Quarter Processing: How Special Compensation Impacts Quarter End

Transcription

1 Quarter Processing: How Special Compensation Impacts Quarter End Handout Manual Need support after training? To exchange tips and best practices with fellow users, get on The Bridge an online community built exclusively for ADP clients. V _3NH Copyright ADP, LLC

2 ADP Trademarks ADP, the ADP logo, ADP A more human resource, The Bridge Sponsored by ADP & Bubble Talk Design, and ADP Workforce Now are registered trademarks of ADP, LLC. All other trademarks and service marks are the property of their respective owners. Copyright ADP, LLC. ADP Proprietary and Confidential All Rights Reserved. These materials may not be reproduced in any format without the express written permission of ADP, LLC. Any repurposing, reposting, or other use of this content (including but not limited to YouTube or any other social media) is expressly prohibited. ADP provides this publication "as is" without warranty of any kind, either express or implied, including, but not limited to, the implied warranties of merchantability or fitness for a particular purpose. ADP is not responsible for any technical inaccuracies or typographical errors which may be contained in this publication. Changes are periodically made to the information herein, and such changes will be incorporated in new editions of this publication. ADP may make improvements and/or changes in the product and/or programs described in this publication at any time without notice. Published by ADP Enterprise Learning May 2018

3 PREFACE Contents Quarter Processing: How Special Compensation Impacts Quarter End Course Introduction... 5 Course Purpose... 5 Course Objectives... 5 Course Agenda... 5 Accessing Quarter and Year-End Topics on The Bridge Job Aid... 6 Follow-Up Items... 7 Third-Party Sick Pay... 8 Overview... 8 What Is Third-Party Sick Pay?... 8 Taxability... 8 Explore: Master Control... 8 Explore: Wage & Tax Register... 9 How to Enter... 9 Tax Grids Overview What Is a Tax Grid? Taxability Explore: Master Control, Company Options Page Explore: Master Control, Detail Page Explore: Wage & Tax Register Tax Grids and the Effects on Payroll and Quarterly Reports How to Enter Group Term Life Overview What Is Group Term Life? Taxability Explore: Master Control Explore: Wage & Tax Register How to Enter Health Savings Accounts Overview What Is a Health Savings Account? Copyright ADP, LLC iii V _3NH

4 PREFACE Annual Limits Taxability Explore: Master Control Explore: Wage & Tax Register How to Enter Deferred Compensation Overview What Is Deferred Compensation? Catch-Up Contribution Plan Provisions Taxability Explore: Master Control Explore: Wage & Tax Register How to Enter Taxable Fringe Benefits Overview What Are Taxable Fringe Benefits? Taxability Explore: Master Control Explore: Wage & Tax Register How to Enter Form W-2, Box 13 Retirement Plan/Qualified Pension Indicator Overview What Is the Form W-2, Box 13 Retirement Plan/Qualified Pension Indicator?.. 25 What Is a Qualified Pension Plan? Company Setup Explore: Master Control, Company Options Page Explore: Master Control, Detail Page Explore: Wage & Tax Register How to Enter Knowledge Check Course Closing Continuing Education Credits Training Evaluation Quarter Processing: How Special Compensation Impacts Quarter End (34586_3) Copyright ADP, LLC iv V _3NH

5 Course Introduction Course Purpose This course introduces you to special compensation options and describes where they are displayed on payroll and tax reports and entered in the payroll system, providing you with the tools and knowledge necessary to successfully close each quarter. Course Objectives Upon completing this course, you will be able to do the following: Identify selected special compensation options. Determine the taxability of selected special compensation options. Determine how to enter special compensation options in payroll. Identify how a special compensation option is displayed on the Master Control and Wage & Tax Register. Course Agenda This course includes the following topics: Third-Party Sick Pay Tax Grids Group Term Life Health Savings Accounts Deferred Compensation Taxable Fringe Benefits Form W-2, Box 13 Retirement Plan/Qualified Pension Indicator Copyright ADP, LLC 5 V _3NH

