1. 1 Zortec Payroll Common Issues and New Features

2. 2 Changes on Employee Information screens

3. 3 Primary Payroll Required field. Used with TCRS Great-West Import. Used when building Affordable Care Act employee file. Utility program available to set flag on Primary Payroll field. Available with UDRs; DDF field #450. General Information

4. 4 G-W Opt Out Used with TCRS Great-West Import. Available with UDRs; DDF field #850. Tax Information screen Member ID Used at TCRS and KY Start retirement agencies. Member ID assigned to employee by retirement agencies. Available with UDRs; DDF field #1340.

5. 5 Ret/Job Date Date employee began job. Does not default from screen 1. Available with UDRs; DDF field #1350. Tax Information screen

6. 6 Valid options: 02-Probationary 03-Seasonal 04-Temporary 05-120 Day Temporary 06-Limited Re-Emp Ret Teacher 07-Interim Tax Information screen Job Stat Position Status field of TCRS reporting. Used to override Full/Part from screen 1, for TCRS reporting. Available with UDRs; DDF field #1360.

7. 7 # Hours Per Day Scheduled Hours Per Day field of TCRS file. Available with UDRs; DDF field #1370. Contract Months Contract Months field of TCRS file. Should be 9, 10, 11 or 12. Available with UDRs; DDF field #1365. Tax Information screen

8. 8 Valid options: 02-Leave Without Pay 09-Furlough 11-Summer Months Pay Reason Used to override payment reason from pay types in TCRS file. Available with UDRs; DDF field #1375. Tax Information screen

9. 9 Detour to discuss Other Payment Reasons – Office Manager, Pay Types, Pay Code field

10. 10 TCRS Concord options: 00-Regular Pay 01-Regular Pay w/Addtl Credit Comp 02-Leave w/o Pay 03-Bonus 08-Sick Leave Bank Payment 13-Career Ladder Payment 14-Longevity 15-Summer School Bonus Payment Reasons - Office Manager, Pay Types, Pay Code field KY START options: 00-Regular Pay 01-Regular Pay w/Addtl Credit Comp 02-Leave w/o Pay 03-Bonus/Severance 06-Lump Sum Comp Payment

11. 11 Valid options: 01-Monthly Alt Pay Type Used to override ‘S’alary or ‘H’ourly in TCRS file. Available with UDRs; DDF field #1380. When used, Rate of Pay and Salary in TCRS file will be the same. Tax Information screen

12. 12 End Date End Employment Date field in TCRS Concord file. If employee changes positions that require reporting to TCRS, report the date. Does not default from Term Date on screen 1. Available with UDRs; DDF field #1390. Tax Information screen

13. 13 Valid options: 01-Retirement 02-Death 03-Termination 04-Change in Position Status 05-Transfer (End) Employment Reason End Employment Reason in TCRS Concord file. Represents general reason member terminated, changed contribution group or position status. Available with UDRs; DDF field #1385. Tax Information screen

14. 14 Utility programs  Set Primary Payroll  Set retirement fields Contract Months Hrs Per Day Service Credit Alt Pay Type Job Status G-W Opt Out

15. 15 Setup and program options for Great-West

16. 16 Deduction codes  TCRS Hybrid Deduction Type  TCRS/Great-West 401k program 1-Before Tax Deduction 2-After Tax Deduction 3-Roth IRA Deduction 4-Age Catch-Up Deduction 5-Roth Catch-Up Deduction 6-401k Variable Bonus Deduction 7-Roth Variable Bonus Deduction 8-Variable Bonus Employee Catch-Up Deferral 9-Variable Longevity Deduction 10-Roth Variable Longevity Deduction 11-Variable Longevity Emp Catch-Up Deferral 12-Loan Payment Deduction 13-Employer Contribution

17. 17 Deduction codes  TCRS Hybrid Deduction Type  TCRS/Great-West 457 program 51-457 Before Tax Deduction 52-457 After Tax Deduction 53-457 Roth IRA Deduction 54-457 Age Catch-Up Deduction 55-457 Roth Catch-Up Deduction 56-457 401k Variable Bonus Deduction 57-457 Roth Variable Bonus Deduction 58-457 Variable Bonus Employee Catch-Up Deferral 59-457 Variable Longevity Deduction 60-457 Roth Variable Longevity Deduction 61-457 Variable Longevity Emp Catch-Up Deferral 62-457 Loan Payment Deduction 63-457 Employer Contribution

