Payroll User Group Meeting

1
Payroll User Group Meeting

• Wednesday December 3, 2008
• 930 A.M. 1230 P.M.

2
Welcome

• Martin Benison Comptroller

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HR/CMS Upgrade

• Funded through the IT Bond
• Program Director Richard Divosevic
• Most Recent Project was State of Minnesota
  PeopleSoft Upgrade
• Goal is to improve efficiencies, reduce
  administrative processes, expand technology for
  HR functions and eliminating, as much as
  practicable, silos of disparate data in multiple
  non-integrated systems

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HR/CMS Upgrade Project

• Includes better navigation, easier data entry,
  and the introduction of the person model that
  allows the Commonwealth to better capture all
  different types of workers and recruits.
• The introduction of employee and manager self
  service allowing employees to enter time and
  attendance, update personal and tax information,
  and see pay and leave time amounts.
• Improvements and automation of some of the
  on-boarding functions through recruiting and
  hiring technology.

5
PayInfo

• Campaign is successful
• 32 Departments are now Paperless
• Looking to Add Retirement Payments as a new
  feature
• Past winners of Raffle

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Direct Deposit/PayInfo Stats Last Year
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Direct Deposit/PayInfo Stats This Year
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Measurable Results

• Tripled the number of Pay Advices Suppressed
• Real savings in printing and delivering costs
• Currently Saving 58 Trees a Year
• 55 Increase in PayInfo Users
• Employees are comfortable with the technology
• 8,647 employees suppressed their own advices
• 1,348 fewer checks 96 on Direct Deposit

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PayInfo Raffle

• Winner is.
• Paperless Department SCA
• Top Ten Employee Suppress Department EQE
• PayInfo
• Kenneth Koch - DOR
• Tania Gil DSS
• Barry M. Labonte - DOC

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Payroll User Group

• Kevin McHugh

11
Food Drive

• To Support the Food Pantry at St. Johns the
  Evangelist (on Bowdoin St)
• Thank you!

12
Massachusetts State Employee Credit Union

• Ed Connors

13
COMECC 2009

• Scott Olson, HRD

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(No Transcript)
15
SmartPlan

• Rob Young- Great West

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SMART Plan Agenda

• Presented by Rob Young, Account Manager
• Excess Contribution Refund Procedure
• 2009 Contribution Limits
• Deferral File Report
• Questions

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Refund Procedure

• Submit excess contribution refund requests to
  Jane Waldron in the Cash Management Department of
  the State Treasurers Office.
• Cash Management will forward corrections to
  Great-West and provide authorization to process
  the refund.
• Great-West will process a withdrawal from the
  participants account and overnight a refund
  check to the Cash Management Department.
• Cash Management will forward refund check to the
  agency and arrange for a correction to the
  participants payroll history via the
  Comptrollers Office.

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Refund Procedure (cont.)

• Submit requests for refunds ASAP, before
  year-end otherwise your agency runs the risk of
  having to issue a W-2C.

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2009 Contribution Limits

• Now available at www.mass-smart.com or via your
  local representative.
• Provides employees with basic facts about IRS
  contribution limits and catch-up provisions.

20
Deferral File Report
21
Questions?

• Thank you!

22
GIC Updates

• Kevin McHugh Payroll Bureau Director

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Health Care Reform Change

• Legislative changes signed on November 29, 2007
  change the taxation of Non-IRS Dependents (IDH).
• Since the inception of Health Care Reform Act in
  July these amounts have been added to both
  Federal and State taxable gross (and applicable
  Medicare) .
• Change is retroactive (signed in November but
  effective 1/1/07) the employees had State Taxes
  withheld.
• No department action is needed. CTR will adjust
  the W-2 - MA Taxable Gross Balances. Any Tax
  Refunds due will occur when employees file their
  State Taxes.
• CTR and GIC are currently preparing notices.

