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W2 Reporting
for 2015
December 8, 2015
Agenda
• Essential Dates • SCOE or District • Calendars
• Issues for Adjustment • Prior to December Regular Payroll • Post December Regular Payroll
• W2 Correction Payroll
• Finding Problems • Process to Use
Agenda
• Making Corrections • Which Payroll to Use
• Reports • What Balances to What
• Helpful Hints • Check List • Final Submission
Essential Dates
Essential Dates
Essential Dates
• District Responsibilities: - December 14 - Initial Verification of Payroll Data
• In Production (Loaded into Training: Dec. 8th for review) - December 10-21 – All Pay/Cash Related Corrections Made
• In Production • December Regular – Due Noon – Monday, 12/21/15
- December 23-January 11 – All Possible Corrections Done • In Production • W2 Correction Pay Cycle – Due Noon – January 11, 2015
Essential Dates
• District Responsibilities: - January 13 – Final Verification of W2 Data - Signed Verification Reports Due by 4:30 p.m. to Erin Graves, Business Services
• Pay01 Payroll Summary • Pay05 Monthly Tax Summary • Pay 26a Employer W2 Copy (Last Page Only) • Pay 27 W2 Summary (Last Page Only) • Pay 31 W2 Errors (Error Free)
2015 W2 Reporting
• Include Additional Medicare in Box 6 • Salaries over $200,000 • Notify Erin if applicable to your district
• Suppress W2’s for Non-earnings Individuals • Box 12, DD Health Benefits
• Abbreviating W2 Addresses • 22 first line W2, 60 in Escape
• Verify that enough is present for mail delivery • Only alters W2 address
Helpful Publications • Class Handouts
– Posted to Escape Home Page
• Escape – Chapter 20 – W2 Reporting – Escape How To (Online Chapter 20) – W2 Tutorial (New with 15.3 version)
• WWW.IRS.Gov (Website) – 2015 General Instructions for Forms W-2 and W-3 – Publication 15 – Employer Tax Guide – Publication 15A – Employer Supplemental Tax Guide – Publication 15B – Fringe Benefits – W2 Form Documentation
Review Set Up
• Review Deductions – HR/Payroll – Setup – Payroll - Deductions Management
Click on the Org Tab for District to Edit • Section 3 – Retirement/W2
– H/W Post and Pre Deductions=W2 Box 12 (Reporting Elements), W2 Category DD (Health Insurance)
– HSA Deduction=W2 Box 12 (Reporting Elements), W2 Category W (HSA Contributions)
– TSA Deduction=W2 Box 12 (Reporting Elements), W2 Category E or BB (Deferred Comp 403 or Roth under 403b) OR Category G or EE (Deferred Comp 457 or Roth under 457b)
– Dependent Child Care=W2 Box 10 (Box 10 Dependent Care)
Review Set Up
Review for correct set up of W2 box and category
Review Set Up • W2 Pension Field
– If reportable amounts to STRS/PERS, automatically set
• Can adjust now for all of 2015 – Box 12 requires an IRS Defined Category – Box 14 Defined by District
» Can have up to 4 Defined Categories » After 4, data in 5 or more rolls into 4th Category
– Notify IT Business Support Analyst if Category changes needed » District must supply IT with Code and Description
Review Set Up • Review Contributions
– HR/Payroll – Setup – Contributions Management • Section 3 – Retirement/W2
– H/W Employer Contribution=W2 Box 12 (Reporting Elements), W2 Category DD (Health Insurance)
– HSA Employer Contribution=W2 Box 12 (Reporting Elements), W2 Category W (HSA Contributions)
– TSA Employer Contribution=W2 Box 12 (Reporting Elements), W2 Category E (Deferred Comp 403) OR Category G (Deferred Comp 457)
• Can adjust now for all of 2015 – Box 14 Defined by District – Notify IT Business Support Analyst if changes needed
Review Set Up
Review for correct set up of W2 Box and Category
Review Set Up • Review Addon Setup
– HR/Payroll – Setup – Payroll – Addons • Section 3 – W2 and Account Numbers
– Group-Term Life Insurance=W2 Box 12 (Reporting Elements), W2 Category C (Taxable Life Ins Over $50,000)
– Mileage=W2 Box 12 (Reporting Elements), W2 Category L (Employee Expense)
• W2 Box 12 or 14: – Must have appropriate Category
» Box 12 (Reporting Elements)– Select from default list » Box 14 (Reporting Elements)– Locally defined code
Review Set Up
Review for correct set up of W2 Box and Category
Review Set Up
– Verify Usage of Special Addons • Domestic Partners – used to report amounts paid by
employer for health and welfare premiums for domestic partners
– Registered Domestic Partners – Exempt from State Tax Withholdings
• Group-Term Life Insurance over 50K – used to adjust the employee’s subject wages
– Required to use IRS table to determine the adjustment
Review Set Up
– Verify Usage of Special Addons, cont’d • Mileage – used to report District’s mileage
reimbursement rate if greater than government rate – Government rate for 2015 is 57.5 cents per mile
• Workers Comp – used when employer receives W/C checks for employee
- W/C pay is not subject to FIT, SIT, OASDI and Medicare
Issues for Adjustments
• December Regular Payroll – All CASH adjustments must be made on the December
Regular Payroll • Special Addons not set up and used in 2015
– W2 Addon for Benefits outside Escape (RESIG payments)
• Medicare, OASDI, PERS/STRS adjustments • Use Z-Type Addons (Done by SCOE Business Services)
