payroll auditing and review training october 2014
DESCRIPTION
Payroll Auditing and Review Training October 2014. Overview. Seminar Objectives: Agency Risks Associated with Payroll Available Tools and Reports Pre-Certification Review Process Certification Requirements and Guidelines Post Certification Review Process - PowerPoint PPT PresentationTRANSCRIPT
Photo by Karl Steinbrenner
Payroll Auditing and Review Training
October 2014
October 2014 Payroll 2
Overview
Seminar Objectives:
• Agency Risks Associated with Payroll• Available Tools and Reports• Pre-Certification Review Process• Certification Requirements and
Guidelines• Post Certification Review Process• Tax Reconciliations and Other
Reviews
Risks Associated with Payroll
11 Costly Payroll Mistakes:
1. Failing to deposit withheld income taxes, FICA taxes and employer matching amounts on time
2. Under-withholding and failing to match required amounts
3. Failing to pay or under-paying state and federal unemployment taxes
October 2014 Payroll 3
Risks Associated with Payroll
11 Costly Payroll Mistakes:
4. Failing to process wage garnishments correctly
5. Making unauthorized deductions from an employee’s pay
6. Treating some workers as independent contractors when they are not
October 2014 Payroll 4
Risks Associated with Payroll
11 Costly Payroll Mistakes:
7. Failing to include the value of awards, bonuses, and fringe benefits (when required) in the employee’s taxable income
8. Using bogus or incorrect Social Security numbers for employees on their W-2 Forms and failing to accurately complete I-9 Forms.
October 2014 Payroll 5
Risks Associated with Payroll
11 Costly Payroll Mistakes:
9. Failing to pay at least the higher of the federal or state minimum wage to non-exempt employees…as well as overtime in any seven-day workweek in which they work more than 40 hours.
10.Not preparing and filling W-2 forms, and failing to send them to employees
11.Failure to abide by state laws
October 2014 Payroll 6
Risks Associated with Payroll
How to Avoid these Costly Mistakes:
• Awareness • Respect for the Position• Cooperation and Communication• Deference to the Proper Authority• Thorough Pre-Certification and Post-
Certification Audits
October 2014 Payroll 7
Risks Associated with Payroll
Questions/Comments
October 2014 Payroll 8
Reports and Tools
Accessing CIPPS Reports• Reportline Security Form:
http://www.doa.virginia.gov/Payroll/Forms/PaylinePATSecurityForm.pdf
• PAT (Payroll Audit Tool) Security Form:http://www.doa.virginia.gov/Payroll/Forms/PaylinePATSecurityForm.pdf
October 2014 Payroll 9
Reports and Tools
Reportline:– CIPPS Reports
• Report 1006 or 1010 - Changes made to the CIPPS Masterfile by Operator ID.
• Report 1004 - Batch transactions keyed• Report 10 - Current Gross-to-net calculation of all
employees as requested by the user.– CIPPS Ad Hoc Reports requested on HSRUT
and HSRPT as listed on http://www.doa.virginia.gov/Payroll/ReportWriterMatrix.pdf)
October 2014 Payroll 10
Reports and Tools
October 2014 Payroll 11
AUTOMATICALLY GENERATED REPORTS
REPORT NUMBER
REPORT NAME
HOW INITIATED/RECEIVED
INFORMATION PRESENTED
USE
1001 Input Transaction Listing
Daily, automatically - Upon input
All batch transactions keyed (agency and DOA)
Verification that all applicable batch transactions were keyed
1006 or
1010
Change Listing Automatically - when changes are entered to CIPPS masterfiles
Prior value and current value based on the change. Listed in employee order or type of change order (#1010)
Verify that masterfile changes were entered correctly, especially relating to salary or wage amount
1009 Employee Diagnostic
Automatically - when payroll transactions cannot process as entered
The employee number, the change or transaction that was not accepted, a brief reason for not processing
Provides an opportunity for errors to be corrected in a timely manner so transactions can be rekeyed after appropriate changes have been made
1013 New Employees Added
Addition of new employee record
Employee number and name Notification that a new record has been added to the system so employment, salary/wage, and all other applicable information can be verified.
