PowerPoint Presentation

Financial Services Workshop

Payroll BreakoutMay16, 201411IntroductionsPayroll DirectorLetty J. Lalu328-4245lalul@ecu.eduPayroll AccountantMarci Copeland328-0445copelandm@ecu.eduInternational Tax SpecialistBarbara Wells737-4792hanlonb@ecu.eduLead Payroll TechnicianTia Freeman328-4161freemand@ecu.eduPayroll SpecialistCynthia Andrews328-5462andrewsc@ecu.eduPayroll SpecialistCynthia Price328-5461pricecy@ecu.eduPayroll ClerkBrenda Reese328-6954reeseb@ecu.eduPayroll/Admin ClerkRosie Evans328-6955evansro@ecu.eduPayroll TempSue Scott328-5463scotts@ecu.eduMarch 12, 20142

2Primary Areas of ResponsibilityMarch 12, 20143

LettyEmployee overpayments and collection, taxes, W-2s, system integration and reporting, semi-monthly (SM) payroll processing MarciManual payroll cycles and adjustments, International tax reporting-1042s, audit, Kronos implementationBarbaraInternational/non-resident employee and student tax TiaTemp and Student (TS) payroll processing, Web-time, Mass time Entry (MTE) and Kronos supportCynthia A.LOA and termination calculations, pay adjustment calculations, Core Banking, tax payments (EFTPS) and wiresCynthia P.Web-time, Mass time Entry (MTE) and Kronos support, Dual employment, Holiday pay verification, overpayment administrationBrenda Excess wage verification, Direct deposit processing, web-time supportRosieW-4 and NC-4 processing, front office support, W-2 mailing and returns3Whats New?NC House Bill 998Effective 1-1-2014 every ECU employee required to complete a NEW NC-4 State Employees Withholding Allowance CertificateReduces NC income tax to flat 5.8% rateIncreases standard deductionEliminates personal exemptionsEliminates many other deductions and tax credits

Self Service Banner: Employees can now view, submit and updateW-4 - Federal Employees Withholding Allowance CertificateNC-4 - State Employees 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 claims1% of wages assessment Q3,Q4-2013 and Q1,Q2-2014

March 12, 201444Whats new?W-2 Reissue RequestAvailable under Forms on ECU Payroll web sitePaper checks are only available for pickup on the payroll date from 8:00 to 1:00 p.m. Mailed on pay date afternoon mailNew Template: Request to Reduce PayUpdated Payroll Web page with instruction documents, FAQ

March 12, 201455Whats new?March 12, 20146

Southwest corner of Reade and 2nd StreetNo change to:Mail Stop: 226Phone: 252-328-6955Fax: 252-328-0910

120 Reade StreetBuilding 133Financial ServicesGreenville, NC 278586Whats new?payrolltax@ecu.eduQuestions on W-4, NC-4, W-2Questions regarding payroll tax withholding Federal, State, Social Securityinternationaltax@ecu.eduQuestions regarding temporary visa holders, green card holders, 1042sMarch 12, 201477What Payroll doesReview and input W-4, NC-4 and Direct deposit formsUpload time and wages submitted through Web-time, MTE and Kronos into BannerUpload deductions through automated interfacesManually key adjustments submitted from timekeepers/departmentsCalculate and key exceptions for terminations, LOA, returns from LOA, job changes and other non-standard pay situations

March 12, 201488What Payroll doesCalculate and key payroll reductions for overpaymentsWork exception reports generated throughout payroll processFOAPWages recorded in Kronos, Webtime, MTE not loading to BannerVariances this semi to lastExcess wages verificationTax compliance review

March 12, 20149If you receive an e-mail asking you to verify a entry, please take the time to carefully evaluate the entry. These reviews are not random but are exceptions falling outside of the norm and should be considered a red flag.9What Payroll doesReconcile tax liability accounts Ensure timely and accurate submission of Federal and State taxes and reportsIssue annual W2-Employee Wage and Tax Statements and 1042-Foreign Persons U.S. Source IncomeManage failed Direct DepositsCollection efforts for employees overpaid through payroll

