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2004 PayChoice Users Conference

2004 PayChoice Users Conference. 2004 Preparing for Year End Karen Erne. 2004 Preparing for Year-End. Overview QTD/YTD Variances Year End Preparation Guide Year End Journal SSA Information and Links. 2004 Preparing for Year-End. QTD/YTD Variances

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2004 PayChoice Users Conference

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  1. 2004 PayChoice Users Conference 2004 Preparing for Year End Karen Erne

  2. 2004 Preparing for Year-End • Overview • QTD/YTD Variances • Year End Preparation Guide • Year End Journal • SSA Information and Links

  3. 2004 Preparing for Year-End • QTD/YTD Variances • The Variance Report is the MOST useful tool in diagnosing tax “out of balance” situations. • It automatically prints ONLY if variances are detected with an installation payroll and with the quarterlies.

  4. 2004 Preparing for Year-End • You can print a Variance Report at any time during the quarter when in Work With A Company by going to Reports. • It will NOT print with a regular live payroll if a variance exists.

  5. 2004 Preparing for Year-End

  6. 2004 Preparing for Year-End • What Causes Variances? • Improper FICA/Medicare amounts are entered on a manual or pre-calculated adjustment check. • Starting YTD/QTD taxes are out of balance from the installation payroll. • Improper setup or sequencing of a pre-tax earnings or deduction code. This may cause a wage and/or tax variance.

  7. 2004 Preparing for Year-End • Mid-Quarter Start Maintenance was not performed. • An additional End Of Quarter payroll is processed without processing the same transactions in the current quarter as a Prior Quarter Adjustments.

  8. 2004 Preparing for Year-End • Diagnosing and correcting QTD and YTD variances

  9. 2004 Preparing for Year-End • QTD/YTD Variance are the same amount: • If you have a QTD variance and a YTD variance that are the SAME AMOUNT, your error is in the current quarter. Perform a manual adjustment in the current quarter to correct.

  10. 2004 Preparing for Year-End • YTD Variance only: • If you have a YTD variance only, your error is in a PREVIOUS quarter. Perform a Prior Quarter Adjustment (PQA) in the current quarter. • If you need to correct the prior quarter, in order to have the prior quarter tax returns correct, you will need to perform the same adjustment in the FROZEN Quarter as a manual.

  11. 2004 Preparing for Year-End • QTD Variance only: • If you have a QTD variance ONLY, your error is in the current quarter AND in a previous quarter. • When you correct the QTD variance it will cause a YTD variance.

  12. 2004 Preparing for Year-End • QTD and YTD Variance are different amounts: • If you have a QTD variance and a YTD variance that are different amounts, your error is in the current quarter AND in a previous quarter.

  13. 2004 Preparing for Year-End

  14. 2004 Preparing for Year-End • The best way to go about correcting variances is to run adjustment payrolls in steps. • First run an adjustment payroll in the current quarter to correct the QTD variance. • Run a second adjustment payroll to correct the YTD variances in the current quarter as a Prior Quarter Adjustment. • If you need to correct the frozen quarter you will need to do the same adjustment in the FROZEN Quarter as a manual adjustment.

  15. 2004 Preparing for Year-End • Why do I have to do a Frozen Quarter Adjustment? • When you have crossed into a new quarter, or have processed payrolls in the new quarter, adjustments to the previous quarter will need to be applied to the FROZEN previous quarter master-file. • You need to do this so that the previous quarter’s tax returns are correct.

  16. 2004 Preparing for Year-End • When the last payroll of the quarter is processed, PayChoice takes that file and saves it in a different location. • In PayChoice terms, it becomes FROZEN.

  17. 2004 Preparing for Year-End • When you access the FROZEN quarter to perform an Additional End of Quarter Payroll (Sub Run) it ONLY corrects the FROZEN master file. This ensures the quarterly returns are correct. • You also need to do the same transactions in the CURRENT quarter as a Prior Quarter Adjustment (PQA) to ensure the employee’s YTD is correct.

  18. 2004 Preparing for Year-End • POINTS TO REMEMBER • PQA’S do NOT print on the From-to-Check History Report • Define ER taxes on the Check Journal Layout to aid in research • Use the YTD report to aid in research

  19. 2004 Preparing for Year-End • ALWAYS enter a UNIQUE check number for EACH adjustment Payroll. IE: Check # 1 for the Frozen Quarter Adjustment and Check # 2 for the adjustment in the Current Quarter. • ALWAYS print another Variance Report after each adjustment payroll.

  20. 2004 Preparing for Year-End • LAST BUT NEVER FORGET…………… • When you run a payroll in the Frozen Quarter, you are ONLY affecting the FROZEN QUARTER MASTER FILE. You ALSO need to correct the employee’s YTD’s in the CURRENT QUARTER. You do this by processing another adjustment payroll in the current quarter as PRIOR QUARTER ADJUSTMENTS (PQA). If this is not done, the employee’s W-2 will be incorrect.

