financial services workshop payroll breakout may16, 2014 1
TRANSCRIPT
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Financial Services Workshop
Payroll Breakout
May16, 2014
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Introductions
Payroll Director Letty J. Lalu 328-4245
Payroll Accountant Marci Copeland 328-0445
International Tax Specialist
Barbara Wells 737-4792
Lead Payroll Technician Tia Freeman 328-4161
Payroll Specialist Cynthia Andrews
328-5462
Payroll Specialist Cynthia Price 328-5461
Payroll Clerk Brenda Reese 328-6954
Payroll/Admin Clerk Rosie Evans 328-6955
Payroll Temp Sue Scott 328-5463
March 12, 2014
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Primary Areas of Responsibility
March 12, 2014
Letty Employee overpayments and collection, taxes, W-2s, system integration and reporting, semi-monthly (SM) payroll processing
Marci Manual payroll cycles and adjustments, International tax reporting-1042s, audit, Kronos implementation
Barbara International/non-resident employee and student tax
Tia Temp and Student (TS) payroll processing, Web-time, Mass time Entry (MTE) and Kronos support
Cynthia A. LOA and termination calculations, pay adjustment calculations, Core Banking, tax payments (EFTPS) and wires
Cynthia P. Web-time, Mass time Entry (MTE) and Kronos support, Dual employment, Holiday pay verification, overpayment administration
Brenda Excess wage verification, Direct deposit processing, web-time support
Rosie W-4 and NC-4 processing, front office support, W-2 mailing and returns
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What’s New? NC House Bill 998
◦ Effective 1-1-2014 every ECU employee required to complete a NEW NC-4 State Employee’s Withholding Allowance Certificate
◦ Reduces NC income tax to flat 5.8% rate◦ Increases standard deduction◦ Eliminates personal exemptions◦ Eliminates many other deductions and tax credits
Self Service Banner: ◦ Employees can now view, submit and update
W-4 - Federal Employee’s Withholding Allowance Certificate NC-4 - State Employee’s Withholding Allowance Certificate
NC House Bill 4:◦ Requires ECU to fund a reserve account with the NC Division of
Employment Security to fund future unemployment claims◦ 1% of wages assessment Q3,Q4-2013 and Q1,Q2-2014
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What’s new?W-2 Reissue Request
Available under Forms on ECU Payroll web site
Paper checks are only available for pickup on the payroll date from 8:00 to 1:00 p.m. Mailed on pay date afternoon mail
New Template: Request to Reduce PayUpdated Payroll Web page with
instruction documents, FAQ
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What’s new?
March 12, 2014
Southwest corner of Reade and 2nd Street
No change to:◦ Mail Stop: 226◦ Phone: 252-328-6955◦ Fax: 252-328-0910
120 Reade StreetBuilding 133Financial ServicesGreenville, NC 27858
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What’s [email protected]
◦Questions on W-4, NC-4, W-2◦Questions regarding payroll tax
withholding Federal, State, Social Security
[email protected]◦Questions regarding temporary visa
holders, green card holders, 1042s
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What Payroll doesReview and input W-4, NC-4 and Direct
deposit formsUpload time and wages submitted through
Web-time, MTE and Kronos into BannerUpload deductions through automated
interfacesManually key adjustments submitted from
timekeepers/departmentsCalculate and key exceptions for
terminations, LOA, returns from LOA, job changes and other non-standard pay situations
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What Payroll doesCalculate and key payroll
reductions for overpaymentsWork exception reports generated
throughout payroll process◦FOAP◦Wages recorded in Kronos, Webtime,
MTE not loading to Banner◦Variances this semi to last◦Excess wages verification◦Tax compliance review
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What Payroll doesReconcile tax liability accounts Ensure timely and accurate
submission of Federal and State taxes and reports
Issue annual W2-Employee Wage and Tax Statements and 1042-Foreign Person’s U.S. Source Income
Manage failed Direct DepositsCollection efforts for employees
overpaid through payroll
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What Payroll doesn’t doChange names or SS#s in Banner-HRInput or change deductions-other than
taxes-HRManage liens, garnishments-HRManage or view leave records-DeptDetermine best way for processing
payment for unusual pay circumstance-IPS
Validate dates on EPAFs- IPS/Departments
Act as approver on EPAFs – FYI onlyMarch 12, 2014
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What Payroll doesn’t doUnemployment claims- Employee
RelationsReconcile or submit payment to other
vendors (e.g. Insurance, wage garnishments, retirement programs)-IPS
Reconcile payroll expense to the ledgerReview or reconcile Payroll History
reports Review payroll or labor suspense
accountsReview POSMAN reports
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What Payroll doesn’t do…Employment VerficationTo Obtain Proof of Employment Only the Verifier should follow these 3 steps:1) Please login to www.verifyjobhistory.com to register.2) You will need the following information:
◦ a. ECU Employer Code: 1252◦ b. The person’s Employee ID & Last Name OR the person’s First Name, Middle Initial, Last
Name & Date of Birth.
