USPS Calendar Year-end Review

1. USPS Calendar Year-end Review Calendar Year 2018

2. Pre-W2PROC • OSDI abbreviations • Include OSDI code number in first part of description in USPSDAT/DEDNAM

3. Pre-W2 PROC – City taxes • NEOMIN can submit some city taxes for your district: • WARREN • HUBBARD • NEWTON FALLS • ASHTABULA • GENEVA • CANFIELD

4. Pre-W2PROC • Tax Entity Codes: • WARRE for WARREN • HUBBA for Hubbard • NFALL for Newton Falls • ASHTA for Ashtabula • GENEV for Geneva • CONNE for Conneaut

5. Pre-W2PROC Verify ‘Entity code’ in USPSDAT/DEDNAM is completed for magnetic reporting to any city.

6. Pre-W2PROC See the following web sites for complete details reporting for RITA and CCA: http://www.ritaohio.com/resources/rita-rules-and-regulations http://ccatax.ci.cleveland.oh.us/?p=rulesregs#Section301

7. Pre-W2PROC • CCA/RITA Reporting • Verify values in USPSDAT/DEDNAM are set • The three-digit RITA/CCA code is still required for tax data to be included on a submission file

8. Pre-W2PROC – RITA/CCA Should be blank These fields should be blank if city tax is not for CCA or RITA

9. Pre-W2PROC • Verify DEDSCN “Employ/Residence” value on all CCA & RITA city deductions • Employed – C, Resident - R

10. HEALTH INSURANCE DEDNAM Must be a Y if it is to be reported on W2 as health coverage

11. Health Insurance • Who needs to Report Health Insurance on W2s: • Any employer that reported 250 or more W2s for 2015 • What needs to be reported? • Employer paid amounts for MEDICAL • Employee paid amounts for MEDICAL • Amounts employee paid by personal check • Will be reported as one amount

12. Health Insurance • If employee was not paid thru the Summer or at another time of year • Did employee pay for part of their insurance with personal check? • The amount can’t go into Deduct YTD total because this field is used for balancing annuities

13. Health Insurance • Add the amount from the employee to Board Share YTD in Health insurance deduction • Board Share amount may not have gone thru payroll – Add it to BoardShare YTD

14. Health Insurance Add amounts paid by personal check and board amounts here

15. Health Insurance • What is NOT Reported: • Dental premiums • Vision premiums • Life insurance premiums

16. Health Insurance –optional way The total amount for the employee’s health insurance can be entered in the Federal Tax DEDSCN in Emplr Hth: field. This will override other deductions. This can be added by a spreadsheet – must have 9 digit employee id number and the amount.

17. Pre-W2PROC • Fringe benefit amounts • Contact legal advisor with questions • Enter taxable amount in fringe benefit field on the federal tax record • Adds to federal taxable gross

18. Pre-W2PROCCost of Life Insurance over $50,000 • Before last pay in 2018 • Cost of group-term life insurance over $50,000 coverage is taxable • Calculate the cost: • Amount of insurance minus 50,000 (A) • Find cost per $1,000 of coverage per month • Table from IRS Pub. 15-B

19. Cost of Life Insurance This is from 2018 Pub 15-B

20. Pre-W2PROCCost of Life Insurance over $50,000 • Example – 55 year old with $150,000 worth of group-term life insurance that has worked all year • 150,000-50,000 = 100,000 • 100,000/1,000 = 100 • .43 X 12 X100 = 516.00 • Add NC1 payment in UPDCAL_FUT • Enter “2” for taxes and “N” for retirement

21. Pre-W2ProcCost of Life insurance over $50,000 FUTPAYREPORT INICAL REPORT Total Active Job gross would have been 18,655.26 without NC1 payment. NC1 payments will not increase payroll gross

22. Pre-W2PROCCost of Life Insurance over $50,000 • NC1 payments show on FUTPAY report • Will show name, units, unit amount and Total Pay amount, Pay Description • Will NOT show “Regular Pay Account or Amount charged on FUTPAY or CURPAY reports

23. Pre-W2ProcCost of Life insurance over $50,000 • Life insurance amounts will show on PAYRPT • Will increase taxable gross on City Tax • If the city does not tax non cash amounts – city taxable gross will need to be decreased

24. Running W2PROC • Run W2PROC & balance before last pay of 2018 has been completed • User must enter district data • Name • Address • Identification numbers • Federal • Ohio • Verify values on W2REPT.TXT

