Going Paperless in Payroll - Ascentis · Going Paperless in Payroll Presented on Wednesday, June...

©2017 The Payroll Advisor1

Going Paperless in Payroll

Presented on Wednesday, June 14, 2017

Housekeeping

©2016 The Payroll Advisor

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Credit QuestionsToday’s

topicSpeaker

To earn RCH credit you must


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Stay on the webinar, online for the full 60 minutes

Be watching using your unique URL

Certificates delivered by email, to registered email,

by July 14th

Our Focus For Today

Updating and improving your direct deposit

Updating and Improving (or establishing) your pay card program

Going electronic on your timekeeping system

Filing quarterly returns or other required reports electronically

Making electronic payments where available for such items as child support payments and tax deposits

Implementing e-IWO for child support garnishments

Implementing an electronic portal for employee self-service of Form W-4

Distributing Forms W-2 to employees electronically for the initial copy

Distributing all duplicate Form W-2 requests electronically

Submission of request forms (vacation requests, address changes) to payroll electronically where possible

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About the Speaker


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Vicki M. Lambert, CPP, is President and Academic Director of

The Payroll Advisor™, a firm specializing in payroll education

and training. The company’s website

www.thepayrolladvisor.com offers a subscription payroll

news service which keeps payroll professionals up-to-date on

the latest rules and regulations.

As an adjunct faculty member at Brandman University, Ms.

Lambert is the creator of and instructor for the Practical

Payroll Online payroll training program, which is approved by

the APA for recertification credits.

Vicki M. Lambert, CPP, is President and

Academic Director of The Payroll

Advisor™, a firm specializing in payroll

education and training. The company’s

website www.thepayrolladvisor.com offers

a subscription payroll news service which

keeps payroll professionals up-to-date on

the latest rules and regulations.

http://www.thepayrolladvisor.com/

http://www.thepayrolladvisor.com/

Updating, implementing and improving

your programs

Direct Deposit and Paycards7


5 Steps to Improving Direct Deposit


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Get Your House in Order First


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Are your sign up forms bad?

Do you include directions and samples?

Are the forms easy to access and submit but still secure

Do you

explain

how

long the

process

will

take?

Survey Your Employees


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Can be essay or check box style

Can be quick email or paper form

Helps narrow your marketing

Survey Your Employees11

Don’t waste time doing all company e-mail blasts

Direct e-mail only the employees who get paper checks

This is the time for paycheck stuffers!


U.S. Treasury Survey12

Came up with 4 main reasons why they wanted a paper check

1. Money management

2. Sense of control

3. General Inertia: Haven’t gotten around to it

4. Mechanical limitations: there is a block to them having a bank account


Create the Target Marketing

Materials


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Create marketing

to target reasons

given in survey

Design marketing

to address

majority of needs

or concerns

Use materials

that will reach the

target audience

such as payroll

stuffers

Conduct the Campaign


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Conduct the campaign on many fronts

And keep it going!



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Live sign up

on site

Employees

like help

Banners and

signs

Employees

need to be

reminded

Create FAQs

Employees

need facts



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Create a slogan—such as

“Lose Wait”

Hold webinars

and online

meetings

Get banks and

credit unions

to help sell it



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Get testimonials

Direct

deposit is

great!

Have staff advertise when

distributing checks

Get balloons, coffee mugs or other

items to promote the campaign

Remember New Employees


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New Employee Orientation


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Have someone from payroll attend to explain the program plus complete and accept direct deposit forms

Need more than 2 minutes

Do a slide presentation explaining the benefits

Need time to answer questions and accept forms

Maybe a table at the back after your presentation

New Employee Orientation


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May have to have more than one employee there

Warn employees in advance that they need to bring a voided check with them to sign up—HR should do for you in the info packet for the orientation

You can state these things but can’t force so state forcefully

Any new employee who did not sign up gets a follow-up e-mail reminder prior to first paycheck

New Employees


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Special stuffing in paycheck for first payroll as a reminder to sign up…I put in the form itself

They go on your targeted marketing list if they fail to sign up by the second payroll…don’t let them slide

Focus some of the posters and displays around at new employees specifically

Post signs etc. in HR where new employees are hired or interviewed

Rinse and Repeat…


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This is an ongoing marketing campaign until there is 100% participation of all employees who are bankable

No time limit

May find trouble spots that you can adjust your marketing campaign as you go along

Trouble Spots


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Older employees can sometimes be wary of electronic payments if they are not used to it

Try “identity theft” protection

Remind them that they will have direct deposit when they are on social security—say nicely of course!