1017 Updated Pending File
Automatically - when batch transactions are added to the pending file from input or payroll processing
Entry date, sequence number, employee number, transaction type, and other relative information (i.e., ded. or special pay number, hours, dollars, etc.), and the action being taken with each transaction (added or deleted)
Verify that no transactions have an entry date prior to the ending date of the current pay period. If so, research is required to determine if the transaction should be deleted or if masterfile changes are required in order for the transaction to process.
Reports and Tools
October 2014 Payroll 12
REPORTS GENERATED UPON REQUEST OF EDIT
REPORT NUMBER
REPORT NAME
HOW INITIATED/RECEIVED
INFORMATION PRESENTED
USE
U104 CIPPS Payroll Edit/Scrub Request
Input by each agency as needed to request edits
By agency, the frequency(ies) being edited, the pay period and check dates, and the time keyed.
To ensure edits are requested for each pay period prior to pay to ensure the accuracy of payroll transactions. Ensure requests are entered timely and accurately.
1004 Transaction Balance Report
Upon Request for Edit or Pay
Batch transactions sorted by batch number that were accepted
Verify that transactions keyed passed all nightly batch processing edits
1005 Batch Summary Upon Request for Edit or Pay
Batches keyed are listed in numeric order, with notation as to whether or not the batch is in balance
Ensure that any out-of-balance batch has been researched and any deleted transaction has been researched
10 - EDIT
Payroll & Deduction Register - PRE-CALC
Upon request for Edit Gross-to-net calculation of all payroll transactions, automatic and batch, including all types of payments, deductions, and benefits that will process with this payroll.
Ensure that all batch transactions, deductions, new and changes, automatic salary payments, tax changes, etc. were processed properly prior to processing the payroll.
Reports and Tools
October 2014 Payroll 13
KEY REPORTS GENERATED WITH PAYROLL CERTIFICATION – LIST 1 of 2
REPORT NUMBER
REPORT NAME
INFORMATION PRESENTED
USE
U102 CIPPS Payroll Certification Report
Hard copy of information entered online by the agency to certify the payroll for processing.
To certify the correctness of payroll transactions to be processed, including the total gross dollars to be paid, authorizing DOA to process the payroll.
10 - PAY
Payroll & Deduction Register - ACTUAL PAYROLL
Gross-to-net calculation of all payroll transactions - including update of year-to-date amounts.
Verification of final payroll totals and accuracy of payroll processing.
21 Deduction Register This report is generated for each deduction and sub-deduction number, listing each employee who had this deduction withheld and the amount of the deduction. Agency-paid deductions are also provided.
Verification that deductions were withheld/charged appropriately and those tax-sensitive deductions were set up correctly.
26 Direct Deposit Transmission
Lists each employee who has an active deduction established for direct deposit to checking or savings, and the amount of the transfer.
Verification that there are no extraordinarily large net amounts being transferred
33 Composite Tax Report Provides the total gross amount paid, and the taxable amount and taxes withheld for each tax category (federal, state, OASDI, HI, etc.) for employee and, where applicable, employer. Reflects tax masterfile totals.
Ensure no taxes were withheld in certain categories (i.e., FUTA, DI) in which state employees do not contribute. Verify that tax-sensitive deductions and payments were taxed correctly. This function is performed automatically with the monthly 10 to 33 comparison, using year-to-date amounts
59 Gross Pay Limit Exceeded
Lists employees, if any, whose gross wages, including all types of pays, exceed the limit established at the agency level. (Default value is double base salary)
Verification that payments are correct and in accordance with available documentation.
U003 Third-Party Check Reconciliation Register
Lists each third party agency check, as well as the amount of the federal tax deposit being electronically transferred.
Verification of deduction totals and distribution of checks to third party recipients. Verify federal tax transfer.
2007 Recycled Pending Transactions
Lists taxes and deductions that could not be taken in this payroll. Items will recycle and be deducted in the next payroll cycle unless deleted.
Verify that these items are still due. Delete those transactions that are incorrect so they will not affect the next payroll.
U075 Reimbursement Accounts Error Report
Lists employees with errors concerning Deductions 21, 22 and 23 (Flexible Reimbursement Accounts and Fees)
Review the exception and make corrections in CIPPS as necessary.
Reports and Tools
October 2014 Payroll 14
KEY REPORTS GENERATED WITH PAYROLL CERTIFICATION – LIST 2 of 2
REPORT NUMBER
REPORT NAME
INFORMATION PRESENTED
USE
12 Manual Checks Issued
By Office, Employee number and name, check number, date, and amount, any manual pay set that was entered to make changes to an employee’s masterfile.
