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OSPA USERS FORUM Year-End Users Forum November 16, 2007.

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Presentation on theme: "OSPA USERS FORUM Year-End Users Forum November 16, 2007."— Presentation transcript:

1 OSPA USERS FORUM Year-End Users Forum November 16, 2007

2 2 Agenda Introductions – Katherine Bremser Introductions – Katherine Bremser Year End Dates – Allison Absher Year End Dates – Allison Absher Overpayments – Kathyron Parsons /Pauline Lewis Overpayments – Kathyron Parsons /Pauline Lewis Check Reversals – Maria Stalik Check Reversals – Maria Stalik Fringe Benefits – Sharon McKeehan / Katherine Bremser Fringe Benefits – Sharon McKeehan / Katherine Bremser Year-end Timeline – Cheryll Luth Year-end Timeline – Cheryll Luth

3 Its All About the Date! At Year End,

4 4 I went to this charming restaurant with a guy last night …. Oh wait, not that kind of date! Oh wait, not that kind of date!

5 5 Three Kinds of Dates: Constructive Receipt Constructive Receipt P010 Dates P370 Check Dates P370 Check Dates

6 6 Constructive Receipt What is It? Simply put, Constructive Receipt is the day the employee will have monies available to her. This can mean a physical check that was mailed, ACH deposit that was sent, or fringe benefit that was received.

7 7 Heres another way to look at it: Check the calendar – when should the employee receive her pay?

8 8 If you answered 2007 to any of the above, then Constructive Receipt is in If you answered 2008 to any of the above, then Constructive Receipt is in If a deposit was sent ACH, will the settlement date be in 2007 or 2008? (Hint: Decembers ACH settlement date is 1/2/08) If a deposit was sent ACH, will the settlement date be in 2007 or 2008? (Hint: Decembers ACH settlement date is 1/2/08) If a physical check is mailed or delivered, is it reasonably expected to reach the employee in 2007 or in 2008? If a physical check is mailed or delivered, is it reasonably expected to reach the employee in 2007 or in 2008? If the employee received a fringe benefit such as meals, clothing allowance, etc. – did they have the use of that benefit in 2007 or in 2008? If the employee received a fringe benefit such as meals, clothing allowance, etc. – did they have the use of that benefit in 2007 or in 2008?

9 9 Constructive Receipt Summary Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of 2008.

10 The Great Date Mate Or, P010 Final Check Dates – Why They Matter, When to Set Them, and When to Leave Them Alone.

11 Remember how to figure out Constructive Receipt? Now how do you make sure OSPA dates the employees check to reflect that Constructive Receipt date?

12 12 The Great Date Mate, of course! Also known as P010 Final Dates

13 13 So what makes the Great Date Mate so special? The Great Date Mate holds enormous power over managing Constructive Receipt at year end. The Great Date Mate holds enormous power over managing Constructive Receipt at year end. This tool tells OSPA what date to print on paychecks – This tool tells OSPA what date to print on paychecks – But only if you tell it to. But only if you tell it to.

14 14 Before we get into year-end specifics, lets review how the Great Date Mate works. This means, What date do you want OSPA to print on the check? This means, What date do you want OSPA to print on the check? This means, For the check date above, which pay period are you using?

15 15 Lets take a quick look at a sample. In October, Taylor Smith will be terminating employment on 10/12/07. In October, Taylor Smith will be terminating employment on 10/12/07. Final cutoff for Sept Run 2 is 10/9/07; normal check date is 10/15/07. Final cutoff for Sept Run 2 is 10/9/07; normal check date is 10/15/07. Final cutoff for October Run 1 is 10/26/07; normal check date is 11/1/07. Final cutoff for October Run 1 is 10/26/07; normal check date is 11/1/07. You know about this on 10/4/07 so you go ahead and process the final payroll entries that day. You know about this on 10/4/07 so you go ahead and process the final payroll entries that day.

16 16 If you do nothing to the Great Date Mate, what date will print on Octobers final system check? 11/1/07

17 17 Now then, if you want the final system check to be dated 10/12/07: Set the Great Date Mate to date the check 10/12/07: Set the Great Date Mate to date the check 10/12/07: And tell OSPA which pay period youre using: FINAL CHECK ISSUED: FINAL CHECK PERIOD ENDING: Easy, right?

