Financial Services
Workshop
Payroll Breakout
May16, 2014
1
Introductions
Payroll Director
Letty J. Lalu
328-4245
lalul@ecu.edu
Payroll Accountant
Marci Copeland
328-0445
copelandm@ecu.edu
International Tax Specialist
Barbara Wells
737-4792
hanlonb@ecu.edu
Lead Payroll Technician
Tia Freeman
328-4161
freemand@ecu.edu
Payroll Specialist
Cynthia Andrews
328-5462
andrewsc@ecu.edu
Payroll Specialist
Cynthia Price
328-5461
pricecy@ecu.edu
Payroll Clerk
Brenda Reese
328-6954
reeseb@ecu.edu
Payroll/Admin Clerk
Rosie Evans
328-6955
evansro@ecu.edu
Payroll Temp
Sue Scott
328-5463
scotts@ecu.edu
March 12, 2014
2
Primary Areas of Responsibility
Letty
Employee overpayments and collection, taxes, W-2s, system integration
and reporting, semi-monthly (SM) payroll processing
Marci
Manual payroll cycles and adjustments, International tax reporting-1042s,
audit, Kronos implementation
Barbara
International/non-resident employee and student tax
Tia
Temp and Student (TS) payroll processing, Web-time, Mass time Entry
(MTE) and Kronos support
Cynthia A.
LOA and termination calculations, pay adjustment calculations, Core
Banking, tax payments (EFTPS) and wires
Cynthia P.
Web-time, Mass time Entry (MTE) and Kronos support, Dual
employment, Holiday pay verification, overpayment administration
Brenda
Excess wage verification, Direct deposit processing, web-time support
Rosie
W-4 and NC-4 processing, front office support, W-2 mailing and returns
March 12, 2014
3
What’s New?

NC House Bill 998
◦ Effective 1-1-2014 every ECU employee required to complete a NEW NC-4 State
Employee’s Withholding Allowance Certificate
◦ Reduces NC income tax to flat 5.8% rate
◦ Increases standard deduction
◦ Eliminates personal exemptions
◦ Eliminates many other deductions and tax credits

Self Service Banner:
◦ Employees can now view, submit and update



W-4 - Federal Employee’s Withholding Allowance Certificate
NC-4 - State Employee’s Withholding Allowance Certificate
NC House Bill 4:
◦ Requires ECU to fund a reserve account with the NC Division of Employment
Security to fund future unemployment claims
◦ 1% of wages assessment Q3,Q4-2013 and Q1,Q2-2014
March 12, 2014
4
What’s new?

W-2 Reissue Request


Available under Forms on ECU Payroll web site
Paper checks are only available for pickup on
the payroll date from 8:00 to 1:00 p.m.

Mailed on pay date afternoon mail
New Template: Request to Reduce Pay
 Updated Payroll Web page with instruction
documents, FAQ

March 12, 2014
5
What’s new?
120 Reade Street
Building 133
Financial Services
Greenville, NC 27858
Southwest corner of Reade and 2nd Street
 No change to:

◦ Mail Stop: 226
◦ Phone: 252-328-6955
◦ Fax:
252-328-0910
March 12, 2014
6
What’s new?

payrolltax@ecu.edu
◦ Questions on W-4, NC-4, W-2
◦ Questions regarding payroll tax withholding
Federal, State, Social Security

internationaltax@ecu.edu
◦ Questions regarding temporary visa holders,
green card holders, 1042s
March 12, 2014
7
What Payroll does





Review and input W-4, NC-4 and Direct
deposit forms
Upload time and wages submitted through
Web-time, MTE and Kronos into Banner
Upload deductions through automated
interfaces
Manually key adjustments submitted from
timekeepers/departments
Calculate and key exceptions for
terminations, LOA, returns from LOA, job
changes and other non-standard pay
situations
March 12, 2014
8
What Payroll does
Calculate and key payroll reductions for
overpayments
 Work exception reports generated
throughout payroll process

◦ FOAP
◦ Wages recorded in Kronos, Webtime, MTE
not loading to Banner
◦ Variances this semi to last
◦ Excess wages verification
◦ Tax compliance review
March 12, 2014
9
What Payroll does
Reconcile tax liability accounts
 Ensure timely and accurate submission of
Federal and State taxes and reports
 Issue annual W2-Employee Wage and Tax
Statements and 1042-Foreign Person’s
U.S. Source Income
 Manage failed Direct Deposits
 Collection efforts for employees overpaid
through payroll

