Welcome! to the Year End Processing Guide Review for Online Credit Unions Our Presentation will begin at 11:00 EST.

Transcription

1 Welcome! to the Year End Processing Guide Review for Online Credit Unions Our Presentation will begin at 11:00 EST. Presented by the Client Service / Education Team Host: Penni Starren- Education Coordinator 1

2 Year End Processing Guide Review 2

3 For your convenience, our detailed 2013 Year End Processing guide is available on our website. To access the guide: Reference End Of Year Click link for End of Year Guide 3

4 New pricing for archived tax forms on CD- ROM Updated verbiage on Year End Statements see page 38 for statement preparation Updated program for generating 1099-Q forms New with the upcoming 13.3 Software Release: CU s will be able to perform alternate entity 1098 reporting Page 4 4

5 Verify dividend rate changes Important Assign year-end tasks as soon as possible so deadlines on pages 6 and 7 of this booklet are met. Don t forget to enter Mortgage Insurance Premium data prior to year end!! Deadlines refer to 8 p.m. EST on the deadline day. Ascensus-administered IRA programs Credit Union s must notify Ascensus with instructions. Page 4-5 5

6 No need to call!! CU*Base Alerts will be sent when transmission of data is completed. IRA/HSA balance file verification Set aside time during the first week in January. Don t wait until after year end! We recommend monthly or at least quarterly verifications. In-house edoc server Please review the detailed instructions on page 5 for archival of your tax forms. Page 5 6

7 Remember this checklist is for many teams in your organization! We recommend sharing this timeline with everyone involved in any of these processes. Page 6-7 7

8 Tax form quick reference section Alternate Addresses printed on tax forms/member names come from Master record DBA Names never printed on tax forms Tax form pricing See pricing information in booklet. Blank forms Archival forms on CD pricing in booklet. Page 8-9 8

9 Deadline! Complete CU*Base Tax Instructions Screen Deadline passed 11/8/13 Statement Message Instructions 12/6/2013 Page 10 9

10 Printing Costs - detailed information regarding the printing of substitute 1099-INT information on member statements can be found on the bottom of page 10 Page 10 10

11 Points to remember Remember that IRS regulations prohibit the use of any marketing-related messages on the statements. Either clear all messages or insert generic text ONLY about the substitute 1099-INT. See page 13 for more details. If using a Statement Printer other than The Master's Touch verify they can process substitute 1099-INT forms. Page 11 11

12 Must be marked Important Tax Information Enclosed. The Master's Touch Clients instruction insert and envelope notation will be handled for you. Pricing can be found on Page 9. CU s that use a different statement processor contact Cathy Green at extension 322 for coordination. Page 11 12

13 1099 s are generated by Account Number. Members with two separate memberships using the same SSN will receive a separate 1099 for each membership. Generated for Active Accounts and accounts that were closed accounts during the final statement period. Will be printed for every member even those with $0.00. Page 11 13

14 Substitute 1099 s - applies to substitute 1099 INTs only! (Not 1098 or any other 1099 information) Information must all print on the same page of the statement If the entire form does not fit on the last page of the statement, another page will be generated for that membership. Page11 14

15 You will need to make sure that members understand: They will not receive any forms in the mail. They must view their year-end statement through online banking in order to see the 1099-INT information. See page 14 for details. Page

16 If your credit union converted to CU*Base during 2013, you may NOT use your year-end statements as substitute 1099-INTs. Page 12 16

17 Please refer to the IRS Publication 1179 General Rules and Specifications For Substitute Forms 1096, 1098, 1099, 5498, W2-G and 1042-S. Page 12 17

18 Deadline! Preliminary Alert Message November or December Modify e-statement notification message for December during December Page

19 If your Credit union offers E-Statements Suggested messages and detailed information An Alert Message should also be added to your website. Modify e-statement notification messages before month-end Page

20 This sample PDF was taken from: The Master's Touch uses this same text for the instructions that will be inserted with your statements Page 16 20

21 If your credit union uses The Master's Touch for your statements and has an Audit Run planned Special envelopes must be ordered Contact The Master's Touch no later than 12/ or Insert Due Date is earlier than normal 12/27 Page 20 21

22 Configure your credit union business days Using the standard Federal Holidays or Update/Customize your business days Updates are performed MNCNFD #23 Please do not change the processing days without contacting CU*NorthWest Page 21 22

23 Deadline! Before December 13th Page 22 23

24 Loan Category Configuration! Mortgage and equity loan categories must have the Send 1098 tax form field checked Before changing loan category configurations contact the Client Service Team Page

25 1098 forms are not generated for less than $ Your CU can choose to send a form for amounts under $ operations@cunorthwest.com Exception: Student Loan Categories Do not check the 1098 flag on these categories Student Loan Categories have a Process Type of P which will cause a 1098-E to generate. Page

26 Run the Loan Category Configuration Report MNCNFX # Reporting for Rewritten loans Must report interest & points paid on mortgages totaling greater than $ To combine your YTD Interest Paid you need to update the loan(s) using MNUPDT #2 For Mortgage Points and More see page 28 Page