To ensure that only authorized, valid changes to employee masterfile records are entered. To ensure that all payroll-related items that were handled outside of the payroll system, are recorded in the employee masterfile record.
13 Adjustment Register
By Office, Employee number and name, the amount of any refund or increase or decrease in the current amount being paid for special payments or being withheld for taxes or deductions.
To ensure that refunds or increases/decreases to current special payments, taxes, or deductions, are valid and authorized. Special attention should be paid to changes to taxes or tax-sensitive deductions and special payments.
U094 New Hire Report All employees that have been hired within the time frame of the report. DOA automatically produces the U094.
All new hires must be reported to the VEC to ensure the employees are not under a child support withholding order. The U094 reflects the information that is automatically sent to the VEC for this purpose. A review of this report is necessary to insure that all information has been reported.
U118 Gross Pay Differences Report
By frequency paid, the pay type (regular-3 or special-9), the amount authorized for payment, the amount that actually paid, and the amount of the difference.
Ensures that any difference between the amount authorized and certified and the amount actually paid can be identified. Ensure that transactions added or deleted after certification are accounted for and approved for payment or deletion. Explanation for differences can be hand-written on this form for faxing back to DOA.
Reports and Tools
PAT (Payroll Audit Tool):
– Salary Regular Pay Comparison – Uses the selected “soft copy” Report 10 file to compare the H0BID salary to the amount of Regular Pay Received.
– Report 10 Comparison – Compares two “soft copy” Report 10 files and prints the gross pay differences between the two.
– Perform queries and download to Excel to create your own reports
October 2014 Payroll 15
Reports and Tools
October 2014 Payroll 16
REPORT NAME DESCRIPTION CAN BE GENERATED USAGESummary Report 10 for Wage Employees Gives a printout of the hourly rate and hours keyed
for the wage employees listed on a selected Report 10 File.
The day after edit or certification is requested
Review to ensure wage hours entered are correct.
Report 10 Salary/Rate and Regular Pay Comparison
Lists any salaried employee on the selected Report 10 File that has regular pay that is unequal to the semi-monthly salary rate on H0BID.
The day after edit or certification is requested
Review and ensure that pay items are correct.
Special Pays Listing Lists all employees on the selected Report 10 file that are receiving a special pay. (Items keyed on HUE01 or HUC01).
The day after edit or certification is requested
Review for accuracy.
Deduction Amount Change Comparison Compares two selected Report 10 Files and prints deductions for employees when the amounts have changed.
The day after edit or certification is requested
Review for accuracy.
State and Federal Tax Withholding Comparison
Compares two selected Report 10 Files and prints those employees whose tax amounts have changed when there was no change in gross pay.
The day after edit or certification is requested
Review for accuracy.
Rate Amount Change Comparison Compares two selected Report 10 Files and prints those employees who have had a change to the H0BID Salary/Rate amount.
The day after edit or certification is requested
Review for accuracy.
Comparison Report 10 Compares two selected Report 10 Files and prints those employees who have a difference in gross to net pay amounts.
The day after edit or certification is requested
Review for accuracy.
Employee Information Sheet Gives a one page printout for the selected employee number showing all the relevant masterfile field values.
The day after the update is made to the Employee Masterfile
Review for accuracy.
