Visual Intelligence Portfolio. Payroll Year End Guide

Visual Intelligence Portfolio Payroll Year End Guide 2018-2019

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Table of Contents Important Year End Notations...5 Close the 2018 Tax Year...6 STEP A: CONFIGURE FRINGES... 6 STEP B: POST ALL PAYROLL PERIODS WITH A 2018 CHECK DATE... 6 STEP C: RUN PAYROLL REGISTER REPORTS... 6 Process the First Payroll Period(s) with a 2019 Check Date...7 STEP A: OPEN THE 2019 ACCOUNTING YEAR... 7 STEP B: CHANGE THE PAYROLL SYSTEM MONTH AND YEAR... 7 STEP C: UPDATE FICA LIMIT AND TAX TABLES... 7 STEP D: IF YOU HAVE PAYROLL PERIOD(S) WITH A 2018 ENDING DATE AND A 2019 CHECK DATE, COMPLETE THIS STEP... 7 Process the First Payroll Period(s) Ending in 2019 (This may not be your first payroll period w ith a 2019 check date.)...8 STEP A: ALLOW PRE-USE OF ACCRUALS... 8 STEP B: CHANGE THE BALANCE VALIDATION FOR ACCRUALS... 8 STEP C: PROCESS THE FIRST PAYROLL PERIOD(S) WITH A 2019 ENDING DATE... 9 STEP D: TRANSFER ACCRUAL BALANCES... 10 STEP E: VERIFY OPENING ACCRUAL BALANCES... 11 STEP F: PRINT/EMAIL CHECKS/DIRECT DEPOSIT STUBS... 12 STEP G: DISABLE PRE-USE OF ACCRUALS... 12 STEP H: CHANGE THE BALANCE VALIDATION FOR ACCRUALS... 12 Important W-2 Notations... 14 Process W-2s... 16 STEP A: RECORD EMPLOYER S HEALTH CARE COSTS... 16 STEP B: PREPARE DEDUCTIONS FOR W-2s... 16 ii

STEP C: ADD A W2 YEAR... 18 STEP D: PREPARE THE W2 YEAR... 19 STEP E: VERIFY W2 DETAILS... 19 STEP F: CORRECT/ADD W2 DETAILS... 20 STEP G: VERIFY W2 DETAILS... 20 STEP H: PREPARE HEALTHCARE ONLY... 20 STEP I: PRINT W-2s... 21 STEP J: CREATE ELECTRONIC FILE... 22 Appendix A: Fringe Definitions and Fringe Cycles... 24 Adding a Fringe Cycle... 24 Adding a Fringe Definition... 24 Adding Employees to a Fringe... 24 Manually Entering Health Care Costs on the Employee Screen... 26 Manually Entering Health Care Costs on the Employee Health Insurance Grid... 26 Importing Health Care Costs on the Employee Health Insurance Grid... 27 OPERS Non-Contributing List... 28 Other Considerations... 30 iii

H A P P Y HOLIDAYS! iv

Important Year End Notations Below is a list of important guidelines to review before getting started: 1. For users live on General Ledger, all payroll periods with a 2018 check date must be posted prior to closing the 2018 Accounting Year. 2. The Accrual Date for ACCRUALS is the payroll period ending date. Therefore, all yearly accruals that accrue at the beginning of the calendar year should accrue with the first payroll with a 2019 ending date. 3. Unlike the egov system, W-2 processing in Visual Intelligence can be done at any time as long as all payroll periods with a 2018 check date have been posted. Assuming you meet the IRS deadlines, there is no urgency to complete the steps outlined in the Process W-2s section. 5

