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LET’S HAVE A PICTUREPERFECT YEAR ENDpicture perfectyear end 2014
Seminar Courtesies Silence cell phoneAsk questions at any timeParking lot for items to researchParticipate and Enjoy!!picture perfectyear end 2014
Agenda IntroductionsYear End Processing DatesWhat’s New with Forms and Legislation?Year Round ChecklistSystem Enhancementspicture perfectyear end 2014
Goals and Objectivesü Identify year end best practicesü Prepare for a successful year endü Hear legislative updatesü Determine services, products or enhancements thatadd value to your organizationpicture perfectyear end 2014
holidays&importantdatespicture perfectyear end 2014
ADP WNSC Bank HolidaysDateHolidayADPBankNovember 27thThursdayThanksgivingHolidayHolidayNovember 28thFridayDay AfterThanksgivingOpenOpenDecember 25thThursdayChristmas DayHolidayHolidayJanuary 1stThursdayNew Year’s DayHolidayHolidayJanuary 19thMondayMartin Luther KingDayOpenHolidaypicture perfectyear end 2014
W2 and Tax Processing DatesDateProcessing InformationNovember 20, ThursdayDeadline for Qtr 1-3, 2014 adjustments to be included as amendments andreflected on returnsDecember 26, FridayBegin processing Forms W-2 and 1099January 8, ThursdayQuarter and year end close by 12:00 noon local time.Last day to release W-2s (entire company)January 14, WednesdayLast day to process and release partial W-2 and 1099 adjustments by 5pm PST.Blackout period beginsJanuary 19, MondayW2s loaded to PRWC by end of day(Puerto Rico W2’s will be loaded at a later date)January 26, MondayW-2s and 1099s to leave ADP facility for distribution by this date at the latestFebruary 2, MondayBegin producing Forms W-2CsFebruary 2, MondayBegin distribution of fourth quarter SODsMarch 30, MondayBegin distribution of annual SODspicture perfectyear end 2014
Federal Tax Deposit DatesDateFederal Tax Deposits 100,000December 31, 2014 WednesdayLast day to process payrolls over 100,000 in liabilities with a check date ofDecember 31, 2014January 2, 2015 FridayDeposit due for liabilities greater than 100,000 with a check date ofDecember 31, 2014DateFederal Tax Deposits 100,000January 6, 2015 TuesdayLast day to process payrolls under 100,000 in liabilities with a check date ofDecember 31, 2014January 7, 2015 WednesdayDeposit due for liabilities under 100,000 with a check date of December31, 2014picture perfectyear end 2014
What’s New for 2014picture perfectyear end 2014
W2 Changes Box 12Z Description Change Income under a nonqualified deferredcompensation plan that fails to satisfy section409A. This amount is also included in Box 1.picture perfectyear end 2014
W2 Changes Box 18 KY Locals Full subject wages to print in Box 18 regardless ifthose wages are greater than the taxable wages. Impacted Locals: BAR – Bardstown License Fee CO1 – Covington EIT COV – Covington EIT CRH – Crestview Hills License Fee FCI – Franklin City License Fee FWR – Fort Wright OHI – Ohio County License Fee PAH – Park Hills License Feepicture perfectyear end 2014
Wage Base Limits and PercentagesLimits and RatesSocial Security Base Limit20142015 117,000 118,500Social Security Tax Rate6.2%Medicare Wage LimitNoneMedicare Tax Rate (FMedand FSUR)FUTA Wage LimitFUTA Effective Tax Rate1.45% plus .9% over 200,000 7,000.06%picture perfectyear end 2014
Deferred Compensation LimitsDescriptionLimit Code201420154KP, 43B, 45G 17,500 18,000Eligible YTD Gross Compensation4KQ 260,000 265,000Combined limit for allcontributions4KT 52,000 53,000CU1, CU2 5,500 6,000401(k) Puerto Rico Plan Limit4PT 15,000401(k) Puerto Rico Catch-up Limit4PC 1,500401(k), 403(b), and 457Plan Limit401(k), 403(b), and 457Catch-up Limitpicture perfectyear end 2014
HSA LimitsDescription20142015 3,300 3,350Contribution Limit Family HDHP coverage 6,550 6,650Minimum Deductible Self-only coverage 1,250 1,300Minimum Deductible Family coverage 2,500 2,600Maximum out of pocket Self-only coverage 6,350 6,450Maximum out of pocket Family coverage 12,700 12,900Contribution LimitSelf-only HDHP coveragepicture perfectyear end 2014
