USPS procedures CYE15.docx 2015 USPS …\YEAR END\Calendar\CY2015\USPS\USPS procedures CYE15.docx 1...

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2015 USPS CALENDAR YEAR END PROCEDURES

PRE-W2 PROCESSING

Please refer to CYE supporting documentation on the NCC website:

http://www.nccohio.org/fiscal/cye/usps

NC1 Payments/NC3 Payments

____1. Be sure to run your NC1 pay types for Life Insurance premiums over $50,000 before the last

payroll of the calendar year.

____2. Non-Cash taxable fringe benefit payments. Do you have NC3 payments, any benefits paid through

budgetary, that should appear on the W2?

USPSDAT/DEDNAM RECORDS:

____1. Check W2 abbreviations on city DEDNAM records. The W2 form will truncate the abbreviation to

six characters even though the field in DEDNAM allows twelve characters.

____2. For cities using either RITA or CCA to report city tax information, verify the tax entity code, the

appropriate RITA and/or CCA description, and that these fields are updated correctly on the

USPSDAT/DEDNAM records. The most recent code listings for RITA and CCA cities can be

found in the supporting documents on the NCC web page.

____3. For districts reporting to the City of Lakewood, Lorain and/or Bedford, the tax information should be

filed electronically. NCC will submit this data on your behalf. Make sure to send NCC your

completed tax reconciliation sheet and we will include it with the file transmission.

Insure the correct tax entity code is in the city tax record in DEDNAM

LAKEW tax entity code for Lakewood

LOR tax entity code for the Lorain

BEDFO tax entity code for the Bedford

AMHER tax entity code for the Amherst

BRUNS tax entity code for Brunswick

____4. Insure the OSDI four digit code appears in the W2 abbreviation field in DEDNAM, followed by

two letters of the school district. The four digit OSDI code is required on the W2.




____5. Review Tax Board Amounts fields on city tax records in USPSDAT/DEDNAM

• The “Tax Med/FICA pickup” flag should be a “Y” if the city taxes Medicare pickup wages.

Medicare pickup is added to the city total and taxable gross amounts; employee pays tax

after the fact, IF deduction 694 is not included in the Tax Board Amount field.

• If Tax Board Amounts is a “Y” and the deduction code being taxed is listed, tax is

withheld during the payroll process. If Medicare Pickup, deduction 694, is listed, no

Medicare pickup is added to the city wages, even if the “Tax Med/FICA pickup flag” is “Y”.

Extra tax is paid throughout the year. Make sure you enter the applicable deduction

codes to be included as taxable. (Ex: 690, 691, 694) Regular payroll withholding will

begin with the payroll immediately following the modification of the city DEDNAM to a

“Y” and the listing of the deduction that is taxable.

____6. Verify all annuities are coded with the proper annuity type in DEDNAM. Retirement records of

590 and 591 should be coded as an annuity type B (401 (a)). If you are unsure of the type of annuity,

contact the annuity company.

____7. Health Savings Accounts – DEDNAM record must be set to an annuity type of “I” for Board and

Employee voluntary contributions AND Include as employer-sponsored health coverage?: is

answered as N. Use MASCHG/BRDANN routine (HSA) even if there are NO employee

contributions. HSA premiums will be marked as an annuity type “D” if they are 125 non-wages

and will follow normal health deduction rules. The HSA premiums should be marked as “Y” to

Include as employer-sponsored health coverage?

____8. A prompt and flag were added to the ‘REG’ and ‘ANN’ deduction types in DEDNAM for Employer

Sponsored Health Care. If DEDNAM record has marked Include as employer-sponsored health

coverage?: Y then the YTD deduction totals will be included on the Employees W2 as health care

costs (Employee and Board portions).

USPSCN/DEDSCN RECORDS:

____1. Verify the Employ/Residence field on the DEDSCN for all RITA and CCA city deductions.

Residence = R, Employment = C. If employee is both…mark as “C.”

____2. Process or make any necessary changes to the YTD gross pay, YTD taxable gross pay, and/or

deductions for the W2 forms for Special Payments.

