Visual Intelligence Portfolio Payroll Year End 2018 – 2019

Agenda Close the 2018 Tax Year. Process final check with a 2018 Check Date. Process the First Payroll Period(s) with a 2019 Check Date Process the First Payroll Period(s) Ending in 2019 Process W-2s Note: You can Process W-2s anytime after the Close the 2018 Tax Year steps have been completed

Close the 2018 Tax Year

Close the 2018 Tax Year Step A: Configure Fringes (if necessary) Step B: Post all Payroll Periods with a 2018 Check Date Step C: Run Payroll Period End Reports Payroll Register Reports Month End Reports Quarter End Reports

Step A: Configure Fringes Add Fringe Cycle Payroll > Configure > Fringe Cycles Add Fringe Definition Payroll > Configure > Fringe Definition Add Fringe Define Name Default Amount Default Cycle Tax settings Add Fringe to Employees Payroll > Configure > Fringes Definitions Select Fringe Select Add To Employee Search for employee(s) Reference Appendix A in the Payroll Year End Guide for further details on how to configure fringes and the new import feature.

Add Fringe Cycle Payroll > Configure > Fringe Cycles

Add Fringe Definition Payroll > Configure > Fringe Definitions

Add Fringe Definition Continued Payroll > Configure > Fringe Definition Default Amount Optional Select Fringe Cycle Check boxes for taxes to be withheld

Configure Fringes Life Insurance Over 50,000 If Life Insurance Over 50,000 is checked, the fringe amount will be reported on the W-2 in Box 12 with a code of C

Configure Fringes HSA Employer Contribution HSA Employer Contribution is non-taxable and is setup for W-2 reporting purposes only If HSA Employer Contribution is checked, the amount will be reported on the W-2 in Box 12 with a code of W

Add Fringe to Employees Payroll > Configure > Fringe Definitions * Change the amount to $0 or use an end date.

Add Fringe to Employees Payroll > Configure > Fringe Definitions Use the End Date to stop the fringe. If using the grid to reconcile total fringes the amount can be changed to 0 also.

Step B: Post All Payroll Periods with a 2018 Check Date Process fringes by linking the Fringe Cycle(s) to the payroll period This will withhold taxes, if applicable, and prepare Life Insurance Over 50,000 and HSA Employer Contribution for W-2 processing

Link Fringe Cycle(s) to the Payroll Period Payroll > Process > Payroll Periods, Active Select the Fringe Cycle Tab inside an active Payroll Period to link the cycle

Run Fringe Reports Payroll > Report > Formatted Reports Fringe Lines for Pay Period Use this report to verify fringes added to pay period after calculating and before posting. Annual Fringe Report Use this report to verify fringes added to W2’s wages

Post All Payroll Periods with a 2018 Check Date This includes all Monthly, Quarterly, and Annual payrolls

Post All Payroll Periods with a 2018 Check Date For the last payroll of the year, show YTD pay codes and zero deductions & accruals on the pay stub Navigate to Payroll>Configure>Payroll System If unchecked, will not show DD stub to allow more room for pay codes, deductions, and accruals.

Step C: Run Payroll Period End Reports Payroll > Report > Payroll Registers

Run Payroll Register Reports Employee Annual Summary Register – Month Quarter Year to Date

Run Payroll Register Reports Employee Annual Summary

Run Payroll Register Reports Register – Month Quarter Year to Date

Run Payroll Register Reports The Grand Totals section of the Register will be a helpful resource when reconciling W-2s

Run Month End Reports Payroll > Report Formatted Reports Accrual Summary by Department Accrual Detail by Department City County Tax by Code City County Tax by Employee Deduction Recap – Month Quarter Year School Tax Breakdown by School District School Tax Breakdown by Employee Grids Employee Accruals Wage Summaries Deduction Line Summaries

Employee Accruals Grid

Wage Summaries Grouped by Pay Code

Wage Summaries Grouped by Account

Wage Summaries Grouped by Department & Job

Run Quarterly Reports Payroll > Report 941 Summaries SBES Worksheets Grids Deduction Recap – Month Quarter Year Multiple Worksite Report Workers Comp Eligible Wages Formatted Reports NOTE on SBES Reporting: Do not run the SBES report until the payroll covering 12/31/2018 has been posted. This will ensure weeks worked, will calculate properly.

