2017 Year End Guide. Paylocity Clients

Transcription

1 2017 Year End Guide Paylcity Clients It is that time f year again Year End is upn us! We understand this is a busy and demanding time f year fr everyne, especially payrll and HR prfessinals. This 2017 Year End Guide is a crucial part f ur furth quarter and Year End prcessing that will guide yu t a smth and successful Year End. This cmprehensive cllectin f key infrmatin and helpful resurces will help take yu step-by-step thrugh the Year End reprting prcess. Yur 2017 W-2s will reflect all payrll data prcessed with check dates between 1/1/2017 and 12/31/2017. All 2017 payrll infrmatin must be reprted t Paylcity by 6 p.m. Central Time (CT) n December 29, 2017 t avid additinal fees and pssible late tax depsits. Emplyer cpies f W-2s and 1095-Cs will be upladed int Web Pay n January 19, Emplyee cpies f W-2s and 1095-Cs will be delivered t yur lcatin by January 25, Paylcity s hurs f peratin will remain the same thrughut Year End; we are available by phne 7 a.m. 7 p.m. CT Mnday thrugh Friday r by ing yur dedicated Accunt Manager r ur general supprt team at service@paylcity.cm. We will acknwledge all requests received during nrmal business hurs the same day they are received. We d anticipate lnger than nrmal hld times during Year End due t ur increased respnsibilities during this busy time, but rest assured we are cmmitted t giving all f ur clients the attentin yu need. Paylcity makes it a pririty t prvide each f ur clients with the highest pssible level f service in the payrll industry. We welcme any suggestins yu may have regarding hw we can imprve yur Year End experience with us by ing service@paylcity.cm. Sincerely, Yur Paylcity Staff Cpyright 2017 Paylcity. All Rights Reserved. Page 1

2 Table f Cntents Year End Tax Package... 3 Hliday Days f Operatin... 3 Cntact Infrmatin... 4 Third-Party Sick Pay Reprting Prcedure... 4 Scial Security Number Verificatin... 4 E-Verify fr Onbarding... 5 Year End Supplemental Invicing W-2 Previews... 6 Access W-2/109X Previews... 6 Fast-Appraching ACA Deadline C Previews... 9 W-2 & 1095-C Delivery Address Change Back-Dated Payrlls Same-Day Check Dates Retirement Plan Updates Census Reprts Custm Reprts Benefit Statements Custm Payrll Calculatins Enter Year End Infrmatin int Web Pay Running a Successful Bnus Payrll Setting Up New Fringe Benefit Cdes (Excluding GTL) Setting Up New Grup Term Life (GTL) Earning Cde Reprting the Taxable Value f Fringe Benefits with Wages Reprting the Taxable Value f Fringe Benefits withut Wages Types f Third-Party Sick Pay Third-Party Sick Pay Entry Reprting the Cst f Healthcare Expenses Additinal Resurces Cpyright 2017 Paylcity. All Rights Reserved. Page 2

3 Year End Tax Package Yu shuld expect t receive yur upladed Year End tax package by 01/16/2018, assuming yu have nt reprted infrmatin after the 12/29/2017 reprting deadline. If yu have nt prvided Paylcity with yur address fr this ntificatin, please cntact us at service@paylcity.cm prir t 12/29/2017. Once yu receive ntificatin, please lg int Web Pay and navigate t Tls > Year End Dashbard t access yur reference cpies via the Reprts > Final sectin. Reference the 2017 Year End Dashbard Guide fr additinal infrmatin. Please pay special attentin t the Recnciliatin Recap Reprt, which will indicate any amunts being debited r credited t yur bank accunt n r after 01/18/2018. Fr Califrnia and Virgin Island clients, this debit may include additinal FUTA tax due t thse states/territries failing t repay their federal lan by Nvember 10, Paylcity recmmends yu cnsider ntifying yur accunting team s they can accrue this expense. We can assist with calculating this accrual using ur Reprt Writer tl. Please cntact yur dedicated Accunt Manager fr assistance. Hliday Days f Operatin Hliday Thanksgiving Christmas New Year s Day Paylcity Clsed Nv. 23, 2017 Dec. 25, 2017 Jan. 1, 2018 Paylcity s lcal curier service and UPS will fllw this hliday schedule. Therefre, if yu transmit payrll befre 6 p.m. CT the day befre a stated hliday, yur payrll will fllw the belw delivery schedule: Lcal Deliveries Payrlls prcessed 11/22/17 will be delivered 11/24/17. Payrlls prcessed 12/22/17 will be delivered 12/26/17. Payrlls prcessed 12/29/17 will be delivered 1/2/18. UPS/FedEx Deliveries Payrlls prcessed 11/22/17 will be delivered 11/24/17. Payrlls prcessed 12/22/17 will be delivered 12/26/17 unless labeled fr Saturday 12/23/17 delivery. Payrlls prcessed 12/29/17 will be delivered 1/2/18 unless labeled fr Saturday 12/30/17 delivery. Imprtant Ntes Saturday deliveries have the ptential f being restricted t densely ppulated zip cdes. Please cntact yur dedicated Accunt Manager r Paylcity s Client Services department fr assistance with any check date changes r hlds n delivery. Cpyright 2017 Paylcity. All Rights Reserved. Page 3