Sources of these changes may be:

• Taxable Fringe Benefits – employee reimbursements

NC3 pay type may be used during a payroll to withhold taxes from employee reimbursements

• Life Insurance in excess of $50,000

(Should be processed as NC1 during normal payroll before year end)

• Adoption Assistance

• Third Party Sick pay

• Leased Vehicles

• Annuities identified as insurance. (your carrier will notify you)



____3. If an employee has reportable dependent care information that needs to appear in Box 10 of the

W2 form, there are two ways of reporting:

If the DPCARE deduction type in the DEDNAM is being used for the payments, no further

corrections are necessary

If the DPCARE deduction type is NOT being used, enter the dependent care amount in the

dependent care field on the 001 Federal DEDSCN record

____4. The Pension Plan flag must be filled in on the Federal deduction record. This field will

determine whether or not the pension plan box on the W2 form should be checked. The values for

the field are:

A = Automatically checks the box if W2PROC finds an active retirement record for an employee.

Y = Yes, indicates to W2PROC to always check the pension plan box.

N = No, means to never check the pension plan box.

• If severance is paid in the year after retirement, the box should not be checked if severance is

the only payment on the W2. However, if the individual is re-employed in the following

calendar year, the box will need to be re-checked.

• If students waive their enrollment opportunities to SERS and STRS, the "Pension Plan" flag

should be set to a "Y" for the first year of employment. If they work in future years, then the

box should not be marked so the record will need to be changed to an “N”.

• If Board members elect to contribute to FICA, they are not considered eligible to participate

in SERS so the box should be marked “N” or could be an “A” because there will not be any

retirement record on file so it will automatically know not to check the box. If Board

members elect to contribute to SERS, then the box can be checked “Y” or “A” and must

have active SERS retirement DEDSCNs.

____5. A deduction record (DEDSCN) may need to be added to include health insurance payments received

via personal check/cash from employees for Employer Sponsored Health Care that are not deducted

from the employees paycheck. Typically, this would be a REG deduction with a 600 series

deduction code marked as a “Y” to ‘Include as employer-sponsored health coverage?’ on the

DEDNAM record.



MONTH END PROCEDURES

____1. Pay all deductions and complete month end procedures as normal.

Run PAYDED to produce a non -zero deduction report. (Use the projection option, set the payment

option to “A” and leave the pay cycle and deduction code fields blank.) This report will verify that

there are no outstanding deduction amounts.

____2. SERS Retirement: Run the RETIRE program and select the SERSREG option.

Do NOT say Y to create the SERS tape at this time……balance all the way

through the W2s before saying Y. Saying Y to the tape will CLOSE the month of

December and further corrections or adjustments cannot be made for the

Calendar Year.

Verify the total contribution amount listed on the report equals the total of the deduction

checks for the withholding plus any warrant checks written for pick-up on pick-up.

Verify retirement contributions by employee equal earnings multiplied by the applicable

retirement percentage.

Review retirement service credit days for all employees on the report. YTDRPT can also be

run to help verify days on the report.

Verify New Hires have been reported. Verify that you have either submitted this information

through the SERS website by uploading the SERSHIRE.SEQ file or manually entered the

information for employees listed on the report as “new” through the SERS website.

____3. STRS Retirement: Clear STRS MTD field (450 record) using the STRSMONTH program.

____4. Balance the payroll account.

Run the CHKSTA or PAYREC programs to reconcile checks.

Run CHKSTS to generate an outstanding check register.

____5. Run BENACC (if applicable) to accrue sick leave and generate a benefit balance report.



QUARTER END PROCEDURES

BALANCE QRTRPT

____1. Generate QRTRPT the first time by saying "N" to report for individuals.

This will allow you to have your deduction totals readily available to check for accuracy.

While checking the totals, re-process QRTRPT a second time

saying "Y" to report for individuals and choosing Option "N" No Totals Zeroed

(Demand Report).

In the “Totals” section of QRTRPT, the gross and adjusted gross should

balance. The “Difference in Gross” fields should be zero.

The gross amount pulls from the JOBSCN page 3, the annuities pull from the

DEDSCN YTD fields and the calculated gross pulls from the Federal tax record

taxable gross fields.

____ a. Deduction totals should equal the total of all deduction checks written for the period being

checked. Also, be sure to verify the electronic transfers of Federal and Medicare payments

balance.

____ b. Gross amounts should equal the total of all payroll clearance checks created during

CHKUPD for the quarter.

____c. The total of all Board paid amounts (if tracked by the system) should equal the total of all

warrant checks to the vendor or deduction company.

If totals do NOT balance refer to the documentation on our website.


