sage hrms payroll year-end 2017 - learning center

Sage HRMS Payroll Year-End 2017 Course

For Help, email [email protected]

© 2017 Delphia Consulting, LLCwww.DelphiaConsulting.com 1

Sage HRMS Payroll Year-End 2017

Presented by:

Brandi Haines

HRMS Consultant

Course Agenda




© Delphia Consulting, LLC

DelphiaConsulting.com

Course AgendaCourse AgendaCourse AgendaCourse Agenda

1. Understanding the Regulatory Requirements

2. Preparing for Year-End

• Employee Data

• Earnings

• Taxes

• Deductions

• Transaction History

3. Year-End Processes

• Updating the Quarter

• Balancing

• Create Electronic Year-End Files

4. Preparing for 2018

5. Additional Resources

Regulatory Requirements






Understand Regulatory RequirementsUnderstand Regulatory RequirementsUnderstand Regulatory RequirementsUnderstand Regulatory Requirements

1. W-2 forms to Employees by January 31, 2018

2. W-2 and W-3 Employer filing, regardless of media, by January 31, 2018

3. Affordable Care Act (ACA) forms 1095-B and 1095-C to Employees by January 31, 2018

4. Affordable Care Act (ACA) forms 1094-B and 1094-C for Employers by February 28, 2018 for paper copies and April 2, 2018 for electronic filing.

5. Additional information on Social Security filing is found at the SSA website: www.socialsecurity.gov/employer

Preparing for Year-End






Employee AddressEmployee AddressEmployee AddressEmployee Address



Employee Address Employee Address Employee Address Employee Address






Employee Address Employee Address Employee Address Employee Address

Generate an HR Secure Query report to include the

information below. Identify employees with a Forwarding

Address different than the Home Address.



Name SpecificationsName SpecificationsName SpecificationsName Specifications

1. Enter name as shown on the employee’s Social Security card.

2. The name entered should reflect the following instructions:

• Do not show titles or academic degrees at the beginning or the end of the

employee’s name: Mr., Mrs., Dr., RN, Esq., etc.

• Do not include designation or abbreviations to designate the employee’s

position, title, company/division, etc.

• Compound surnames may be connected with a hyphen or a blank space: Jones-

Smith

• Suffixes, such as Jr. or Sr., can be entered if it appears on the SS card, however the

SSA still prefers you don’t enter the suffix

• Single-letter prefixes, such as O or D, must not be separated from the rest of the

surname by a blank but should be connected by an apostrophe or joined to the

rest of the surname: ONeal or O’Neal






WWWW----2 Box 13 Designations2 Box 13 Designations2 Box 13 Designations2 Box 13 Designations



Voiding ChecksVoiding ChecksVoiding ChecksVoiding ChecksMake sure any payments that need to be voided have been processed

before creating year-end reports




Earnings



Earning Earning Earning Earning FieldsFieldsFieldsFields

There are three fields in the Setup>Payroll>Earning Codes Detail pages to review for year-end compliance:

1. Earnings Category

2. Earning Type

3. W-2 Reporting – when applicable






Earnings Category FieldEarnings Category FieldEarnings Category FieldEarnings Category Field



Earnings Category FieldEarnings Category FieldEarnings Category FieldEarnings Category Field

Accrual – Vacation, sick and compensatory time accruals

Advance – Money or goods provided to an employee in anticipation of repayment

Benefit – Cash and noncash contributions made by the employer on behalf of the employee

Deduction – Amounts taken from employee pay to pay for union dues, disability insurance, and other items

Earning – Salaries, wages, tips, commissions, bonuses, etc.

Expense Reimbursement – Payments to the employee to reimburse company-related expenses incurred by the employee (Do not use this category for excludable moving expense reimbursement; use Benefit)






Earning Code TypesEarning Code TypesEarning Code TypesEarning Code Types

Selecting Earning Category activates these types:

• Salary & Wages – To set up an earning that tracks the amounts that employees earn in

salary and wages, select the category Earnings and the type Salary & Wages.

• Reported Tips – To set up an earning that tracks the amounts that employees report in

tips, select the category Earnings and the type Reported Tips and assign it to the

employee.

• Allocated Tips – To set up an earning that reports allocated tips on the Form W-2,

select the category Earnings and the type Allocated Tips. (You can provide the

allocated tips amount either through timecard entry or by entering the amount in

Transaction History at year end.)