Process the First Payroll Period(s) with a 2019 Check Date

Process the First Payroll Period(s) with a 2019 Check Date Step A: Open the 2019 Accounting Year and Month 1 Step B: Change the Payroll System Month and Year Step C: Verify the FICA Limit and Update Tax Tables Step D: If you have Payroll Period(s) with a 2018 Ending Date and a 2019 Check Date, Process it

Step A: Open the 2019 Accounting Year General Ledger > Configure > Accounting Year For users live on General Ledger, the Accounting Year (2019) and Accounting Month (Period #01) must be open prior to posting the first payroll period with a 2019 check date

Step B: Change the Payroll System Month and Year Advance the Payroll System Month and Year to January 2019 for the first payroll period with a 2019 Check Date (regardless as to whether the payroll period ending date is in 2018 or 2019) Time Entry will reflect the accruals for the period selected.

Change the Payroll System Month and Year Payroll > Configure > Payroll System

Change the Payroll System Month and Year

Step C: Update FICA Limit and Tax Tables In 2019, the FICA (Social Security) wage base will increase from $128,400 to $132,900 https://www.ssa.gov/policy/docs/quickfacts/prog_highlights/index.html This can be verified in the Max Annual Gross field on the FICA (Social Security) deduction definition

Update FICA Limit Payroll > Configure > Deduction Definitions

Update Tax Tables Payroll > Configure > Tax Tables Rate changes for local tax deductions must be edited on the applicable tax tables City Taxes, School Taxes & County Taxes Updates to Federal and State (Ohio & Kentucky only) tax tables will be available on the Mysofwaresolutions.com support website You will be notified when new tax tables are available Note: The tax tables may not be released prior to your first payroll period with a 2019 check date

Update Tax Tables: Local Taxes Payroll > Configure > Tax Tables Select Tax Table The first grid will show the tax period(s). The rate is updated in the period. An end date can be entered in the current period and a new period created or the rate can be changed in the current period. Click to Drill Down

Update Tax Tables: Local Taxes Payroll > Configure > Tax Tables Edit Tax Table Entry to change Percentage Edit

Update Tax Tables www.support.mysoftwaresolutions.com

Step D: If you have Payroll Period(s) with a 2018 Ending Date and a 2019 Check Date, Process it Process and post the payroll period(s) with a 2018 ending date and a 2019 check date as normal Ex: Beginning Date – December 15, 2018 Ending Date – December 31, 2018 Check Date – January 15, 2019

Process the First Payroll Period(s) Ending in 2019

Process the First Payroll Period(s) Ending in 2019 Allow Pre-use of Accruals Change the Balance Validation for Accruals Process the First Payroll Period(s) with a 2019 Ending Date Transfer Accrual Balances Verify Opening Accrual Balances Print/Email Checks/Direct Deposit Stubs Disable Pre-use of Accruals

Important Note on Accruals Accrual Usage Dates default to the period BEGINNING date ALL ACCRUAL USAGES IN 2018 MUST BE MARKED WITH THE CORRECT WORK DATE IN TIME ENTRY DO NOT USE 1/1/18 as a Work Date or for any manual adjustments Reminder: Employee Accruals will appear as ‘0’ in the payroll that crosses years, this is because the system is in January and the Transfer has not been completed yet

Step A: Allow Pre-use of Accruals Payroll > Configure > Payroll System This enables time off to be recorded in both 2018 and 2019 for the payroll period(s) that cross calendar years

Step B: Change the Balance Validation for Accruals Payroll > Configure > Accrual Definitions Each Accrual Definition has a Balance Validation If the Balance Validation is configured to “Warn and stop”, it must be changed to “Warn and continue” or “Ignore” for the payroll period(s) that cross calendar years

Step C: Process the First Payroll Period(s) with a 2019 Ending Date This step is for the payroll period(s) that have a beginning date in 2018 and an ending date in 2019 Ex: Beginning Date – December 24, 2018 Ending Date – January 6, 2019 Check Date – January 11, 2019

