Audit Processes

processes.html

You can run audit processes via the Payroll Audit Process screen (PR0121UG)

Some of the audit processes are automatically ran when…

you activate a person on the Student Employee Setup screen (PR0021UG)  Nonresident Alien (NRA)  NRA Earnings from 1042-S to W-2  Exempt W-4 Verification  MW-R Verification  FICA/Medicare Requirements

input or approve a work authorization on the Student Employee Work Authorization Entry screen (PR0024UG ) NRA Work Eligibility Minimum Registration Requirements Financial Aid/Max Earnings Restrictions Wage Control Expended

during the balancing process  Taxable Benefit

during the processing of final payroll on the Payroll Processing screen (PR0111UG) FICA/Medicare Requirements Tax Residency Verification (only last payroll of CYR) NRA NRA Earnings from 1042-S to W-2 Exempt W-4 Verification (Feb. 15 th payroll) MW-R Verification (Feb. 28 th payroll)

If the audit reason is a WARNING, then the audit problem requires user intervention. If the audit reason is INFO, then a cleanup type function has been performed, for example, work authorization inactivation. The result is for informational purposes, and no further user intervention is required.

Abbreviations Nonresident Alien = NRA Calendar Year = CYR

Taxable Benefit – State Univ. Only This audit process verifies that the amount that has been applied for Award ID (Grad Assist Tuit Waiver-Taxable) isn’t less than the total amount that has been taxed (distributed amount) for the calendar year. This includes the amount that will be distributed to the pay period that you are currently balancing. You cannot run this audit process. It is automatically ran when you complete the payroll balancing process on the Balancing Authorized Hours screen (PR0103UG) or Routing ID Balancing screen (PR0104UG). Audit Reason = Warning – user action required You will not be able to balance the Routing ID until the audit result is resolved. You cannot process final payroll until all Routing IDs are balanced. How do you resolve? Review and modify the taxable benefit on the Taxable Benefit Entry screen (PR0026UG). Then re-balance the Routing ID.

Nonresident Alien (NRA) This audit process verifies the following items on NRA employees:  The NRA has a country of citizenship recorded on the International Demographic and Passport Update screen (PS3001UG).  The NRA has Visa info. on the PS3001UG screen.  Determines the federal and state tax status based on treaty eligibility.  Looks for citizenship changes on the PS3001UG screen – from NRA to a different citizenship status. You cannot run this audit process. It is automatically ran when you activate an employee on the Student Employee Setup screen (PR0021UG) and during the final payroll process. Audit Reason = Warning/Informational Warning – user action required NRA will be set to audit or inactive status on PR0021UG. How do you resolve?  No country of citizenship then enter country on PS3001UG.  No Visa info. then enter Visa info. on PS3001UG.

Warning – user action required NRA will be set to audit or inactive status on PR0021UG. How do you resolve? NRA who has a future tax residency year  NRA federal & state exempt but country doesn’t have a treaty then add a W-4 record with appropriate tax status (non-exempt).  NRA federal & state exempt & covered under treaty but gross earnings >= treaty’s maximum compensation then add a W-4 record with appropriate tax status (non-exempt).  NRA federal & state exempt & covered under treaty but doesn’t have 8233 Form on file then either get the 8233 Form on file for the NRA to remain exempt or add a W-4 record with appropriate tax status (non-exempt).  Citizenship change from NRA to anything else then you will need to add a W-4 record with appropriate tax status.

Informational – no user action required  NRAs who have a future tax residency year & are covered under a treaty & 8233 Form on file but non-exempt W-4 record then the system will add an exempt W-4 record. The following is only ran during the final payroll process of the last check of the calendar year (CYR) Informational – no user action required  NRAs who have a future tax residency year & are covered under a treaty & have the Next CYR 8233 field checked on the PR0021UG screen then…. - the system will input the next CYR in the 8233 Year field & will delete the check mark in the Next CYR 8233 field. -the system will input a new exempt W-4 record For example, for CYR 2005 during the processing of final payroll for PPE 12/13/2005, 2006 will be inputted into the 8233 Year field & an exempt W-4 record will be added with an effective date of 12/14/2005.

