USPS FY11 YEAR-END CLOSEOUT WEBINAR Friday, May 27th, 2011

1. USPS FY11 YEAR-END CLOSEOUT WEBINAR Friday, May 27th, 2011

2. Agenda - Pre-closing procedures EMIS Staff Reporting Month-End Closing Balance the payroll Account Quarter-End Closing STRS Advance Processing STRS Electronic Submission Quarter-End Closing completion USPS Year-End Closing Post USPS Year-End Closing

3. Pre-Closing Procedures - • Cost of Life Insurance Over $50,000 – FOR RETIREES ONLY For employees who will be retiring at the end of the fiscal year, calculate the cost of life insurance over $50,000. Using the USPSCN/UPDCAL_CUR or USPSCN/UPDCAL_FUT program, the amount should be included as part of their final pay using a pay type of NC1. The calculation chart can be found on page 13 of the IRS publication 15-B in the Coverage over the limit section. Below is the IRS website URL: http://www.irs.gov/pub/irs-pdf/p15b.pdf

4. Example of an NC1 pay.

5. Verify that the STRS Advance Field is blank in USPSDAT/USPCON. If the field is not blank, contact SWOCA for assistance.

6. Run the USAS/SURCHG program if needed. This program is designed to assist with verifying the SERS surcharge calculations and GAAP reporting. See the SURCHG chapter of the USPS Reference Manual for more information. Below is the URL for the documentation: http://wiki.ssdt-ohio.org/display/usps/SURCHG+ +SERS+Surcharge+Report • Or, check the SERS Employer website: http://ohsers.org/employer-surcharge (click on “Read More” to expand the article) •  NOTE: Surcharge base level is $35,800.

7. Register for on-line STRS Recap sheet reporting on the STRS website if you have not already done so at: https://www.strsoh.org/employer/ • Run STRSAD, option 1 (projection) to check for and correct errors. See the STRS Advance Chapter in the USPS User Guide: http://wiki.ssdt-ohio.org/display/usps/STRS+Advance

8. Create job calendars for 2011-2012 school year using USPSDAT/CALMNT. Use the F20 “Copy” feature if needed.

9. New contracts can be entered for those positions with a July 1 start date. Contracts with other start dates can be entered if the information is available. Use the NEWCNT program to manually add, mass load or upload new contracts.

10. EMIS Staff Reporting - • As soon as the staff attendance has been updated through June 15th, you or your EMIS coordinator should begin verifying EMIS attendance information for the year-end reporting period. Completing the staff data verification will insure timely submission of data to ODE to meet the June 30th reporting period deadline. • Run RPTSUM to check attendance using the options shown:

11. EMIS absence (EB) and attendance (ET) days are calculated through the job calendars and attendance posting. If adjustments are necessary, use the adjustment option of USPSCN/ATDSCN.

12. Run LONGSICK to check long term illness days (15 or more consecutive days of absence). This program creates a detailed (LONGSICK.TXT or LONGSICK.CSV) and a summary (SUMSICK.TXT) sick leave report for employees.

13. Make long term illness adjustments in DEMSCN or BIOSCN.

14. Run SICKDEM to see changes made to the long term illness fields.

15. Month-end Closing - • Follow your payroll procedures and completely close the last payroll of June before beginning these closing procedures. (Don’t forget to run LEVPRO if needed)

16. Run the RETIRE program. Select SERSREG option. • First answer 'N' to the option "Create SERS tape file?" • Verify that the total contribution amounts listed on the report equal the total deduction checks for the withholding plus any warrant checks written for pick-up on pick-up. • Verify that contributions by the employee = earnings x the applicable retirement percentage. Allow for rounding.

17. Review service credit days for all employees on the SERSREG.TXT report. If necessary, adjustments can be made using USPSCN/ATDSCN.

18. Verify that paperwork has been completed for employees listed on the report as "new". •  Once satisfied that the data is correct, run the program again and answer “Y” to create the tape file to clear accumulator totals and create the submission file (SERS.yymm). • Complete and submit SERS monthly reports and payments as required.

