Finance Manager: Payroll

Transcription

1 : Payroll W2 Processing The W2 Processing routine prepares the employee payroll information that is necessary for completing the W-2s. The routine encompasses five steps: Generate W2 History File, Edit W2 History file, Run W2 Proof Report, Print W2 Forms, and Create W2 File for submission to SSA. Preparing for W2 Processing Starting with Calendar Year 2012, employers are now required to report the total cost of employee health insurance benefits (reporting of employee dental and vision insurance benefits is optional). In order to properly set up benefits to report on Box 12 of the W-2 form, nvision Human Resources allows the user to flag reportable benefits via the Benefits Codes Setup routine. If employee benefit information is being maintained in nvision Human Resources (Employee Information Appointment Information Benefits tab), this step must be completed BEFORE W-2s are created in the W-2 Processing routine. To set the W-2 Box 12 Reportable Flag for Existing Benefit Records 1. In nvision Human Resources, open the Setup menutree. 2. Open the Codes and Types menutree. 3. Click the Benefits option. 4. Highlight the appropriate benefit provider record in the listing. 5. Enter Update mode. 6. Check the W-2 Box 12 Reportable box if the total cost of this benefit should be reported in Box 12, Code DD, on the employee W-2 form. Leave the field unchecked if the total cost of this benefit should not be reported on the W Save the record. nvision Copyright FINANCE MANAGER All rights reserved. 1

2 Verify the Earnings Code Setup Information To ensure that earnings are reported correctly on the employee W2 form, be sure to enter/verify the W-2 reportable box and code information in Earnings Code setup. This is critical for proper reporting of earnings on the W-2 form. Setup Codes Earnings Codes Enter Update mode and check that the W-2 Reportable Box is flagged correctly as N/A, 10, 12, or 14. In the W-2 Box Code field, be sure to indicate the proper code for earnings being reported in boxes 12 and 14. nvision Copyright FINANCE MANAGER All rights reserved. 2

3 Verify the Deduction Codes Setup Information To ensure that deductions are reported correctly on the employee W2 form, be sure to enter/verify the W-2 reportable box and code information in Deduction Codes setup. This is critical for proper reporting of deductions on the W-2 form. Setup Codes Deduction Codes Enter Update mode and check that the W-2 Reportable Box is flagged correctly as N/A, 10, 12, or 14 based on the Deduction Type. In the W-2 Box Code field, be sure to indicate the proper code for deductions being reported in boxes 12 and 14. nvision Copyright FINANCE MANAGER All rights reserved. 3

4 Access to W2 Processing 1. Open the Utilities menu tree. 2. Click the W2 Processing option. The W2 Processing window is displayed. All W2 related routines can be accessed from the buttons running horizontally across this window. Generate W2 History File To begin the W2 process, the W2 History file must be generated. This process actually creates the W2 records to work with for the calendar year. To generate these records, follow the steps below: 1. At the top of the W2 Processing window, use the drop-down to choose the appropriate calendar year for which to process W2 information. nvision Copyright FINANCE MANAGER All rights reserved. 4

5 2. Click. 3. On the Generation Options tab, select the employees to generate. Highlight one or multiple employees in the listing or check the Select All box to create the W2 File for All employees. 4. Click OK to generate the W2 history file for the year selected. Choose Yes at the Generate confirmation window. NOTE: If you have already generated, the following message is displayed: nvision Copyright FINANCE MANAGER All rights reserved. 5

6 Choose Yes at this prompt to overwrite any manual changes already made to the W2 file. Choose No to avoid overwriting any W2 file changes. If errors are found, the following message is displayed: To review the errors found, click OK. Click the Generation Results tab to list those employees with errors. Use the Error Type drop-down to display only Critical errors or All errors. Print out the error report so that it may be used as a reference later. To print the error report, click Click Finish after printing the report.. nvision Copyright FINANCE MANAGER All rights reserved. 6

7 Correct Any Errors Reported During History File Creation While there is an option to update W2 information, most errors should be corrected within the employee s check details by posting a check (a manual one if necessary) and leaving an audit trail of the correction. Once the check is posted, you must regenerate the employees W2 History file so the W2 area will reflect any changes. For examples, refer to the following pages. nvision Copyright FINANCE MANAGER All rights reserved. 7