18 Uh Oh... What if this employee has a timesheet correction from September that still needs to be paid? It needs to have the same check date.

19 19 You already set the Great Date Mate to date the final check 10/12/07 Will these entries: give you a September system check dated 10/12/07? FINAL CHECK ISSUED: FINAL CHECK PERIOD ENDING: Why or Why not?

20 The Answer: NO

21 21 So how do you get the 9/30/07 pay period check to print with the 10/12/07 check date? Youve told the Great Date Mate that you want OSPA to date the final check 10/12/07 Youve told the Great Date Mate that you want OSPA to date the final check 10/12/07 but youve specified that the check will be coming from the 10/31/07 pay period Change the date to FINAL CHECK ISSUED: FINAL CHECK PERIOD ENDING: FINAL CHECK PERIOD ENDING

22 22 Now what happens when October runs for this employee? Now what happens when October runs for this employee? Will October have a 10/12/07 check date? Will October have a 10/12/07 check date? Not if you leave the Not if you leave the date at Youll need to change it back to after September Run 2 has completed. Youll need to change it back to after September Run 2 has completed. NOTE: You probably requested a manual check for this way back on 10/4. Setting the October P010 dates simply matches the system date to the manual check date. NOTE: You probably requested a manual check for this way back on 10/4. Setting the October P010 dates simply matches the system date to the manual check date. FINAL CHECK PERIOD ENDING

23 So how does the Great Date Mate apply at year end?

24 24 Remember that Constructive Receipt exercise? Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of 2008.

25 How do you make sure the paycheck you give your employee has the right date on it so it corresponds with the date of Constructive Receipt? Yep, the Great Date Mate.

26 26 If your employee will have constructive receipt of her paycheck in 2007, the Great Date Mate should reflect that. Namely, the field would show a 2007 check date, Namely, the field would show a 2007 check date, and the field will tell OSPA to use either November or December to do it. and the field will tell OSPA to use either November or December to do it. Lets take a look at a quick sample. Lets take a look at a quick sample. FINAL CHECK ISSUED FINAL CHECK PERIOD ENDING

27 27 Taylor Smith is retiring at the end of December, and youre lucky enough to know about it before December Run 1 final. and will date the final check with the other check dates on 1/1/2008. Since the employees last day is December 31, putting Constructive Receipt into 2007, thats not what you want to happen. If you leave the Great Date Mate alone, it looks like this: If you leave the Great Date Mate alone, it looks like this:

28 28 Now youve told OSPA to date the check that comes for December as 12/31/07. Instead, youll need the Great Date Mate to show this: Thats more like it ! Now lets add another wrinkle. Now lets add another wrinkle.

29 29 This retiring employee has timesheet corrections from September, October, and November. Why do you think you cannot simply set a corrective for those months?

30 30 What date do you think will print on the corrected checks from September, October and November? If you did set the corrective, and the Great Date Mate is set up to date Decembers check 12/31/07:

31 31 Did you tell OSPA to put a different date on the checks for PPE , , or ? Nope: Nope: So since you didnt tell it to date those pay periods differently, what check date gets used? So since you didnt tell it to date those pay periods differently, what check date gets used? Thats right, the regular check date – which in this case would be 1/1/2008. Thats right, the regular check date – which in this case would be 1/1/2008. FINAL CHECK PERIOD ENDING: Uh oh – constructive receipt is in 2007 (12/31/07 to be exact). Uh oh – constructive receipt is in 2007 (12/31/07 to be exact). Okay, but so what? Okay, but so what?

32 32 Having the corrective checks dated 1/1/2008 does what? Calculates September, October, and November wages into 2008 Calculates September, October, and November wages into 2008 Double-pays the employee Double-pays the employee Gives you a headache when you try to fix it Gives you a headache when you try to fix it

33 33 So how do you get those timesheet corrections to calculate into 2007? You cant set the final check period ending date to anything other than December, because then December will calculate into Make P050 and related P070 adjustments on the December screens so it all comes on one check.