Do NOT choose option “Y” - Zero QTD and YTD Totals while running QRTRPT at

this time…balance all the way through the W2s before choosing option “Y”.

Choosing option “Y” will Zero out the QTD and YTD Totals and CLOSE the fourth

quarter of 2015 and further corrections or adjustments cannot be made for the

Calendar Year.




BALANCE ODJFS REPORT

____ 1. Run ODJFSRPT to generate a report for your ODJFS wages and weeks worked. The first time you

process the report, answer "N" to “Create a Submission file”

____ a. Check all totals for accuracy. Specifically, compare the total ODJFS wages to the QTD total

gross from the QRTRPT. Keep in mind that students and Board members are flagged “N”

to ODJFS so you’ll need to subtract their wages from the QRTRPT to balance to the

ODJFSRPT. NC1 payments may need to be subtracted as well.

____ b. Verify the number of weeks listed for employees is correct. ODJFS weeks count the first

Saturday in the quarter through the last Saturday in the quarter. A week is counted if the

Saturday following falls within the reporting quarter. A qualifying week is any week in

which an employee has worked at least part of a day.

____ c. Verify that the Number of Covered Workers field has totals. For those Districts that do not

include weekends in INICAL and in the event the 12th day of the month falls on a

weekend, the report will not count any employees because the 12th was never initialized.

____ d. Once you have verified that all information to be reported to ODJFS is correct, then run the

program again and answer "Y" to “Create a Submission file”. This will create the file

and close ODJFS for the quarter. This will clear ODJFS quarter to date figures on the State

Income Tax deduction record (002).

____ 2. Send email to [email protected] when the above step has been completed and

ODJFS tape is ready to be verified by NCC Staff.

mailto:[email protected]



CALENDAR YEAR END PROCEDURES

Please refer to CYE supporting documentation on the NCC website:


Information on the W2REPT.txt should balance to:

941 totals reported

ERNREG amounts

QRTRPT amounts

Federal, State, City and OSDI remittances

BALANCE W2REPT

____ 1. Run W2PROC to generate the W2REPT.TXT report.

a. Answer "N" to create a tape file until the report is verified and correct.

b. Enter Kind of Employer = S (State and Local Governmental Employer)

This could be a Y for a Community School District

c. Do you want Box 14 to print Fringe Benefits if there are any? (Y/N <N>): Y

d. You may enter up to six deduction codes to appear on the employees W2’s. Only the first

three deductions the system encounters for the employee will print in box 14 of the

employee’s W2.

Recommended deductions to include: Leased vehicles (always include), union dues,

United Way, SERS/STRS

These will print in the order of entry, not in deduction code order.

Use of these codes is optional. Enter “999” if you want to bypass this option.

e. Would you like to print a dummy W2 for form alignment? (Y/N <Y>): N

_____ 2. Print the W2ERR and the W2REPT reports to verify the data. See the W2PROC document

for error explanations. All fatal errors must be corrected, warnings and informational errors

should be reviewed. Rerun W2PROC as many times as necessary until all data is correct.

Special payments that affect balancing between W2PROC and QRTRPT are:

Medicare pickup amounts

Taxable third party sick pay

Leased vehicle amounts, other fringe benefit amounts

Dependent care benefits over the $5,000 limit

These amounts are added to total and taxable gross which cause the gross amounts on the W2REPT

to be higher. Refer to the supporting documentation on the NCC website.

____ a. Balance the Federal, Ohio, and City taxes and gross amounts on the W2REPT to the

QRTRPT and ERNREG reports.

____ b. Balance the deduction totals on the W2REPT report with the YTD totals on the

QRTRPT and the ERNREG (run for all employees for the 2015 CY and refer to the last

few pages).

____c. If errors are discovered, check employees that had exceptions processed during the

quarter such as voided checks, error adjustments, or manual changes in USPSCN. The

AUDRPT program can be useful in identifying these problems.




W2 PROCESSING

____1. Once you are ABSOLUTELY SURE the report is correct, run W2PROC again and

answer "Y" to “Create a Tape file.” You will need to enter your FEDERAL and STATE

identification numbers in W2PROC if they are not correct on your configuration screen. It is critical

these numbers are correct.

W2PROC has been updated to prompt for five new fields that will be added to the tape file

submitted to the SSA.

