Calendar Year End USPS Meeting 12/07/ /12/2017

Transcription

1 Calendar Year End USPS Meeting 12/07/ /12/2017 1

2 2 Announcements Our Fiscal Team: Julia Rozsnyai Krystole Headd Matthew Gregory Patience Moody Rush

3 New This Year Principal Years of Experience needs to be manually entered in for any employee that is a Principal. After this year and the Principal Years of Experience are added MASCHG/MASINC can be used to increment Principal Years of Experience. 3

4 Employer Sponsored Health Care The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. This is informational purposes only. If any employee is paying for their insurance out of pocket, this will need to be manually added to the Emplr Hth field on the employee s 001 Deduction record. This total includes both employee and employer contributions. If the employee is paid half a year out of pocket and the other half through payroll, these two amounts will need to be added together and reported on field Emplr Hth. If the district only tracks the employee portion of health care costs in the USPS system, the district will need to create a spreadsheet with the employee YTD costs for health insurance and the Board YTD costs for Employee Health Insurance and then total these two amounts. Then using USPLOAD, this figure will need to be loaded into the Emplr Hth field on the 001 Federal deduction record. 4

5 Employer Sponsored Health Care Cost on W2 Must report the cost of employer-sponsored Health Coverage in Box 12 using Code DD if the district filed 250 or more W2 s for the preceding calendar year Life, Dental and Vision are not required to be included in the total if they are separate plans and not included as part of the medical plan The contribution amount by Employee and Employer for Health Saving Account (HSA) is NOT to be included as employer-sponsored health coverage. This is reported in Box 12 using (Code W). 5

6 Employer Sponsored Health Care Cost on W2 The flag Include as employer-sponsored health coverage?: on the REG and ANN deduction screens in DEDNAM is used for calculating the Employer Sponsored Health Care Cost: If answered Y the YTD deduction totals will be included in the total moved to the employees W2 6

7 Employer Sponsored Health Care Cost on W2 7

8 Employer Sponsored Health Care Cost on W2 The Emplr Hth: field on the 001 Federal Deduction record will allow a specific value to be reported in Box 12 Code DD. This will override any automatic totaling done by W2PROC based on the DEDNAM records 8

9 Employer Sponsored Health Care Cost on W2 9

10 Employer Sponsored Health Care Cost on W2 When processed, W2PROC will total the employee and board contribution amounts from all deductions flagged as applicable in DEDNAM If there is a value in the Emplr Hth field on the federal DEDSCN field, this value will be used The total will be copied to Box 12 Code DD The submission files created by W2PROC will also contain the total in the appropriate fields. 10

11 Employer Sponsored Health Care Cost on W2 If district only tracks Employee portion in USPS - Spreadsheet needs to be created containing total of the employee and employer contributions for Employer Sponsored Health Care 11

12 Employer Sponsored Health Care Cost on W2 USPLOAD/DEDSCN can be used to load data into the employer sponsored health coverage field on the federal DEDSCN record EMPLR_HEALTH_COV Must be numeric 12

13 Employer Sponsored Health Care Cost Note-If you are not currently processing the board portion of paid medical insurance through USPS you can track Employer Sponsored Health Care portion through USPS- -If not wanting to use BRDDIS, leave OBJ code fields in DEDNAM record blank. 13

14 CYE Information Review Connect Fiscal Website All CYE Meeting supporting documentation located: W2 Submission Form Indicates District action needed 14

15 Life Insurance Include NC1 pay types for employees with life insurance over $50,000 before last pay in December Otherwise, manual updates to correct W2 are needed and the Board may need to pay Employee s share of Medicare 15

16 * Important to review your USPSDAT/DEDNAM records and setup. Have you set up new DEDNAM records this year? What needs to be updated from last year? 16

17 Pre W2 Processing On CITY Tax DEDNAM records: Verify Tax Entity Code for any City, RITA and CCA Verify W2 Abbreviation Field = City name REQUIRED 17

18 Pre W2 Processing On Ohio School District Income Tax DEDNAM records: W2 Abbreviation Field OSDI 4 digit code + 2 letters of school district Verify OSDI Code Field is correct OSDI code should also be on OSDI Code Field on BIOSCN 18

19 Pre W2 Processing Review Tax Board Amounts Field on City deductions in DEDNAM for Medicare Pickup handling 19

20 Pre W2 Processing For all annuities in DEDNAM: Verify Annuity Type Field Retirement records of 590/SERS and 591/STRS should be coded as an Annuity Type B 401 (a) If you are unsure of the Annuity Type, contact the annuity company directly 20

