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Best Practices for Payroll Year End
Housekeeping
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The last 10 minutes have been reserved for Q&A but ask questions as needed
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A copy of today’s slides and additional resources are available for download
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APA RCH Certificate & CPE credits will be available upon completion of our session survey
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Your Speaker:
Agenda
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Year End Timeline
Year End Seminar Commonly Amended Items
Health Care Coverage Memo
Company Level Validations
Employee Level Validations
Planning Ahead
Q&A
Year End Timeline
Year End Timeline
November
• Verify your Payroll Schedules, Management Report •
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Schedules, G/L Interface Schedules and Purge Options Verify data on Quarterly Tax Verification Letter
Review new limits for deferred compensation, goal limits and special calculations Request a Preview Wage & Tax Register and Preview forms W‐2
Consider the ADP Direct Mail Service for W2s and eliminate the need to mail all W2s out yourself.
Year End Timeline
December
• Process Year End bonus and adjustment payrolls and verify their accuracy • Submit new SUI and workers compensation rate changes on the ADP Support Center • Verify that all manual checks, voided checks and special compensation moneys have been accurately submitted to ADP • Review the final 2014 payroll for accuracy
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Year End Timeline
January
• Review W‐2 forms and distribute by January 31 • Verify 2015 schedules • Verify any changes to your employee’s tax exempt status for 2015 if so complete new W‐4s for each employee.
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Year End Seminar
Year-End Seminar 2014
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Year-End Seminar Objectives
Upon completing this seminar, you will be prepared to do the following:
Identify the source documents needed for quarter‐
end and year‐end closing.
Identify key dates and deadlines.
Identify documents that require a response to ADP.
Describe how ADP processes adjustments.
Reconcile quarter‐end and year‐end reports.
Describes selected special compensation options.
Summarize changes for this year and identify what’s new for next year.
Year-End Seminar on The Bridge
I am already registered for mine next month.
I attend their seminars every year ‐ they are beneficial to getting thru the year end process. I go to these every year (year 10). I have always come out with something new. There are always new issues, concerns and requirements at year end. You'll walk away with checklists to help cross your T's and dot your I's. I do it every year to get a complimentary preview wage & tax register for all company codes which can be very helpful.
Commonly Amended Fields
Commonly Amended Fields
Top 5 reasons for Out of Sequence (OOS) PR’s and Amendments: 1. Health Care Coverage Memo
2. Special Compensation:
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Roth 401K
Stock Options
GTL
ER HSA
Tax exempt items
Manual or voided check adjustments
Company level corrections
Employee level corrections
Health Care Coverage Memo
Health Care Coverage Memo
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The total amounts paid by the employer and the employee for each employee's coverage must be reported as one amount on each employee's W‐2
The amount is displayed in Box 12 of the W‐2 with code DD
Memo codes and accumulators for these amounts were created for all active company codes Instructions for each payroll product are available to clients on the Support Center.
Health Care Coverage Costs
Health care coverage costs are displayed in Box 12 as code DD.
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Health Care Coverage Costs
Health care coverage costs are displayed on the Master Control as an accumulator
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Report Health Care Coverage Costs
Health care coverage costs are displayed in the quantitative section of the Wage and Tax Register as Health Plans Value.
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Health Care Reform Tools
ACA Compliance Timeline for Employers
http://www.adp.com/health‐care‐reform/
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Company Level Validations
Company Level Validations
Critical Tools in Company Level Validations
Quarterly Tax Verification Letter
Master Control Report
SAMPLE: Quarterly Tax Verification Letter
Quarterly Tax Verification Reminders
Company Level Review Checklist:
• Are the reports being sent to the correct person?
• Review Company level information, Tax Features, and Company Features
• If you use ADP’s Tax Filing Service, verify the list of responsibilities for deposits and filing status.
• Do you know your Pension Indicator?
Quarterly Tax Verification
Pension Indicator
Company level Pension Indicator can be found on you Quarterly Tax Verification
If you wish to change your company option, then go to https://support.adp.com click on payroll and click Contact ADP
SAMPLE: Master Control Report
Master Control Report
Company Level Review Checklist:
• Quarterly totals should match the Wage and Tax Register quarter to date. Year‐to‐date amounts should match the Wage and Tax Register year‐to‐date and Form W‐2. 1.
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Gross wages
Taxes
Special Compensation
• Correct negative conditions: 1. Negative FIT Tax
2. Negative FICA Tax
3. Negative 3PSP
4. Medicare Wages Less Than Social Security Wages Employee Level Validations
Employee Level Validations
Critical Tools in Employee Level Validations
Master Control Report
Wage and Tax
Preview Forms W‐2
SAMPLE: Master Control
SAMPLE: Wage & Tax Register
Preview Forms W-2
Preview Wage and Tax Register and Preview Forms W‐2:
• Preview W2’s are available to anyone attending the Year End Seminar for free!
• Or they can be requested via the Support Center for a fee
Employee Level Validations
Employee Level Review Checklist:
• Social Security Numbers (validate on preview W2)
− Administrators can also add a check stub message or portal message for Employee’s to validate SSN on portal
• Mailing Address
• State Taxability
• Special Compensation and Reportable Items
• Tipped wages
• “Negative” tax or wages:
− Negative FIT Tax
− Negative FICA Tax
− Negative 3PSP
− Medicare Wages Less Than Social Security Wages Data Import Tools
ADP has all the tools to make your YE process easier through data import tools
• Special Compensation/Reportable items: VHC, GTL, ER HSA….
Access the Support Center
Data Import Tools
Search for Data Import
Find Importing and Exporting Employee Data in the Resources tab. Data Import Tools
Data Import Tools
If you need further assistance access the online User Guides and FAQ’s.
Planning Ahead
Planning Ahead
Year End Guide
Year End Guide
Stay Connected!
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Attend an ADP Pro Year‐End Seminar
Take advantage of on‐demand recordings of this conference
Connect with other clients on The Bridge sponsored by ADP ™ NOTE: to get credits for attending the conference, please complete the survey. Questions
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