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  • Y:\YEAR END\Calendar\CY2015\USPS\USPS procedures CYE15.docx

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    2015 USPS CALENDAR YEAR END PROCEDURES

    PRE-W2 PROCESSING

    Please refer to CYE supporting documentation on the NCC website:

    http://www.nccohio.org/fiscal/cye/usps

    NC1 Payments/NC3 Payments

    ____1. Be sure to run your NC1 pay types for Life Insurance premiums over $50,000 before the last

    payroll of the calendar year.

    ____2. Non-Cash taxable fringe benefit payments. Do you have NC3 payments, any benefits paid through

    budgetary, that should appear on the W2?

    USPSDAT/DEDNAM RECORDS:

    ____1. Check W2 abbreviations on city DEDNAM records. The W2 form will truncate the abbreviation to

    six characters even though the field in DEDNAM allows twelve characters.

    ____2. For cities using either RITA or CCA to report city tax information, verify the tax entity code, the

    appropriate RITA and/or CCA description, and that these fields are updated correctly on the

    USPSDAT/DEDNAM records. The most recent code listings for RITA and CCA cities can be

    found in the supporting documents on the NCC web page.

    ____3. For districts reporting to the City of Lakewood, Lorain and/or Bedford, the tax information should be

    filed electronically. NCC will submit this data on your behalf. Make sure to send NCC your

    completed tax reconciliation sheet and we will include it with the file transmission.

    Insure the correct tax entity code is in the city tax record in DEDNAM LAKEW tax entity code for Lakewood

    LOR tax entity code for the Lorain

    BEDFO tax entity code for the Bedford

    AMHER tax entity code for the Amherst

    BRUNS tax entity code for Brunswick

    ____4. Insure the OSDI four digit code appears in the W2 abbreviation field in DEDNAM, followed by

    two letters of the school district. The four digit OSDI code is required on the W2.

    http://www.nccohio.org/fiscal/cye/usps

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    ____5. Review Tax Board Amounts fields on city tax records in USPSDAT/DEDNAM

    The Tax Med/FICA pickup flag should be a Y if the city taxes Medicare pickup wages.

    Medicare pickup is added to the city total and taxable gross amounts; employee pays tax

    after the fact, IF deduction 694 is not included in the Tax Board Amount field.

    If Tax Board Amounts is a Y and the deduction code being taxed is listed, tax is

    withheld during the payroll process. If Medicare Pickup, deduction 694, is listed, no

    Medicare pickup is added to the city wages, even if the Tax Med/FICA pickup flag is Y.

    Extra tax is paid throughout the year. Make sure you enter the applicable deduction

    codes to be included as taxable. (Ex: 690, 691, 694) Regular payroll withholding will

    begin with the payroll immediately following the modification of the city DEDNAM to a

    Y and the listing of the deduction that is taxable.

    ____6. Verify all annuities are coded with the proper annuity type in DEDNAM. Retirement records of

    590 and 591 should be coded as an annuity type B (401 (a)). If you are unsure of the type of annuity,

    contact the annuity company.

    ____7. Health Savings Accounts DEDNAM record must be set to an annuity type of I for Board and

    Employee voluntary contributions AND Include as employer-sponsored health coverage?: is

    answered as N. Use MASCHG/BRDANN routine (HSA) even if there are NO employee

    contributions. HSA premiums will be marked as an annuity type D if they are 125 non-wages

    and will follow normal health deduction rules. The HSA premiums should be marked as Y to

    Include as employer-sponsored health coverage?

    ____8. A prompt and flag were added to the REG and ANN deduction types in DEDNAM for Employer

    Sponsored Health Care. If DEDNAM record has marked Include as employer-sponsored health

    coverage?: Y then the YTD deduction totals will be included on the Employees W2 as health care

    costs (Employee and Board portions).

    USPSCN/DEDSCN RECORDS:

    ____1. Verify the Employ/Residence field on the DEDSCN for all RITA and CCA city deductions.

    Residence = R, Employment = C. If employee is bothmark as C.