4 Cntact Infrmatin Fr assistance, please cntact Paylcity via , phne, and/r fax. Phne Fax Third-Party Sick Pay Reprting Prcedure All third-party sick pay reprting must be prcessed by Paylcity by the Year End deadline f Friday 12/29/2017 t avid additinal fees. All third-party sick pay transactins reprted t Paylcity will be reprted n the emplyees W-2s. T avid duble reprting, please ensure the third party insurer is nt prducing W-2s. If yu receive emplyer cpies f W-2s frm yur third-party sick pay prvider, d nt file them with the Scial Security Administratin (SSA). If Paylcity reprts and pays the emplyer liability, we will issue the W-2s and include them n yur annual filing t the SSA. Befre reprting third-party sick pay, determine the type f sick pay being reprted and the percentage f grss that is taxable. Sme insurers will separate the Scial Security and Medicare amunts n their statement, while thers will list the cmbined amunt under FICA Withheld. This is very imprtant when accurately reprting the received benefits. Be sure t include all federal and/r state withhlding reprted n the statement. Federal and state withhlding will nly ccur if an emplyee requests it. If withhlding federal and state taxes, Paylcity requires these amunts t be entered fr inclusin n the emplyees W-2s. Since sme insurers d nt prvide timely updates f December payments, cnsider using an estimate based n the previus payment. This apprach will likely prevent an amendment and assciated fees. Scial Security Number Verificatin Paylcity prvides an annual service fr verifying the validity f emplyees names and Scial Security Numbers (SSNs). As a registered agent, Paylcity will send a secured file cntaining yur emplyees SSNs t the Scial Security Administratin (SSA). The SSN Verificatin reprt identifies all recrds with a Cpyright 2017 Paylcity. All Rights Reserved. Page 4

5 mismatch and is available t yu in Web Pay under Reprts & Analytics > Reprting Dashbard. This shuld prvide yu sufficient time t update yur recrds prir t the end f the calendar year. As an emplyer, there are a number f key benefits: Ensures W-2 infrmatin is accurately reprted prir t Year End, thus saving ptential cstly restatement fees Mitigates the grwing risk f identity theft by reprting SSN discrepancies Audits emplyee infrmatin t ensure accurate and timely infrmatin that matches gvernment recrds Better prepares fr ptential immigratin refrm As a valued client f Paylcity, we will perfrm this service fr a nminal cst f $25 plus $0.50 per emplyee with wages in 2017 fr clients wh jined Paylcity in Fr clients that started with Paylcity prir t 2017, we will send the file f all new emplyees hired in 2017 with year-t-date wages. E-Verify fr Onbarding Fr thse wh have Paylcity s Onbarding slutin enabled, E-Verify cmpares infrmatin frm an emplyee s Frm I-9 t data frm gvernment agencies the Department f Hmeland Security, Scial Security Administratin, and Department f State t cnfirm emplyment eligibility. This can assist in making Year End hiring mve mre smthly and als help get 2018 ff t a strng start with a better understanding f the feature. Refer t the E-Verify sectin in the Onbarding guide t get started and cmplete peratinal tasks. Year End Supplemental Invicing Yur 2017 W-2 and 109X prcessing and delivery fees will be calculated and included n yur payrll invice arund the end f January r start f February. If yu require a W-2/109X reprint r an amendment, additinal fees will be incurred. Amendment fees will be applied t yur payrll invices nce the amendment has been cmpleted. An amendment applies t any change r additin f infrmatin after 6 p.m. CT n January 5, Fees are assessed accrding t the type f change required; a minimum base fee f $600 will apply. Fees are shwn n the table n the next page. Cpyright 2017 Paylcity. All Rights Reserved. Page 5

