December SABHRS HR Users Group

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December SABHRS HR Users Group Calendar Year
End Training

• Thursday, December 11, 2008
• 1000 am and 100 pm

2
Todays Agenda

• Calendar Year End Important Dates and Tasks
• Social Security Verification
• Holiday Payroll Schedule
• W-5 Forms (Advance EIC)
• W-4 Forms (Employees claiming Exempt)
• W-2s
• Managing Excess Leave
• What?
• Why?
• Who?
• When?
• Where?
• How?
• Calculating
• New Items to note
• Pitfalls
• Model
• Normal Users Group Discussion
• Questions

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Calendar Year End Important Dates and Tasks

• Social Security Verification
• Holiday Payroll Schedule
• W-5 Forms
• W-4 Forms
• January Paychecks
• W-2s

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Social Security VerificationWhat?

• Process to compare data in SABHRS w/ Social
  Security Administration for accuracy.
• Looks at
• Name
• Gender
• Birthdate
• Social Security Number

5
Social Security VerificationWhy?

• Opportunity to correct names and SSN's prior to
  submitting W-2s.
• Results in more accurate wage reports.
• Saves processing costs and reduces the number of
  W-2cs.
• Allows Social Security to properly credit your
  employees' earnings record, which will be
  important information in determining their Social
  Security benefits in the future.

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Social Security VerificationWhen?

• On or about December 12th and January 5th
• You will be receiving notification from Kathy
  Hankinson of any discrepancies reported. Work
  with employees and clean up these discrepancies
  right away in order for data to be accurate in
  time for W-2 processing.

7
Holiday Payroll Schedule

• Saturday, Dec 20th Sunday, Dec 21st
• IT Maintenance Weekend no SABHRS access
• Monday, Dec 22nd
• Submit all Transfers Rehires to Payroll box
  
• Tuesday, Dec 23rd
• All Self Service time must be entered approved
  
• Wednesday, Dec 24th
• All time must be final approved
• Friday, Dec 26th
• Payroll Friday
• Monday, Dec 29th
• Confirming Payroll - View only in SABHRS

8
W-4s

• December 31st is a FREE paycheck. This is not
  deemed a valid reason for an employee changing
  his/her W-4.
• Employees claiming exempt on W-4 must complete a
  new form each year. http//www.irs.gov/pub/irs-pdf
  /fw4.pdf?portlet3
• 2008 W-4s claiming Exempt are only valid until
  February 15, 2009.

9
W-5sAdvance Earned Income Credit

• Employees must complete a new W-5 form each year.
  http//www.irs.gov/pub/irs-pdf/fw5.pdf
• 2008 W-5s are only valid until December 31,
  2008.
• All W-5s effective PPE 1/2/09 must be sent to
  HRIS for keying.

10
January Paychecks

• Wednesday, January 14th paycheck contains the
  2nd half of December 2008 benefit premiums.
• Wednesday, January 28th paycheck contains the
  first 2009 benefit premiums.

11
W-2s

• Address Changes
• Encourage employees w/ Self Service access to
  verify mailing address in Self Service.
• Key any address changes into Modify a Person in
  order for the correct address to be picked up on
  the W-2 (file uses mailing address).
• You will be contacted when we are ready to load
  the final W-2 address file, so you are aware of
  the cutoff for address updates which will be
  picked up in the printing of W-2s.

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W-2s
Tuesday, January 27th Printing -If all
goes as scheduled, the W-2s will begin printing
by the 27th. -You will be notified when
W-2s are ready for distribution. Monday,
February 2nd deadline -All mailed W-2s must be
postmarked by 2/2/09. Tuesday, February 17th
-The first day 2008 W-2 reprint requests will be
honored. Encourage employees to wait until the
17th to begin requesting reprints in order to
allow the USPS ample time deliver W-2s and
return undeliverable W-2s back to HRIS.
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Calendar Year End Questions
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Managing Excess LeaveWhat is Excess Leave?

• MCA 2-18-617. Accumulation of leave -- cash for
  unused -- transfer.
• (1) (a) Except as provided in subsection (1)(b),
  annual vacation leave may be accumulated to a
  total not to exceed two times the maximum number
  of days earned annually as of the end of the
  first pay period of the next calendar year.
• Amount over two years accumulation is considered
  Excess.
• (1) (b) outlines the extensions for leave
  forfeiture to be discussed later.

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Managing Excess LeaveWhat is considered Excess?

• Excess Thresholds for Full-time Employees

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Managing Excess LeaveWhy is this necessary?

• It is the law
• Legislative Audit
• Equity
• Amongst employees throughout your agency
• Amongst all State of Montana employees
• The Bottom Line
• Paying out Excess is costly

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Managing Excess LeaveWho does this apply to?

• According to MCA 2-18-611
• Permanent full-time employees
• Seasonal employees
• Permanent part-time employees
• Temporary employees
• Short-Term employees
• Student Interns

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Managing Excess LeaveWho needs to manage the
leave?

• You
• Many of you are the ones answering to the
  auditors to the Excess Leave for your agency
• Many of you are the ones authorizing payouts on
  the Gross pay over 5000 Audit every Payroll
  Monday
• Your Agency Director or designee
• Ultimately responsible per MCA 2-18-617 (1) (b)

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Managing Excess LeaveWhen is Excess Calculated?

