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Financial Services Workshop Payroll Breakout

Financial Services Workshop Payroll Breakout. Introductions. Primary Areas of Responsibility. What’s New?. NC House Bill 998 Effective 1-1-2014 every ECU employee required to complete a NEW NC-4 State Employee’s Withholding Allowance Certificate Reduces NC income tax to flat 5.8% rate

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Financial Services Workshop Payroll Breakout

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  1. Financial Services WorkshopPayroll Breakout

  2. Introductions

  3. Primary Areas of Responsibility

  4. What’s New? • NC House Bill 998 • Effective 1-1-2014 every ECU employee required to complete a NEW NC-4 State Employee’s Withholding Allowance Certificate • Reduces NC income tax to flat 5.8% rate • Increases standard deduction • Eliminates personal exemptions • Eliminates many other deductions and tax credits • Self Service Banner: • Employees can now view, submit and update • W-4 - Federal Employee’s Withholding Allowance Certificate • NC-4 - State Employee’s Withholding Allowance Certificate • NC House Bill 4: • Requires ECU to fund a reserve account with the NC Division of Employment Security to fund future unemployment claims • 1% of wages assessment Q3,Q4-2013 and Q1,Q2-2014

  5. What’s new? • W-2 Reissue Request • Available under Forms on ECU Payroll web site • Paper checks are only available for pickup on the payroll date from 8:00 to 1:00 p.m. • Mailed on pay date afternoon mail • New Template: Request to Reduce Pay • Updated Payroll Web page with instruction documents, FAQ

  6. What’s new? 120 Reade Street Building 133 Financial Services Greenville, NC 27858 • Southwest corner of Reade and 2nd Street • No change to: • Mail Stop: 226 • Phone: 252-328-6955 • Fax: 252-328-0910

  7. What’s new? • payrolltax@ecu.edu • Questions on W-4, NC-4, W-2 • Questions regarding payroll tax withholding Federal, State, Social Security • internationaltax@ecu.edu • Questions regarding temporary visa holders, green card holders, 1042s

  8. What Payroll does • Review and input W-4, NC-4 and Direct deposit forms • Upload time and wages submitted through Web-time, MTE and Kronos into Banner • Upload deductions through automated interfaces • Manually key adjustments submitted from timekeepers/departments • Calculate and key exceptions for terminations, LOA, returns from LOA, job changes and other non-standard pay situations

  9. What Payroll does • Calculate and key payroll reductions for overpayments • Work exception reports generated throughout payroll process • FOAP • Wages recorded in Kronos, Webtime, MTE not loading to Banner • Variances this semi to last • Excess wages verification • Tax compliance review

  10. What Payroll does • Reconcile tax liability accounts • Ensure timely and accurate submission of Federal and State taxes and reports • Issue annual W2-Employee Wage and Tax Statements and 1042-Foreign Person’s U.S. Source Income • Manage failed Direct Deposits • Collection efforts for employees overpaid through payroll

  11. What Payroll doesn’t do • Change names or SS#s in Banner-HR • Input or change deductions-other than taxes-HR • Manage liens, garnishments-HR • Manage or view leave records-Dept • Determine best way for processing payment for unusual pay circumstance-IPS • Validate dates on EPAFs- IPS/Departments • Act as approver on EPAFs – FYI only

  12. What Payroll doesn’t do • Unemployment claims- Employee Relations • Reconcile or submit payment to other vendors (e.g. Insurance, wage garnishments, retirement programs)-IPS • Reconcile payroll expense to the ledger • Review or reconcile Payroll History reports • Review payroll or labor suspense accounts • Review POSMAN reports

  13. What Payroll doesn’t do…Employment Verfication To Obtain Proof of Employment Only the Verifier should follow these 3 steps: 1) Please login to www.verifyjobhistory.com to register. 2) You will need the following information: • a. ECU Employer Code: 1252 • b. The person’s Employee ID & Last Name OR the person’s First Name, Middle Initial, Last Name & Date of Birth. 3) Pay for the transaction by credit card. To Obtain Proof of Employment and Income: 1) In addition to the steps 1, 2 & 3 above, the employee needs to provide an authorization code to access their information. (Employees generate an authorization code by visiting www.verifyjobhistory.com or calling 1-800-281-5260). Special Instructions for Social Service Agencies 1) Please login to www.verifyjobhistory.com to register. 2) Once we qualify your agency, you may begin to receive results online or by fax. For additional questions or more information regarding the benefits of membership, please call: JobTrax Client Service Center Monday – Friday; 8:00 am – 5:00 pm (EST) 1-800-281-5260 or 1-440-247-1600