Earning Code Types (Continued)Earning Code Types (Continued)Earning Code Types (Continued)Earning Code Types (Continued)

Selecting Advance Category activates these types:• A cash advance is an amount of money paid in advance to an employee who is

expected to repay the advance.

• A noncash advance is goods or services (for example, supplying uniforms or

tools) also in expectation of repayment.

Selecting Expense Reimbursement Category activates these types: NONE

Selecting Benefit Category activates these types:• A cash benefit increases the employee’s net pay.

• A noncash benefit (for example, use of a company automobile) does not

increase net pay but may be taxable as income.






WWWW----2 Reporting2 Reporting2 Reporting2 Reporting



WWWW----2 Designations2 Designations2 Designations2 Designations




Taxes



Withholdings & Tax SetupWithholdings & Tax SetupWithholdings & Tax SetupWithholdings & Tax Setup

There are three fields in the Setup>Payroll>Federal State Tax Codes pages that you should review for year-end compliance:

1. Taxable Wage-base

2. Tax Withholding Rule Type

3. Pre-Tax Deductions




Deductions



Deduction SetupDeduction SetupDeduction SetupDeduction Setup

There are four fields in the Setup>Payroll>Deduction Codes to review for year-end compliance:

1. Deduction Category

2. Deduction Type

3. W-2 Reporting, if applicable

4. Annual Maximum Amount






WWWW----2 Designations2 Designations2 Designations2 Designations

Transaction History






Transaction History AdjustmentsTransaction History AdjustmentsTransaction History AdjustmentsTransaction History Adjustments

Transaction History adjustments automatically appear on the W-2 and tax reports when the Earning, Deduction, or Tax code is linked appropriately to the rule level.

• Reconcile Tax or Taxable Wages

• Reconcile Health Insurance – Employee or Employer

• Year-End True Up for Company Vehicle, Group Term Life, etc.



Transaction History Transaction History Transaction History Transaction History ---- EarningsEarningsEarningsEarnings






Transaction History Transaction History Transaction History Transaction History ---- DeductionsDeductionsDeductionsDeductions



Transaction Transaction Transaction Transaction History History History History ---- Taxes & Taxes & Taxes & Taxes & Taxable Wages Taxable Wages Taxable Wages Taxable Wages






Transaction HistoryTransaction HistoryTransaction HistoryTransaction History

• An out-of-balance situation on either the employee or

employer taxes when reconciling information on

reports

• Employee was not properly set up with the appropriate tax

code on the Payroll Taxes panel

• Employer portion of Health Insurance cost

Scenarios to Edit in Transaction History



Transaction HistoryTransaction HistoryTransaction HistoryTransaction History

• If lines 7 - 9 on the 941 contain a large amount, there is a

discrepancy in the EE/ER FICA contributions

• Third-party sick pay

• Third-party sick pay can also be added during a regular

payroll process (change the tax withholding type to "Taxable

No Withholding")

Scenarios to Edit in Transaction History (Continued)






Special CircumstancesSpecial CircumstancesSpecial CircumstancesSpecial Circumstances

• Dependent Care

• Moving Expenses

• Transportation Fringe Benefits

• Deceased Employees

• Personal Use of Employer Provided Vehicles

Year-End Processes




Updating the Quarter



Install Fourth Quarter Tax UpdateInstall Fourth Quarter Tax UpdateInstall Fourth Quarter Tax UpdateInstall Fourth Quarter Tax Update

Install the 4th Quarter Update before generating the first payroll in the new year.

Reminder to back up your data.






Update SystemUpdate SystemUpdate SystemUpdate System

1. If the goal amount changes, update the correct goal amount in the Earning/Deductions code table – Common Deduction Limits should be included

2. Use Update Earnings/Deductions process for company wide edits that affect all employees or groups of employees, such as a new maximum deferral amount for 401(k) plans

3. Update the Earning/Deduction status at the employee level, as applicable

4. Tax Rates



Updating Annual Maximums and Other RatesUpdating Annual Maximums and Other RatesUpdating Annual Maximums and Other RatesUpdating Annual Maximums and Other Rates

In a large organization in which many active employees would

have selected the 401(k) plan as a voluntary withholding, it

would be too time consuming to find & update each employee’s

Annual Maximum one at a time.

To do this quickly and completely, use the Update

Earnings/Deductions process.