Close the 2018 Tax Year STEP A: CONFIGURE FRINGES Fringes are non-wage taxable benefits. In Visual Intelligence, HSA Employer Contribution is also configured as a fringe for W-2 reporting purposes. 1. If fringes still need to be processed for 2018, configure the fringes prior to calculating your final payroll period(s) with a 2018 check date (Step B). If you need assistance configuring employee fringes, please reference Appendix A. STEP B: POST ALL PAYROLL PERIODS WITH A 2018 CHECK DATE 1. If necessary, process fringes by linking the Fringe Cycle(s) to the payroll period. The Fringe Cycle(s) must be linked prior to calculating. Fringe reports to review prior to posting: o Fringe Lines for Payroll Period (Payroll > Report > Formatted Reports) o Annual Fringe Report (Payroll > Report > Formatted Reports) 2. Post all payroll periods with a 2018 check date (this includes Monthly, Quarterly, and Annual payrolls). TIP: To show all the deductions on the paystub, including those that are no longer being taken Navigate to: Payroll Configure Payroll System Expand the Pay Stub section by clicking the Show Zero Deductions should be checked ( ) in the deductions area STEP C: RUN PAYROLL REGISTER REPORTS 1. Navigate to Payroll > Report > Payroll Registers. 2. Click the Add button. 3. Select 12/31/2018 for the As Of Date. 4. Enter 2018 YTD for the Description. 5. Click the Save & Close button. 6. Select the Prepare function. 7. Click the OK button to acknowledge the prompt. 8. Wait for the system to prepare the data. 9. From the Show in Report dropdown, run the Employee Annual Summary and Register Month Quarter Year to Date. 10. Review the year to date activity for all employees. 11. Run period end reports, as desired. 6

Process the First Payroll Period(s) with a 2019 Check Date STEP A: OPEN THE 2019 ACCOUNTING YEAR For users live on General Ledger, the Accounting Year (2019) and Accounting Month (Period #01) must be open prior to posting the first payroll period with a 2019 check date. STEP B: CHANGE THE PAYROLL SYSTEM MONTH AND YEAR 1. Navigate to Payroll Configure Payroll System. 2. Select the Change Payroll Month function at the top of the screen. 3. Change the Current Month to 1 and the Current Year to 2019. 4. Click the OK button. S STEP C: UPDATE FICA LIMIT AND TAX TABLES Update the FICA (Social Security) deduction definition. In 2019, the FICA (Social Security) wage base will change to $132,900. https://www.ssa.gov/policy/docs/quickfacts/prog_highlights/index.html This needs to be verified in the Max Annual Gross field on the deduction definition. Update tax tables, if necessary. Rate changes for city and school tax deductions must be entered on the applicable tax tables by adding a new tax table applicable period with the new rate or modifying the existing period with the new rate. Updates to federal and state (Ohio & Kentucky only) tax tables will be available on the Visual Intelligence Gateway website. Notifications will be posted when new tax tables are available (which may not be before your first payroll period with a 2019 check date). At that time, the updates can be accessed from www.support.mysoftwaresolutions.com using the Visual Intelligence drop down and selecting Downloads. STEP D: IF YOU HAVE PAYROLL PERIOD(S) WITH A 2018 ENDING DATE AND A 2019 CHECK DATE, COMPLETE THIS STEP Note: T his step is for payroll periods that have a 2019 check date but an ending date in 2018. Process and post payroll period(s) with a 2018 ending date and a 2019 check date as normal. (Y our T ime Entry will be showing leave balances as zero because the system populates time entry based on the payroll system date that was set to 1 of 2019 earlier. The system period can be set to 12 of 2018 during time entry but must be changed to 1 of 2019 prior to posting.) 7

Process the First Payroll Period(s) Ending in 2019 (This may not be your first payroll period with a 2019 check date.) Note: The 2019 accrual balance for all employees will be ZERO until step D is processed. All 2018 activity needs to be posted for the transfer in step D to be accurate. The following steps allow this process. STEP A: ALLOW PRE-USE OF ACCRUALS This enables time off to be recorded in both 2018 and 2019 for the payroll period(s) that cross calendar years. 1. Navigate to Payroll Configure Payroll System. 2. Click the Edit button at the top of the screen. 3. Check the box to Allow Pre-Use of Accruals. 4. Click the Save & Close button. STEP B: CHANGE THE BALANCE VALIDATION FOR ACCRUALS Accruals configured to Warn and stop must be changed to Warn and continue for the payroll period(s) that cross calendar years. The validation will be using the 2019 balance which is ZERO until step D is completed. 1. Navigate to Payroll Configure Accrual Definitions. 2. Click the Edit button for any accrual configured to Warn and stop. 3. Change the Balance Validation to Warn and continue. 4. Click the Save & Close button. 5. Repeat as necessary. 8

STEP C: PROCESS THE FIRST PAYROLL PERIOD(S) WITH A 2019 ENDING DATE Note: This step is for the payroll period(s) that have a beginning date in 2018 and an ending date in 2019. If your first payroll period with a 2019 ending date has a beginning date of January 1, 2019, you can skip #2 in this step. 1. If yearly accruals (time off benefits that are granted at the beginning of the calendar year) need to be accrued, configure this when adding the payroll period. With Time Card, All Nonterminated, or All Active needs to be selected in the Accrue Y early Accruals field. Figure 1: Accrue Yearly Accruals 9