Warning – user action required – will be put in audit status on PR0021UG How do you resolve?  NRAs who have a future tax residency year & are covered under a treaty but the Next CYR 8233 isn’t checked then either get a 8233 Form on file or add a W-4 record with appropriate tax status (non-exempt).  NRAs who have a tax residency year = next CYR & are currently exempt but they don’t have a W-4 record for next CYR then add a W-4 record with appropriate tax status.

NRA – Earnings Changed from 1042-S to W-2 This audit process verifies NRA data for student employees after final payroll has been processed but prior to tax forms being printed. It looks for changes that would cause the employee’s earnings to be reported on a W-2 Form versus a 1042-S Form. The process looks for changes on the:  Citizenship Maintenance screen (PS0016UG) - for example, citizenship changes from NRA to resident alien. Was never a NRA.  International Demographic and Passport Update screen (PS3001UG) – for example, country of citizenship changed to a country that doesn’t have a treaty.  Student Employee screen (PR0021UG) – for example, 8233 year deleted. You cannot run this audit process. It is automatically ran when you activate an employee on the Student Employee Setup screen (PR0021UG) and during the final payroll process.

Audit Reason = Informational – no user action required If you have your address setup for Program ID PR0121CB on the Error Addresses screen (UT3020UG) then you will receive an notification if any employee has been changed to a W-2 Form.  NRAs who have a future tax residency year, if a change has been made so the NRA is no longer 1042-S eligible (for example, 8233 Year deleted) then the system will change the earnings to a W-2 Form.  NRA who has 1042-S earnings but the tax residency year has been changed to a prior or current CYR then the NRA is no longer 1042-S eligible, the system will change the earnings to a W-2 Form.

NRA – Work Eligibility Optional - this audit process is available when the Required radio button is selected under the Nonresident Alien – Work Eligibility field on the Payroll Controller screen (PR0001UG). This audit process verifies that the NRA’s work authorization start and end dates are within the NRA’s work eligibility start and end dates, which are maintained on the International Demographic and Passport Update screen (PS3001UG). Also, an informational message will be given if the NRA’s work eligibility end date will expire within the next 30 days. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this before printing the timesheets. It is also ran for you when you approve a work authorization on the Student Employee Work Authorization Entry screen (PR0024UG).

Audit Reason = Warning/Informational Warning – user action required For work authorizations that aren’t within the work eligibility dates, the work authorization will be set to audit or inactive status. How do you resolve? Either modify the work authorization dates or modify the work eligibility dates. Informational – no user action required For work eligibility dates that will expire within the next 30 days, the system will give you informational messages so you can work on extending the work eligibility dates or so you know that the NRA will be ending employment soon.

NRA – Tax Residency Verification This process verifies that NRAs who have a tax residency year equal to the next CYR have a new W-4 record on file for the next CYR. NRAs who have a current CYR exempt W-4 record will be required to have a new W-4 record for the next CYR on the first check of the next CYR. Once the NRA’s tax residency year is equal to or prior to the current CYR then the NRA becomes a resident alien for tax purposes. This audit process finds the NRAs who will reach this status in the next CYR. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this in November through December (before the last paycheck of the CYR). You should continue to run this until all NRAs have a new W-4 record on file. Audit Reason = Informational – no user action required The system will give you an informational message that there isn’t a W-4 record on file for the next CYR. Have the student fill out a new W-4 & record the info. on the Student Employee Setup screen (PR0021UG).

NRA – 8233 Verification This process verifies that treaty eligible NRAs have an 8233 Form on file for the next CYR. The 8233 Form for the next CYR will be required on the first check of the next CYR. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this in November through December (before the last paycheck of the CYR). You should continue to run this until all treaty eligible NRAs have a 8233 Form on file for the next CYR. Audit Reason = Informational – no user action required The system will give you an informational message that there isn’t a 8233 Form on file for the next CYR. Have the student fill out a new 8233 Form & record the info. on the Student Employee Setup screen (PR0021UG).