March 12, 2014
10
What Payroll doesn’t do







Change names or SS#s in Banner-HR
Input or change deductions-other than
taxes-HR
Manage liens, garnishments-HR
Manage or view leave records-Dept
Determine best way for processing payment
for unusual pay circumstance-IPS
Validate dates on EPAFs- IPS/Departments
Act as approver on EPAFs – FYI only
March 12, 2014
11
What Payroll doesn’t do






Unemployment claims- Employee Relations
Reconcile or submit payment to other
vendors (e.g. Insurance, wage garnishments,
retirement programs)-IPS
Reconcile payroll expense to the ledger
Review or reconcile Payroll History reports
Review payroll or labor suspense accounts
Review POSMAN reports
March 12, 2014
12
What Payroll doesn’t
do…Employment Verfication
To Obtain Proof of Employment Only the Verifier should follow these 3 steps:
1) Please login to www.verifyjobhistory.com to register.
2) You will need the following information:
◦
◦
a. ECU Employer Code: 1252
b. The person’s Employee ID & Last Name OR the person’s First Name, Middle Initial, Last Name & Date of Birth.
3) Pay for the transaction by credit card.
To Obtain Proof of Employment and Income:
1) In addition to the steps 1, 2 & 3 above, the employee needs to provide an authorization code to access
their information. (Employees generate an authorization code by visiting www.verifyjobhistory.com or
calling 1-800-281-5260).
Special Instructions for Social Service Agencies
1) Please login to www.verifyjobhistory.com to register.
2) Once we qualify your agency, you may begin to receive results online or by fax.
For additional questions or more information regarding the benefits of membership, please call:
JobTrax Client Service Center
Monday – Friday; 8:00 am – 5:00 pm (EST)
1-800-281-5260 or 1-440-247-1600
March 12, 2014
13
Web and Mass Time Entry
Note: This is
APPROVERS
deadline…NOT
students!
March 12, 2014
14
Payroll Exception/Adjustments

Cut-off March 18th, but realize on March 21st
there is a change…now what?
◦
◦
◦
◦
Contact Payroll office
Request Adjustment form
Complete with signatures
Return to Payroll BY DUE DATE for manual
keying
◦ Follow up to ensure hours/pay was included in
employee’s pay
◦ Do NOT re-submit hours/pay in subsequent
payroll through MTE
March 12, 2014
15
Payroll Exception/Adjustments

Payroll typically has 5-6 days after WTE/MTE
closes to finalize payroll.
◦ Holidays occasionally reduce timeline to just 3
days


Payroll must be finalized 3 working days
prior to Pay Date
Some changes can be made between
WebTime, MTE deadlines and Payroll
finalization dates.
◦ Late notice terminations/separations
◦ Late notice LOA
◦ Data entry correction on MTE
March 12, 2014
16
Manual checks






Cannot be issued if there is no active job
for the employee
Should only be requested if waiting for next semimonthly pay causes the employee a financial
hardship
Requires payroll to run the entire payroll processisn’t as simple as “writing a check”
Payroll may deny request for manual check.
Cannot be issued as a direct deposit
Will be available for pick up from 10 a.m. to 1:00
p.m. exactly one week following the regular semimonthly pay day
March 12, 2014
17
Manual checks
Contact payroll office
 Request Manual check form
 Complete with signatures
 Return to Payroll by DUE DATE
 Do NOT include hours in next semi’s
MTE.

March 12, 2014
18
Self Service Banner

Employees can view history, current
status and # of allowances claimed and
can now MAKE CHANGES TO:
◦ NC-4 effective December 9, 2013
 Still have approximately 2,000 employees who have
not submitted new form or verified changes
◦ W-4 effective January 9, 2014
◦ If claiming EXEMPT must complete paper
form
◦ Using SSB at new employee orientation
March 12, 2014
19
Paper Form-W-4
March 12, 2014
20
Paper Form NC-4
If an employee is claiming EXEMPT, Line 1
should be left blank.
Otherwise, Line 1 MUST be completed.
March 12, 2014
21
Claiming EXEMPT
Must meet BOTH conditions
 1) Last year had a right to refund ALL
federal income tax withheld because I had
NO tax liability…
 AND 2) This year I expect a refund of
ALL federal income tax withheld because
I expect to have NO tax liability.
 Must be renewed annually and
resubmitted by 15 February

March 12, 2014
22
Paper Forms
Default is S0-Highest tax rate
Encourage employees to utilize the
worksheet and keep copy for their records
 Don’t provide advice on number of
allowances or status
 Must use 2014 forms
 Payroll will reject paper forms that are not
completed correctly or have conflicting
information


◦ Status remains at Single Zero (or last W-4,NC-4
form on file)until corrected form is submitted to
Payroll office
March 12, 2014
23
When to file a new W-4

REQUIRED:
◦ Name change (after receiving SS card)
◦ Divorce, spouse takes a job, dependent moves
out of house
◦ Realize you are no longer EXEMPT.