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Dependents 19 and Over

• The GIC conducted recertification of Non-IRS
  dependents age 19 and over in November
• Deadline for returns is November 17 - December 1
• Recertification includes additional questions for
  2007 and/or 2008 tax year
• Insured's are subject to imputed income for their
  Non-IRS dependents
• Enrollee responses to recertification may modify
  insureds imputed income liability for 2008 W-2
• In January 2009 the GIC will distribute to GIC
  Coordinators and post to its website new
  Dependent Age 19 and Over Application
• Employee questions 617-727-2310 ext. 5

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W-2 Distribution and Year End Processing

• Kevin McHugh Payroll Bureau Director

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W-2 Changes

• Changes for 2008 W2
• Per IRS the Employees SSN is being moved further
  from the address label. Security reasons.
• Commonwealth is using a heavier grade-more secure
  envelope.
• Reminders from 2007
• (BOX14E Pretax Health Insurance) - all pretax
  health insurance deductions. Includes both
  Connector and Group Insurance.
• (BOX14P - Qualified Parking) - both Federal and
  State Non-Cash Parking.
• (BOX14U Imputed Health benefit) - all imputed
  health benefits. Includes Non-IRS Dependents
  (IDH) and Same Sex Health (IHF).

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W-2 Distribution

• W-2 Delivery
• Update Home Address by January 4
• Postmarked before January 31
• W-2 Returns
• Sent to CTR Key Contact List Payroll Directors
  
• Departments are responsible for re-distribution
• W-2 Reprints
• Instructions are available on CTR/Procedures
  Website
• Stamp Reissue
• HMTAX007 available by January 31
• Non-Official Copy on PayInfo
• W-2C Corrections
• (new) Include a copy of the original W-2 and a
  detailed memo
• Send to Jim Box at CTR
• IRS website or JFK Fed Bldg for forms

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Preparation for Tax Year End

• Payperiod End Date 12/20/08 is the last Tax Year
  Payperiod (Check in Hand 12/26)
• Non Taxable payments are shown on pay stubs but
  will not be on W-2

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Tax Year End

• Review HMTAX010 Report for potential Medicare Tax
  Errors
• Complete Payroll Refunds and Submit to RET by
  12/19 for all Pay Periods prior to 12/20/2008
• Any Payroll Refunds for PPE 12/20/08 must be
  submitted to RET by 12/31/08

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Deferred Compensation Refunds

• All Deferrals-in-Error or over contributions
  need to be refunded to the employee prior to
  12/31 in order to have the W-2 updated correctly.
• Refund requests go to ING a copy to TRE c/o Jane
  Waldron.

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Employer Provided Car Benefit

• Non-cash payment included in Paycheck
• Departments should be entering all CAR imputed
  income via HR/CMS
• Period is November 1 to October 31
• Code is CAR (amounts)
• 1.50 per commute or Amount Submitted by
  Employee on OSD Form
• See OSD Memo

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Housing Allowance

• Cash payment
• Departments should be paying all Housing payments
  via HR/CMS
• Code is BH7 (amounts)
• note College Presidents have more codes
  available to them

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DCAP/HCSA/COMECC Automated End-Deduction

• HCSA, DCAP, HCSAF and the COMECC will be end
  dated on 12/24/2008.
• HR/CMS will systematically insert a new row with
  an effective date and deduction end date of
  12/20/2008.
• Payroll Offices will not have to manually end
  these deductions.
• Payroll Offices can now begin entering
  HCSA/DCAP/HCSAF and COMECC deduction data for
  2008 by using an Effective Date of 12/21/2008.
• Reports on Doc Direct
• HCSA DCAP - HMTAX006
• COMECC HMTAX005

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Christmas Kevin !
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Christmas Payroll

• Payroll will be processed on Tuesday 12/23/08
• HRCMS will keep its normal online hours as
  follows
• Saturday 12/20 - 600 am - 600 pm
• Sunday 12/21 - Not available
• Monday 12/22 - 600 am - 600 pm
• Tuesday 12/23 - Not available

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Advice Delivery

• -all paper advices or checks will not be
  available for pick up at 1 Ashburton Place until
  12 noon on those Friday paydays. Please plan
  accordingly.