3) Pay for the transaction by credit card.
To Obtain Proof of Employment and Income:1) In addition to the steps 1, 2 & 3 above, the employee needs to provide an authorization code to access their information. (Employees generate an authorization code by visiting www.verifyjobhistory.com or calling 1-800-281-5260).
Special Instructions for Social Service Agencies1) Please login to www.verifyjobhistory.com to register.2) Once we qualify your agency, you may begin to receive results online or by fax.For additional questions or more information regarding the benefits of membership, please call:JobTrax Client Service CenterMonday – Friday; 8:00 am – 5:00 pm (EST)1-800-281-5260 or 1-440-247-1600
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Web and Mass Time Entry
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Note: This is APPROVERS
deadline…NOT students!
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Payroll Exception/Adjustments
Cut-off March 18th, but realize on March 21st there is a change…now what?◦Contact Payroll office◦Request Adjustment form◦Complete with signatures◦Return to Payroll BY DUE DATE for manual
keying◦Follow up to ensure hours/pay was included
in employee’s pay◦Do NOT re-submit hours/pay in subsequent
payroll through MTE
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Payroll Exception/Adjustments
Payroll typically has 5-6 days after WTE/MTE closes to finalize payroll.◦Holidays occasionally reduce timeline to just 3
daysPayroll must be finalized 3 working days
prior to Pay DateSome changes can be made between
WebTime, MTE deadlines and Payroll finalization dates.◦Late notice terminations/separations◦Late notice LOA◦Data entry correction on MTE
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Manual checksCannot be issued if there is no active
job for the employeeShould only be requested if waiting for next
semi-monthly pay causes the employee a financial hardship
Requires payroll to run the entire payroll process-isn’t as simple as “writing a check”
Payroll may deny request for manual check.Cannot be issued as a direct depositWill be available for pick up from 10 a.m. to
1:00 p.m. exactly one week following the regular semi-monthly pay day
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Manual checksContact payroll office Request Manual check formComplete with signaturesReturn to Payroll by DUE DATEDo NOT include hours in next
semi’s MTE.
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Self Service BannerEmployees can view history, current
status and # of allowances claimed and can now MAKE CHANGES TO:◦NC-4 effective December 9, 2013
Still have approximately 2,000 employees who have not submitted new form or verified changes
◦W-4 effective January 9, 2014◦If claiming EXEMPT must complete
paper form◦Using SSB at new employee orientation
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Paper Form-W-4
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Paper Form NC-4
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If an employee is claiming EXEMPT, Line 1 should be left blank.
Otherwise, Line 1 MUST be completed.
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Claiming EXEMPTMust meet BOTH conditions1) Last year had a right to refund
ALL federal income tax withheld because I had NO tax liability…
AND 2) This year I expect a refund of ALL federal income tax withheld because I expect to have NO tax liability.