Cultural differences will be a challenge

After 2008—I hate banks attitude!

Steps to Improving Pay Card

Program


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Get house in order

Survey unbanked employees

Create target

marketing

Run the campaign

New employees

Using the same steps

Unbanked not undecided

Final Thoughts


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Going electronic on your timekeeping

system

Timekeeping26


Going Electronic with Timekeeping


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According to the American Payroll Association’s The Payroll Source:

“…as much as 1% to 3% of labor costs are wasted on errors, processing costs, faulty time recording, and noncompliance penalties…Time and Attendance Automation can help control these costs”

Benefits of an Electronic System28

Less time spent processing

Fewer errors introduced during processing

Decreased costs

Increased compliance with federal and state wage and hour regulations

More efficient data for use by management to control labor costs


Making electronic payments and filing quarterly returns or other required reports electronically where available even if not mandatory

Paying and Reporting Taxes

Electronically29


Electronic Filing of Reports


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There are states that require employers to file quarterly reports electronically but we are discussing when the state gives the option to e-file or paper file

To cut down on paper use always use the e-file option even if not mandatory

EFT to Save Time and Paper


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Many states have mandatory limits that require EFT payments—California for example

Go Green—do all deposits via EFT regardless if required by the state—just as done for federal taxes

Implementing e-IWO for child support

garnishments and paying using EFT

Child Support32


E-IWO for Child Support


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Office of Child Support Enforcement working with employers and states to automate the income withholding process with electronic income withholding orders or e-IWO

2 types of implementation options

E-IWO Options

Medium to large employer who has IT resources that can commit several months to programming

IWOs sent in flat file format or .XML document

You process and make appropriate updates to payroll system

Get PDF of IWO

You create acknowledgement record whether accepting or rejecting

Takes 3-5 months to implement

Receive small number of IWOs or

have no IT resources

Receive an image ready PDF copy

of the IWO and a prefilled

acknowledgment as an excel

spreadsheet or PDF

Takes 2-4 weeks to implement

Need to configure server and

directories so some IT support is still

needed

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Option 1—System to SystemOption 2—No Programing Option

(NPO)

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PDF

Acknowledgement

Sample


Want a Single Acknowledgement

Entry Form?


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XLS is for you

Receive a IWO PDF of each income withholding order sent to you by a state and a single spreadsheet for acknowledging

Enter “accept” or “reject” for each row

Supple a reason code if rejecting

Save the file

Move to outbound directory

You are done


XLS Acknowledgment Sample

How to Enroll


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Must register by completing the e-IWO profile form and providing FEINs

Profile form includes:

Agreement to exchange data

Contact information

Exchange preferences (system to system, PDF or excel spreadsheet)

File names

Server info such as User ID, Password, IP Address, Host Name, directory Name and Port

How to Enroll


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The Employer Can Also


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Notify a state when an employee is terminated

Notify a state when an employee is going to receive a lump sum payment

Employer controls when the notices are released

Terminating Employees


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Upon termination, mail or fax a completed "Termination Notification" form to the issuing agency, OR some states will accept this information over the telephone or online. The employer should have the following information available:

Employee's name,

Employee's case identifier,

Last known home address,

New employer's address (if known), and

Date of separation.

eTerm


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Electronic Termination (eTerm) allows employers to report employee terminations online. Registered employers provide information about employee terminations (or that an individual has never worked for them) either by uploading a file or entering information in the online eTermapplication.

How Employers Can Participate

Employers currently registered with the Lump Sum Reporting application on OCSE’s Child Support Services Portal are automatically enrolled in eTerm.

