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

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

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

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

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

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

8. Research proper taxation
The Fix
Research proper taxation
FIT/SIT/FUTA
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

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

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

11. Understand/Know deadlines and rules
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

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

15. Recommendations Recommendations Why? 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

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

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

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

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

20. Process Map – Address Change

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

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

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

24. Common misconceptions Does it really make a difference?
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!

25. All earnings to be included
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

26. 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?

27. 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

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

29. Create a plan/checklist Create a team Where you can find help
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

30. 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

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

32. Thank You!