6 Year End Service Original W-2 Fee $45 base per cmpany, $6.25 per frm Reprinted W-2/1099/1095-C (Per Frm) $6.25 W-2c r Crrected 1095-C $25 Lcal Delivery $11 UPS Delivery *Amendment (Minimum Fee) Varies by Weight $ W-2 Previews W-2 Previews will be available n Octber 1, 2017, with any crrectins thrugh September 30 appearing. This feature allws yu t preview all the data t be captured n the W-2 frm. This is a great way t ensure emplyee and cmpany W-2 infrmatin is crrect befre the final W-2s are printed and filed n yur behalf. We encurage yu t verify all infrmatin and immediately reprt any discrepancies t yur dedicated Accunt Manager. Taking the time t review this infrmatin befre the W-2s are finalized fr the year will help ensure yur emplyees receive accurate and timely infrmatin. It will als help yu t avid additinal fees incurred fr adjustments/amendments made t the final W-2 infrmatin. Paylcity recmmends yu review a minimum f 10 emplyees and cmpare their 2016 W-2 against a 2017 preview t ensure it is meeting expectatins. Shuld yu have the need t make crrectins, refreshed W-2 preview infrmatin will be available: Nvember 1, 2017 Nvember 15, 2017 December 1, 2017 December 8, 2017 December 15, 2017 December 22, 2017 Crrectins thrugh Octber 31 available in Web Pay Crrectins thrugh Nvember 14 available in Web Pay Crrectins thrugh Nvember 30 available in Web Pay Crrectins thrugh December 7 available in Web Pay Crrectins thrugh December 14 available in Web Pay Crrectins thrugh December 21 available in Web Pay Nte: Yu can run W-2 Previews n demand in the Year End Dashbard withut waiting fr Paylcity t prduce the W-2 Previews. Access W-2/109X Previews The Reprts > Preview sectin f the Year End Dashbard allws yu t view W-2/109X previews, as well as regenerate W-2/109X previews. Reference the 2017 Year End Dashbard Guide. Cpyright 2017 Paylcity. All Rights Reserved. Page 6

7 Year End Dashbard Access the Year End Dashbard in Web Pay via Tls > Year End Dashbard. The Reprts > Preview sectin allws yu t view generated W-2/109X previews and generate new previews with realtime data. 1. Click View next t the generated preview t dwnlad the reprt t a PDF fr saving/printing. 2. Click Regenerate Preview fr a brand-new preview t be generated with the mst current data. Reprts & Analytics 1. Access Web Pay via the main lgin page. 2. Chse Quarter & Year End via the Reprts & Analytics menu. 3. Click 2017 W2/109X Preview. Imprtant Nte: Once the final 2017 W-2s have been generated, the previews will be replaced by the final 2017 W-2s. Fast-Appraching ACA Deadline Cpyright 2017 Paylcity. All Rights Reserved. Page 7

8 Thrugh Paylcity s ACA slutins, we can help emplyers t easily manage the cmplex elements f the ACA requirements and give yu the tls t cmply with upcming cmpliance deadlines. Paylcity ffers tw slutins frm which yu may: ACA Enhanced This cmprehensive tl allws yu t access t full analysis, cverage, and cmpliance with all federal ACA requirements. This includes: Autmatic tracking f all necessary data fr 1095-C and 1094-C Preparatin and electrnic filing f 1094-C and 1095-C frms Dashbards reprts and alerts t track eligibility, affrdability, and large-emplyer status Reslutin f cmpany-level IRS ntices that may arise with ACA filing ACA Essentials Enables yu t create basic reprts, 1095-C frms, and Paylcity s assistance with filing f all apprpriate infrmatin with the IRS. Are yu lking fr help in yur jurney t ACA cmpliance? Use Paylcity s library f training resurces: ACA Step-By-Step Guide An interactive guide will help yu navigate the Paylcity ACA Dashbard by walking yu thrugh five key steps: ACA Dashbard setup Determining if yu are a large emplyer Cmpany setup Emplyee setup Validatin ACA Maintenance Checklist Track yur prgress and make sure certain milestnes are met thrugh yur ACA jurney. Bite-Sized ACA Vides Thrugh the Web Pay Administratr Training Dcuments page, yu have access t nt nly ACA-specific vides via the Affrdable Care Act sectin, but Payrll, Reprts, Maintenance, and Using Web Pay vides as well. These are a great way t access the needed infrmatin at any time thrugh small, 10-minute r shrter vides. Live Training Sessins Tw available curses intrduce the Enhanced and Essentials features that highlight the autmated mnthly calculatins, alng with cvering the essential functinality f the ACA slutin. Quick Checklist t ACA Cmpliance A quick, six-step checklist t make sure yu are n the right track t ACA cmpliance frm beginning setup t nging maintenance. Cpyright 2017 Paylcity. All Rights Reserved. Page 8

9 1095-C Previews T access the ACA Dashbard, fllw the path Tls > Cmpliance/ACA. Click Affrdable Care Act. Click the Emplyees sectin n the header bar t preview 1095-C frms fr emplyees. While this is nly a preview, it allws an pprtunity t ensure that the infrmatin cntained n the frm is crrect befre the frms are filed. If any discrepancies are fund, cntact yur dedicated Accunt Manager ASAP. Regenerate 1095-C Frms This allws yu t refresh previews after making any applicable crrectins. 1. Click the Overview sectin f the ACA Dashbard. 2. Select the applicable mnth and year via the drpdwns and click Regenerate 1095-Cs. Imprtant Nte: After the finalized 1095-Cs have been generated, see a full preview f the frms via the Reprts & Analytics > Quarter & Year End page. Cpyright 2017 Paylcity. All Rights Reserved. Page 9

