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MCTIReporting Requirements and

Deadlines for Payroll

Presented by:

Mardi Valentino, CMC, MPA

Director of Human Resources

September 15, 2017

Disclaimer

• Nothing contained in this presentation isintended as a substitute for legal advice.

• Please consult your municipal attorney forlegal advice.

• All websites, phone numbers, and examples offorms given in the presentation as are currentas possible.

Information Covered:• New Hire Reporting• Levies & Garnishments• Standard Deductions & Voluntary Deductions• Direct Deposit• Quarterly Reports• Retirement• 941• State• UCE• Fringe Benefits• Bonus Round• Questions?

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Resources for New Hire Reporting• Reporting Forms:

– www.newhire.sc.gov Website administered by the SC Department of SocialServices

– www.scbos.sc.gov South Carolina Business One Stop offers access to SCDept of Employment and Workforce (SC DEW), SC Department of Revenue(SC DOR), and SC Department of Health and Environmental Control (SCDHEC).

• Labor Statistics– www.bls.gov/ces Bureau of Labor and Statistics provides Current

Employment Statistics (CES) on employment , hours, and earnings onworkers.

• E-Verify

– www.dhs.gov/everify Department of Homeland Security

• Personnel Action Forms & Personnel Policy

• W-4– www.irs.gov Employee Withholding Allowance Certificate

SUITS - It’s Alive!!

• The SC Department of Employment and Workforce(DEW) new State Unemployment Insurance TaxSystem (SUITS) is an on-line system designed to helpyou file unemployment insurance wage reports andpay unemployment insurance taxes.

• You can download file specification documents forfiling your wage reports and taxes.

• If you need assistance with the new system call1-866-831-1724.

DOR Opens - MyDORWAY

• MyDORWAY is the Department of Revenue’s onlineservice for filing tax returns and making payments. Itfeatures accurate, automated calculations to reduceerrors and ensure information is complete.

• You can file and pay separately with 24/7 access,schedule payments and receive copies of notices.Tutorials are available.

• Set up access to MyDORWAY at mydorway.dor.sc.gov

• If you need assistance with MyDORWAY call 1-844-898-8542.

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What’s an FEIN and Why Do I Need It?

• FEIN – Federal Employer Identification Number.

• FEIN is a nine-digit number the IRS assigns to identifythe tax accounts of employers who are required tofile various tax returns on employment taxes.

• Employment taxes – If you have one or moreemployees you generally are required to withholdfederal income taxes from employee wages, as wellFICA wages, Social Security, and Medicare. Of coursethe state wants it’s share too.

Hiring New Employees

• Set up employee’s payroll information.

• Verify the legal status of new employees through theE-Verify website within three days of hire.

• Report all newly hired employees to SC Departmentof Social Services within 20 days of hire.

• Enroll new employees in insurance plan andappropriate retirement system within 31 days of hire.

New Hire Information Form

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W-4 Form

Levies or Wage Garnishments

Levy - a legal seizure of your property and/or wagesto satisfy a tax debt. A levy actually takes theproperty to satisfy the tax debt.– Common forms of levies can include: IRS, SC DOR

wage levies

Garnishment – the process of deducting moneyfrom an employee’s monetary compensation(including salary), sometimes as a result of acourt order.– Common forms of garnishments can include: child

support, bankruptcy, and student loans.

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Standard Deductions

Mandatory Deductions:

• Federal taxes, FICA (Social Security and Medicare),State taxes, and State Retirement.

Voluntary Deductions:

• Insurance premiums, Deferred Compensation (401K)contributions and/or loans, retirement servicepurchase, direct deposit, etc.

• Should require signed authorization for any voluntarychanges.

Direct Deposit

• Is it mandatory?

• What is required to set up direct deposit?

• Check stubs – printed/emailed

• Portal system – on-line system

with employee access to view

and/or download paystub.

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Quarterly Reports

• PEBA Retirement – SRS and PORS

• Federal – Form 941, Employer’s Quarterly Federal TaxForm

• State – UCE 120/101, Department of Employmentand Workforce

Quarter Due by:

January – March April 30

April – June July 31

July – September October 31

October – December January 31

Retirement SystemsPEBA - www.retirement.sc.gov

The South Carolina Public Employee BenefitAuthority (PEBA) Retirement Benefits managesretirement plans for South Carolina's publicworkforce by serving as the fiduciary stewards ofthe contributions and disbursements of the pensiontrust funds. Employers access and manage employeeaccounts through the EES on-line support system.

For more information, please contact CustomerService at 803-737-6800 or toll free at 800-868-9002(within S.C. only).