Employer Contact Name

Employer Contact Phone Number

Employer Contact Phone Extension

Employer Contact Fax Number

Employer Contact Email Address

The entry of this information is not mandatory but is highly recommended by the IRS.

NCC will print the W2’s in the same SORT you select when processing W2PROC.

____ 2. Send email to [email protected] when W2PROC has been processed, the tape file has

been created and you are ready to have NCC print your W2’s.

NCC will not begin to print your W2’s until the district’s last pay date for 2015 has passed.

W2’s will be printed in the order in which email is received.

____ 3. Complete the W2 Submission Form and send to NCC (email, FAX or snail mail) ASAP

Include the total TAXABLE Gross and the record count of the W2’s

Indicate if NCC will be electronically filing RITA or CCA for the district

Indicate if NCC will be electronically filing Amherst, Bedford, Brunswick, Lakewood or Lorain

City Taxes

If you are using KIOSK , do you want SSNs included on the W2s?

____ 4. W2 EMPLOYEE distribution is as follows:

NCC will distribute to the District, the employee’s mailer form. If an employee has two city or OSDI

tax records, the W2 form necessary to accommodate this information will print on the W2

immediately following the employee’s primary W2. The employee will receive two W2’s in this

situation. The Employee form will also be put on Kiosk if the District has this system implemented.

W2 EMPLOYER distribution is as follows:

The District will receive a CD with the Employee and Employer forms. The Employee and Employer

forms will also be put on PAYROLLCD. Reprints will be the Districts’ responsibility.

NCC will send W2 data to SSA and the State.

____ 5. Send the completed State IT-3 form to [email protected]. Your IT-3 must accompany the

file NCC sends to the State Department of Taxation. The form is available at the following web

address:

http://www.tax.ohio.gov/Forms.aspx



http://www.tax.ohio.gov/Forms.aspx



LOCAL TAX PROCESSING

You are responsible for providing the W2 information to your localities that do not require electronic filing.

If you have a City that requires electronic reporting (RITA, CCA, AMHERST, LAKEWOOD,

BEDFORD, BRUNSWICK, and LORAIN) please include this information on the W2 Submission Form.

NCC will then submit to RITA, CCA, AMHERST, LAKEWOOD, BEDFORD, BRUNSWICK, and

LORAIN electronically. Please send your completed reconciliation sheet to NCC and we will include it

with the file transmission.

RITA Form 17-To avoid a possible letter

from RITA DO NOT include

Total number of 1099s enclosed (see right):

OPTIONAL REPORTS

____a. YTDRPT – You may run YTDRPT and distribute to each employee the page with their

personal data. This can be a useful tool and is helpful in locating inaccuracies, thereby

assisting you in keeping your data up-to-date. This report now has the option for various selections.

____b. UNION – It is a good time to process the UNION report. The report will give you all of the

information OAPSE requests each year.

____c. WORKCOMP and SRTCMP (USAS/USAS_LCL) – You may need to work with your budgetary

employee to obtain all the information needed to run both reports. These reports can be used to

determine the charge off for Workers’ Compensation. The W2REPT totals are needed as well as

your Workers’ Compensation percentage rate and discount percentage. Documentation for this

program is available on our web page.

IF the District requires hard copies of quarter year end reports, run the following:

EMPMST (all data) ERNSUM (all data for quarter)

ERNREG (all data for quarter) QRTRPT (all data-demand report)

Once satisfied with W2’s and balancing…. Begin to close Calendar Year 2015:

Run SERSREG again and answer YES to create the tape file to clear totals and create the tape

submission file for December

Saying YES to create the tape CLOSES the MONTH for any further payroll processing.

Make sure you are ready to close the month and the year!!!!

Send email to [email protected] to inform NCC your SERS tape has been created




CLOSING OUT THE QUARTER and CALENDAR YEAR:

___ 1. RUN THE PAYCOPY ROUTINE – this copies your payroll files so you can retrieve

calendar year data (as of 12/31/15) using FISCAL_SELECT or HISTORY.

All payroll users (other than you) should be off the system while this routine is running.

