ADS Automated Disbursing System

Transcription

1 ADS Automated Disbursing System Defense Finance and Accounting Service INDIANAPOLIS PAYROLL OFFICE August 2015 Integrity - Service - Innovation

2 Topics Special Pays W2c s for Special Pays Check/EFT Returns Replacement Checks - DD Form 2660 Health Savings Account (H.S.A.) W2c s for H.S.A. s 8/24/2015 Integrity - Service - Innovation 2

3 SPECIAL PAYS 8/24/2015 Integrity - Service - Innovation 3

4 Special Pays Request must be submitted on a Remedy ticket Employee must have received less than 90% of base pay Does not include overtime, night differential, etc Cannot request special pay for lump sum leave Only one social security number per ticket Must have reason for special pay Timecard must be in the DCPS system in order to process a Special Pay 8/24/2015 Integrity - Service - Innovation 4

5 Special Pays - CSR CSR must: Indicate number of hours employee should be paid Verify employee has record in DCPS Insure employee is not on T&A invalid report Verify that employee has sufficient leave Donated leave has been input with sufficient balance to cover Time has been input Employee does not have default address Employee has correct bank info in DCPS State reason for the Special Pay 8/24/2015 Integrity - Service - Innovation 5

6 Special Pays - PRO Payroll Office will process special pay remedy tickets within 3 business days. Payment received by customer 3-5 days after certification We will return the ticket if: Employee is on T&A invalid transaction report 6608R01 Retro T&A not in system Reason for special pay not indicated Employee paid more than 90% of base pay Request for other than base pay Firefighters are an exception Debt collection- causing an employee to receive less than 90% of base pay 8/24/2015 Integrity - Service - Innovation 6

7 ADS Voucher for Special Pay In this example, we processed a special pay for a Fee Basis employee, net amount of $ /24/2015 Integrity - Service - Innovation 7

8 PRO Processes AC Action to Clear Special Pay Against the Retroactive Payment 8/24/2015 Integrity - Service - Innovation 8

9 Special Pays Frequent Issues No Social Security Number at top of Remedy ticket Detail field is missing/not completed within Remedy ticket T&A Invalid Report has not been cleared Employee s record is not up to date 8/24/2015 Integrity - Service - Innovation 9

10 Special Pay Template 8/24/2015 Integrity - Service - Innovation 10

11 Total Special Pays for Integrity - Service - Innovation CP1 OMA ZFA ZFR ZKA ZPA ZPV 12 Integrity - Service - Innovation 11

12 Total Dollar Amount for Special Pays $5,000, $4,500, $4,394, $4,000, $3,500, $3,000, $2,500, $2,000, $1,500, $3,062, $2,649, $1,000, $1,052, $796, $500, $0.00 $455, Integrity - Service - Innovation $16, CP1 OMA ZFA ZFR ZKA ZPA ZPV Integrity - Service - Innovation 12

13 W2c for Special Pays A W2C is required on all special pays that are paid out to an employee during the last pay period of the year, and funds are received before 12/31, but are not set to retro until after 1/1 of the next year. ADS technician will process the special pay as normal, basing all amounts on the retroactive calculations. If the Special Pay is the first pay period for this employee, the maximum amount of taxes will be taken out (25% for Federal, 6% for State and Local). No AC will be put in DCPS. Instead, all retro will be offset The W2 is corrected to reflect the subject to wages and deductions that were paid in the special pay. 8/24/2015 Integrity - Service - Innovation 13

14 Questions???? Integrity - Service - Innovation Integrity - Service - Innovation 15

15 CHECK/EFT RETURNS Integrity - Service - Innovation Integrity - Service - Innovation 16

16 Returned Electronic Funds Transfer (EFT) Reasons for Returned EFT: Incorrect Account Information Account Closed Account Frozen Recall/Direct Deposit Intercept Account Holder Deceased 8/24/2015 Integrity - Service - Innovation 16

17 Returned Checks Reasons for Returned Checks: Invalid Address Incorrect Payee Case Terminated/Account Closed 8/24/2015 Integrity - Service - Innovation 17

18 PRO Procedures Payroll office receives the M5501/M5801 report from DFAS-CL Disbursing EFT reissued to the Net Pay account reflected in DCPS Hardcopy check is reissued if correct EFT information is not available. Check is sent to the address of record in DCPS Technician deletes the erroneous EFT information Returned Checks- if the funds were returned due to case termination (such as child support cases), the technician must have verification from the paralegal before reissuing the payment 8/24/2015 Integrity - Service - Innovation 18

19 Check/EFT Return Frequent Issues Payroll office cannot return funds that have not been returned from the bank (showing in RCB2) Check/EFT returns have a 10 business day turnaround If there is no address or EFT information in DCPS, the payment cannot be reissued New Hires and Separations 8/24/2015 Integrity - Service - Innovation 19

20 REPLACEMENT CHECKS DD FORM 2660 Integrity - Service - Innovation Integrity - Service - Innovation 21

21 Replacement Checks - DD FORM 2660 DD Form 2660 is Statement of Claimant Requesting Recertified Check. Form is completed for non-receipt of check Please read the certification block carefully Pull the form from website: Place cursor on DoD Forms, then choose DD Forms Click on Scroll down to DD2660 and click on it Under available file format click on PDF-Ext and form will appear 8/24/2015 Integrity - Service - Innovation 21