PAT (Payroll Audit Tool) Reports
Reports and Tools
Questions/Comments
October 2014 Payroll 17
Payroll Life Cycle
•PYCTF•After the payroll has passed Pre-Certification Review
•Final Audits•Adjustments (Void check/Re-issue)
•Explanations for Gross Pay Differences
•CIPPS/PMIS Exceptions
•Pre-Certification Review
• Manual Entry• Interfaces• Batches• PYEDT – Edit Request• Request Reportwriter
Reports
Data Entry/
Request Edit Review
Edit and Make
Corrections
Certify PayrollPost-
Certification Review
Data Entry Process
• “High Risk” Entry Item• Manually entered• Requires precision for one or multiple
fields in CIPPS• Potential to cause a legal or financial
impact to the employee or the agency• Incorrect entry is not easily detected
using reports and reconciliations
Data Entry Process
“High Risk” Entry Item #1:• Tax Withholding Forms
• An unsigned form or a form with conflicting information can make it invalid
• If the FIT/SIT Status indicator is not “6” the additional amount specified will not process
• Employees who live an work (tele-working) in other states can legally require you to withhold for that state
• Lock-In Letters can override a W-4• Best to review this on the screen to ensure it was
entered correctly
Data Entry Process
“High Risk” Entry Item #2:• Direct Deposit Form
• If the account or routing number is keyed incorrectly, you won’t know until the employee calls on payday
• The account/routing number could be correct, but the utility field on H0ZDC could be wrong
• Notice at the bottom of the direct deposit form – “CIPPS Updated by” – “Reviewed by”
Data Entry Process
“High Risk” Entry Item #3:• Garnishments, Wage Assignments,
Child Support• We provide best practice examples in CAPP
Topic 50405, but there are multiple fields involved
• It is best to review each garnishment amount on the Report 10 to ensure the amount withheld meets federal and state guidelines
• Who signs for your garnishments?• Was this ordered by a court?
Data Entry Process
Data Entry Process
“High Risk” Entry Item #4:
• Deductions for 457 or 403(b) Plan• Deferred Comp/Annuities• Hybrid Retirement Plan – Only establish
in CIPPS if Member Record is in VNAV• Employer Cash Match deductions for
these plans
Data Entry Process
“High Risk” Entry Item #5:
• Tax Rate of Special Pays• IRS Regulations specify when certain items
are to be taxed at the supplemental rate vs. the tax table. Payroll Officer makes a choice of which rate to use by keying an indicator in the batch. “0” as the tax indicator takes supplemental rate, “5” withhold according to tax table. However, if “0” is keyed and the amount is combined with regular pay, the tax table rate will be applied.
Data Entry Process
“High Risk” Entry Item #6:
• Incorrect HSBFM Batch Deletions– DELETE ONLY THOSE TRANSACTION S THAT ARE
IBC OR IN 700, 800, 900 SERIES– MANUAL PAYSETS MUST BE REVERSED!! DO
NOT DELETE!!– Only key in Sequence Number 1 – let overnight process
fill in Sequence Number 2– Have someone review your work!
Data Entry Process
“High Risk” Entry Item #7:
• Deduction Refunds and Manual Paysets– When refunding a pretax item to an employee
who will receive no additional funds – reduce by the amount of FICA taxes due
– When reversing a non-taxable item for a terminated employee, you may need to pay a penny to process the FICA refund.
– Be careful with end of file and employer deductions!
Data Entry Process
“High Risk” Entry Item #8:
• Incorrect/Omitted edit request on PYEDT• Failure to request an edit can cause issues
during the pre-certification process• Difficult to get the correct certification dollar
amount – could cause the agency to be reported on the Comptroller’s Quarterly Report
• The Pay Period Indicator does matter!• Is there a deadline for entering an edit
request?• Recommend a double set of eyes
Pre-Certification Process
October 2014 Payroll 29
Comptroller's Report on Statewide Financial Management and
Compliance
The Comptroller's Report on Statewide Financial Management and Compliance Quarterly Report) is a summary of measures used by DOA to monitor transactions involving public funds and report findings to the Governor, his Cabinet, and other senior State officials. The Quarterly Report uses exception reporting and summary statistics to highlight key findings and trends. The Department also provides additional detailed statistics for agencies and institutions of higher education.
Reported Items• Gross Pay amount certified has a variance of more than $20,000 from the actual• Gross Pay amount certified has a variance of more than $1.00 and was not explained by COB
the next day• I key a certification late or make a change to a certification after 3:30 on certification day• In addition to your review, DOA performs a comparison of CIPPS records and PMIS records
each pay period. If exceptions are found, erroneous payments are discovered, or salaries exceed classification limits, your agency will have to provide a written explanation to DOA. Untimely updates to CIPPS or PMIS and insufficient audits can result in your agency being reported.