10 W-2 & 1095-C Delivery Address Change If the delivery address has changed fr either the W-2 r 1095-C frms, cntact yur dedicated Accunt Manager by Friday, December 29 t ensure the adjustments can be made in the apprpriate timeframe. The default delivery lcatin fr yur cmpany will be where the W-2s and 1095-Cs will be sent. T verify the address, lg int Web Pay and review the Default Delivery Lcatin via Cmpany > Optins > Delivery Lcatins. Click Default in the Cde clumn fr further infrmatin. Back-Dated Payrlls When back-dated payrlls are required t be prcessed, Paylcity will wrk with yu t accmmdate yur needs n a case-by-case scenari. There is a prcess t fllw t ensure that the payrll is prcessed crrectly and in cmpliance with Paylcity s guidelines. 1. Cntact yur dedicated Accunt Manager t enter a back-dated check date int the payrll calendar fr yur cmpany. Only Paylcity users can enter back-dated check dates. 2. Access the Payrll > Pay Entry page and select the check date via the Check Date drp dwn. 3. A banner message will appear indicating that a payrll amendment/adjustment acknwledgement is necessary. Click here n the banner. 4. Review the Payrll Amendment Acknwledgement pp-up and click the X t clse. 5. Enter payrll as nrmal and apprve the batch. 6. Click Submit Payrll. 7. Review the Payrll Amendment Acknwledgement pp-up, check I Accept and click Save. Imprtant Nte: Back-dated payrlls incur the standard prcessing and delivery fees, in additin t the ptential amendment fees starting at $ Cpyright 2017 Paylcity. All Rights Reserved. Page 10

11 Same-Day Check Dates In cases where a payrll needs t be submitted n the actual check date, Paylcity will wrk with yu in an attempt t accmmdate yur needs n a case-by-case scenari. There is a prcess t fllw t ensure that the payrll is prcessed crrectly and in cmpliance with Paylcity s guidelines. 1. Access Payrll > Pay Entry Optins and click n the Calendar tab. 2. Enter the same date in the Check Date and Expected Submit Date fields. Input the applicable pay Perid Begin and End Dates additinally in the respective fields. 3. Click Add. 4. On the same Calendar page, click the link fr the check date in the Check Date clumn t be directed t the Pay Entry page. 5. A banner message will appear indicating that a payrll amendment/adjustment acknwledgement is necessary. Click here n the banner. 6. Review the Payrll Amendment Acknwledgement pp-up and click the X t clse. 7. Enter payrll as nrmal and apprve the batch. 8. Click Submit Payrll. 9. Review the Payrll Amendment Acknwledgement pp-up, check I Accept and click Save. Imprtant Nte: A standard $50 fee will be assessed in additin t yur nrmal prcessing fees. If delivery is required, additinal shipping csts will be assessed as well. Retirement Plan Updates Dn t frget t include retirement plan changes int yur Year End checklist and cntact Paylcity with details as sn as pssible. Sme f these changes might include: Mdifying an existing match calculatin: An example f the mdified calculatin shuld be submitted as early as pssible. Cpyright 2017 Paylcity. All Rights Reserved. Page 11

12 Changes t earning r deductin cdes that culd pssibly affect match calculatins r data being sent t a prvider such as earning calculatin cde adjustments, please cntact Paylcity at least three weeks ahead f time. Changes t yur retirement benefits prvider fr the beginning f 2018: If yu are changing yur retirement plan prvider and wuld like t setup an autmatic file transfer t the new prvider, cntact Paylcity t determine if an autmatic file transfer is pssible t the new prvider. If the prvider accepts a file transfer, yu ll receive new startup dcuments t cmplete. The dcuments must be returned befre any wrk can begin n the new setup. The timeframe t cmplete the new file transfer setup varies greatly due t the new prvider s setup time and can take anywhere frm three t eight weeks r lnger frm the day Paylcity receives all required infrmatin fr the setup t be cmpleted. The cst t set up a new prvider is usually $350, thugh it can vary by prvider. Be sure t identify the date t stp the retirement file transfer t the current prvider. While the autmatic file transfer is being setup, yu may need t make arrangements t send the infrmatin manually t the prvider using Paylcity s standard 401(k) dcuments, which can be set up t be generated with every payrll prcessing via the Reprts & Analytics > Grups & Scheduling page: 401(k) Reprt 401(k) Year-T-Date Reprt 401(k) Census Changes t yur plan with yur current prvider: Adding Rth Establishing a new type f match Changing frm a safe harbr plan t anther available plan ptin Cmplete the 401k and 403b Match and Sign-ff frm fund in the General Frms sectin f the Paylcity Resurce Dcuments page. The Match Sign-ff frm must be returned t Paylcity befre any wrk can begin. Census Reprts If Census infrmatin is required t be sent t yur prvider, please review the fllwing Standard Reprts via Reprts & Analytics > Reprting Dashbard > Reprts Library t see if the data required is available: 401(k) Census Reprt 401(k) Year t Date Reprt Cpyright 2017 Paylcity. All Rights Reserved. Page 12

