Presented by: Katherine Bremser Date: October 19, 2009 Year-end Overview OSPS 2009 Year-end Mini-conference

2 Year-end Process Closeout current benefit and tax year Prepare for new benefit and tax year

3 Goals for Year-end Ensure that the employee receives: –Correct pay and benefits –Correct W-2 Ensure that OSPS –Reports and pays the correct amount to vendors and taxing / assessing entities Ensure that the state –Has few corrected W-2’s

4 Several Processes 2009 Charitable Fund Drive 2010 PEBB Open Enrollment 2010 Governor’s Food Drive 2009 Taxes

5 Charitable Fund Drive Before 10/26/09, OSPS will outdate 2008 on-going deductions, effective 11/30/09 –E List of In/outdated Deductions Set-up OSPA for 2009 fund drive –Outdate all codes but Q5NN –On 11/17/09 load file for new deductions, effective 12/31/09

6 PEBB Open Enrollment Outdates for 2009: –10/01/09 Dependent certification Domestic Partners as Tax Dependents –12/31/09 All medical plans FSA’s Employee changes –01/01/10 Optional life age band changes 11/14/09 – OE file to OSPA

7 DP’s as Tax Dependents PDB deleted Domestic Partner Certification for Dependent Tax Status prior to open enrollment Employee must give P/R a new certificate for 2010 –Enter in PDB –PDB will interface alpha plan code PDB requestable report for IRS dependents

8 DP Not Tax Dependent Prior to 10/26/09, OSPS will outdate the DPT/DPN entries on the P050 –E820-1 Gross Pay Adjustments Outdated –E820-2 Gross Pay Adjustments Beginning after Outdate –E820-3 Duplicate Gross Pay Adjustments PDB requestable report for DP’s and children with imputed value

Governor’s Food Drive Before 1/23/10, OSPS will outdate on-going 2009 Food Drive deductions effective 2/28/10 –E List of In/Outdated Deductions report

10 Taxes W-2’s for employees who received pay in MISC for beneficiaries of deceased employees

11 Timing for Tax Years The employee’s taxable income includes anything received by December 31, 2009 (constructive receipt) November paid December 1 = last regular payroll run for 2009 Use P010 FINAL CHECK dates to put payments made in December in 2009 tax year

12 Timing for Tax Years 2009 Income includes –Final pay and leave pay-offs for employees separating on or before 12/31/09 –Overpayments not repaid by 12/31/09 –Fringe benefits received during the year –December paychecks cashed prior to 1/1/10

13 General Deadlines 12/9/09, November Run 2: –Last date for months prior to November to: Set P010 dates Set correctives Request check reversals –Last date to make 2009 cash payments to employees without setting P010 final check dates

14 General Deadlines Cont’d 12/31/09, last date for 2009 to: –Pay-off leave balances for employees who separated in 2009 –Accept repayments for 2009 overpayments –Request manual checks for employees with net pay positive adjustments –ACH stops and reversals to process normally

15 General Deadlines Cont’d 01/11/10, December run 2, last date for 2009 to: –Request check reversals or cancellations –Enter non-cash expense reimbursements or fringe benefits –Correct negative YTD amounts

16 General Deadlines Cont’d 01/11/10 Cont’d – Last date to: –Request P060 adjustments for separated employees with net pay positive adjustments –Record 2009 return of overpayment –Correct payments from the B Nov or Dec Pay Reported in Two Tax Years

17 December Separations If paid by December 31, put in 2009 tax year with P010 Check Dates Watch for maximum amounts: –Social security - $106,800 –OSGP - $16,500 –FSA’s - $5,000 –SVNN - $5,000 per primary owner Between 12/28 and 12/31/09 can reverse check or ACH and reissue

18 Separations Before December Adjust / pay-off any remaining leave balances by 12/31/09 –E492 Terminated Employees Having Leave Balances Adjust / pay-off net pay positives –E Separated Employees with Net Pay Positive Adj

19 Transfers Do not set P010 dates for December transfers

20 W-2’s Will use address from the PPDB –Remind employees to update HR records Produced by 1/21/10 –E W-2 Distribution List –If transfer does not receive W-2, check with other agency Distributed by 1/31/10

21 W-2’s Cont’d If XREF68N Employees with Negative Amounts Listed has YTD negative, employee will not receive W-2

22 Deceased Employees 11/23/09 ANNLDEC Deceased Employees – Agency Summary Report –Make sure all 2009 deceased employees are on the report –Make sure there are no employees who should not be on the report IRS Form W-9 for estate and/or beneficiaries due by 1/4/10

MISC 01/31/10 = deadline to distribute 1099-MISC to payees of deceased employees’ final wages 1099-MISC if: –Payee receives ≥$ –Domestic partner insurance and ≥ 80 paid regular hours in final month DPT ≥$ –Back-up withholding (28%) for any payee, regardless of amount

24 SSN / EIN Verification When we file the 1099-MISC report, SSA compares SSN or EIN reported to the name in their file If they do not match, they return the form to us –$50.00 penalty to specific agency for each one that does not match –Payee cannot get back-up withholding refunded without a match

25 Foreign Nationals 01/04/10 = deadline for submitting: –OSPS Form –IRS Form 8233 or W-9 if exempt from withholding Non-resident aliens have different withholding requirements The will help ensure correct withholding and happy employees

26 Forms for New Tax Year New W-5 due by 1/4/10 New W-4 for tax exemption due 2/15/10

27 What Questions do you have?