payroll user group · 3/13/2019 · state payroll director, ctr ... state payroll director, ctr...

Payroll User Group

March 13, 2019

Welcome

Kevin McHughState Payroll Director, CTR

CTR Payroll User Group

WelcomeKevin McHugh Interim Deputy Comptroller

Daylight Savings Time

Welcome



HR/CMS 9.2

Statewide Payroll TeamOffice of the Comptroller

New Available Functionality

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Travel Reimbursements– Form now includes ComboCodes!!– Core user security access– Pilot has been successful in limited use– Can be activated by department; looking for volunteers– Fluid travel reimbursement on-line form to track up to 8 separate

reimbursements (i.e. mileage, hotel, meals) within a single request. Employee can attach receipts to reduce paper

– Once submitted, the approvals are sent directly to employee’s supervisor. Supervisors can also select another secondary approval authority within their department

– Integrates with timesheet so that the system provides an end to end automated process. No additional approvals are required on the timesheet

2018 Tax Forms

Pay Yourself First

"Pay yourself first" is the first rule of saving money—and Metro@work makes it easy. In addition to traditional direct deposit of your paycheck to your checking account, you may also automatically fund many of our savings accounts:

► Vacation and Christmas Club Accounts - Put money aside for travel or gift-giving.

► My Reward Savings - is a companion savings account that pays a higher rate of interest when it is linked to a My Reward Checking account.

─ Earn 2.00% APY* on average daily balances up to $3,000.00─ Must be linked to My Reward Checking

Boost Your Financial IQPersonal finance is more than just getting and spending. It's about setting goals, making plans and working to achieve your dreams.

► When your workplace offers Metro@work, we'll make regular visits to present educational programs and "Lunch & Learn" seminars where you'll learn more about managing your money day-to-day, investing for the future, and planning for your later years.

New 2019 Seminar Topics

Metrocu.org/state

Mary [email protected]

877-MY-METRO x 3504

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SMART Plan Agenda

Presented by Rob Young, Manager, Participant Engagement

NEW - E-delivery NEW - Plan Fees PEC Enrollment (online enroll) Active Choice form SMART Plan updates Questions

New – E-Delivery

WHY?

Faster Delivery

Security

Less Paper!

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New – E-Delivery

Important notes:

Actual statements are NOT emailed; only reminders

Simple to opt out of E-Delivery; online or Call Center

Don’t forget the Smart phone app is even easier

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New – SMART Plan fees

Only Full-time participants, effective March 1:

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PEC (Online) Enrollment

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PEC (Online) Enrollment

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More efficient, paperless

Still available:Enroll through Active Choice Enroll with traditional Enroll form

Active Choice Enrollment

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Updates

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2019 Contribution Limits

New Payroll Guides available

“Termed with Pay” issue resolved

Re-hire Dates

2019 New Contribution Limits

The limit on elective deferrals has increased to $19,000.

The age 50 catch-up amount for participants aged 50 remains at $6,000.

The new limit for participants utilizing the Special Catch-up program is $38,000.

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Questions?

Thank you

• Flexible Spending Account (FSA) Program• Coordinator Training• Benefit Fairs

Payroll User Group MeetingMarch 13, 2019

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Benefit Strategies (BenStrat) New contract for FSA Plan Administrator effect 7/1

Health Care Savings Account (HCSA) Dependent Care Assistance Program (DCAP) A new lower, $2.00 monthly administrative fee

Improving Business Process for Coordinators Introducing e‐forms for enrollment, status changes, payroll error refund requests, etc.

No more tracking FSA paper forms!!! BenStrat will takeover FY2019 grace period and FY2019 claims processing effective July 1, 2019

Attend Coordinator Training for more details!