2. The Work Date for all time off taken in the new year (2019) needs to be specified during Time Worksheet Entry. (By default, accrual USAGES use the beginning date of the payroll period. To ensure time off is recorded in the proper year, the Work Date must be entered during Time Worksheet Entry.) In Time Worksheet Entry, the Work Date can be specified using the T ime Entry Details T ab or the Time Entry Calendar Tab. If using the T ime Entries Detail, the work date will determine the period the accrual usage will be posted. Figure 2: Time Worksheet Entry Specify Work Date 3. Proceed with processing and posting the payroll period(s). Reminder that the validation is looking at 2019 STOP before printing/emailing checks/direct deposit stubs (printing/emailing stubs will be completed in Step F). If you generate stubs at this time, the accrual balances will be ZERO. It is also recommended that you wait to run any accrual reports for the payroll period(s) until Step E has been completed. STEP D: TRANSFER ACCRUAL BALANCES The transfer of accrual balances accomplishes two tasks: (1) Transfers accrual balances that carry over from 2018 to 2019. The transfer is recorded as two separate accrual lines: a Transfer Out of 2018 and a Transfer In to 2019. (2) Resets accrual balances to zero for accruals configured to reset at year end. 1. Navigate to Payroll Configure Accrual Definitions. 2. Review accrual definitions and ensure that accruals that do not carry over to the new year are configured to Reset At Year End. 3. Navigate to Payroll Configure Payroll System. 10

4. Select the Transfer Accrual Balances function. 5. Check the box to Transfer Accruals From Prior Year. 6. Click the OK button. STEP E: VERIFY OPENING ACCRUAL BALANCES 1. Navigate to Payroll Report Employee Accruals. 2. Group the grid by Department and then Job or Legacy Employee Number. 3. Add the Accrual Configuration and Opening Balance fields to the grid. 4. Verify the opening accrual balances for each employee using the Employee Accruals grid or your preferred grid/report. Figure 3: Employee Accruals Grid 11

5. At this time, it is recommended that you run any accrual reports that you typically generate for a payroll period. The Balance YTD will reflect what was transferred from 2018 as well as what was earned/used during the first payroll period(s) with a 2019 ending date. Pay close attention to employees that are at or near maximums. STEP F: PRINT/EMAIL CHECKS/DIRECT DEPOSIT STUBS 1. Navigate to Payroll Maintain Payroll Periods, Posted. 2. Print/email checks/direct deposit stubs for the first payroll period(s) with a 2019 ending date. STEP G: DISABLE PRE-USE OF ACCRUALS If you allow time off to be used in the same payroll period in which it is accrued, you can skip this step and leave Pre-use of Accruals active. 1. Navigate to Payroll Configure Payroll System. 2. Click the Edit button at the top of the screen. 3. Uncheck the box to Allow Pre-use of Accruals. 4. Click the Save & Close button. STEP H: CHANGE THE BALANCE VALIDATION FOR ACCRUALS For accrual balance validations that were changed in Step B, these can now be configured back to their original value. 1. Navigate to Payroll Configure Accrual Definitions. 2. Click the Edit button for any accrual configured to Warn and continue. 3. Change the Balance Validation to Warn and stop. 4. Click the Save & Close button. 5. Repeat as necessary. 12

NOTES 13

Important W-2 Notations Below is a list of important guidelines to review before getting started: 1. W-2s can be built throughout the year for balancing purposes. Each time you Prepare the W2 Year, the system will overwrite any existing W2 Details, including manual adjustments to the W-2 s. 2. If a Fringe Definition is configured as Life Insurance Over 50,000, the amount will be reported on the W-2 in Box 12 with a code of C. 3. If a Fringe Definition is configured as HSA Employer Contribution, the amount will be reported on the W-2 in Box 12 with a code of W. 4. Multiple W-2s may be required for an employee if they have more than two lines reported in the local taxes section of the W2 (Boxes 18, 19, and 20), and/or more than four lines to print in Box 12. 5. We often get questions regarding where the W2 Details are derived. The table below details where each box on the W-2 gets its information from in Visual Intelligence. Please use this as a reference when reconciling your W-2s. Box on the W-2 Derives its information from the Box a Employee s social security number SSN field on the Employee screen Box b Employer identification number Employer ID field on the W2 Year Box c Employer s name, address, and ZIP code Employer Address field on the W2 Year Box d Control number Not applicable Box e Box f Employee s first name and initial Last name Suff Employee s address and Zip code First Name and Middle Name fields on the Employee screen Last Name field on the Employee screen Suffix field on the Employee screen Street Number, Street Name, City, State and Zip fields on the Employee screen Box 1 Wages, tips, other compensation Gross YTD recorded for the Federal Tax deduction Box 2 Federal income tax withheld Deduction YTD recorded for the Federal Tax deduction Box 3 Social security wages Gross YTD recorded for the FICA deduction Box 4 Social security tax withheld Deduction YTD recorded for the FICA deduction Box 5 Medicare wages and tips Gross YTD recorded for the Medicare deduction 14

