice Transit and Parking Presented by Jasmine Shamer Benefit Strategies LLC 11/28/ /28/

53 Payroll Processing Reminders When Payroll and/or HR Coordinators receive the notification from Benefit Strategies, with a brand new commuter Transit or Parking enrollment or a change to the current election. Please keep these important factors in mind Payroll deduction changes should never be made without an notification from Benefit Strategies with a completed electronic election form attached. Employees may not and should not be calling or stopping by your office in person asking you verbally or through an to make a change to their TRN/PRK benefit deduction If you receive an enrollment, change, cancellation for the Transit benefit (QTTRAN) please make sure the deduction is started with effective date before the pay period ending the month before payroll is to process the change (example) If the EE is enrolled in the Parking plan only, then make sure to also start the QTPER2 deduction. If the EE is enrolled in both Transit and Parking benefits, then please use QTPER1 code for the admin fee (example) The same goes for the admin fee of $1.50 (QTPER1 or QTPER2). If the EE is enrolled in the Transit plan only, please make sure to also start QTPER1 deduction with the same effective date that you started the QTTRAN deduction 11/28/

54 For the 2019 tax plan year, the monthly pre-tax limit for the Mass Transit benefit will increase to $265, from $260 in 2018 The Mass Parking benefit pre-tax limit will also increase to $265, from $260 in 2018 The State pre-tax deduction will be $135 and Federal will be $130 Benefit Strategies will coordinate and fund the member accounts based on the current 2018PY pre-tax max of $260 for anyone that has an election of that amount or greater which will be used for Jan 2019 expenses and then we will updated all member accounts to be funded correctly based on the new 2019PY pre-tax max of $265 for Feb 2019 expenses (example) 11/28/

55 2019 Plan Year Enrollment for Commuter Benefit The Transit and Parking benefits run month-by-month and roll over year to year, there is no open enrollment Whatever the amount for either and/or both Transit and Parking benefits that your employees have deducted from their paychecks in Dec 2018, it will automatically roll over to Jan 2019 no changes necessary If your employees do not want to participate in the Commuter Benefit for 2019 plan year or they wish to change the amount being deducted from their paycheck, they do have to complete the online Election Change Form here 11/28/

56 Transit and Parking Calendars When making a Transit or Parking change through the online Election Change Form, there are links to the 2019 Change Process Calendars. They are located here please print these calendars for quick reference to important deadlines 2019 Transit Election Change Process Calendar 2019 Parking Election Change Process Calendar 11/28/

57 Transit Election Change Process Calendar for 2019 The deadline to submit the Transit Election Change Forms to Benefit Strategies for the Jan 2019 benefit month is 12/05/2018 by midnight 11/28/

58 Important Fact About Transit 2019 At the bottom of the Transit 2019 Calendar you will notice a very important message 11/28/

59 Parking Election Change Process Calendar 2019 The deadline to submit the Parking Election Change Form to Benefit Strategies for Jan 2019 benefit month is 12/19/ /28/

60 Important Fact About Parking 2019 At the bottom of the Parking 2019 Calendar you will notice a very important message 11/28/

61 HRCMS Payroll Deduction Dates for /28/

62 BLACKOUT DATES for 2019 Plan Year Benefit Strategies will send out 3 Constant Contact blast s to all enrolled members. First will go out on Fri 12/07/18, second (blackout begins) will go out on Fri 12/14/18, and third (blackout ends) will go out on Fri 12/21/18: 2018 Plan Year ends at midnight on Tuesday 12/18/ Plan Year enrollments and rollover balances will be completed Thursday 12/20/18, members will see their 2019 account but with no balances until the blackout is over 2019 Plan Year starts on 12/19/18 BLACKOUT PERIOD = starting at midnight on Fri 12/14/18 to midnight on Thurs 12/20/18, the flex debit cards will not be available nor will the online claims system If members have any available balance left in their 2018PY account, it must be spent, or manual claims submitted before the 12/14/18 blackout starts. Once the cards are activated on Fri 12/21/18, members can begin purchasing their January 2019 passes The Transit deduction taken from the 12/14/18 paycheck will be loaded onto the flex cards on 12/20/18 for the Jan 2019 benefit month, but will not actually be available until Fri 12/21/18 due to the blackout Any balances left in the 2018 account at midnight on 12/18/18 will be rolled over into the new 2019 account. 11/28/

