sage hrms payroll year-end...

Sage HRMS Payroll Year-End 2016

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© 2016 Delphia Consulting, LLC

www.DelphiaConsulting.com 1


Presented by:

Joe Rotella, SPHR, SHRM-SCP

Course Agenda


Course

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© Delphia Consulting, LLC

DelphiaConsulting.com

Course 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 2017

5. Additional Resources

Regulatory Requirements


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Understand Regulatory Requirements

1. W-2 forms to Employees by January 31, 2017

2. W-2 and W-3 Employer filing, regardless of media, by January 31, 2017

3. Affordable Care Act (ACA) forms 1095-B and 1095-C to Employees by March 2, 2017

4. Affordable Care Act (ACA) forms 1094-B and 1094-C for Employers by February 28, 2017 for paper copies and March 31, 2017 for electronic filing.

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

Preparing for Year-End

http://www.socialsecurity.gov/employer


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Employee Address



Employee Address


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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 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., 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• No commas or periods with Jr. or Sr.• 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


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W-2 Box 13 Designations



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

before creating year-end reports


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Earnings



Earning Fields

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


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Earnings Category Field



Earnings 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)


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Earning 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)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.


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W-2 Reporting



W-2 Designations


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Taxes



Withholdings & 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


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Deductions


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Deduction 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



Deduction Setup


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Deduction Setup



Deduction Setup


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Deduction Setup



W-2 Designations


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Transaction History



Transaction 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.


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Transaction History - Earnings



Transaction History - Deductions


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Transaction History - Taxes & Taxable Wages



Transaction 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


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Transaction History

• If line 9 on the 941 contains 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 Circumstances

• Dependent Care

• Moving Expenses

• Transportation Fringe Benefits

• Deceased Employees

• Personal Use of Employer Provided Vehicles


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Year-End Processes

Updating the Quarter


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Install Fourth Quarter Tax Update

Install the 4th Quarter 2016 Update before generating the first payroll in 2017.

Reminder to back up your data.



Update 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 Earning/Deduction 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


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Reset Goals and Balances

Mass Update Goals

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 goal field 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.



Reset Goals and Balances


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Balancing



Standard Reports for Balancing

Earnings and Hours Report


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Standard Reports for Balancing



Balancing


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Balancing



Balancing

2016


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Validate Year-End Data



Validate Year-End Data (Continued)


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Quarter-End Reports

1. Form 941

2. Schedule B

3. State Income Tax

4. State Unemployment

5. Other State and Local Taxes



Print Year-End Forms

1. No special preparation needed

2. Sage HRMS is check-date driven and distinguishes between 2016 and 2017 dates for tax reporting purposes


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Create Electronic Year-End Files



Sage 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

http://partner.aatrix.com/index.php/sagehrms


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Print 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 Information

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

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

2. Select the form you want to file.

3. 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.


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Additional 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 2017


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Define Fiscal YearSetup>Payroll>Payroll Setup>Fiscal Year Calendar



Legislative Changes for 2017

Social Security Wage Base* $118,500 $127,200

Social Security Tax Rate* 6.2% 6.2%

Medicare Tax Rate* 1.45% 1.45%

Additional Medicare Tax Rate for Wages over $200,000*

.9% .9%

HRMS SQL Taxes, Social Security/ Medicare

2016 2017


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Legislative Changes for 2017 (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

2016 2017

$18,000.00

$6,000.00 $6,000.00401(k), 403(b), 408(k)(6), 457

and 501(c)(18)(D) Catchup



Legislative Changes for 2017

Business $0.xx/mile$0.54/mile

Federal Mileage Rate 2016 2017


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General DeadlinesYear-End Forms

Form Deadline To

W-2 Copy B, C, 2 January 31st, 2017 Employees

W-2 Copy A & W3 January 31st, 2017 SSA

ACA 1094 B/C February 28th, 2017 IRSPaper Copy

ACA 1095 B/C March 2nd, 2017 Employees

ACA 1094 B/C March 31st, 2017 IRSElectronically

Additional Resources


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Getting Help with Year-End

1. 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 2016.

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].

Year-End Checklist

http://sagecity.na.sage.com/p/yearend/

http://support.na.sage.com/

http://www.sagechecks.com/

mailto:[email protected]


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Year-End Check List

1. Install the tax updates, read the accompanying Release Notes, and review 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 or reset the annual and lifetime 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).

Course Summary


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Course Summary1. 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 2017

5. Additional Resources



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Course

For Help, email

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Presented by:

Joe Rotella, SPHR, SHRM-SCP

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