Box 6 Medicare tax withheld Deduction YTD recorded for the Medicare deduction Box 7 Social security tips Paycode or Fringe Definition W-2 Box 7 check box Box 8 Allocated tips Fringe Definition W-2 Box 8 check box Box 9 Not applicable Box 10 Dependent care benefits Deduction YTD recorded for the Child care 125 deduction Box 11 Nonqualified plans Must be manually entered Box 12 Total Contribution recorded for the year on the Health Insurance tab on the Employee Screen YTD Amount for the HSA Employer Contribution fringe plus the Deduction YTD for the HSA deduction (the combined amount will be displayed on the grid but only the HSA Employer Contribution fringe will be included in the Electronic file) YTD Amount for the Life Insurance Over 50,000 fringe Deduction YTD recorded for the Deferred Compensation deduction Box 13 Statutory employee Retirement plan Third party sick pay Must be manually checked off Checked off if the employee had Pension Pick up Must be manually checked off Box 14 Other Used for employee informational purposes (health premiums, certain pension contributions, Section 125 deductions, etc.). The system will combine amounts on Line 4 if an employee has more than four items to report. In this case, the description on Line 4 will be Other. Box 15 State Employer s state ID number W2 Code field on the State Tax deduction Employer State ID field on the W2 Year Box 16 State wages, tips, etc Gross YTD recorded for the State Tax Box 17 State income tax Deduction YTD recorded for the State Tax Box 18 Local wages, tips, etc Gross YTD recorded for the City Tax deduction/school Tax deduction Box 19 Local income tax Deduction YTD recorded for the City Tax deduction/school Tax deduction Box 20 Locality W2 Code or Name field on the City Tax deduction/w2 Code or Name field for School Tax Deduction 15

Process W-2s STEP A: RECORD EMPLOYER S HEALTH CARE COSTS The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan on the W-2. Please visit http://www.irs.gov/uac/form- W-2-Reporting-of-Employer-Sponsored-Health-Coverage for further information. If you want to balance the W-2s and healthcare costs have not been added or imported, you can skip this step and enter it later in ST EP H. 1. If you are required to report the cost of coverage, the amounts can be manually added or imported. If you need assistance, please reference Appendix B. When W-2s are prepared, the total cost for each employee will be reported in Box 12 with a code of DD. STEP B: PREPARE DEDUCTIONS FOR W-2s 1. Navigate to Payroll Configure Deduction Definitions. 2. For each deduction that is reported on the W-2, review the Deduction Category, W2 Code and W2 Box by referencing the table below. If you were live on Visual Intelligence last year, any W-2 configurations that were made to the deductions have been maintained. The following deduction categories have no impact on the W-2: o Garnishment of Disposable Earnings o Garnishment of Gross o Union Dues o Credit Union o ACH o Standard New Box 12 GG and HH codes can be coded on the Deduction Definition to come in during the Prepare W-2 process, or manually added to the W-2 detail record after Prepare. If coding on the deduction, the W-2 code should be GG or HH and W-2 Box should be Box 12. Deduction Category W-2 Impact W-2 Code Federal Tax State Tax Box 1 Taxable Wages Box 2 Tax Withheld Box 15 State Description Box 16 Taxable Wages Box 17 Tax Withheld The W2 Code (OH, IN, KY, etc.) must be specified on the deduction definition. 16

