Business Requirements Document. SR W-2 Changes

Transcription

1 Business Requirements Document SR W-2 Changes

2 Document Information Document Attributes ID Owner Author(s) Contributor(s) Information SR Tax Services John Barrett, Marcia Johnson Beth Burkart, Craig Stowell, Rebecca Mcleland Revision History Version Issue Date Changes 1.0 5/31/17 B. Burkart Initial draft 1.1 6/2/17 Added Additional Items 1.2 6/19/17, Reconciled changes to BRD. Added year change to functional requirements 6/20/ /22/17 B. Burkart corrected typo GTN 274 should be /23/17 M. Johnson Added W-2 Mock-Up 1.5 7/11/17 B. Burkart Added OW2 layouts. Added placeholder for report samples /11/17 M. Johnson Added W-2 Reports 1.7 7/18/17 M. Johnson Replaced W-2 reports and W-2 form 1.8 7/20/17 M. Johnson - Added updated PPP6009 report page 1.9 7/27/17 B. Burkart added separate headings for each report. Replaced OW2 record layout with updated pages. Double-checked the DC Choice labels /31/17 B. Burkart finalized for posting, added footer /29/17 B. Burkart removed SSA from the background info section /4/17 M. Johnson adding UCPath requirements /26/17 B. Burkart replaced report samples with revised ones /31/2017 M. Johnson added more UCPath requirements /2/2017 M. Johnson Revisions and questions after meeting with Jaime Espinoza and Sean Halligan /16/2017 M. Johnson Added items provided by Craig and Rebecca at UCPath /2/2018 M. Johnson Added copies of UCPATH W-2 (front and back) /3/2018 B. Burkart added PPS back copy - revised /11/2018 S. Halligan added UCPATH Constraint /7/2018 B. Burkart added sample W-2 with Box 14 showing DCCHOIC. SR W-2 Changes Page 2

3 Document Approvals Role Name Signature Date Controller Peggy Arrivas Table of Contents 1 Overview Product/Solution Scope Business Services and Processes Business Rules Business Requirements Non-Functional Requirements External References PPS W-2 Sample UCPath W-2 Sample Electronic Copy from UCPATH Website UCPath W-2 Sample Copy that will be Mailed (Wells Fargo) PPS OW2 File Layout Employee Detail Record Changes OW2 File Layout Trailer Record Changes Reports PPP Reports PPP Reports PPP Reports PPP Reports PPP Reports PPP Reports PPP Reports PPP Reports PPP Reports PPP Reports UCPath TAX010ST Reports UCPath TAX Reports UCPath TAX916ST Reports UCPath TAX962FD SR W-2 Changes Page 3

4 1 Overview Modify the IRS W-2 process for tax year This will include the following changes. PPS Change the year from 2016 to 2017 Modify Box 14 for a new pension Tier Deduction labeled DCCHOICE UCPath Implement the PeopleSoft yearend software included in Tax Update 17-D. UC Path ITSS and Producution have reviewed release notes for relvant items to UC Path and completed testing. Modify Box 14 for a new Pension Tier deduction Remap deductions to Box 14 in order to avoid conflict with PeopleSoft standard use of these identifiers. 1.1 Background PPS Changes in the printed Form W-2 are needed each year to satisfy IRS requirements. The following processes require modifications for the 2017 tax year: PPS OW2 Interface File PPS Printed Form W-2 PPS W-2 Reports Note that OW2 is associated with AYSO, which is used only with PPS. Therefore, there is no UC Path equivalent to OW2, nor are their sample reports or templates. A modification is needed in Box 14 of the W-2. Some Pension Tier 2016 deductions that are currently included in the UCRP category need to be put into a separate, new category. SR W-2 Changes Page 4