37
2009 Payroll Processing

• Kevin McHugh

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2009 Payroll Processing

• Notable Tax Changes For 2009
• EIC Minimum Income Eligibility will be raised
• Qualified Parking exclusion raised 10 to
  230/month
• Qualified Transit exclusion raised 5 to
  120/month
• Deferred Comp Annual Limits raised
• Normal has increased by 1,000 to 16,500
• Over 50 Catch-up Provision has increased by 500
  to 5,500
• Last 3 Year Catch-up has increased by 1,000 to
  16,500 (Max 33,000)
• HCSA limit unchanged (500 to 2,500)
• DCAP limit unchanged (5,000)

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2009 Payroll Processing

• Need W-5 for Advance Earned Income Credit
  Payments for CY09 any existing AEIC expires and
  department must inform employees
• CTR Payroll will end all current AEIC employees
  with an Effective Date of 12/20/08. Departments
  can enter a new row with an End Date gt 12/21/08

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2009 Payroll Processing

• Need new W-4 for any employee wishing to claim
  EXEMPT for Federal tax withholding
• Notify Employees by Dec 30
• Deadline for new W-4 is Feb 15 otherwise S-0
• Report HTAX103 identifies people who need review
• See IRS website for W-4 form
• Reminder Use HR/CMS Radial Button (not
  Allowances gt10)

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2009 HIRD Information

• Keep collecting and entering HIRD forms
• Report MBEN021R Departmental HIBO Report is
  available.
• HRCMS is at 38 compliance
• Tax Reporting
• Form MA 1099-HC will be issued by Provider for
  reporting purposes
• Form MA 1099-HC will be issued to the subscriber
  of the plan and will list spouse and dependent
  information. 
• Recipients of MassHealth and Commonwealth Care (lt
  300 of the FPL) will not receive 1099-HC
• See DOR website for FAQs regarding Healthcare
  Reform responsibilities for Employees, Employers
  and Providers

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2009 Payroll Processing

• NEW HIRES - The United States Customs and
  Immigration Services has created a new Employment
  Authorization Section on their website with
  instructions and a helpful Frequently Asked
  Questions About Employment Eligibility. See the
  website at http//www.uscis.gov/portal/site/uscis

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HIRD / HIBO

• HIRD Forms are valid from July 1 to June 30
• New Forms should be collected and entered in HIBO
  by June 30
• In HIBO, use an Effective Date that is valid for
  the applicable year.
• An Effective Date of 7/01/08 is valid until
  6/30/09
• An Effective Date of 6/1/08 is only valid until
  6/30/08
• Do Not forget the Signature Date
• See JobAid for instructions (HR/CMS KC)

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SSN Validation

• Kevin McHugh

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SSN Verification Results

• Submitted 93K VS 97K in 07
• Errors 1.5K in 08 VS 2.5K in 07
• 2008 counts
• SSN not in file (never issued to anyone) 14 (was
  13)
• Name and DOB match gender does not match 442
  (was 666)
• Name and gender match DOB does not match 450
  (was 1,166)
• Name matches DOB and gender do not match 19 (was
  45)
• Name does not match DOB and gender not checked
  536 (676)

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SSN Verification Cleanup

• Document Direct Report MTAX014R lists the errors
  found between the SSA and the data HR/CMS. See
  new Job Aid
• Use the name issued on Social Security Card or
  other paperwork. (Marriages especially)
• Proof of SSN is done at time of hiring, do not
  set up an employee with a temporary SSN expecting
  you can change this later.

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Proposed Changes for 2009

• Per Executive Order 12989 signed by President
  Bush June 6, 2008 all Federal Contractors and
  sub-contractors must use an employment
  verification system created by the Department of
  Homeland Security.
• DHS program is known as E-Verify (is not the same
  as SSAs SSNVS used by CTR).
• Effective for all new hires as of Jan 15, 2009
  paid under federal contract with the Electronic
  verification clause stipulated in the contract.
• More Info to come

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• Happy Holidays!