Accrue Yearly Accruals If yearly accruals (time off benefits that are granted at the beginning of the calendar year) need to be accrued, configure this when adding the payroll period “With Time Card”, “All Non-terminated”, or “All Active” needs to be selected in the Accrue Yearly Accruals field

Specify the Work Date during Time Card Entry The Work Date for all time worked or taken off in the new year (2019) needs to be specified during Time Card Entry It is not necessary to specify the actual date as long as the Work Date reflects the year in which the time off was taken or worked

Specify the Work Date during Time Card Entry – Calendar Entry Click on the Time Entry Calendar Tab

Specify the Work Date during Time Card Entry If time off is taken in 2018, it is not necessary to define the Work Date By default, the work date for accrual USAGES use the beginning date of the payroll period If your first payroll period with a 2019 ending date has a beginning date of January 1, 2019, it is not necessary to specify the Work Date The Work Date will default to 1/1/2019

Post the First Payroll Period(s) with a 2019 Ending Date Proceed with processing and posting the first payroll period(s) with a 2019 ending date IMPORTANT DO NOT print/email checks/direct deposit stubs at this time. (this will be completed in Step F) Note: If you generate stubs at this time, the accrual balances will be zero

Step D: Transfer Accrual Balances The transfer of accrual balances accomplishes two tasks: Transfers accrual balances that carry over from 2018 to 2019 The transfer is recorded as two separate accrual lines: a Transfer Out of 2018 with a 12/31/2018 date and a Transfer In to 2019 with a 1/1/2019 date Resets accrual balances to zero for accruals configured to reset at year end

Transfer Accrual Balances Payroll > Configure > Accrual Definitions Review accrual definitions and ensure that accruals that do not carry over to the new year are configured to Reset At Year End

Transfer Accrual Balances Payroll > Configure > Payroll System

Transfer Accrual Balances Make sure the box is checked

Step E: Verify Opening Accrual Balances Payroll > Report > Employee Accruals

Verify Opening Accrual Balances Payroll > Maintain > Employees

Verify Opening Accrual Balances

Verify Opening Accrual Balances Payroll > Report > Formatted Reports You can break on Department

Run Accrual Reports for Payroll Period(s) At this time, it is recommended that you run any accrual reports that you typically generate for a payroll period The Balance YTD will reflect what was transferred from 2018 as well as what was earned/used during the first payroll period(s) with a 2019 ending date. Double check individuals that were at or near maximum accruals. You can use the employee accruals grid to monitor this. The accrual for the first pay of 2019 was completed before balances were transferred. The balance at the time the payroll period was processed was 0 so the accrual would not have gone over the maximum.

Step F: Print/Email Checks/Direct Deposit Stubs Payroll > Maintain > Payroll Periods, Posted Proceed as normal with printing and/or emailing checks and/or direct deposit stubs for the first payroll period(s) with a 2019 ending date

Step G: Disable Pre-use of Accruals Payroll > Configure > Payroll System

Step H: Change the Balance Validation for Accruals Payroll > Configure > Accrual Definitions

Process W-2’S

Process W-2s Record Health Care Costs (Can do now or later in H) Prepare Deductions for W-2s Add a W2 Year Prepare the W2 Year Verify W2 Details Correct/Add W2 Details Do this only if you didn’t do A Record Health Care Costs Prepare Health Care Print W-2s Create Electronic File

Step A: Record Health Care Costs The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan The total cost is reported on the W-2 in Box 12 with a code of DD (Total Cost = Employee + Employer Contribution) Please visit http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored- Health-Coverage for further information

Record Health Care Costs Option 1 Manually enter health care costs on each Employee screen Option 2 Manually enter health care costs on the Employee Health Insurance grid Option 3 Import health care costs from a CSV to the Employee Health Insurance grid

Record Health Care Costs Option 1 - Payroll > Maintain > Employees 1. Navigate to Payroll | Maintain | Employees. 2. Click on the desired Employee. 3. Select the “Health Insurance” tab. 4. Click the “Add” button. Enter a Premium Description. Enter the Year. Enter the monthly contributions or enter the total contribution in any of the monthly fields. Click the “Save and Close” button.