March 12, 20141010What Payroll doesnt doChange names or SS#s in Banner-HRInput or change deductions-other than taxes-HRManage liens, garnishments-HRManage or view leave records-DeptDetermine best way for processing payment for unusual pay circumstance-IPSValidate dates on EPAFs- IPS/DepartmentsAct as approver on EPAFs FYI only

March 12, 201411Name changes-SS name and payroll records must be in sync.Other than salary reductionsAdvance leave or ineligible leave taken11What Payroll doesnt doUnemployment claims- Employee RelationsReconcile or submit payment to other vendors (e.g. Insurance, wage garnishments, retirement programs)-IPSReconcile payroll expense to the ledgerReview or reconcile Payroll History reports Review payroll or labor suspense accountsReview POSMAN reports

March 12, 20141212What Payroll doesnt doEmployment VerficationTo 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: 1252b. The persons Employee ID & Last Name OR the persons 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 Agencies1) 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 CenterMonday Friday; 8:00 am 5:00 pm (EST)1-800-281-5260 or 1-440-247-1600

March 12, 20141313Web and Mass Time EntryMarch 12, 201414

Note: This is APPROVERS deadlineNOT students!14Payroll Exception/AdjustmentsCut-off March 18th, but realize on March 21st there is a changenow what?Contact Payroll officeRequest Adjustment formComplete with signaturesReturn to Payroll BY DUE DATE for manual keyingFollow up to ensure hours/pay was included in employees payDo NOT re-submit hours/pay in subsequent payroll through MTEMarch 12, 20141515Payroll Exception/AdjustmentsPayroll typically has 5-6 days after WTE/MTE closes to finalize payroll.Holidays occasionally reduce timeline to just 3 daysPayroll must be finalized 3 working days prior to Pay DateSome changes can be made between WebTime, MTE deadlines and Payroll finalization dates.Late notice terminations/separationsLate notice LOAData entry correction on MTE

March 12, 20141616Manual checksCannot be issued if there is no active job for the employeeShould only be requested if waiting for next semi-monthly pay causes the employee a financial hardshipRequires payroll to run the entire payroll process-isnt as simple as writing a checkPayroll may deny request for manual check.Cannot be issued as a direct depositWill be available for pick up from 10 a.m. to 1:00 p.m. exactly one week following the regular semi-monthly pay day

March 12, 20141717Manual checksContact payroll office Request Manual check formComplete with signaturesReturn to Payroll by DUE DATEDo NOT include hours in next semis MTE.March 12, 20141818Self Service BannerEmployees can view history, current status and # of allowances claimed and can now MAKE CHANGES TO:NC-4 effective December 9, 2013Still have approximately 2,000 employees who have not submitted new form or verified changesW-4 effective January 9, 2014If claiming EXEMPT must complete paper formUsing SSB at new employee orientationMarch 12, 20141919Paper Form-W-4March 12, 201420

20Paper Form NC-4March 12, 201421

If an employee is claiming EXEMPT, Line 1 should be left blank.Otherwise, Line 1 MUST be completed.21Claiming EXEMPTMust meet BOTH conditions1) Last year had a right to refund ALL federal income tax withheld because I had NO tax liabilityAND 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 FebruaryMarch 12, 20142222Paper FormsDefault is S0-Highest tax rateEncourage employees to utilize the worksheet and keep copy for their recordsDont provide advice on number of allowances or statusMust use 2014 formsPayroll will reject paper forms that are not completed correctly or have conflicting informationStatus remains at Single Zero (or last W-4,NC-4 form on file)until corrected form is submitted to Payroll office

March 12, 20142323When to file a new W-4REQUIRED:Name change (after receiving SS card)Divorce, spouse takes a job, dependent moves out of houseRealize you are no longer EXEMPT.

OPTIONAL:Birth of child or adoption, spouse quits their jobRealize you are EXEMPT.