Retirement Rate Contributions

Retirement Plan Member Contribution Rate

SCRS 9.00 % of earnable compensation

PORS 9.75 % of earnable compensation

RetirementPlan

Employerretirement

contribution

Incidentaldeath benefitcontribution

Accidentaldeath

contribution

Totalemployer

rate

Insurancesurcharge

Local subdivision of government employers covered under retiree insurance surcharge.

SCRS 13.41% 0.15% N/A 13.56% 5.50%

PORS 15.84% 0.20% 0.20% 16.24% 5.50%

Local subdivision of governmental employers not covered under retiree insurance surcharge.

SCRS 13.41% 0.15% N/A 13.56% N/A

PORS 15.84% 0.20% 0.20% 16.24% N/A

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Payment Methods• Employers must remit employer and employee

contributions to PEBA monthly.

• Employers can send a paper check, wire themoney, or have it debited from the employer’sbank account.

• Completion of the Automated Clearing House(ACH) Debit Authorization (Form 1226) is requiredfor automatic debits.

Monthly Reports

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Quarterly Reports

EES – Electronic Employer Services

https://ees.retirement.sc.gov/ees

Retirement – Employer Manual

http://www.retirement.sc.gov/publications/manual.pdf

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Form 941 - Quarterly

941 – Schedule B

Unemployment (UCE)All liable employers are responsible for preserving employee records andsubmitting quarterly wage reports.However, certain organizations in South Carolina do not pay quarterly UItaxes. Instead these entities reimburse DEW for the total dollar value ofUI benefits paid to their former employees. These entities are knownas reimbursable employers.

State government agencies are required to be reimbursable employers.

Local government entities that are liable for UI taxes can choose to becomereimbursable employers by completing and mailing the Election toBecome Reimbursable Form (UCE-155) to the address below. Without thisdocumentation, the organization is considered an employer liable forpaying quarterly UI taxes.

South Carolina Department of Employment and WorkforceEmployer Status UnitP.O. Box 995Columbia, SC 29202

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UnemploymentLate Payments and Reports - If you fail to submit contribution or wage reports

by the due dates below, you’ll receive a Notice of Delinquency.

Quarter Due by:

January – March: due by April 30 July – September: due by October 31

April – June: due by July 31 October – December: due by January 31

If you then fail to file a report within 15 days of receiving the Notice ofDelinquency, DEW will assess a 10 % penalty of the contributions due; noless than $25 and no more than $1,000 in addition to contributions due.

Any employer that fails to file a report at the time of the next tax ratecalculation will receive a delinquent tax rate assignment of tax class 20 forthe next year.

Any employer that fails to pay contributions owed and has an outstandingtax lien from DEW will receive a delinquent tax rate assignment of tax class20 for the next year or until the outstanding debt is paid.

South Carolina taxable Wage base is $14,000.00.

UnemploymentSubmitting Quarterly Contribution and Wage Reports:Employers must file a Quarterly Contribution and Wage Report (UCE-120/101) eachquarter. Following are some examples of wages that should be included in the report:

• Payments made for personal service, including bonuses and commissions paid to allworkers of all ranks, including corporate officers.• Cash value of all payments in any medium other than cash.• Reasonable compensation for services provided.• Monies paid for time lost due to sickness or accident, unless paid out of benefit fundsor other special accounts.• Expense allowances, which are not regularly and reasonably segregated.• Dismissal wages, which do not represent the worker’s interest in a pension fund.• Monies paid before any deductions for such items as employee payments to pensionor benefit funds, Social Security tax and premiums on group insurance.

For questions about whether specific types of payments are considered wages, contactthe Wage Records Section at 803-737-2400.

DEW offers two convenient methods for employers to file online through either the SCBusiness Online Services (SCBOS) or the SC Automated Tax System (SCATS).

Fringe BenefitsDefinition: A fringe benefit is a form of pay for the performance of

services. For example, you provide an employee with a fringebenefit when you allow the employee to use a business vehicleto commute to and from work.

Are Fringe Benefits Taxable?Any fringe benefit you provide is taxable and must be includedin the recipient's pay unless the law specifically excludes it.

Including taxable benefits in pay. You must include in arecipient's pay the amount by which the value of a fringebenefit is more than the sum of the following amounts.

– Any amount the law excludes from pay.

– Any amount the recipient paid for the benefit.

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Bonus Round• Need to know what date it will be in so many months, weeks,

days, or any future date? Go to www.timeanddate.com

Questions?

“There are no foolish questionsand no man becomes a fool untilhe has stopped askingquestions.”― Charles Proteus Steinmetz

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Contact Information

Mardi Valentino

Director of Human Resources

City of West Columbia

P.O. Box 4044

West Columbia, SC 20171-4044

803.939.8603 (office)

mvalentino@westcolumbiasc.gov