Tips and Tricks for Year-End Payroll Be Proactive, Not Reactive

Transcription

1 Tips and Tricks for Year-End Payroll Be Proactive, Not Reactive

2 About Symphony SAP Services Partner with an exclusive focus on SAP HCM consulting services Headquartered in Charlotte, North Carolina WBE Certified by the WBENC (Women s Business Enterprise National Council)

3 About Symphony s Team Platinum level consultants with both business and SAP experience Global Consulting Expertise strengthened by numerous multicountry HCM roll outs Industry Focus includes: Utilities/Oil and Gas/ Chemicals Life Sciences Public Sector (Local, State, Federal, K-12) Manufacturing & Distribution Consumer Goods

4 We will learn: In This Session... How to get your system ready and perform configuration updates Ways to approach YE processing to ensure success What tools are available to assist with YE closing How to create an annual project plan and check list 4

5 What We ll Cover Getting your system ready Year-End Configuration Processing Know Your Tools Year-End Processing Issues 2010 Updates Setting up for 2011 Planning Check List vs. Project List 5

6 Getting your system ready Outstanding Payroll Issues Is this important?

7 Getting your system ready System Status Check- Up SAP BSI Support Stacks Transports YE Notes TUBs Prepare for 9.0 Transports Resolution Development Clients Dev Client 100 Dev Client 101 Q (Pending Transports into Prod) Client 200 Client 201 Transport Clean-Up Review of pending Transports to Production Development Unreleased & RPI Pending Import New Development Stops Sandbox System Current Production Data and Config Support Stacks Applied Development Review Sandbox Test Sandbox QA Review QA Test QA Production Stop Auto Imports into QA

8 Getting your system ready Preparation Forms ERP 6.0 is required to use SAP Print Forms by Adobe. SAPscript forms are only available if it is necessary to reprint tax forms for 2006 or prior. Form changes for 6.0 higher /14/10 Note for SAP delivered 4-Up Form is Note for the Self Sealer Form is Printers Configure/Set-up Printer If this is the first time to print W-2s don t forget this task!

9 Now What? Now that the system is ready, are you?

11 Form W-2 Year-End Configuration W2 Boxes Define Format Communication to employees to update addresses Use SAP guides Tax Reporter Made Simple, and User Guide for W-2 Post-Filing Run. If needed use W-2 Processing for Puerto Rico

12 Form W-2 Year-End Configuration W2 Boxes Configuration for box 12, like most boxes on the W-2 uses wage types from the payroll results. In order to have amounts presented on the W-2, you must link your custom wage types to the tax form groups provided by SAP. Link wage types to tax form groups W23A, W23B, W23C, W23D, W23E, W23F, W23G, W23H, W23J, W23K, W23L, W23M, W23N, W23P, W23Q, W23R, W23S, W23T, and W23V.

13 Form W-2 Year-End Configuration W2 Boxes Configuration for box 13 items are the checkboxes for Statutory Employee, Retirement Plan and Third Party Sick Pay. Link your custom wage types to the tax form groups W25A, W25C, W25G and W25H.

14 Form W-2 Year-End Configuration W2 Boxes Configuration for box 14, attach wage types to be reported for box 14 items to the appropriate tax form groups W24A -W24J To create the text that you want to display on W-2 that corresponds to the reported amounts, simply change the text of the tax form group (W24A-W24J) from "Box 14 amount 1" to the text that you want to print on the form i.e. Tuition Reimbursement - "Tuition Reimb".

16 Processing Sort Criteria Is specified from the main Tax Reporter screen under the Annual Tab > W-2 Wage and Tax Statement within the Employee Copy Selection. The default sort criteria for Employee W-2s are Tax Company and Personnel Number. However, the available sort options for W-2s are Personal Area, Personal Sub-area, Tax Authority, Worksite, Personnel number, Social Security Number, First Name, Last Name, ZIP code, Organizational unit, Employee group, Employee subgroup, Organizational key, Status (active/inactive), and Cost Center.

17 Processing Report RPCTRDU0 Used to view and delete records in the Tax Reporter cluster PCL4. Access the report from the Tax Reporter screen by selecting the menu path Utilities > Display Form Fields. Both simulation and production runs can be viewed/deleted. You must, at a minimum, specify the tax company and form number on the selection screen. This information for a particular Tax Reporter run can be obtained in Tax Reporter Log Manager. The report can be used effectively to periodically delete simulation runs, which can occupy extensive database space. You should be extremely cautious when using this program to delete productive Tax Reporter runs.

