Processing the Final Pay for a Deceased Employee

1. Processing the Final Pay for a Deceased Employee OSPS Users’ Forum April 18, 2007 Revised May 22, 2007 Has your agency had a deceased employee while you have been in P/R? Were you the one to process the final payment? Hopefully will not go crazy – handout = recommended practice from web, slides generally follow. Also, I did not change the dates in the OSPA examples – the concepts are still the same If your agency processes something differently, please raise it as an issueHas your agency had a deceased employee while you have been in P/R? Were you the one to process the final payment? Hopefully will not go crazy – handout = recommended practice from web, slides generally follow. Also, I did not change the dates in the OSPA examples – the concepts are still the same If your agency processes something differently, please raise it as an issue

2. 10/6/2011 2

3. 10/6/2011 3 Checklist Decide if payment from OSPA or R*STARS Determine payee(s) and obtain payment information Like processing separating employee, with exceptionsLike processing separating employee, with exceptions

4. 10/6/2011 4 Checklist Cont’d If from OSPA, Confirm data & make entries in OSPA Request manual check(s) Notify agency accounting for Form 1099-MISC process

5. 10/6/2011 5 Payment from OSPA or R*STARS? If payment in year of death, make payment through OSPA If payment is made in a subsequent year Make payment in R*STARS Not subject to social security and Medicare taxes

6. 10/6/2011 6 Determine Payee(s) ORS 652.190 Payment of wages to surviving spouse or dependent children. All wages earned by an employee, not exceeding $10,000, shall, upon the employee’s death, become due and payable to the employee’s surviving spouse, or if there is no surviving spouse, the dependent children, or their guardians or the conservators of their estates, in equal shares, to the same extent as if the wages had been earned by such surviving spouse or dependent children. As used in this section, “wages” means compensation of employees based on time worked or output of production and includes every form of remuneration payable for a given period to an individual for personal services First, we need to determine the payee for the employee’s final pay. For this payment, we are governed by ORS 652.190 ….next slideFirst, we need to determine the payee for the employee’s final pay. For this payment, we are governed by ORS 652.190 ….next slide

7. 10/6/2011 7 ORS 652.190

8. 10/6/2011 8 Payees Do Not Include: Domestic partners Legally divorced spouse Life insurance beneficiaries, if different from spouse or children Beneficiaries of will, if not spouse or children Grown, non-dependent, children

9. 10/6/2011 9 Dependent Children Defined ORS is “silent” Use IRS definitions Publication 501, Exemptions, Standard Deduction, & Filing Information (http://www.irs.gov) If questions, contact BOLI

10. 10/6/2011 10 Dependent Children Generally Child by birth or adoption, stepchild, foster child if lived in household entire year Under 19 or student under 24 or =$3,100 gross annual income Employee provided ?50% of support

11. 10/6/2011 11 Obtain Payment Information U.S. Code Title 26 Subtitle C Chapter 24 § 3406 requires a TIN or back-up withholding Legal name Mailing address (optional for OSPS)

12. 10/6/2011 12 Make Entries in OSPA Confirm the PPDB separation Confirm final time entered Enter final check dates on P010 Adjust leave on P435 and pay-off leave on P050 Same steps as separating employee Same steps as separating employee

13. 10/6/2011 13 OSPA Entries Cont’d Outdate deductions on the P070 Review P080 and P050 Deduct any overpayments Make RGD and DEC entries on the P050 These entries are slightly different than separating employee Will now look at entries in more detailThese entries are slightly different than separating employee Will now look at entries in more detail

14. 10/6/2011 14 1. Confirm Data from the PPDB on the P030 JOB STAT STOP: date of death PERSONNEL TRANS CD: Temporaries = 567 Other employees = 540 SEPARATION DT/REASON: Temporaries = 65 Other employees = 40