5 The Pension Tier 2016 changes, implemented June, 2016, added several new Plans that are associated with various Tier 2016 employee contributions. The following amounts were included in the Box 14 category labeled UCRP for the 2016 Form W-2: PPS GTN Plan Name 728 Employee DB Deduction 722 Employee Supplement Deduction 748 Employee Supplement Deduction Faculty 724 Employee DC Deduction Starting with the 2017 Form W-2, the year to date amount for Employee DC Deduction should be reported in a different (new) category in Box 14. The label will be DCCHOICE. As in prior years, employer contributions to a health savings account (HSA), including amounts the employee elected to contribute using a section 125 (cafeteria) plan, must be reported on the W-2 in Box 12 using code W. California does not conform to the federal tax treatment of Health Savings Accounts, therefore the HSA employer and employee contribution is considered taxable income for California and must be included in Box 16, State Wages, tips, etc. for California, of the W-2. The employer contribution is added to the California State wages gross that is reported in Box 16, (and the employee state taxable gross is not reduced by the employee contribution). SR (R2157) addressed the reporting requirement process. No changes are needed to the existing HSA process. Under the 2015 Health FSA Plan, employees could set aside a portion of their income on a pre-tax basis for qualifying medical expenses. Unsubstantiated Health FSA claims for CY 2015 were forgiven by UC in CY 2017, and thus must be included on the 2017 W-2 and reported in Box 14. UCPath Each year, the PeopleSoft tax Update yy-d (where yy equals the last two digits of the year), contains the changes required to satisfy IRS and SSA requirements. PeopleSoft also facilitates the mapping of deduction codes to box 14. Two changes are needed for SR W-2 Changes Page 5

6 1) In 2016, UCPath determined that the use of 14(A), 14(B), 2) does not conform to PeopleSoft s standards. These values are reserved by PeopleSoft for standard box 14 values for the states of CA, NJ, NY, PA, and others (ex: CASDI). Refer to JIRA PMO UCPC remapped for UC reporting purposes in line with how PPS reports these Box 14. 3) Per the PPS BRD SR101807, the Employee DC deduction GTN must be mapped to box 14 with a label of DCCHOICE. UCPath DCCHBT is equivalent to the Employee DC deduction GTN. PSFT Deduction Code Desired Box 14 Description Currently mapped to (2015 and 2016 year end) Per PeopleSoft and HRIS, should be mapped to (for 2017 and forward) DCPMB, DCPVP, DCSFB, DCSSB DCP 14(A) 14(W) DCCHBT DCCHOICE N/A 14(Y) UCBB1A, UCBB1B, UCBB2A, UCBB2B, UCBB3A, UCBB3B, UCBB4A, UCBB4B, UCBB5A, UCBB5B, UCRPBI, UCRPBL, UCRPBT UCRP 14(B) 14(X) Earning code FSA HFSA 14(F) 14(Z) 1.2 Objectives PPS Current Process The tax year is Health FSA unsubstantiated claims were reported in Box 14 on the 2016 W-2 SR W-2 Changes Page 6

7 The amount for Employee DC Deduction was combined with Employee DB Deduction, Employee Supplement Deduction and Employee Supplement Deduction - Faculty and reported in Box 14 as UCRP. Proposed Process Change the tax year to 2017 Report the amount for Employee DC Deduction as a new category in Box 14 of the 2017 W-2. PPS OW2 Interface File The footnote on the PPS OW2 interface file layout should be modified to correctly represent the GTN amounts that will be included in UCRP going forward. A new category in Box 14 should be established, labeled DC CHOICE. This category will be for the YTD amount for Employee DC Deduction The logic for Box 14 should be modified to remove Employee DC Deduction from UCRP. A new trailer row will need to be established for the new Box 14 category. The Employee DC Deduction total amount should be removed from the UCRP trailer row in positions PPS. Need equivalent for the UCPath File. Printed W-2 Reports For the printed W-2, the YTD Employee DC Deduction amount should be removed from the UCRP category in Box 14. A new category DCCHOICE should be established in Box 14. To make room in Box 14, the text included in Box 01 can be removed, if necessary. YTD Employee DC Deduction amount should be included in the new DCCHOICE category. The following PPS reports will need to be modified to remove the Employee DC Deduction amount from the UCRP category and add a new category called DCCHOICE: PPP6007, 6008, 6009, 6011, 6014, 6017, 6019, 6020, 6021 and SR W-2 Changes Page 7

