Best Practices for Payroll Year End

Transcription

1 Best Practices for Payroll Year End

2 Housekeeping The last 10 minutes have been reserved for Q&A but ask questions as needed A copy of today s slides and additional resources are available for download APA RCH Certificate & CPE credits will be available upon completion of our session survey [Insert Professional Associate Picture] Your Speaker: 2

3 Agenda 1. Year End Timeline 2. Year End Seminar 3. Commonly Amended Items 4. Health Care Coverage Memo 5. Company Level Validations 6. Employee Level Validations 7. Planning Ahead 8. Q&A 3

4 Year End Timeline

5 Year End Timeline November Verify your Payroll Schedules, Management Report Schedules, G/L Interface Schedules and Purge Options Verify data on Quarterly Tax Verification Letter Review new limits for deferred compensation, goal limits and special calculations Request a Preview Wage &Tax Register and Preview forms W 2 Consider the ADP Direct Mail Service for W2s and eliminate the need to mail all W2s out yourself. 5

6 Year End Timeline December Process Year End bonus and adjustment payrolls and verify their accuracy Submit new SUI and workers compensation rate changes on the ADP Support Center Verify that all manual checks, voided checks and special compensation moneys have been accurately submitted to ADP Review the final 2014 payroll for accuracy 6

7 Year End Timeline January Review W 2 forms and distribute by January 31 Verify 2015 schedules Verify any changes to your employee s tax exempt status for 2015 if so complete new W 4s for each employee. 7

8 Year End Seminar

9 9 Year-End Seminar 2014

10 Year-End Seminar Objectives Upon completing this seminar, you will be prepared to do the following: Identify the source documents needed for quarterend and year end closing. Identify key dates and deadlines. Identify documents that require a response to ADP. Describe how ADP processes adjustments. Reconcile quarter end and year end reports. Describes selected special compensation options. Summarize changes for this year and identify what s new for next year.

11 Year-End Seminar on The Bridge I am already registered for mine next month. I attend their seminars every year they are beneficial to getting thru the year end process. I go to these every year (year 10). I have always come out with something new. There are always new issues, concerns and requirements at year end. You'll walk away with checklists to help cross your T's and dot your I's. I do it every year to get a complimentary preview wage & tax register for all company codes which can be very helpful.

12 Commonly Amended Fields

13 Commonly Amended Fields Top 5 reasons for Out of Sequence (OOS) PR s and Amendments: 1. Health Care Coverage Memo 2. Special Compensation: Roth 401K Stock Options GTL ER HSA Tax exempt items 3. Manual or voided check adjustments 4. Company level corrections 5. Employee level corrections 13

14 Health Care Coverage Memo

15 Health Care Coverage Memo The total amounts paid by the employer and the employee for each employee's coverage must be reported as one amount on each employee's W 2 The amount is displayed in Box 12 of the W 2 with code DD Memo codes and accumulators for these amounts were created for all active company codes Instructions for each payroll product are available to clients on the Support Center. 15

16 Health Care Coverage Costs Health care coverage costs are displayed in Box 12 as code DD. 16

17 Health Care Coverage Costs Health care coverage costs are displayed on the Master Control as an accumulator 17

18 Report Health Care Coverage Costs Health care coverage costs are displayed in the quantitative section of the Wage and Tax Register as Health Plans Value. 18

19 Health Care Reform Tools ACA Compliance Timeline for Employers care reform/ 19

20 Company Level Validations

21 Company Level Validations Critical Tools in Company Level Validations Quarterly Tax Verification Letter Master Control Report

22 SAMPLE: Quarterly Tax Verification Letter

23 Quarterly Tax Verification Reminders Company Level Review Checklist: Are the reports being sent to the correct person? Review Company level information, Tax Features, and Company Features If you use ADP s Tax Filing Service, verify the list of responsibilities for deposits and filing status. Do you know your Pension Indicator?

24 Quarterly Tax Verification

25 Pension Indicator Company level Pension Indicator can be found on you Quarterly Tax Verification If you wish to change your company option, then go to click on payroll and click Contact ADP

26 SAMPLE: Master Control Report

27 Master Control Report Company Level Review Checklist: Quarterly totals should match the Wage and Tax Register quarter to date. Year to date amounts should match the Wage and Tax Register year to date and Form W Gross wages 2. Taxes 3. Special Compensation Correct negative conditions: 1. Negative FIT Tax 2. Negative FICA Tax 3. Negative 3PSP 4. Medicare Wages Less Than Social Security Wages

28 Employee Level Validations

29 Employee Level Validations Critical Tools in Employee Level Validations Master Control Report Wage and Tax Preview Forms W 2

30 SAMPLE: Master Control

31 SAMPLE: Wage & Tax Register

32 Preview Forms W-2 Preview Wage and Tax Register and Preview Forms W 2: Preview W2 s are available to anyone attending the Year End Seminar for free! Or they can be requested via the Support Center for a fee

33 Employee Level Validations Employee Level Review Checklist: Social Security Numbers (validate on preview W2) Administrators can also add a check stub message or portal message for Employee s to validate SSN on portal Mailing Address State Taxability Special Compensation and Reportable Items Tipped wages Negative tax or wages: Negative FIT Tax Negative FICA Tax Negative 3PSP Medicare Wages Less Than Social Security Wages

34 Data Import Tools ADP has all the tools to make your YE process easier through data import tools Special Compensation/Reportable items: VHC, GTL, ER HSA. Access the Support Center

35 Data Import Tools Search for Data Import Find Importing and Exporting Employee Data in the Resources tab.

36 Data Import Tools

37 Data Import Tools

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39 If you need further assistance access the online User Guides and FAQ s.

40 Planning Ahead

41 Planning Ahead

42 Year End Guide

43 Year End Guide

44 Stay Connected! Attend an ADP Pro Year End Seminar Take advantage of on demand recordings of this conference Connect with other clients on The Bridge sponsored by ADP NOTE: to get credits for attending the conference, please complete the survey.

45 45 Questions