WAGE AND TAX STATEMENT CORRECTIONS(W-2c)

WAGE AND TAX STATEMENT CORRECTIONS(W-2c)
INDIANAPOLIS PAYROLL OFFICE Integrity - Service - Innovation

Integrity - Service - Innovation
AGENDA TAXABLE INCOME CODES EARNINGS SUBJECT TO WITHHOLDINGS EMPLOYER CONTRIBUTIONS PAY CALCULATIONS CALCULATION EXAMPLES FORM W-2, WAGE AND TAX STATEMENT YEAR TO DATE SCREEN VERSUS W-2 9/16/2018 Integrity - Service - Innovation

AGENDA LES VERSUS W-2 CORRECTED WAGE AND TAX STATEMENT A CORRECTED W-2 IS REQUIRED NAME CHANGE REQUEST MOST COMMON ‘NAR’ REMEDY TICKETS MOST COMMON QUESTIONS WEBSITES QUESTIONS 9/16/2018 Integrity - Service - Innovation

TAXABLE INCOME The Internal Revenue Service Publication 15 Circular E states “Wages subject to federal employment taxes generally include all pay you give to an employee for services performed. The pay may be in cash or in other forms. It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. It does not matter how you measure or make the payments.” 9/16/2018 Integrity - Service - Innovation

CODES The following codes are reported on the W-2 Earnings Subject to VC – Federal Taxes VD – State Taxes (if applicable) VE – Local Taxes (if applicable) VF - Medicare VI – OASDI (if applicable) Maximum $118,500.00 Withholdings WB – Medicare WD – Fed Taxes WE – State Taxes (if applicable) WF – Local Taxes (if applicable) WM - OASDI (if applicable) Maximum $7,347.00 XV - TSP 9/16/2018 Integrity - Service - Innovation

EARNINGS SUBJECT TO ASK SUPPORT IF THEY HAVE NEW CHART 9/16/2018 Integrity - Service - Innovation

WITHHOLDINGS ASK SUPPORT IF THEY HAVE NEW CHART 9/16/2018 Integrity - Service - Innovation

EMPLOYER CONTRIBUTIONS
ASK SUPPORT IF THEY HAVE NEW CHART 9/16/2018 Integrity - Service - Innovation

PAY CALCULATIONS WA (CSRS Employees) Retirement Code “1” 7% of earnings Not subject to deductions for OASDI WA (CSRS OFFSET Employees) Retirement Code “C” Regular Employee: 7% of subject to CSRS less OASDI rate Law Enforcement Officer, Firefighter, Congressional Employee: 7.5% of subject to CSRS less OASDI rate Congress, US Magistrate, Military Appeals or Bankruptcy Judge: 8% of subject to CSRS less OASDI rate When maximum OASDI deduction is met, deduction rate reverts to full CSRS employee withholding rate (7, 7.5, or 8 percent). WB Medicare 1.45% less than $200,000.00 0.90% additional over $200, (total of 2.35%) CSRS Offset employee: Generally, an employee having five or more years of CSRS coverage prior to Jan. 1, 1984, a break in service exceeding 365 days, and was rehired by the government following the break (after Dec. 31, 1983) 9/16/2018 Integrity - Service - Innovation

PAY CALCULATIONS (Con’t)
WD Fed Taxes Utilize 80 hour pay history Verify the hourly rate hasn’t changed from MER Verify filing status and exemptions have not changed Use the Federal Tax amount from Pay history WE State Taxes Use the State Tax amount from Pay history WF Local Taxes Use the Local Tax amount from Pay history 9/16/2018 Integrity - Service - Innovation

PAY CALCULATIONS (Con’t)
WM OASDI Percentage varies % % Verify employee does not exceed MAX (7,347.00) WB MEDICARE % 2013 & Less than $200, % Over $200, additional .90% Percentage based items should balance with the Subject to tax (V code) 9/16/2018 Integrity - Service - Innovation

CALCULATION EXAMPLES CALCULATION 9/16/2018 Integrity - Service - Innovation

FERS RETIREMENT CODE ‘K’ Example
A regular ungraded employee is a WG 03 Step 01. The MER scheduled rate is $9.62 per hour with AWS code 0. The hours reported are 80 regular hours, 16 hours Sunday worked, 80 hours third shift, and 16 hours of environmental worked. GROSS PAY Biweekly/ Week Week Pay Details Regular Pay RA Shift Differential ZH Sunday Premium ZE Environmental FBR Overtime OZ Total Biweekly Earnings AA 9/16/2018 Integrity - Service - Innovation