8 PPS Report PPP6007 W-2 Confirmation and Summary PPP6008 Non-Resident Exempt Alien Report PPP6009 W-2 Exceptions List PPP6011 Campus Summary PPP6014 Totals Reporting PPS Report PPP6017 W-2 Out-Of-State Report PPP6019 W-2 Editing Error Conditions List PPP6020 Social Security TIP Income PPP6021 Nonqualified Deferred Compensation Plans PPP6102 PPPTAXEDB Totals 2015 Health FSA unsubstantiated claims must be reported on the 2017 W-2 in Box 14. UCPath Current Process Tax year 2016 Processed using software delivered as part of PeopleSoft Tax Update 16-D. DCP, UCRP, and HFSA mapping incorrectly mapped to 14(A), (B) and (F), respectively. DC Choice deduction not mapped to box Health FSA Unsubtantiated claims reported on W-2 box 14. Proposed Process Tax year 2017 Processed using software delivered as part of PeopleSoft Tax Update 17-D. DCP, UCRP, and HFSA mapping corrected to 14(W), (X) and (Z), respectively. DC Choice deduction mapped to box 14 using 14(Y) and a label of DCCHOICE. SR W-2 Changes Page 8

9 2015 Health FSA Unsubtantiated claims reported on W-2 box Related Projects & Dependencies PPS SR W-2 Changes (R2247) SR Pension Tier 2016 (R2230) UCPath W-2 Changes UCPath PeopleSoft Tax Update 17-D SR PPS 2017 W2 Changes PY Processing W Test Plan 1.4 Stakeholders Acronym Description Role * Authorize Has ultimate signing authority for any changes to the document R Responsible Responsible for creating this document A Accountable Accountable for accuracy of this document (e.g. project manager) S C I Supports Consulted Informed Provides supporting services in the production of this document Provides input Must be informed of any changes Name Position * R A S C I John Barrett Director X X X X X X Marcia Johnson Sr. Analyst X X X X X Beth Burkart Business Analyst X X X Mary Meyer Programmer Analyst X X X SR W-2 Changes Page 9

10 Shaun Ruiz Payroll Coordinator X X Gayelea Allison Director of Production X X Kelly Krattiger Director of ITSS X X X Chauntelle Moses Payroll Manager X X X 1.5 Proposed Strategy See Proposed process above. 1.6 Glossary Term Description UCOP University of California Office of the President ITS Information Technology Services UCRS University of California Retirement Plan DCCHOICE Employee DC Deduction reported in Box 14 DCP Deferred Compensation Plan OW2 Online W-2 HSA Health Savings Account HFSA Health Flexible Spending Account SSA Social Security Administration CY Calendar Year JIRA Project Management Software PMO Project Management Office 2 Product/Solution Scope 2.1 Included in Scope SR W-2 Changes Page 10

11 PPS Printed W-2 OW2 interface file W-2 Reports See Table Above UCPath Box 14 values on online and printed W-2 s Box 14 values on standard PeopleSoft reports 2.2 Excluded from Scope PPS SSA file UCPath Box 14 items are not reported on the SSA EFW2 file because the SSA/IRS considers such data informational and thus optional for reporting. UCPC has chosen not to include in the SSA EFW2 file. 2.3 Assumptions & Constraints ID PPS UCPath UCPath Assumption / Constraint DCCHOICE and DC CHOICE refer to the same plan. Where room permits, we will use the label DC CHOICE for readability. Except as specified in this BRD, the approved W-2 mapping used for 2016 agency filing shall be used for 2017 reporting. Due to character constraints for this field the DCCHOICE code will be written out as DCCHOIC (without the E at the end) in order to fit into the field on the EEs W-2s. 2.4 Outstanding Items SR W-2 Changes Page 11

12 ID Description 3 Business Services and Processes N/A 4 Business Rules 5 Business Requirements 5.1 User Requirements Req ID PPS Requirement Type Requirement Description Priority [L/M/H] W-2 Box 14 The year to date amount for H Employee DC Deduction should be reported in the new DCCHOICE category instead of being included in UCRP in Box Printed W-2 The year must be updated from 2016 to 2017 on the printed W Reports W-2 reports should report DC Choice separately instead of including it in the UCRP amounts. Comments Online W-2 and printed W Functional Requirements SR W-2 Changes Page 12

