Year End Payroll Webinar. November/December 2012

Transcription

1 Year End Payroll Webinar November/December 2012

2 Introductions Who is on the Call Today Parish Operations Service Center Patrick Denning Payroll Coordinator Steven Munoz Accounting Supervisor Lauren Jennings Design & Training Specialist IOI Payroll Jenny Wise Parishes and Schools Based on Registration Data

3 2012 Year End Payroll Webinar Agenda Introductions Year End Processing Concerns Priest Automobile Insurance Priest Self-Employment Tax Reimbursement Group Term Life Insurance Bonuses & Gifts Ongoing Payroll Administration Matters Tax Status for Lay, Religious, and Priests Review of essential data items Open Line for Q&A / Wrap Up

4 Priest Automobile Insurance Premiums Coverage on one automobile provided through the Archdiocesan group plan or parish. Annual premium is a taxable benefit for each participating priest and must be included in their W-2 on IOI Payroll Taxable value for the premium is $1,050. Notify & consult with participating priests. Process YTD adjustment on IOI Payroll for the amount of the premium coverage. Use Earnings Code PCAR Priest Auto Ins.

5 Priest Self-Employment Tax Reimbursement (SETax) Policy 1400 Priests are required to participate in and pay Social Security Self-Employment Tax. Policy 1200 Archdiocese of Chicago reimburses priests for a portion of the Social Security tax incurred by a priest due to his Archdiocesan assignment. The tax reimbursement amount is noted on the form completed by the priest found on the HR or Parish Operations website.

6 Priest Self-Employment Tax Reimbursement (SETax) The SETax reimbursement on the IOI payroll to be reported on the priest W-2 Form DO NOT process through accounts payable or in QuickBooks (If already done so, then must included in IOI as a YTD adjustment). On IOI use Earnings Code SETX SETAX

7 Group Term Life Insurance Employer provided Group Term Life (GTL) insurance coverage is a taxable benefit if the coverage exceeds $50,000. The taxable amount will be included on the Year End Employee spreadsheet, based on: Annual salary (cumulative total for those working at > 1 location) Birth date If the employee was hired in 2012, You must pro-rate the GTL based on the number of months with life insurance benefit greater than $50,000, eg, hired in July, the GTL should be half.

8 Group Term Life Insurance Verify the amount on the spreadsheet that HR will provide. Process the taxable benefit in IOI using Earnings Code GTL. If the employee is terminated or is not receiving a check before the end of the year, this must be put through IOI as a YTD adjustment. Contact IOI for further information.

9 Pay Bonuses and Gifts Through IOI Payroll Only Bonuses & Gifts to employees should NEVER be paid in cash, accounts payable checks, or QuickBooks. If processing with the normal IOI biweekly payroll, then process as separate checks under IOI Paycheck Options by saving check #1 and then creating check #2 with Earnings Code BONU Bonus. If processing separate payroll run, then process on the IOI Payroll on a separate day from the normal biweekly payroll. Review the payroll when delivered and contact IOI or Accounting Services with any required changes or corrections as soon as possible.

10 Retirement Plan Checkbox on Form W-2 Box 13, Retirement Plan box will be checked if either of the following are applicable: 1. The employee was benefits eligible for any part of the year and they therefore received employer contributions in the Archdiocesan retirement plan (Share Plan contributions in the 403(b)). 2. The employee made contributions to the 403(b) plan at any time of the year. Participation in the Archdiocesan retirement plan at any parish/school/agency will trigger this box being checked at ALL locations and on all W-2s issued. The 2012 W-2 will have an added box 20a. This box will show the value of the health insurance benefit provided to the employee during 2012 as required under the Affordable Care Act. HR is working with IOI to populate this field.

11 Tax Set Up for Employee Categories Lay and Religious Employees, Archdiocesan Priests, and Extern Priests Lay employees Tax Status of Fully Taxable Exemptions per completed W-4 Archdiocesan Priests and Diocesan Externs FICA / MHI Tax Exempt No withholding for Social Security and Medicare taxes. Exemptions per completed W-4

12 Tax Set Up for Employee Categories Religious Order Priests, Brothers, Sisters Religious Order employees Tax Exempt, No 1099 Review YTD information should have only: Positive YTD Earnings NO YTD Taxable Earnings (blank) NO YTD Tax Withholding (blank) Rare exceptions Incardinating religious order priests Priests, sisters, brothers from certain unique religious orders or some extern religious order priests These situations must be evaluated case-by-case in coordination with the Office for Religious/Legal/HR

13 Review of Critical Information Common errors on Name, Address, and SSN: Nicknames, periods after the middle initial, not using hyphens or spaces with compound names, not reporting name changes by the employee. Reminder on Employee Name Changes: If an employee changes their name, ask to see their new SSA card. Don t change their name on payroll until they have changed it with SSA.

14 Employee SSN Review Employees - Review SSN, Name, and Address: SSN s on paychecks for a brief period of time. Check stub message or other notification, such as a memo, for the employee to review. Employer - Review the SSN, Name, and Address: Turnaround Journal Report or through IOIPay screens.

15 Essential Payroll Data Elements Payroll Status Examples of Inactive Substitute Teachers who are not continuously scheduled Teachers not paid during the summer Examples of Leave Medical leave of absence Location Hire Date / Termination Date employment at your location

16 Year-End Calendar Dates Contact Patrick for the scheduling of the Christmas bonus payroll run no later than December 18 th. December 27 th is the last date to make changes to an employee s W-2 information before charges may be applied. Watch for s from Patrick for payroll processing deadlines for payrolls on December 21 st & January 4, 2013.

17 Payroll Forms on Parish Operations Webpage Payroll forms can be downloaded and printed from the Parish Operations webpage at Departments/Parish Operations/Service Center & Training/Procedures, Forms, Materials including: 2013 Bi-Weekly Pay Date Calendar IOI Client Access Form SETax Reimbursement Form Priest Auto Insurance Letter Bonus Request Form 2012 Year End Payroll Webinar Slides (password: archdiocese1) And more

18 Benefits of Going Self-Service Works directly with IOI online Eliminates faxing information to the Accounting Services Center or calling into IOI Manage your own time and set your own deadlines Majority of parishes find Self Services easy IOI will provide training and support Let us know ASAP by ing Patrick Denning or call IOI to assist with the transition

19 Benefits of Going Paperless Going green is eco-friendly Eliminates potential IOI delivery charge for printed reports Real time on-line access to all reports which can be printed or saved as a PDF locally Reduces maintenance of paper reports locally If interested submit the Client Access Authorization form to IOI pay and you paper reports will be turned off automatically!

20 Summary of Key Points Review and execute year end payroll processing procedures. Be conscious of the ongoing payroll administration matters. Visit the Parish Operations payroll webpage and the Human Resources website for forms and additional information regarding year end payroll procedures. Contact IOI, Human Resources or Patrick Denning with any further payroll questions.

21 Update on Next Training Classes 1099 & Accounting Review Webinars December 12 th 10:00 AM December 13 th 1:00 PM Interim Report Webinars coming in January 2013! Check the training calendar and look for s regarding both of these upcoming webinars

22 Q&A What questions do you have? What feedback do you have? Open line we will remain on the line for questions. If you are leaving us now Thanks for joining us.

23 2012 Year End Payroll Webinar Thanks for joining us today.