18. 18 Option #6-Period End Process from Payroll main menu Followed by option #10-Retirement Tape and Report from Period End Process menu

19. 19 Option #7-Build Great-West PDI File to build the file that will be sent to Great-West. Enter valid Check Date. Select appropriate plan file being built. File lands in user’s home directory. File for 457 plan will be in format ‘#####-01_pDDDDccmmdd.prn’ File for 401k plan will be in format ‘####-02_pDDDDccmmdd.prn’

20. 20 Option #8-Print Great-West PDI File to print report from previous build process. Enter valid Check Date for file previously built. Select appropriate plan file being built.

21. 21 Miscellaneous Topics  Medicare Gross exceeds $200,000 Employee rate additional.09% Employer rate does not change  Online Check Stub files  Employee email address Screen 31 of employee information

22. 22 Common utilities used at beginning of new FY  Change Amount on Deductions  Mass Pay Rate Increase

23. 23 Affordable Care Act

24. 24 Affordable Care Act  The Affordable Care Act added section 6056 to the Internal Revenue Code, which requires applicable large employers to file information returns with the IRS and provide statements to their employees about the health insurance coverage the employer offered. (Forms 1094-C and 1095-C)  Please be aware certain ACA reporting and tracking requirements are outside the scope of the LGC software (i.e. but not limited to….health insurance coverage the employer offers to employees but is declined).

25. 25 Affordable Care Act  We have implemented options within the software to track the data necessary for producing the 1094-C and 1095-C. The options will give you the ability to input and/or import information for 1094-C and 1095-C forms and print reports to verify the information. You may begin tracking this information once the release is loaded.  The Affordable Care Act legislation and guidelines issued by the federal government is an ever-changing process. Therefore, we encourage you to perform the appropriate due diligence for your office on an ongoing basis as changes are made and new regulations are issued. You are encouraged to consult with your support agencies or a trusted subject matter expert about decisions that are best for your particular circumstances regarding the Affordable Care Act.

26. 26 New menu options under Payroll #6-Period End Process #64-Affordable Care Act

27. 27 Option 20-Load ACA Employer File need to be done first. The only thing you are prompted for is ‘Year.’ This should be the calendar year for the file you will report. The program reads FICA Contract file from office manager and creates employer file for each FICA Contract with a unique federal EIN.

28. 28 Once ACA Employer file is created, use option 01-ACA Employer File Maint to enter/update reportable fields.

29. 29 Your office information. Third party company info filing on your behalf. Additional Applicable Large Employer (ALE) info needed for 1094-C and 1095-C reporting. ACA Employer file, screen 1

30. 30 If your office is a member of an Aggregate ALE Group you will need to enter each name and EIN for the group. ACA Employer file, screen 2

31. 31  Answer ‘Y’ or ‘N’ for Minimum Essential Coverage Offered for each month.  Enter ‘Employee Count’ for ‘Full-Time’ and ‘Total’ for each month.  Transitions Relief Indicator valid options are ‘A’ and ‘B’  If the employer is eligible for Section 4980H Transition Relief and is eligible for the 50 to 99 Relief, enter code A.  If the employer is eligible for Section 4980H Transition Relief and is eligible for the 100 or More Relief, enter code B.  An employer will not be eligible for both types of relief. ACA Employer file, screen 3

32. 32 Option 21-Load ACA Employee File

33. 33 21-Load ACA Employee File

34. 34 21-Load ACA Employee File ‘Year’ – Enter calendar year for file to create. ‘From/Thru Date’ – Selection criteria of employees to pull into the file. ‘Payrolls’ – Payroll numbers from which to select employees to pull into the file. ‘Locations’ – Location codes from which to select employees to pull into the file.

35. 35 21-Load ACA Employee File ‘Full/Part’ – Selection criteria of employees to pull into the file.  May be extremely important when deciding what to put in Coverage Offer Code, Minimal Emp Premium and Safe Harbor Code fields. ‘Status’ – Selection criteria of employees to pull into the file. ‘Freq’ – Selection criteria of employees to pull into the file.