County Tax City Tax Box 18 Taxable Wages Box 19 Tax Withheld Box 20 County Description Box 18 Taxable Wages Box 19 Tax Withheld Box 20 City Description You can specify the county name in the W2 Code field on the deduction definition. Otherwise, the Deduction Name will appear in Box 20. Regardless if you use the W2 Code or Deduction Name, the county description should not exceed 16 characters. You can specify the city name in the W2 Code field on the deduction definition. Otherwise, the Deduction Name will appear in Box 20. Regardless if you use the W2 Code or Deduction Name, the city description should not exceed 16 characters. * RITA: Deduction Set Up for electronic filing. If not using work locations, the W2 Code must have a C or R at the end of the RITA W2 code in the deduction definition for it to work properly. C=EMPLOYMENT MUNICIPALITY R= RESIDENCE MUNICIPALITY If using work locations, the W2 Code cannot have the trailing R or C. The system will look at the Employee Deduction Resident City Tax object - If set to No or False then append a C to the end of RITA code IE - R0123 to be R0123C - If set to Yes or True then append an R to the end of RITA code IE - R01223 to be R0123R If you have both RITA and non RITA cities, non-rita cities will need to code the deduction definition with a 00000 in the W2 code field. School Tax Medicare FICA Box 18 Taxable Wages Box 19 Tax Withheld Box 20 School Description Box 5 Taxable Wages Box 6 Tax Withheld Box 3 Taxable Wages Box 4 Tax Withheld The W2 Code (school district number) must be specified on the deduction definition. Pension Box 13 Retirement Plan Pension (Deferred) Box 14 Code & Amount The W2 Box (14) and W2 Code (414H2) must be specified on the deduction definition. 17

Pension Buy Back (Deferred) Pension Pick Up Deferred Compensation Box 14 Code & Amount Box 13 Retirement Plan Box 12 Code & Amount The W2 Box (14) and W2 Code (414H2) must be specified on the deduction definition. The default code is G (457)b. An alternate code can be specified on the deduction definition. Section 125 Box 14 Code & Amount The default code is S125. Medical R125 Box 14 Code & Amount The default code is S125. Child care 125 HSA Box 10 Amount Box 14 Code & Amount Box 12 Code & Amount The default code is HSA. The default code is W. T132 Box 14 Code & Amount The default code is S132. STEP C: ADD A W2 YEAR 1. Navigate to Payroll Maintain W2 Years. 2. Click the Add button. 3. Complete the necessary fields. The fields with a red asterisk on the W2 Year screen are required. W2 Year: 2018 Entity Name: Enter the entity name associated with the W-2 information. Location Address: Enter the second line of the delivery address or your department name. Employer State IDLocation: For Indiana customers only. T his is a three-digit employer TID location. Delivery Address: Enter the first line of the delivery address. City: Enter the entity city. State: Enter the postal abbreviation for your state. Zip: Enter the entity zip code. Zip 4 Employer ID: Enter the EIN (with dashes) assigned to you by the IRS. Employer State ID: Enter the State ID number (with dashes). Employer Address: Enter the address to print on the W-2s. Mag Contact Name: Enter the contact name. Mag PIN: Enter the eight-character user ID assigned to you by Business Services on SSA.gov. Mag Contact Phone: Enter the contact phone number (without dashes). Mag Contact Extension: Enter the contact extension number. Mag Contact Email: Enter the contact email address. Mag Contact Fax: Enter the contact fax number (without dashes). State Record Format: Select the applicable state. Includes MQGE Employees: MQGE stands for Medicare Qualified Government Employee. Typically, these are employees who pay into Medicare but not FICA. Check off if you have employees in this group. 18