OPTIONAL:
◦ Birth of child or adoption, spouse quits their
job
◦ Realize you are EXEMPT.
March 12, 2014
24
Federal Tax Table-2014
Standard exemption allowance for 2014 is
$164.60 times number of allowances
 Banner uses this annualized tax table

March 12, 2014
25
Supplemental Pay-2014
IRS supplemental tax rate is 25% regardless of
filing status or allowances selected on W-4
 NC-4 supplemental tax rate is 5.8%
 Supplemental Wages

◦
◦
◦
◦
◦
◦
◦
◦
Dual Employment
Bonus and Incentives
Settlement Agreements
Awards
Vacation Payout
Severance
Longevity
Supplemental Taxable Benefits
March 12, 2014
26
NC State Tax Table-2014
March 12, 2014
27
Social Security Tax-2014

FIC-FICA OASDI
◦ Old-Age, Survivors, and Disability Insurance
◦ Employee: 6.2% Employer: 6.2%
◦ Maximum taxable earnings for 2014 is
$117,000.

FIM-FICA Medicare
◦ Medicare hospital insurance part of Social
Security
◦ Employee:1.45%
◦ Employer: 1.45%
March 12, 2014
28
Social Security Tax-2014
 FIH-Additional
Medicare Tax
◦ New in 2013-continued in 2014
◦ Employee: .09% of wages in
excess of $200,000/yr.
◦ Employer: none
March 12, 2014
29
Fed and State Pre-Tax Deductions
All deductions that say “Pre-Tax”
 401K, 403b (not Roth) and 457
contributions
 Flex dependent care spending, Flex
medical care spending
 Health insurance premiums
 TSERS state retirement, Fidelity, Lincoln,
TIAA and VALIC and “undecided”
Employee contributions

March 12, 2014
30
Social Security :Pre-Tax Deductions
All deductions that say “Pre-Tax”
 Flex dependent care spending, Flex
medical care spending
 Health insurance premiums

March 12, 2014
31
Student FIC/FIM/FIH Exemption
Students working and enrolled at ECU
may be temporarily exempt from SS
taxes.
 Based on # of hours enrolled
 Evaluated each pay period

Enrollment Status
Minimum # of hours
Graduate
4
Medical
4
Undergraduate
6
Dental
10
March 12, 2014
32
International Employees

Employees on a temporary visa are required to visit
the payroll office annually to do a tax assessment to
determine taxation and potential eligibility for tax
treaty benefits.

Employees who do not meet the substantial presence
test for resident alien, can only claim one allowance
for federal and zero allowance for state withholding,
and will be taxed at the higher nonresident alien rate
(some exceptions apply for Canada, Mexico, Korea,
and India).

Green card holders and resident aliens for tax
purposes are taxed the same as US citizen.
March 12, 2014
33
International Employees

Individuals on temporary visa being taxed as
a nonresident alien may be exempt from
FICA tax depending on the visa type (F-1, J1, M-1, Q-1) used to enter the United States
and compliance with the terms of that visa.

Individuals on temporary visa taxed as a
resident alien may be exempt from FICA
only if they meet the student FICA
exemption which is the same for a US
citizen that is based on enrollment/thesis.
March 12, 2014
34
Kronos update

Who?
◦ Every ECU employee who earns or is granted leave and/or tracks time

What?
◦ Time, attendance and leave tracking system
◦ Eliminates paper/excel leave records

When?
◦
◦
◦
◦

Steering committee formed
Rebuild implementation team
Upgrade to and train on most recent version
Developing phasing and implementation plan
Why?
◦ Improve policy and FLSA compliance
◦ Improve productivity and manual timekeeping
◦ Eliminate paper leave records
March 12, 2014
35
Why 86.67 hours?
52 weeks X 40 hours week = 2080 hrs
 2080 hrs / 24 pays equals = 86.67 hrs per
pay
 Pay periods range from 9 days to 12 days.
 Wage adjustments calculated based on #
of days worked/missed in pay period vs. 8
hours day times # of days