22 Screen Print of Form DD2660 8/24/2015 Integrity - Service - Innovation 22

23 DD FORM 2660 Processing Field Activity should fax the completed DD Form 2660 to Imaging ( ), including the Line of Accounting in Block 15 and valid mailing address in Block 5. Block 5 should not be filled in with a direct deposit account. Disbursing Office will not reissue a lost check by EFT. They will only replace a check with a check. Submit completed DD Form 2660 three (3) business days after the scheduled pay day. Indianapolis Payroll Office will forward completed DD Form 2660 from Imaging to Disbursing Office for processing. Disbursing Help Desk DSN or /24/2015 Integrity - Service - Innovation 23

24 Questions???? 8/24/2015 Integrity - Service - Innovation 24

25 Health Savings Account (H.S.A.) Health Savings Account (H.S.A.) 8/24/2015 Integrity - Service - Innovation 25

26 Health Savings Account (H.S.A.) Defined An H.S.A. is an account that an employee funds with pretax earnings to cover current and future qualified medical expenses. 8/24/2015 Integrity - Service - Innovation 26

27 Health Savings Account (H.S.A.) Defined 8/24/2015 Integrity - Service - Innovation 27

28 Health Savings Account (H.S.A.) Regulations/Guidelines Volume 8, Chapter 11; IRS Publication 969 (2013) H.S.A. Account should be established using an H.S.A. trustee Bank, Insurance company, or anyone already approved by the IRS to be a trustee Employee must be enrolled in a high deductible health plan (HDHP) and must not be covered under any other health plan Employee must not be enrolled in Medicare Employee cannot be claimed as a dependent on someone else s tax return 8/24/2015 Integrity - Service - Innovation 28

29 Health Savings Account (H.S.A.) Regulations/Guidelines An H.S.A. shows as JX on the Pay History An H.S.A. is funded with pretax money and may be used to cover current and future qualified medical expenses An H.S.A. allotment will continue until the employee revokes or modifies the allotment election The 2015 Maximum amount for HDHP $3,350 for Self $6,550 for Family Once the employee s H.S.A. allotment reaches the Self or Family annual limit, payments will start to reject from the H.S.A. account 8/24/2015 Integrity - Service - Innovation 29

30 Health Savings Account (H.S.A.) Rejected H.S.A s All returned H.S.A. s are returned under Pseudo SSN s When an H.S.A. payment is rejected from the account, it is returned to the Payroll Office (PRO) in the same manner as a rejected EFT. PRO Identifies who the return is for Determines if the account has been updated in DCPS If the H.S.A. account number has been updated, the PRO will not touch it in DCPS If the H.S.A. account number is the same, the PRO will delete the H.S.A. allotment from DCPS to prevent continuous returns/rejects in future pay periods 8/24/2015 Integrity - Service - Innovation 30

31 Health Savings Account (H.S.A.) Rejected H.S.A s Returned H.S.A. funds are considered taxable income and are subject to Taxes, Medicare, and OASDI. DCPS does not allow for the PRO to input an H.S.A. refund (negative JX). The PRO work-around is to enter a positive Regular Earnings (RA) adjustment in the amount of the returned H.S.A. This allows the refund to pay out to the employee as taxable income. DCPS will automatically deduct all associated taxes, Medicare, and OASDI The PRO then corrects the employee s year-to-date payroll record by processing a negative JX adjustment to decrease the amount of H.S.A contributions Processing the RA and negative JX adjustments ensures the employee s H.S.A. W2 amounts are correct for the tax year 8/24/2015 Integrity - Service - Innovation 31

32 Health Savings Account (H.S.A.) W2c & Refund Returned H.S.A. allotments rejected from the bank (or other H.S.A. trustee) in the current year for H.S.A. allotments processed in the prior year require a correction to the employee s prior year Wage and Tax Statement (W2) The PRO processes a Corrected Wage and Tax Statement (W2c) to adjust H.S.A. (JX) (Block 12-W) Wages Subject to Federal, State, Local Taxes (if applicable) (Blocks 1,16, 18) Medicare & Wages Subject to Medicare (Blocks 5, 6) OASDI & Wages Subject to OASDI (Blocks 3, 4) The PRO reissues the funds via an ADS refund voucher, and decreases the refund by the amount of Medicare and OASDI taxes associated with the refund 8/24/2015 Integrity - Service - Innovation 32

33 Health Savings Account (H.S.A.) Refund Example Mary had an H.S.A. return for PPE 12/14/13 in the amount of $1,000.00, but it returned to the PRO on 1/15/14 Since the funds are associated with her 2013 JX, the PRO will process a W2c to decrease her JX deductions and increase her Subject to Taxes along with Subject to Medicare and OASDI, and the Medicare and OASDI deduction amount The PRO will refund Mary the $1, via an ADS refund voucher, but will deduct $76.50 for Medicare & OASDI Medicare: $1,000 x 1.45%= $14.50 OASDI: $1000 x 6.2%= $62.00 Total refund will be $ *NOTE: if the employee reached the OASDI maximum for the prior year, the PRO will NOT deduct OASDI from the refund or report it on the W2c. 8/24/2015 Integrity - Service - Innovation 33

34 Health Savings Account (H.S.A.) W2c & Debt If the H.S.A. has been set up into a personal account and the employee is not entitled to the H.S.A., there will be no rejected funds. In this situation, the CSR/HR must notify the PRO (via Remedy) so that a W2c can be processed. Select Remedy Title W2 Refer Remedy ticket to the ADS Team ADS Team processes the W2 and will: Reduce the H.S.A. (JX) amount Increase Subject to Federal Tax/State/Local Tax, Subject to Medicare, and Subject to OASDI (if applicable) Increase associated Medicare and OASDI (if applicable) Establish a debt for the increased Medicare and OASDI that was added to the W2c since the employee owes this money back 8/24/2015 Integrity - Service - Innovation 34