27 Deadline! If using Substitute 1099-INTs 12/31/13 If not 01/06/14 Page 26 27

28 Print a final copy of the 1099/1098 Tax Information Report after all changes are made - MNRPTF #1 If you make changes after your tax file deadlines - corrected paper forms must be generated by the credit union and sent to the member Updates to the member s tax file are performed using MNUPDT #18 Refer to page 55 to learn more about the tax file Page

29 Page 27 Screen shots detailing the property tax paid field Page 28 - Special Note IRS Regulations for 2013 result in removing PMI premiums from the 1098 forms We have changed the 1098 vendor print file so vendors can choose to print Property Tax Paid Included for The Master's Touch forms. If using other vendors, updated files have been sent, please contact those vendors for details on their plans. Page

30 Deadline! 12/13/2013 Page 31 30

31 Printing reports for this process can be done on MNCNFX # 16 & 17 You will be verifying the flag Report Dividends to IRS Important! If settings are incorrect, an additional fee will be charged for additional runs of your forms! For Credit Union memberships update the Foreign Citizen Flag and Dividend Post Code Page

32 Deadline! Perform before 12/13/2013 Verify the setting of the Create a form 1099-MISC year end flag. Between 1/1/2014 1/6/2014 Verify the amount shown in the Previous year 1099-MISC Page amount field 32

33 Verify the Account Payable vendor records Verify the setting of the Create a form 1099-MISC year end flag. Verify the amount shown in the Previous year 1099-MISC amount Page

34 Deadline! After End-of-Year Processing for 12/31/2013 Perform your monthly verification of member data for share and certificate dividends, loan interest, fee postings and other misc. monthly verifications Refer to the separate Month-End Processing Verification Booklet Page 37 34

35 Making changes to your Savings or Checking rates? Plan to review any changes made the morning after they are scheduled Run the Share Dividend Configuration Report from MNCNFX #17 Rate changes occur during end-of-day processing Page 37 35

36 Deadline! 12/6/13 update your statement message! 12/27/13 inserts delivered to Sage Page 38 36

37 Remember that ALL member will receive a statement regardless of activity! As a result, your total page count for statements will be higher at year-end 1099-INT wording changed from Contributions and Distributions to Deposits and Withdrawals This does include dividend deposits Page

38 Important! Review your Beginning of Year Tax File reports on January 2 Reports are generated on January 1 and archived in CU*SPY under End of Month category Page

39 If your credit union is Ascensus- Administered and has also made arrangements for Ascensus to provide duplicate Fair Market Value to your members, CU*NorthWest will send this file after January 6, 2014 If your CU is self-administered, the Fair Market Value will be reported on your Y/E members statements Page 42 39

40 If your member has an existing IRA or HSA at end of this year, CU*NorthWest will automatically create the 2014 balance file and set limits as published by the IRS If you have members with special limits, you can maintain them anytime during January New limits for HSA s for 2014 Manual adjustments for special circumstances can be done after Year-end. Page 43 40

41 If your CU wishes to perform this process, steps are detailed on pages If your CU would like Xtend to close your books for you, contact SRS Bookkeeping Services at ext. 277 Page

42 Deadline! 1099 Distributions 1/6/ Contributions 4/15 4/18 Page

43 Verification should already be taking place Monthly or Quarterly Verify using reports generated in MNRPTF #9 Update records: In MNUPDT #16 Update IRA/HSA Trans Post Codes Or #17 Update IRA Balance Information And #19 Update IRA Beneficiary Info, > F15 Distributions. Page

44 Please review this section as some information will need manual input. Run another report for your records after all updates Special note to Credit Unions Converted During 2013 IRA Balance File is what is reported for members Page

45 Deadline! Prior to Printing1/6/2014 Prior to reporting 02/7/2014 Page

46 Your credit union is responsible for reviewing the accuracy of the data that will be used to produce forms and report to the IRS. Print the 1099/1098 Tax Info Reports from MNRPTF #1 & #2 Page

47 Deadline! 1099-R/1099-SA reported after 1/6/ /5498-SA final changes between 4/15 4/18 All 5498 reporting to IRS by 6/2/2014 Page

48 1099-R and 1099-SA Instructions are on page 57 If your CU s IRA or HSA programs are administered by Ascensus, you can choose to have CU*NorthWest report the 1099-R distribution data 1099-Q information for **(Coverdell Education IRA s cannot be submitted to Ascensus via a file!) Run the 1099/1098 Tax Information Report using MNRPTF #1 Page 58 48

49 5498/5498-SA page 58 Run the IRA Govt./ Report / 5498 MNRPTF #7 Updates are performed MNUPDT #16 and #17 Final adjustments for IRA and HSA Balance Files must be done before 04/18/2014 Page 59 49

50 Deadline! 5498/5498-SA final changes between 4/15 4/18 All 5498 reporting to IRS by 6/2/2014 Page 60 50

51 Verify IRA contributions using MNRPTF #7 Updates are performed using MNUPDT # 16 and #17 Remember members have until April 15 th to make contributions for 2013! Final adjustments to the IRA and HSA Balance file must be done before April 18 th, 2014 Page 60 51

52 Questions? 2013 Year-End Processing Guide for Online Credit Unions Thank you for attending our Year-End Guide Review! Presented by: Client Service / Education 52