2015 Tax Tables Downloads available to clients onThursday, November 20th for pick up 2014 or 2015 CheckPro checks can thenbe created – Use Caution!picture perfectyear end 2014
Pop QuizQuestion:When is the last day to release 2014 W2 foryour entire company?picture perfectyear end 2014
AnswerJanuary 8, 2015 (Thursday) at 12 noon localtimepicture perfectyear end 2014
REMINDERSpicture perfectyear end 2014
Mergers and Acquisitions November 3 - Last day to submit Company Addon request and FEIN or Legal Name changeseffective 1-1-2015picture perfectyear end 2014
Affordable Care Act (ACA)- Reminders Required IRS reporting begins January 2016 for 2015 Form 1095-C (Employee statements):January 31, 2016 (in conjunction with W-2distribution) Form 1094-C (Employer Transmittal):February 28, 2016 (or March 31, 2016 if filedelectronically) The IRS forms are to be completed by the client Review Eye on Washington for detailspicture perfectyear end 2014
Additional sources for ACA Governmental althreform ADP p-researchinstitute/insights.aspx (Eye on icture perfectyear end 2014
Year End ReportsYear Round Checklistpicture perfectyear end 2014
Year Round Checklist Use proactively to eliminate Year End stress Year Round Checklist Use this each quarter end Everything you needed to know about Year End Tailor it to your department needsLocated in the VIP room under YE Resource Bookpicture perfectyear end 2014
Calendar Level Review the remaining 2014 payrollprocessing dates Identify the West NSC and bank holidays Review the 2015 payroll process calendar Send calendar changes to your ClientService Consultantpicture perfectyear end 2014
Annual Payroll Calendar Reportpicture perfectyear end 2014
Company Level Update company-level deductions Processing 2015 calendars in 2014 Review PTO plan roll logicpicture perfectyear end 2014
PTO Roll Logic Reportpicture perfectyear end 2014
Company Level Review to verify information is set upaccurately:Company legal name and addresspicture perfectyear end 2014
Legal Namepicture perfectyear end 2014
Company Level Company Level Review Tax ID’s Submit tax ID’s and rate changespicture perfectyear end 2014
Tax Jurisdiction Reportpicture perfectyear end 2014
Special ConsiderationsSample listing of State jurisdictions that do not allow “Applied For” IDs for filing:AL SIT/SUIHI SUIAR SUILA SITIA SITCO SUIIN SITPR SUIDE SUIMA SUIUT SITDC SUIMN SIT/SUIWA SUIFL SUIGA SITNM SIT/SUIpicture perfectyear end 2014WI SUI
Special Considerations§ Sample listing of Local jurisdictions which do notallow “Applied For” IDs for filing:Denver, CO/Aurora, COJefferson, ALWilmington, DESpringboro, OHKenton County, KYScranton, OHKettering, OHIN locals§ Contact ADP for information on a specific localpicture perfectyear end 2014
940 Filing & FUTA Credit Reduction940 Filing Impacts:§ Avoid possible 940 drops by obtaining and providing tax identificationnumbers§ Eliminate “Applied For” status§ Registration Services – an ADP Service available to assist clients with StateRegistrationFUTA Credit Reduction:§Department of Labor determines the credit reduction each year andannounces the update after November 10th§ADP Tax Service will communicate details regarding possible FUTA CreditReduction and Credit Reduction Status during the last half of 4th Quarterpicture perfectyear end 2014
Company Level Taxation of earning/deduction codes Earning/deduction codes are set up to printcorrectly in W-2 summary Verify that Roll up earning/deduction codesare correct Box 12 and 14 are marked accurately W-2 retirement box conditionspicture perfectyear end 2014
Earnings & Deduction Taxation Analysis Reportspicture perfectyear end 2014
Employee Level Confirm employees have correct employee type Examples: “E” (Employee)“C” (Contractor)“R” (Retiree) Review tax-exempt associatespicture perfectyear end 2014
Employee Typepicture perfectyear end 2014
Tax Exempt Flagspicture perfectyear end 2014
Employee Level Verify employees are set up in the correctstate and locality Verify Boxes 12, 13, & 14picture perfectyear end 2014
