Benefits Processing and Reconciliation Training October 2014

1. Benefits Processing and Reconciliation Training October 2014

2. Overview • Seminar Objectives: • Systems of Authority Overview • PMIS to CIPPS Interfaces and Reconciliation – (includes preview of upcoming New Hire interface) • Healthcare Benefits and Reconciliation • Deferred Comp Processing and Limits • VRS Benefits and Reconciliation Payroll

3. Overview • Flight Crew Jump Rope http://www.youtube.com/watch?v=epYsM9RzKwM Payroll

4. Overview DOA VRS DHRM ICMA Payroll

5. System of Authority • System of Authority: • System used for initial entry of a specific item • System owner has the authority to validate the information and make changes • System owner is accountable for maintaining and reporting the information Payroll

6. System of Authority • What is the System of Authority for Overtime Eligibility? • PMIS (or other Human Resource System for Non-PMIS agency) Payroll

7. System of Authority • What is the System of Authority for Health Insurance Elections? • BES (Benefits Eligibility System) Payroll

8. System of Authority • What is the System of Authority for the employee’s service record used for leave purposes? • PMIS (Next Anniversary Leave Date) Payroll

9. System of Authority • What is the System of Authority for the employee’s service record for retirement? • VNAV (myVRS Navigator) Payroll

10. System of Authority • For salaried employees, what is the System of Authority for Annual Salary amount? • PMIS (or other Human Resource System non-pmis agency) Payroll

11. System of Authority • What is the System of Authority for retirement plan eligibility? • VNAV (myVRS Navigator) Payroll

12. System of Authority • What is the System of Authority for Employee Identification Number? • PMIS Payroll

13. System of Authority • What is the System of Authority for VSDP Eligibility? • VNAV – My VRS Navigator Payroll

14. System of Authority • What is the System of Authority for tax withholding information? • CIPPS Payroll

15. System of Authority • What is the System of Authority for retirement plan eligibility? • VNAV (myVRS Navigator) Payroll

16. System of Authority • What is the System of Authority for purchase of prior service information? • VNAV (myVRS Navigator) Payroll

17. PMIS to CIPPS Interface • Timing: • Day one the information is keyed in PMIS. • That data is captured overnight and passed to CIPPS the night of Day 2. • Day 3 successful updates will have been made to CIPPS. Payroll

18. PMIS to CIPPS Interface Payroll

19. PMIS to CIPPS Interfaces Payroll

20. PMIS to CIPPS Interface • The U082 Report, PMIS/CIPPS UPDATE LISTING, reflects the old and new PMIS values of the fields that are being updated. An indicator of ‘Y’ in the ‘out of suspense’ column indicates transactions released from the suspense file. This report sorts and page breaks by PMIS transaction effective date. For transactions with an effective date prior to the current pay period, the heading indicates that they are retroactive transactions and manual action or pay adjustments may be needed. Payroll

21. PMIS to CIPPS Interface • The U080 Report, PMIS/CIPPS TRANSACTION ERROR LISTING, identifies transactions not processed that need to be entered manually into CIPPS. This occurs for records for an employee who has already been terminated, a non-salaried employee, or for a company/employee number combination that is not found in CIPPS. Payroll

22. PMIS to CIPPS Interface • The U084 Report, PMIS RECORDS WRITTEN TO CIPPS SUSPENSE, lists future dated PMIS transactions that have gone into the CIPPS suspense file. It will list only the employee name and number. The detail will be reported when they are released from the suspense file, according to the PMIS effective date, on the U082, with an indicator of ‘Y’ in the ‘out of suspense’ column. Payroll

23. PMIS to CIPPS Interface • Report U181 “Special Pay 99 Contributions Base Transactions Pending” records the transactions that will update SP 099 at a later date. Payroll

24. PMIS to CIPPS Interface • Report U180 “Special Pay 99 Contributions Base Transactions Released” has been created to identify transactions as they are released from suspense to update SP 099 in CIPPS. It should be noted that the initial PMIS event that generated the transaction to update SP 099 may have been edited or superseded by another transaction in PMIS. If so, it is possible that the transaction released is no longer correct or necessary. Review and make manual adjustments as necessary in CIPPS. Payroll