Employers who are not registered for the Lump Sum Reporting application should contact the Employer Services Team at [email protected] for a brief demonstration of the application. Once the demonstration is completed, employers can register to use both the eTerm and Lump Sum Reporting applications by completing the Employer Services Agreement and Profile form.

mailto:[email protected]

http://www.acf.hhs.gov/programs/css/resource/employer-services-agreement-and-profile-form

eTerm Process


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Employer:

Provides notification that the person is no longer or was never employed by the employer

Receives an acknowledgment indicating whether the file was successfully uploaded to the Employer Services Web Application

Views report files, which are available for download for 60 days.

eTerm Application:

Generates notification of the termination to the state either through an e-IWO file (if the state participates with e-IWO) or

Sends an email notification of the termination to the appropriate state child support agency.


Map courtesy of the OCSE

Lump Sum Reporting Process


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Employer:

Provide information about employees who are eligible to receive a lump sum payment using one of these methods: Enter information about each employee into the fields on the

Lump Sum Reporting screen

Upload a Microsoft Excel spreadsheet (or similar format) to report many employees at one time

After providing pending lump sum payment information, you will: Receive confirmation that the information was uploaded

Be able to review errors if the information was not uploaded

Correct the errors and resubmit files

View information you reported in the last 60 calendar days

Lump Sum Reporting Process


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OCSE Portal:

Validate the file upload

Notify the employer if there are file errors

Re-validate the file once the employer resubmits it

Compare information provided by the employer to individuals who owe child support

Generate notification to the state(s) about the pending lump sum payment

Provide details about information submitted by employers for 60 calendar days

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Map courtesy of the OCSE


Paying by EFT


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Only 15 states require child support to be paid electronically. These include: CA, FL, IL, IN, IA, MA, NE, NV, ND, OH, OR, PA, TX, VA, and WV

All state child support agencies except for South Carolina accept payments by EFT/EDI (electronic funds transfer/electronic data interchange)

EDI includes the identifying information such as case number to properly apply the payment

MT

WY

ID

WA

OR

NV

UT

CA

AZ

ND

SD

NE

CO

NM

TX

OK

KS

AR

LA

MO

IA

MN

WI

IL IN

KY

TN

MS AL GA

FL

SC

NC

VAWV

OH

MI

NY

PA

MD

DE

NJ

CTRI

MA

ME

VT

NH

AK

HI

Requires EFT

Offers EFT but does not require

Does not offer EFT

EFT Requirements


Implementing an electronic portal for

employee self-service of Form W-4

Form W-454


Electronic Form W-4


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May establish system that allows employees to submit their initial form or change existing form electronically

Paper form must be available as well

Paper form can be required for some employees if business reason justifies

Must be able to provide questionable forms to IRS electronically

Tech Specs for Electronic Forms


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Electronic version must contain exact same info as the paper version-no exceptions

Must be PIN or verified system

Lock-in letter compliance must be available

Perjury statement must be there

Employees must understand that it is signed under penalty of perjury just like the paper form

Tech Spec Continued


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Electronic signature required

Must be able to print hard copy

All other regulations apply the same as paper form

Practical Point: Good to have a system that

requires employee to acknowledge perjury

statement in order to submit as a separate step

Distributing Forms W-2 to employees

electronically for the initial copy and for

duplicates

Form W-258


Electronic Forms W-2 to Employees

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Software or website specs will vary

Employee must consent—electronic consent even if consenting on paper

Big stumbling block is disclosure requirements

Statement can be furnished on the web if employee given access info

See link section – IRS code


Disclosure Requirements

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May get paper if they want it

How long will the consent last

Procedure for paper copy after giving consent

How to withdraw consent and how it is confirmed

Conditions on when electronic Form W-2 is not

available

Procedures for updating contact info for employee

Employer must notify if changes in contact info for

employer


Disclosure Example from Yale

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• If an employee does not consent to receive an electronic version of Form W-2, he or she will be furnished a Form W-2 on paper.