15. 10/6/2011 15 P030 Example P030 #########,#####,1,101905 JOB STATUS DATA 030 EARP, WYATT *** JOB STATUS INFO *** *** CONCURRENT JOB INFO *** JOB STAT START/STOP 070105/101905 REPORT DISTR CD 509 PERS AGY/POS/DFC/SC #####/9902021/0/0 RECOG SVC DT 012800 PT-FT CD/PCT F/1.0000 CITY CNTY CD 30/K APPOINTMENT TYP DT/CD 012800/P STANDARD HRS PER DAY 8.000 EMP REPR/CLS/OPT/STEP AAON/C6783 /A/A/06 MASS TRANSIT DIST X PERSONNEL TRANS CD 540 TIMESHEET CD 2 BENEFIT PKG CD AC LEAVE ACCRUAL SVC CD 3 EMPLOYEE ID OR0060789 PERS JOB CLASS CODE 2 CREW-UNIT 509 WAGE BASIS CD S PERSONNEL BASE RATE 4347.00 ---FUND SPLITS--- -FIXED MLY DIFFS-- ADJUSTED BASE 4520.88 LABOR COSTING PCT PAY PCT/ PCT/ PERSONNEL PAY RATE 4347.00 TYPE AMT AMT EQUIVALENT RATE 26.08 CD HOLIDAY PKG CD O 07########## 1.0000 LOA BEG DT/CD/END DBL P 0.040 SEPARATION DT/REASON 101905 40 O-T/FLSA CD Y/N LAST PA NUMBR/TRAN DT death 102405 For our example, we see the date of the employee’s death for the JOB STAT STOP date, the PERSONNEL TRANS CD of 540, and the SEPARATION REASON code of 40.For our example, we see the date of the employee’s death for the JOB STAT STOP date, the PERSONNEL TRANS CD of 540, and the SEPARATION REASON code of 40.

16. 10/6/2011 16 2. Confirm Final Time Entered Just a reminder…..Just a reminder…..

17. 10/6/2011 17 P001 Dates Timesheet start date – first of the month Timesheet end date – JOB STAT STOP from the P030 Pay period ending date – last day of the month If your agency uses paper timesheets, you will need to set the P1 dates. As with any other employee’s time, the timesheet start date will be the first of the applicable month and the pay period ending date will be the last day of that month. In this case, the timesheet end date will be the date of death or the last day worked.If your agency uses paper timesheets, you will need to set the P1 dates. As with any other employee’s time, the timesheet start date will be the first of the applicable month and the pay period ending date will be the last day of that month. In this case, the timesheet end date will be the date of death or the last day worked.

18. 10/6/2011 18 P001 Example P001 TC20 CUR DEFAULTS payroll time capture establish session default values agency ##### timesheet start date 100105 timesheet end date 101905 pay period ending date 103105 batch number 000 For our example, the pay period is 10/1 to 10/31. The timesheet end date is the date of death from the P30.For our example, the pay period is 10/1 to 10/31. The timesheet end date is the date of death from the P30.

19. 10/6/2011 19 P003 Example P003 #########,1,01 ##### TIME CAPTURE BTCH 000 NAME EARP, WYATT ssn ######### TC91 TRANS COMPLET total reg 110.00 lwop .00 other .00 f/t hours 170.00 wcd days 17 LN TYPE HOURS WORK CHARGE OVERRIDE ERR * SESSION DEFAULTS * 1 RG 110.00 AGENCY #####0 2 t/s 100105/101905 3 period end 103105 4 *job change data* 5 LABOR COST/PCT 6 920745902300 100.00 7 8 9 10 j/c 070105/101905 11 CREW 509 POS 9902021 12 APP P CL AAONC6783 06 13 WS BA7 BASIS S O/T YN 14 forecast 110.0 15 f/t hours 170.0 16 max hours 110.0 17 LV ACCR 3 P/T 100.00 18 ADJUST BASE 4520.88 PB 8.00 SL 50.20 VA 143.71 equiv rate 26.08 hol O ben AC cont N For our example, he employee’s work schedule was BA7 – 4 ten-hour days, Monday thru Thursday. Notice the t/s ending date of 10/19/05 from the P1 and the j/c ending date of 10/19/05 from the P30. Also notice, OSPA recalculated the forecast. The F/TE = 170. The forecast = 110 hours. Can anyone think of another place in the process where we will use 110 / 170?For our example, he employee’s work schedule was BA7 – 4 ten-hour days, Monday thru Thursday. Notice the t/s ending date of 10/19/05 from the P1 and the j/c ending date of 10/19/05 from the P30. Also notice, OSPA recalculated the forecast. The F/TE = 170. The forecast = 110 hours. Can anyone think of another place in the process where we will use 110 / 170?