25. PMIS to CIPPS Interface • Reports U053/U077: • PMIS/CIPPS Data Discrepancies • Can be requested by individual agency at any time. Send email request to payroll@doa.virginia.gov. • Reports are run weekly on Friday night for any agency that requested it during the week. Payroll

26. PMIS to CIPPS Interface • Challenges: • Timing – coordination between HR/Payroll essential. • We interface Overtime Eligibility – not FLSA • HR needs to be careful when keying the effective date for a separation. This should be the day after the employee’s last day. • HR also needs to be careful when keying Employee Months and Pay Schedule • Address1 in PMIS has 35 Char. CIPPS has 30. Payroll

27. PMIS to CIPPS Interface • DHRM Definition for Overtime Eligibility Field: • Code indicating overtime payment or compensatory leave approval for compensation at straight time, or no overtime at all, or payment at time and one-half for all hours over forty worked in a seven day period. By default, the employee's assigned role determines the approval status for all employees of a given role, but the code can be overridden for a given position and incumbent(s) by agency request. The Role Overtime Eligibility Code below is the default role-based code determining the approval status for all employees of a given role. If it differs from this code, then the code here is a position-based override initiated by agency request, otherwise, the code here will equal the Role Overtime Eligibility Code. “C” - Straight Time Overtime Is Pre-Approved“N” - Overtime Is Not Pre-Approved“Y” - Time and 1/2 Overtime Is Pre-Approved Payroll

28. New Hire Interface • Effective October 14, 2014 we will begin a New Hire Interface for salaried employees. • New Hire records will be placed into frequency 89. • New Hire records will be Non-Auto • New Hire records will be Pay Type “3” • Agencies will have to “activate” the record by changing those three things and adding tax information, direct deposit, etc. Payroll

29. PMIS to CIPPS Interface • Report U179 • Shows the key information for the new hire record that was established. • Messages on the right denote whether the record was rehired, or if the effective date is retroactive or mid-pay period. • There is a Report U178 – but agencies won’t have them often Payroll

30. PMIS to CIPPS Interface • Challenges: • Care should be taken with Pay Schedule and Social Security Number • Name in PMIS should match Social Security card to avoid W-2 penalties • If HR enters a new hire and makes a change in the same day – the change will kick on U080 error listing • If BES election is also keyed the same day the election will kick on the U130 error listing Payroll

31. PMIS to CIPPS Interface • Reconciling: • If PMIS Salaried Base Pay is reconciled to Salaried Regular pay at the time of certification – you will know that the CIPPS/PMIS interfaces updated correctly. Payroll

32. PMIS to CIPPS Interface • Questions? Payroll

33. BES to CIPPS Interface • Premium Conversion – Deduction #24 • Healthcare Reward – Deduction #25 • Agency Health Insurance – Deduction #26 • Dependent Care – Deduction #21 • Medical Spending Account – Deduction #22 • Flex Fee – Deduction #23 Payroll

34. BES to CIPPS Interface Payroll

35. BES to CIPPS Interface U131 BES/CIPPS Update Listing • Successful updates to CIPPS. Be sure to look at the BES transaction effective date. Some items may require retroactively collecting premiums. (Be careful if from previous FY) • Prior adjustments should be collected immediately. • How to handle retroactive adjustments for Healthcare Reward Payroll

36. BES to CIPPS Interface U130 BES/CIPPS Error Listing • Care must be taken when entering these missed updates manually. • Codes are entered on HMCU1, then Healthcare Reward must be entered on H0ZDC. The amount of Deduction #24 needs to be manually reduced for the reward. • Note: utility field is no longer required to make this a pre-tax deduction – all zeros • Enter 06/30/20XX in the “End Date” for deductions #21, #22, and #23 Payroll