19. Run RETIRE program, select STRSMONTH a. First answer “N” to the option clear STRS MTD. Check the totals. b. Run the program again and answer “Y” to close out the month as below: • Clear STRS MTD accumulators? (Y/N ) : Y • Reporting month and year? (MMYYYY): 06/2011

20. Run STRS_SEND for the month of June.

21. Run the BENACC program if applicable.

22. Balance the Payroll account - • Run the CHKSTA program to reconcile checks if you do not auto reconcile payroll checks. • Run the CHKSTS option of the USPRPT program to generate an outstanding check register.

23. Quarter-end Closing - • Run the ODJFSRPT program and generate a report only. *NOTE: Answer 'N' to both of the following questions the first time the program is run: Do you want to create a tape file for submission to ODJFS? (Y/N):N Do you want to close ODJFS for the quarter? (Y/N): N • Check all totals carefully for accuracy.

24. Run NOODJFS to make sure you did not miss reporting any employee that has earnings.

25. If necessary, adjustments to ODJFS days can be made using USPSCN/ATDSCN.

26. When all data is correct, run the ODJFSRPT program again, this time answering “Y” to the following question (entering Y will simultaneously close the quarter): Do you want to create a tape file for submission to ODJFS? (Y/N <Y>): Y • NOTE: MAKE SURE YOU ALWAYS RUN ODJFSRPT (Y - Option to close the quarter) PRIOR TO RUNNING THE QRTRPT PROGRAM. THE QRTRPT REPORT GROSS WAGES WILL BE ZEROED OUT AND NOT INCLUDED IF YOU PROCESS THESE TWO PROGRAMS OUT OF ORDER.

27. Run the QRTRPT program selecting Option N – No Totals Zeroed (Demand Report)

28. In the "Totals" section of the QRTRPT, the gross and adjusted gross should balance using a manual calculation: Gross - Annuities + Non-Cash Earning ----------------------------------------- = Adjusted gross calculated • The Adjusted gross calculated should equal the adjusted gross amount from the QRTRPT. This should be true for all adjusted gross figures in the "Totals" section. If the “Calculated Adjusted Gross” figure differs from the adjusted gross on the USPSCN/DEDSCN Federal tax records, an additional amount prints on the QRTRPT on the “Difference In Gross” line. • All deduction checks for the quarter should equal the total deductions showing on the QRTRPT.

29. Be sure to verify the electronic transfers for Federal and Medicare payments as well. • The total gross showing on QRTRPT should equal the total of all payroll clearance checks created during CHKUPD for the quarter. *NOTE: DO NOT run OPTION Q. This option will be processed by the BACPAY program after the files have been copied. *It is recommended that you run W2CURRENT quarterly and balance the W2REPT quarterly to minimize problems at calendar year-end. NOTE: Lines 1, 2, 3, 5A, 5C, 9 & 11 of the QRTRPT are used for completing the 941 information each quarter. The information given here should be transferable directly to the IRS 941 form.

30. Type W2CURRENT at the SWOCA prompt. Check the W2ERR.TXT report for errors.

31. Balance the W2REPT.TXT for the quarter against the district records (ex. Spreadsheets). • Balance the deduction totals (taxes and annuities) on the W2REPT.TXT report with the totals from the DEDRPT.TXT reports from the quarter. • Balance the gross amounts on the W2REPT.TXT report with the PAYRPT.TXT reports for the quarter. • If errors are discovered, check employees that had exception processing during the quarter such as voided checks, error adjustments, or manual changes in USPSCN. The AUDRPT program can be useful in identifying these problems.

32. Run the SWOCA program, DEDACC, to generate a non-zero deduction report. • View DEDACC.TXT and verify that there are no outstanding deduction amounts.

33. The total of all board paid amounts (if tracked in the system) should equal the total of all warrant checks to the vendor or deduction company. • Complete and file any required quarter-end submission forms. • For city withholdings, take the total gross times the percentage to be sure the tax withheld and submitted are correct. This calculation may not work for MUNSCN employees. Run the MUNDET report program if needed.