13 If data beynd what these reprts ppulate is required, please use ur Reprt Writer Utilities t create a reprt with the necessary infrmatin. If yu require assistance building a reprt writer fr census infrmatin, please cntact yur dedicated Accunt Manager. If yu find that nne f the abve ptins will satisfy yur prvider s needs, Paylcity can develp a custm reprt that exprts t Excel r CSV in specific frmats. Please see the Custm Reprts sectin belw fr csts and timeframes. Custm Reprts Fr new Custm Reprts r mdificatins t an existing custm reprt, please cntact Paylcity with details as sn as pssible due t the increased turnarund times assciated with Year End. New Reprts Please cmplete the required Custm Reprt Request frm and submit t Paylcity fr each reprt requested. Additinally, a sample reprt must be submitted fr a new Custm Reprt Request. New custm reprt requests received: Befre 1/15/2018 will be cmpleted in six weeks Between 1/15/2018 and 3/16/2018 will be cmpleted in eight weeks After 3/16/2018 will be cmpleted in six weeks Csts fr a new custm reprt start at $250 Reprt Mdificatins Custm reprt mdificatin requests received: Befre 1/15/2018 will be cmpleted in ne week Between 1/15/2018 and 3/16/2018 will be cmpleted in tw weeks After 3/16/2018 will be cmpleted in ne week Benefit Statements Emplyee benefit statements are an effective tl t use fr cmmunicating the ttal cmpensatin value f emplyer spnsred benefits. All Web Pay benefit statements derive their data frm the Insurance and Benefit setup sectins in Web Pay s Advanced HR prduct. If yu plan t use Paylcity fr yur 2018 benefit statement, please verify yur Advanced HR setup with yur dedicated Accunt Manager. Cpyright 2017 Paylcity. All Rights Reserved. Page 13

14 Cmpanies with Web Pay Benefit Statements in 2018 Please run yur statement at this time and verify that the results are as yu expect. If yu require a mdificatin r update t the benefit statement in 2018: Please create a mck-up f the statement with the changes yu wish t include Nte that any new benefits fr this year s statement must be set up thrugh Advanced HR prir t submitting yur reprt request. Benefit statement mdificatin requests received: Befre 1/15/2018 will be cmpleted within six weeks Between 1/15/2018 and 3/16/2018 will be cmpleted in eight weeks After 3/16/2018 will be cmpleted in six weeks There is a $1,000 yearly maintenance fee Cmpanies Intending t Run Web Pay Benefit Statements fr the First Time in 2018 Nte that any benefits expected t be n this year s statement must be set up thrugh Advanced HR prir t submitting yur reprt request Benefit Statement setup csts $1,000 with a $1,000 yearly maintenance fee New custmers are required t cntact Paylcity t set up their benefit statements if they have nt been previusly set up New Benefit Statement requests received: Befre 1/15/2018 will be cmpleted in eight weeks Between 1/15/2018 and 3/16/2018 will be cmpleted in twelve weeks After 3/16/2018 will be cmpleted in eight weeks Custm Payrll Calculatins Paylcity can write custm payrll calculatins in many situatins t allw cmplex calculatins that cannt be handled by standard system functins. Examples include cmplex match and unin rate calculatins. If yu are requesting a new Custm Calculatin: An example f the Custm Calculatin shuld be submitted as early as pssible Requests received by Mnday 12/4/2017 will be cmpleted in tw weeks Requests received after Mnday 12/4/2017 will be cmpleted in fur weeks If yu are requesting a mdificatin t an existing Custm Calculatin: An example f the mdified calculatin shuld be submitted as early as pssible Requests received by Mnday 12/4/2017 will be cmpleted in ne week Requests received after Mnday 12/4/2017 will be cmpleted in tw weeks Cpyright 2017 Paylcity. All Rights Reserved. Page 14

15 Enter Year End Infrmatin int Web Pay Edit an Existing Check Date Check dates can be changed thrugh Batch Setup r Payrll Entry. Pay Entry Optins 1. Click Pay Entry Optins via the Payrll menu. 2. Click the Calendar tab. 3. Click the radi buttn next t the applicable Check Date and click Edit n the bttm left. 4. Update Check Date infrmatin as needed and click Save. 5. Updated Check Date infrmatin will appear n the Calendar page. Cpyright 2017 Paylcity. All Rights Reserved. Page 15

