1. Greater Los Angeles APA Chapter Presents:
Year End 2015
Becky Harshberger
desk

2. Agenda IRS and CA Updates for 2016 ACA update
CA Changes & UI fund Insolvency
All State UI outlook for 2016
Legislative Outlook for 2016 (Ok stop laughing)
Communication Plan
YE Checklist

3. Federal and CA updates for 2016 (check APA website for updates!)
FICA Base (ER) $118,500 (6.2%)=$7,347.00
CA SDI $106,742 (0.9%)
401(k) $ 18, $6,000
Mileage $ (2015)
Adoption Asst $ 13,460
Qualified Parking $
Transit Pass $
Health Flex $ 2,550

4. ACA: what payroll needs to know
On January 1, 2015 employers averaging or expected to average 100 or more FT employees (or FT equivalents) will be subject to the coverage mandate. Payroll and HR will be dealing with data collection around:
In 2016, the mandate drops to 50 FT or FT equivalents
Reporting the cost of healthcare on a W2 (code DD)

5. ACA Forms New Forms W2 Box 12, Code DD
1095 A (provides information you need to complete Form 8962 Prem Tax Credit)-sent from Health Exchange
1095 B (states employee had minimum essential coverage…usually sent by employer)
1095 C (info on plans offer by ER and self insured info)
1094 A (these are the transmittals for the forms above)
1094 B
1094 C
W2 Box 12, Code DD
Form 1095-B is used to report certain information to the IRS and to taxpayers about individuals who are covered by minimum essential coverage and therefore are not liable for the individual shared responsibility payment.

6. This is just stating what was OFFERED, it will NOT match Box DD on a W2. It will be used by an individual to determine if they are eligible for a premium tax credit on their Form 1040.

7. This is the proof you (and your dependents) had coverage, used to complete your Federal Income Tax Return (IRS Form 1040) NOTE: Info does NOT match Box DD on a W2

8. CA SUI Fund still insolvent
The Unemployment Insurance (UI) fund has a revised projected deficit of $5 billion by the end of 2016, according to a new report released by the Employment Development Department
Sacramento has a number of groups interesting in changing UI wagebase and in ways to pay off the debt….

9. States still repaying FUI
Trust Fund Loans
Outstanding Loans from the Federal Unemployment Account.
Balances as of September 03, 2015 are:
California $5,633,937,812.74
Connecticut $102,098,642.43
Indiana $225,126, (just paid it off!)
Ohio $874,835,016.53
Virgin Islands $72,204,422.99
Total $6,908,202,065.82

10. Legislative Outlook for 2016
Its an election year….
Mobile workforce bill gaining some traction
HR2315 in the House
S386 in the Senate
128 ‘co’ sponsors in House and Senate
Payroll Fraud Prevention Act
Identity Theft-accelerated W2s to SSA to Feb 15
Change in filing extension for W2s
Join the APA Government Relations Task Force!

11. Communication Plan

12. Communication Plan To Joe/Jane Employee Update your W2 mailing address
Date of last paycheck for 2015
When to expect W2
2016 W4’s (exempts)
What to do if you think you’re W2 is wrong
What to do if W2 is lost
2016 limits
FICA
CA SDI
Mileage
401(K)….50+ catch up
Flexible spending deadlines and new elections
Memo distribution: , common areas, website, stuffer, inner office mailer

13. Communication Plan
Communication with AP for reportable reimbursements (those that initially didn’t go through payroll….taxable relocation, life insurance, exec perk’s…)
Communication with Executives
Make ‘em feel special, send them a separate letter of information, set up a particular person to deal with exec or exec tax preparer

14. Communication Plan for 2015
IRS and state changes happen through out the year, how effectively are you communicating them to employees?

16. Year End Checklist for you
Create a checklist for your team that includes
What you need
Who is responsible for getting it to you
The date you need it
Ensure accountability with calendars and s

17. Payroll Dept checklist
Verify all stop pymts, voids and manual checks have been processed
Schedule an out of sequence payroll for any adjustments in advance
Schedule a bonus payroll!
Recon 401(k) and the employer match, true up if needed
1099 processing? (if you are responsible for A/P)
Backup your database (in-house systems)

18. Thank you for your attention! PS Plan your vacation now!!!