6 Accessing Quarter and Year-End Topics on The Bridge Job Aid Overview You can access these topics and more on the Bridge (TheBridge.adp.com) Instructions Step Action 1 On The Bridge Homepage, click Topics. Then select Year-End & Quarter-End. 2 On the Quarter and Year End page, click WFN Year-End Hotspot. 3 On the WFN Year-End Hotspot page, click Quarter-End Reminders. Copyright ADP, LLC 6 V _3NH

7 Follow-Up Items List any follow-up items that you may need to discuss with your client support specialist or implementation specialist: Copyright ADP, LLC 7 V _3NH

8 Third-Party Sick Pay Overview In this topic, you will learn how third-party sick pay is displayed on the Master Control and Wage & Tax Register and where it is entered in your payroll application. What Is Third-Party Sick Pay? Third-party sick pay is a benefit in which an employee receives compensation from a third party, such as an insurance provider, union plan, or the state for a non-job-related injury or short-term illness. After a six-month period, payments are no longer considered short term, but are considered long-term disability, which has different taxing implications. Taxability Employee Employer FIT SS/Med SIT SUI/SDI Local SS/Med SUI/SDI FUTA Yes Yes Varies Varies Varies Yes Varies Yes Explore: Master Control Literals and Descriptions Literal 3PSPTXBL 3PSPSS 3PSPMED 3PSPNTXB 3PSPFIT Description Taxable portion of third-party sick pay Social Security tax on third-party sick pay Medicare tax on third-party sick pay Nontaxable portion of third-party sick pay Federal tax on third-party sick pay Copyright ADP, LLC 8 V _3NH

9 Explore: Wage & Tax Register Important Information ADP is not responsible for calculating third-party sick pay or determining the taxability. The employer, based on information provided by the insurance carrier, determines what is considered taxable and nontaxable. Do not enter third-party sick pay information for more than six months. After the six-month period, the payments are considered long-term disability. If you need to enter state or local taxes as part of your third-party sick pay information, contact your ADP service team. Copyright ADP, LLC 9 V _3NH

10 Tax Grids Overview In this topic, you will learn about tax grids and how earnings or deductions are displayed on the Master Control and Wage & Tax Register. In addition, you will learn about the effects a tax grid has on payroll and quarterly tax reports. What Is a Tax Grid? Tax grids allow selected deductions, gross earnings, or a portion of earnings to be exempt from a specific tax or taxable. You are responsible for determining the taxability of specified moneys. ADP requires a letter stating which types of earnings are exempt from which taxes and the reasons they are exempt. Taxability A tax grid can be set up so that certain earnings or deductions are exempt from any or all combinations of the following taxes and taxables: Federal, state, and city withholding tax and taxable SUI/SDI tax and taxable Second state and second city withholding tax and taxable FUTA taxable Social Security and Medicare tax and taxable Explore: Master Control, Company Options Page Copyright ADP, LLC 10 V _3NH

11 Explore: Master Control, Detail Page Literals and Descriptions: Accumulations to Date Section Literal XFIT XSS XSSER XMED XMEDTXBL XState 1 XState 2 XSUI/DI EE XSUI/DI ER XLocal 1 XLocal 2 Description Exempt from federal income tax Exempt from employee Social Security tax and taxable Exempt from employer Social Security tax Exempt from Medicare tax and taxable Exempt from Medicare taxable Exempt from state 1 income tax Exempt from state 2 income tax Exempt from employee SUI tax, SDI tax, or both Exempt from employer SUI tax, SDI tax, or both Exempt from local 1 income tax Exempt from local 2 income tax Copyright ADP, LLC 11 V _3NH