Includes 3 rd Party Sick In Non-MQGE Section: This is for employees who have third party sick pay and also pay into Medicare and FICA. Includes 3 rd Party Sick In MQGE Section: This is for employees who have third party sick pay and also pay into Medicare (but not FICA). Kind Of Employer: Select the kind of employer from the dropdown. According to IRS 2018 General Instructions for Forms W-2 and W-3, for cities, townships, counties, special-purpose districts, public school districts, or other publicly owned entities with governmental authority the correct option is S_StateLocalGovernment. Ohio RITA state records: If you file electronically with RITA, check this box prior to using Prepare. See step J for creating electronic file. 4. Click the Save & Close button. STEP D: PREPARE THE W2 YEAR 1. Navigate to Payroll Maintain W2 Years. 2. Check off the line for the 2018 W2 Year. 3. Select the Prepare function. 4. Click the OK button. STEP E: VERIFY W2 DETAILS 1. Navigate to Payroll Maintain W2 Years. 2. Click on the 2018 W2 Year. 3. Configure the W2 Details grid to balance against your quarterly 941 Summaries (Payroll Report 941 Summaries). *Note: You can create/use My Grids to switch between multiple grid layouts. An overview of My Grids can be found in the VIP Essentials Class materials which are available on the Visual Intelligence Gateway website. Include the following fields on the grid and export to view totals: o Employee o Box 1 Wages o Box 2 Federal T ax Withheld o Box 3 Social Security Wages o Box 4 Social Security Withheld o Box 5 Medicare Wages o Box 6 Medicare Withheld 4. Configure the W2 Details grid to balance against the Deduction Recap Month Quarter Year reports (Payroll Report Formatted Reports). Include the following fields on the grid and export to view totals: o Employee o Box 15 State Code o Box 16 State Wages o Box 17 State Tax 5. Configure the W2 Details grid to balance against the Deduction Recap Month Quarter Year, City County Tax by Code and School Tax Breakdown by School District reports (Payroll Report Formatted Reports). Include the following fields on the grid and export to view totals: o Employee 19

o Box 18 Lines 1 & 2 Local Wages o Box 19 Lines 1 & 2 Local Taxes o Box 20 Lines 1 & 2 Local Name 6. Continue reconciling the W2 Details. We recommend using the 2018 YTD Register as well as the table in the Important W-2 Notations section. New W2 Summary is also available at Payroll Report Formatted Reports to assist. 7. Navigate to Payroll Maintain W2 Years. 8. Click on the 2018 W2 Year. 9. Click on the Show Analysis button. This produces a report that will report differences between Federal Gross and W2 Box 1 wages. Items reported in Box 12 cannot be forced to appear on a specific line for all employees. The best way to balance Box 12 by code is to use the new W2 Summary available at Payroll Report Formatted Reports to get the totals. STEP F: CORRECT/ADD W2 DETAILS 1. Navigate to Payroll Maintain W2 Years. 2. Click on the 2018 W2 Year. 3. From the W2 Details grid, click the Edit button for the W2 Detail that needs to be modified. 4. Correct the W2 details by editing the appropriate field(s). 5. Enter a Change Reason, if desired. T his will create a W2 Adjustment record. 6. Click the Save & Close button. 7. From the W2 Details grid, click the Add button to add a W2 detail for an employee. 8. Enter the Sequence number (the next consecutive number). 9. Select an Employee. 10. Complete the W2 Details. 11. Click the Save & Close button. Note If you have 3 rd party sick pay, it is recommended that you create a new W2 (using sequence 2, for example). You will have to enter the basic information that was relevant to the 3 rd party sick pay. STEP G: VERIFY W2 DETAILS 1. Repeat Steps E and F until all W2 Details are correct. STEP H: PREPARE HEALTHCARE ONLY Do this STEP ONLY if you skipped STEP A above. 1. Navigate to Payroll Maintain W2 Years. 2. Click on the 2018 W2 Year. 3. Click on the Prepare Healthcare Only button. 20

STEP I: PRINT W-2s 1. Navigate to Payroll Maintain W2 Years. 2. Click on the 2018 W2 Year. 3. On the W2 Details grid, check off the W2 Details to print (test print a few before printing all). 4. Select which form to print from the Show in Report dropdown: W2 Copy A Formless (IRS Form) W2 Employee Copy Formless W2 Employer Copy Formless 5. Turn off any page scaling and then print the forms. Figure 3: Google Chrome Print Options Figure 4: Internet Explorer Print Options 6. After ensuring that the forms printed successfully, proceed with printing all W-2 forms. 21

STEP J: CREATE ELECTRONIC FILE If you file electronically with RITA, you will need to complete this step twice. On the W2 Year there is a field for Ohio RITA state records. This field needs to be checked off for the file created for RITA. SSA will also accept this file but Ohio RITA state records needs to be unchecked for the file created for the state. 1. Navigate to Payroll Maintain W2 Years. 2. Check off the line for the 2018 W2 Year. 3. Select the Create Electronic File function. 4. Navigate to Payroll Export. 5. Download the W2MAG_2018 file and save as W2REPORT.txt. 22