New FSA Administrator

Improving Members Experience• FY2020 – All enrollments are online!• One Card and One Login

• GIC’s FSA program– Health Care Savings Account (HCSA) debit card– Funds available July 1, 2019

• Office of the Comptroller, Commuter Choice– Qualified Parking and Transit Debit Card– Funds available July 16, 2019

• Watch for emails from [email protected] to coordinators and participants

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Transition to Benefit Strategies • ASIFlex is the FY2019 plan contact until June 30, 2019

• There will be an account settling period prior to the transfer of FY2019 account balances to Benefit Strategies

• ASIFlex HCSA debit cards will be shut off June 17, 2019• FY2019 HCSA/DCAP claims will not be processed June 16‐30, 2019

• BenStrat will administer FY2019 & FY2020 plans– Starting Monday, July 1, 2019:

• BenStrat accepts and begins processing FY2019 claims for services/purchases during settling period (June 16‐30) for HCSA and DCAP

• New BenStrat Debit Card will have FY2019 & FY2020 HCSA Funds• Members can view their account information using BenStrat’s mobile app and

member portal

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GIC Fiscal Plan Year 2020Open Enrollment: April 3 – May 1, 2019Plan Year: July 1, 2019 – June 30, 2020

2 ½ Month Grace Period: September 15, 2020Claims Filing Deadline: October 15, 2020

HCSA $250‐$2,700DCAP up to $5,000 per plan year*

(*Maximums: $96.15 Weekly ; $192.30 biweekly)

FY2020 Coordinator Trainings

How to register:

Email [email protected] by Friday, March 15 when you plan to attend. Be sure to include any guests you may be bringing.

Capacity is limited and the venues are filling up fast!

Annual Enrollment April 3 – May 1, 2019

FY2020 Benefit FairsAll are welcome! Please share dates with your staff.

Annual Enrollment April 3 – May 1, 2019

Commuter Choice – Transit and Parking

Presented by Jasmine ShamerBenefit Strategies LLC

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• For the 2019 tax plan year, the monthly pre‐tax max limit for both the Mass Transit and Parking benefits has increased to $265, with Federal being $125 and State being $140

• Every employee that’s enrolled in the commuter Transit and/or Parking benefit receives a Monthly Balance Reminder email from Benefit Strategies – this is a quick prompt for members to login to their member portal and check their balance. Members can also download the Benefit Strategies mobile app for quick and easy access to their balance or they can go through our phone IVR system # 603‐647‐4666 which is available 24/7: option 2 for Customer Service ‐ option 1 for Commuter Choice Plan – option 2 for Balance ‐ enter your full Social Security Number followed by #

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Transit and Parking Calendars To enroll in the commuter Transit or Parking benefit, members must complete the Online

Election Change Form here: https://www.benstrat.com/ctbform/index.php When making a Transit or Parking change through the Online Election Change Form – there

are links to the 2019 calendars as seen below on the form, please print them for quick and easy reference to important deadlines, or you can also find the calendars on the Benefit Strategies website here: https://www.benstrat.com/clients/commonwealth/

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Transit Election Change Process Calendar for 2019

The deadline to submit the May 2019 Transit Election Change Form to Benefit Strategies will be 4/10/2019 and PR deduction will be reflected on Friday 4/19/2019 check

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Parking Election Change Process Calendar 2019

The deadline to submit the April 2019 Parking Election Change Form to Benefit Strategies is tonight Wed 3/13/2019 and the PR deduction will be reflected on the next Friday 3/22/2019 check

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No Form, No Change!

Benefit Strategies cannot assume that members want or need their PR contributions to be changed (increased/decreased/stopped), therefore the Online Election Change Form must be completed with the correct amount in order for PR Coordinators to process those changes in the PR systems

Members cannot and should not print the Online Election Change Form and fill it out by hand – it must be submitted electronically through the Benefit Strategies website

Help us help your employees – if you receive the automated email notification from Benefit Strategies with the attached completed Online Election Change Form, and you realize that the listed employee does not belong to your agency – please alert your Account Executive Jasmine Shamer @ Benefit Strategies so she can inform the employee and request a corrected form be completed

Link to the Online Election Form https://www.benstrat.com/ctbform/index.php

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Stats as of 3/11/2019

Extra funds that are not being used by your employees, there are 166 members with more than $500 in their commuter Transit or Parking account, in total $163,202.05:

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Over $500 Total # of EE's Division