Expired Work Authorizations This audit process searches for expired work authorizations on the Student Employee Work Authorization Entry screen (PR0024UG). You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this after the final payroll process. Audit Reason = Informational – no user action required If the system finds any active/approved work authorizations that have expired, the system will inactive these work authorizations.

Expended Work Authorizations This audit process searches for work authorizations on the Student Employee Work Authorization Entry screen (PR0024UG) where the expended amount is equal to or exceeds the maximum amount. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this after the final payroll process. It is also ran for you when you approve a work authorization on the Student Employee Work Authorization Entry screen (PR0024UG). Audit Reason = Warning – user action required The work authorization will be set to audit status. How do you resolve? If appropriate, increase the maximum amount to an amount greater than the expended amount.

Wage Control – Work Authorization This audit process verifies that the work authorization's pay rate is within the min/max ranges defined on the Wage Controller screen (PR0006UG). You run this audit process via the Payroll Audit Process screen (PR0121UG). You shouldn’t have to run this audit very often. You should run it whenever the minimum/maximum pay rates have been modified on the Wage Controller Screen (PR0006UG). It is also ran for you when you input a work authorization on the Student Employee Work Authorization Entry screen (PR0024UG). Audit Reason = Warning – user action required The work authorization will be set to audit status. How do you resolve? Modify the work authorization’s pay rate to fall within the min/max ranges defined for the object code.

Minimum Registration Requirements Optional - this audit process is available when the Required radio button is selected under the Term Enrollment field on the Payroll Controller screen (PR0001UG). This audit process verifies that the student meets the minimum institutional requirements for registered credits defined on the Term Enrollment Rules screen (PR0009UG). The Term Enrollment Rules screen (PR0009UG) is set up by term and object code. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this before printing the timesheets. It is also ran for you when you approve a work authorization on the Student Employee Work Authorization Entry screen (PR0024UG).

Audit Reason = Warning – user action required The student’s active/approved work authorizations will be set to audit status. If the student has been approved to work even though he/she doesn’t meet the credit limits, then there is an override available at the work authorization level on the Student Employee Work Authorization Entry screen (PR0024UG).

Financial Aid/Max Earning Restrictions Optional - this audit process is available when the FA/Max Earnings radio button is selected under the Financial Aid/Max Earnings field on the Payroll Controller screen (PR0001UG). NOTE: This process currently only works for institutions who use the Financial Aid “header” option. This audit process verifies that the total maximum amount from all active/approved and audit/approved work authorizations and the total expended amount from all inactive and unapproved work authorizations for a fy/object code/employee do not exceed the maximum earnings for that specific fy/object code/employee. For work study work authorizations, the process compares the work authorizations to the award amount on the Award Table Maintenance screen (FA0106UG). For non-work study work authorizations, the process compares the work authorizations to the max earnings amount on the Maximum Earnings Entry screen (PR0031UG).

You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this whenever financial aid work study amounts or max earnings records are added, deleted, or changed. It is also ran for you when you approve a work authorization on the Student Employee Work Authorization Entry screen (PR0024UG). Audit Reason = Warning – user action required All active/approved work authorizations for a fy/object code will be set to audit or inactive status. How to resolve? For work study work authorizations, modify the work authorization’s maximum amount or have Financial Aid verify & if appropriate, correct the award amount on the Award Table Maintenance screen (FA0106UG). For non-work study work authorizations, modify the work authorization’s maximum amount or modify the max earnings amount on the Maximum Earnings Entry screen (PR0031UG).