NOTES 23

Appendix A: Fringe Definitions and Fringe Cycles Fringes, such as vehicle allowance and life insurance over $50,000, are taxable benefits. In Visual Intelligence, Fringes are also used to report HSA Employer Contributions on W-2s. This document covers three items related to Fringes: 1. Adding a Fringe Cycle 2. Adding a Fringe Definition 3. Adding Employees to a Fringe Adding a Fringe Cycle 1. Navigate to the Payroll menu and select Configure. 2. Select Fringe Cycles. 3. Click the Add button. Enter a Name. Enter a description in the Notes field. Click the Save and Close button. Fringe Cycles are used to link Fringes to a Payroll Period. When it is time to process a Fringe, you will link the Fringe Cycle associated with that Fringe to the Payroll Period. This is done from the Fringe Cycles tab in an Active Payroll Period. Adding a Fringe Definition 1. Navigate to the Payroll menu and select Configure. 2. Select Fringe Definitions. 3. Click the Add button. Enter a Name. Enter a Default Amount, if desired. This is used if the fringe amount is the same for all employees who have the fringe benefit. Select a Default Fringe Cycle. If the Fringe is for Life Insurance Over $50,000, HSA Employer Contribution, W-2 Box 7 or W-2 Box 8 check off the corresponding option. Check off the appropriate tax withholdings (the only exception is if the fringe is for HSA Employer Contribution). Click the Save and Close button. Adding Employees to a Fringe 1. Navigate to the Payroll menu and select Configure. 2. Select Fringe Definitions. 3. Click on the desired Fringe. 4. Select the Add to Employees button. Find and select an Employee(s). Click OK 5. Verify the fringe Details by reviewing the grid or clicking into the fringe. Verify Begin Date and an End Dates, if necessary. If no dates are defined, the Fringe will become active upon saving and will remain active until an End Date is entered. 24

Override the Amount, if not using the default value. If the Fringe Cycle is different than the Fringe Cycle defined on the Fringe Definition, select a Fringe Cycle. Otherwise, leave N/A. Fringes may be added from the Employee screen by selecting the Employee Fringes tab and clicking the Add button. When using this method you will have to select the appropriate Fringe Definition. The Fringe import option: - Imports from a CSV with columns "EmployeeID" and "Amount" and ignores all others - For each EmployeeID in file, Employees in VIP will be searched to match Legacy Number, then Job Number, then SSN - If an employee is found - If the employee already has an existing fringe, the amount will be updated. - If the employee is not found in the prfringedefinition, a new premploymentdetail will be created and added, with the imported amount. - If an employee is not found - The file record will not be imported, but will be reported as missing after remaining records are processed. 25

Appendix B: Record Health Care Costs The Affordable Care Act requires employers to report the cost of coverage under an employersponsored group health plan. It is recommended that you review the Affordable Care Act to determine if your entity is required to report these costs. In Visual Intelligence, there are three ways to enter this information so that it can be reported on the W-2s. Once the data is entered, no additional preparation is needed. The W-2 build process will automatically pull the contributions associated with each employee and place the total amount in Box 12 with a code of DD. This document reviews the following processes: 1. Manually Entering Health Care Costs on the Employee Screen 2. Manually Entering Health Care Costs on the Employee Health Insurance Grid 3. Importing Health Care Costs on the Employee Health Insurance Grid Manually Entering Health Care Costs on the Employee Screen 1. Navigate to Payroll Maintain Employees. 2. Click on the desired Employee. 3. Select the Health Insurance tab. 4. Click the Add button. Enter a Premium Description. Enter the Year. Enter the monthly contributions or enter the total contribution in any of the monthly fields. Click the Save and Close button. Manually Entering Health Care Costs on the Employee Health Insurance Grid 1. Navigate to Payroll Maintain Health Insurance 2. Click the Add button. Select an Employee. Enter a Premium Description. Enter the Year. Enter the monthly contributions or enter the total contribution in any of the monthly fields. Click the Save and Close button. 26

Importing Health Care Costs on the Employee Health Insurance Grid 1. In preparation for importing your file, please ensure that the file is in the correct format. The data should be in CSV format, which can be accomplished by creating the file in either Notepad or Microsoft Excel. Formatting examples are as follows: Notepad Microsoft Excel The EmpID can be the Legacy Employee Number, Job Number, or SSN. The Premium is userdefined, such as: Health, Life, Adjustments, etc. Also, each employee can have multiple lines for a given year, one for each insurance type. The total contribution for all premiums will be combined and the grand total will be reported on the W-2. Note If you have leading zeros on Employee or Job Numbers, you must format that column as a Text format. Save the file as CSV only once you know all the information is complete, once you reopen the CSV you will lose all formatting including leading zeros. The amount columns should also be formatted to Number format. 2. Navigate to Payroll Maintain Health Insurance. 3. Select the Import Records button. Acknowledge the prompt by clicking the OK button. Browse and select your import file. Click the OK button. 27