12 Explore: Wage & Tax Register Tax Grids and the Effects on Payroll and Quarterly Reports X In Description Effect on Payroll Effect on Quarterly Reports Federal Tax Exempt federal tax and taxable No federal tax or taxable calculated Excludes total wages from line 2 on Form 941 and FIT wages on the Wage & Tax Register State 1 Tax Exempt state tax and taxable No state tax or taxable calculated Excludes state wages, local wages, or both on the Wage & Tax Register and Quarterly Wage Report (depending on the state) Local 1 Tax Exempt city tax and taxable No city tax or taxable calculated Excludes data from the Wage & Tax Register SUI/SDI Tax Exempt SUI tax (SDI) No SDI calculated; no SDI taxable Excludes SDI taxable wages on the Wage & Tax Register State 2 Tax Exempt second state tax and taxable No state 2 tax or taxable calculated Excludes state 2 wages, local wages, or both on the Wage & Tax Register and Quarterly Wage Report (depending on the state) Local 2 Tax Exempt second city tax and taxable No city 2 tax or taxable calculated Excludes data from the Wage & Tax Register FUTA Taxable Exempt FUTA taxable No FUTA taxable Excludes data from the FUTA Taxable column on the Wage & Tax Register SUI/SDI Taxable Exempt SUI taxable No SUI taxable Excludes data from the Total Wages column on the SUI reports and the Wage & Tax Register and from the SUI taxable total on the Wage & Tax Register Soc Sec Exempt Social Security and Medicare taxable No Social Security and Medicare taxable (employer and employee) Excludes data from line 6 and line 7 on Form 941 Medicare Exempt Social Security and Medicare tax No Social Security and Medicare tax calculated Excludes data from the Social Security and Medicare Wages columns on the Wage & Tax Register Copyright ADP, LLC 12 V _3NH

13 How to Enter To enter your tax-grid information, follow these instructions. Instructions Step Action 1 Add the gridded earnings or deduction code to your validation tables. 2 Enter the gridded earnings or deduction amounts in your paydata. Copyright ADP, LLC 13 V _3NH

14 Group Term Life Overview In this topic, you will learn about group term life and how it is displayed on the Master Control and Wage & Tax Register and where it is entered in your payroll application. What Is Group Term Life? Group term life (GTL) is life insurance that accrues no cash value and is paid for fully or in part by the employer. The employer-paid portion of the premium for insurance coverage over $50,000 is considered taxable income to the employee. Taxability Employee Employer FIT SS/Med SIT SUI/SDI Local SS/Med SUI/SDI FUTA Yes Yes Varies Varies Varies Yes Varies No Explore: Master Control Copyright ADP, LLC 14 V _3NH

15 Explore: Wage & Tax Register How to Enter You can enter GTL in one of two ways, depending on whether you or ADP calculate the amount. Entry Methods and Descriptions Entry Method Automated GTL Memo code Description A feature within the ADP system that automatically calculates GTL. No other entry is required because the amount is reported every payroll. Enter the GTL dollar amount in paydata as a memo entry. Important Information GTL must be processed on a live check to collect the Social Security, Medicare, and SUI/SDI associated with the GTL amount. When you terminate an employee, post the GTL premium amount to your payroll at that time unless it has already been posted each payroll period to date. The coding and posting of group term life amounts vary by company. If you are uncertain about your company setup, contact your ADP service team for entry instructions. Copyright ADP, LLC 15 V _3NH