13 PPS Requirements: Req ID PPS Requirement Type Requirement Description Priority [L/M/H] R001 W-2 - printed The year must be changed H from 2016 to 2017 Comments See attached sample R002 W-2 - printed For the printed W-2, the YTD amount for GTN 724 should be removed from the UCRP category in Box 14. H A new category DCCHOICE should be established in Box 14. To make room in Box 14, the text included in Box 01 can be removed, if necessary. YTD amounts for GTN 724 should be included in the new DCCHOICE category. R003 PPS OW2 file The footnote on the OW2 interface file layout should be modified to correctly represent the GTN amounts that will be included in UCRP going forward. (remove 724). This is in scope for PPS only. OW2 not used for UC Path. UCRP GTNs include 005, 006, 041, 351, 352, 353, 354, 355, 722, 724, 728 and 748. R004 PPS OW2 File A new category in Box 14 should be established, labeled DCCHOICE This category will include YTD amounts for GTN 724. H H See attached layout See attached layout SR W-2 Changes Page 13

14 R005 PPS OW2 File The logic for Box 14 should be modified to remove GTN 724 from UCRP. R006 PPS OW2 File A new trailer row will need to be established for the new Box 14 category. Amounts for GTN 724 should be removed from the UCRP trailer row in positions R007 Reporting The following reports will need to be modified to remove the GTN 724 amounts from the UCRP category and add a new category for GTN 724 (DC CHOICE): PPP6007, 6008, 6009, 6011, 6014, 6017, 6019, 6020, 6021 and 6102 H H H See attached layout UCPath Requirements: Req ID UCPath R1 R2 Requirement Type Requirement Description Priority [L/M/H] The combined amounts for the following deduction codes (DCPMB, DCPVP, DCSFB, DCSSB) shall be mapped to Box 14 and appear with a label of DCP The combined amount for the following deduction codes (UCBB1A, UCBB1B, UCBB2A, UCBB2B, UCBB3A, UCBB3B, UCBB4A, UCBB4B, UCBB5A, UCBB5B, UCRPBI, UCRPBL, UCRPBT) shall be mapped to Box 14 and appear with a label of UCRP. Comments SR W-2 Changes Page 14

15 R3 R4 The amount for the Earning code FSA shall be mapped to Box 14 and appear with a label of HFSA The amount for deduction code DCCHBT shall be mapped to Box 14 and appear with a label of DCCHOICE. R5 Reporting The following UCPath W-2 reports must include deduction code DCCHBT (labeled DCCHOICE) if applicable: Year End Consent Year End Reporting Info Process TAX504 Error Listing Report TAX900 YE 5.3 Reporting Requirements N/A 6 Non-Functional Requirements N/A 7 External References Document Location Author SR W-2 Changes Page 15

16 8 PPS W-2 Sample SR W-2 Changes Page 16

17 SR W-2 Changes Page 17

18 9 UCPath W-2 Sample Electronic Copy from UCPATH Website SR W-2 Changes Page 18

19 10 UCPath W-2 Sample Copy that will be Mailed (Wells Fargo) SR W-2 Changes Page 19

20 SR W-2 Changes Page 20

21 SR W-2 Changes Page 21

22 11 PPS OW2 File Layout Employee Detail Record Changes SR W-2 Changes Page 22

23 12 OW2 File Layout Trailer Record Changes SR W-2 Changes Page 23

24 13 Reports PPP6007 SR W-2 Changes Page 24

25 SR W-2 Changes Page 25

26 14 Reports PPP6008 SR W-2 Changes Page 26

27 SR W-2 Changes Page 27

28 15 Reports PPP6009 SR W-2 Changes Page 28

29 SR W-2 Changes Page 29

30 16 Reports PPP6011 SR W-2 Changes Page 30

31 17 Reports PPP6014 SR W-2 Changes Page 31

32 SR W-2 Changes Page 32

33 SR W-2 Changes Page 33

34 SR W-2 Changes Page 34

35 SR W-2 Changes Page 35

36 18 Reports PPP6017 SR W-2 Changes Page 36

37 SR W-2 Changes Page 37

38 19 Reports PPP6019 SR W-2 Changes Page 38

39 20 Reports PPP6020 SR W-2 Changes Page 39

40 21 Reports PPP6021 SR W-2 Changes Page 40

41 22 Reports PPP6102 SR W-2 Changes Page 41

42 23 Reports UCPath TAX010ST 24 Reports UCPath TAX915 SR W-2 Changes Page 42

43 25 Reports UCPath TAX916ST 26 Reports UCPath TAX962FD SR W-2 Changes Page 43