New Employees in OSPA, Part 1

1
New Employees in OSPA, Part 1

• Oregon Statewide Payroll Services

2
Class Goal

• To provide a new payroll staff member with the
  essential skills needed to set-up a new
  employee in OSPA

3
Class Objectives

• By the end of the class, the student will be able
  to
• Look up an employee on the P030 and identify the
  following elements
• Benefit package code
• Job status information
• Timesheet code
• Labor costing
• PERS job class code
• Personnel transaction code

4
Class Objectives Cont'd

• Determine the appropriate work schedule code
  enter the code on the P020
• Enter W-4 retirement information on the P010
• Determine needed deduction codes for the
  following enter / verify them on the P070
• Applicable PEBB insurances
• Union dues / fair share
• Electronic deposit
• Parking / Mass Transit

5
Class Objectives Cont'd

• Describe the entries needed if an employee
• Opts out of health insurance
• Waives PEBB benefits
• Signs-up for domestic partner insurance

6
Class Handouts

• PowerPoint Slides
• New Employee Checklists
• 2009 PEBB Domestic Partner Worksheet
• Report samples
• Exercises 1 - 7

7
Class Outline

• Employees New to State Service
• The Basics
• PEBB Opt Out
• PEBB Waive
• PEBB Domestic Partner Insurance
• PA Entered After Run 2
• Returning Retiree

8
Employees New to State Service
9
Checklist the Basics

• Confirm data on P030
• Enter work schedule on P020
• Enter retirement and tax data on P010
• Enter deductions on P070

10
P030 Job Status Data

• P030 OR,,1,999999 JOB
  STATUS DATA 030
• LASTNAME, FIRSTNAME
• JOB STATUS INFO
  CONCURRENT JOB INFO
• JOB STAT START/STOP 050806/999999
  REPORT DISTR CD 140
• PERS AGY/POS/DFC/SC 10700/0157006/0/0
  RECOG SVC DT 050806
• PT-FT CD/PCT F/1.0000
  CITY CNTY CD 24/M
• APPOINTMENT TYP DT/CD 050806/P
  STANDARD HRS PER DAY 8.000
• EMP REPR/CLS/OPT/STEP OA /C0107 /A/A/06
  MASS TRANSIT DIST S
• PERSONNEL TRANS CD 141
  TIMESHEET CD N
• BENEFIT PKG CD CO
• LEAVE ACCRUAL SVC CD 1
  EMPLOYEE ID
• PERS JOB CLASS CODE G
• CREW-UNIT 1401
• WAGE BASIS CD S
• PERSONNEL BASE RATE 2597.00 ---FUND
  SPLITS--- -FIXED MLY DIFFS--
• ADJUSTED BASE 2597.00 LABOR
  COSTING PCT PAY PCT/ PCT/
• PERSONNEL PAY RATE 2597.00
  TYPE AMT AMT
• EQUIVALENT RATE 14.98
  CD

11
P030 Cont'd

• JOB STAT START/STOP
• PT-FT CD/PCT
• PERSONNEL TRANS CODE PA Code in the PPDB
  (Resources, DAS Human Resource Services, HR
  Systems, New Personnel Action Codes)

12
P030 Cont'd

• BENEFIT PKG CD (Publications, Reference Manual,
  Appendix H)
• PERS JOB CLASS CODE (Resources, DAS Human
  Resource Services, HR Systems, Wage Job Class
  Codes)
• WAGE BASIS CD

13
P030 Contd

• ADJUSTED BASE
• TIMESHEET CD
• FIXED MLY DIFFS
• OSPA Reference Manual, Screen Descriptions, P030

14
Exercise 1 (P030)
15
Work Schedule
16
P020 Work Schedule Data

• P020 OR 1 WORK
  SCHEDULE DATA 020
• LASTNAME, FIRSTNAME WR13
  UPDATE COMPLETED
• START END WS SHIFT
  SHIFT
• DATE DATE CODE START
  CODE
• ?
• ? 050106 999999 AA7 0800
  1

