1. 0 Higher Education Payroll Processing & Reporting Jan 2016 Q & A SESSION NOVEMBER 10, 2015

2. Session Overview  Project Update  Important Dates  Federal Tax Payments  General Requirements  Remote Print Testing  Open Forum 1

3. Project Update 2  User Acceptance Testing  10/26-11/25/2015  Notification sent 10/26  Users contacted with UserIDs and password  PFT and 500 Misc Files  9 Completed  1 In Progress  Processing 1 File per Institute

4. Project Update 3  User Acceptance Testing Testers  301 Form & Testing is required for access into PeopleSoft Financials Production  Next Steps  11/6-11/25/2015 OST Validation  User Acceptance Testing Signoff Survey  Due 11/30  Ayana.Wilkins@omes.ok.gov Ayana.Wilkins@omes.ok.gov

5. Important Dates Reminder  November 16  ACES and Participant Maintenance OST security forms  301 security form  November 30  301JE security forms  December 4  Final direct deposit load files due  December 10  GO LIVE  January 2, 2016  Employee mass termination  Ayana.Wilkins@omes.ok.gov Ayana.Wilkins@omes.ok.gov 4

6. Important Dates Reminder  December 1  ACA test files for testing formats  December 7  File with employees requiring a 1095-C is due from institutions  December 11  File with multiple agency/institution employees due to institutions  December 18  File due from institutions on multiple agency/institution employees that OMES will print combined 1095-C form  File due from institutions on other employees if institution wants OMES to print 1095-C forms (same file) 5

7. Important Dates Reminder  January 11 – 18, 2016  OMES to print 1095-C forms for state agencies, multiple agency/institution employees, and other institution employees as requested  February 19, 2016  IRS file for 1095-C reporting due from institutions  Employee counts for authoritative 1094-C due from institutions 6

8. Federal Tax Payments General Requirements  https://www.irs.gov/pub/irs-pdf/p15.pdf  Publication 15(Circular E), Employer's Tax Guide  https://www.irs.gov/pub/irs-pdf/p15a.pdf  Publication 15-A Employer's Supplemental Tax Guide  https://www.irs.gov/pub/irs-pdf/p15b.pdf  Publication 15-B, Employer's Tax Guide to Fringe Benefits  https://www.irs.gov/pub/irs-pdf/p5137.pdf  Fringe Benefit Guide  https://www.irs.gov/pub/irs-pdf/p963.pdf  Federal-State Reference Guide 7

9. Federal Tax Payments General Requirements FSLG website: https://www.irs.gov/Government-Entities/Federal,-State-&-Local- Governments 8

10. Federal Tax Payments General Requirements 9

11.  Federal employment taxes (941 taxes)  Income tax – EE withheld  Social Security tax – EE withheld & ER match  Medicare Tax – EE withheld & ER match  Other tax liabilities  945 (retirees, backup withholding, etc)  1042 (nonresident aliens) 10

12. Federal Tax Payments General Requirements  941 Taxes – When to Deposit  Two deposit schedules  Monthly  Semi-weekly  Which schedule to use?  Determine before beginning of each calendar year  Based on 941 total liability during the ‘lookback period’  Not determined by how often or when you pay employees or when you make deposits 11

13. Federal Tax Payments General Requirements  941 Taxes – Lookback Period  Total Taxes on Forms 941, Line 10  July, 1 2013 – June 30, 2014  3Q13, 4Q13, 1Q14, 2Q14  Liability > $50,000 = semiweekly depositor  Liability < $50,000 = monthly depositor  2016: monthly schedule depositor - ? 12

14. Federal Tax Payments General Requirements  2016 deposit schedule?  Total Taxes on Forms 941, Line 10  July, 1 2014 – June 30, 2015  3Q14, 4Q14, 1Q15, 2Q15  Liability < $50,000 = monthly depositor 13

15. Federal Tax Payments General Requirements  Monthly Depositor  Deposit taxes on payrolls made during a month by the 15 th day of the following month.  Ex: payday = Jan. 29, 2016 with taxes due on Feb. 15, 2016  Ex: paydays = Jan. 8 and Jan. 22 with taxes due on Feb. 15  All paydays for Jan., pay taxes by Feb. 15 14

16. Federal Tax Payments General Requirements  Semiweekly Depositor  If during lookback period, the total liability was > $50,000  Payrolls paid on Wednesday, Thursday, and/or Friday must have taxes paid by the following Wednesday  Ex: payday = Jan. 15, 2016 with taxes due on Jan. 20, 2016  Payrolls paid on Saturday, Sunday, Monday, and/or Tuesday must have taxes paid by the following Friday  Ex: payday = Jan. 19, 2016 with taxes due on Jan. 22, 2016  Have 3 business days to make a timely deposit  Do not combine payments crossing quarters 15

17. Federal Tax Payments General Requirements 16

18. Federal Tax Payments General Requirements  Deposits on business days only  No weekends  No holidays  Timely made if by next business day  Ex: Taxes due by Monday Jan. 18, 2016 and paid on Tuesday Jan. 19, this is considered timely since Jan. 18 is a legal holiday 17

19. Federal Tax Payments General Requirements  Legal holiday  Any legal holiday in the District of Columbia  Does not include State holidays:  Friday after Thanksgiving  Fluctuating extra day at Christmas  Others as determined by Governor  O.S. Title 25, Section 82.1  OST Valid EFT Date Calendar  Sent out at the end of November each year to the agency CFO 18

20. Federal Tax Payments General Requirements  $100,000 Next-Day Deposit Rule  Applies to both monthly and semiweekly depositors  If accumulated taxes during a deposit period are $100,000 or more on any day, the taxes must be deposited by the next business day  If you are a monthly schedule depositor and accumulate a $100,000 tax liability on any day, you become a semiweekly schedule depositor on the next day and remain so for at least the rest of the calendar year and for the following calendar year 19

21. Federal Tax Payments General Requirements 20

22. Federal Tax Payments General Requirements  59.30 + 48.65 + 48.65 + 11.37 +11.37 = 179.34 21

23. Federal Tax Payments General Requirements  2,246.73 + 832.56 + 832.56 + 194.78 +194.78 = 4,301.41 22

24. Federal Tax Payments General Requirements  IRS Form 941 Employer’s QUARTERLY Federal Tax Return  Schedule B (Form 941) Report of Tax Liability for Semiweekly Schedule Depositors 23

25. Federal Tax Payments General Requirements 24

26. Federal Tax Payments General Requirements 25

27. Federal Tax Payments General Requirements Questions??? 26

28. 500 Misc Test Files  Pay Types  Include records for EFT and paper check for thorough testing  Participant IDs (Employee IDs)  Spaces are not recommended 27

29. Remote Check Printing  Remote Check Printing  Agencies currently printing Misc warrants remotely will also print payroll remotely  Agencies will receive a Paybase print file for warrants in 500 Misc test file  “Void” and “Non-Negotiable” will be printed across the face of the check  Check amount will be changed to $0.00 (void)  Reports will be provided (for testing) with correct dollar amounts 28

30. Open Forum 29

31. Questions? Ayana.Wilkins@omes.ok.gov 30

32. Next Sessions  November 23 from 2 – 5 pm  December 9 from 2- 5 pm 31