|
|
|
|
2009 MVECA USPS FISCAL YEAR ENDNOTE: You can not start a July payroll until the following steps are completed!!!!!
Before fiscal yearend: _____1. When entering large sums, for example - severance pay. If the RATE exceeds 9,999.99 you will need to add two lines in UPDCAL_FUT or UPDCAL_CUR for severance pay. Example- Total Severance pay is 15,000.00 your screen in _CUR or _FUT should look like:
Type Units Rate Amount Description MIS 1.00 9000.000 9000.00 Severance MIS 1.00 6000.000 6000.00 Severance
The AMOUNT can exceed 9999.99. Therefore, the daily rate could be used to calculate the severance pay for a single UDPCAL transation:
Type Units Rate Amount Description MIS 60.00 250.000 15000.00 Severance
_____2. Be certain to pay non-cash earnings to retiring/terminating employees with greater than $50,000 Life Insurance before their final pay. Add an NC1 pay type in UPDCAL_CUR or UPDCAL_FUT.
From IRS Publication 15-B (2009): Figure the monthly cost of the insurance to include in the employee’s wages by multiplying the number of thousands of dollars of insurance coverage over $50,000 (figured to the nearest $100) by the cost shown in the following table. Use the employee’s age on the last day of the tax year. You must prorate the cost from the table if less than a full month of coverage is involved. Table 2-2. Cost Per $1,000 of Protection For 1 Month Age Cost Under 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .05 25 through 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .06 30 through 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .08 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .09 40 through 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 45 through 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 50 through 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 55 through 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 60 through 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 65 through 69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.27 70 and older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.06 You figure the total cost to include in the employee’s wages by multiplying the monthly cost by the number of full month’s coverage at that cost.
EXAMPLE: District provides $100,000 group term life for the Superintendent. The Superintendent is 54 years old on the last day of 2009 and is retiring effective July 1, 2009. The non cash earnings would equal (.23 x 50 x 6) = $69.00. FORMULA- (cost/1000 for 1 month X amount of coverage over 50,000/1000 X months of coverage)= non cash earnings
Add NC1 pay type to UPDCAL; tax option and retirement – not required. If added in UPDCAL_FUT the amount will be added to the Total Gross Pay from Future Data total and deleted from Total gross for “Active” jobs. NC1s will not be added to the Gross Grand Total for this payroll in INICAL.
In the above INICAL, an NC1 pay type was added for $69.00 in UPDCAL_FUT. The actual “Active” jobs total initialized is $620,277.27. The best option is to add the NC1 pay types in UPDCAL_CUR after INICAL then INICAL totals are correct for the next payroll.
Any NC1 amounts are taxed by Medicare and Social Security, as applicable. No Federal, state, or OSDI tax is deducted from this amount. The software provides the ability to withhold city tax on non-cash earnings. This can be activated by setting the "Tax non-cash earnings" flag to Y (yes) on the city tax record in the USPSDAT/DEDNAM program.
The non-cash earnings amount will not be included in the gross pay amount, nor
in the gross totals found on PAYRPT or PAYSUM. However, the non-cash earnings
amount is being included in the adjusted gross figure because the amount is
considered part of the taxable gross even though no tax is being withheld on it.
Both the PAYRPT and PAYSUM reports will provide a total figure of all non-cash
earnings in the total section. This extra total will help in balancing purposes.
During the CHKUPD program, the total payment showing for NC1, will be added to the total and taxable gross figures on all the tax records including those for which no tax was withheld. City tax deduction records total and taxable gross fields are increased by this amount regardless of how the “tax non-cash earnings” flag is set in DEDNAM. If the city in question does not consider the non-cash earnings for city taxation purposes, the district will have to reduce the total and taxable wage figures for these employees. The JOBSCN to-date figures (screen 3 of 3) will also be updated in the Non-cash earnings fields.
_____3. Go into USPSDAT/USPCON and verify that your last year advance amount is zero and no asterisk “*” appears in the advance field (2nd screen). If the amount is not zero, please contact MVECA.
Payroll Processing: STRS Advance Mode : * STRS Advance Amount : .01
_____ 4. EMIS STAFF REPORTING (see MVECA YEAREND 2009 “N” EMIS STAFF REPORTING CHECKLIST for complete details)
_____5. Surcharge report will be useful to review in advance. The surcharge minimum level is $35,800. SURCHARGE will not recalculate the 2% district SERS payroll maximum. Type SURCHG at the Menu>
_____6. Run STRSAD as a PROJECTION only. At this time, you will verify that the correct certified staff will be included in the advance.