16 Pay Entry 1. Click Pay Entry via the Payrll menu. 2. Frm the Pay Entry page, click Edit/Change. 3. Update Check Date infrmatin as needed and click Save. Cpyright 2017 Paylcity. All Rights Reserved. Page 16

17 Running a Successful Bnus Payrll 1. Click Pay Entry Optins via the Payrll menu. 2. If a new check date is nt needed, prceed t #6. 3. If a new check date is needed, click the Calendar tab. 4. Via the clickable calendar r manual entry, select the applicable Check Date, Perid Begin Date, Perid End Date, and Expected Submit Date. 5. Click Add. 6. Click the Batch tab. 7. Select the Check Types page. 8. Click the BONUS link under the Name clumn. Cpyright 2017 Paylcity. All Rights Reserved. Page 17

18 9. Cnfigure the Bnus Check Type as needed. a. Override the Tax Frequency if necessary r select the crrect taxatin frm the Override FITW and/r Override SITW drpdwn arrws r click the Use Supplemental Tax Rate check bx t use 25% fr FITW and the emplyee s state withhlding supplemental tax rate. Please nte that t enable the Override FITW r SITW bxes, r the Use the Supplemental Tax Rates check bx, the Tax Frequency drpdwn must have Nne selected. Only ne type f taxatin can be selected. All ther ptins will be unavailable. b. Blck Direct Depsit and/r Aut Labr Distributin by checking apprpriate bxes. c. Blck the apprpriate recurring Earnings and Deductins either by checking the individual bxes r by using the Earnings r Deductins drpdwn arrws, chse the selectin, and click the Blck buttn. Within the Earnings drpdwn, the chices are All, Mem, GTL, and 401ER. Within the Deductins drpdwn, the chices are All, Mem, Pre-Tax Insurance, and Pre-Tax Retirement. 10. When cnfiguratin f the Bnus Check Type Detail is cmplete, click Save & Return t navigate back t the Check Types page. 11. Access the Payrll Pay Entry page and select the bnus check date via the Check Date drpdwn menu. 12. Verify the Check Date, Perid Begin Date, and Perid End Date are crrect. 13. If the Check Date needs t be changed, click Edit/Change next t the Check Date drpdwn menu, change the date accrdingly, and click Save & Return. 14. If yu have frequency-based time-ff accruals calculated in Web Pay then check the Blck Frequency bx t blck timeff accruals. Nte: Checking this bx will blck time ff accruals fr all batches listed n this screen. Cpyright 2017 Paylcity. All Rights Reserved. Page 18

19 15. Click Add Batch. 16. Uncheck Aut-Pay Emplyees. 17. In the Aut Pst sectin, click Override. 18. In the Line Items sectin, change the EREG line t EBONUS by using the drpdwn arrws. 19. Yu may change the Entry Type clumn t Amunt Only if the bnus entries will nly be dllar amunts. 20. Click Save & Return. 21. Select Bnus via the Check Type drpdwn menu. 22. If a mem is desired n all bnus check stubs, enter the message in the Mem Text bx lcated in the Check Stub Mem sectin. 23. Click Start Batch when all cnfiguratins are cmplete. Imprtant Ntes: Web Pay has a feature that will accmmdate net t grss calculatins. Please cntact yur dedicated Accunt Manager r refer t the Web Pay Administratr Guide fr further infrmatin. Cpyright 2017 Paylcity. All Rights Reserved. Page 19

20 Setting Up New Fringe Benefit Cdes (Excluding GTL) 1. Access the Cmpany > Setup page. Click n the Payrll tab t view the Earnings page. 2. Click Add. 3. Enter all the required fields (indicated by a bullet t the left f the field). The Earnings Cde may nt be lnger than five characters in length. Input a Descriptin f the Earning and select the apprpriate Earning Type. Nte that selecting the crrect Earning Type will accurately establish taxability and apprpriate W-2 bx. 4. Check the Matching Ded Cde? bx if the fringe needs a matching deductin, i.e. the fringe benefit is entered fr taxatin purpses nly and the emplyee is nt wed a mnetary amunt. 5. Click Save & Return. Cpyright 2017 Paylcity. All Rights Reserved. Page 20

21 6. Click Edit under the Taxability clumn n the Earnings page t verify the taxability is as intended. 7. Keep in mind that Paylcity will cde all Earning Types with the legal tax cding and preferred methd f taxatin. If Blcked is checked, the user has the right t uncheck the crrespnding Bx, but may nt uncheck r check any tax cded as Exempt. We recmmend withhlding lcal taxes, but blcking federal and state withhlding t prevent emplyees net checks frm being significantly decreased r netting t zer. The wages will still appear in the apprpriate W-2 bx. 8. Click Save & Return. Setting Up New Grup Term Life (GTL) Earning Cde 1. Access the Cmpany > Setup page. Click n the Payrll tab t view the Earnings page. Cpyright 2017 Paylcity. All Rights Reserved. Page 21

