W2 Reporting
for 2014
December 15, 2014
Agenda
• Essential Dates
• SCOE or District
• Calendars
• Issues for Adjustment
• Prior to December Regular Payroll
• Post December Regular Payroll
• W2 Correction Payroll
• Finding Problems
• Process to Use
Agenda
• Making Corrections
• Which Payroll to Use
• Reports
• What Balances to What
• Helpful Hints
• Check List
• Final Submission
Essential Dates
Essential Dates
Essential Dates
• District Responsibilities:
- December 15 - Initial Verification of Payroll Data
• In Production
- December 15-19 – All Pay/Cash Related Corrections Made
• In Production
• December Regular – Due Noon – Friday, 12/19/14
- December 20-January 12 – All Possible Corrections Done
• In Production
• W2 Correction Pay Cycle – Due Noon - Monday, 1/12/14
• December 20 - January 14 – Final Review of Data
Essential Dates
• District Responsibilities:
- January 14 – Final Verification of W2 Data
- Verification Reports due to Erin in Business Services
Due by 4:30 p.m.
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Pay01 Payroll Summary
Pay05 Monthly Tax Summary
Pay 26a Employer W2 Copy
Pay 27 W2 Summary
Pay 31 W2 Errors
Pay 99 Payroll Snapshot
2014 W2 Reporting
• Updated W2 Tutorial
• Include Additional Medicare in Box 6
• Salaries over $200,000
• Notify Erin if applicable to your district
• Suppress W2’s for Non-earnings Individuals
• Box 12, DD Health Benefits
• Abbreviating W2 Addresses
• 22 first line W2, 60 in Escape
• Verify that enough is present for mail delivery
• Only alters W2 address
Helpful Publications
• Class Handouts
– Posted to Escape Home Page
• Escape
– Chapter 20 – W2 Reporting
– Escape How To (Online Chapter 20)
– W2 Tutorial (New with 14.3 version)
• WWW.IRS.Gov (Website)
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2014 General Instructions for Forms W-2 and W-3
Publication 15 – Employer Tax Guide
Publication 15A – Employer Supplemental Tax Guide
Publication 15B – Fringe Benefits
W2 Form Documentation
Review Set Up
• Review Deductions
– HR/Payroll – Setup – Deductions Management
• Section 3 – Retirement/W2
– H/W Post and Pre Deductions=W2 Box 12 (Reporting
Elements), W2 Category DD (Health Insurance)
– HSA Deduction=W2 Box 12 (Reporting Elements), W2
Category W (HSA Contributions)
– TSA Deduction=W2 Box 12 (Reporting Elements), W2
Category E or BB (Deferred Comp 403 or Roth under 403b)
OR Category G or EE (Deferred Comp 457 or Roth under
457b)
– Dependent Child Care=W2 Box 10 (Box 10 Dependent Care)
Review Set Up
Review
for
correct
set up of
W2 box
and
category
Review Set Up
• W2 Pension Field
– If reportable amounts to STRS/PERS, automatically set
• Can adjust now for all of 2014
– Box 12 requires an IRS Defined Category
– Box 14 Defined by District
» Can have up to 4 Defined Categories
» After 4, data in 5 or more rolls into 4th Category
– Notify IT Business Support Analyst if Category changes needed
» District must supply IT with Code and Description
Review Set Up
• Review Contributions
– HR/Payroll – Setup – Contributions Management
• Section 3 – Retirement/W2
– H/W Employer Contribution=W2 Box 12 (Reporting Elements),
W2 Category DD (Health Insurance)
– HSA Employer Contribution=W2 Box 12 (Reporting Elements),
W2 Category W (HSA Contributions)
– TSA Employer Contribution=W2 Box 12 (Reporting Elements),
W2 Category E (Deferred Comp 403) OR Category G (Deferred
Comp 457)
• Can adjust now for all of 2014
– Box 14 Defined by District
– Notify IT Business Support Analyst if changes needed
Review Set Up
Review
for
correct
set up of
W2 Box
and
Category
Review Set Up
• Review Addon Setup
– HR/Payroll – Setup – Payroll – Addons
• Section 3 – W2 and Account Numbers
– Group-Term Life Insurance=W2 Box 12 (Reporting Elements),
W2 Category C (Taxable Life Ins Over $50,000)
– Mileage=W2 Box 12 (Reporting Elements), W2 Category L
(Employee Expense)
• W2 Box 12 or 14:
– Must have appropriate Category
» Box 12 (Reporting Elements)– Select from default list
» Box 14 (Reporting Elements)– Locally defined code
Review Set Up
Review for
correct set
up of W2
Box and
Category
Review Set Up
– Verify Usage of Special Addons
• Domestic Partners – used to report amounts paid by
employer for health and welfare premiums for domestic
partners
– Registered Domestic Partners – Exempt from State Tax
Withholdings
• Group-Term Life Insurance over 50K – used to adjust the
employee’s subject wages
– Required to use IRS table to determine the adjustment
Review Set Up
– Verify Usage of Special Addons, cont’d
• Mileage – used to report District’s mileage
reimbursement rate if greater than government rate
– Government rate for 2014 is .56 cents per mile
• Workers Comp – used when employer receives W/C
checks for employee
- W/C pay is not subject to FIT, SIT, OASDI and Medicare
Issues for Adjustments
• December Regular Payroll
– All CASH adjustments must be made on the December
Regular Payroll
• Special Addons not set up and used in 2014
– W2 Addon for Benefits outside Escape (RESIG payments)
• Medicare, OASDI, PERS/STRS adjustments
• Use Z-Type Addons if Necessary
– Increases subject grosses causing additional taxation
• Dependent Child Care if in Excess of IRS Limit
Issues for Adjustments
• December Regular Payroll, cont’d
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Stale Date Paychecks
Outstanding TSA issues
Third Party Sick Pay
Undocumented Business Expenses
Any other income not reflected in pay history
– Benefits paid to an outside vendor
» RESIG as an example
Issues for Adjustments
• Social Security Numbers
• SS# - Issue this year, please double check ongoing
• Do not manually change the SS# in Employee Management
without going through Erin in Business Services
NOTE: ESCAPE version 14.3 has made changes to view
and/or edit Social Security numbers.