34 Okay, one more thing to consider about the Great Date Mate when it comes to timesheet corrections in prior pay periods.

35 35 If your employee is NOT terminating in December and will have constructive receipt of their money in 2007, you have the option of setting the Great Date Mate to look at November and date the resulting check (even if it isnt a final check) in Any guesses how? Any guesses how?

36 36 Now, why would you use in the field? Because OSPA does not allow agencies to add, change, or delete December dates on this screen at any time. Because OSPA does not allow agencies to add, change, or delete December dates on this screen at any time. Side note: This screen must contain November dates in order to set the November corrective on the P190 screen. Side note: This screen must contain November dates in order to set the November corrective on the P190 screen. FINAL CHECK ISSUED

37 One More Thing P190 will show months other than November. However, the only month that is open for correction is November.

38 38 There are two reasons that only November can have a corrective set The Great Date Mate can look at only one pay period at a time The Great Date Mate can look at only one pay period at a time Once November Run 2 has closed, OSPA has to be programmed for the upcoming year with period end dates, pay dates, and cutoff dates. This overrides 2007 for 2008 info. Once November Run 2 has closed, OSPA has to be programmed for the upcoming year with period end dates, pay dates, and cutoff dates. This overrides 2007 for 2008 info. You should put any adjustments for other months on the November screens for a continuing employee, or on December screens for a terminating employee.

39 39 At Year End, P370 Check Dates can be Tricky Devils

40 40 P370 Sample for 2007 When using a check date in 2007, the net pay is $6, When using a check date in 2007, the net pay is $6, P370 OR ,99900,123106,123107,O CALCULATION OF CURRENT PAYOFF 370 EMPLOYEE, JOSEPHINE INCOME TYPE RATE UNITS AMOUNT TAX /RET AMOUNT DEDUCTIONS AMOUNT TOTAL-R T FIT AHNN001 LONG AEXCESS O SIT KDNNAAA KAIS FICA KMNNAAA KAIS MEDR LCNN UN L WCD 2.40 SLYJ001 JUDI STNN001 SHOR U3NN020 EMP 1.20 GROSS TX/RT DED NET/ACH /.00 CALC YTD? N PRINT CHECK? N CORRECTIVE? N SEPARATION CHECK? N CHECK FEE: _3.98 COMMENT: ________________________________________ ACCT:

41 41 P370 Sample for 2008 When using a check date in 2008, the net pay is $5, When using a check date in 2008, the net pay is $5, P370 OR ,99900,123106,010208,O CALCULATION OF CURRENT PAYOFF 370 EMPLOYEE, JOSEPHINE INCOME TYPE RATE UNITS AMOUNT TAX /RET AMOUNT DEDUCTIONS AMOUNT TOTAL-R T FIT AHNN001 LONG AEXCESS O SIT KDNNAAA KAIS FICA KMNNAAA KAIS MEDR LCNN UN L WCD 2.40 SLYJ001 JUDI STNN001 SHOR U3NN020 EMP 1.20 GROSS TX/RT DED NET/ACH /.00 CALC YTD? N PRINT CHECK? N CORRECTIVE? N SEPARATION CHECK? N CHECK FEE: _3.98 COMMENT: ________________________________________ ACCT: The difference here is the FICA subject wages already reached the maximum, but 2008 has not.

42 42 P370 Date Summary Watch check dates. You may get different calculations depending on which year you use. Watch check dates. You may get different calculations depending on which year you use. Manual check date should reflect Constructive Receipt date Manual check date should reflect Constructive Receipt date

43 43 Constructive Receipt Summary Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of 2008.