21 Pre W2 Processing *It is also important to review your USPSCN/DEDSCN records and setup* Verify City Tax DEDSCN s Employ/Residence field Is this city tax record required because of the employee s place of: C = Employment R = Residence If employee is both mark as C 21

22 Pre W2 Processing Special Payments modifications Manual changes made to 001 Federal Tax record for W2 reporting purposes (Box 14) Taxable Fringe Benefits (not included in payroll) Non-cash benefits items of $ value not given through payroll NC1 (Insurance) payments not included in payroll Third Party Sick Pay Vehicle Lease Moving Expenses 22

23 Pre W2 Processing Fringe benefit amounts Contact legal advisor with questions Enter taxable amount in fringe benefit field on the 001 Federal tax record. 23

24 Pre W2 Processing Dependent Care Payments If not using the DPCARE deduction type for this payment, manually enter dependent care amounts into the Dependent Care field on the 001 Federal Tax DEDSCN for that employee 24

25 Pre W2 Processing Pension Flag on 001 Federal Tax DEDSCN This field allows users to determine if the pension plan box on the W2 form should be checked Severance Payments only amount on W2, flag should be N Students not contributing to SERS, flag should be N Board members should be N if contribute to FICA 25

26 Are we done yet??? 26

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28 Month End Procedures Make sure all deductions withheld have been remitted/paid: Run PAYDED non-zero deduction report Verify all deductions withheld have been paid SERS Retirement: Review employees days and weeks Verify NEW HIRE s have all been reported SERSHIRE.SEQ 28

29 Month End Procedures Close SERS: Run SERSREG again and answer YES to create the tape file to clear totals and create the tape submission file for December Saying YES to create the tape CLOSES the MONTH for any further payroll processing. Make sure you are ready to close the month and the year!!!! Send an to Connect notifying us that you have created SERS tape 29

30 Month End Procedures STRS Retirement Normal procedure for STRSREG STRSMONTH: Clear 450 MTD fields Balance the payroll account Run CHKSTA or PAYREC to reconcile checks Run your necessary month end reports BENACC, etc. 30

31 Quarter End Procedures Generate the QRTRPT, saying Y to individuals and choosing N Demand Report option Balance Gross amounts to Gross Payroll checks Balance Deduction amounts to checks written Make sure to balance Electronic Transfers and Board Share amounts 31

32 Quarter End Procedures Generate ODJFSRPT for wages and weeks first without creating submission tape Verify weeks look for 0 weeks Balance wages to QRTRPT, look for 0.00 wages Once verified as accurate, Say Y to Create the Submission Tape SEND to Connect (fiscal-support@ohconnect.org) upon completion 32

33 Year End Procedures 33

34 Year End Procedures W2 BALANCING: Run W2PROC Answer No to create tape file Will Prompt for Kind of Employer S (State and Local Governmental Employer) *This could be a Y for a Community School District Do you want Box 14 to print Fringe Benefits if there are any? (Y/N <N>): _ 34

35 Year End Procedures W2PROC (cont.) - Prompts for up to 6 deduction codes to print in Box 14 Only 3 will print In the order they are entered into W2PROC. Leased vehicle amounts will always appear 35

36 Year End Procedures PRINT W2ERR.TXT REPORT Fatal errors MUST BE CORRECTED Special Payments may affect balancing Medicare Pick up Taxable Third Party sick pay Leased vehicles (other Fringe benefits) Dependent care over $5,000 limit 36

37 Year End Procedures W2REPT gross and tax amounts should balance to: 941 totals ERNREG (Jan-Dec) less voided checks QRTRPT - YTD column * If errors are discovered, check employees that had exceptions processed during the quarter 37

38 Year End Procedures Answer Y to create tape when you are ABSOLUTELY sure you are balanced and ready to process your W2 s. W2PROC updated last year to prompt for: (highly recommended) Employer Contact Name Employer Contact Phone Number Employer Contact Phone extension Employer Contact Fax Number Employer Contact Address 38

39 Year End Procedures Send an to letting us know that you have completed your W2 tape. Complete the W2 Submission Form Include the total TAXABLE Gross and the record count of the W2 s Indicate if Connect will be electronically filing RITA or CCA for the district Indicate if Connect will be electronically filing Bedford, Lakewood or Lorain City Taxes If you are using KIOSK, do you want SSNs included on the W2s 39