25. Running W2PROC • User must decide • Sorting • Any sort is acceptable for electronic filing • Results will be in the following order: • Employees without Medicare • Employees with Medicare • REPORT TOTALS are the totals to balance

26. Running W2PROC

27. Running W2PROC • Federal tax payments deducted from Disability payments (third party sick leave payments) • Did another entity report taxes withheld for third party sick payments? • Was Federal tax deducted? • If disability insurance was deducted after tax as a regular deduction then sick leave payments should be nontaxable • If disability insurance was deducted pre-tax, then sick leave payments are taxable

28. Running W2PROC

29. Running W2PROC • Kind of Employer S S

30. Running W2PROC This does not pertain to us – it will be blank Can be Yes or No

31. Running W2PROC • Additional deduction codes • Allows districts to print additional information in box 14, “Other” • Six can be entered • Leased vehicle value is always included • Other user values are secondary • Prints the first 3 for each employee in the order entered • Examples are Union Dues, United Way and Retirement • Alignment Forms – Not Needed

32. Running W2PROC

33. W2PROC • Prompts have been added to W2PROC when “Y” is selected to Create Tape File: • Contact name – Your name or treasurer’s • Contact phone number • Contact phone extension • Contact fax number • Contact email address • This is required data

34. Running W2PROC • Program used to generate • W2REPT.TXT • W2ERR.TXT - maybe • W2FORM.TXT – Print Forms • W2FORM.DAT – To print laser W2 • W2CITY.DAT – Used to submit city taxes • W2CCA.SEQ – Created with tape • W2RITA.SEQ – Created with tape • W2TAPE.SEQ – Created with tape

35. Pre-Closing – See Balancing Sheet • Run ERNREG for everyone from 1/1/18 to now • Run QRTRPT – Do you want the report by individuals = N • Run CHKSTS – Sort by Deductions, Print Option = All, Check Type = Deductions & Group Deductions for the whole year • Run CHECKS - Dates – 01/01/2018 to 12/31/2018, All payroll checks • Run Non-Zero PAYDED – PAYDED as projection with no deductions and no Pay cycles

36. Pre-Closing Balancing -ERNREG Amounts in this column on ERNREG should be used for balancing to W2Rept These amounts are what has been withheld and run thru payroll.

37. Pre-Closing Balancing - QRTRPT Amounts in this column on QRTRPT should be using for balancing to ERNREG & W2REPT Theses amounts are from DEDSCN

38. Balancing – QRTRPT & ERNREG • QRTRPT (Q) amounts come from DEDSCN • ERNREG(E)amounts come from payroll checks • Q– Total YTD Gross should equal E-Total Gross

39. Balancing – QRTRPT &ERNREG Q – Total YTD Gross E – Total Gross

40. Balancing QRTRPT & ERNREG • Q-Total YTD Annuities should equal E- Total of all Annuities including 590 & 591 • Add all annuity deduction totals on the ERNREG report

41. Balancing –QRTRPT& ERNREG Q – Total YTD Annuities

42. Balancing – QRTRPT & ERNREG • Possible Problems & Solutions: • ERNREG higher than QRTRPT • Probably voided & reissued checks from previous calendar year • Run CHKSTS report for Voided checks for prior year • Q & E reports not balancing • Run AUDRPT for the year and look for manual changes in YTD fields

43. Balancing - QRTRPT & ERNREG

44. Balancing- QRTRPT & ERNREG Specific files can be:

45. Balancing – QRTRPT & ERNREG • Q- YTD Non-Cash Earnings should equal all of the Life Insurance over $50,000 amounts • Q-YTD Deductions should equal E-deductions DEDAMT totals • Q-Gross & E-Total Gross should equal total on CHECKS report

46. Balancing –QRTRPT& ERNREG

47. Pre-Closing - Balancing • CHECKS report higher than QRTRPT? • Voided checks could be the problem • Run RECLED for (B)Reduction of Expenditures • Select by (1) Transaction Date • (2)All Transactions for a specified period • Enter dates – 01012018 to 12312018 • All funds • Sort by transaction date • When the report is finished, view RECEXP.TXT • Find payroll – this will show any voided checks

48. RECLED

49. Pre-Closing Balancing • To balance what was deducted and what was paid • Use QRTRPT, CHKSTS, and Non-Zero PAYDED • Q-YTD Total for each deduction should equal Total net pay for each deduction. • You might have to add Paid checks & Reconciled checks on CHKSTS report

50. Pre-Closing Balancing • Check PAYDED report for any deductions not paid yet • CHKSTS higher than ERNREG – did you get money back from a deduction company to give to employee?