Finding Problems
• HR/Payroll – Processes - Tax Reporting –
Employee W2
- Search for Complete List, Changes or Problems
• Initial Review of W2
• Provides W2 Error/Edit Profile
• Provides for reload of changes
Finding Problems
Double click on Problem heading to
bring problems to top of list
• Possible Error Codes
– 0 = Out of Range (example: OASDI goes negative)
– C = Calculation Problems (Probably needs SCOE intervention)
– E = Employee Issues (Invalid SSN or address)
Finding Problems
‾ Open Line to View Problem Msg Field
‾ Escape checks for minimal issues
• Negative balances for OASDI, M/C, Dependent Care,
Box 12, Retirement Plans, FIT, and SIT grosses or
withholdings
• OASDI Gross greater than M/C Gross
• Invalid SSN
• Address Incomplete
‾ Reminder: Quick Link to the Employee Record
• Use to change the “original” information and then
reload data
Finding Problems
-
Run Pay 31 W2 Errors Report (Good Source for
Address Issues)
- Errors are generated via the pay detail load
- Must clear all errors to process FINAL W2’s
Finding Problems
– Verify W2 for deductions/contributions reported
on W2
• Run Pay12 Employee Deduction Report
– To verify 125 Dependent Child Care does not exceed IRS
limits
– To verify TSA contributions to not exceed limit
• Pay34 Payroll Deduction and Contribution Detail
Report
– Use: W2 Filtering
– Start and End Dates (Not fiscal year)
• Run Employee Snapshot
– Select Calendar Year
Finding Problems
Note the Starting
and Ending Dates
rather than Fiscal
Year
Can be run by Deduction Id to
verify within IRS limits
Finding Problems
Note the
Calendar date
rather than
the Fiscal
Year entry
W2
Filtering
Making Corrections
• Decide when issue should be corrected
- December Regular
• If adjustment will AFFECT PAY/CASH
• Call Business Services or IT Analyst for help
- W2 Correction Payroll
• ONLY Non cash items
Making Corrections
- Post W2 Adjustment Process
Only use if unable to meet other deadlines above
• Must consult with Business Services prior to
adjustment.
• Will not adjust Pay records, only W2 data
• NO audit trail
– Unable to verify at a later date
Making Corrections
• Data can be adjusted in Adjust Pay
– HR/Payroll – Payroll – Adjust Payroll
– Make Any Adjustments Needed
Questions?
Contact Erin in Business Services
or
Tina and Marie,
IT Business Support Analysts
Making Corrections
• Additional Pay for W2 Correction Pay Cycle
– HR/Payroll – Employment - Additional Pay
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Fiscal Year = 2014
Description = W2 Adjustments
Pay Cycle = W2 (W2 Adjustments)
Pay Period = 12/25/14
Making Corrections
• Data can be adjusted in Adjust Pay
– HR/Payroll – Payroll – Adjust Payroll
– Select W2 Pay Cycle
– Make Any Adjustments Needed
– Cannot Result in a Cash Entry
• Use Repay Deduction
Reports/Processes
• Other Helpful Reports:
HR/Payroll – Reports – Payroll
–
Pay 01 - Payroll Summary
Reports/Processes
– Pay 26 – W2 Employer Copy
• Should Balance/Match to Pay 27
Useful Reports
• Pay05 – Monthly Tax Summary
• Should balance to Pay27 by Category
Reports/Processes
- Pay 27 – W2 Summary
• Run for Final Submission
Reports/Processes
Pay 31 - W2 Errors as Report
• Must be Error Free for Final Submission
Helpful Hints
• Watch Address Truncation
– 22 first line W2, 60 in Escape
• Pay 31 with Address Errors
• W2 Box Categories
• If more than 4, then remaining will roll to #4
• Adjust Pay has Calendar Year Option
• Set up Addons for 2014
– Domestic/Lifeadj/Mileage
• Always Run Reports With Full 2014 Year
Helpful Hints
• For 2014, Use Repay Deduction when
employee doesn’t have enough earnings to
cover their portion of benefits (see handout,
Health Insurance)
• If claiming Exempt, must submit new W4 by
2/15/15
W2 Checklist
– December Payroll
– Corrections of miscellaneous, non-cash issues
• Entries that will affect cash payments to employee requires use of Repay Deduction
• Additional Pay Batch: W2 Correction Payroll
– Requires special pay cycle
– No entries that affect CASH.
Final Submission
• January 14, 2014 by 4:30 p.m.
– Pay01 Payroll Summary
– Pay05 Monthly Tax Summary
– Pay26a Employer W2 Copy
– Pay 27 W2 Summary
– Pay 31 W2 Errors
– Pay 99 Payroll Snapshot
• Submit to Erin in Business Services
You can submit the reports early
to Erin in Business Services for early review.
Final Submission
Did you Know?
Districts can review the
Pay31 –W2 Error Report anytime
–Don’t wait until the last moment!!!