$531.00 1 AGO1000

$2,084.00 3 ANF1000

$3,808.00 4 BHC0001

$5,748.00 6 CPC1000

$4,187.00 4 DCP

$2,126.00 3 DCR

$1,416.00 1 DMR1000

$3,438.00 5 DOR

$9,716.00 12 DOT1000

$5,207.00 7 DPH0294

$3,493.00 5 DSS0993

$1,571.00 1 DYS1980

$7,235.00 10 EHS0100

Over $500 Total # of EE's Division

$6,094.00 8 EHS6000

$15,156.00 19 EOL1000

$3,037.00 5 EQE0427

$9,318.00 9 ITD0001

$2,892.00 3 MBT1000

$2,213.00 4 MCA9999

$7,762.00 8 MRC9000

$3,890.00 4 SJC2000

$9,278.00 13 TRC

$1,043.00 2 TRE1400

$13,579.00 17 UMS0182 Boston

$1,903.00 2 VET1000

$2,564.00 4 WEL6000

MBTA Fares Increase 7/1/2019 MBTA link for all changed fares can be found here: https://www.boston.com/news/commute/2019/03/12/new‐2019‐mbta‐fares‐increase

Benefit Strategies will send out blast emails through Constant Contact to all enrolled Transit members with instructions on how to increase their commuter Transit payroll deductions for the 6/14/2019 check

Members that need to increase their payroll deductions through the Benefit Strategies website election form, must submit the form no later than 6/05/2019, and make sure to select from the drop down July 2019 benefit month – you do not have to wait until June to do this, you can submit now, but make sure to select from the drop down benefit month the month of July 2019

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Contact Information for Benefit Strategies

Your dedicated Account Executive:Jasmine Shamer

HR/PR Coordinators: [email protected]: [email protected]

HR/PR Coordinators: (603) 232‐8059 direct lineCustomer Service: 877‐353‐9442

Fax#: 603‐647‐4668Website: www.benstrat.com

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The Massachusetts State Employees’ Retirement System

Payroll User Group Meeting - March 13, 2019

Office of State Treasurer Deborah B. Goldberg mass.gov/retirement

The Massachusetts State Employees’ Retirement SystemYou Serve the Commonwealth. We Serve You.

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Points of Discussion

• Deducting Retirement Contributions on Retroactive Earnings

• Deducting Retirement Contributions on Ineligible Earnings

• Providing Retiree Salary Information to the MSRB



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Deductions & Retroactive Earnings

• Retroactive deductions should not be processed as make-up payments. Retirees are not allowed to buy back service using make-up payments.

• Retroactive earnings must have retirement deducted.



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Earnings Not Subject to Retirement

• Deductions taken on overpayments to members:1. The member is not entitled to a refund from the

MSRB, because they were not entitled to these earnings.

2. The member’s employer must submit a receipt voucher to take back deductions on overpayments.

• Please note: 960 hour employee earnings are not subject to retirement.



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Reporting Retiree Salary Information

• Salary rates must be reported as they were scheduled to occur not when the retroactive compensation was received.

• Salary rates reported incorrectly cause accounts to appear as though excess retirement deductions were taken in error.

• MSRB representatives must contact agency payroll personnel to resolve these discrepancies, which then delays the retirement process.

o The process of



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Example: Salary Rates Reported Incorrectly

• A member retires effective June 30, 2018. This member contributes to the MSRB at a flat rate of 7%.

• The scheduled salary rate from 1/7/18-6/30/18 was $55,000, but the member was not compensated at this rate until pay period beginning on 3/18/18. The retroactive compensation due is included in the member’s check for pay period 3/18/18 - 3/31/18.

• The agency reports salary rates as $50,000 from 1/7/18-3/17/18 and $55,0000 from 3/18/18 - 6/30/18.



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Example Continued – Deduction Balance

1/7/18 - 3/17/18

1. $50,000 x 7% = $3,500.00

2. $3,500/26 = $134.62 per pay period

3. 5 pay periods occur from 1/7/18 - 3/17/18.