Exempt W-4 Verification This audit process verifies that there is a current CYR W-4 record for employees who have a federal and/or state tax exemption. The CYR W-4 will be required on the first pay period that ends after February 15th. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this January 1 st through February 15 th. You should continue to run this until all students have valid W-4s on file. This audit process will be automatically ran during the February 15 th final payroll process. It is also ran when you activate an employee on the Student Employee Setup screen (PR0021UG). Audit Reason = Informational – no user action required When ran between January 1 st – February 15 th, the system will inform you that there isn’t an exempt W-4 record on file for the current CYR. Have the student fill out a new W-4 Form & enter it in on the PR0021UG screen. When ran during the February 15 th final payroll process, the system will set the employee record (PR0021UG) to a federal & state tax status of Single-0,0.

MW-R Verification This audit process verifies that a current CYR MW-R Form exists for employees who have a residency state other than MN for tax purposes. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended that you run this January 1 st through February 28 th. You should continue to run this until all students have valid W-4s on file. This audit process will be automatically ran during the February 28 th final payroll process. It is also ran when you activate an employee on the Student Employee Setup screen (PR0021UG). Audit Reason = Informational – no user action required When ran between January 1 st – February 28 th, the system will inform you that there isn’t an MW-R Form on file for the current CYR. Have the student fill out a new MW-R Form & enter it on the PR0021UG screen. When ran during the February 28 th final payroll process, the system will set the employee record (PR0021UG) tax state to MN but it will not change the federal and state allowances.

FICA/Medicare Requirements This audit process determines the employee’s FICA/Medicare status on the Student Employee Setup screen (PR0021UG). An employee is FICA/Medicare exempt if he/she meets the minimum requirements for registered credits defined on the FICA and Medicare Tax Schedule Screen (PR0013UG). For NRAs who have a future tax residency year, if a NRA doesn’t meet the minimum registration requirement, then he/she is still exempt from FICA/Medicare. This audit process is automatically ran during the final payroll process and when you activate an employee on the Student Employee Setup screen (PR0021UG). You can also run this via the Payroll Audit Process screen (PR0121UG). When running via PR0121UG, make sure you enter the PPE for the next unprocessed payroll (don’t enter the current PPE date). It is recommended that when you are in the drop/add time period for registration that you run this prior to running the final payroll process. If you do this, you should catch any registration changes.

For example, say when you processed the last payroll the student wasn’t enrolled in enough credits to be exempt from FICA/Medicare so the system set the student as subject to FICA/Medicare. But, in the meantime the student registered for some more credits and is now eligible to be exempt from FICA/Medicare. If you run the audit process, then it should set the student to be exempt. Also, it is very important that you have the correct terms attached to the PPEs on the Pay Period Controller screen (PR0002UG). This is how the system determines which credits to look at. Audit Reason = Informational – no user action required The employee’s FICA/Medicare status on the Student Employee Setup screen (PR0021UG) will be updated. You are able to override the status on the PR0021UG screen with the exception to NRAs who have a future tax residency year, they are always exempt from FICA/Medicare.

System Data Cleanup This audit process automates the cleanup of employee data. As of now, it inactivates employee pay items on the Employee Pay Items Setup screen (PR0022UG) when the special item on the Special Item Maintenance screen (PR0023UG) expires or is paid. You run this audit process via the Payroll Audit Process screen (PR0121UG). It is recommended to run this each term or when warning messages regarding expired or paid special items are noticed on the final payroll process message frame. Audit Reason = Informational – no user action required The system will inactivate the pay items on the Employee Pay Items Setup Screen (PR0022UG).

Clear Prior Audit Results This audit process changes previously unresolved audit results to resolved status. It does not resolve the audit results. This allows you to view only the results of the current audit process on the Audit Results Browse screen (PR0120UG) when you select the unresolved radio button. Caution should be used when running this because it does not resolve the audit result, but just clears it for querying purposes. You run this audit process via the Payroll Audit Process screen (PR0121UG). You would run this whenever the prior audit results are no longer needed. You should resolve all “warning” audits prior to running this audit process. Audit Reason = Informational – no user action required Unresolved results will be changed to resolved status. NOTE: the audit comments will be marked as “Cleared” so you are able to distinguish it from audit results that were actually resolved.

View Audit Results on this screen

View Audit Result for specific employee