37. BES to CIPPS Interface Terminations: • These are monthly deductions. If someone terminates in the first half of the month, you will need to remember to double collect the premiums • Coordination of information is critical from HR. Particularly for employees transferring to another agency after the first pay period. Payroll needs the information ASAP, so they can double collect premiums Payroll

38. BES to CIPPS Interface Reconciliation: Payroll

39. BES to CIPPS Interface Reconciliation: • Amounts will be compared to the BES employee record and variances reported on a DHRM report - PREMIUM REWARD DISCREPANCIES. The primary purpose of this report is to ensure the amount covered by the HIF matches that which has been approved. This report will be placed in each agency’s folder in DHRM’s repository within the first couple of work days of each month. • As part of the monthly Health Care Reconciliation procedure this report must be printed, reviewed, signed by the Fiscal Officer, and submitted along with the monthly Health Care Reconciliation certification. Absence of this report or the Fiscal Officer’s signature will constitute an incomplete submission. Payroll

40. BES to CIPPS Interface Report U075 – Flexible Reimbursement Accounts Error Report • Available the day before payday • Errors need to be reviewed and corrected manually in CIPPS Payroll

41. BES to CIPPS Interface • According to IRS guidelines (Revenue Ruling 2003-43, 2006-69), all Card transactions must be validated. The TPA is permitted, under the IRS guidelines, to automatically validate (auto-adjudicate) certain transactions. In the event that the TPA cannot auto-adjudicate card transactions, the TPA requests supporting documentation from the employee. If documentation is not received, then the outstanding transaction amounts must be reported to the Internal Revenue Service (IRS) as income on the employee’s W-2 form, and are subject to all applicable employment taxes (including federal and state income tax withholding and FICA). Payroll

42. BES to CIPPS Interface • Questions? Payroll

43. Deferred Comp Interface Payroll

44. Deferred Comp Interface How often? • Interface updates once a month – usually two days after the first working day of the month • Date is on our calendar Payroll

45. Deferred Comp Interface • Hybrid employees are not automatically enrolled • Limited to an annual amount – 457 Plan • $17,500 for under 50 - $23,000 for 50 and older • If Birthdate is corrected – check these goals • 457 limit is applied to Deduction #38 and Deduction #16 (Hybrid Voluntary Contributions) combined • 457 goal amount maintained on H0BES screen • All employee automatically have $17,500 goal – additional goal amounts keyed on H0ZDC Payroll

46. Deferred Comp Interface • U062 – Deferred Comp/Cash Match Update Listing • ICMA is responsible for reporting the amount to be collected • If you see something “fishy” you can send email to payroll@doa.virginia.gov • If employee expected something different, you can send email to payroll@doa.virginia.gov • No cash match for Hybrid Employees not contributing full 4% Voluntary Contribution Payroll

47. Deferred Comp Interface • U063 – Deferred Comp/Cash Match Error Listing • Must be dealt with manually • Key amount shown on the report • Determine employee’s age at the end of the current year and apply the appropriate goal • Key the appropriate cash match for the employee using deduction #45. Hybrid not eligible unless contributing 4%. Wage employee not eligible Payroll

48. Deferred Comp Interface • Cash Match • Updated this year. Cash match will not be taken if Deduction #38 is not coming out. • No longer a need to cut off the cash match for employees on LWOP. Leave the deduction on. • The deduction is to be half of Deduction #38 to a maximum of $20 per pay period • This deduction will automatically correct itself if the value keyed on H0ZDC does not reflect reduction for amounts less than $20 Payroll

49. Deferred Comp Interface • Leave Payout Deferrals: • Employees must be enrolled in Deferred Comp at least one month prior to the deferral • This does not make entire amount tax free • Use the Deferred Comp Maximum payout spreadsheet to determine • If entire amount of deduction #38 cannot be withheld after taxes, it will not process Payroll

50. Deferred Comp Interface • Employees transferring to another agency • Transfer Form no longer exists • Employee will receive a letter from VRS when the termination is received in VNAV saying that they must contact ICMA to start their deduction again at the new agency • Employees who wish to make up deductions at a later date can do so with the “one time deferral” process, however, they cannot receive cash match for missed periods. Payroll