W2 Reporting for 2014 December 15, 2014

1. W2 Reporting for 2014December 15, 2014

2. 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

3. Agenda • Making Corrections • Which Payroll to Use • Reports • What Balances to What • Helpful Hints • Check List • Final Submission

4. Essential Dates

5. Essential Dates

6. Essential Dates • District Responsibilities: • December 15 - Initial Verification of Payroll Data • In Production • December 15-19 – All Pay/Cash Related Corrections Made • In Production • December Regular – Due Noon – Friday, 12/19/14 • December 20-January 12 – All Possible Corrections Done • In Production • W2 Correction Pay Cycle – Due Noon - Monday, 1/12/14 • December 20 - January 14 – Final Review of Data

7. Essential Dates • District Responsibilities: • January 14 – Final Verification of W2 Data • Verification Reports due to Erin in Business Services Due by 4:30 p.m. • Pay01 Payroll Summary • Pay05 Monthly Tax Summary • Pay 26a Employer W2 Copy • Pay 27 W2 Summary • Pay 31 W2 Errors • Pay 99 Payroll Snapshot

8. 2014 W2 Reporting • Updated W2 Tutorial • 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

9. Helpful Publications • Class Handouts • Posted to Escape Home Page • Escape • Chapter 20 – W2 Reporting • Escape How To (Online Chapter 20) • W2 Tutorial (New with 14.3 version) • WWW.IRS.Gov (Website) • 2014 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

10. Review Set Up • Review Deductions • HR/Payroll – Setup – Deductions Management • 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)

11. Review Set Up Review for correct set up of W2 box and category

12. Review Set Up • W2 Pension Field • If reportable amounts to STRS/PERS, automatically set • Can adjust now for all of 2014 • 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

13. 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 2014 • Box 14 Defined by District • Notify IT Business Support Analyst if changes needed

14. Review Set Up Review for correct set up of W2 Box and Category

15. 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

16. Review Set Up Review for correct set up of W2 Box and Category

17. 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

18. 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 2014 is .56 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

19. 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 2014 • W2 Addon for Benefits outside Escape (RESIG payments) • Medicare, OASDI, PERS/STRS adjustments • Use Z-Type Addons if Necessary • Increases subject grosses causing additional taxation • Dependent Child Care if in Excess of IRS Limit

20. 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

21. 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 in Business Services NOTE: ESCAPE version 14.3 has made changes to view and/or edit Social Security numbers.

22. 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

23. 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

24. 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

25. 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

26. 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

27. Finding Problems Note the Starting and Ending Dates rather than Fiscal Year Can be run by Deduction Id to verify within IRS limits

28. Finding Problems Note the Calendar date rather than the Fiscal Year entry W2 Filtering

29. Making Corrections • Decide when issue should be corrected - December Regular • If adjustment will AFFECT PAY/CASH • Call Business Services or IT Analyst for help - W2 Correction Payroll • ONLY Non cash items

30. 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

31. Making Corrections • Data can be adjusted in Adjust Pay • HR/Payroll – Payroll – Adjust Payroll • Make Any Adjustments Needed Questions? Contact Erin in Business Services or Tina and Marie, IT Business Support Analysts

32. Making Corrections • Additional Pay for W2 Correction Pay Cycle • HR/Payroll – Employment - Additional Pay • Fiscal Year = 2014 • Description = W2 Adjustments • Pay Cycle = W2 (W2 Adjustments) • Pay Period = 12/25/14

33. Making Corrections • Data can be adjusted in Adjust Pay • HR/Payroll – Payroll – Adjust Payroll • Select W2 Pay Cycle • Make Any Adjustments Needed • Cannot Result in a Cash Entry • Use Repay Deduction

34. Reports/Processes • Other Helpful Reports: HR/Payroll – Reports – Payroll • Pay 01 - Payroll Summary

35. Reports/Processes • Pay 26 – W2 Employer Copy • Should Balance/Match to Pay 27

36. Useful Reports • Pay05 – Monthly Tax Summary • Should balance to Pay27 by Category

37. Reports/Processes - Pay 27 – W2 Summary • Run for Final Submission

38. Reports/Processes Pay 31 - W2 Errors as Report • Must be Error Free for Final Submission

39. 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 2014 • Domestic/Lifeadj/Mileage • Always Run Reports With Full 2014 Year

40. Helpful Hints • For 2014, 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 2/15/15

41. W2 Checklist • December Payroll • Corrections of miscellaneous, non-cash issues • Entries that will affect cash payments to employee - requires use of Repay Deduction • Additional Pay Batch: W2 Correction Payroll • Requires special pay cycle • No entries that affect CASH.

42. Final Submission • January 14, 2014 by 4:30 p.m. • Pay01 Payroll Summary • Pay05 Monthly Tax Summary • Pay26a Employer W2 Copy • Pay 27 W2 Summary • Pay 31 W2 Errors • Pay 99 Payroll Snapshot • Submit to Erin in Business Services You can submit the reports early to Erin in Business Services for early review.

43. Final Submission Did you Know? Districts can review the Pay31 –W2 Error Report anytime • Don’t wait until the last moment!!!