Business Services Meeting

1. Business Services Meeting Thursday, November 3, 2016 THE WAYNE COUNTY REGIONAL EDUCATIONAL SERVICE AGENCY Board of Education • James S. Beri • Kenneth E. Berlinn • Mary E. Blackmon • Lynda S. Jackson • James Petrie • Randy A. Liepa, Ph.D., Superintendent

2. Welcome Business Service Consultants: • Sharon Bourland Field Services: • Mikki Boury • Becky Meadors • Jewell Clair • Julie Pearson • Brett Forgach • Karen Keliher CDOT Consultants: • Angela Schulz • Carole McNamara •Joy Sommers • Sherry Williams Manager, Business Service Systems: • Bob Gerrity

3. Agenda • Welcome • 1099 • ACA • W2 - Preparing / Printing • 1st Pay January 2017 • ORS • Workshops & Classes • Questions

4. SMART 1099 Module • Use Module in SMART • SMART 1099 User’s Guide http://www.resa.net/services/computerconsortium/finance/documentation • DEMO….

5. 1099 Forms 1099’s due to vendors by January 31, 2017 • 3 Part (A, B, & C) Laser Forms for 2016 • Available from RESA

6. 1099 Forms • To Order: Call 734-334-1597 or Email catesm@resa.net • When Ordering by phone: • Purchase Order Required • Counts for both Forms & Envelopes • Cost: 1099: $16.00 per 100 (Sets of 3) Envelopes: $10.00 per 100

7. 1099 Issues Section 409A Deferrals and Income • Boxes 15A and 15B • 15A for Non-Qualified Deferral • 15B for Income • Amount in 15B is also shown in Box 7 • Used for Non-Qualified Deferred Comp Plan subject to provisions of Section 409A

8. 1099 Issues Reporting Deceased Employee Wages • Accrued Wages must be reported. Vacation pay & other compensation is paid after date of death. • Issued to Estate or Beneficiary • If payment is made same year employee died it must also be reported on W2 • Reference 1099-MISC instructions for Details http://www.resa.net/services/computerconsortium/finance/documentation • Reported in Box 3 • Add Beneficiary to vendor file

9. 1099 Issues Medical & Health Care Payments • Include payments to physicians & other health care providers • Corporations are not exempt from Medical & Healthcare payments • Reported in Box 6

10. 1099 Issues Professional Service Fee • IRS guidelines state 1099’s should be issued for all professional fees: • Attorneys (even if incorporated) • Accountants • Architects • Remember to include PCs • Items remain in Box 7

11. 1099 Issues 1099’s vs. W2’s • In almost all cases only one of the two should be issued. (Except for deceased employee) • W9 included for obtaining tax id# • Contact your tax professional or attorney if unsure

12. 1099 Issues Types of Adjustments • Deceased Employee – Move $ to Box 3 • Attorney Settlement – Move $ to Box 14 • Vendor Adjustment – Move $ -/+ to Vendor. No Box Adjustment • Rent – Move $ to Box 1 • Royalties – Move $ to Box 2 • Medical – Move $ to Box 6 • Section 409A Deferrals – Move $ to Box 15A • Section 409A Income – Move $ to Box 15B

13. 1099 Processing • Completed Authorization to RESA by January 26, 2017 • Data will be Locked by a RESA Consultant • Changes will require RESA to unlock • Taping Dates 1/27/2017 - 1/31/2017 • Required to IRS by 1/31/2017

14. 1099 Corrections • Manual corrections to the IRS will need to be made by the District after Taping has occurred • Forms: • Form 1096 (Available from RESA) • Form 1099 (Use Corrected Box)

15. State & City Filing • RESA reports to State of Michigan for each District • District is responsible to file with the City the 1099 is sent to. Check City website for address and transmittal form required. • Follow link for Cities requiring 1099’s: http://www.michigan.gov/taxes/0,1607,7-238-43531-154446--,00.html#2

16. 1099 Workshop • Contact Business Services Consultant • Assistance with 1099’s • Print 1099’s at RESA • Specific Questions

18. ACA Forms • New Monthly Poverty Level • 2 New Codes • Due 1/31/2017 to Employees

19. ACA Forms • To Order: Call 734-334-1597 or Email catesm@resa.net • When Ordering by phone: • Purchase Order Required • Counts for both Forms & Envelopes • Cost: 1095C: $40 per 1,000 or $.04/ea Envelopes: $100 per 1,000 or $.10/ea