44 44 The Great Date Mate Summary overrides the default check date to this date overrides the default check date to this date For this pay period only: For this pay period only: Can override only one pay period at a time Can override only one pay period at a time Allows you to control the Constructive Receipt date printed on a system check Allows you to control the Constructive Receipt date printed on a system check FINAL CHECK ISSUED FINAL CHECK PERIOD ENDING

45 Questions?

46 46 Overpayments

47 47 When/Why Overpayment Occurs Late reporting of LWOP Late reporting of LWOP Run 1, employee paid with forecast hours Run 1, employee paid with forecast hours Run 2, after actual time worked is entered in the system. Run 2, after actual time worked is entered in the system. The employees pay is recomputed for the entire month to determine whether or not there is a difference between forecasted and actual pay. (Possibly a terminated employee or employee on LWOP.) The employees pay is recomputed for the entire month to determine whether or not there is a difference between forecasted and actual pay. (Possibly a terminated employee or employee on LWOP.) Delayed pay-related personnel actions. Delayed pay-related personnel actions. Pay-related information (reduced wages, removed lead work, removed work- out-of class, etc.) not entered in the PPDB to meet payroll timelines. Pay-related information (reduced wages, removed lead work, removed work- out-of class, etc.) not entered in the PPDB to meet payroll timelines. Employees termination date not entered in the PPDB Employees termination date not entered in the PPDB

48 48 When/Why contd Administrative error Administrative error Deductions not entered until after payroll runs. (optional insurances; garnishments, etc.) Deductions not entered until after payroll runs. (optional insurances; garnishments, etc.) Vendor deductions removed between Run 1 and Run 2 (Do not remove vendor amounts after Run 1 on the P070. If you still have possession of vendor check, request a check rewrite to the vendor/employee for correct amounts. If the check has already been released, work with vendor to send check back or repayment of the overpayment to them. Vendor deductions removed between Run 1 and Run 2 (Do not remove vendor amounts after Run 1 on the P070. If you still have possession of vendor check, request a check rewrite to the vendor/employee for correct amounts. If the check has already been released, work with vendor to send check back or repayment of the overpayment to them.

49 49 Notification to Employee An earnings statement that reflects overpayment is generated which serves as notice of the overpayment. (Check stub) An earnings statement that reflects overpayment is generated which serves as notice of the overpayment. (Check stub) Agency may have standard letters. Agency may have standard letters. OSPS web site: slides 63 & 64, gives suggested contents for notification. OSPS web site: slides 63 & 64, gives suggested contents for notification.http://tinyurl.com/298s64

50 50 Collection of Overpayment OAM PO – Overpayment returns are due and payable on discovery of the overpayment. OAM PO – Overpayment returns are due and payable on discovery of the overpayment. Net pay negatives generally are collected from the following Run 1 payroll. Net pay negatives generally are collected from the following Run 1 payroll. When they are not collected on the following Run 1, the Agency must reimburse the Joint Payroll Account. When they are not collected on the following Run 1, the Agency must reimburse the Joint Payroll Account. Overpayment example: Overpayment example: The employee on Run1 forecast was paid $1, On Run 2, actual hours were entered. The employees pay is recomputed for the entire month to determine they had only earned $1, The Agency is credited with the overpayment of $ The employee on Run1 forecast was paid $1, On Run 2, actual hours were entered. The employees pay is recomputed for the entire month to determine they had only earned $1, The Agency is credited with the overpayment of $ If the employee has or will repay an overpayment by the end of the year (December 31 st ) in which it occurred and this net pay negative is in November, OSPA will automatically reduce the employees December wages. You do not need to make any adjustments. If the employee has or will repay an overpayment by the end of the year (December 31 st ) in which it occurred and this net pay negative is in November, OSPA will automatically reduce the employees December wages. You do not need to make any adjustments.

51 51 Collection of Overpayment contd If the employee is not expected to work/earn enough hours on the next pay period to re-pay this through a payroll system deduction, you will need to reverse the entries that created the net pay negative in OSPA, so the employees wages/taxes are not understated for the current year. The Agency is then responsible to collect the net pay negative by working with the Agencys accounting to establish an account receivable (A/R). If the employee is not expected to work/earn enough hours on the next pay period to re-pay this through a payroll system deduction, you will need to reverse the entries that created the net pay negative in OSPA, so the employees wages/taxes are not understated for the current year. The Agency is then responsible to collect the net pay negative by working with the Agencys accounting to establish an account receivable (A/R). When the employee does not repay all or part of the overpayment in the same year it is still taxable for that year. The employee received and used the funds during the year. When the employee has repaid the full amount, request a corrected W- 2 for the year in which the overpayment occurred from the OSPS Accountant (Kathyron Parsons). When the employee does not repay all or part of the overpayment in the same year it is still taxable for that year. The employee received and used the funds during the year. When the employee has repaid the full amount, request a corrected W- 2 for the year in which the overpayment occurred from the OSPS Accountant (Kathyron Parsons).