Employee Level Exemption from Federal Income Tax Withholding:– IRS Form W-4 provides employees with the option (if certaincriteria are met) of claiming that they are exempt from federalincome tax withholding. This exemption remains in effect only for alimited period of time. For employees who claimed exempt in 2014,the exemption expires as of February 17, 2015. ADP recommendsthat as part of your year-end process, you review any employeeswho claimed exempt from federal income tax withholding in 2014,request that those employees submit a Form W-4 for 2015 if theycontinue to qualify for this exemption, and make any necessarywithholding adjustments for employees who do not file a Form W-4for 2015 by the February 17, 2015 deadline.picture perfectyear end 2014
W-2 Preview Report – cover pagepicture perfectyear end 2014
W-2 Preview Reportpicture perfectyear end 2014
Qualified Pension The IRS requires each employer to notify every employeewho was an active participant in a qualified pension,profit sharing or stock bonus plan for a particular taxyear. This requirement is met by checking the“Retirement” plan box (Box 13) of the employee’s FormW-2.ADP will automatically mark the W-2 Retirement plan boxif the employee has a 401(k) year-to-date deduction.Client needs to determine if an employee is eligible as anactive participant in a qualified profit sharing and/orstock bonus plan for a particular tax year. If YES, clientneeds to place a “Y” in the “Retirement” box of allemployees who received a Profit Sharing and/or StockBonus Plan contribution in 2014.picture perfectyear end 2014
Example W-2picture perfectyear end 2014
Employee Level Correct W-2/1099 report errors Verify social security numbers andresolve issuespicture perfectyear end 2014
W-2/1099 Error Reportpicture perfectyear end 2014
Enumeration Verification System To verify Social Security Numbers, use thefollowing guidelines to contact the SSA: Direct keying up to 10 names/ SSN’s with immediateresults Upload file. You can upload up to 250 SSN’s per filewith next business day results. SSA EVS details available athttp://www.ssa.gov/employer/ssnv.htmpicture perfectyear end 2014
Employee Level Verify Form 1099 information Earnings are accurately distributed to Box 7 ofForm 1099Rpicture perfectyear end 2014
1099-R Preview Reportpicture perfectyear end 2014
1099-R Distribution Codepicture perfectyear end 2014
Employee Level Correct negative wagespicture perfectyear end 2014
Negative Wage Reportpicture perfectyear end 2014
Employee Level Review supplemental pay Review deduction code limit and limitperiods for the upcoming yearpicture perfectyear end 2014
Deduction & Supp Pay Limit Reportspicture perfectyear end 2014
Employee Level Notify employees to update W-4informationpicture perfectyear end 2014
Miscellaneous Items Post fringe benefits prior to the last payroll ofthe year Post third-party sick pay payments Client Toolboxpicture perfectyear end 2014
Processing Third Party Sick PayProcessing Third Party Sick Pay depends onthefollowing:ü Who issues the W-2?ü Who remits the employee taxes?ü Who remits the employer taxes?picture perfectyear end 2014
Third Party Sick Pay Scenariospicture perfectyear end 2014
Client Toolkit – VIP Roompicture perfectyear end 2014
DISTRIBUTION PROCESSW2 AND 1099picture perfectyear end 2014
Forms Distribution Split wrap distribution of W-2sPaperless W-2 OptionDetermine sort preferenceVerify delivery methodVerify delivery locationDetermine how you will distribute formsand advise mail room staffpicture perfectyear end 2014
Forms Distribution Schedule date to release W-2 and 1099s Request sample W-2s from Client Service Consultant Sign the W-2 and 1099 release forms Complete and fax the W-2 and 1099 DeliveryVerification formpicture perfectyear end 2014
Pop QuizFor employees who claimed exemption forFIT Withholding in 2014, when does thisexemption expire?picture perfectyear end 2014
AnswerAnswer: February 17, 2015picture perfectyear end 2014
SYSTEM ENHANCEMENTSpicture perfectyear end 2014
Payroll Enhancements Worksheet Audit Report Modification Inactive Local Codes Validation TDF (Transfer Data Files)– Quarterly Audit Reports– Report Sort Modification– Saving Reports Default Employeepicture perfectyear end 2014