20. 10/6/2011 20 3. P010 Final Check Dates FINAL CHECK ISSUED: date printed on check FINAL CHECK PERIOD ENDING: end of pay period for FINAL CHECK ISSUED

21. 10/6/2011 21 P010 Withholding Data / Locator Data P010 OR####### ##### WITHHOLDING DATA / LOCATOR DATA 010 EARP, WYATT WH02 ENTER UPDATES RDC/CREW/CST CTR 509 ----------MANDATORY WITHHOLDING---------- ? TAX DATA FOLLOW-UP FLAG: N BEG DATE STAT EXEM ADDL END DATE ? FINAL CHECK ISSUED: 102605 ? FED 000000 00 0000 000000 ? FINAL CHECK PERIOD ENDING: 103105 ? STATE 000000 00 0000 000000 ? RETIREMENT START DATE: 000000 EFF ----FEDERAL---- -----STATE----- EIC RTMT RTMT RTMT FICA SAIF UNEM DATE STAT EXEM ADDL STAT EXEM ADDL CD SYST STAT ACCT SUBJ SUBJ SUBJ ? 053196 S 00 0000 S 00 0000 N S D ###### Y Y Y ----WAIVERS---- CLASS DATE CLASS DATE CLASS DATE CLASS DATE CLASS DATE CLASS DATE ? ? ? ? ? ?

22. 10/6/2011 22 4. Adjust & Pay-off Leave Accrue SL & VA Transfer SL to the Clearing Account Pay-off VA & CT Adjust other leave balances to .00 Potentially….Potentially….

23. 10/6/2011 23 Accrue SL & VA

24. 10/6/2011 24 Pro-rating Leave Accrual If death occurs before the end of the month: For our example, 110/170For our example, 110/170

25. 10/6/2011 25 P435 Example – SL P435 ######### ##### SL EMPLOYEE LEAVE DATA EARP, WYATT J SVC LV USE ACCR ACCR MAX MAX MAX ACCRUAL REMAIN TIME LAST B CD TP WAIT MO RATE ACCR USE MO BAL ADV LOST ACTV 1 3 SL 00 00 8.00 9999.0 .0 00 FWD 50.20 .00 .00 083105 LV BAL DT CUR/CONT 083105/022900 CUR .00 5.18- .00 ADJ OR CLR ACCT HOURS REMAIN TIME LV EXP ENTRY TRFR FM/TO OTHR JOB LEAVE ADV LOST DATE DATE COMMENTS A A 5.18 5.18- .00 000000 102105 ACCRUE 1005 A T C 55.38- .00 .00 123105 102105 DEATH 1005 ? ? This is an example of the entries on the P435 for sick leave. We pro-rated the accrual rate for the last month by multiplying the employee’s accrual rate of 8 hours per month by the 110 hours the employee worked / the 170 hours for a full-time equivalent. We then transferred the entire balance to the clearing account, with expiration of 60 days. It will be available for PERS for their final calculations.This is an example of the entries on the P435 for sick leave. We pro-rated the accrual rate for the last month by multiplying the employee’s accrual rate of 8 hours per month by the 110 hours the employee worked / the 170 hours for a full-time equivalent. We then transferred the entire balance to the clearing account, with expiration of 60 days. It will be available for PERS for their final calculations.