18 Tables T5UT1 and T5UT2 Processing These tables are used to manually adjust tax forms. T5UT1 is used when it is necessary to adjust reporting amounts calculated by Tax Reporter. This is simply a way to plug an amount on a tax form and does not permanently adjust the employee s payroll results. Therefore, beyond the table entries in table T5UT1, there is no permanent audit trail visible in the employee s payroll results. Table T5UT2 serves a similar purpose. However, T5UT2 is for adjusting summary reporting amounts rather than those at the employee level.

20 Know Your Tools Use the Reconciliation report to assist with reconciliation of payroll results from specific payroll results and amounts that have been posted to FI. This is only a tool and is best used monthly to assist with monthly tax reporting so when quarterly and YE are due there are less issues to process. This report will provide you a high-level cross check of the accuracy of payroll results and the reconciliation process should begin with an analysis of total amounts. Execute the report with the Totals View option selected.

21 Know Your Tools Use the Payroll Configuration Checker This tool will enable you to ensure you have correctly configured your system to run Tax Reporter. The checker will review areas where common errors arise including: TemSe file authorization Definition of number ranges Consistency among tax form fields Tax form group evaluation rules Function UCQRC (for cross-quarter retro) Use of lower case in Magnetic Media forms Wage type sign reversals Assignment of tax forms to tax form classes Feature changes Client-dependent HR forms Assignment of correction forms to original forms Assignment of tax authorities to tax form fields Conflicting record locations in Magnetic Media forms Use of PostScript printer drivers, based on user feature and user default Correction form field names

22 Tax Reporter Log Know Your Tools This is an administrative tool designed to provide an overview of every reporting run that Tax Reporter performs and you should check the log after every run. Records from both production and test (simulation) runs for every combination of Tax Company and quarter or year end form that is being filed.

24 YE Processing Issues Claims Processing Best Practice Clear claims during the payroll cycle they happen in Use reports to help you identify claims before exiting payroll and avoid them early on Review business processes that create claims and be proactive to improvements to reduce YE processing time Use SAP Guide for Claims Processing Clearing Claims From SAP Payroll Identify the Claims Determine Process to Clear

25 YE Processing Issues Adjustments Identify adjustment types Manual Payments Fringe Benefits Retrocalculations Identify correct method to process adjustments Infotype 0221 Adjustment Workbench Process Off-cycle Run

26 YE Processing Issues Adjustments continued Infotype 0221 Should not be used for Changes where deductions for things such as, taxes, garnishments, accruals, arrears, or others must be calculated. Changes where a check or direct deposit must be created. Changes of an organization nature such as an Employee Grouping. Use the SAP user guide for Adjustments to understand the use of 0221 and the Adjustment Workbench Subtypes.

28 Configuration Changes 2010 Arizona July 1 st 2010 Updates FMLA absence link to request Garnishment Publication Changes applied Dec 2009 for tables T5UGE and T5UGF 2011 Changes will be ready in Dec 2010

29 Forms / Reporting CSV file format SUI Summary Forms 2010 Updates Magnetic/Electronic File Layout changes Note Also MASS Note for EFW2 file layout Form 941 New version for 6.0 and above for 941-x 5.0 and below has been adjusted. Note allows for override of /704 with any custom wage type.

30 2010 Updates Forms / Reporting continued Note W-2 added CC code W-3 - New form for all releases to accommodate HIRE Act Puerto Rico W-2 and W-2c were updated 1099R Modified 1096 Only 6.0 modified to reflect minor text changes IRS still to release final form updates for 940 and 945 PDF Based Forms Errors on 6.0?

32 Set-up for 2011 Configuration HIRE Act impacts for 2011 New 2011 W-2 Form Draft has been released. System Set-up Update new state unemployment insurance Update other tax rate changes as necessary for the new year Establish a holiday calendar for the new year Generate and review pay periods for new year (if needed) Review Posting dates Review payment models Review Month-End Accruals dates

34 Approach Wing It Silo Planning Attend class Deal with issues as they arise Each team works independently Team Work and Plan together

36 Check List vs. Project Plan Check list will work best for Independent task items When a team is less than 3 people When working to put together a project plan Project plans work best for Managing larger teams Managing tasks that are dependent on other tasks Managing both tasks and time

37 Sample of Project Tasks

38 Common Mistakes Poor planning System preparation not considered Development and configuration needs not considered Being reactive instead of proactive

39 SAP Service Market Place Resources & 39

40 Questions? How to contact me: Kathy Morris Facebook: Twitter: Blog: 40

41 Disclaimer SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver, Duet, PartnerEdge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. 41