Must be renewed annually and resubmitted by 15 February
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Paper FormsDefault is S0-Highest tax rateEncourage employees to utilize the
worksheet and keep copy for their recordsDon’t provide advice on number of
allowances or statusMust use 2014 formsPayroll will reject paper forms that are not
completed correctly or have conflicting information◦Status remains at Single Zero (or last W-4,NC-4
form on file)until corrected form is submitted to Payroll office
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When to file a new W-4REQUIRED:
◦Name change (after receiving SS card)◦Divorce, spouse takes a job,
dependent moves out of house◦Realize you are no longer EXEMPT.
OPTIONAL:◦Birth of child or adoption, spouse quits
their job◦Realize you are EXEMPT.
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Federal Tax Table-2014Standard exemption allowance
for 2014 is $164.60 times number of allowances
Banner uses this annualized tax table
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Supplemental Pay-2014IRS supplemental tax rate is 25% regardless
of filing status or allowances selected on W-4 NC-4 supplemental tax rate is 5.8%Supplemental Wages
◦ Dual Employment◦ Bonus and Incentives◦ Settlement Agreements◦ Awards◦ Vacation Payout◦ Severance◦ Longevity◦ Supplemental Taxable Benefits
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NC State Tax Table-2014
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Social Security Tax-2014FIC-FICA OASDI
◦Old-Age, Survivors, and Disability Insurance
◦Employee: 6.2% Employer: 6.2%◦Maximum taxable earnings for 2014 is
$117,000.FIM-FICA Medicare
◦Medicare hospital insurance part of Social Security
◦Employee:1.45%◦Employer: 1.45%
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Social Security Tax-2014
FIH-Additional Medicare Tax◦New in 2013-continued in 2014
◦Employee: .09% of wages in excess of $200,000/yr.
◦Employer: none
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Fed and State Pre-Tax Deductions
All deductions that say “Pre-Tax” 401K, 403b (not Roth) and 457
contributionsFlex dependent care spending,
Flex medical care spendingHealth insurance premiums TSERS state retirement, Fidelity,
Lincoln, TIAA and VALIC and “undecided” Employee contributions
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Social Security :Pre-Tax Deductions
All deductions that say “Pre-Tax”Flex dependent care spending,
Flex medical care spendingHealth insurance premiums
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Student FIC/FIM/FIH Exemption
Students working and enrolled at ECU may be temporarily exempt from SS taxes.
Based on # of hours enrolledEvaluated each pay period
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Enrollment Status
Minimum # of hours
Graduate 4
Medical 4
Undergraduate 6
Dental 10
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International EmployeesEmployees on a temporary visa are required to
visit the payroll office annually to do a tax assessment to determine taxation and potential eligibility for tax treaty benefits.
Employees who do not meet the substantial presence test for resident alien, can only claim one allowance for federal and zero allowance for state withholding, and will be taxed at the higher nonresident alien rate (some exceptions apply for Canada, Mexico, Korea, and India).
Green card holders and resident aliens for tax purposes are taxed the same as US citizen.
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International EmployeesIndividuals on temporary visa being taxed
as a nonresident alien may be exempt from FICA tax depending on the visa type (F-1, J-1, M-1, Q-1) used to enter the United States and compliance with the terms of that visa.
Individuals on temporary visa taxed as a resident alien may be exempt from FICA only if they meet the student FICA exemption which is the same for a US citizen that is based on enrollment/thesis.
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Kronos update Who?