_____7. Create calendars for the 2009-2010 school year. Use USPSDAT/ CALMNT. TIP: Create your most basic calendar that would work for majority of your employees and use the COPY command
_____8. Build NEWCNTs for July 1 start dates. Purge NEWCNTs before initializing the pay period that includes July 1. If you intend to use NEWCNT for new employees; DO NOT add a contract amount to JOBSCN.
Month End Closing:
_____9. Run RETIRE/SERSREG option. Do not create a tape file at this time. Verify that the total contribution amounts listed on the report equal the total deduction checks for the withholding plus any warrant checks written for pickup on pick-up. Confirm that contributions equal earnings times 10%. Verify the days. If necessary, adjustments can be made using USPSCN/ATDSCN.
_____9a. Once satisfied that the data is correct run RETIRE/SERSREG again and answer YES to create the tape file to clear the totals and create the submission file called SERS.yymm.
____10. Run STRSMONTH to clear the month to date totals for STRS.
____11. Balance the payroll account.
____11a. Run the CHKSTA or PAYREC program to reconcile checks.
____11b. Run the USPRPT/CHKSTS program to generate an outstanding check register. Verify that you balance with the bank.
Quarter End Closing:
____12. Generate and print the demand (option N) of QRTRPT. The report shows quarter, fiscal, and annual totals. Check totals for accuracy. DO NOT select any of the option(s) to zero totals.
____12a. Using the “TOTALS” section of QRTRPT, the gross and adjusted gross should balance using a manual calculation: Gross – Annuities = Adjusted gross calculated
____12b. Deduction totals should equal the total of all deduction checks written for the period(s) being checked.
____12c. Total gross showing on QRTRPT should equal the total of all payroll clearance checks created during CHKUPD for the quarter. Subtract gross for payroll checks voided during the quarter from payroll clearance checks written
____12d. Verify the electronic transfers of federal and Medicare payments
____13. Run PAYDED to generate a non-zero deduction report. To execute this, set the “Payment option” to “A” and leave the ‘payment cycle’ and ‘deduction codes’ fields blank. View and verify the DEDRPT.TXT to make sure there are no outstanding deduction amounts.
____14. Balance the W2REPT quarterly to minimize problems at calendar year-end.
_____14a. Run the program W2PROC. Check the W2ERR.TXT report for error.
Do not generate tape. Answer NO to the question below: Do you want to create a W2 tape file (Y/N <Y>): N ____14b. Complete and balance the W2REPT Reconciliation Worksheet for the quarter.
____14c. Balance the deduction totals (taxes and annuities) on the W2REPT.TXT report with the totals from the DEDRPT.TXTs report from the quarter.
____14d. Balance the gross amounts on the W2REPT report with the PAYRPT.TXTs for the quarter.
____14e. If errors are discovered, check employees that had exception processing during the quarter such as voided checks, error adjustments, or manual changes in USPSCN. The AUDRPT program can be useful in identifying these problems.
____15. Run the ODJFSRPT program and generate a report only by answering “N” to a tape file.
____15a. When all data is correct, run the ODJFSRPT program again, this time indicating that you want to create a tape file for submission to ODJFS and QTD totals on USPSCN/DEDSCN will be cleared _____16. PROCESS THE STRS ADVANCE after all pays in June are complete.
_____16a. If a job will be docked in July or August, put the full amount of dock in the DOCK NEXT PAY field in JOBSCN while you are processing STRSAD. This will calculate the advance contributions correctly. Leave this amount in until the STRSAD is complete.
_____16b. If you are aware of contracts that will be paid off early, change the number of pays before processing STRSAD. You may need to force the per pay amount if you want to make a large payment on the final pay.
_____16c. The following conditions must be met for a job to advance.
Manual adjustments may need to be made to JOBSCN or calendars for the correct jobs to advance. If the first days of school were not included on the first pay on a contract; then days worked will not equal work days when the last pay is initialized. For example: new contracts for teachers were not purged until after the last pay on the old contract; first day of school was 8/29/07; the first pay on contract is 9/15/08 with a period start and end date of 9/1-9/15/08. In this situation, work days between 8/29/07 and 9/1/07 were not counted as days worked on this contract. Run RPTSUM to see the current count for all work days. Determine how many days remain to be initialized before 6/30/08. If work days will not equal days worked, there are 2 options to rectify work day shortages:
_____16d. Verify the status of the part-time/full -time fields on the 450 deduction records. Employees flagged, as full-time must have at least 120 service days to be granted a full service credit toward retirement. Employees who do not fulfill these requirements will be granted a percentage of a year’s service credit as described by the STRS Employer’s Manual. If you are in doubt about an employee’s part-time or full-time status, contact STRS to obtain a ruling.