22 If Adding GTL t Reprt the Annual Amunt at the End f the Year: 2. Click Add GTL Flat Amunt at the bttm f the Earnings page t create the crrect cde, taxability, and W-2 bx infrmatin. 3. Verify all fields are ppulated as intended. Click Save & Return. 4. When editing a live payrll batch, select the created GTL1 cde and enter the apprpriate dllar amunt in the Detail screen. If Adding GTL t be Calculated Thrughut the Year: 1. Access the Cmpany > Setup page. Click n the Payrll tab t view the Earnings page. 2. Click Add GTL Calculated Per Payrll at the bttm f the Earnings page t create the crrect cde taxability and W-2 bx infrmatin. 3. Verify all fields are ppulated as intended n the Earning Details screen. Click Save & Return. Cpyright 2017 Paylcity. All Rights Reserved. Page 22

23 4. T cde the emplyee fr reprting GTL Calculated per Payrll, navigate t the Emplyees > Emplyee Search page and click n the name f the applicable emplyee. 5. Click the Payrll Setup tab and select Earnings. 6. Click Add t access the Earning Details page. 7. Select GTL GROUP TERM LIFE CALCULATED frm the Earning Cde drpdwn menu. The Effective Date field defaults t the present date. 8. The emplyee s birthday must exist in Web Pay fr the GTL earning cde t appear in the Earning Cde drpdwn menu. 9. In the Hurs/Unit field, enter the full plicy amunt fr the emplyee s GTL. 10. Click Save & Return. Reprting the Taxable Value f Fringe Benefits with Wages T reprt the value f a fringe benefit, the fllwing steps will ensure accurate tax returns. This functin must be perfrmed within the Detail screen f the payrll batch. 1. Within the payrll batch, click Detail and navigate t the emplyee s recrd via the search field r drpdwn menu. 2. Enter the emplyees pay. a. If the fringe benefit deductin/earning cde was nt set up t blck FITW & SITW at the cmpany level, prceed t #3. If the fringe benefit was set up t blck FITW & SITW, prceed t #5. Cpyright 2017 Paylcity. All Rights Reserved. Page 23

24 3. Click View Check Details and recrd the FITW & SITW withhlding amunts. 4. Click Return t Payrll t navigate back t the detail page. In the Line Items sectin, use the Earn/Ded/Tax drpdwn menu and select TFITW and T+ state cde (e.g. TIL fr Illinis). Enter the dllar amunt f the taxes nted frm the View Check Details screen (abve) in the amunt clumn. 5. Select the fringe benefit earning cde using the Earn/Ded/Tax drp dwn menu. Enter the reprtable fringe benefit amunt in the Amunt clumn. Cpyright 2017 Paylcity. All Rights Reserved. Page 24

25 Reprting the Taxable Value f Fringe Benefits withut Wages T reprt fringe benefits fr an emplyee after their final wages fr the tax year have been reprted, the emplyer will pay the taxes fr the taxable benefit amunt. 1. Access the Payrll > Check Calculatr page and navigate t the applicable emplyee recrd via the search field r drpdwn menu. 2. Within the Setup tab, using the drpdwn menus, select Create a Check fr the Mde and Blck All Incme Tax Withhlding fr Taxatin. 3. Click the Fringe Benefit Grss-Up radi buttn. Enter the Fringe amunt and chse the earning cde via the Fringe Earnings Cde drp dwn menu. Use the Tax Offset Earnings cde drpdwn menu t select the earning cde t recrd the amunt f the taxes t be added t the grss pay t accmmdate fr the tax withhlding (typically REG - REGULAR). Cpyright 2017 Paylcity. All Rights Reserved. Page 25

26 4. Click the Preview/Summary tab t verify the grss amunt reflects the fringe benefit amunt, plus the value f the taxes and the net pay is zer. 5. Click the Save/Print tab and verify that the Save/Print radi buttn is selected. Update the Date On Check, Perid Begin, and Perid End fields as necessary. Use the Accunt drpdwn menu t make an adjustment if applicable. Enter a check number greater than zer (n check will be printed). Click Save Only and an entry will be added t the VM batch fr prcessing with the next scheduled check date. Types f Third-Party Sick Pay Taxability f third-party sick pay is based n tw main factrs: 1. The prtin f the premium paid by the emplyer: The taxable prtin f the third-party sick pay distributin is directly prprtinal t the percentage f the premium paid by the emplyer. Fr example, if the emplyer pays 75% f the premium and the emplyee receives a $1, third-party sick pay distributin, $750 is taxable t the emplyee. Cpyright 2017 Paylcity. All Rights Reserved. Page 26