26. 10/6/2011 26 P050 Example P050 #########,#####,1,103105 GROSS PAY ADJUSTMENTS ON FILE EARP, WYATT GP93 TRANSACTION COMPLETE PAY STRT STOP ADJ DAYS TRAN TYP DATE DATE TYP RATE UNITS AMOUNT WRKD DATE ERROR MSG ? IR 013100 999999 .00 .00 .00 031400 INS RETURN PRO COMMENT INS RETURN a vap A 26.08 151.47 COMMENT death 1005 ? A COMMENT Once you have accrued vacation leave, you will make an entry on the P50 for any vacation or comp time pay-offs. For our example we used pay type VAP to pay-off the employee’s vacation leave balance from the P435.Once you have accrued vacation leave, you will make an entry on the P50 for any vacation or comp time pay-offs. For our example we used pay type VAP to pay-off the employee’s vacation leave balance from the P435.

27. 10/6/2011 27 P435 Example – VA P435 ######### ##### VA EMPLOYEE LEAVE DATA EARP, WYATT LV09 ENTER UPDATES OR NEW KEY J SVC LV USE ACCR ACCR MAX MAX MAX ACCRUAL REMAIN TIME LAST B CD TP WAIT MO RATE ACCR USE MO BAL ADV LOST ACTV 1 3 VA 00 00 12.00 300.0 .0 00 FWD 145.71 .00 .00 083105 LV BAL DT CUR/CONT 083105/022900 CUR .00 7.76- .00 ADJ OR CLR ACCT HOURS REMAIN TIME LV EXP ENTRY TRFR FM/TO OTHR JOB LEAVE ADV LOST DATE DATE COMMENTS ? A 7.76 7.76- .00 000000 102105 ACCRUE OCT ? 151.47- .00 .00 000000 103105 GR PAY ADJ ? ? ? ? ? The P435 for vacation leave indicates the accrual transaction made on the P435 and the P50 pay-off entry. Again, we pro-rated the accrual rate, multiplying 12 hours by 110 / 170.The P435 for vacation leave indicates the accrual transaction made on the P435 and the P50 pay-off entry. Again, we pro-rated the accrual rate, multiplying 12 hours by 110 / 170.

28. 10/6/2011 28 Adjust Other Leave to Zero E492 Terminated Employee Having Leave Balance Report Includes CT, ML, PB, PR, SL, & VA Accrued leave = positive balance, negative transaction Other leaves = negative balance, positive transaction Remember to adjust all other leave balances to zero. E492 will list employee that has balances for CT, ML, PB, PR, SL, or VA Reminder of the signs If ee has ML, will it be a positive or negative transaction on the P435? What about PB?Remember to adjust all other leave balances to zero. E492 will list employee that has balances for CT, ML, PB, PR, SL, or VA Reminder of the signs If ee has ML, will it be a positive or negative transaction on the P435? What about PB?

29. 10/6/2011 29 5. Outdate P070 Deductions PEBB Benefits Garnishments Voluntary Deductions

30. 10/6/2011 30 PEBB Benefits Include Medical Dental Vision Basic & optional life Accidental death & dismemberment Long & short-term disability Long-term care Flexible spending accounts This screen provides a list of the PEBB benefits the employee may have from PEBB dot benefits. Someone on your agency’s staff will approve the separation in PEBB dot benefits. The application will then interface ending dates to OSPA.This screen provides a list of the PEBB benefits the employee may have from PEBB dot benefits. Someone on your agency’s staff will approve the separation in PEBB dot benefits. The application will then interface ending dates to OSPA.

