Calendar Year End Payroll Procedures

Transcription

1 Calendar Year End Payroll Procedures Pre-Closing Steps Run the W2 Maintenance program W2MAINT/SSAEVS and EVSTRN. Revised November 2017 o The SSAEVS will create a submission file that should be sent to the SSA once a year to verify your employees SSNs and names. Register and submit through SSA BSO at o Transfer return file into Reflection and run EVSTRN to create a printable error report. Correct any errors. Verify information in your Deduction Name (DEDNAM) records. You can do this by paging through the DEDNAM records or by running Deduction Name Report (USPSDAT/DNAMRPT). o Verify the OSDI deduction records. The OSDI Code should be the school district for which you are collecting the tax. The W2 abbreviation field must include this code first plus the school district name/abbreviation. The four digit code is required on the W2. The W2 form will truncate the abbreviation to six characters even though the field in DEDNAM allows 13 characters. Example: 2509REYOSDI would be 2509RE. If using the DNAMRPT select Group Deduction Code H. o Check the City deduction records. Verify W2 abbreviations on city DEDNAM records. The W2 form will truncate the abbreviation to six characters even though the field in DEDNAM allows 12 characters. Verify Entity Code for any city that will be reported on magnetic media. See PowerPoint. Verify that RITA and CCA deductions have valid three digit Rita/CCA Codes, Y/N flag, and RITA/CCA descriptions. See PowerPoint and Helpful Links document on LACA website. Verify that you have vendor numbers on each City record if you wish to run the City Tax Report (USPS_LCL/CITYTAX). The report will page break and subtotal by vendor number. If using the DNAMRPT select Group Deduction Code B.

2 o Verify Health Savings Accounts have an Annuity Type of I. o Verify that all of your Annuity records are coded with the correct annuity type. If using the DNAMRPT select Group Deduction Code D. If you are unsure of the annuity type, contact the annuity company. o Verify that the employer sponsored health care flag on your insurance deductions is marked appropriately. See PowerPoint. Verify the information in your employees Deduction Screen (DEDSCN) records. o Enter amounts in the Emplr Hth field of the 001 federal deduction as needed. See PowerPoint. Insurance contributions the employee paid out of pocket instead of through payroll. Board amounts not tracked in payroll. Include both employee and board share totals for the full year. o Enter the amount of permitted benefits under a qualified small employer health reimbursement arrangement (QSEHRA) in the Hth Reimb field on the 001 federal deduction record as applicable. See PowerPoint. o Verify Employ/Residence Code on all city deductions. See PowerPoint. o Verify the pension flag field on the federal tax record (001) for each employee. See PowerPoint. o Reimbursements of Employee Expenses. See document on LACA website. o Excludable Moving expenses that were reimbursed to an employee or payment that was made directly to a third party for services are to be entered in the 001 federal deduction record. See PowerPoint. o Fringe benefit amounts. See PowerPoint. o If not using the DPCARE deduction type for Dependent Care, enter the amounts in the 001 federal deduction record. See PowerPoint. o Use of Company Vehicle. See PowerPoint. Process any Taxable Third Party Sick Pay. See PowerPoint and document on LACA website. 2

3 Process Non-Taxable Third Party Sick Pay. See PowerPoint and document on LACA website. Process any group life insurance over $50,000 as NC1 pay type per chart. See PowerPoint and document on LACA website. The portion of an annuity identified as life insurance by the annuity company requires manual modification to DEDSCN records. See PowerPoint and document on LACA website. Employees on Active Military duty. See PowerPoint. Verify that any deceased employees are receiving the correct amounts on their W2 and Manual changes may be required. See document on LACA website. Run W2Proc BEFORE the first pay of December has been completed AND again AFTER the first pay of December has been completed. o Each time, balance with ERNREG and QRTRPT, review and correct all warnings and errors. See PowerPoint. Note: If any changes need to be made, see document on LACA website: Specific Effects on W2 Reporting. Complete regular month-end closing. Complete last payroll for December. Print any reports you need to retain as hard copies. Run RETIRE o Run STRSREG First time, answer Create Tape? No and verify the report. If necessary, make adjustments/corrections in USPSCN/ATDSCN. Once this report is correct, answer Create Tape? Yes to create tape files for the last pay of December. Use STRS_SEND to send your STRS tape file. o Run SERSREG First time, answer Create Tape? No Verify SERSERR.TXT and SERSDET.TXT. If necessary, make adjustments/corrections in USPSCN/ATDSCN. Once the reports are correct, answer Create Tape? Yes to create tape file(s) for the last pay of December. Submit the file(s) on the esers website. 3