Reminder: It is imperative that you back up your data prior to

executing an update.






Updating Annual Maximums and Other RatesUpdating Annual Maximums and Other RatesUpdating Annual Maximums and Other RatesUpdating Annual Maximums and Other Rates

Balancing






Standard Standard Standard Standard Reports for BalancingReports for BalancingReports for BalancingReports for Balancing

Earnings and Hours Report



Standard Standard Standard Standard Reports for BalancingReports for BalancingReports for BalancingReports for Balancing






BalancingBalancingBalancingBalancing










2016



Validate Validate Validate Validate YearYearYearYear----End DataEnd DataEnd DataEnd Data






Validate Validate Validate Validate YearYearYearYear----End End End End DDDData (Continued)ata (Continued)ata (Continued)ata (Continued)



QuarterQuarterQuarterQuarter----End ReportsEnd ReportsEnd ReportsEnd Reports

1. Form 941

2. Schedule B

3. State Income Tax

4. State Unemployment

5. Other State and Local Taxes

For a list of supported forms, visit https://partner.aatrix.com/sagehrms/forms-library






Print YearPrint YearPrint YearPrint Year----End FormsEnd FormsEnd FormsEnd Forms

1. No special preparation needed

2. Sage HRMS is check-date driven and distinguishes between multiple years for tax reporting purposes

Create Electronic Year-End Files






Sage Payroll Tax Forms and eFiling by AatrixSage Payroll Tax Forms and eFiling by AatrixSage Payroll Tax Forms and eFiling by AatrixSage Payroll Tax Forms and eFiling by Aatrix

Sage Payroll Tax Forms and eFiling by Aatrix is a feature included with SageHRMS. With this functionality you can complete and file tax forms electronically: including W-2, W-3, 941, 940, 943, 944, 945, State tax forms and New Hire reporting by state.

To learn more about Sage Payroll Tax Forms and eFiling by Aatrix, view the Sage HRMS in-product Help. Or visit http://partner.Aatrix.com/index.php/sagehrms



Print Forms W2Print Forms W2Print Forms W2Print Forms W2

1. Print Forms W-2 (select Reports>Payroll>Government Reports> W-2’s on Paper).

Totals are provided at the end of the report.

NOTE: After you click the Print button on the tax form or file window in Sage HRMS,

the system processes the employees, creates a file, and the Sage Payroll Tax Forms and

eFiling by Aatrix window displays. If your forms are not current, you will be prompted

to update them.






Additional Filing InformationAdditional Filing InformationAdditional Filing InformationAdditional Filing Information

To file Federal forms 940, 941, 943, 944, and 945:

1. Select Reports>Payroll>Government Reports>

Federal Tax Filing.

1. Select the form you want to file.

2. Click Display to start the process. The Sage

Payroll Tax Forms and eFiling by Aatrix window

opens and steps you through the process of

validating the information, and creating and filing the form.



Additional Filing InformationAdditional Filing InformationAdditional Filing InformationAdditional Filing Information

To file supported State Forms:

1. Select Reports>Payroll>Government Reports>State Tax Filing.

2. Select the State for which you want to file. The supported forms for that state will appear.

3. Select the form you want and click Display. The Sage Payroll Tax Forms and eFiling by Aatrix window opens and steps you through the process of validating the information, and creating and filing the form.




Preparing for the New Year



Define Fiscal YearDefine Fiscal YearDefine Fiscal YearDefine Fiscal Year

Setup>Payroll>Payroll Setup>Fiscal Year Calendar






Legislative Changes for 2018

Social Security Wage Base* $127,200 $128,400

Social Security Tax Rate* 6.20% 6.20%

Medicare Tax Rate* 1.45% 1.45%

Additional Medicare Tax Rate for

Wages over $200,000*.09% .09%

HRMS SQL Taxes, Social

Security/ Medicare

2017 2018



Legislative Changes for 2018 (Continued)Legislative Changes for 2018 (Continued)Legislative Changes for 2018 (Continued)Legislative Changes for 2018 (Continued)

401(k), 403(b), 408(k)(6), 457 and 501(c)(18)(D) Limitations

$18,000.00

HRMS SQL Deductions, Pension

Plan/Deferred Savings

2017 2018

$6,000.00 $6,000.00401(k), 403(b), 408(k)(6), 457 and 501(c)(18)(D) Catchup

$18,500.00






Legislative Changes for 2018Legislative Changes for 2018Legislative Changes for 2018Legislative Changes for 2018