52 52 Collection of Overpayment contd Do not make negative P050 entries to correct prior year overpayments; prior year negative entries will understate wages for the current tax year. Work with your Agencys accounting staff to set-up an A/R and request a corrected W-2 when the employee repays the full amount. Do not make negative P050 entries to correct prior year overpayments; prior year negative entries will understate wages for the current tax year. Work with your Agencys accounting staff to set-up an A/R and request a corrected W-2 when the employee repays the full amount.

53 53 Corrected W-2 (W-2c) Training January 30 th and February 27 th January 30 th and February 27 th 1:15 to 4:15 PM 1:15 to 4:15 PM SFMS Conference Room, Executive Building, 155 Cottage St. NE SFMS Conference Room, Executive Building, 155 Cottage St. NE with name, agency, phone number, address, and manager with name, agency, phone number, address, and manager

54 Questions?

55 55 Check Reversals

56 56 Canceling Checks for October and prior PPEs Some things to think about. Some things to think about. What pay period was the check issued for. What pay period was the check issued for. After November Run 2, checks for October and prior cannot be canceled. After November Run 2, checks for October and prior cannot be canceled. So what do you do if you come across a check that needs to be canceled. So what do you do if you come across a check that needs to be canceled. If a check for an October or prior pay period needs to be canceled, contact OSPS to work through the steps of correcting OSPA before December run 2. If a check for an October or prior pay period needs to be canceled, contact OSPS to work through the steps of correcting OSPA before December run 2.

57 57 November and December Check Cancellations Thankfully these are a little easier Thankfully these are a little easier Checks cut for November or December that have a 2007 check date can be canceled up until December run 2. Checks cut for November or December that have a 2007 check date can be canceled up until December run 2. If you find you do need to cancel a check after December run 2 closes, you will need to contact Kathyron Parsons to work through the process of creating a corrected W-2. If you find you do need to cancel a check after December run 2 closes, you will need to contact Kathyron Parsons to work through the process of creating a corrected W-2.

58 58 Things to look at when canceling November or December checks Things you may want to consider Things you may want to consider Will money be rewritten to the employee? Will money be rewritten to the employee? For November checks, if money will be rewritten to the employee, then you may want to consider the next bullet. For November checks, if money will be rewritten to the employee, then you may want to consider the next bullet. Is the employee terminating in December? If so, are there corrections to the November pay period? Is the employee terminating in December? If so, are there corrections to the November pay period? P010 dates can only be set for one pay period. If the employee is terminating in December, you will be setting December dates, so any prior corrections will need to be brought forward. P010 dates can only be set for one pay period. If the employee is terminating in December, you will be setting December dates, so any prior corrections will need to be brought forward. Are there December P010 dates set? Are there December P010 dates set? If a December check is being canceled and no money is to be rewritten to the employee, there may be December P010 dates that need to be removed. If a December check is being canceled and no money is to be rewritten to the employee, there may be December P010 dates that need to be removed.

59 Questions?

60 60 Fringe Benefits / Expense Reimbursements

61 61 Resources IRS Publications, especially: IRS Publications, especially: 15b Employers Tax Guide to Fringe Benefits 15b Employers Tax Guide to Fringe Benefits FSLG Taxable Fringe Benefit Guide FSLG Taxable Fringe Benefit Guide Oregon Accounting Manual Oregon Accounting Manual Statewide HR Policies and Bargaining Agreements Statewide HR Policies and Bargaining Agreements OSPA Reference Manual, Recommended Practices, Taxes, Reimbursements and Fringe Benefits OSPA Reference Manual, Recommended Practices, Taxes, Reimbursements and Fringe Benefits

62 62 Accountable Plan Non-taxable if following conditions are met: Non-taxable if following conditions are met: Business connection or deductible for employee Business connection or deductible for employee Employee required to provide accounting for expenses Employee required to provide accounting for expenses Employee required to return excess allowances Employee required to return excess allowances