March 12, 2014
36
Wage adjustment calculation
John Doe retired on 22 February and
earns $1250 per pay
 Final salary calculated as 5/9 X $1250

March 12, 2014
37
Converting Minutes to Decimals
Banner deals with minutes as a decimal
 MTEs should be reported in decimals
 # of minutes/60 = decimal

◦ 15/60 = .2530/60 = .50

45/60 = .75
Examples:
◦ 6 hours & 30 minutes shown as 6:30 = 6.50 hrs
◦ 5 hours & 15 minutes shown as 5:15 = 5.25 hrs
◦ 4 hours & 10 minutes shown as 4:10 = 4.17 hrs
March 12, 2014
38
Conversion Chart
March 12, 2014
39
Leave Reporting
Payroll does not have access to leave
records
 If employees miss work and have no leave
“on the books” , timekeepers are
RESPONSIBLE for reporting hours
missed to Payroll so that pay can be
adjusted appropriately.

March 12, 2014
40
Request to Reduce Pay
REQUEST TO REDUCE PAY
This template should be used as an official request to the Payroll Office to reduce the salaried pay for an employee who has been
absent from work and has no accumulated leave to offset their absence. This template may also be used for those employees
who must have their pay reduced during the University Winter Break because they have insufficient leave time to cover the
absence or for those employees who have the leave, but choose to have their pay reduced rather than take available leave.
This template is NOT a substitute for the Official Leave of Absence (LOA) Form available on the HR/Benefits website which should
be used for all Leave of Absences not covered by the examples provided above. http://www.ecu.edu/csadmin/HumanResources/Benefits.cfm
This template should be completed by the Leave Clerk.
Send an e-mail request to lalul@ecu.edu and andrewsc@ecu.edu with the subject line “PAY REDUCTION REQUEST:
EMPLOYEE NAME and BANNER ID#”.
COMPLETED BY:
Please make the following adjustment to the semi-monthly employee per the request detailed below:
EMPLOYEE NAME:
BANNER ID#:
(Detail each date and the # of hours to adjust per day separately. Insert more lines if necessary)
DATE
# of HOURS
TOTAL # OF HOURS:
COMMENT:
(Provide any additional information you feel may be helpful).
DEDUCT FROM:
____PP24 (if for Winter Break)
____NEXT PAY
____ PP ____
(If you wish to deduct the pay over more than one pay period, please contact Payroll @ 252-328-4245)
LEAVE CLERK TELEPHONE #:
March 12, 2014
41
FMLA and Leave-including Intermittent
leave or reduced work schedule
Must submit FMLA application and
medical certification to the Benefits
Office 30 days-2 weeks from start date of
leave.
 FMLA is UNPAID leave…must use
vacation, sick, bonus, comp in order to
remain in active pay status.

March 12, 2014
42
FMLA and Leave-including Intermittent
leave or reduced work schedule
Employees on FMLA who exhaust leave
or with no available leave should be
placed on Leave Without Pay using a
Leave of Absence form.
 Must make arrangements with Benefits
Office regarding benefits while on LWOP
 Should be closely coordinated with
Payroll to ensure appropriate pay and
avoid overpayment.

March 12, 2014
43
Wage and hour laws
“Non-exempt” covered by Federal FLSA.
 Overtime for hours worked in excess of
40 for single workweek.
 Non-exempt SPA employees paid salaried
wages, but must be compensated (comp
time or pay depending on departmental
policy) for hours worked over 40 in single
workweek

March 12, 2014
44
Wage and hour laws
March 12, 2014
45
Week 1
March 12, 2014
46
Week 2
March 12, 2014
47
Week 3
March 12, 2014
48
Week 4

Assuming no hours worked on Saturday 3/16/13
March 12, 2014
49
Adverse Weather
If Adverse Weather is used…must use
vacation leave or must be made up within 12
months of date taken
 When making up AW employee cannot
work more than 40 hours…must make up
during a week employee is out sick, takes a
vacation day, holiday-Must repay using
straight time hours
 Must have system for keeping up with the
AW weather leave taken and made up

March 12, 2014
50
University Closed




Employees paid for this time…coded as UC
on leave cards/time sheets
If employee is asked to come in, they will be
paid for the hours they worked and they will
get hour for hour to be used later
If an employee chooses to come to work,
they will not be paid and will not receive
hour for hour time off
Exception request must be approved by HR
March 12, 2014
51
How can we reduce overpayments?