Business $0.xx/mile$0.535/mile

Federal Mileage Rate 2017 2018

Medical/Moving $0.17/mile $0.xx/mile

Charitable $0.14/mile $0.xx/mile



General DeadlinesGeneral DeadlinesGeneral DeadlinesGeneral Deadlines

Year-End Forms

Form Deadline To

W-2 Copy B, C, 2 January 31st, 2018 Employees

W-2 Copy A & W3 January 31st, 2018 SSA

ACA 1094 B/C February 28th, 2018 IRSPaper Copy

ACA 1094 B/C April 2nd, 2018 IRSElectronically

ACA 1095 B/C January 31st, 2018 Employees




Additional Resources



Getting Help with YearGetting Help with YearGetting Help with YearGetting Help with Year----EndEndEndEnd1. Help and documentation: Answers to common questions can be found in the help and

documentation included with Sage HRMS.

2. Sage City Year-End Center: Visit http://sagecity.na.sage.com/p/yearend/ for help, guidance, documents, and downloads specific to Sage HRMS Payroll and Year-End 2017.

3. Sage Customer Support: For additional articles and resources, visit http://support.na.sage.com or contact Customer Support at (800) 829-0170. Have your Sage Customer Number when contacting Support.

4. Tax forms: Because all printed forms have variations, Sage HRMS only supports forms printed by Sage Checks and Forms. Call Sage Checks and Forms at 800 617-3224 or order online at www.SageChecks.com.

5. Delphia Consulting: You can also contact us at (888) 421-2004 option 1 or email us at [email protected].






Getting Help with Getting Help with Getting Help with Getting Help with YearYearYearYear----End End End End (continued)(continued)(continued)(continued)

• Knowledge Base videos on the Delphia Consulting Website

Year-End Checklist






YearYearYearYear----End Check ListEnd Check ListEnd Check ListEnd Check List

1. Install the tax updates, review the accompanying Release Notes, the rates and the taxable wage base for all tax codes.

2. For amounts that have changed at the employee level, use the Update Earning/Deductions task to update rates and/or annual maximums.

3. Make sure earnings and deductions that reached their maximum last year are set to calculate YES on the Employee Payroll detail page.

4. Update 2017 tax information ( for example, W-4 information) for employees.

5. Review accrual balances. You can use the Accruals report (Reports>Payroll>Transaction Reports) to validate each employee’s accruals as they were earned and taken by date. Or, check your Time-off plans in Sage HRMS.

6. Define the next fiscal year if you haven’t already ( select Setup>Payroll>Fiscal Year Calendar).

7. Review Minimum Wage changes for any cities or states employees work

Questions?




Course Summary



Course SummaryCourse SummaryCourse SummaryCourse Summary

1. Understanding the Regulatory Requirements

2. Preparing for Year-End

• Employee Data

• Earnings

• Taxes

• Deductions

• Transaction History

3. Year-End Processes

• Updating the Quarter

• Balancing

• Create Electronic Year-End Files

4. Preparing for 2018

5. Additional Resources






Some of Some of Some of Some of Delphia’sDelphia’sDelphia’sDelphia’s Sage Endorsed SolutionsSage Endorsed SolutionsSage Endorsed SolutionsSage Endorsed SolutionsSage HRMS Active Directory Conduit

Keep employee data in sync while eliminating redundant data entry by HR and IT. Automatically update Microsoft Active Directory (which drives the company directory in Outlook/Exchange) with changes to employee data in Sage HRMS.

Sage HRMS HR Actions

Move to paperless HR with the ability to quickly build web-based forms for routing and approval—No programming skills needed. With Sage HRMS HR Actions create unlimited customized forms that cover the entire employment lifecycle.

Sage HRMS Garnishment Manager

Garnishment orders can often be a headache for payroll professionals using Sage HRMS. For employers with creditor garnishments, student loans, bankruptcy filings, and other garnishment orders—manually calculating, prioritizing, and entering disposable pay for employees can be time-consuming and susceptible to error. Sage HRMS Garnishment Manager streamlines the process of prioritizing, calculating, and updating garnishment records.

Sage HRMS Payroll Year-End 2017

Presented by:

Brandi Haines

sage hrms payroll year-end 2017 - learning center

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