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10 Most Common Payroll Pitfalls Presented by : Tracie Piller , CPP Date : October 13, 2017

10 Most Common Payroll Pitfalls Presented by : Tracie Piller , CPP Date : October 13, 2017. Speaker. Tracie Piller , CPP Solution Consultant – Strategy Ultimate Software. Agenda. Introduction Mistakes Happen Common Blunders Minimizing Errors Let's get started…. Voids and Reversals.

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10 Most Common Payroll Pitfalls Presented by : Tracie Piller , CPP Date : October 13, 2017

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  1. 10 Most Common Payroll Pitfalls Presented by: Tracie Piller, CPP Date: October 13, 2017

  2. Speaker • Tracie Piller, CPP • Solution Consultant – Strategy • Ultimate Software

  3. Agenda • Introduction • Mistakes Happen • Common Blunders • Minimizing Errors • Let's get started…

  4. Voids and Reversals • Voided Checks • Impact • Quarter/year-end • GL and bank accounts • Reversals and adjustments

  5. Recommendations • Process voids promptly • Track and compare • Supplemental payrolls • Posting transactions • Validate NO NEGATIVE WAGES

  6. Deductions & Earnings • Incorrect taxation • Impacts • Employee/Organization • Deductions • Earnings • Taxable Fringe Benefits • Examples

  7. The Fix • Research proper taxation • FIT/SIT/FUTA • www.IRS.gov • W-2 vs. 1099 • Publications 15 and 15-B • Verify set-up on system • Test, test, test • Process Promptly • Save Your Company Money by Doing it Right the • First Time

  8. State/Local Taxes • Employees who move • Did they forget to tell you? • Reciprocal agreements • Correct reporting/deadlines/rates • Costs • Audits, amendments, penalties

  9. What to do • Employees who move • Timing/Checklist • Quarterly reminders • Reciprocal agreements • Ensure SUI Rates are updated • Research local taxes • Validate with reports

  10. More to Consider • Verify correct set-up • APA’s Guide to State Payroll Laws • BNA, CCH, State sites • Understand/Know deadlines and rules • Deposits • Filings

  11. Timekeeping – It Matters • Challenges • Managing the work week • Building in rules for OT • Start, Stop and Break Time • Source document for earnings

  12. Recommendations • Recommendations • Be involved in configuration • Understand rules (by state), holidays, union • Periodically test/audit • Why? • Can lead to issues with union or DOL • Builds trust with employees • Excellent tool for labor tracking

  13. Intercompany Transfers/Acquisitions • Multiple companies • Acquisitions/Successor • When do taxes start over? • Tracking/verifying YTD • Costs • W-2cs, amended returns, audits and penalties

  14. Things to Remember • Understand wages and taxes • SS/SUI/FUTA – start over • Tax details • YTD Deductions

  15. New Technology • ESS/MSS • Workflow – what is it? • Change management • Dos and don’ts

  16. Steps to Take • Recommendations • What do you do today? • Does it make sense? • Process maps • Example • ESS/MSS and Workflow

  17. Process Map – Address Change

  18. Successful Implementation • Key to Success • Have a plan • Communication • Change management/training • Manager/employee training • Gaining user acceptance

  19. General Ledger • Challenges • New earnings, deductions and taxes • Structural changes • Acquisitions • Costs • Time, corrections, labor allocations

  20. GL Recommendations • Get involved • Understand basic requirements • Relationship with finance • Subject matter expert • Be proactive • Checklist?

  21. FLSA Overtime • Common misconceptions • Does it really make a difference? • Have to pay OT on other earnings • For some employees makes no difference • But for others it does!

  22. Regular Rate of Pay • Regular Rate of Pay • All earnings to be included • Regular, regular overtime, commission, non-discretionary bonuses, premiums • Add all earnings and divide by total hours worked

  23. Overtime Example • Reg. Rate = $10/hour/OT Rate = $15 • Hours = 40 regular, 10 overtime, other earnings = $500 • (40 * 10 = $400) + (10 * 15 = $150) + $500 = $1050 • Right?

  24. FLSA OT – The Right Way • Rate = $10, 40 regular, 10 overtime, $500 other earnings • 50 * 10 = $500 + $500 = $1000 = regular pay • $1000/50 hours = $20/hour (reg. rate) * .5 = $10/hour (OT rate); $10 * 10 = $100 • $500 + $500 + $100 = $1100

  25. Year-end Preparation • Waiting too long • Compounds issues • No checklist • Compliance • Lack of testing • No reconciliation • W2 totals <> 941 totals

  26. The Master Plan • Start early • Create a plan/checklist • Create a team • Where you can find help • APA’s Year-end course • Vendors/local chapters

  27. Reconciliation – The Key • Create a spreadsheet • Taxable wages • Taxes that can be manually calculated • Collect data each payroll/month • Early detection • Pay attention to warning signs

  28. Wrapping It Up Rolling the dice Pay Now or Pay Later Questions?

  29. Thank You!

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