63 Contact Information for Benefit Strategies Your dedicated Account Executive: Jasmine Shamer Jasmine s Direct Line: Fax#: Website: Phone# For Employees: For Employees: Info@benstrat.com 11/28/

64 Welcome Payroll Reminders Kevin McHugh Statewide Payroll Team CTR Payroll User Group Kevin McHugh State Payroll Director, CTR

65 Payroll Reminders Process timely transactions for hires. New hires: Do not hire without valid SSN#. If HR/CMS prompts occur with employee exists then add an Employment Instance using the existing Employee ID. If needed contact CommonHelp for the existing ID. DO NOT create a duplicate Employee ID. Benefit Program Participation: Must be entered or there will be problems with hires Employee Self Service to set up Direct Deposit and Suppress Advise Printing New SSTA Approval Delegation job aids available on following link: Manager, Supervisor: Time Approval Delegation & Delegation Notification

66 Payroll Tuesday Reminders Check validation Reports are generated in Docs Direct for paycheck confirmation. LCM reports to confirm Labor History. Labor History predictive in Warehouse. Best Practice is a helpful resource for payroll analysis. Deduction validation On Payroll Tuesday due to time constraints we cannot determine appropriate action needed if deduction has not been taken. Tickets Tickets will not be addressed after 5pm the Monday before payroll due to time constraints. The proper channel to have an issue addressed is via the Ticket Process. No s will be addresses at any time for payroll issues.

67 W-4 Federal Tax Information Employees can update their W-4 federal tax information online and agencies are responsible for making sure that employee personnel files contain every employee s most recent W-4 tax information. Path to Self-Service Page: Self Service > Payroll and Compensation > W-4 Tax Information A DocDirect report is available for reporting on W-4 tax information.

68 W-4 Identity Verification and Submit Confirmation Verify Identify After hitting submit button on the W-4 Tax Information Page, employees will be prompted to enter their password prior to saving their W-4 changes. Submit Confirmation Employees will be prompted with a submit confirmation message telling them that they need to update their state M-4 withholdings by submitting a written request

69 Re-certification for Exempt Employees Employees who claim exempt status must re-certify their status every year. Employees will receive a system generated reminding them that they have to re-certify their status or they will be reset. The Comptroller s Office will monitor exempt employees to insure that they have valid addresses in HR/CMS.

70 Lock-In Letters If the IRS determines that an employee does not have enough withholding, they will require an increase in the amount of withholding tax by issuing a lock-in letter that specifies the maximum number of withholding allowances permitted for the employee. Core users will continue to be able to lock in employee records preventing employees from increasing their withholdings

71 Agency Notification Point of Contact Automated system messages regarding unreported, unapproved, over/under reported time Should be limited to one or two core users and must define a primary Please send requested changes by to StatewidePayroll@massmail.state.ma.us

72 CY 2018 to Date Retirement Paychecks Retirement Retirement Dollars Deferred Comp DC Amount 1/6/ ,178 80,065 $20,453, ,206 $6,600, /20/ ,390 82,141 $20,547, ,163 $7,095, /3/ ,165 86,772 $20,743, ,443 $6,622, /17/ ,191 87,053 $20,759, ,394 $6,622, /3/ ,219 87,301 $20,982, ,506 $6,631, /17/ ,780 87,052 $20,708, ,411 $6,587, /31/ ,259 87,282 $20,830, ,406 $6,392, /14/ ,776 87,589 $20,997, ,583 $6,780, /28/ ,504 87,767 $21,052, ,542 $6,525, /12/ ,277 87,547 $20,832, ,689 $6,450, /26/ ,342 83,875 $20,598, ,610 $6,554, /9/ ,388 84,243 $20,955, ,941 $6,822, /23/ ,826 87,176 $22,663, ,900 $7,337, /7/ ,504 84,570 $21,002, ,390 $6,535, /21/ ,227 84,583 $21,007, ,804 $7,164, /4/ ,514 84,328 $21,040, ,942 $6,668, /18/ ,283 83,667 $21,344, ,865 $6,770, /1/ ,527 82,871 $20,838, ,751 $6,660, /15/ ,875 87,445 $21,451, ,880 $6,817, /29/ ,035 87,654 $21,319, ,789 $6,487, /13/ ,872 87,726 $21,454, ,864 $6,558, /27/ ,006 87,564 $21,225, ,737 $6,532, /10/ ,839 87,691 $21,406, ,915 $6,368, Totals 2,081,977 1,973,962 $484,214, ,731 $153,587,581.26

73 Thank You!!!

74 Happy Holidays!