17
P020 Fields

• START DATE -- MMDDYY
• END DATE -- system calculated, 999999
• WS CODE Reference Manual, Appendix A
• Most are 40-hour 1-week or 80-hour 2-week
• For part-time, calculate full-time equivalent
• If ? 1 or 2-week schedule, contact OSPS

18
P020 Contd

• SHIFT START 24-hr clock, enter if ? 0800
• SHIFT CODE 1day, 2evening, 3night

19
Exercise 2 (P020)
20
Retirement Contributions, Tax Withholding
21
P010 Withholding Data / Locator Data

• P010 OR
  WITHHOLDING DATA / LOCATOR DATA 010
• LASTNAME, FIRSTNAME WH63
  INQUIRY ONLY THIS AGCY
• RDC/CREW/CST CTR 140
  ----------MANDATORY WITHHOLDING----------
• ? TAX DATA FOLLOW-UP FLAG Y BEG
  DATE STAT EXEM ADDL END DATE
• ? FINAL CHECK ISSUED 000000 ? FED
  000000 00 0000 000000
• ? FINAL CHECK PERIOD ENDING 000000 ? STATE
  000000 00 0000 000000
• ? RETIREMENT START DATE 000000
• EFF ----FEDERAL---- -----STATE----- EIC
  RTMT RTMT RTMT FICA SAIF UNEM
• DATE STAT EXEM ADDL STAT EXEM ADDL CD
  SYST STAT ACCT SUBJ SUBJ SUBJ
• ? 000000 S 00 0000 S 00 0000 N
  N N Y Y Y
• ?
• ----WAIVERS----

22
Check Dates

• FINAL CHECK ISSUED
• FINAL CHECK PERIOD ENDING
• If dates present, change to 000000

23
W-4

• If no W-4, OSPA defaults to single with 00
  allowances (IRS required)
• IRS W-4 http//www.irs.gov/pub/irs-pdf/fw4.pdf
• DO NOT change withholding for pay period after
  run 1 final

24
W-4 Contd

• TAX DATA FOLLOW-UP FLAG
• Will be Y for new employee -- requires follow-up
  for W-4
• Change to N when enter W-4 information
• FEDERAL / STATE
• STAT
• J married filing jointly
• N exempt
• S single or married filing separately

25
W-4 Contd

• FEDERAL / STATE cont'd
• EXEM of withholding allowances from W-4
• ADDL whole dollars, 0100 100.00
• If some LWOP and some paid hours, OSPA will
  deduct even if creates net pay negative
• Must also have STAT and EXEM

26
W-4 Cont'd

• If different withholding for state and federal,
  need two W-4s
• Write For Oregon Only on the bottom
• If gt10 withholding allowances or exempt from
  withholding, send copy to OSPS
• If exempt, must re-submit yearly by February 16
• E370-06-1 Income Tax Exemptions

27
Net Pay Calculators

• http//dhrmf.hr.state.or.us8082/cics/cwba/eswebgw
  f/
• http//www.irs.gov/individuals/article/0,,id96196
  ,00.html
• http//www.paycheckcity.com/pages/personal.asp

28
Out-of-State Duty Station

• Other state may require withholding
• Clues
• Home address on PBED or W-4
• Work phone on PBED, PBET, or PBEV
• Notice from HR or manager
• Contact OSPS when identify

29
Out-of-State Duty Station Contd

• OSPS
• Contacts other state
• Establishes deduction code on PTD1
• Reports and pays taxes
• Agency
• Enters P070 deduction monthly
• Notifies OSPS when employee transfers and when
  salary changes

30
Foreign Nationals

• I-9 alien authorized to work until ____
• OSPS Form 99-01 Foreign National Residency
  Determination (Forms, Employee Forms)
• Resident aliens are taxed as U.S. citizens