4. $134.62 x 5: $673.10 (expected deductions)

5. $673.10 was received during this period

6. $673.10 - $673.10 = $0 (no variance)



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Example Continued – Deduction Balance

3/18/18 - 6/30/18

1. 3/18/18 - 6/30/18: $55,000 x 7% = $3,850.00

2. $3,850.00/26 = $148.08 per pay period

3. 7.5 pay periods occur between 3/18/18-6/30/18

4. $148.08 x 7.5 = $1,110.60 (expected deductions)

5. $1,177.90 (deductions received)

6. $1,177.90 - $1,110.60 = +$67.30 (variance) ??



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Example: Salary Rates Reported Correctly

• Agency reports salary rate as $55,000 from 1/7/18-6/30/18.

1. $148.08 per pay period

2. 12.5 pay periods (1/7/18-6/30/18)

3. $1,851.00 (deductions expected)

4. $673.10 + $1,177.90 = $1,851.00 (received)

5. $1,851.00 - $1,851.00 = $0 (no variance)



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Toll free (within MA only)(800) 392-6014

E-mail: [email protected] or

[email protected]/retirement

Contact us

MAIN OFFICEOne Winter Street, 8th Floor

Boston, MA 02108Tel. (617) 367-7770 Fax. (617) 723-1438

REGIONAL OFFICE436 Dwight Street, Room 109A,Springfield, MA 01103Tel. (413) 730-6135Fax. (413) 730-6139

Walk-in Appointment Hours: 10:00 a.m. – 3:00 p.m.



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Questions?

The Massachusetts State Employees’ Retirement System

Payroll User Group Meeting - March 13, 2019



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Points of Discussionhttps://youtu.be/Psq3IGlS7DE

• How to properly fill out a Commonwealth Agency New Member Enrollment Form;

• Employers must use the most current MSRB forms which are posted on the MSRB website;

• It is extremely important that employers return the New Member Enrollment Form in a timely manner.



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Toll free (within MA only)(800) 392-6014

E-mail: [email protected] or

[email protected]/retirement

Contact us

MAIN OFFICEOne Winter Street, 8th Floor

Boston, MA 02108Tel. (617) 367-7770 Fax. (617) 723-1438

REGIONAL OFFICE436 Dwight Street, Room 109A,Springfield, MA 01103Tel. (413) 730-6135Fax. (413) 730-6139

Walk-in Appointment Hours: 10:00 a.m. – 3:00 p.m.

3/13/2019



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Questions?

Welcome



Calendar Year Wrap Up


2018 2017 2016 2015 2014 2013 2012

Box 1Federal

Taxable Wage $5,404,564 $5,269,869 $4,696,071 $4,758,687 $4,501,969 $4,279,015 $4,072,242

Box 2 Federal Tax $682,402 $776,525 $676,019 $669,238 $627,667 $587,110 $553,514

Box 5Medicare

Taxable Wage $5,756,766 $5,524,877 $4,830,845 $4,787,707 $4,425,831 $4,124,196 $3,839,933

Box 6 Medicare Tax $83,529 $80,166 $70,080 $69,458 $64,197 $59,812 $55,691

Box 16State Taxable

Wage $5,412,161 $5,754,339 $5,170,022 $5,236,897 $4,949,269 $4,701,327 $4,469,058

Box 17 State Tax $283,331 $275,425 $246,719 $251,958 $239,604 $229,480 $217,673

TOTAL W-2 Employees 117,270 118,637 113,205 115,406 114,238 112,730 110,031

HR/CMS W‐2 ($ in Millions)2018 includes MBTA and MSBA

Welcome



Cybersecurity Update


What Happens?

• Department employees or students receive e‐mails containing links or attachments

• These can be various malware (ransomware/ spyware), phishing, spoofing or eavesdropping attacks

• The employee/student clicks on the link and the system is compromised with a virus, worm, Trojan horses

Response?