• The systematic calculation of excess annual leave
  occurs as of the end of the first pay period
  which extends into the next calendar year (PPE
  1/2/09)
• This calculation runs after PPE 1/2/09 is
  confirmed (the evening of Monday, January 12,
  2009).
• Then...you begin any necessary manual
  calculations.

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Calculation Routine

• Regular Accrual is Processed.
• Accruals Added and Taken Subtracted.
• Excess Calculation Routine processed.
• MTBA2101 Reported Excess Leave field updated.
• YTD Taken field indicates leave taken.

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Managing Excess LeaveWhen is Excess Removed?

• Unless an Excess Leave extension is granted (MCA
  2-18-617 (1) (b)), excess leave not used within
  the first 90 days of the calendar year will be
  forfeited. March 31st for most years and March
  30th in leap years.
• If an extension is granted in writing, excess
  leave not used by December 31st will be
  forfeited.

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Managing Excess LeaveHow is Excess Removed?

• BEST
• Employee using his/her leave by taking time off
  enter VLT on the timesheet when leave is used
• NEXT BEST OPTION
• Employee donating his/her leave to the Sick Leave
  Pool
• Complete Sick Leave Contribution Form
• If new member contributing 8 or more hours,
  record EPMBR on the timesheet.
• If existing member contributing any number of
  hours, record ELFP- on the timesheet.
• LAST RESORT
• Record the amount of excess hours on the
  timesheet using VL-

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Managing Excess LeaveThe Basics of Calculating
Excess

• Retrieve MTBA2101 Leave Accrual Report from
  Document Direct
• ALWAYS use the report directly from Document
  Direct for Leave Analysis.
• Depending on your preferred method of calculating
  excess, you can either view online, print, or
  export the report.
• For accuracy in calculations, both the Leave
  Accrual Reports for 12/29/08 and 1/12/09 must be
  used.
• We encourage all agencies to use the DocuAnalyzer
  model to help compare Excess Leave Data for
  employees.

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Leave Accrual Report Important Info to Know
About the Fields

• Excess Leave Hours
• Static field number will remain the same
  throughout the Calendar Year
• If annual leave was recorded on the first
  paycheck of the year, you must add that amount to
  the Excess Leave Hours total for accuracy.
• Average Accrual
• Static field number will remain the same
  throughout the Calendar Year
• Takes previous years YTD Hours Earned divided by
  of payrolls in the previous year (27 for 2008)
• This number will be used to calculate the maximum
  number of leave hours the employee can maintain
  without having Excess Leave.

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Managing Excess LeavePitfalls

• Employees carrying excess leave until end of
  year.
• Employees that have reported excess and leave
  taken on first pay period of year.
• Hiring employees from other recognized public
  entities.

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Pitfall 1

• Employees carrying excess leave until end of
  year.
• Must figure any unused excess from two years ago
  (2007) to remove from balance.
• Must figure excess from previous year (2008) you
  will now need to manage.
• Basic Steps
• Remove 2007 unused excess
• Calculate accurate starting balance for new year
• Calculate new excess threshold
• Calculate new 2008 excess the employee has

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Pitfall 2

• Employees that have reported excess and leave
  taken on first pay period of year.

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Pitfall 2
The employee has 21.3 hours reported as Excess
and has 16 hours reported as taken. Since the
calculation for excess hours is done after the
accrual and taken hours are calculated. The 16
hours taken must be taken into consideration when
looking at the first pay period. This employees
YTD Taken Hours must be reduced for future
reports by 16 hours in order to compare the
reported excess. Once the employee has taken a
total of 37.3 hours of annual leave then the
excess obligation will be met. You may
encounter Pitfall 1 2 for the same employee
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Pitfall 3

• Newly hired employees from other recognized
  public entities where employee is allowed to
  transfer Leave, Longevity, and Leave Accelerator
  Hours. (Not Common)
• Must manually calculate Average Accrual based on
  Leave Accelerator hours.
• Must manually calculate Excess Threshold
• Compare Balance to Excess Threshold to determine
  Excess Leave.

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Tab on DocuAnalyzer Model

• List_1stPP_RepExc_TknHours
• Provides summary that filters the employees that
  have reported Excess and Leave Taken in the first
  Pay Period. CAUTION Only use this summary on
  the first pay period of the year to obtain list.

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• DEMO of using DocuAnalyzer Model with Leave
  Accrual Report to follow at the very end for
  those who wish to stay.

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Excess Leave Questions
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Normal SABHRS HR Users Group Discussion Items

• Task Profile/Task Group Inactivation Additional
  Step
• MUST also remove Default Task Profile ID from the
  employees Maintain Time Reporter Data for the
  inactive task profile to not be available on
  employees timesheet.
• Emergency Contact Report
• What do you need?
• Training Offered Using Workgroups and
  Taskgroups AND Dynamic and Static Groups classes
  12/18/08 from 830 1130 am. Contact Judi
  (x2962 if you wish to attend).
• Lobbying Hours Memo distributed
• Communicate use of RGLOB code to employees if
  your agency utilizing SABHRS reports to track.
• After December 28th will have final ruling on
  Lobbying Threshold.

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Questions? / Concerns? / Ideas?
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DEMO feel free to leave if already comfortable
with the report and model.