Complete Leave of Absence forms timelyWC, FMLA, etc.
Complete Termination forms timely
Keep leave records up to date
Notify Payroll of short notice terminations
immediately
◦ Even if leave records are not up to date and
require additional review/signature

Notify Payroll of employees in negative leave
situations or work missed with no leave “on
the books”
March 12, 2014
52
How can we reduce overpayments?
File EPAFs timely to end jobs, stipends,
etc.
 Ensure employees with jobs set up in
advance actually begin assignments on
target date
 Ensure EPAF dates and pay factors are
correct
 Notify payroll immediately of death in
service

March 12, 2014
53
Collection Process

First Notice: Employee notification of
overpayment
◦ If current employee-payroll reduction
◦ If terminated-begin collection process





30 days: Second Notice10% penalty and 5% annual
interest
60 days: Final Notice
90 days: submission to NC Attorney General’s
office
90 days: submission to NC Setoff Debt Collection
Program (SODCA) -taxpayer income tax refunds
120 days: submission to Collection agency
March 12, 2014
54
Collection Process
If collected in same year, employee pays
back net wages
 If collected in subsequent year, employee
pays back gross wages
 Job FOAP credited when payment is
received. (May be closed FOAP)

March 12, 2014
55
Resources: Payroll web site





Staff listing
Payroll Calendars
SSB Instructions
FAQs
Forms
March 12, 2014
56
UNC-FIT-Payroll KPI-You can help!
# of payroll adjustments (requests for manual
checks)
 # of paper checks vs. direct deposit

◦ DD is mandatory…but the # of paper check being
issued is on the rise!
# of new or rehired employees not paid in
current month-late EPAFS
 Dollar value of overpayments to employees

◦ Over last three (3) quarters:
 90 instances of administrative errors (e.g. late, terminations,
late LOAs, late EPAF and EPAF errors, etc) resulting in
overpayment of approximately $130K
 155 instances of reduction of pay due to negative leave
resulting in overpayments of approximately $60K
March 12, 2014
57
What can you do to help?



Encourage employees who have a name
change to get a new SS card and present to
HR
Include cover sheet with submissions to
payroll letting us know sender and contact
information
Encourage use of SSB for:
◦
◦
◦
◦
W-2 consent
Address change
NC-4, W-4 review and changes
Paystub review
March 12, 2014
58
What can you do to help?
Use the Comment section of EPAFS,
termination forms and LOA forms to add
clarity.
 Submit EPAFs timely and seek clarification
if you are unsure of the dates to use.

March 12, 2014
59
Discussion Questions





How do you ensure that your payroll expense $$
are correct-additions/deletions from semimonthly payroll
Are there tools/reports that you think would be
beneficial to help you manage payroll
transactions? Who uses them?
What could payroll do to improve our customer
service?
Are there additional resources you’d like to see
on the Payroll web site to help you with your job?
Why does Payroll office receive W-4, NC-4 for
individuals who never have/get jobs?
March 12, 2014
60
What can WE do to help?
March 12, 2014
61
SUPPLEMENTAL
SLIDES
March 12, 2014
62
International Employees
March 12, 2014
63
International Employees
March 12, 2014
64
International Employees
March 12, 2014
65
International Employees
March 12, 2014
66
Mass Time Entry (MTE)
Used to enter non-regular pay
 Accessed through One-Stop
 Employee Pool
 Submitter/Approver/Proxy
 Some restrictions to Earnings codes

March 12, 2014
67
Banner Security Access
for Webtime, MTE
Step 1:
 One Stop > Tools > Employee >
Reporting Structure
 Make certain your supervisor has
“claimed you”.

If not, have supervisor go to Reporting
Structure and key in your Banner ID
March 12, 2014
68
Banner Security Access
for Webtime, MTE
Step 2: Accept your supervisor
One Stop > Tools > Employee > Reporting
Structure
Click on “Approve”
March 12, 2014
69
Banner Security Access
for Webtime, MTE
Step 3
One Stop > Tools > Banner > Banner
Security Request > Request Security >
Human Resources
March 12, 2014
70
Banner Security Access
March 12, 2014
71
Special Earnings

Paid on First Semi:
◦ Longevity
◦ Extra pay for OT, Shift, Beeper and Longevity
◦ SOM MTE

Paid on Second Semi:
◦ E/C 909-NCFlex Life Insurance Imputed Income,
calculated on coverage over $50K based on
employees age and amount of coverage.

Paid on Both Semis:
◦ Non-cash
 Car/Phone Allowances
 Taxable SFB Med Direct Bill
March 12, 2014
72
Pay Information
March 12, 2014
73