16 Health Savings Accounts Overview In this topic, you will learn about health savings accounts and how they are displayed on the Master Control and Wage & Tax Register. What Is a Health Savings Account? A health savings account (HSA) is an alternative to traditional health insurance. It is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. You must be covered by a high-deductible health plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than what traditional health care coverage costs, so you can put the money that you save on insurance into a health savings account. Benefits Health savings accounts provide the following benefits: You own and control the money in your HSA. You can set up the account for direct deposit. Decisions on how to spend the money are made by you without relying on a third party or health insurer. You decide what types of investments to make with the money in the account in order for it to grow. You have triple tax savings. Funds remain in the account from year to year. There are no "use it or lose it" rules. Contribution Types and Descriptions Contribution Type Employee contribution Employee salary reduction contribution (cafeteria 125 plan) Employer contribution Description A contribution where the employee's taxable income is not reduced by the amount of the HSA deduction. The employee can claim the HSA deduction on his or her Form 1040 and must complete Form A contribution where the employee can choose to have his or her taxable income reduced by the amount of the HSA deduction. The employee cannot claim the HSA deduction on his or her 1040 and must complete Form Note: By law, the employee salary reduction contribution is considered an employer contribution under a cafeteria 125 plan because it is an employer-provided plan in which the employee can choose to have the employer reduce his or her salary. The employer contributes to the employee's health savings account outside of payroll. Note: On Form W-2, Box 12 will display a W for the combined total of employee salary reduction contributions (cafeteria 125 plan) and employer contributions. Copyright ADP, LLC 16 V _3NH

17 Annual Limits Type Rate Maximum annual contributions Self-only: $ Family: $ Maximum annual catch-up contribution* Self-only: $ Family: $ Minimum annual deductibles Self-only: $ Family: $ Maximum out-of-pocket expenses Self-only: $ Family: $ *Note: Only employees who are aged 55 years or older by the end of the calendar year qualify for the catch-up plan. Taxability HSA Type Employee contribution Employee salary reduction contribution (cafeteria 125 plan) Employer contribution Taxability Contributions are generally taxable for all jurisdictions. Note: The employee can claim HSA amounts on Form 1040 and must complete Form Contributions are taxed as pretax section 125 cafeteria plan deductions. Note: The employee must complete Form Contributions are nontaxable to the employee. Copyright ADP, LLC 17 V _3NH

18 Explore: Master Control Explore: Wage & Tax Register Copyright ADP, LLC 18 V _3NH

19 How to Enter The method for entering an HSA depends on the type of contribution. Entry Methods and Descriptions Entry Method Employee contribution Employee salary reduction contribution (cafeteria 125 plan) Employer contribution Description Code employees with the appropriate permanent deduction code and a goal limit to stop the deduction when the contribution limit is met. Code employees with the permanent cafeteria 125 deduction code and a goal limit to stop the deduction when the contribution limit is met. Code employees with the appropriate memo code, and contact ADP to set up a special calculation to alert you when the contribution limit has reached its goal. Copyright ADP, LLC 19 V _3NH

20 Deferred Compensation Overview In this topic, you will learn about deferred compensation plans and how they are displayed on the Master Control and Wage & Tax Register. What Is Deferred Compensation? Deferred compensation is an employer-provided benefit plan in which an employee requests a voluntary reduction of gross pay. The employer takes the amount of the pay reduction and deposits it in an investment account. The employee has the benefit of reduced taxable gross income. Often, employers make contributions to the plan on behalf of their employees. Types, Descriptions, and Annual Limits Type Description Annual Limit 401(k) 403(b) Cash or deferred arrangements for nongovernment and nonexempt organizations with over 25 employees A salary reduction annuity for public schools or other tax-exempt organizations $ $ Catch-up* $ 408(k) 408(p) Simple A salary reduction for a simplified employee pension like a 401(k) but for 25 or fewer employees Applicable to employers with 100 or fewer employees who received at least $5,000 in compensation in the previous year Note: Another type of employer-sponsored retirement plan is not allowed. $ Catch-up* $ $ Catch-up* $ $ Catch-up* 457 Similar to 401(k); used by state and local governments 501(c) Note: Employees can choose only one catch-up plan. The new catch-up plan is not applicable for the last three years before retirement. Used by tax-exempt organizations, such as hospitals and churches $ $ Catch-up* $ *Note: Only employees who are aged 50 years or older by the end of the calendar year qualify for the catch-up plan. Copyright ADP, LLC 20 V _3NH