34. STRS Advance Processing - • Employees flagged as full-time must have at least 120 service days to be granted a full year of service credit toward retirement. Employees flagged as part-time will be given credit according to STRS rules outlined in the STRS Employer's Manual. If you are in doubt about an employee's part-time or full-time status, contact STRS and obtain a ruling. • Run the STRSAD program and select projection only (option 1). This option can be run as many times as needed.

35. The program produces three reports: • STRSAD.TXT lists all advanced jobs for the district • STRSAD.RPT is the complete fiscal year-end report for all STRS employees • NONADV.TXT lists STRS employees whose jobs will not be advanced

36. Run STRSWRK (STRS worksheet). Compare STRSWRK.TXT with STRSAD.TXT to make sure the "Contract Amount Due" is correct.

37. Verify the data on the reports. On the STRSAD.RPT report, check each employee's service credit and FYTD totals. At the bottom of this report, there is an amount labeled Total Taxed + Non-Taxed. The amount shown should equal the amount deposited with STRS during the fiscal year plus the amount of accrued contributions on summer pays.

38. Once the data has been verified for the advance, run the STRSAD program again, this time selecting Option 2. This option creates the file that will be submitted electronically to STRS and sets the STRS period closing date field in USPSDAT/USPCON to 06/2011. • Option 2 also flags eligible jobs as in advance mode until the last payment in the contract has been paid. At that time, the advance flag is turned off and the job is no longer considered in advance mode. Print and file the final copies of the STRSAD.TXT and STRSAD.RPT reports. • Complete the STRS Recap Sheet using totals from the STRSAD.RPT report and the Recap Sheet. Note that totals for regular and rehired retirees are separated on the report since the STRS Recap Sheet requires that these be reported separately. • Send the original copy of the STRS Recap Sheet to STRS by the second Friday in August. Retain a copy of the Recap Sheet for your records. Below is the URL to the STRS website: https://www.strsoh.org/employer/faqs/6.html

39. Electronic submission of STRS Annual File – • Districts will submit the STRS annual file electronically. The procedure works in the same manner as the transmission of the STRS per pay data submissions (STRS_SEND). At the SWOCA prompt: • Type USPS • Select USPS_ANN • Select ANNSTRSSND

40. Quarter-end Closing Completion - • Generate the following reports and print if needed: USPRPT/ERNSUM (all data) ERNREG (all data for the quarter) QRTRPT (all data - demand report) DO NOT RUN OPTION Q

41. USPS Year-end Closing - • Generate any reports which you may need. (ex. BENOBL – Benefit Obligation, WAGOBL - Wage Obligation) • Instruct ALL users in the district who have access to the payroll files or PPS files to log off. Type SHUSE to see a list of users who may be logged in. Don’t forget to check USASWeb. • Type USPAUDIT at the SWOCA prompt to create a USPS submission file for the auditor. • Run the AUDRPT program with the “O” Official option and have signed by the Treasurer if required. • Run BACPAY to produce the following: • backs up your current files to a separate history directory. • runs QRTRPT option 'F' to clear the QTD and FTD totals. • runs CLRATD to reset the long term illness field in BIOSCN. • runs PAPURG to purge detail records prior to 06/30/10. You will receive an email message when BACPAY finishes processing. USPS users will need to log out and log back in to set your access to FY12. NOTE: Access to the districts files will be restricted until the BACPAY procedure finishes.

42. Post USPS Year-end Closing - • After all summer pays have been paid do the following: • View USPSDAT/USPCON to verify that the STRS Advance Mode and STRS Advance Amount fields are blank. • If these fields are not blank, run CHKSTRS, choosing the same sorting options as STRSAD.TXT. Compare totals for each employee to those on the STRSAD.TXT report. Any employee showing a difference should be researched. • Restrictions during the advance: • Modifications cannot be made to certain fields on jobs in the advance mode. • Certain Pay Types can be processed on advance jobs (MIS, DCK, OT, SHP, TRM, POF, NC1). See the STRS chapter of the USPS User Guide for details.

43. THIS CONCLUDES THE PRESENTATION. THANKS FOR PARTICIPATING. IF YOU HAVE ANY QUESTIONS PLEASE CONTACT FAS.