  21. 2004 Preparing for Year-End • Year-End Preparation in PayChoice

  22. 2004 Preparing for Year-End Year End Customer Support Weekdays (all year) Monday thru Wednesday 9:00 a.m. to 8:00 p.m. Eastern Time Thursday thru Friday 9:00 a.m. to 7:00 p.m. Eastern Time

  23. 2004 Preparing for Year-End Weekend Emergency calls YEAR END ONLY Sunday, January 2 thru Sunday January 30, 9:00 a.m. – 3:00 p.m. CALL 1-856-231-4667 Ext. 285 DO NOT SEND FAXES OR EMAILS

  24. 2004 Preparing for Year-End • Weekend Emergencies are: • You have completed your troubleshooting efforts and cannot process quarterlies or year end after reviewing the Customer Support Website. • An error prevents you from completing quarterlies or year end and cannot find the resolution on the Customer Support Website.

  25. 2004 Preparing for Year-End • Call 1-856-231-4667 Ext. 285, a support rep will return your call shortly. • All other calls will be addressed on the next business day. • The Customer Support Website is up 24/7 at WWW.PAYHOICE.COM

  26. 2004 Preparing for Year-End HOLIDAY CLOSINGS PAI will be closed Friday, December 23 and Friday December 31 Support coverage, including emergencies, will not be available

  27. 2004 Preparing for Year-End Key Year End Dates

  28. 2004 Preparing for Year-End Key Year End Dates

  29. 2004 Preparing for Year-End • What has changed for 2004 • W-2 sizing has changed to conform with substitute forms. • Code W has been added to Box 12 for Health Savings Accounts (HSA).

  30. 2004 Preparing for Year-End • Year End Forms • The SSA accepts black and white forms for W-2’s and W-3’s. PayChoice has been programmed for the approved SSA forms. • Red forms are still required for 1099’s and 1096’s.

  31. 2004 Preparing for Year-End • Print Management Partners is part of the PayChoice Alliance Program and can supply all year-end forms. • Pricing is the same as last year • Contact Krista Hurley at 1-800-545-0792

  32. 2004 Preparing for Year-End • The Alliance Tab on the Customer Support Website has Print Management Partner Information and pricing. • W-2 / 1099 Counts • Review the website often for updated Year End Information.

  33. 2004 Preparing for Year-End • Year End Websites • www.paychoice.com • www.socialsecurity.gov/employer • www.americanpayroll.org • www.irs.gov • www.dol.gov • www.business.gov • www.statelocalgov.net

  34. 2004 Preparing for Year-End • PayChoice and Year End • Know your stuff!! – Year End / Quarter End Manual is a great start • Chapter 3 – Quarterly Processing • Chapter 8 – Deduction / Earnings Accumulators / W-2 Print

  35. 2004 Preparing for Year-End • Schedule a Meeting • Discuss preparation and implementation procedures • Prepare a task list with target dates

  36. 2004 Preparing for Year-End • ADHERE TO YOUR TARGET DATES

  37. 2004 Preparing for Year-End • 2005 Calendars • Create 2005 Scheduling Calendars • Verify remaining 2004 dates • Print 2 copies • One for the Service Bureau • One for the client to verify, sign and return.

  38. 2004 Preparing for Year-End • Special Earnings/Deduction Accumulators • Become familiar with Chapter 8 of the YE/QE Manual • Bonus and Adjustment Payrolls • Most YE adjustments may effect SS/Medicare taxes.

  39. 2004 Preparing for Year-End Common Earnings Codes

  40. 2004 Preparing for Year-End Common Deduction Codes

  41. 2004 Preparing for Year-End • Processor Options – Service Bureau Level Information • Print W-2’s: L = Laser Returns • Produce 1099 if < $600.00 Y or N • Print W-2 Prelist at EOY = Y • Print W-2 Tape List at EOY = Y • Production Control View Sel @ EOD = Y

  42. 2004 Preparing for Year-End • Verify Information • Client’s legal name and address • Tax ID Reports • Missing SSN – Master File Analysis Report • W-2’s vs. 1099 Employees • Check Stub Messaging.

  43. 2004 Preparing for Year-End • Pension Indicator • Automatic with some Base Accum. – Chapter 1 and 8 of YE/QE Manual • Terminated employees • Restore option available • Vacation – Sick Balances • W-4, W-5 and UC rate changes.

  44. 2004 Preparing for Year-End • Billing • Setup year-end billing codes • Charge for YE Adjustment Payrolls • 2005 price changes • W-2 Processing

  45. 2004 Preparing for Year-End • Running Quarter and Year End • Print 4th Quarter Returns • CORRECT VARIANCES • Review the W-2 Pre-list

  46. 2004 Preparing for Year-End • Termed companies must be active to process year-end • Companies that closed – process a zero transaction payroll for the quarter • Remember to add any Prior Quarter FUTA/SUTA info for new clients during the year. • Master File Analysis Report

  47. 2004 Preparing for Year-End • W-2 / 1099 Mag Media Switches • Additional information will be forthcoming in January • Register with SSA in December • Change your password once every 365 days with SSA

  48. 2004 Preparing for Year-End • Update Mag Media Switches prior to last payroll of the year • Company Options – 2nd screen • Company Tax ID & Info Screen • 3rd Party Tax Services

  49. 2004 Preparing for Year-End • Supplies • Print Mgmt Partners 800-545-0792 • W-2’s / W-3’s, 1099-Misc and 1099R’s • W-2 envelopes - Label • Diskettes / CD ROMS • Postage • Space to pack W-2’s and extra staff if necessary

  50. 2004 Preparing for Year-End • Production Control • Track Quarter and Year End activity • Clients not cut • Clients not processed • Toggle between QE and YE • Enter send date

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