27 2. Length f time the emplyee has been n disability: Earnings are fully taxable fr nly the first six mnths f the benefit. Nte: See belw fr Lng Term Disability (LTD). Nn-Taxable Benefits: The nn-taxable prtin f the benefit is listed in Bx 12 f the emplyees W-2 and nt included in any f the wage r withhlding bxes. Shrt-Term Disability: Disability payments are made t an emplyee within the first six mnths f leave. Benefits are fully taxable. Wages and withhldings will be displayed in the apprpriate bxes n the W-2. The emplyer is respnsible fr depsiting and reprting the emplyer prtin f Scial Security, Medicare, and federal and state unemplyment taxes. The third-party insurer is respnsible fr depsiting and reprting the emplyee prtin f Scial Security and Medicare, as well as any elective federal r state withhlding (as requested by the emplyee). Lng-Term Disability: Disability payments are made t an emplyee n leave mre than six mnths. After six mnths, payments becme exempt frm Scial Security and Medicare, as well as any federal r state unemplyment taxes. Wages remain taxable fr federal and state withhlding and are reprted n the W-2 in the apprpriate bxes. The third-party insurer is respnsible t make elective federal and state withhlding payments. If yur plan differs in its definitin f lng-term disability, the taxability may als differ. Please cntact yur accuntant t ensure accurate Year End reprting. Third-Party Sick Pay Entry Enter the figures int the third party sick pay screen. Prir t inputting third party sick pay, verify the amunts were nt previusly reprted t Paylcity. T verify, view the Emplyee Inf > Pay > Check Histry page fr the emplyee(s). 1. Access the Payrll > Third-Party Sick Pay page. 2. Select either Cmbined Scial Security and Medicare Amunts r Separate Scial Security and Medicare Amunts based n hw the thirdparty insurer prvided the figures. 3. If Scial Security and Medicare amunts are cmbined, enter that amunt in the Ttal field. Once the amunt is entered and yu click away frm the field, the Scial Security and Medicare figures autmatically ppulate their respective fields. If the figures are prvided separately, enter each amunt in their respective fields. Cpyright 2017 Paylcity. All Rights Reserved. Page 27

28 4. Once FICA (Scial Security and Medicare taxes cmbined) is entered, the taxable wages based n the FICA amunt entered will display underneath the Taxable Wages sectin. This figure shuld match the taxable wages prvided by the third-party administratr. Enter this amunt in the Taxable field, any nn-taxable prtin in the Nn-Taxable field and nn-taxable lng-term prtin in the Lng-Term Nn-Taxable field. 5. Althugh rare, if ther taxes were withheld, select the apprpriate Tax Cde frm the drpdwn within the Additinal Taxes Withheld sectin and enter the taxes withheld in the Amunt Field. 6. Click Save, r t reprt anther third-party sick pay disbursement, click Save & Add New. If the entry des nt balance yu will receive a warning message indicating an ut f balance. Reprting the Cst f Healthcare Expenses The Affrdable Care Act (ACA) requires emplyers t reprt the cst f 2017 emplyer-prvided health cverage. This can be accmplished with the fllwing prcedure in Web Pay. 1. Access the Cmpany > Setup page. Click the Payrll tab t view the Earnings page. Cpyright 2017 Paylcity. All Rights Reserved. Page 28

29 2. At the bttm f the Earnings page, click Add. 3. In the Earning Cde field, enter a five-character cde fr the earning. 4. In the Descriptin field, enter a name fr the cde (e.g. Emplyer Medical Exp). 5. Via the Earning Type drpdwn menu, select Mem - Mem: Generic Nn-Calc Field. 6. Via the W2 Bx drpdwn menu, select the 12DD Emplyer cst f Health Insurance cde. 7. Select Yes r N frm the Print n Check Stub? drpdwn menu. 8. Click Save & Return t cmplete the setup and return t the main Earnings page. 9. Add the apprpriate amunts fr each emplyee. Yu may add the amunt as a ne-time ttal fr the year as shwn belw, r yu may add a specific amunt per pay perid as a mem earning cde that will ttal the crrect amunt by Year End. Cpyright 2017 Paylcity. All Rights Reserved. Page 29

30 Emplyee Paid Amunts Fr existing, relevant emplyee deductin cdes, simply assign them t bx 12DD n the cmpany level: Cmpany > Setup > Payrll > Deductins. 1. Click n the deductin cde. 2. Select 12DD Emplyer cst f Health Insurance frm the W2 bx drp dwn menu. 3. Click Save. Web Pay will autmatically add the amunts withheld frm emplyee pay t the amunts entered as emplyer paid and display that ttal in bx 12DD. Nte that nly amunts entered int Web Pay will display. Any histrical amunts frm ther prcessing systems are required t be added manually t display n the W-2. Additinal Resurces Access the Year End Infrmatin sectin f the Paylcity Resurce Dcuments page fr mre resurces. Cpyright 2017 Paylcity. All Rights Reserved. Page 30