Year End Entries after December 31How to process last year’s adjustments now that it’s a

new year

Presented by: Oregon Statewide Payroll Services

Date: Monday, October 19, 2009

2

Objectives

• Identify TYPES of adjustments to last year’s income

• Identify WHEN to process the adjustments

3

Types of Adjustments

• PERS adjustments

• PEBB adjustments

• Wage adjustments– Timesheet adjustments– PPDB changes– P050 adjustments

4

Which Pay Period?

• Does your agency owe the employee money? Or does the employee owe your agency the money?

• Is this an ongoing employee? Or did the employee separate from state service?– What tax year is on the P190

screen for December?

5

PERS Adjustments

• Which tax year?

• Does it belong in OSPA?

6

PEBB Adjustments

• Will it change the taxable wage for the employee?

• Retroactive adjustments – can you set corrective flags?

• How do you find rates for 2009 (or any other past year)?

7

Wage Adjustments

• Timesheet adjustments– Didn’t get enough hours– Too many hours– Change pay or leave types

• PPDB changes– PCA code changes– Retroactive pay or differential

• P050 adjustments– Fringe benefits– Terminated employee pay adjustments– Double-calc November or December in two

tax years

8

Double-calc in two tax years

• Report B850-01, Nov or Dec Pay Reported in Two Tax Years

• Work the report with same urgency as exception reports

• Correct as soon as discovered– If not corrected before December Run

2, W-2 could be wrong

 

9

Who owes whom?

To determine which pay period to use to make your adjustments, you need to first determine who owes whom:

• Agency owes money to employee

• Employee owes money to agency

10

Agency Owes Employee

• Employee deceased? Not wages.• Is this an ongoing employee?

– Make adjustments in December or January pay periods. Employee gets money with next paycheck.

• Did the employee separate from state service?– Is December Run 2 still open?

• What is the December tax year on P190?– If P190 tax year is last year, make adjustments in

December.– If P190 tax year is this year, or the employee separated

before December, make adjustments in January.

– If December Run 2 is closed, make adjustments in January

11

Employee Owes Agency

• Do not adjust OSPA• Compute repayment figure (gross

minus FICA)• When the employee has completely

repaid the overpayment, coordinate with Kathyron to file an IRS Form W-2c (Corrected W-2) so your agency can recover the employer portion of FICA taxes

12

Suggested Reading

• Flow charts:– Timesheet or Other Gross Pay Correc

tions

• Correction Scenarios from last year’s presentation:– Double-Paid December Wages– Terminated Employee Owed More Wa

ges

13

Questions

• Summary

• What Questions Do You Have?

If you can find a path with no obstacles, it probably doesn't lead anywhere.  ~Frank A. Clark