Record Health Care Costs Option 1

Record Health Care Costs Option 1 If multiple insurances are recorded for a year: The total contribution for all premiums will be combined and the grand total will be reported on the W-2

Record Health Care Costs Option 2 - Payroll > Maintain > Health Insurance

Record Health Care Costs Option 2

Record Health Care Costs Option 3 In preparation for importing your file, please ensure that the file is in the correct format The data should be in CSV format, which can be accomplished by creating the file in Notepad or Microsoft Excel and saving as a CSV file.

Record Health Care Costs Option 3 - Notepad The EmpID can be the Legacy Employee Number, Job Number, or SSN The amount can be reported by month or the total for the year can be entered in any of the month columns Note: The title line is there for user convenience. The import will skip any line that starts with EmpID.

Record Health Care Costs Option 3 - Notepad

Record Health Care Costs Option 3 – Microsoft Excel Note: Leading zeros must be included! It may be necessary to format the cells as Text. Note: The title line is there for user convenience. The import will skip any line that starts with EmpID.

Record Health Care Costs Option 3 – Microsoft Excel

Record Health Care Costs Option 3 – Payroll > Maintain > Health Insurance

Record Health Care Costs Option 3

Record Health Care Costs Option 3 If you receive an error message, none of the records in the file will be imported Identify the issue, correct the file, and then import the file again

Record Health Care Costs No additional preparation is needed The W-2 build process will automatically pull the contributions associated with each employee and place the total amount in Box 12 with a code of DD * If Healthcare costs are not available until after building the W2s, it can be imported later

Step B: Prepare Deductions for W-2s Payroll > Configure > Deduction Definitions For each deduction that is reported on the W-2, it is necessary to review how the Deduction Category impacts where the deduction is reported on the W-2 Note: If you were “live” on Visual Intelligence last year, any W-2 configurations that were made to the deductions have been maintained

Prepare Deductions for W-2s The Deduction Category and W2 boxes on the Deduction definition will indicate how the deduction will be reported on the W2

Deduction Categories Deduction Category W-2 Impact W-2 Code Federal Tax Box 1 – Taxable Wages Box 2 – Tax Withheld State Tax Box 15 – State Description Box 16 – Taxable Wages Box 17 – Tax Withheld The W2 Code (OH, IN, etc.) must be specified on the deduction definition. County Tax Box 18 – Taxable Wages Box 19 – Tax Withheld Box 20 – County Description You can specify the county name in the W2 Code field on the deduction definition. Otherwise, the Deduction Name will appear in Box 20. Regardless if you use the W2 Code or Deduction Name, the county description should not exceed 16 characters. City Tax Box 20 – City Description You can specify the city name in the W2 Code field on the deduction definition. Otherwise, the Deduction Name will appear in Box 20. Regardless if you use the W2 Code or Deduction Name, the city description should not exceed 16 characters. See Year End Guide for RITA set up. School Tax Box 18 – School Description Box 19 – Taxable Wages Box 20 – Tax Withheld The W2 Code (school district number) must be specified on the deduction definition.

Prepare Deductions for W-2s For State Tax, the W2 Code must be specified

Prepare Deductions for W-2s For City Tax, the Deduction Name will be used by default unless a W2 Code is input, then the W2 Code will be used

Prepare Deductions for W-2s For School Tax, the W2 Code must contain the School District Number

Deduction Categories Deduction Category W-2 Impact W-2 Code Medicare Box 5 – Taxable Wages Box 6 – Tax Withheld FICA Box 3 – Taxable Wages Box 4 – Tax Withheld Pension Box 13 – Retirement Plan Pension (Deferred) Box 14 – Code & Amount The W2 Box (14) and W2 Code (414H2) must be specified on the deduction definition. Pension Buy Back (Deferred) Pension Pick Up Deferred Compensation Box 12 – Code & Amount The default code is G (457)b. An alternate code can be specified on the deduction definition.

Prepare Deductions for W-2s

Deduction Categories Deduction Category W-2 Impact W-2 Code Section 125 Box 14 – Code & Amount The default code is S125. Medical R125 Child care 125 Box 10 – Amount HSA (Employee Contribution) Box 12 – Code & Amount (Employee and Employer Contribution) The default code is HSA. The default code is W. T132 The default code is S132.