21 Catch-Up Contribution Plan Provisions Participants in 401(k), 403(b), 408(k), 408(p), or 457 plans who are aged 50 and over will be permitted to contribute an additional pretax amount (catch-up contribution). The otherwise applicable contribution limit on elective deferrals is replaced with a higher limit for such individuals. It is an optional provision that is decided by the employer. Another important part of catch-up provisions is to determine the states that follow these new catch-up contribution limits for the purpose of determining taxable wages for state income tax. Taxability Employee Employer FIT SS/Med SIT SUI/SDI Local SS/Med SUI/SDI FUTA No Yes Varies Varies Varies Yes Varies Yes Explore: Master Control Copyright ADP, LLC 21 V _3NH

22 Explore: Wage & Tax Register How to Enter Many deferred compensation deductions are handled using an ADP special calculation that automatically calculates the deduction amount based on a percentage of earnings. Because most plans allow employees to contribute various percentages, a calculation percentage is set up for each employee participating in the plan. Verify with your ADP service team how your company is set up before you make any payroll entries. Copyright ADP, LLC 22 V _3NH

23 Taxable Fringe Benefits Overview In this topic, you will learn about taxable fringe benefits and how they are displayed on the Master Control and Wage & Tax Register. What Are Taxable Fringe Benefits? Taxable fringe benefits are employer-provided, noncash payments other than wages that the IRS considers taxable. Fringe benefits must be part of normal pay. They are first added to earnings and then deducted from net pay. The system determines the amount of taxes due by calculating the ratio of the fringe benefit to the total wages. Taxable fringe benefits are not directly related to running the business but are provided for the employee s personal benefit. Common examples include the following: Awards Automobiles (personal use) Below-market interest rate on loans Flights on company planes Free or discounted flights on commercial airlines Vacations Memberships in health, country, or social clubs Tickets to entertainment events Gift cards To learn more about taxable fringe benefits, see IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits at Taxability Employee Employer FIT SS/Med SIT SUI/SDI Local SS/Med SUI/SDI FUTA Yes Yes Varies Varies Varies Yes Yes Yes Copyright ADP, LLC 23 V _3NH

24 Explore: Master Control Explore: Wage & Tax Register How to Enter You must include the value of the taxable fringe benefit as part of earnings. The process is as follows: The value of the benefit is added to earnings. The total earnings, including the fringe benefit, are taxed. The benefit is deducted from net pay so that the employee does not receive the value of the benefit in his or her pay. In ADP Workforce Now, on the paydata grid, enter the amounts in the coded earnings column and the corresponding deduction column. Copyright ADP, LLC 24 V _3NH

25 Form W-2, Box 13 Retirement Plan/Qualified Pension Indicator Overview In this topic, you will learn about Box 13 on Form W-2 and how that information is displayed on the Master Control and Wage & Tax Register. What Is the Form W-2, Box 13 Retirement Plan/Qualified Pension Indicator? The Retirement Plan indicator is a check box in Box 13 of Form W-2. When selected, this check box shows whether an employee was an active participant in your company s retirement plan during any part of the year. This check box should be selected if the employee was an active participant in a qualified pension plan. What Is a Qualified Pension Plan? A pension plan is a type of retirement plan that is established by an employer for the employee s benefit. A pension plan is considered qualified when it meets the IRS guidelines for favorable tax treatment. For example, a deferred compensation plan is a qualified pension plan because employees can contribute to their pension on a pretax basis. Company Setup ADP will automatically select the Retirement Plan check box on Form W-2 for employees with year-to-date amounts for the following deferred compensation plans: 401(k) 403(b) 408(k) 408(p) 501(c) A company-level default is used to control whether the Retirement Plan check box is selected for employees who do not have year-to-date deferrals in these compensation plans. Company Defaults and Effects on Form W-2 Company Default Effect on Form W-2 Yes No Employee The Retirement Plan check box is selected for employees unless you override an employee's coding. The Retirement Plan check box is left blank for employees unless you override an employee's coding. The Retirement Plan check box is selected or left blank based on each employee s coding. Copyright ADP, LLC 25 V _3NH