– Increases subject grosses causing additional taxation
• Dependent Child Care if in Excess of IRS Limit ($5,000)
Issues for Adjustments
• December Regular Payroll, cont’d • Stale Date Paychecks • Outstanding TSA issues • Third Party Sick Pay • Undocumented Business Expenses • Any other income not reflected in pay history
– Benefits paid to an outside vendor » RESIG as an example
Issues for Adjustments
• Social Security Numbers • SS# - Issue this year, please double check ongoing • Do not manually change the SS# in Employee Management
without going through Erin Graves in Business Services
Finding Problems • HR/Payroll – Processes - Tax Reporting –
Employee W2 - Search for Complete List, Changes or Problems
• Initial Review of W2 • Provides W2 Error/Edit Profile • Provides for reload of changes
Finding Problems
• Possible Error Codes
– 0 = Out of Range (example: OASDI goes negative) – C = Calculation Problems (Probably needs SCOE intervention) – E = Employee Issues (Invalid SSN or address)
Double click on Problem heading to bring problems to top of list
Finding Problems
‾ Open Line to View Problem Msg Field ‾ Escape checks for minimal issues
• Negative balances for OASDI, M/C, Dependent Care, Box 12, Retirement Plans, FIT, and SIT grosses or withholdings
• OASDI Gross greater than M/C Gross • Invalid SSN • Address Incomplete
‾ Reminder: Quick Link to the Employee Record • Use to change the “original” information and then
reload data
Finding Problems - Run Pay 31 W2 Errors Report (Good Source for Address Issues)
- Errors are generated via the pay detail load
- Must clear all errors to process FINAL W2’s
Finding Problems
– Verify W2 for deductions/contributions reported on W2
• Run Pay12 Employee Deduction Report – To verify 125 Dependent Child Care does not exceed IRS
limits – To verify TSA contributions to not exceed limit
• Pay34 Payroll Deduction and Contribution Detail Report
– Use: W2 Filtering – Start and End Dates (Not fiscal year)
• Run Employee Snapshot – Select Calendar Year
Finding Problems
Can be run by Deduction Id to verify within IRS limits
Note the Starting and Ending Dates rather than Fiscal Year
Finding Problems
W2 Filtering
Note the Calendar date rather than the Fiscal Year entry
Making Corrections • Decide when issue should be corrected
- December Regular If adjustment will AFFECT PAY/CASH
Data can be adjusted in Adjust Pay • HR/Payroll – Payroll – Adjust Payroll • Make Any Adjustments Needed
- W2 Correction Payroll • ONLY Non cash items
Making Corrections
- Post W2 Adjustment Process Only use if unable to meet other deadlines above
• Must consult with Business Services prior to adjustment.
• Will not adjust Pay records, only W2 data • NO audit trail
– Unable to verify at a later date
Making Corrections
• Additional Pay for W2 Correction Pay Cycle – HR/Payroll – Employment - Additional Pay
• Fiscal Year = 2015 • Description = W2 Adjustments • Pay Cycle = W2 (W2 Adjustments) • Pay Period = 12/25/2015
Reports/Processes • Other Helpful Reports:
HR/Payroll – Reports – Payroll
– Pay 01 - Payroll Summary
Reports/Processes – Pay 26 – W2 Employer Copy
• Should Balance/Match to Pay 27
Useful Reports
• Pay05 – Monthly Tax Summary • Should balance to Pay27 by Category
Reports/Processes - Pay 27 – W2 Summary
• Run for Final Submission
Reports/Processes Pay 31 - W2 Errors as Report
• Must be Error Free for Final Submission
Helpful Hints • Watch Address Truncation
– 22 first line W2, 60 in Escape • Pay 31 with Address Errors
• W2 Box Categories • If more than 4, then remaining will roll to #4
• Adjust Pay has Calendar Year Option • Set up Addons for 2015
– Domestic/Lifeadj/Mileage • Always Run Reports With Full 2015 Year
Helpful Hints
• For 2015, Use Repay Deduction when employee doesn’t have enough earnings to cover their portion of benefits (see handout, Health Insurance)
• If claiming Exempt, must submit new W4 by
2/15/16
Reminder: Final Submission - January 13 – Final Verification of W2 Data - Signed Verification Reports Due by 4:30 p.m. to Erin Graves, Business
Services • Pay01 Payroll Summary • Pay05 Monthly Tax Summary • Pay 26a Employer W2 Copy (Last Page Only) • Pay 27 W2 Summary (Last Page Only) • Pay 31 W2 Errors (Error Free)
You can submit the reports early to Erin in Business Services for early review.
Final Submission
Did you Know? Districts can review the
Pay31 –W2 Error Report anytime
– Don’t wait until the last minute!!!
Example #1: Out of Range Errors-Box 12DD
Cont. Example #1: Out of Range Errors-Box 12DD
Cont. Example #1: Out of Range Errors-Box 12DD
Cont. Example #1: Out of Range Errors-Box 12DD
Cont. Example #1: Out of Range Errors-Box 12DD • Terminated Employee’s
Cont. Example #1: Out of Range Errors-Box 12DD
Example #2 – Employee Problems
• Step 1 – Run the W2 Error Report Pay 31
Example #2 – Employee Problems
This will fix the address and eliminate the W2 error. Remember W2’s can not process with errors. Once corrected as suggested run the Pay31 again and the errors will no longer be listed.
Example #2 – Employee Problems
• Re-run your Pay31 – NOW the report is error free!!!