Deduction Categories The following Deduction Categories have no impact on the W-2s: Garnishment of Disposable Earnings Garnishment of Gross Union Dues Credit Union ACH Standard

Step C: Add a W2 Year W-2s can be built throughout the year for balancing purposes Each time you Prepare the W2 Year, the system will overwrite any existing W2 Details

Add a W2 Year Payroll > Maintain > W2 Years

Add a W2 Year The Employer State IDLocation is for Indiana customers only

W2 Year Field Descriptions Entity Name: Enter the entity name associated with the W-2 information. Location Address: Enter the second line of the delivery address or your department name. Employer State IDLocation: For Indiana customers only. This is a three digit employer TID location. Delivery Address: Enter the first line of the delivery address. City: Enter the entity city. State: Enter the postal abbreviation for your state. Zip: Enter the entity zip code. Zip 4 Employer ID: Enter the EIN (with dashes) assigned to you by the IRS. Employer State ID: Enter the State ID number (with dashes).

W2 Year Field Descriptions Employer Address: Enter the address to print on the W-2s. Mag Contact Name: Enter the contact name. Mag PIN: Enter the eight character user ID assigned to you by Business Services on SSA.gov. Mag Contact Phone: Enter the contact phone number (without dashes). Mag Contact Extension: Enter the contact extension number. Mag Contact Email: Enter the contact email address. Mag Contact Fax: Enter the contact fax number (without dashes). State Record Format: Select the applicable state.

W2 Year Field Descriptions Includes MQGE Employees: MQGE stands for Medicare Qualified Government Employee. Typically, these are employees who pay into Medicare but not FICA. Check off if you have employees in this group. Includes 3rd Party Sick In Non-MQGE Section: This is for employees who have third party sick pay and also pay into Medicare and FICA. Includes 3rd Party Sick In MQGE Section: This is for employees who have third party sick pay and also pay into Medicare (but not FICA). Kind Of Employer: Select the kind of employer from the dropdown. According to IRS 2015 General Instructions for Forms W-2 and W-3, for cities, villages, townships, counties and public utilities the correct option is S_StateLocalGovernment. Ohio RITA state records: If you file electronically with RITA, check off when you create the Electronic file for RITA.

Step D: Prepare the W2 Year Payroll > Maintain > W2 Years

Prepare the W2 Year W2 Details will populate after Preparing

Step E: Verify W2 Details Recommended reports to use as you reconcile the W2 Details: 941 Summaries Deduction Recap – Month Quarter Year School Tax Breakdown by School District City County Tax by Code 2018 MQY Register Show Analysis Register -MQYear from Formatted Reports ***NEW Formatted Report*** W2 Summary

Verify W2 Details - 941 Configure the W2 Details grid to balance against your quarterly 941 Summaries Include the following fields on the grid: Employee Box 1 Wages Box 2 Federal Tax Withheld Box 3 Social Security Wages Box 4 Social Security Withheld Box 5 Medicare Wages Box 6 Medicare Withheld Export grid (if desired)

Note: My Grids – Add a new grid prior to organizing the fields on the grid

Verify W2 Details

Verify W2 Details State Taxes Configure the W2 Details grid to balance against your: Deduction Recap Month Quarter Year (for State Tax Deduction) School Tax Breakdown by School District Include the following fields on the grid: Employee Box 15 State Code Box 16 State Wages Box 17 State Tax Box 15 School Tax Code Box 16 School Tax Wages Box 17 School Tax Export grid (if desired)

Verify W2 Details City/County Taxes Configure the W2 Details grid to balance against your: Deduction Recap Month Quarter Year (for Local Tax Deductions City County Tax by Code Report Include the following fields on the grid: Employee Box 18 Lines 1 & 2 Local Wages Box 19 Lines 1 & 2 Local Taxes Box 20 Lines 1 & 2 Local Name Export grid (if desired)

Verify W2 Details Items reported in Box 12 cannot be forced to appear on a specific line for all employees. Utilize the following: Payroll>Reports>Formatted Reports: W2 Summary Add all Box 12 fields to the grid, export the grid to Microsoft Excel, and then filter by code to get the totals 4 Box 12 Amounts (A,B,C, D) 4 Box 12 Codes (A,B,C, D)