Pre-Certification Process
August 2011 Payroll 30
> GUH _____________________________________________________________ ON PYCTF ------ CIPPS PAYROLL CERTIFICATION ------ _ CONTROL AGENCY: 00000 DATE: 00/00/0000 PAGE NO: 0000 THE FOLLOWING PAYROLLS ARE APPROVED FOR PAYMENT: PAY VOUCHER PAY PERIOD PERIOD CHECK CURRENT PAY LOGON TIME CO # FREQ NUMBER PER BEG DT END DT DATE GROSS TYP ID ENTERED 00000 00 ________ 0 00000000 00000000 00000000 0000000.00 _ ______ ________00000 00 ________ 0 00000000 00000000 00000000 0000000.00 _ ______ ________00000 00 ________ 0 00000000 00000000 00000000 0000000.00 _ ______ ________00000 00 ________ 0 00000000 00000000 00000000 0000000.00 _ ______ ________00000 00 ________ 0 00000000 00000000 00000000 0000000.00 _ ______ ________00000 00 ________ 0 00000000 00000000 00000000 0000000.00 _ ______ ________ I CERTIFY THAT I HAVE REVIEWED THE REFERENCED PAYROLL DATA IN ACCORDANCE
WITH PROCEDURES OUTLINED IN THE CAPP MANUAL, VOL 1, SECTION 50810, AND REASONABLY BELIEVE THAT THESE TRANSACTIONS ARE NECESSARY, ACCURATE AND
APPROPRIATE.
Data Entry Process
“High Risk” Entry Item #9:
• Incorrect certification request on PYCTF• Key your certification dates as the edit was keyed – use
Report U104 or Report 2001• Don’t key changes on Certification day• Deadline is 3:30 pm on Certification deadline – Don’t Wait!• Have a thorough Pre-Certification Audit process• Special Pays (Pay Type 9) cannot be entered on the same
night a Regular Pay (Pay Type 3) for an agency even if it is for different frequencies. (You can, however edit one frequency and pay the other).
• Employee cannot have same check date as what is on H0BES• Use Online Pending screens (H1K01, H1K02, H1K03) to get
the Sequence Number when deleting on HSBFM
Data Entry Process
Questions/Comments?
Pre-Certification Process
CAPP Topic Guidance:– Batch Processing and Balancing:
http://www.doa.virginia.gov/Admin_Services/CAPP/CAPP_Topics/50130.pdf
– Pre-Certification Activities: http://www.doa.virginia.gov/Admin_Services/CAPP/CAPP_Topics/50810.pdf
– Payroll Audit Tool (PAT): http://www.doa.virginia.gov/Admin_Services/CAPP/CAPP_Topics/70735.pdfOctober 2014 Payroll 33
Pre-Certification Process
October 2014 Payroll 34
Pre-Certification Process
August 2011 Payroll 35
Pre-Certification Process
August 2011 Payroll 36
August 2011 Payroll 37
August 2011 Payroll 38
August 2011 Payroll 39
• 4 APPLES
Pre-Certification Process
August 2011 Payroll 40
KEY REPORTS FOR PRE-CERTIFICATION
REPORT NUMBER
REPORT NAME
HOW INITIATED
INFORMATION PRESENTED
USE
Report 10 Company Totals Prints with Edit Request
Totals of all Pays and Deductions Use to anchor in and reconcile gross pay for certification
Report U104 CIPPS PAYROLL/EDIT REPORT
Prints with Edit Request
Shows how the edit request was keyed on PYEDT
Use to verify that you key the PYCTF with the same dates/information
Report 59 Gross Pay Limit Exceeded Prints with Edit Request
Shows any employee receiving more than twice their Salary Amt.