8 COMMON ERRORS The following is a list of possible CRITICAL errors appearing on the error report created during the Generate W2 History File process. Negative Gross Wage Negative Fica Wage Negative Medicare Wage Negative Federal Wage Negative State Wage NYC Negative City Wage YON Negative City Wage Negative Fica Tax Negative Medicare Tax Negative Federal Tax Negative State Tax NYC Negative City Tax YON Negative City Tax Negative EIC Amount Negative Annuity 403(b) Negative Annuity 457(b) Negative Annuity Roth 403(b) Negative Retirement Amount Negative Dependent Care Amount Negative Non Cash Auto Amount Negative Flex Amount Negative Non Cash Other Amount Negative Reimbursement Amount Exceeded the FICA Wage Limit Exceeded the FICA Tax Limit FICA Tax Calculation Error Medicare Tax Calculation Error nvision Copyright FINANCE MANAGER All rights reserved. 8

9 These errors indicate that wages differ from some basic rules. In general: The FICA Wages should equal Medicare Wages UNLESS the employee has hit the FICA Wage limit of $110,100 for 2012 The Medicare Wages plus the Flex deduction amounts should equal the gross payroll, UNLESS you have employees exempt from Medicare The State Wages plus Annuity (403b/457) total should equal the Medicare Wages The Federal Wages plus the Retirement (414h) total should equal the State Wages Exceeded the FICA Wage Limit. The maximum FICA Wages for 2012 is $110,100. If any employee has FICA Wages over that amount, this error will occur. While nvision enforces the FICA wage limit set within its tax tables, this error may occur if a manual check is posted incorrectly or sometimes when a new site is entering calendar YTD amounts that when added to the current YTD in nvision, cause the total FICA wages to exceed the limit. This can be corrected by entering a check to reduce the FICA wage amount and refunding FICA overpayment. CITY Wages are not correctly calculated This error can occur if employee(s) moved into, or out of a city (e.g., NYC or Yonkers) that collects city income tax. If you have had an employee move OUT of a city that collects income tax, you will need to enter the city on their W2 Info, after generating the W2 History File. Flags not properly set The current exemption flags on a deduction code (e.g., FLEX or ANNUITY) for an employee s check are not correct. In addition, this error can also occur if a deduction code somehow no longer exists for a deduction that is on the check specified. Previous versions of Finance Manager allowed the user to change the code which could cause this to happen. By simply adding the missing deduction code back into the deduction code table, the problem should be resolved. nvision Copyright FINANCE MANAGER All rights reserved. 9

10 Commonly Asked Questions 1. FLEX amounts (Other than Dependent Care) are NOT typically printed on the W2s. This means that an employee s actual total gross may not be reflected on the W2 if the employee had a flex deduction. 2. Deductions for 414h and Tax Sheltered Annuity plans should only be refunded through payroll when refunding within the calendar year the contributions were originally taken in. Any refund for prior calendar year 414h contributions should be refunded through accounts payable and a 1099R issued. 3. Remember to enter all Non Cash benefits. This can be done on one of the employee s checks anytime during the year or on a manual check at the end of the year. 4. If there is a negative retirement, flex deduction or annuity, the instructions below can be used to assist in correcting the records a. Enter a manual check for the employee(s) affected b. Both the check date and the post date should be 12/31/12 c. The Gross should be zero, the Net is a negative amount equal to the negative deduction (Do not enter any earnings) d. On the Deductions tab, Add the deduction originally refunded with a positive amount for the amount that the deduction was negative for in the calendar year e. On the Check tab, make any necessary adjustments to wages and/or withholdings f. Remember to POST the check from the Payroll Checks area g. Regenerate the employees W2 in the W2 Processing area h. If this negative amount is a result of a refund of 414H contributions from a prior calendar year (before January 2012), a 1099R should be issued for the amount not in the current calendar year. Remember that all Voluntary Retirement Deductions for ERS/TRS Tier 1 and 2 members (i.e., TRS-VOL) should be set as Before Tax Deductions with NO Exemptions. nvision Copyright FINANCE MANAGER All rights reserved. 10