FEDERAL TAX (see page 45 table 5 for exemption & allowance amounts) Gross Wages Less FEHB Less TSP Deduction Wages Subject to Federal Tax VC Calculation - Married and one exemption (M-1) Biweekly subject wages annualized: x ,637.90 Less annual withholding allowance amount -4, x ,000.00 19,637.90 Less annual allowance amount from ,600.00 11,037.90 Applicable percentage from the tax package x .10 Annualized tax ,103.79 Biweekly Deduction , / 26 = WD 9/16/2018 Integrity - Service - Innovation

Medicare 1.45% Wages Subject to Medicare Gross Amount RA WG = VF Medicare Employee Deduction Amount x = WB Medicare Employer Contribution Amount x = UF 9/16/2018 Integrity - Service - Innovation

FERS K .80% Wages Subject to FERS RA VG FERS Employee Deduction Amount x = WP FERS Employer Contribution Amount x = UC OASDI 6.20% Wages Subject to OASDI Gross Amount RA WG = VI OASDI Employee Deduction Amount x = WM OASDI Employer Contribution Amount x = UJ Gross Amount as mention on Slide 15 9/16/2018 Integrity - Service - Innovation

TSP/ROTH 2016 Current Codes showing in Box 12 D – Elective deferral to 401(k) plan includes Traditional TSP (XV) & CUC (JV) only. Deferred TSP & CUC contributions are NOT Taxable Codes showing in Box12 for 2016 W2 AA – Roth regular (JR) + Roth CUC (JW) designated under 401(k) plan. DD – Cost of employer sponsored health coverage - this is for information purposes only; this cost is NOT Taxable Includes UO prepaid FEHB 9/16/2018 Integrity - Service - Innovation

TSP/ROTH 2016 LIMITS Traditional Pre Tax TSP (XV) + After Tax Roth (JR) = $18,000 Traditional Pre Tax CUC (JV) + After Tax Roth CUC (JW) = $6,000 Total Combined Traditional + Roth = $24,000.00 9/16/2018 Integrity - Service - Innovation

FORM W-2, WAGE AND TAX STATEMENT
A required form provided by every employer who pays for services performed by an employee The official form for reporting the amount of earnings subject to and withholdings for Income, Social Security, or Medicare tax. 9/16/2018 Integrity - Service - Innovation

FORM W-2, WAGE AND TAX STATEMENT
9/16/2018 Integrity - Service - Innovation

YEAR TO DATE SCREEN VERSUS W-2
BOX 1 WD TAX FEDERAL VC SBJ FED TAX BOX 2 9/16/2018 Integrity - Service - Innovation

VI SBJ OASDI WM OASDI BOX 3 BOX 4 9/16/2018 Integrity - Service - Innovation

BOX 5 VF SBJ MDCR WB MEDICARE BOX 6 9/16/2018 Integrity - Service - Innovation

BOX 12 VP FEHB/EYR PTX BOX 12 XV TSP SAVINGS 9/16/2018 Integrity - Service - Innovation

BOX 14 K JF DENTAL + JG VISION BOX 14 V WG FEHB 9/16/2018 Integrity - Service - Innovation

BOX 16 BOX 17 VD SBJ ST TAX WE TAX, STATE 9/16/2018 Integrity - Service - Innovation

NAME AND SSN MATCHING MISC/ADDRESS/NET CHECK AND ALLOTMENT SCREEN
MIS/ADDRESS/NET CHECK Box a Box e Box e MIS/ADDRESS/NET CHECK 9/16/2018 Integrity - Service - Innovation

LES VERSUS W-2 BOX 1 TAXABLE WAGES TAX FEDERAL BOX 2 9/16/2018 Integrity - Service - Innovation

LES VERSUS W-2 BOX 3 GROSS PAY – NON TAXABLE WAGES OASDI BOX 3 BOX 4 9/16/2018 Integrity - Service - Innovation

LES VERSUS W-2 BOX 5 BOX 5 GROSS PAY – NON TAXABLE WAGES MEDICARE BOX 6 9/16/2018 Integrity - Service - Innovation

LES VERSUS W-2 BOX 12 DD FEHB–EMPLOYEE + EMPLOYEER CONTRIBUTION BOX 12 D BOX 12 DD TSP SAVINGS 9/16/2018 Integrity - Service - Innovation