Payroll Enhancements Quarterly Audit Reports New Indicator Payroll Audit Report Enhancement Security Reports Modification Special Worksheet Enhancement New Check Pro Interface Deduction Report – ability to pull all records withhistory. Consolidated Company data in a downloadpicture perfectyear end 2014
Upcoming Enhancements TPP, View Checks Screen Import Manager template Garn Info Screen All/Active Button on send/receive data screen Direct Deposit distribution flag for special payrollpicture perfectyear end 2014
PRWC Enhancements Current Paperless W2s with the use ofNetsecure/iSI Mobile Contractor ProvisioningFuture Administrative Service Employee Service Data Transfer enhancementpicture perfectyear end 2014
Tax Updates Tax Center of Excellence (T CoE) Continued enhancements of the tax andbanking portal for tracers and amendmentspicture perfectyear end 2014
What’s Changing for ClientsWhat’s Changing?FromToHow I’m being serviced Multiple handoffs Single point of contactWho services my taxneeds A large pool of ADP people A small connected team of taxexpertsHow I feel Anonymous Connected to ADPSupported by ADPWhat I say “Why can’t I speak to the tax expert?”“I want to speak to Sam Dimas!” “I sleep better knowing you take careof my taxes.”“You’ve made taxes a ‘no-brainer’.”“ADP is on top of legislative taxchanges.”“I can speak directly to a tax expert, ifI need to.” picture perfectyear end 2014
Tax Center of Excellence Strategy Summarypicture perfectyear end 2014
ADP Tax & Banking Portalhttps://facs.adp.com§§§§§Statement of Deposits (SOD)Agency Notices and ResponsesAmendment / Exception PackagesTax InvoicesState Unemployment Verification (SUI rates)Tax Direct line: 1 (866) 667-9502picture perfectyear end 2014
Statements of Deposits and Filings SODs may be used by most agencies in place of the actual 940 Statement of Deposits and Filings (SODs) – verify the following: Federal, State and Local tax identification numbers SUI Rates Filing ResponsibilitiesThe following packages are available exclusively on the ADP Tax &Banking Portal https://facs.adp.com Statements of Deposit (SODs) Agency Notices and Responses Amendment / Exception Packagespicture perfectyear end 2014
SOD Examplepicture perfectyear end 2014
Pop QuizWhat is the toll free number that youcan use to call TCoE or tax direct?picture perfectyear end 2014
Answer1 (866) 667-9502picture perfectyear end 2014
ADP Tax Partner ProgramExcellent Employee Benefit at No Cost to You The ADP Tax Partner Program provides your employeeswith the ability to download ADP W2 information intoselect tax preparation services and software. Download W2 data directly to: Intuit, H&R Block, Complete Tax, Liberty Tax, Instant Tax, andJackson Hewitt Clients can still opt out of the ADP Tax Partner Programpicture perfectyear end 2014
More than 1200 NAS clients attend annuallyOver 170 education, training and roundtable sessions11/18/2014picture perfectyear end 201480
ADP Eye on WashingtonSubscribe to Eye on Washington for the latest on how Federal andState tax law changes may impact your business. Stay current onthe latest legislative updates. Please enter your email address tosubscribe.Visit the Eye on Washington Web page located at: www.adp.com/regulatorynewspicture perfectyear end 2014
The Bridge: ADP’s Client Community“The Bridge sponsored by ADP is an environment where clients can collaborate on topics related to ADP solutions and related HCM topics. Content is categorized by HR &Benefits, Payroll, Talent, Tax, and Time & Labor, and the structure allows members to quickly find the answers to their questions and network with others.” Visithttp:thebridge.adp.com and log in Today!Categorized contentTake an actionSimple to useSearch & referenceFast answersTimely resources
Questionspicture perfectyear end 2014
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THANK YOU FORPARTICIPATING TODAYpicture perfectyear end 2014
Affordable Care Act (ACA)- Reminders Required IRS reporting begins January 2016 for 2015 Form 1095-C (Employee statements): January 31, 2016 (in conjunction with W-2 . ADP will automatically mark the W-2 Retirement plan box if the employee has a 401(k) year-to-date deduction.