31. 10/6/2011 31 OSPA / pebb ? benefits Interface Once your agency’s personnel office has entered the separation in PPDB, the separation will interface to PEBB dot benefits that night. A staff member in your agency will need to approve the separation in PEBB dot benefits. You can indicate whether PDB should send COBRA notice.Once your agency’s personnel office has entered the separation in PPDB, the separation will interface to PEBB dot benefits that night. A staff member in your agency will need to approve the separation in PEBB dot benefits. You can indicate whether PDB should send COBRA notice.

32. 10/6/2011 32 PEBB Benefit Eligibility Only alter P070 entries interfaced from PDB if directed by PEBB Deduction pays for insurance for the next month If hours worked + paid leave < 80 hrs, employee not eligible for benefits for the next month Just a reminder that if work less than 80 hrs, not eligible for benefits in next monthJust a reminder that if work less than 80 hrs, not eligible for benefits in next month

33. 10/6/2011 33 PEBB Benefit Eligibility Cont PEBB ? benefits calculates # of business days between 1st of month & separation date If =9 business days, benefits for spouse / dependents will end in current month If >9 business days, benefits will end next month Just a reminder…If only employee was covered, will cancel in current month, regardless of 80 hoursJust a reminder…If only employee was covered, will cancel in current month, regardless of 80 hours

34. 10/6/2011 34 Voluntary Deductions Parking Direct Deposit(s) Charitable Fund Drive Food Bank Deferred Comp Union Dues/Fair Share Savings Bonds Union insurances This screen provides a reminder of the kinds of deductions the employee may have on the P70.This screen provides a reminder of the kinds of deductions the employee may have on the P70.

35. 10/6/2011 35 Voluntary Deductions Cont DAS Parking is for the current month Pro-rated if death during month Private parking for next month Union dues / fair share are for the current month Just some reminders….Just some reminders….

36. 10/6/2011 36 Voluntary Deductions Cont Delete OSGP for final month Deduct direct deposits 3 months prior Outdate other deductions for final pay What do others do with OSGP – delete or allow to process? What do others do with OSGP – delete or allow to process?

37. 10/6/2011 37 P070 Example – Not in Final Pay P070 #########,#####,103105 DEDUCTIONS AND DEDUCTION ADJUSTMENTS EARP, WYATT DA98 PRESS ENTER FOR NEXT PAGE A DED PLAN OPE DATE -EMPLOYEE---SHARE- JOB EMPLR BOARD VENDOR D CODE CODE CD BEGIN END PCT PCT FIXED SHR SHARE SHARE SHARE J DESC DESC GRS NET AMOUNT PCT ? DKTA 111 N 073105 103105 .00 .00 .00 .00 AFSCME L3743 DUES COMM TRANS DATE 102405 ACH ACCT ACCT CD ? ADNN 050 N 083104 999999 .00 .00 .00 .00 EMP/DEP AD&D POSTAX/50K COMM TRANS DATE 081104 ACH ACCT ACCT CD d DCNN 100 N 022805 999999 100.00 .00 .00 .00 DEF/COMP REGULAR COMM TRANS DATE 020705 ACH ACCT ACCT CD ? LTNN 001 N 083104 999999 .00 .00 .00 .00 DEP LIFE 5K/DEPNDT COMM TRANS DATE 081104 ACH ACCT ACCT CD We have three P70 examples, just as a reminder. For deductions that will not be included in the final payment, delete them using the current pay period end date on the P70.We have three P70 examples, just as a reminder. For deductions that will not be included in the final payment, delete them using the current pay period end date on the P70.