4 o Run STRSMONTH to clear STRS deduct totals. o Run SERSMONTH to clear SERS deduct totals and create PAYROLLCD reports for BeAR. Balance the payroll account if you have received your statement (if not continue). o Run CHKSTA or PAYREC to reconcile as many outstanding checks as possible. o Run PAYDED with no pay cycles for a Non-zero report to balance to checking account. Complete quarter-end processing. (Do Not Clear Totals on QRTRPT). Balance QRTRPT o Run QRTRPT (option N-No Totals Zeroed). The report shows quarter, fiscal, and annual totals. o In the Totals section of the QRTRPT, the gross and adjusted gross should balance using a manual calculation: Gross Annuities = Adjusted Gross Calculated The adjusted gross calculated should equal the adjusted gross amount from QRTRPT. This should be true for all adjusted gross figures in the Totals section. o Balance the QTD/YTD/FTD gross, taxes, annuities, Medicare, retirement, and Section 125 plans. o Deduction totals on QRTRPT should equal the total of all deduction checks written for the period being balanced. This should be true for all deduction codes. Be sure to verify the electronic transfers of federal and Medicare payments. o Gross amounts on QRTRPT should equal the total of all payroll clearance checks issued during the particular period being balanced. Balance W2REPT o Run W2PROC. Check the W2ERR.TXT report for errors. o Complete W2REPT Reconciliation Worksheet. IRS/SSA will compare the totals of your 941 reports with the total submitted on your W2 file. 4

5 o Balance the deduction totals (taxes and annuities) on the W2REPT.TXT report with the totals from all DEDRPT.TXT reports from the quarter. If you do not have your DEDRPT.TXT deduction totals from each payroll in a spreadsheet being subtotaled, you could run CHKSTS for Sort D (Deduction Code), Print Option A (All check types), and Check Type A (All Types) to balance to W2REPT.TXT instead. o Balance the gross amounts on the W2REPT.TXT report to the PAYRPT.TXT reports for the quarter. NOTE: These amounts may not balance due to the way W2PROC handles certain amounts (e.g. Medicare pickup). o If errors are discovered, check employees that had exception processing during the quarter such as voided checks, error adjustments, or manual changes in USPSCN. The AUDRPT program can be useful in identifying these problems. Balance Deductions o Run PAYDED to verify there are no outstanding deduction amounts. o The total of all board paid amounts (if tracked on the system) should equal the total of all warrant checks to the vendor or deduction company. o Complete and file any required quarter-end submission forms. o For city withholdings, take the taxable gross times the percentage to be sure the tax withheld and submitted are correct. Please note mobile employees could cause discrepancies. Balance ODJFS o Run ODJFSRPT answering NO to Create Submission File and verify report. o Check all totals carefully for accuracy. If necessary, adjustments can be made using USPSCN/ATDSCN. o Once the report is correct, run ODJFSRPT again answering YES to create submission file. o Post a help desk or send an to FISCAL@LACA.ORG once the ODJFS tape has been created. 5

6 Complete W2 processing. Run W2PROC. See document on LACA website: W2PROC Instructions. o You will be prompted for the grand total of all Federal Tax amounts withheld by third party payers. You must enter the grand total from all statements received from third party payers for the correct Federal Tax amount to be included on the W2 tape file. See document on LACA website: Third Party Sick Pay. o Enter the Kind of Employer. S (State and Local Governmental Employer, non 501c) if your district has NOT applied for 501c status Y (State and Local Tax Exempt Employer, 501c) if your district was granted nonprofit status o Enter Up to six (6) additional deduction codes. The first three (3) for each employee will be printed in box 14, Other. o Say NO to create tape. o Print W2ERR.TXT. Refer to document and PowerPoint to fix the errors. o Rerun the W2PROC program. Print and verify the W2REPT.TXT. o After all errors are corrected: Run USPS_LCL/CITYTAX Report in the local menu to assist with your city submissions. You must have a vendor number in each city s DEDNAM record for the report to page break by city. Run W2PROC again. This time answer YES to create the tape and NO for dummy W2 for form alignment. This is for the employee s copy. These W2FORM.DAT files will be used to print the W2s. Print W2BREAK.TXT to show where W2s should be separated for distribution. Run CALENDARCD to create calendar year end reports for Payroll CD. 6

7 Call LACA to: Note: We do not recommend that you close before your last pay date in December Backup your files. Run QRTRPT (option Y) to zero out all data for the quarter and calendar year. Print W2s, transmit W2 information to SSA, and create your W2 CDs for Ohio and cities. Place W2s on Kiosk for employees to access. Place W2s in Bear with district permission. Create Calendar Year 2017 directory for CHGYR Payroll files. Create your Calendar Year 2017 payroll CD. * LACA will call you to begin processing your first January payroll. Post-Closing Enter changes in tax withholding rates effective January 1 o Use CHGDED Complete Ohio Form IT 3 and send to LACA by January 19 Distribute W2s to employees by January 31 o See document: W2 Form Distribution. Distribute applicable Affordable Care Act forms to recipients by January 31 File Affordable Care Act forms with IRS by applicable deadlines. See PowerPoint. Note: All supporting documentation referenced above can be found on the Fiscal Services page of the LACA website, by clicking the link titled LACA Payroll Documentation. 7