1. Photo by Karl Steinbrenner Reconciliations for a Successful Year End June 2, 2015

2. Objective Achieving successful fiscal year-end and calendar year-end reporting is done through regular reconciliation beginning on the pay-period level.

3. Overview We will cover how to reconcile gross pay, taxable wages and taxes for: Every pay period Every month Every quarter Special Notes Uncollected FICA Prior Year Workers’ Compensation Checks

4. Gross Pay, Taxable Wage & Tax Reconciliations: Every Pay Period

5. Every Pay Period Reports –Report U118 –Post-Certification Report 10 Compare (PAT) –Report 33 (PAT)

6. Every Pay Period Report U118 –Research all differences and report to SPO. –Due by closed of business on day after certification. –Audit point for not responding.

7. Every Pay Period Post-Certification Report 10 Comparison (PAT) –Helpful for researching U118 differences. –Print and keep with Certification. –Only available for 60 days.

8. Every Pay Period Report 33 (PAT) –PAT report 33 is built using the “current” amounts from each system report 33 in the year. It is cumulative and includes amounts from off-cycle special payrolls. –Terminated employees’ earnings are included on report 33. –Because termed employees are in Frequency 99, they are not included in Report 10 totals once they have been termed.

9. Every Pay Period What to check –SIT Taxable does not equal FIT Taxable Only valid exception, if you have non-VA SIT or dual taxation –Employee HI Tax/Taxable does not equal Company HI Tax/Taxable –Employee OASDI Tax/Taxable does not equal Company OASDI Tax/Taxable

10. Every Pay Period How to correct –Manual pay set Preferred method Regular Pay and Special Pay YTD amount adjustments Deduction YTD amount adjustments

11. Every Pay Period How to correct, continued –Employee Masterfile Adjustment Form If manual payset doesn’t work –YTD Imp Life on H0BTT does not equal YTD Imp Life on H10SA Submit Employee Masterfile Adjustment Form to State Payroll Operations. Do NOT wait until the end of the month or quarter.

12. Every Pay Period How to correct, continued – Employee Masterfile Adjustment Form, continued How to complete: provide the amount that the field should be; not the amount of the increase/decrease. “Quarterly Reconciliation Forms” section of Payroll Operations Forms page at http://www.doa.virginia.gov/Payroll/Forms/Payroll_ Forms_Main.cfm http://www.doa.virginia.gov/Payroll/Forms/Payroll_ Forms_Main.cfm

13. Every Pay Period When should I reconcile? –The first business day after certification.

14. Gross Pay, Taxable Wage & Tax Reconciliations: Every Month

15. Every Month Reports: –Report 33 (PAT) “As of composite date” = 24 th of the month –Report U092/U093

16. Every Month What to check –U092 lists employees with errors for which a U093 is present: Tax Status not 4 Employee has uncollected OASDI/HI More than 1 tax record* –Research all Report U093 entries –U092/U093 acceptable variances: Pre-tax benefits taken from non-taxable pay Uncollected FICA for Imputed Life

17. Every Month What to check, continued –Compare Report 33 YTD amounts with U092 YTD amounts

18. Every Month How to correct –Manual pay set to correct Regular Pay and Special Pay YTD amount adjustments Deduction YTD amount adjustments

19. Every Month How to correct, continued –Employee Masterfile Adjustment Form YTD Imp Life on H0BTT does not equal YTD Imp Life on H10SA (U092 will show this) Do NOT submit to clear Uncollected FICA caused by Imputed Life. Submit Employee Masterfile Adjustment Form to State Payroll Operations. Do NOT wait until the end of the quarter.

20. Every Month When should I reconcile? –The first business day of the following month. –Report U092 and Report U093 are created overnight the last business day of month being reported.

21. Gross Pay, Taxable Wage & Tax Reconciliations: Every Quarter

22. Every Quarter Reports –Report 33 (as of 24 th of last month of quarter), Composite Tax Report –Report 56, Quarterly Tax Composite Report (company totals, state totals for each state, local totals for each locality, if applicable) –Report 880, Employee Quarterly Tax Report #1 –Report 881, Employee Quarterly Tax Report #2

23. Every Quarter Reports, continued –Report U057, Quarterly Employee Count for SUI Purposes by FIPS Check for incorrect FIPS codes Verify with Agency HR Update H0BUO screen –Report U090, FIPS Code Error Report Employees with missing FIPS code Update H0BUO screen

24. Every Quarter What to check –YTD amounts on Report 33 should match YTD amounts on Report 56. Compare state YTD amount on report 33 with state YTD amount on report 56. Compare company YTD amount on report 33 with company YTD on report 56. Compare local YTD amount on report 33 with local YTD amount on report 56.

25. Every Quarter What to check, continued –Company YTD amounts on Report 56 should match the Company YTD amounts on Report 880. –Company YTD uncollected FICA on Report U092 should match Company YTD uncollected FICA on Report 881

26. Every Quarter How to correct –Manual pay set to correct –Employee Masterfile Adjustment Form When should I reconcile? –Second business day of month following end of the quarter. –Quarter-end report are created overnight of first business day of the first month of the next quarter.

27. Special Notes

28. Uncollected FICA (OASDI/HI) Taxes: –Imputed Life is taxable portion of the employee’s Group Term Life Insurance benefit –In certain cases, this benefit continues despite employee not being paid: Military Leave without Pay Severance/Worker Transition Act (WTA)

29. Special Notes Uncollected FICA (OASDI/HI) Taxes, continued –NEVER clear uncollected FICA caused by Imputed Life. –Doing so provides a benefit to those employees not extended to others.

30. Special Notes Workers’ Compensation –Adjust/reclassify earnings in the pay period/calendar year of the coverage dates on the WC check. –Checks for wages lost in a prior calendar year require issuing Form(s) W-2C for the tax year(s) affected. –Refund OASDI/HI taxes outside of the payroll system.

31. Special Notes Workers’ Compensation, continued –Workers’ Compensation checks received for pay periods when the employee was not paid in full through VSDP and/or leave coverage: Employee MUST BE PAID within 14 days of agency receiving the check. Penalty: 20% of 18-months compensation.

32. Special Notes Workers’ Compensation, continued –Traditional (non-VSDP) sick plan: Workers’ Compensation replaces 2/3 (66 2/3%) of average weekly wage. First 92 days, the agency supplements 1/3 (33 1/3%) of average weekly wage. Special Pay 063, WC SUPP, is used for the agency supplement during the 92 days. Note: special pay 063 is not applicable for VSDP Workers’ Compensation claims.

33. Contact Us Email: payroll@doa.virginia.govpayroll@doa.virginia.gov Director, State Payroll Operations –Voice: (804) 225-2245 or (804) 371-7800 Payroll Support Analyst/Trainer –Voice: (804) 786-1083