LES VERSUS W-2 BOX 16 BOX 17 VD SBJ ST TAX WE TAX, STATE 9/16/2018 Integrity - Service - Innovation

LES VERSUS W-2 BOX 14 V DENTAL + VISION BOX 14 K FEHB BOX 14 K 9/16/2018 Integrity - Service - Innovation

CORRECTED WAGE AND TAX STATEMENT
A W-2c is a correction to the original wage and tax statement. The original W2, used to report wages and taxes paid, reflected incorrect information that was reported to the Internal Revenue Service (IRS). A copy of the W-2c is provided to the employee, IRS, State and Local taxing authorities once completed. 9/16/2018 Integrity - Service - Innovation

A CORRECTED W-2 IS REQUIRED
ADS Special Pay Voucher processed after pay closes for final pay period of the year but before first day of the new tax year. Debts Check payment received after final has ran for the year but before the beginning of the new tax year. Cancelled check was either not processed, or processed incorrectly, and the employee’s year to dates are incorrect. A waiver was approved for a debt that was created in the current year. TSP The Defense Civilian Payroll System (DCPS) allowed the employee to contribute over the limit in the last pay period of the year. The difference is refunded within the new tax year but is counted as taxable income in the previous tax year. With the exemption of Overseas Debts (Hi VIS) when received a request for a w2 correction for ADS, Debt and TSP please forward Remedy to Support Team 9/16/2018 Integrity - Service - Innovation

A CORRECTED W-2 IS REQUIRED (Con’t)
Processing To Correct Social Security Number or Employee’s Name Update monies earned under pseudo appointments not linked in DCPS Correct overpayment on subject to OASDI, OASDI deduction and erroneous refund of OASDI Agency LOA of accounting is used Reflects only what has been paid Debt team uses “XX” to collect thru debt module or manual collection of “WM” if applicable 9/16/2018 Integrity - Service - Innovation

A CORRECTED W-2 IS REQUIRED (Con’t)
For adjustments not systemically handled by DCPS For example, VSIP not subject to Alabama and Georgia State Tax Reducing Earnings Subject to Massachusetts State Taxes 9/16/2018 Integrity - Service - Innovation

NAME CHANGE REQUEST Scenario: CSR submits Remedy ticket and states that the Employee’s 2015 W-2 reflects incorrect spelling of his name. The W-2 reads: DONNE DAVID LE 9/16/2018 Integrity - Service - Innovation

NAME CHANGE REQUEST MER reads: LE DONNE DAVID To prevent future W2 correction, Personnel need to Process the name without space or insert a hyphen 9/16/2018 Integrity - Service - Innovation

MOST COMMON NON ACTION REMEDY TICKETS
Requests for state tax corrections (Exception- State of GA & AL provides a maximum $25k tax exclusion for severance and VSIP payments) It’s the employee’s responsibility to ensure his/her state tax election is correct. Employee believes W2 is incorrect because they are not subtracting the pretax earnings from their Gross pay to obtain their subject to earnings for IRS. Debt repayments for prior year TurboTax informs employee that OASDI/Medicare are overstated. 9/16/2018 Integrity - Service - Innovation

MOST COMMON QUESTIONS 9/16/2018 Integrity - Service - Innovation

HOW DO I ADD/CHANGE/REMOVE STATE TAXES?
From CSR Main Menu Select Employee Data Menu, then Taxes (Federal/State/Local/AEIC) Employee’s Social Security Number Effective date State Taxes you can only use beginning day of current tax year NOTE : Detail information on every field can be found on CSR Manual Section D Chapter 2 Employee Data under Taxes (Federal/State/Local) Title 9/16/2018 Integrity - Service - Innovation

ADD 000 00 0000 R= RESIDENT, N= NON RESIDENT, X= RESIDENT THAT WORK OUTSIDE OF THE CITY, CALCULATED AS NON RESIDENT 9/16/2018 Integrity - Service - Innovation

CHANGE 9/16/2018 Integrity - Service - Innovation

DELETE 9/16/2018 Integrity - Service - Innovation

MOST COMMON QUESTIONS Can I correct taxes retroactively? You are only allowed to change taxes within the current pay period for both Federal and State Taxes Use “C” for change and overwrite information What is the employee authorized to change in MyPay for Taxes? Employee can add, change or delete Federal taxes Marital Status, Exemption, Additional amount State taxes 9/16/2018 Integrity - Service - Innovation