March 12, 20142424Federal Tax Table-2014Standard exemption allowance for 2014 is $164.60 times number of allowancesBanner uses this annualized tax table

March 12, 201425

25Supplemental Pay-2014IRS supplemental tax rate is 25% regardless of filing status or allowances selected on W-4 NC-4 supplemental tax rate is 5.8%Supplemental WagesDual EmploymentBonus and IncentivesSettlement AgreementsAwardsVacation PayoutSeveranceLongevitySupplemental Taxable Benefits

March 12, 20142626NC State Tax Table-2014March 12, 201427

27Social Security Tax-2014FIC-FICA OASDIOld-Age, Survivors, and Disability InsuranceEmployee: 6.2% Employer: 6.2%Maximum taxable earnings for 2014 is $117,000.FIM-FICA Medicare Medicare hospital insurance part of Social SecurityEmployee:1.45%Employer: 1.45%March 12, 20142828Social Security Tax-2014FIH-Additional Medicare TaxNew in 2013-continued in 2014Employee: .09% of wages in excess of $200,000/yr.Employer: noneMarch 12, 20142929Fed and State Pre-Tax DeductionsAll deductions that say Pre-Tax 401K, 403b (not Roth) and 457 contributionsFlex dependent care spending, Flex medical care spendingHealth insurance premiums TSERS state retirement, Fidelity, Lincoln, TIAA and VALIC and undecided Employee contributionsMarch 12, 20143030Social Security :Pre-Tax DeductionsAll deductions that say Pre-TaxFlex dependent care spending, Flex medical care spendingHealth insurance premiumsMarch 12, 20143131Student FIC/FIM/FIH ExemptionStudents working and enrolled at ECU may be temporarily exempt from SS taxes.Based on # of hours enrolledEvaluated each pay period

March 12, 201432Enrollment StatusMinimum # of hoursGraduate4Medical4Undergraduate6Dental1032International EmployeesEmployees 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.

March 12, 20143333International EmployeesIndividuals 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.

March 12, 20143434Kronos updateWho?Every ECU employee who earns or is granted leave and/or tracks timeWhat?Time, attendance and leave tracking systemEliminates paper/excel leave recordsWhen?Steering committee formedRebuild implementation teamUpgrade to and train on most recent versionDeveloping phasing and implementation planWhy?Improve policy and FLSA complianceImprove productivity and manual timekeepingEliminate paper leave recordsMarch 12, 20143535Why 86.67 hours?52 weeks X 40 hours week = 2080 hrs2080 hrs / 24 pays equals = 86.67 hrs per payPay 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 daysMarch 12, 20143636Wage adjustment calculationJohn Doe retired on 22 February and earns $1250 per payFinal salary calculated as 5/9 X $1250

March 12, 201437

37Converting Minutes to DecimalsBanner deals with minutes as a decimalMTEs should be reported in decimals# of minutes/60 = decimal15/60 = .2530/60 = .5045/60 = .75Examples:6 hours & 30 minutes shown as 6:30 = 6.50 hrs5 hours & 15 minutes shown as 5:15 = 5.25 hrs4 hours & 10 minutes shown as 4:10 = 4.17 hrs

March 12, 20143838Conversion ChartMarch 12, 201439

39Leave ReportingPayroll 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.

March 12, 20144040Request to Reduce PayDATE# of HOURSTOTAL # OF HOURS:March 12, 201441REQUEST TO REDUCE PAYThis 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 #:41FMLA and Leave-including Intermittent leave or reduced work scheduleMust submit FMLA application and medical certification to the Benefits Office 30 days-2 weeks from start date of leave. FMLA is UNPAID leavemust use vacation, sick, bonus, comp in order to remain in active pay status. March 12, 20144242FMLA and Leave-including Intermittent leave or reduced work scheduleEmployees 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.March 12, 20144343Wage and hour lawsNon-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 workweekMarch 12, 20144444Wage and hour lawsMarch 12, 201445

Week 1March 12, 201446

Week 2March 12, 201447

Week 3March 12, 201448

Week 4Assuming no hours worked on Saturday 3/16/13March 12, 201449

Adverse WeatherIf Adverse Weather is usedmust use vacation leave or must be made up within 12 months of date takenWhen making up AW employee cannot work more than 40 hoursmust make up during a week employee is out sick, takes a vacation day, holiday-Must repay using straight time hoursMust have system for keeping up with the AW weather leave taken and made up

March 12, 201450University ClosedEmployees paid for this timecoded as UC on leave cards/time sheetsIf employee is asked to come in, they will be paid for the hours they worked and they will get hour for hour to be used laterIf an employee chooses to come to work, they will not be paid and will not receive hour for hour time offException request must be approved by HRMarch 12, 201451How can we reduce overpayments?Complete Leave of Absence forms timely-WC, FMLA, etc.Complete Termination forms timelyKeep leave records up to dateNotify Payroll of short notice terminations immediatelyEven if leave records are not up to date and require additional review/signatureNotify Payroll of employees in negative leave situations or work missed with no leave on the books