OPERS Non-Contributing List OPERS now requires entities to submit a list containing the non-contributing appointive employees who work in OPERS pension type positions, but have opted out of the pension and any individuals who provided services to the employer in the prior year and were classified as an independent contractor or any other classification other than a public employee. The individual s social security number is required for reporting. This document reviews the following processes: 1. Setup the Non-Contributing Employee 2. Add the Report Year 3. Prepare the Report 4. Create the Electronic File Setup the Non-Contributing Employee or Vendor For Employee: 1. Navigate to Payroll Maintain Employees. 2. Click on the desired Employee. 3. Non contributing information is located in the More Information section 4. Click the Edit button to modify the Non-Contributing information as described in Step 5 below. For Vendor: 1. Navigate to Accounts Payable Maintain Vendor. 2. Select. 3. Click on the desired Vendor. 4. Non contributing information is located in the More Information section 5. Click the Edit button. Enter a Non-Contributing Status: S = Student Exemption I = Independent Contractor X = Excluded by 145.01 E = Elected Official Enter the Non-Contributing position. Enter the Non-Contributing Start and End Dates. Click the Save and Close button. Add the Report Year 1. Navigate to Accounts Payable Maintain Non-Contributing Years. 2. Click the Add button. Enter the Year, Non-Contributing Employer Code, and the Employer Name. 28

3. Click the Save and Close button. Prepare the Report 1. Navigate to Accounts Payable Maintain Non-Contributing Years. 2. Check off the Year of the Report or click into the year 3. Click the Prepare button. This will produce a grid of the details of the non-contributing employees For the Mag File reporting to OPERS it is necessary that the names be formatted as Last Name, First Name, Middle Name (or Initial). Vendor names in particular will need to be reviewed to ensure that they are correctly formatted, however Employee Names should also be reviewed! It is likely that changes will be necessary to comply with this requirement. If the name is changed in the grid the Vendor will be unchanged, and only the Mag File is affected. Alternatively, the Vendor could be changed and then the Prepare action would need to be done again. If modifying the Vendor directly, the Business Name has precedence over the Name fields when the Prepare action is performed. Create the Electronic File 1. Navigate to Accounts Payable Maintain Non-Contributing Years. 2. Check off the Year of the Report or click into the year 3. Click the Create File button. 29

Other Considerations Box 20 on the W2 Box 20 will follow a hierarchy when printing: city or county taxes will print first, then school taxes. For example, assume an employee has the following deductions: city tax 1, city tax 2, city tax 3, and school district tax 1. In this scenario, two W-2s would be produced. The first W-2 Box 20 Line 1 would be city tax 1 and Box 20 Line 2 would be city tax 2. The second W-2 Box 20 Line 1 would be city tax 3 and Box 20 Line 2 would be school district tax 1. Boxes 18 20 will have a Local Type to make it easier to identify the deduction and Box 20 will list the Local Code only. Indiana Payroll 100R To help with Indiana Gateway Form 100R reporting, an Indiana 100R Export has been added to the Employees grid. The Export includes Employee Name, Department, Business Address, Job Title, and Compensation. Department Addresses must be on file in Payroll Maintain Departments. The CSV file will use the Department Addresses. An Indiana 100R Export can be created by navigating to Payroll Maintain Employees. A CSV export file is generated by clicking the Indiana 100R Export. 30

The Export file is found in Payroll Export. Last Name, Middle Initial, First Name, Department Name, Business Address, Business City, Business State, Business, ZIP Code, Job Title, and Compensation are included in the CSV file. o The Department Address information is used for Business Address information. The CSV file is by Job, so if an employee has multiple jobs the employee will be listed more than once. Tax Table The system uses the Check Date to determine when to start or stop using a tax table. The system will compare the Begin Date and End Date fields in the tax table to the Check Date to determine if a particular tax table should be used. 31

Secondary States If an employee paid into 2 different states during the year, VIP will report the states separately on both the W2 and the Electronic file. You must set up the state W2 ID on the secondary state Deduction Definition 32