40 Year End Procedures W2 Employee Distribution: Connect will print employee s W2s to be distributed by the district W2 Employer Distribution: District will receive CD with Employer copy of W2 s W2 Employee and Employer copies On PayrollCD and on CD provided by Connect to districts Kiosk Districts W2 s will be loaded in to the Kiosk with SSN s If a district wants the W2 s loaded in to Kiosk WITHOUT SSN s please notify Connect 40

41 Year End Procedures State W2 Processing IT- 3 form Transmittal for State W2 information Complete and send to Connect Connect sends with W2 file Form available at 41

42 Year End Procedures LOCAL TAX REPORTING DISTRICT is responsible for providing the W2 information to your localities that do not require electronic filing Electronic Reporting RITA & CCA Amherst, Bedford, Brunswick, Lakewood, and Lorain Send completed reconciliation forms to Connect 42

43 Year End Procedures OPTIONAL REPORTS YTDRPT Report UNION Report WORKCOMP Report SRTCMP Report Generate desired reports (optional) EMPMST, ERNSUM, ERNREG, QRTRPT EREPORT to yourself or EREPORTO to yourself and others if needed 43

44 Year End Procedures Run PAYCOPY EAST CY17 files will be copied to FISCAL_SELECT or HISTORY WEST Calendar CD routine will run Creates calendar year payroll reports on web Send an when PAYCOPY routine completes Do Not PROCEED! 44

45 Year End Procedures You will receive an automated confirmation that the PAYCOPY procedure completed (below is an example of the ): At this point, Connect Staff still needs to verify that the District is properly backed up. 45

46 Year End Procedures Once you have received confirmation from an Connect staff member letting you know you have a successful backup. Close out the quarter using option Y in QRTRPT Connect recommends running it again, using DEMAND OPTION to verify YTD and QTD totals are zero 46

47 RECONCILE EVERYTHING Say Y to SERS tape ONLY when you are SURE Preparing for 2011 REMINDERS SEND IT-3 to Connect 47

48 Preparing for 2018 Enter any changes in tax withholding rates effective January 1, 2018 (by using CHGDED or spreadsheet upload to mass change) City Rates OSDI Rates School%20Districts%20with%20an%20Income%20Tax.doc?ver= Use Tax Finder oldistrict.aspx 48

49 Important Municipal Income Tax Notice Withholding remittance and payment must be received no later that the 15 th of the month following the reporting period Employers must remit monthly if withholding in the previous calendar year exceeded $2,399 OR if the monthly amount of withholding exceeded $200 in the previous calendar quarter 49

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51 What are some errors I might come across when running W2PROC? 51

52 52 CALCULATED ANNUITY AMOUNT EXCEEDS THE TOTAL ANNUITIES The calculated annuity value is larger than the amounts showing on the annuity (generally in the 500 through 599 deduction code range) records. The calculated amount is determined by subtracting the taxable gross from the total gross. Manual changes may have been made to the deduction screen record. It is possible the total or taxable gross was changed incorrectly due to an error adjustment, thus causing the calculated annuity amount to be too high. Warning NEGATIVE ANNUITY ON FILE FOR THIS EMPLOYEE. ASSUMING ZERO. A total negative annuity indicates a check was voided from a prior calendar year in the current calendar year. Run the CHKSTS program to attempt to isolate the problem. If this is the case, you will need to zero the negative amount of the annuity and file a W2- C form for the previous calendar year. Warning.

53 53 POSSIBLE ERROR IN OSDI GROSS OR TAX. OSDI taxable wages with no OSDI tax or OSDI tax with no taxable wages have been detected. Manual changes may have been made to the deduction screen record. Run the AUDRPT program and verify. If the employee has not earned enough wages to have any tax withheld, this message can be ignored. Informational error. MEDICARE AMOUNT DOES NOT EQUAL 1.45% OF MEDICARE GROSS. FICA/OASDI AMOUNT DOES NOT EQUAL 6.2% OF FICA/OASDI GROSS. These two messages are related. W2PROC calculates the amount of Medicare and FICA tax by multiplying the taxable gross found on the deduction records by the correct withholding percentage. If the calculated tax amount differs from the tax amount found on the 692/693 records by more than $.30, the messages are issued. These errors will most likely cause the IRS/SSA to reject the tape file therefore it is necessary to research and resolve the problem. Fatal error.

54 Please refer to your handout for more common errors and warnings 54

55 55 Questions? Around the Room

56 For customer service and support, please contact us via or by phone at (216) x

57 For your planning, Connect offices will be closed 12/22-12/26/17 and 1/1/17-1/2/18 57

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60 THANK YOU! Merry Christmas and Happy New Year! Julia, Krystole, Matthew, Patience 60