Use to quickly identify problems
Report 1005 Company Batch Summary Prints with Edit Request Shows all batches for agency and their balance status
Investigate out of balance batches
Report 852 Incorrect Imputed Life Request on HSRUT Shows employees who have Imputed Life exceptions
Use to quickly identify Imputed Life Errors
Report 906 Potential Cash Match Exceptions
Request on HSRUT Shows employees with potential cash match exceptions
Use to quickly identify Cash Match issues
PAT Report 10 Salary/Rate and Regular Pay Comparison
Generated in PAT the day after edit
Shows all salaried employees who do not have same regular pay as H0BID Salary Amount
Use to reconcile Gross Pay
PAT Rate Amount Change Generated in PAT the day after edit
All H0BID Salary Changes that occurred since last payroll
Use to reconcile Gross Pay
PAT Special Pays Listing Generated in PAT the day after edit
Shows all Special Payments to employees on payroll
Use to reconcile Gross Pay
PAT Summary Report 10 Totals – Wage Employees
Generated in PAT the day after edit
Shows all payments to wage employees
Use to reconcile Gross and Salaried Regular Pay on the Report 10
PAT Deduction Amount Change Compare
Generated in PAT the day after edit
Shows all deduction amount changes that occurred since last payroll
Use to reconcile deduction changes
Pre-Certification Process
October 2014 Payroll 41
Gross Pay Reconciliation
Pre-Certification Process
October 2014 Payroll 42
PAYROLL RECONCILIATION SHEET
AGY NUMBER: 0
PAY PERIOD: 8/10-24/14Amount Certified Last Payroll 146,668.02
Minus: Previous Wage Payroll 0.00
Minus: Previous Imputed Life (1,195.26)
Minus: Previous Sick Leave Payouts 0.00
Minus: Previous Annual Leave Payouts 0.00
Minus: Previous Classified Overtime 0.00
Minus: Previous Invol Sep (2,024.55)
Minus: Previous VSDP 0.00
Minus: Previous Partial Payments to Term EES (2,224.45)
Add: Previous Dockings LWOP 138.59 Add: Previous VSDP Adj Amount to Reg Pay 0.00
crosswalkSalaried Base Pay Previous Payroll 141,362.35 141,362.35 0.00
All of this information came from the previous reconciliation spreadsheet
Pre-Certification Process
October 2014 Payroll 43
Salaried Base Pay Previous Payroll 141,362.35 141,362.35
Permanent Classified Base Pay Adjustments (List Names)
New Salaried: Eff Date0.00
Terminated Classified Employees:Eff Date Old Semi Increase/Decrease
0.00 0.00 Salary Increases:
Eff Date Old Semi New Semi Increase/DecreaseDon Johnson 8/24/09 2827.25 3,166.50 339.25
0.00 0.00 0.00 339.25
Adjusted Base Pay Classified Payroll 141,701.60
All of this data can be gleaned from the Rate/Amount Change Comparison in PAT
Pre-Certification Process
October 2014 Payroll 44
Adjusted Base Pay Classified Payroll 141,701.60
Partial Pay to Term EESSemi Partial
0 0.00Dock
Semi Sal PP DockedPP Hrs Hrs to Dock
Total Dock Notes
D. Johnson -308.4 88 -308.4 Salary effect mid period88 0
-308.4 -308.40VSDP Items:
Semi Sal Reg Pay VSDP ADJ AMT00 0.00 0.00
0 0 0 0
Add: Imputed Life Current Payroll 0.00
Add: Current Overtime Classified Payroll 0.00
Add: Current Involuntary Sep 2,024.55
Add: Current Wage Payroll 0.00
Add: Current Leave Payouts 5,309.42 7,333.97 8456.02
Current Payroll Certified Amount 148,727.17
Amount Certified on PYCTF 148,727.16
Differences (0.01)
These items should be visible on the Salaried/Reg. Pay Comparison Report in PAT.
These items should be visible on the Company Total page of the Report 10
Pre-Certification Process
Wage Employee Hours:
• Hours that are keyed manually should be balanced by using a spreadsheet with the employee’s pay rate
• TAL agencies can download the hours from TAL
• This spreadsheet can be compared to PAT Wage Employee Report 10 SummaryOctober 2014 Payroll 45
Pre-Certification Process
Overtime Hours:
• Hours that are keyed manually should be balanced by using a spreadsheet with the employee’s pay rate
• TAL agencies can download the hours from TAL
• Why?
October 2014 Payroll 46
Pre-Certification Process
VSDP Benefits/Dockings/Leave Payouts:
• Have the person responsible for the review of the VSDP Benefits/Dockings key them to a spreadsheet after they have reviewed the source documents.
• The totals can be passed on to the person certifying the payroll
• Use our spreadsheetsOctober 2014 Payroll 47
Pre-Certification Process
Deductions:
• A spreadsheet can be keyed comparing last pay period deduction totals to current.
• PAT Deduction Comparison Report will show detail for differences
• Person responsible for Garnishments can maintain spreadsheet of reviewed amounts and provide total to certifierOctober 2014 Payroll 48
Pre-Certification Process
Deductions:
• If the deduction is interfaced, the third party administrator is the source. Do not make changes without their authorization
October 2014 Payroll 49
Pre-Certification Process
Deferred Compensation:
• Transfer form no longer exists. Employees who move from one agency to another must contact ICMA again to restart deduction.