63 63 Pay Types Categorized by cash and non-cash, taxable and non- taxable Categorized by cash and non-cash, taxable and non- taxable Cash pay types: Cash pay types: Result in a payment to the employee or a vendor Result in a payment to the employee or a vendor Record income as taxable or nontaxable Record income as taxable or nontaxable Non-cash pay types: Non-cash pay types: Record income as taxable or nontaxable Record income as taxable or nontaxable If taxable, increase withholding without increasing payment to employee If taxable, increase withholding without increasing payment to employee May be required when employee was paid through accounts payable rather than OSPA May be required when employee was paid through accounts payable rather than OSPA

64 64 Moving Expense Reimbursement OAM PO and PR require payments through OSPA OAM PO and PR require payments through OSPA MVN = nontaxable (moving goods and personal effects and traveling) MVN = nontaxable (moving goods and personal effects and traveling) MVT = taxable (meals, other expenses) MVT = taxable (meals, other expenses) May request manual check to pay vendor May request manual check to pay vendor If not through OSPA, make P050 entries and a MOVE P070 entry If not through OSPA, make P050 entries and a MOVE P070 entry

65 65 Personal Use of State Vehicle Garaged at Home OAM PR requires payment through OSPA OAM PR requires payment through OSPA SMN = non-cash taxable value using cents-per- mile rule SMN = non-cash taxable value using cents-per- mile rule SVN = non-cash taxable value using the commuting valuation rule SVN = non-cash taxable value using the commuting valuation rule Taxable value included in Box 1 earnings on the W-2 form. Taxable value included in Box 1 earnings on the W-2 form.

66 66 Meal Reimbursements Generally taxable unless provided as part of an overnight stay or: Generally taxable unless provided as part of an overnight stay or: De Minimis (doughnuts, pizza, infrequent) De Minimis (doughnuts, pizza, infrequent) Provided for the convenience of the employer Provided for the convenience of the employer Part of professional organization Part of professional organization Pay types: Pay types: MS = non-cash, taxable MS = non-cash, taxable MSN = cash, non-taxable MSN = cash, non-taxable MST = cash, taxable MST = cash, taxable

67 67 Education Reimbursements OAM PO and PR require payment through OSPA OAM PO and PR require payment through OSPA Non-taxable if: Non-taxable if: Required by employer or law to keep salary, status, job Required by employer or law to keep salary, status, job Maintains or improves skills needed in job Maintains or improves skills needed in job EDN = Nontaxable, cash, in-state education EDN = Nontaxable, cash, in-state education EDT = Taxable, cash, in-state education EDT = Taxable, cash, in-state education

68 68 Clothing and Tools Clothing & Uniforms are non-taxable if Clothing & Uniforms are non-taxable if Condition of employment Condition of employment Not adaptable to general use Not adaptable to general use Employee substantiates expenses Employee substantiates expenses Uniform cleaning is non-taxable if uniforms are Uniform cleaning is non-taxable if uniforms are ANA = clothing allowance, non-cash, taxable ANA = clothing allowance, non-cash, taxable CLA = clothing allowance, cash, non-taxable CLA = clothing allowance, cash, non-taxable CLT = clothing allowance, cash, taxable CLT = clothing allowance, cash, taxable CLN = cleaning allowance, cash, taxable CLN = cleaning allowance, cash, taxable

69 69 Tools Tools are non-taxable if under an accountable plan Tools are non-taxable if under an accountable plan TLA = tool allowance, cash, non-taxable TLA = tool allowance, cash, non-taxable

70 Questions?

71 Year-End Timeline

72 72 November 30, 2007 Last pay period for the current year that agencies will be able to set P010 check dates for transferring employees. Last pay period for the current year that agencies will be able to set P010 check dates for transferring employees.