• The 2012 Electronic Form W-2 Consent Statement is effective for Forms W-2 issued for the calendar year 2012 and all future periods until consent is withdrawn or the individual is no longer employed by the University.

• After giving consent, an employee may still request a paper Form W-2 by contacting the Payroll office in writing. This may be done via email to: [email protected] or U.S. mail to: Payroll Department Attn: Tax Form Request, Yale University, P.O. Box 208356, New Haven, CT 06520-8356. The request for a paper W-2 will not terminate consent.

• An employee may withdraw his or her consent with 30 days' notice by sending a written confirmation of the withdrawal and its effective date. This may be done via email to: [email protected] or U.S. mail to: Payroll Department Attn: Consent Request, Yale University, PO Box 208356, New Haven, CT 06520-8356. The withdrawal of consent does not apply to a Form W-2 that was furnished electronically before the withdrawal of consent is furnished. Upon receipt of the withdrawal, the University Payroll Department will send a written confirmation of the withdrawal via U.S. mail or email.




Disclosure Example from Yale

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• The University will not provide the Form W-2 electronically to an individual who has terminated his or her employment with the University prior to 1/1/2013. These individuals will receive paper copies via U.S. mail. Only active University employees will have access to the electronic version of Form W-2. If a former employee requires an additional copy of the Form W-2, he or she may follow the aforementioned methods of contacting the University Payroll Department.

• If an employee has consented to receive an electronic version of Form W-2 and has not printed the form prior to termination, he or she should contact the University Payroll Department in order to receive a paper copy via U.S. mail.

• An employee must contact Yale University Payroll Department immediately with any updated contact information (e.g. email address, mailing address, etc). This may be done via email to [email protected] or U.S. mail to: Payroll Department Attn: Tax Form Request, Yale University, P.O. Box 208356, New Haven, CT 06520-8356.

• The hardware and software requirements needed to access, print and retain Form W-2 electronically include an internet connection, web browser, and Adobe Acrobat reader.

• The electronic version of Form W-2 will be available on the web site for at least 3 years from its original posting date.

• The Form W-2 may be required to be printed and attached to a federal, state, or local income tax return.



Duplicate Form W-2

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Nothing in the regulations require a duplicate

form to be on paper

No disclosure required for duplicate forms

May require employee to download—should

furnish printer and computer to use just in case

Employers are not prohibited from charging a fee

for the issuance of duplicate Form W-2 per IRS

Code—charge for paper not for electronic?


Submission of request forms (vacation

requests, address changes) to payroll

electronically where possible

And Finally Internally64


Going Paperless Internally


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What about Paystubs?


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40 states have some type of requirement for paystubs or pay statements

Paper or electronic-7 states have enacted legislation permitted electronic 1 has issued statement

DE, HI, IA, ME, MN, NC, OK, and OR

CA, NM, NY & VT employee must agree to it

Websites


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If you have one they

must be up-to-date

If you don’t have one—

get one if possible

PDF files of all forms,

links to IRS or state info

FAQs and all policies

Examples

Are There Any Questions?


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How Can Ascentis Help Me?

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Ascentis Payroll helps you “go green”! A number of routine payroll

tasks have been automated so you can say goodbye to your forms.

• New hire forms such as direct deposit requests and W-4 forms

can be entered and changed by your employees directly in

Employee Self Service.

• Employee changes (such as address changes) and employee

requests (such as time off) are also maintained in ESS.

• Ascentis Timekeeper allows form free timecard entry and

approval.

• Employee payment information (check stubs and W-2s) have a

full paperless option.

• Let our tax service file your quarterly returns for you.

• Send child support and garnishment payments to agencies via

EFT rather than a printed check.

To earn RCH credit you must


70

Stay on the webinar, online for the full 60 minutes

Be watching using your unique URL

Certificates delivered by email, to registered email,

by July 14th

On-Demand Webinars


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Watch from anywhere, at anytime, at no cost to you!

Download Slides? Watch again?


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Sharing the Education


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Contact Us


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[email protected]

www.ascentis.com

800.229.2713

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