  14. Web and Mass Time Entry Note: This is APPROVERS deadline…NOT students!

  15. Payroll Exception/Adjustments • Cut-off March 18th, but realize on March 21st there is a change…now what? • Contact Payroll office • Request Adjustment form • Complete with signatures • Return to Payroll BY DUE DATE for manual keying • Follow up to ensure hours/pay was included in employee’s pay • Do NOT re-submit hours/pay in subsequent payroll through MTE

  16. Payroll Exception/Adjustments • Payroll typically has 5-6 days after WTE/MTE closes to finalize payroll. • Holidays occasionally reduce timeline to just 3 days • Payroll must be finalized 3 working days prior to Pay Date • Some changes can be made between WebTime, MTE deadlines and Payroll finalization dates. • Late notice terminations/separations • Late notice LOA • Data entry correction on MTE

  17. Manual checks • Cannot be issued if there is no active job for the employee • Should only be requested if waiting for next semi-monthly pay causes the employee a financial hardship • Requires payroll to run the entire payroll process-isn’t as simple as “writing a check” • Payroll may deny request for manual check. • Cannot be issued as a direct deposit • Will be available for pick up from 10 a.m. to 1:00 p.m. exactly one week following the regular semi-monthly pay day

  18. Manual checks • Contact payroll office • Request Manual check form • Complete with signatures • Return to Payroll by DUE DATE • Do NOT include hours in next semi’s MTE.

  19. Self Service Banner • Employees can view history, current status and # of allowances claimed and can now MAKE CHANGES TO: • NC-4 effective December 9, 2013 • Still have approximately 2,000 employees who have not submitted new form or verified changes • W-4 effective January 9, 2014 • If claiming EXEMPT must complete paper form • Using SSB at new employee orientation

  20. Paper Form-W-4

  21. Paper Form NC-4 If an employee is claiming EXEMPT, Line 1should be left blank. Otherwise, Line 1MUST be completed.

  22. Claiming EXEMPT • Must meet BOTH conditions • 1) Last year had a right to refund ALL federal income tax withheld because I had NO tax liability… • AND 2) This year I expect a refund of ALL federal income tax withheld because I expect to have NO tax liability. • Must be renewed annually and resubmitted by 15 February

  23. Paper Forms • Default is S0-Highest tax rate • Encourage employees to utilize the worksheet and keep copy for their records • Don’t provide advice on number of allowances or status • Must use 2014 forms • Payroll will reject paper forms that are not completed correctly or have conflicting information • Status remains at Single Zero (or last W-4,NC-4 form on file)until corrected form is submitted to Payroll office

  24. When to file a new W-4 • REQUIRED: • Name change (after receiving SS card) • Divorce, spouse takes a job, dependent moves out of house • Realize you are no longer EXEMPT. • OPTIONAL: • Birth of child or adoption, spouse quits their job • Realize you are EXEMPT.

  25. Federal Tax Table-2014 • Standard exemption allowance for 2014 is $164.60 times number of allowances • Banner uses this annualized tax table

  26. Supplemental Pay-2014 • IRS supplemental tax rate is 25% regardless of filing status or allowances selected on W-4 • NC-4 supplemental tax rate is 5.8% • Supplemental Wages • Dual Employment • Bonus and Incentives • Settlement Agreements • Awards • Vacation Payout • Severance • Longevity • Supplemental Taxable Benefits

  27. NC State Tax Table-2014

  28. Social Security Tax-2014 • FIC-FICA OASDI • Old-Age, Survivors, and Disability Insurance • Employee: 6.2% Employer: 6.2% • Maximum taxable earnings for 2014 is $117,000. • FIM-FICA Medicare • Medicare hospital insurance part of Social Security • Employee:1.45% • Employer: 1.45%

  29. Social Security Tax-2014 • FIH-Additional Medicare Tax • New in 2013-continued in 2014 • Employee: .09% of wages in excess of $200,000/yr. • Employer: none

  30. Fed and State Pre-Tax Deductions • All deductions that say “Pre-Tax” • 401K, 403b (not Roth) and 457 contributions • Flex dependent care spending, Flex medical care spending • Health insurance premiums • TSERS state retirement, Fidelity, Lincoln, TIAA and VALIC and “undecided” Employee contributions

  31. Social Security :Pre-Tax Deductions • All deductions that say “Pre-Tax” • Flex dependent care spending, Flex medical care spending • Health insurance premiums

  32. Student FIC/FIM/FIH Exemption • Students working and enrolled at ECU may be temporarily exempt from SS taxes. • Based on # of hours enrolled • Evaluated each pay period

  33. International Employees • Employees on a temporary visa are required to visit the payroll office annually to do a tax assessment to determine taxation and potential eligibility for tax treaty benefits. • Employees who do not meet the substantial presence test for resident alien, can only claim one allowance for federal and zero allowance for state withholding, and will be taxed at the higher nonresident alien rate (some exceptions apply for Canada, Mexico, Korea, and India).  • Green card holders and resident aliens for tax purposes are taxed the same as US citizen.