_____16e. Run the STRSAD program and select the projection only (option 1). This option can be run as many times as needed. The program produces three reports: STRSAD.TXT, STRSAD.RPT, and NONADV.TXT.
§ Complete fiscal year end report for all STRS members. § Check each employee service credit and FYTD totals. § At the bottom of the report, there is an amount labeled Total Taxed + Non-Taxed. The amount shown should equal the amount deposited with STRS during the fiscal year plus the amount of accrued contributions.
_____16f. Once the data has been verified for the advance, run the STRSAD program again, this time selecting option 2. This option creates the tape file called STRSAD.yy06 that will be submitted to STRS . Option 2 also flags eligible jobs as in advance mode until the last payment in the contract has been paid. At that time the advance flag is turned off and the job is no longer considered in advance mode. Final versions of the STRSAD.TXT and STRSAD.RPT reports should be archived (burn to CD or print).
_____16g. If a DOCK NEXT PAY was added to JOBSCN, contact fiscal to modify the job to remove the amount.
_____16h. Execute ANNSTRSSND from the Menu prompt
_____16i. Complete the STRS Recap sheet using the totals from the STRSAD.RPT report. Note that totals for regular and rehired retirees are separated on the report since the STRS Recap sheet requires totals for each.
If you used the online Recap Sheet last year, you will not receive a paper copy of the form.
Note: Send the original recap sheet DIRECTLY to STRS or you can register online to submit your recap sheet electronically:
STATE TEACHERS RETIREMENT SYSTEM275 E BROAD ST COLUMBUS OH 43215-3771
NOTE: Retain a copy of the recap sheet for your records.
QUARTER END CLOSING COMPLETION
_____17. Run the SURCHG program if desired. This program is designed to assist you with verifying the SERS surcharge calculations and GAAP reporting.
_____18. Generate desired reports. At a MINIMUM it is suggested that you archive
Ø USPRPT/EMPMST (all data) Ø ERNREG (all data for the quarter) Ø QRTRPT (all data - demand) Ø BENOBL/BENEMP Ø CHKSTS
Fiscal Yearend Closing
VERY IMPORTANT!!!. _____19. Run PAYCOPY this backs up your payroll files for the fiscal year!
_____ 20. Run BENACC to reset, pay or convert personal leave days (optional)
_____21. Generate reports for GAAP
_____22. Run USPAUDIT to send your payroll files to the auditor.
_____23. Run the QRTRPT program again, this time clearing all data for the quarter and the fiscal year. (Option F) IMPORTANT STEP...MAKE SURE YOU DO THIS!!!
_____24. To insure the data cleared correctly, run the QRTPRT program again (option N) and verify that the fiscal year to date totals on the report are ZERO.
POST FISCAL YEAR END CLOSING
IMPORTANT: RESTRICTIONS DURING THE ADVANCE
1. Modifications cannot be made to certain fields on the jobs when they are in the advance mode. 2. Only certain Pay Types can be processed on advanced jobs:
MIS – miscellaneous pay DCK – dock pay OT – overtime pay SHP – shift premium TRM – termination pay POF – pay off of total accrued wages NC1 – non-cash life insurance premium
GENERATE AFTER EACH PAYROLL DURING THE ADVANCE
After EACH payroll generate and save the CHKSTRS. This report will assist you in finding errors if your advance does not come out after the final pay. If any differences they should be reported to STRS as a prior fiscal year end correction if necessary.
IMPORTANT – VERIFY/FOLLOW-UP FOR STRS AFTER YOUR FINAL PAY OF THE ADVANCE
Verify in the USPSDAT/USPCON the amount on the 2nd screen is zero and the advanced “*” is gone.
Payroll Processing: STRS Advance Mode : * STRS Advance Amount : .01
After you begin to process your payrolls for the next fiscal year, it is VERY important that you do not AUTOPOST any payrolls until USAS has closed for FY2009. |