Verify W2 Details Show Analysis Report compares Federal Gross with W2 Box 1 Wages and reports any differences. For more information, see the Year End Release Guide

Verify W2 Details Show Analysis Example If you have an issue here check: Deduction Definition Type & Category 941’s were there any issues or adjustments? Total Federal Wages from Wage Lines W2 Box 1 Wages

Step F: Correct/Add W2 Details

Correct W2 Details Correct the W2 details by editing the appropriate field Enter a Change Reason (if desired)

Correct W2 Details

Add W2 Details

Add W2 Details The Sequence number should be the next consecutive number If the system generated a W2 Detail with a Sequence of 0, the W2 Detail that is manually added for that employee should have a Sequence of 1

Correct W2 Details W2 Details can be rebuilt at any time It is not necessary to delete the W2 Year or the W2 Details From the W2 Years screen, check off the W2 Year and select the Prepare function Note: This will override any existing W2 Details, including manual changes

Step G: Verify W2 Details Repeat Steps E and F until you confirm that ALL W2 Details are correct

Step H:Record & Prepare Healthcare Record Health Care if not done in STEP A Option 1 Manually enter health care costs on each Employee screen Option 2 Manually enter health care costs on the Employee Health Insurance grid Option 3 Import health care costs from the Employee Health Insurance grid

Step H:Prepare Healthcare Only

Step H:Prepare Healthcare Only

Step I: Print W-2s Payroll > Maintain > W2 Years From the W2 Details grid, test print a few W-2s prior to printing all W-2s

Print W-2s Select which form to print: W2 Copy A Formless (IRS Form) W2 Employee Copy Formless (Copy B) W2 Employer Copy Formless

Print W-2s Turn off any page scaling and then print the forms After ensuring that the forms printed successfully, proceed with printing the remainder of the W-2s

Print W-2s Turn off any page scaling Opera Print Options Internet Explorer Print Options Google Chrome Print Options

Step J: Create Electronic File Payroll > Maintain > W2 Years

Create Electronic File Payroll > Export Download and save as W2REPORT.txt

Create Electronic File Payroll > Maintain > W2 Years If you file electronically with RITA, Ohio RITA state records needs to be checked off for the file created for RITA Note: The state will NOT accept a file that has Ohio RITA state records After creating IRS File Edit W2 Year for Rita Record & Create 2nd Electronic File

Other Considerations

Tax Table Change The system uses the Check Date to determine when to start or stop using a tax table. It will compare the Begin Date and End Date fields in the tax table to the Check Date to determine if a particular tax table should be used.

OPERS Changes Non-Contributing List OPERS requires you to submit a list containing the non- contributing appointive employees who work in OPERS pension type positions but have opted out of the pension and any individuals who provided services to the employer in the prior year and were classified as an independent contractor or any other classification other than a public employee This does not replace the independent contract process

OPERS Changes How to Comply with the Non-Contributing List If you submit your pension reports on ECS, you are required to submit the non-contributing list on ECS

OPERS Changes Non-Contributing List Step 1: Setup the Employee Payroll > Maintain > Employees

OPERS Changes Non-Contributing List Step 1: OR the Vendor Accounts Payable > Maintain > Vendors TIP: If adding at the Vendor level, a unique ID is also required in the SSN field

OPERS Changes Non-Contributing List Step 1: Setup the Employee or Vendor Status Options: S = Student Exemption I = Independent Contractor N = Employed, paid non-earnable salary, previously reported under ‘X’ E = Elected Official

OPERS Changes Non-Contributing List Accounts Payable > Maintain > Non-Contributing Year Step 2: Add the Report Year

OPERS Changes Non-Contributing List Accounts Payable > Maintain > Non-Contributing Year Step 3: Prepare the Report

OPERS Changes Non-Contributing List Accounts Payable > Maintain > Non-Contributing Year Step 4: Create File

W2 ID If an employee paid into 2 different states during the year, VIP will report the states separately on both the W2 & Electronic file You must set up W2 ID on the secondary state Deduction Definition

Questions?