◦ Every ECU employee who earns or is granted leave and/or tracks time
What?◦ Time, attendance and leave tracking system◦ Eliminates paper/excel leave records
When?◦ Steering committee formed◦ Rebuild implementation team◦ Upgrade to and train on most recent version◦ Developing phasing and implementation plan
Why?◦ Improve policy and FLSA compliance◦ Improve productivity and manual timekeeping◦ Eliminate paper leave records
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Why 86.67 hours?52 weeks X 40 hours week =
2080 hrs2080 hrs / 24 pays equals =
86.67 hrs per payPay periods range from 9 days to
12 days.Wage adjustments calculated
based on # of days worked/missed in pay period vs. 8 hours day times # of days
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Wage adjustment calculationJohn Doe retired on 22 February
and earns $1250 per payFinal salary calculated as 5/9 X
$1250
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Converting Minutes to Decimals
Banner deals with minutes as a decimalMTEs should be reported in decimals# of minutes/60 = decimal
◦ 15/60 = .25 30/60 = .50 45/60 = .75
Examples:◦6 hours & 30 minutes shown as 6:30 = 6.50 hrs◦5 hours & 15 minutes shown as 5:15 = 5.25 hrs◦4 hours & 10 minutes shown as 4:10 = 4.17 hrs
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Conversion Chart
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Leave ReportingPayroll does not have access to
leave records If employees miss work and have
no leave “on the books” , timekeepers are RESPONSIBLE for reporting hours missed to Payroll so that pay can be adjusted appropriately.
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Request to Reduce Pay
DATE # of HOURS
TOTAL # OF HOURS:
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REQUEST TO REDUCE PAYThis template should be used as an official request to the Payroll Office to reduce the salaried pay for an employee who has been absent from work and has no accumulated leave to offset their absence. This template may also be used for those employees who must have their pay reduced during the University Winter Break because they have insufficient leave time to cover the absence or for those employees who have the leave, but choose to have their pay reduced rather than take available leave.This template is NOT a substitute for the Official Leave of Absence (LOA) Form available on the HR/Benefits website which should be used for all Leave of Absences not covered by the examples provided above. http://www.ecu.edu/cs-admin/HumanResources/Benefits.cfm
This template should be completed by the Leave Clerk.
Send an e-mail request to [email protected] and [email protected] with the subject line “PAY REDUCTION REQUEST: EMPLOYEE NAME and BANNER ID#”.
COMPLETED BY: Please make the following adjustment to the semi-monthly employee per the request detailed below:EMPLOYEE NAME:BANNER ID#:(Detail each date and the # of hours to adjust per day separately. Insert more lines if necessary)
COMMENT:(Provide any additional information you feel may be helpful). DEDUCT FROM:____PP24 (if for Winter Break) ____NEXT PAY ____ PP ____(If you wish to deduct the pay over more than one pay period, please contact Payroll @ 252-328-4245)LEAVE CLERK TELEPHONE #:
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FMLA and Leave-including Intermittent leave or reduced work schedule
Must submit FMLA application and medical certification to the Benefits Office 30 days-2 weeks from start date of leave.
FMLA is UNPAID leave…must use vacation, sick, bonus, comp in order to remain in active pay status.
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FMLA and Leave-including Intermittent leave or reduced work scheduleEmployees on FMLA who exhaust
leave or with no available leave should be placed on Leave Without Pay using a Leave of Absence form.
Must make arrangements with Benefits Office regarding benefits while on LWOP
Should be closely coordinated with Payroll to ensure appropriate pay and avoid overpayment.
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Wage and hour laws“Non-exempt” covered by Federal
FLSA.Overtime for hours worked in
excess of 40 for single workweek.Non-exempt SPA employees paid
salaried wages, but must be compensated (comp time or pay depending on departmental policy) for hours worked over 40 in single workweek
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Wage and hour laws
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Week 1
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Week 2
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Week 3
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Week 4Assuming no hours worked on Saturday
3/16/13
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Adverse WeatherIf Adverse Weather is used…must use
vacation leave or must be made up within 12 months of date taken
When making up AW employee cannot work more than 40 hours…must make up during a week employee is out sick, takes a vacation day, holiday-Must repay using straight time hours
Must have system for keeping up with the AW weather leave taken and made up
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University ClosedEmployees paid for this time…coded as
UC on leave cards/time sheetsIf employee is asked to come in, they
will be paid for the hours they worked and they will get hour for hour to be used later
If an employee chooses to come to work, they will not be paid and will not receive hour for hour time off
Exception request must be approved by HR
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How can we reduce overpayments?