11 Re-Create the W2 History File (See Generate W2 History File) This step is ONLY necessary if any additional payroll information (such as a check to correct an error) has been entered into nvision Payroll for the calendar year being worked on after generating the W2 History File. You can regenerate one employee or all employees. Editing Information in the Employee W2 Detail Record To edit the W2 detail record, choose the appropriate calendar year from the drop-down. Highlight the employee from the W2 Processing window listing and enter Update mode. Use this window to update the W2 record. This option is typically used only when you had an employee move out of a city that collects tax. NOTE: Modifications made here WILL BE LOST if the W2 History Files are generated again. nvision Copyright FINANCE MANAGER All rights reserved. 11

12 To Update the W2 Record: 1. Modify the W2 information as needed. Box 12 Codes and Explanations: Code C Taxable benefit of group term-life insurance over $50,000. Code E Non-taxable elective salary deferrals to a 403(b) retirement plan. Code G Non-taxable elective salary deferrals and non-elective employer contributions to a 457(b) retirement plan. Code M Uncollected Social Security (FICA) tax on taxable group term life insurance over $50,000 for former employees. Code N Uncollected Medicare tax on taxable group term life insurance over $50,000 for former employees. Code Q Non-taxable combat pay. Code BB After-tax contributions to a Roth 403(b) retirement plan. Code DD - Reports the cost of health insurance provided through your employer. Code EE - After-tax contributions to a Roth 457(b) retirement plan offered by your employer. 2. If updating the city as specified above, in Box 20 - Locality Name, use the drop-down to choose the three letter city abbreviation (NYC for New York City or YON for Yonkers). 3. Save the record. NOTE: Be aware that if an employee has more than four different benefits reported in box 12 a second W-2 will be printed for that employee with the additional benefits. nvision Copyright FINANCE MANAGER All rights reserved. 12

13 W2 Proof Reports The W2 Proof Report lists, in detail or summary, all W2 related information (taxable wages, withholding, deductions affecting withholding, etc) for all employees with earnings for the selected calendar year. To generate the W2 Proof Report, click displays: at the top of the W2 Processing window. The following window To Generate the W2 Proof Listing: 1. Use the drop-down to select the calendar year for which to print the W2 information. 2. Use the drop-down to indicate whether to print a Detail or Summary report. The Detail Report provides information for each individual employee. The Summary Report simply provides grand totals for all employees. 3. Click. Sample reports are shown on the following pages. nvision Copyright FINANCE MANAGER All rights reserved. 13

14 Detail W2 Proof Listing nvision Copyright FINANCE MANAGER All rights reserved. 14

15 Summary W2 Proof Listing nvision Copyright FINANCE MANAGER All rights reserved. 15

16 Printing W2 Forms To create a.pdf file and print the W2 Forms, choose the appropriate calendar year from the drop-down and click at the top of the W2 Processing window. The W2 Printing window displays. To Print W2s: 1. Using the Form drop-down, choose the form being used to print W2s e.g., W2 Tiled, W2 Pressure Seal, etc. To view a blank form on-line, click. nvision Copyright FINANCE MANAGER All rights reserved. 16

17 2. Select the employees to be printed. Highlight one or multiple employees in the listing or check the Select All box to print W2s for All employees. 3. Click. Click to fit the W2 to the full window frame and enable scrolling. nvision Copyright FINANCE MANAGER All rights reserved. 17

18 4. After reviewing the contents of the.pdf file and all reports, load the W2 forms in the printer. Click the Print button at the top of the.pdf file. nvision Copyright FINANCE MANAGER All rights reserved. 18

19 Create File Prior to creating the W2 export file for submission to SSA, it is necessary to have appropriate W-2 Header Contact Information indicated. To Enter W-2 Header Contact Information: 1. Under the Tools drop-down menu, click System Options. Click the Payroll tab. 2. Click Update. 3. Enter the Contact Name, Phone (no hyphens), Extension, Fax (no hyphens), and Save the record. nvision Copyright FINANCE MANAGER All rights reserved. 19

20 To create the W2 export file for printing, use the drop-down arrow to select the appropriate calendar year. Click at the top of the W-2 Processing window. 1. The Contact Name, Phone, Extension, Fax, and fields default based on the information entered in the W-2 Header Contact Information section of the Payroll System Options. Verify that the contact information is correct. 2. Enter the User Identification. 3. Indicate the path and name of the W2 Export File. 4. Check the box only if you are including W-2C (Correction) forms. 5. Click OK nvision Copyright FINANCE MANAGER All rights reserved. 20