The Calendar CD routine will run before your files are copied. This procedure generates the USPS CYE

reports below.

http://www.nccohio.org/fiscal/payrollcd

**Click on your district and type in your Reflections username and password in all UPPERCASE**

PAYROLL REPORTS ON THE WEB

Calendar Year End Payroll Reports copied to your Web reports:

ABS101 ERNREG

AUDRPT W2ERR

BENRPT W2FORM

CHKSTS W2REPT

EMPMST YTDRPT

The PAYCOPY process will take some time to process. Below is a screen shot of what will

appear on your screen once the PAYCOPY option is selected and you enter C to Continue: Save payroll files... Please make sure all users are out of the PAYROLL programs C - continue E - exit C USPS Payroll Calendar-Year-End report file create & copy routine ... This procedure will generate a standard set of Calendar Year End reports for later archival on CD-Rom. Job CALENDARCD (queue GRFSS$BATCH, entry 5659) started on GRFSS$BATCH USPS Payroll Calendar-Year-End data file copy routine in process... Payroll file copy complete... Please do NOT continue until you receive email that the year-end reports routine Has completed... This may take some time as the reports are very long. Enter command, or press <cr> to display menu.

***DO NOT PROCEED UNTIL YOU RECEIVE ACKNOWLEDGEMENT

FROM AN NCC STAFF MEMBER THAT YOUR PAYCOPY RAN

SUCCESFULLY***

EASTT

WEST

http://www.nccohio.org/fiscal/payrollcd



You will receive an automated confirmation email that the PAYCOPY procedure completed

(below is an example of the email): -----Original Message----- From: [email protected] [mailto:[email protected]] Sent: Thursday, November 21, 2015 7:58 AM To: NCC - Fiscal Systems Subject: Payroll... Payroll files have been copied to save area...

___ 2. Send email to [email protected] when the PAYCOPY routine has been

completed so NCC Staff can verify your backup ran successfully.

***DO NOT PROCEED UNTIL YOU RECEIVE ACKNOWLEDGEMENT

FROM AN NCC STAFF MEMBER THAT YOUR PAYCOPY RAN

SUCCESFULLY***

Before you zero out your quarter and calendar year;

Have YOU received acknowledgement from NCC Fiscal Staff that your

PAYCOPY ran successfully?

After you have received confirmation:

___ 3. RUN QRTRPT AND:

CHOOSE “Y” TO INDIVIDUAL TOTALS

CHOOSE “Y” TO ZERO OUT ALL DATA FOR THE QUARTER AND

CALENDAR Report for all individuals or just deduction totals Do you want the report by individuals? (Y/N <Y>) _ Y Zero Options: Q - Zero QTD Totals Y - Zero QTD and YTD Totals F - Zero QTD and FTD Totals N - No Totals Zeroed (Demand Report) Z - Zero FTD Totals ONLY! E - Exit Program Enter Option:<N> _ Y Closing period is for December 2015

___ 4. To insure the data cleared correctly, run the QRTRPT program again using the Demand

option and verify that the year to date and quarter to date totals on the report are zero.

Welcome to Calendar Year 2016!




REMINDERS

____ 1. Did you send an email to...

Notify NCC ODJFS is ready for 4th quarter?

Notify NCC your W2’s are ready?

Completed the W2 Submission Form and sent to NCC?

Submit State IT-3 Form to NCC?

Notify NCC SERS is ready for December?

Notify NCC that PAYCOPY has processed?

____2. Submit all required forms for CYE:

Federal 941 Form

State IT-3 (Send to NCC)

IT-942- if you remit State withholding taxes quarterly

Ohio School District Income Tax Reconciliation (if applicable)

RITA, CCA Tax Reconciliation (send to NCC)

Amherst, Lakewood, Bedford, Brunswick, and/or Lorain Tax

Reconciliation (if applicable, send to NCC)

Cities:

Unsure if employee should be taxed by a municipality?

Use the website below using the employee’s address: https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/AddressLookup/LookupByAddress.aspx?taxType=Municipal

OSDI:

OSDI code must be in BIOSCN

https://thefinder.tax.ohio.gov/streamlinesalestaxweb/default_schooldistrict.aspx

May be able to use MASCHG/MASADD for any mass changes.

Click

Here

https://thefinder.tax.ohio.gov/StreamlineSalesTaxWeb/AddressLookup/LookupByAddress.aspx?taxType=Municipal

https://thefinder.tax.ohio.gov/streamlinesalestaxweb/default_schooldistrict.aspx

USPS procedures CYE15.docx 2015 USPS …\YEAR END\Calendar\CY2015\USPS\USPS procedures CYE15.docx 1...

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