• This is true also for Hybrid Voluntary Contributions
• Be “suspicious” of dollar changes in second half of month (PAT Deduction Comparison)
October 2014 Payroll 50
Pre-Certification Process
Deferred Compensation:
• Wage employees must enroll directly with ICMA.
• Hybrid Employees are not automatically enrolled
• Employees that wish to defer leave payouts must be enrolled at least one month prior to the payment
October 2014 Payroll 51
Pre-Certification Process
Cash Match:
• Hybrid Employees not contributing 4% voluntary are not eligible for cash match.
• Recent changes – cash match works in tandem with deductions #38 and #39 – do not turn off frequency when employee on LWOP
• Reportwriter 906 is helpfulOctober 2014 Payroll 52
Pre-Certification Process
Interface Reports that MUST be dealt with manually:
• Items that cannot be added to CIPPS via the interface must be entered manually
• Care must be taken when entering these items
• Error reports are essential
October 2014 Payroll 53
Pre-Certification Process
Imputed Life:
• You can monitor changes that occur monthly and verify those that occur in second pay period.
• Reportwriter 852 is very helpful here• You should download birthdates regularly and
check for birthdates that are recent (example 2014)
October 2014 Payroll 54
Pre-Certification Process
Pre-Certification CONTBASE Recon:
• HR/Snapshot Certifier should be able to pass along the monthly contributions basis from the previous month.
• Report U180/U181 for PMIS agencies will identify CONTBASE changes that occurred for the month.
October 2014 Payroll 55
Pre-Certification Process
Pre-Certification CONTBASE Recon:
• Take verified CONTBASE amount from Report 10 total and multiply by .0119 (current rate) and balance to Group Insurance Deduction #120.
October 2014 Payroll 56
Pre-Certification Process
Pre-Certification CONTBASE Recon:
• Subtract ORP Employee CONTBASE and “G” Employee CONTBASE from verified CONTBASE amount
• Multiply by 5% and balance to total of Deduction #12 – Employee Retirement and Deduction #15 – EE Mandatory Hybrid
• Report 14 Deductions Not Taken register can be helpful in identifying differences.
October 2014 Payroll 57
Pre-Certification Process
Pre-Certification CONTBASE Recon:
• Hybrid Voluntary Contributions (Deduction #16) should only change once a quarter at the top of the quarter (unless one of the employees had a salary change)
• Voluntary Contributions cannot be reconciled the same way as other retirement contributions because there is a mix of percentages involved.
October 2014 Payroll 58
Pre-Certification Process
Questions?
October 2014 Payroll 59
Post-Certification Process
• Gross Pay Differences – U118• PAT Report 10 Comparison• Report 2007 – Recycled Pending
Transactions• Report 14 – Deductions Not Taken• Report U029 – GLI Default• Report 59 – Gross Pay Limit Exceeded• Report 831 – Direct Deposit Mandate
October 2014 Payroll 60
Post-Certification Process
Outgoing funds/checks in CIPPS other than Gross:
• Net Pay (Deduction Refunds)• Third Party Checks (U003)• Checks Issued Register (Garnishments,
etc)
October 2014 Payroll 61
Post-Certification Process
Other Post Certification Reviews – Reports not generated until later:
• U149 Cash Match Discrepancy Listing• U075 Flexible Reimbursement Error
Report
October 2014 Payroll 62
Post-Certification Process
Questions?
October 2014 Payroll 63
CIPPS to CARS Reconciliation
Cathy McGillAsst. Director State Payroll Operations
October 2014 Payroll 64
“10 to 33” Recon
• Early deduction is the key!• The only valid reason for uncollected
FICA on the W-2 is?
• Uncollected FICA that occurred from Imputed Life for terminated employees
• Read the U092 summary page to understand why exception appears on U093 Report
• Control Totals are available in PATOctober 2014 Payroll 65
Quarterly Recon
• If you did your job during “10 to 33” Recon – this should be easy
• Balance Report 56 and Report 880 totals to Control Totals
• If you review Report 14 during the year, you should not have invalid exceptions on Report 881 for Uncollected FICA
• VEC Reporting – we send what is on U057 to VEC. You have to make adjustments if you have FIPS code errors on U090.
October 2014 Payroll 66
Quarterly Recon
Questions?
October 2014 Payroll 67