38. 10/6/2011 38 P070 Example – In Final Pay P070 #########,#####,113005 DEDUCTIONS AND DEDUCTION ADJUSTMENTS EARP, WYATT DA98 PRESS ENTER FOR NEXT PAGE A DED PLAN OPE DATE -EMPLOYEE---SHARE- JOB EMPLR BOARD VENDOR D CODE CODE CD BEGIN END PCT PCT FIXED SHR SHARE SHARE SHARE J DESC DESC GRS NET AMOUNT PCT ? ADNN 050 N 083104 999999 .00 .00 .00 .00 EMP/DEP AD&D POSTAX/50K COMM TRANS DATE 081104 ACH ACCT ACCT CD ? DCNN 100 N 022805 999999 100.00 .00 .00 .00 DEF/COMP REGULAR COMM TRANS DATE 020705 ACH ACCT ACCT CD d DKTA 111 N 073105 999999 .00 .00 .00 .00 AFSCME L3743 DUES COMM TRANS DATE 062705 ACH ACCT ACCT CD ? LTNN 001 N 083104 999999 .00 .00 .00 .00 DEP LIFE 5K/DEPNDT COMM TRANS DATE 081104 ACH ACCT ACCT CD For deductions that will be included in the final pay, delete them on the P70 using the ending date for the next pay period, after the final payment.For deductions that will be included in the final pay, delete them on the P70 using the ending date for the next pay period, after the final payment.

39. 10/6/2011 39 P070 Example – Direct Deposit P070 #########,#####,073105 DEDUCTIONS AND DEDUCTION ADJUSTMENTS EARP, WYATT DA98 PRESS ENTER FOR NEXT PAGE A DED PLAN OPE DATE -EMPLOYEE---SHARE- JOB EMPLR BOARD VENDOR D CODE CODE CD BEGIN END PCT PCT FIXED SHR SHARE SHARE SHARE J DESC DESC GRS NET AMOUNT PCT d XDNN 130 N 033103 999999 2.00 .00 .00 .00 DIRECT DEP FIXED 3 COMM XXXXXXXX TRANS DATE 032503 ACH ACCT ################## ACCT CD C d XDNN 222 N 022900 999999 250.00 .00 .00 .00 DIRECT DEP FIXED 6 COMM XXXXXXXXXXX TRANS DATE 022500 ACH ACCT ############### ACCT CD S d XDNN 333 N 013102 999999 125.00 .00 .00 .00 DIRECT DEP FIXED 7 COMM XXXX TRANS DATE 011502 ACH ACCT ################## ACCT CD S d XDNN 444 N 113003 999999 5.00 .00 .00 .00 DIRECT DEP FIXED 8 COMM XXXXXXX TRANS DATE 110603 ACH ACCT ################## ACCT CD C For all direct deposits, delete them from the P70 with an ending date of two months prior.For all direct deposits, delete them from the P70 with an ending date of two months prior.

40. 10/6/2011 40 6. Review P050 and P080 If employee was purchasing savings bonds: Delete P070 and P080 If prior to run 1, delete for current month If after run 1, delete for next month

41. 10/6/2011 41 Review P050 Cont If employee opted out of medical insurance, delete IR for final pay If employee had domestic partner insurance & worked =80 hours, delete DPT / DPN for next pay period

42. 10/6/2011 42 7. Identify Outstanding Overpayments OAM 45.50.00 PO & PR If employee has outstanding overpayment, deduct from final paycheck If final pay does not cover the amount owed, work with Accounting Staff to set-up A/R The Oregon Accounting Manual policy and procedure 45.50.00 requires that you deduct any outstanding over payments from the employee’s final pay. If you have not already done so, set-up A/R for amount not covered by final pay. The Oregon Accounting Manual policy and procedure 45.50.00 requires that you deduct any outstanding over payments from the employee’s final pay. If you have not already done so, set-up A/R for amount not covered by final pay.