26 Explore: Master Control, Company Options Page Company Defaults and Displays Company Default Yes No Employee Display on Master Control, Company Options Page "Company Has Qualified Pension" is displayed. "Company Does Not Have Qualified Pension" is displayed. No message is displayed. Explore: Master Control, Detail Page Company Defaults and Displays Company Default Yes No Employee Display on Master Control, Detail Page No message is displayed. Note: If you override an employee's coding, "No Qualified Pension" will be displayed. No message is displayed. Note: If you override an employee's coding, "Qualified Pension" will be displayed. Depending on the employee s coding, "Qualified Pension" or "No Qualified Pension" will be displayed. Copyright ADP, LLC 26 V _3NH

27 Explore: Wage & Tax Register Important Information If an employee's Qualified Pension field displays "Yes" because of the company default setting or employee-level coding but that employee has no year-to-date wages, a blank Form W-2 will be produced with an X in the Box 13 Retirement Plan check box. Copyright ADP, LLC 27 V _3NH

28 How to Enter ADP will automatically select the Retirement Plan check box when the following occurs: Your employees make elective deferrals to qualified plans during the year and your company is set up with any of the three company-level defaults. Your employees do not have year-to-date deferrals and your company is set up with the Yes company default. ADP will not select the Retirement Plan check box if your employees do not have year-to-date deferrals and your company is set up with the No company default. You can make selections for individual employees by overriding the Yes or No company default. If your company is set up with the Employee company default, you will need to code individual employees. Instructions: Overriding the Yes or No Company Default If the Company Default Is And the Employee s Retirement Plan Check Box Should Be Then No Selected If You Use Then The current version of ADP Workforce Now 1. Select People > Pay > Tax Withholdings > Federal/W4. 2. In the Other Codes section, in the W-2 Box 13 Retirement Plan/Qualified Pension field, select Checked. The previous version of ADP Workforce Now 1. Select Payroll > Employee > Taxes > Federal/W4. 2. In the Other Codes section, in the Box 13 Qualified Pension field, select Checked. A solution other than ADP Workforce Now Contact your ADP service team. Yes Left blank If You Use Then The current version of ADP Workforce Now 1. Select People > Pay > Tax Withholdings > Federal/W4. 2. In the Other Codes section, in the W-2 Box 13 Retirement Plan/Qualified Pension field, select Not Checked. The previous version of ADP Workforce Now 1. Select Payroll > Employee > Taxes > Federal/W4. 2. In the Other Codes section, in the Box 13 Qualified Pension field, select Not Checked. A solution other than ADP Workforce Now Contact your ADP service team. Copyright ADP, LLC 28 V _3NH

29 Instructions: Using the Employee Company Default If the Employee s Retirement Plan Check Box Should Be Selected Then If You Use The current version of ADP Workforce Now The previous version of ADP Workforce Now A solution other than ADP Workforce Now Then 1. Select People > Pay > Tax Withholdings > Federal/W4. 2. In the Other Codes section, in the W-2 Box 13 Retirement Plan/Qualified Pension field, select Checked. 1. Select Payroll > Employee > Taxes > Federal/W4. 2. In the Other Codes section, in the Box 13 Qualified Pension field, select Checked. Contact your ADP service team. Left blank Do nothing. Copyright ADP, LLC 29 V _3NH

30 Knowledge Check 1. From which taxes are 401(k) contributions exempt? a. Federal income tax b. Medicare c. Social Security d. Social Security and Medicare 2. What type of compensation does an employee receive if he or she has been out of work for five months with a non-job-related injury? a. Health savings account b. Group term life insurance c. Taxable fringe benefit d. Third-party sick pay 3. Premiums for group term life insurance over what amount are taxable to the employee? a. $30,000 b. $40,000 c. $50,000 d. $60,000 Copyright ADP, LLC 30 V _3NH