20. Preparing for Year End • W2 Health Care Cost Spreadsheet loaded into SMART W2 Module • 2 Column YTD Balancing Spreadsheet (SMART W2 Module) • Group Term Life over $50,000 – Process Taxable Amount through CYBORG before last pay in December • Wages paid through Accounts Payable – Process in CYBORG before last pay in December • No ‘Secret’ Folder

21. W2 - Health Care Reporting • Box 12DD on 2016 W2’s • Options for calculating: • EA (Employee Analysis) • GLDIST (213*) posted for year plus Employee Health Deductions • Excel spreadsheet using SMART W2 Format

22. Preparing for Year End • ‘Step by Step Preparation for Calendar Year End & W2’s 2016’ See Handouts • DEMO....SMART / Check & Wage Reporting / W-2 • Purchase Order for W2’s & Envelopes • Cost: W2’s: $40 per 1,000 or $.04/ea Envelopes: $100 per 1,000 or $.10/ea

23. W2 Printing • Print out of SMART • Test print on forms • Set Year for eEmployee view in SMART

24. eEmployee • IRS compliant copy of W2 • Copy B, C, and 2 are available • Social Security # input required • Prompt to elect paper or electronic copy of W2

25. Holiday Schedule • November 24th& 25th Holiday RESA Closed; System Up Unattended • December 23rd & 26th Holiday RESA Closed; System Up Unattended • December 27th,28th& 29th 8AM – 4PM RESA Closed; Consultant Available • December 30th& January 2nd Holiday RESA Closed; System Up Unattended

26. 2017 Tax Rate Information FICA TAX RATE • FICA OASDI Max Amount will be $127,200 6.2% FICA OASDI Max Withholding of $7,886.40 • FICA HI (Medicare) is 1.45% with no Max Amount • Additional Medicare tax of .9% for employees making over $200,000. No employer match.

27. 2017 Tax Rate Information FEDERAL TAX TABLES • To Be Determined TSA/403B MAX AMOUNT INCREASES • Maximum Deduction Amount will be $18,000.00 • Maximum Catch Up Amount $6,000.00

28. 1st Pay January 2017 PAYALL EXAMPLE • Remove asterisk from the RGTAX line to bring in 2017 tax table (Line 27 in Example) • Contact RESA if you are running an early Pay for 2017 • After Completing 1st Pay Replace asterisk in PAYALL

29. 1st Pay January 2017 AE-SCR • Clear To-date: Clear MTD, QTD & YTD • Payment Date: --/--/2017 • Warning Message – ‘Do you really wish to clear YTD?’ Click to Check Box • IMPORTANT: Verify AE-SCR set-up by comparing Current and YTD Dollars on 22TL Report.

31. ORS • VOYA – Small Steps Program 1% Increase per Year • DTL4 Term Records • ORS Payroll Audit Findings • Retirees - Video • XRTSCR ‘L’ before First Paycheck How to Avoid DC/PHF Adjustments for 1st Pay • New XRTSCR Plan Codes 8 – Students 9 – Board Members & Other Exempt

32. REP Workshops #5730 Friday, November 4, 2016 9:30AM – 4:00PM Thursday, November 10, 2016 9:30AM – 4:00PM Friday, November 18, 2016 9:30AM – 4:00PM Monday, November 28, 2016 9:30AM – 4:00PM Wednesday, November 30, 2016 9:30AM – 4:00PM Please schedule at: http://www.solutionwhere.com/wayneresa/cw/main.asp

33. ACA Workshops #5813 Friday, December 2, 2016 Wednesday, December 14, 2016 9:30AM – 4:00PM 9:30AM – 4:00PM Wednesday, December 7, 2016 Friday, December 16, 2016 9:30AM – 4:00PM 9:30AM – 4:00PM Thursday, December 8, 2016 Wednesday, December 21, 2016 9:30AM – 4:00PM 9:30AM – 4:00PM **Walk-ins Available Entire Month of January** Please schedule at: http://www.solutionwhere.com/wayneresa/cw/main.asp

34. W2 Workshops January 3-6 2017 9-13 16-18 & 20 19TH all day @ LESA 8:00AM or 1:00PM (3 Districts per time slot) If you did not sign up for a workshop when you signed in See Debra Johnson before you leave

35. Next Client Meeting Payroll Fiscal Year End Meeting May 11, 2017 9:30AM - Noon Boyd Arthur’s Auditorium