  34. International Employees • Individuals on temporary visa being taxed as a nonresident alien may be exempt from FICA tax depending on the visa type (F-1, J-1, M-1, Q-1) used to enter the United States and compliance with the terms of that visa. • Individuals on temporary visa taxed as a resident alien may be exempt from FICA only if they meet the student FICA exemption which is the same for a US citizen that is based on enrollment/thesis. 

  35. Kronos update • Who? • Every ECU employee who earns or is granted leave and/or tracks time • What? • Time, attendance and leave tracking system • Eliminates paper/excel leave records • When? • Steering committee formed • Rebuild implementation team • Upgrade to and train on most recent version • Developing phasing and implementation plan • Why? • Improve policy and FLSA compliance • Improve productivity and manual timekeeping • Eliminate paper leave records

  36. Why 86.67 hours? • 52 weeks X 40 hours week = 2080 hrs • 2080 hrs / 24 pays equals = 86.67 hrs per pay • Pay periods range from 9 days to 12 days. • Wage adjustments calculated based on # of days worked/missed in pay period vs. 8 hours day times # of days

  37. Wage adjustment calculation • John Doe retired on 22 February and earns $1250 per pay • Final salary calculated as 5/9 X $1250

  38. Converting Minutes to Decimals • Banner deals with minutes as a decimal • MTEs should be reported in decimals • # of minutes/60 = decimal • 15/60 = .25 30/60 = .5045/60 = .75 • Examples: • 6 hours & 30 minutes shown as 6:30 = 6.50 hrs • 5 hours & 15 minutes shown as 5:15 = 5.25 hrs • 4 hours & 10 minutes shown as 4:10 = 4.17 hrs

  39. Conversion Chart

  40. Leave Reporting • Payroll does not have access to leave records • If employees miss work and have no leave “on the books” , timekeepers are RESPONSIBLE for reporting hours missed to Payroll so that pay can be adjusted appropriately.

  41. Request to Reduce Pay • REQUEST TO REDUCE PAY • This template should be used as an official request to the Payroll Office to reduce the salaried pay for an employee who has been absent from work and has no accumulated leave to offset their absence. This template may also be used for those employees who must have their pay reduced during the University Winter Break because they have insufficient leave time to cover the absence or for those employees who have the leave, but choose to have their pay reduced rather than take available leave. • This template is NOT a substitute for the Official Leave of Absence (LOA) Form available on the HR/Benefits website which should be used for all Leave of Absences not covered by the examples provided above. http://www.ecu.edu/cs-admin/HumanResources/Benefits.cfm • This template should be completed by the Leave Clerk. • Send an e-mail request to lalul@ecu.edu and andrewsc@ecu.edu with the subject line “PAY REDUCTION REQUEST: • EMPLOYEE NAME and BANNER ID#”. • COMPLETED BY: • Please make the following adjustment to the semi-monthly employee per the request detailed below: • EMPLOYEE NAME: • BANNER ID#: • (Detail each date and the # of hours to adjust per day separately. Insert more lines if necessary) • COMMENT: • (Provide any additional information you feel may be helpful). • DEDUCT FROM: • ____PP24 (if for Winter Break) ____NEXT PAY ____ PP ____ • (If you wish to deduct the pay over more than one pay period, please contact Payroll @ 252-328-4245) • LEAVE CLERK TELEPHONE #:

  42. FMLA and Leave-including Intermittent leave or reduced work schedule • Must submit FMLA application and medical certification to the Benefits Office 30 days-2 weeks from start date of leave. • FMLA is UNPAID leave…must use vacation, sick, bonus, comp in order to remain in active pay status.

  43. FMLA and Leave-including Intermittent leave or reduced work schedule • Employees on FMLA who exhaust leave or with no available leave should be placed on Leave Without Pay using a Leave of Absence form. • Must make arrangements with Benefits Office regarding benefits while on LWOP • Should be closely coordinated with Payroll to ensure appropriate pay and avoid overpayment.

  44. Wage and hour laws • “Non-exempt” covered by Federal FLSA. • Overtime for hours worked in excess of 40 for single workweek. • Non-exempt SPA employees paid salaried wages, but must be compensated (comp time or pay depending on departmental policy) for hours worked over 40 in single workweek

  45. Wage and hour laws

  46. Week 1

  47. Week 2

  48. Week 3

  49. Week 4 • Assuming no hours worked on Saturday 3/16/13

  50. Adverse Weather • If Adverse Weather is used…must use vacation leave or must be made up within 12 months of date taken • When making up AW employee cannot work more than 40 hours…must make up during a week employee is out sick, takes a vacation day, holiday-Must repay using straight time hours • Must have system for keeping up with the AW weather leave taken and made up

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