31 Knowledge Check (cont.) 4. How is a taxable fringe benefit entered in the payroll? a. Earnings only b. Earnings with an offset deduction c. Deduction only d. Reverse deduction 5. Which HSA contribution types will be displayed in Box 12 of Form W-2 with code W? a. Employee contribution and employee salary reduction contribution (cafeteria 125 plan) b. Employee contribution and employer contribution c. Employee salary reduction contribution (cafeteria 125 plan) and employer contribution 6. A terminated employee with no year-to-date wages received a Form W-2. What is the most likely reason the Form W-2 was produced? a. The employee's qualified pension indicator displays "Yes." b. The employee received third-party sick pay from an insurance provider. c. The employee is 50 years old and is eligible for making deferred compensation catchup contributions. Copyright ADP, LLC 31 V _3NH

32 Course Closing Continuing Education Credits ADP is an approved provider of recertification credit hours (RCHs) by the American Payroll Association (APA) and continuing professional education (CPE) credits by the National Association of State Boards of Accountancy (NASBA). Most ADP courses are eligible for RCHs and CPE credits. RCHs and CPE credits provide recognition for updating or broadening professional competencies and may be used to maintain certifications such as the Certified Payroll Professional (CPP), Certified Public Accountant (CPA), or the Society for Human Resource Management (SHRM). Professional organizations establish their own certification procedures, which are subject to change. Professional organizations often require documentation of class objectives, agenda, and duration, along with a certificate of completion. This information is provided at the end of your handout manual. At your request, your instructor will provide you with a certificate of completion at the end of this class. Copyright ADP, LLC 32 V _3NH

33 Training Evaluation Please take a moment to complete the evaluation. Copyright ADP, LLC 33 V _3NH

34 ADP Course Description Quarter Processing: How Special Compensation Impacts Quarter End (34586_3) Program Content This course prepares participants to use payroll and tax reports to verify special compensation options to successfully close each quarter. Topics include third-party sick pay; tax grids; group term life; health savings accounts; deferred compensation; taxable fringe benefits; and the Form W-2, Box 13 retirement plan/qualified pension indicator. Objectives Upon completing this session, participants will be prepared to do the following: Audience Identify selected special compensation options. Determine the taxability of selected special compensation options. Determine how to enter special compensation options in payroll. Identify how a special compensation option is displayed on the Master Control and Wage & Tax Register. This course is intended for those participants who are responsible for reconciling payroll each quarter. Prerequisites None Advance Preparation None Participant Materials Participants will need to download or print the Quarter Processing: How Special Compensation Impacts Quarter End handout manual and the Quarter Processing: How Special Compensation Impacts Quarter End reports manual before attending class. Method of Presentation Virtual class (VC), Group Internet Based Duration 1 hour, 30 minutes

35 Continuing Education Credits This course may be eligible for the following recertification credit hours (RCHs) and continuing professional education (CPE) credits: RCH: 1.5 CPE: 1.5 Note: ADP is unable to grant formal RCH and CPE credits to a participant logged on to class through a mobile device. For more information, see the Training Policy. In accordance with the standards of the National Registry of CPE Sponsors, CPE credits have been granted on a 50-minute hour. ADP, LLC, Employer Services, is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: In accordance with the American Payroll Association (APA), recertification credit hours (RCHs) apply to Certified Payroll Professional (CPP) and Fundamental Payroll Certification (FPC) credentials. Recommended Field of Study (NASBA) Specialized Knowledge and Applications Cost and Training Policy For information about course cost, registration, and cancellation policies, refer to the Training Policy. Learning Records and Privacy Policy Learner records are available on Learn@ADP within 24 hours after participants complete their training classes. To access learner records, refer to these instructions. View ADP's Privacy Policy on Learn@ADP. V _3VCNH Copyright 2018 ADP, LLC