    ____2. Process or make any necessary changes to the YTD gross pay, YTD taxable gross pay, and/or

    deductions for the W2 forms for Special Payments.

    Sources of these changes may be:

    Taxable Fringe Benefits employee reimbursements

    NC3 pay type may be used during a payroll to withhold taxes from employee reimbursements

    Life Insurance in excess of $50,000

    (Should be processed as NC1 during normal payroll before year end)

    Adoption Assistance

    Third Party Sick pay

    Leased Vehicles

    Annuities identified as insurance. (your carrier will notify you)

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    ____3. If an employee has reportable dependent care information that needs to appear in Box 10 of the

    W2 form, there are two ways of reporting:

    If the DPCARE deduction type in the DEDNAM is being used for the payments, no further corrections are necessary

    If the DPCARE deduction type is NOT being used, enter the dependent care amount in the dependent care field on the 001 Federal DEDSCN record

    ____4. The Pension Plan flag must be filled in on the Federal deduction record. This field will

    determine whether or not the pension plan box on the W2 form should be checked. The values for

    the field are:

    A = Automatically checks the box if W2PROC finds an active retirement record for an employee.

    Y = Yes, indicates to W2PROC to always check the pension plan box.

    N = No, means to never check the pension plan box.

    If severance is paid in the year after retirement, the box should not be checked if severance is

    the only payment on the W2. However, if the individual is re-employed in the following

    calendar year, the box will need to be re-checked.

    If students waive their enrollment opportunities to SERS and STRS, the "Pension Plan" flag

    should be set to a "Y" for the first year of employment. If they work in future years, then the

    box should not be marked so the record will need to be changed to an N.

    If Board members elect to contribute to FICA, they are not considered eligible to participate

    in SERS so the box should be marked N or could be an A because there will not be any

    retirement record on file so it will automatically know not to check the box. If Board

    members elect to contribute to SERS, then the box can be checked Y or A and must

    have active SERS retirement DEDSCNs.

    ____5. A deduction record (DEDSCN) may need to be added to include health insurance payments received

    via personal check/cash from employees for Employer Sponsored Health Care that are not deducted

    from the employees paycheck. Typically, this would be a REG deduction with a 600 series

    deduction code marked as a Y to Include as employer-sponsored health coverage? on the

    DEDNAM record.

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    MONTH END PROCEDURES

    ____1. Pay all deductions and complete month end procedures as normal.

    Run PAYDED to produce a non -zero deduction report. (Use the projection option, set the payment

    option to A and leave the pay cycle and deduction code fields blank.) This report will verify that

    there are no outstanding deduction amounts.

    ____2. SERS Retirement: Run the RETIRE program and select the SERSREG option.

    Do NOT say Y to create the SERS tape at this timebalance all the way

    through the W2s before saying Y. Saying Y to the tape will CLOSE the month of

    December and further corrections or adjustments cannot be made for the

    Calendar Year.

    Verify the total contribution amount listed on the report equals the total of the deduction checks for the withholding plus any warrant checks written for pick-up on pick-up.

    Verify retirement contributions by employee equal earnings multiplied by the applicable retirement percentage.

    Review retirement service credit days for all employees on the report. YTDRPT can also be run to help verify days on the report.

    Verify New Hires have been reported. Verify that you have either submitted this information through the SERS website by uploading the SERSHIRE.SEQ file or manually entered the

    information for employees listed on the report as new through the SERS website.

    ____3. STRS Retirement: Clear STRS MTD field (450 record) using the STRSMONTH program.

    ____4. Balance the payroll account.

    Run the CHKSTA or PAYREC programs to reconcile checks.

    Run CHKSTS to generate an outstanding check register.

    ____5. Run BENACC (if applicable) to accrue sick leave and generate a benefit balance report.

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    QUARTER END PROCEDURES

    BALANCE QRTRPT

    ____1. Generate QRTRPT the first time by saying "N" to report for individuals.

    This will allow you to have your deduction totals readily available to check for accuracy.

    While checking