36. 36 21-Load ACA Employee File ‘Pay Types’ – Selection criteria of employees to pull into the file. ‘Misc Codes’ – Selection criteria of employees to pull into the file. ‘Groups’ – Selection criteria of employees to pull into the file.

37. 37 21-Load ACA Employee File  ‘Coverage Offer Codes’ – Enter valid IRS Coverage Code for employees being pulled into the file.  This field may be skipped depending on employees being selected.  See IRS 1094-C and 1095-C instructions for description of codes. 1A 1B 1C 1D 1E 1F 1G 1H 1I

38. 38 21-Load ACA Employee File  ‘Minimal Emp Premium’ – Enter the lowest-cost monthly premium for self-only minimum essential coverage providing minimum value that is offered to the employee. This amount may not be the amount the employee is paying for the coverage, for example, if the employee chose to enroll in more expensive coverage such as family coverage.  May be skipped, depending on employees being selected.  Depending on Coverage Offer Code entered, you may be required to enter something in this field.  See IRS 1095-C instructions for additional information.

39. 39 21-Load ACA Employee File  ‘Safe Harbor Code’ – Enter valid IRS Coverage Code for employees being pulled into the file.  This field may be skipped depending on employees being selected.  See IRS 1094-C and 1095-C instructions for description of codes. 2A 2B 2C 2D 2E 2F 2G 2H 2I

40. 40 21-Load ACA Employee File  ‘Month to store values in’ – Month you wish to update employee’s ACA information for Coverage Offer Code, Minimal Emp Premium and Safe Harbor Code.  This field may be skipped depending on employees being selected.  Required if anything is entered for Coverage Offer Code, Minimal Emp Premium or Safe Harbor Code.

41. 41 21-Load ACA Employee File  ‘Overwrite Existing Records’ – Allows you to update or overwrite existing employee ACA information for the month selected.

42. 42 Once ACA Employee file is created, use option 02-ACA Employee File Maint to enter/update reportable fields.

43. 43 Each employee’s ACA file consists of 2 screens. Use screen 1 to enter/update Coverage Offer Code, Lowest Cost Monthly Premium, Safe Harbor Code for each month.

44. 44 If Employer provided self-insured coverage, type ‘X’ in the box and enter the information for each covered individual on the next screen.

45. 45 Employee information will appear with ‘St’atus = Active and ‘Type’ = Employee.

46. 46 Select F5 to add dependent to employee information.

47. 47 Enter dependent name. ‘J’, ‘F’, ‘M’, etc are month fields. Type an ‘X’ in month being processed in which dependent has insurance coverage. (Monthly roll process will allow ability to copy from one month to next.) Enter dependent’s SSN. Enter dependent’s date of birth. Enter ‘St’atus of ‘A’ctive or ‘I’nactive. Enter ‘Type’ of ‘S’pouse or ‘D’ependent.

48. 48 ACA report options

49. 49 #50-ACA Employer Report Prints a report of employer file information. This is information that will be printed on 1094-C form at calendar yearend.

50. 50 #51-ACA Employee Report Prints a report of employee file information. This is information that will be printed on 1095-C form at calendar yearend.

51. 51 #52-ACA Exception Report Prints a report of possibly incorrect employee information. Errors include: Missing month coverage indicator. (Error generated when monthly field does not have ‘X’.) Invalid min. employee prem. for coverage code. (Error generated when Coverage Code is one that does not allow an amount.)

52. 52 #56-Measurement Period Report Reads check history for date entered and gives an average of hours worked for weeks in measurement period.  This report period range includes three bi-weekly pay periods; therefore, 6 weeks is measurement period is used.

53. 53 Sample report:

54. 54 ACA roll options

55. 55 06-Roll ACA Files (Monthly) Copies detail information from one month to the next. Prompted for ‘Year’ and ‘From’ / ‘To’ months. Copies detail information from one month to the next. Employees or dependents whose ACA status is inactive will not copy.

56. 56 07-Roll ACA Files (Annual) Copies detail information from one year to the next. Prompted for ‘From’ / ‘To’ years. Copies employer and employee information from one year to the next. Employees or dependents whose ACA status is inactive will not copy.

57. 57  Printing 1094-C forms  Printing 1095-C forms  Creating electronic files

58. 58 This completes our presentation on Zortec Payroll New Features section of Resource 2015. If you have questions about any of these processes contact LGC Software Support Help Desk at 800.439.4504.