MOST COMMON QUESTIONS What is the employee unable to process in MyPay for Federal Taxes? File Advanced Earn Income Credit File Exempt from Federal Tax Withholding Claim more than 10 Exemptions Note: If employee needs any of the above Federal Tax Changes, they need to contact their local Customer Service Representative (You) 9/16/2018 Integrity - Service - Innovation

MOST COMMON QUESTIONS The employee is not allowed to process the following within MyPay for State Taxes File the initial state Withholding form File exempt from state Withholding If Geographical location code (duty Station) and state of residence are the same, employee will not be able to stop state tax deductions. Add a third state as the employee can only file two The employee is not allowed to process the following within MyPay for Local Taxes Add/delete/ change Please contact their local Customer Service Representative Does DCPS automatically update State Taxes when an employee moves? No. Employee is required to update their information through their local Customer Service Representative or MyPay 9/16/2018 Integrity - Service - Innovation

MOST COMMON QUESTIONS How is Locality Tax information added in DCPS? Please complete the New/Change Tax request form and send it via Fax to DFAS Columbus Call Center (CCC) Fax number (216) Can DCPS provide a hard copy W2? Yes, if the W2 hard copy is not Turned off in MyPay Employee can update their election in MyPay 9/16/2018 Integrity - Service - Innovation

MOST COMMON QUESTIONS What Is MSRRA and how does it work? On November 11, 2009, the Military Spouses Residency Relief Act (MSRRA) was enacted to extend certain protections to military spouses. Pursuant to the MSRRA, a military spouse who is present with a member in a particular State under military orders does not have to pay State income taxes on wages earned in that State as long as that State is not the spouse’s legal residence or domicile. The MSRRA does not allow a spouse to pick or choose a domicile in any State. Rather, domicile is established, which means that the spouse must have actually been present in the State, established it as his or her domicile, and maintained it by forming and maintaining the necessary contacts, such as registering to vote, owning property, registering vehicles, or indicating a State of probate in a last will and testament. Members and their spouses may seek free, confidential advice from a military legal assistance office if they have any questions. 7 States without state taxes, Florida, Alaska, Texas, North Dakota, Wyoming, New Hampshire and Tennessee 9/16/2018 Integrity - Service - Innovation

EXAMPLE #1 Employee claims a non – taxable State as the State of legal residence and is working in a non – Taxable State. No action is required Example: Employee claims Florida as the State of legal residence and is working in Texas, no action is required 9/16/2018 Integrity - Service - Innovation

EXAMPLE #2 If an employee claims a taxable State as the State of legal residence and is working in a non-taxable State, no action is required with regard to the State in which the employee is working. Example: Employee claims Indiana as the State of legal residence and is working in Texas. No action is required since no taxes will be withheld for Texas. No State income taxes will be withheld from the employee’s pay, unless the employee requests that taxes be withheld for Indiana. 9/16/2018 Integrity - Service - Innovation

EXAMPLE #3 If an employee claims a taxable State as the State of legal residence and works in a taxable State: Delete the state of employment State tax record. A State tax deduction record should be created if the employee requests that income taxes for the State of legal residence be withheld from the employee’s pay. Ensure proper effective date is used (beginning of pay year). Example: Employee transfers from Indiana to California. Delete the Indiana tax record. A State tax record for California should be created if the employee requests that California income taxes be withheld from the employee’s pay. 9/16/2018 Integrity - Service - Innovation

EXAMPLE #4 If the employee claims a non-taxable State and is working in a taxable State, Delete the existing line and then Add a new line. Input all fields on the new line, while adding an “N” in the State Tax Status field. Do not press enter until both lines have been entered. After pressing enter once, the user will be prompted to certify the change by entering their DCPS user id. Press enter again to finish processing the transaction. Example: 9/16/2018 Integrity - Service - Innovation

WEBSITES Internal Revenue Service – OASDI/MEDICARE Department of Defense Federal Management Regulation (DoDFMR) Volume 8 Chapter 4 TSP – max amount allowed to pay into TSP 9/16/2018 Integrity - Service - Innovation

W2c TRAINING QUESTIONS? 9/16/2018 Integrity - Service - Innovation

WAGE AND TAX STATEMENT CORRECTIONS(W-2c)

Similar presentations

Presentation on theme: "WAGE AND TAX STATEMENT CORRECTIONS(W-2c)"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

WAGE AND TAX STATEMENT CORRECTIONS(W-2c)

Similar presentations

Presentation on theme: "WAGE AND TAX STATEMENT CORRECTIONS(W-2c)"— Presentation transcript:

Similar presentations

About project

Feedback