73 73 November Run /10/07 For the current year, this is the last date to: For the current year, this is the last date to: Set P010 check dates for months prior to November Set P010 check dates for months prior to November Set correctives for September or October pay periods Set correctives for September or October pay periods Pay-off any outstanding leave balances for separated employees Pay-off any outstanding leave balances for separated employees Report E492 Terminated Employees Having Leave Balances Report E492 Terminated Employees Having Leave Balances OSPS sends out monthly s regarding issues with this report that are a priority to resolve before year end. OSPS sends out monthly s regarding issues with this report that are a priority to resolve before year end. Enter cash payments for expense reimbursements or fringe benefits Enter cash payments for expense reimbursements or fringe benefits Reverse checks from pay periods prior to November Reverse checks from pay periods prior to November

74 74 December 31, 2007 For 2007, last date to: For 2007, last date to: Pay-off leave balances Pay-off leave balances Accept return of overpayment Accept return of overpayment Request manual check for: Request manual check for: Report E Separated Employees with Net Pay Positive Adjustments (If you get one of these, the highlighted ones are the ones that need to be resolved) Report E Separated Employees with Net Pay Positive Adjustments (If you get one of these, the highlighted ones are the ones that need to be resolved) Remember the constructive receipt rule? These funds should be made available to the employee in Remember the constructive receipt rule? These funds should be made available to the employee in 2007.

75 75 January 2, 2008 Last date for receiving: Last date for receiving: Updated Form W-5 Updated Form W-5 Report EICRPT - Earned Income Credit for Tax Year Report EICRPT - Earned Income Credit for Tax Year If you have not received an updated form you will need to modify the P010 screen to reflect no EIC for the upcoming tax year. If you have not received an updated form you will need to modify the P010 screen to reflect no EIC for the upcoming tax year.

76 76 January 2, 2008 (Continued) For an Employee Who is Not a Lawful Permanent Resident OSPS Form and Form 8233 or Form W-9 For an Employee Who is Not a Lawful Permanent Resident OSPS Form and Form 8233 or Form W-9 The OSPS Form is on the OSPS Forms Web Site under We have a form for that section. The OSPS Form is on the OSPS Forms Web Site under We have a form for that section. HR offices will hopefully notify the agency payroll offices if they have employees that need to submit this information. HR offices will hopefully notify the agency payroll offices if they have employees that need to submit this information.

77 77 January 2, 2008 (Continued) By submitting this form each year your agency payroll office ensures: By submitting this form each year your agency payroll office ensures: The employees current resident status The employees current resident status Payroll staff have the necessary and proper information to process the employees taxes for the upcoming tax year Payroll staff have the necessary and proper information to process the employees taxes for the upcoming tax year Prevents having to correct taxes retroactive and keeps the employee happy Prevents having to correct taxes retroactive and keeps the employee happy

78 78 December Run 2 – 1/9/08 Last date for 2007 to: Last date for 2007 to: Enter check reversals Enter check reversals Enter non-cash expense reimbursements or fringe benefits Enter non-cash expense reimbursements or fringe benefits Correct negative YTD amounts from the XREF68 Correct negative YTD amounts from the XREF68 The system will not print a W-2 for an employee with a negative YTD The system will not print a W-2 for an employee with a negative YTD Request P060 tax adjustments for separated employees with net pay positive adjustments Request P060 tax adjustments for separated employees with net pay positive adjustments Record return of overpayment for 2007 for any payment received on or prior to 12/31/07 Record return of overpayment for 2007 for any payment received on or prior to 12/31/07 Correct payments from the Nov or Dec Pay Reported in Two Tax Years –Receive report at year end from OSPS Correct payments from the Nov or Dec Pay Reported in Two Tax Years –Receive report at year end from OSPS

79 79 After December Run 2 – 1/11/08 (Final cutoff is on 1/10/08) After December Run 2 – 1/11/08 (Final cutoff is on 1/10/08) First date agencies can set P010 check dates for new tax year 2008 First date agencies can set P010 check dates for new tax year 2008

80 80 February 15, 2008 Last date for receiving updated Form W-4 that claims exemption from withholding : Last date for receiving updated Form W-4 that claims exemption from withholding : Report Income Tax Exemptions Report Income Tax Exemptions If you do not receive an updated form, you willto modify the P010 screen to reflect Single and Zero (system default) or the previous non-exempt form in the employees file. (IRS will accept either of these options) If you do not receive an updated form, you willto modify the P010 screen to reflect Single and Zero (system default) or the previous non-exempt form in the employees file. (IRS will accept either of these options)

81 Questions?


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