43. 10/6/2011 43 Overpayment Cont Use OAM Chapter 35 to manage and collect A/R If not successful in collecting, ORS 292.170 – Procedure when employees leaves employment… provides the authority to refer the account to DOR for collection

44. 10/6/2011 44 8. P050 Tax Entries Final pay in year of death: Withhold social & Medicare taxes Do not withhold FIT & SIT Included in employee’s final W-2 Social security & Medicare wages Social security & Medicare taxes withheld The final payment is not subject to state and federal income tax withholding for the employee. It is only subject to FICA and Medicare. To change the calculations in OSPA, make an entry with pay type RGD and the gross pay amount from the P370 on the P50 to reduce the employee’s income subject to income tax. Make another entry with pay type DEC to make the final payment subject to FICA and Medicare.The final payment is not subject to state and federal income tax withholding for the employee. It is only subject to FICA and Medicare. To change the calculations in OSPA, make an entry with pay type RGD and the gross pay amount from the P370 on the P50 to reduce the employee’s income subject to income tax. Make another entry with pay type DEC to make the final payment subject to FICA and Medicare.

45. 10/6/2011 45 P050 Tax Entries Cont Two entries: PAY TYP: RGD, gross pay, negative number PAY TYP: DEC, gross pay, positive number

46. 10/6/2011 46 P370 – Before P050 Entry P370 #########,#####,103105,102605,O CALCULATION OF CURRENT PAYOFF 370 EARP, WYATT INCOME TYPE RATE UNITS AMOUNT TAX /RET AMOUNT DEDUCTIONS AMOUNT TOTAL-R T 4520.88 110.00 2925.28 FIT 805.80 ADNN150 EMP/ 6.30 AVAC PAY T 26.08 151.47 3950.34 SIT 510.00 DKDG690 AFCM 38.75 FICA 426.15 RGNNCCC REGE MEDR 99.66 RGNN901 REGE WCD 1.87 VSNNCCC VSP ERETS 597.49 WDNNCCC WILL SRETS 412.54 WDNN901 WILL GROSS 6875.62 TX/RT 1843.48 DED 45.05 NET/ACH 4987.09/ .00 CALC YTD? N For our example, prior to the entry on the P50, the P370 included federal and state income tax withholding. The TX/RT = the amount the employee will pay Use the GROSS amount for the P050 entryFor our example, prior to the entry on the P50, the P370 included federal and state income tax withholding. The TX/RT = the amount the employee will pay Use the GROSS amount for the P050 entry

47. 10/6/2011 47 P050 Example P050 #########,#####,1,103105 GROSS PAY ADJUSTMENTS ON FILE EARP, WYATT PAY STRT STOP ADJ DAYS TRAN TYP DATE DATE TYP RATE UNITS AMOUNT WRKD DATE ERROR MSG ? VAP 103105 103105 A 26.08 151.47 3950.34 102105 VAC PAYOFF COMMENT DEATH 1005 ? IR 013100 999999 .00 .00 .00 031400 INS RETURN PRO COMMENT INS RETURN a rgd A 6875.62- COMMENT death 1005 a dec A 6875.62 COMMENT death 1005 Here are the P50 entries for our example. Notice that the RGD entry is negative and that the DEC entry is positive.Here are the P50 entries for our example. Notice that the RGD entry is negative and that the DEC entry is positive.

48. 10/6/2011 48 P370 – After P050 Entry P370 #########,#####,103105,102605,O CALCULATION OF CURRENT PAYOFF 370 EARP, WYATT INCOME TYPE RATE UNITS AMOUNT TAX /RET AMOUNT DEDUCTIONS AMOUNT TOTAL-R T 4520.88 110.00 2925.28 FICA 426.15 ADNN150 EMP/ 6.30 ADECEASE R 6875.62 MEDR 99.66 DKDG690 AFCM 38.75 A(RG)DEC T 6875.62- WCD 1.87 RGNNCCC REGE AVAC PAY T 26.08 151.47 3950.34 ERETS 597.49 RGNN901 REGE SRETS 412.54 VSNNCCC VSP WDNNCCC WILL WDNN901 WILL GROSS 6875.62 TX/RT 527.68 DED 45.05 NET/ACH 6302.89 / .00 CALC YTD? N After our entry on the P50, the P370 displays the RGD and DEC entries and does not include income tax withholding for this final payment.After our entry on the P50, the P370 displays the RGD and DEC entries and does not include income tax withholding for this final payment.