March 12, 20145252How can we reduce overpayments?File EPAFs timely to end jobs, stipends, etc.Ensure employees with jobs set up in advance actually begin assignments on target dateEnsure EPAF dates and pay factors are correctNotify payroll immediately of death in service

March 12, 20145353Collection ProcessFirst Notice: Employee notification of overpaymentIf current employee-payroll reduction If terminated-begin collection process30 days: Second Notice10% penalty and 5% annual interest 60 days: Final Notice90 days: submission to NC Attorney Generals office90 days: submission to NC Setoff Debt Collection Program (SODCA) -taxpayer income tax refunds120 days: submission to Collection agencyMarch 12, 20145454Collection ProcessIf collected in same year, employee pays back net wagesIf collected in subsequent year, employee pays back gross wagesJob FOAP credited when payment is received. (May be closed FOAP)March 12, 20145555Resources: Payroll web siteStaff listingPayroll CalendarsSSB InstructionsFAQsForms

March 12, 201456

56UNC-FIT-Payroll KPI-You can help!# of payroll adjustments (requests for manual checks)# of paper checks vs. direct depositDD is mandatorybut the # of paper check being issued is on the rise!# of new or rehired employees not paid in current month-late EPAFSDollar value of overpayments to employeesOver last three (3) quarters:90 instances of administrative errors (e.g. late, terminations, late LOAs, late EPAF and EPAF errors, etc) resulting in overpayment of approximately $130K 155 instances of reduction of pay due to negative leave resulting in overpayments of approximately $60KMarch 12, 201457What can you do to help?Encourage employees who have a name change to get a new SS card and present to HRInclude cover sheet with submissions to payroll letting us know sender and contact informationEncourage use of SSB for:W-2 consentAddress changeNC-4, W-4 review and changesPaystub reviewMarch 12, 20145858What can you do to help?Use the Comment section of EPAFS, termination forms and LOA forms to add clarity.Submit EPAFs timely and seek clarification if you are unsure of the dates to use.

March 12, 20145959Discussion QuestionsHow do you ensure that your payroll expense $$ are correct-additions/deletions from semi-monthly payrollAre there tools/reports that you think would be beneficial to help you manage payroll transactions? Who uses them?What could payroll do to improve our customer service?Are there additional resources youd like to see on the Payroll web site to help you with your job?Why does Payroll office receive W-4, NC-4 for individuals who never have/get jobs?

March 12, 20146060What can WE do to help?March 12, 201461

61SUPPLEMENTAL SLIDESMarch 12, 20146262International Employees

March 12, 201463International EmployeesMarch 12, 201464

International EmployeesMarch 12, 201465

International EmployeesMarch 12, 201466

Mass Time Entry (MTE)Used to enter non-regular pay Accessed through One-StopEmployee PoolSubmitter/Approver/ProxySome restrictions to Earnings codesMarch 12, 20146767Banner Security Accessfor Webtime, MTEStep 1: One Stop > Tools > Employee > Reporting StructureMake certain your supervisor has claimed you.

If not, have supervisor go to Reporting Structure and key in your Banner ID

March 12, 201468

68Banner Security Accessfor Webtime, MTEStep 2: Accept your supervisorOne Stop > Tools > Employee > Reporting StructureClick on Approve

March 12, 201469

69Banner Security Accessfor Webtime, MTEStep 3One Stop > Tools > Banner > Banner Security Request > Request Security > Human Resources

March 12, 201470

70Banner Security AccessMarch 12, 201471

71Special EarningsPaid on First Semi:LongevityExtra pay for OT, Shift, Beeper and LongevitySOM MTEPaid on Second Semi:E/C 909-NCFlex Life Insurance Imputed Income, calculated on coverage over $50K based on employees age and amount of coverage. Paid on Both Semis:Non-cashCar/Phone AllowancesTaxable SFB Med Direct Bill

March 12, 20147272Pay InformationMarch 12, 201473

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