Complete Leave of Absence forms timely-WC, FMLA, etc.
Complete Termination forms timelyKeep leave records up to dateNotify Payroll of short notice
terminations immediately◦Even if leave records are not up to date and
require additional review/signatureNotify Payroll of employees in negative
leave situations or work missed with no leave “on the books”
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How can we reduce overpayments?
File EPAFs timely to end jobs, stipends, etc.
Ensure employees with jobs set up in advance actually begin assignments on target date
Ensure EPAF dates and pay factors are correct
Notify payroll immediately of death in service
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Collection ProcessFirst Notice: Employee notification of
overpayment◦ If current employee-payroll reduction ◦ If terminated-begin collection process
30 days: Second Notice10% penalty and 5% annual interest
60 days: Final Notice90 days: submission to NC Attorney
General’s office90 days: submission to NC Setoff Debt
Collection Program (SODCA) -taxpayer income tax refunds
120 days: submission to Collection agency
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Collection ProcessIf collected in same year,
employee pays back net wages
If collected in subsequent year, employee pays back gross wages
Job FOAP credited when payment is received. (May be closed FOAP)
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Resources: Payroll web site Staff listing Payroll Calendars SSB Instructions FAQs Forms
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UNC-FIT-Payroll KPI-You can help!
# of payroll adjustments (requests for manual checks)
# of paper checks vs. direct deposit◦ DD is mandatory…but the # of paper check being
issued is on the rise!# of new or rehired employees not paid in
current month-late EPAFSDollar value of overpayments to employees
◦ Over last three (3) quarters: 90 instances of administrative errors (e.g. late,
terminations, late LOAs, late EPAF and EPAF errors, etc) resulting in overpayment of approximately $130K
155 instances of reduction of pay due to negative leave resulting in overpayments of approximately $60K
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What can you do to help?Encourage employees who have a
name change to get a new SS card and present to HR
Include cover sheet with submissions to payroll letting us know sender and contact information
Encourage use of SSB for:◦W-2 consent◦Address change◦NC-4, W-4 review and changes◦Paystub review
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What can you do to help?Use the Comment section of
EPAFS, termination forms and LOA forms to add clarity.
Submit EPAFs timely and seek clarification if you are unsure of the dates to use.
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Discussion QuestionsHow do you ensure that your payroll expense $
$ are correct-additions/deletions from semi-monthly payroll
Are there tools/reports that you think would be beneficial to help you manage payroll transactions? Who uses them?
What could payroll do to improve our customer service?
Are there additional resources you’d like to see on the Payroll web site to help you with your job?
Why does Payroll office receive W-4, NC-4 for individuals who never have/get jobs?
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What can WE do to help?
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SUPPLEMENTAL SLIDES
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International Employees
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International Employees
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International Employees
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International Employees
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Mass Time Entry (MTE)Used to enter non-regular pay Accessed through One-StopEmployee PoolSubmitter/Approver/ProxySome restrictions to Earnings
codes
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Banner Security Accessfor Webtime, MTE
Step 1: One Stop > Tools > Employee >
Reporting StructureMake certain your supervisor has
“claimed you”.
If not, have supervisor go to Reporting Structure and key in your Banner ID
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Banner Security Accessfor Webtime, MTE
Step 2: Accept your supervisorOne Stop > Tools > Employee > Reporting StructureClick on “Approve”
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Banner Security Accessfor Webtime, MTE
Step 3One Stop > Tools > Banner > Banner Security Request > Request Security > Human Resources
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Banner Security Access
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Special EarningsPaid on First Semi:
◦Longevity◦Extra pay for OT, Shift, Beeper and Longevity◦SOM MTE
Paid on Second Semi:◦E/C 909-NCFlex Life Insurance Imputed Income,
calculated on coverage over $50K based on employees age and amount of coverage.
Paid on Both Semis:◦Non-cash
Car/Phone Allowances Taxable SFB Med Direct Bill
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Pay Information
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