49. 10/6/2011 49 Tax for Domestic Partner Insurance Imputed value for premium for medical insurance coverage for domestic partner and/or partner’s eligible children is taxable Because final premium is paid after date of death, imputed value is Form 1099-MISC reportable

50. 10/6/2011 50 Gross Wages when Domestic Partner Insurance

51. 10/6/2011 51 Request Manual Check(s) Make screen print of final P370 List legal name of each payee with TIN, amount, and optional address Signed by staff member on current Signature Authorization Form To OSPS by noon

52. 10/6/2011 52 Back-up Withholding Required if no TIN Consult OSPS Help Desk or IRS Pub 15 (Circular E) for current rate Multiply rate * gross wages Request manual check for DAS for the amount of withholding Payee should receive 1099-MISC If you do not have a tax id number for a payee, you will need to do back-up withholding. Contact the OSPS Help Desk for the current rate. When you request the manual check or checks, request an additional check made out to the Department of Administrative Services for the amount of back-up withholding. Also, you will want to include it on the 1099-MISC.If you do not have a tax id number for a payee, you will need to do back-up withholding. Contact the OSPS Help Desk for the current rate. When you request the manual check or checks, request an additional check made out to the Department of Administrative Services for the amount of back-up withholding. Also, you will want to include it on the 1099-MISC.

53. 10/6/2011 53 Back-up Withholding Cont If >$10,000: Report $10,000 of gross wages for spouse or children Report remainder of gross wages to estate

54. 10/6/2011 54 1099-MISC Reporting Your agency will need to provide a MISC 1099 through R*STARS for payees who received $600 or more or had back-up withholding.Your agency will need to provide a MISC 1099 through R*STARS for payees who received $600 or more or had back-up withholding.

55. 10/6/2011 55 PERS EDX/jClarety File sent after final run 2 Does not include reason for separation Includes: Separation date Last hours worked / paid Contributions Sick leave in Clearing Account

56. 10/6/2011 56 Resources OSPA reports IRS publications State statute, policies, and procedures

57. 10/6/2011 57 OSPA Reports ANNLDEC Deceased Employee Report E492 Terminated Employee Having Leave Balance XREF17 Regular Contributions for Terminated Employees

58. 10/6/2011 58 IRS Publications 26 U.S.C. § 3406 Publication 15 (Circular E), Employer’s Tax Guide IRS Publication 501, Exemptions, Standard Deduction, and Filing Information

59. 10/6/2011 59 IRS Publications Cont’d General Instructions for Forms 1099, 1098, 5498, and W-2G Instructions for Form 1099-MISC Publication 559, Survivors, Executors, and Administrators

60. 10/6/2011 60 To Apply for TIN http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html Social Security Number (SSN) for an individual Employer Identification Number (EIN) for the estate

61. 10/6/2011 61 State Statutes ORS 652.190, Payment of wages to surviving spouse or dependent children ORS 292.170, Procedure when employee leaves employment after overpayment . .

62. 10/6/2011 62 ORS Cont ORS 293.231 Collection of liquidated and delinquent accounts by private collection agency or Department of Revenue

63. 10/6/2011 63 State Controller’s Resources OAM Chapter 35, A/R Management OAM 45.50.00 PO & PR, Collection of Overpayment OAM 50.50.00 PO & PR, 1099 MISC Reporting All of the SCD resources are on our website All of the SCD resources are on our website

64. 10/6/2011 64 SCD Resources Cont OSPA Reference Manual, Recommended Practices, Deceased Employees SFMS Desk Manual PAYM.2, Issuing Survivor / Estate Payments on Behalf of Deceased Employees

65. 10/6/2011 65 Questions?

66. 10/6/2011 66 The End……