• When any network system is compromised a report must be made to Statewide Risk Management Team (SRMT) immediately

• All access to Commonwealth enterprise systems will be shutoff (MMARS/LCM, HR/CMS, CIW, Mobius Luminist)

• SRMT will work with the department to develop a mitigation and training plan to work towards regaining department access

Return of Controls

• Deployment of “safe” computers with clean installation of Microsoft Windows 10, located in secure offices

• Safe computers must be connected to a dedicated Comcast Business Class Internet Service on a separate local area network

• Must have DeepFreeze and Appguard security software installed and active

• Each authorized user will have non‐administrative user accounts on the safe computer

• Screensavers will be configured to automatically lock after five minutes of inactivity

• Department will provide the IP address of all safe computers to CTR • Department will maintain the security patch levels within a week of

release• Online banking will only be performed on safe computers• Department will provide monthly certification that they are in compliance

with these protocols• Quarterly meetings with CTR to evaluate progress on tactical and strategic

recommendations

Welcome



Payroll Reminders


Student Interns and Payroll

• All student interns should be hired and paid through HR/CMS

• Regardless of payment type (hourly wages or stipends) they must be paid through HR/CMS

• Job codes are available for student interns

Compliance Areas and Policies

• Department needs to read and understand Payroll Policies• Department needs to follow Payroll Best Practices and Job

Aids for creating and reviewing payroll transactions• Department needs Internal Control steps to identify areas

of risk and prevention of errors– Paying wrong amounts– Paying employees late– Using wrong pay codes

• Department needs to follow payroll adjustment procedures – Correcting overpayments/underpayments– Correcting taxes: W‐2C and 1099– Proper use and reconciliation of DYNACash

Recent Audit Findings

• Commonwealth departments (particularly in Law enforcement) made payments to employees which it referred to as “uniforms and laundry”

• These payments were not otherwise taxed nor reported Internal Revenue Service (IRS)

• The Commonwealth advised that these payments represented clothing allowances for “plain clothes” and were adaptable for general wear

IRS Law

• Internal Revenue Code provides that all compensation, regardless of source is taxable

• Fringe benefits are a form of pay for the performance of services and represent wages unless specifically excluded

• Ordinary and necessary business expenses paid or reimbursed by an employer on behalf of an employee are excludable to the employee, if payments meet the rules of an accountable plan

Treasury Regulations

• Accountable plan requirements have three components:– Business connection– Adequate accounting– Timely return of excess

• Clothing allowances and reimbursements may be excluded if the clothing is required by the employer and is NOT worn nor adaptable for general usage

Remedy

• In December, CTR changed the setup of the reimbursement earn code B08 to taxable

• If departments are reimbursing employees for clothing they must assure the purchases compliance with the accountable plan

• Clothing which is adaptable for general use (sweatshirts, jeans, athletic shoes, etc.) are not eligible for non‐taxable reimbursement

Welcome



Payroll Close/Open Timeline


Fiscal Year Reminders

• Prior to June 1: Identify any FY20 COA changes, e.g. program codes or appropriation changes

• May 1: Start entering PH documents• June 1: Position Rules Roll Departments can begin requesting FY20 Rules

• Date TBD ‐ PH over $25K requires ANF approval for Executive Departments

Key Dates ‐ Last Payroll FY19

• Pay Ending June 22, 2019: Last full Payroll in FY19• June 23: First day of Split Year Payroll• June 30: Last day for entering PH and Last day for HR/CMS data entry

• Last Day for PRRV (Cash Cut off of 7/1) for FY19• July 1: Beginning of FY20• June 28: Pay Day for Last full PP in FY19

Mass Rules Roll ‐ MPOAA

• On June 1st, CTR will either approve or reject all pending POAA Rules requested for FY19 Activity and will Process the MPOAA program. Any new rules needed for FY19 or FY20 Activity can be entered after June 4th.

• New draft rules for FY20 will be in the LCM document catalog

Accounts Payable

• Payroll Holds are object code based so departments need to encumber based on estimated payroll dollars i.e. A01, A08, B02, etc.

• All PH documents will workflow to CTR Payroll in order to assist departments in proper PH documents set‐up.

• The PH document must include a justification in the Comment.

HR Reminder

• Be careful when rehiring employees whose HR/CMS history (Object Code, Account, Unit) shows Accounting information no longer valid in the new FY.

• It must be corrected as of July 1 in the new FY.

Questions?

Thank You!!!

payroll user group · 3/13/2019 · state payroll director, ctr ... state payroll director, ctr...

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