31
Foreign Nationals Contd

• Nonresident aliens have separate documentation
  and withholding requirements
• Recommended Practices, Taxes, Foreign Nationals

32
W-5

• W-5 http//www.irs.gov/pub/irs-pdf/fw5.pdf
• EIC CD
• J married, both spouses exempt
• M married, only employee exempt
• N not exempt
• S single or head of household
• Must re-submit yearly by January 1
• EICRPT Yearly Earned Income Credit for Tax Year
  YYYY Report

33
Retirement Information

• PERS Public Employees Retirement System
• Tier 1 defined benefit plan for public
  employees hired before 1/1/96
• Tier 2 defined benefit plan for public
  employees hired between 1/1/96 8/28/03

34
Retirement Contd

• OPSRP Oregon Public Service Retirement Plan for
  employees hired after 8/29/03
• Defined benefit plan funded by employers
  contribution or state match
• Defined contribution plan or Individual Account
  Program (IAP) funded by employees contribution
  or state pick-up

35
Retirement Contd

• jClarety web-based retirement system
• EDX Employer Data Exchange, an electronic
  reporting tool to jClarety

36
Retirement Resources

• Data Entry Guides, PERS
• Start Contributions
• Wage and Contribution Adjustments
• PERS Employer Manual (Resources, Employee
  Benefits, PERS, Employers, Publications)

37
P010 Entry

• Generally
• Six full months with same employer
• Six hundred hours in calendar year
• Qualifying position
• PERS JOB CLASS CODE on the P030
• 1, 2, 4, 9, H, P, Y, Z start first month
• B, D, M, N, R, X will not qualify
• G, F, L, E, S -- determine if employee has met
  eligibility requirements or has dormant account

38
Retirement Contribution Not Eligible

• RTMT SYST N
• RTMT STAT N
• If in waiting period, enter RETIREMENT START
  DATE MMDDYY
• Target date employee will be eligible
• PERS Employer Manual provides guidelines for
  determining
• E357-020 Employees Eligible for Participation in
  Retirement Report

39
Retirement Contribution -- Eligible

• RTMT SYST
• Based upon PERS JOB CLASS CODE from the P030
• Resources, DAS Human Resource Services, HR
  Systems, Wage Job Class Codes
• RTMT STAT D (employer pick-up)
• RTMT ACCT Optional field, Tier 1 Tier 2
  members only

40
Retirement EFF DATE

• If prior to run 1, use current pay period
• If after run 1
• Enter EFF DATE for next pay period
• Make an entry on the P060 Tax/OPE Adjustment on
  File for current pay period
• Entry Guide, PERS, Wage or Contribution
  Adjustments

41
Other P010 Fields

• FICA SUBJ Y
• Social security and Medicare taxes
• Foreign National may be exempt through a
  Totalization Agreement notify OSPS
• SAIF SUBJ Y
• UNEM SUBJ Y

42
Exercise 3 (P010)
43
Deductions from Employees Pay
44
Types of Deductions

• Mandatory deductions included in the payroll
  calculation
• Federal state income taxes
• Social security
• Medicare
• Workers Benefit Fund assessment

45
Deduction Types Contd

• Mandatory deductions entered on the P070
• Garnishments
• Support Orders
• IRS Tax Levies
• Union dues / fair share
• Deferred Compensation loan repayment

46
Deduction Types Cont'd

• Voluntary deductions entered on the P070, such as
• Deferred compensation
• Parking or mass transit
• Charitable Fund Drive / Governors Food Drive
• Oregon College Savings Plan
• Oregon Veterans Home Account
• Savings bonds
• Union insurances

47
P070 Deductions and Deduction Adjustments

• P070 OR,,053106
  DEDUCTIONS AND DEDUCTION ADJUSTMENTS
• LASTNAME, FIRSTNAME
• DA98
  PRESS ENTER FOR NEXT PAGE
• A DED PLAN OPE DATE -EMPLOYEE---SHARE-
  JOB EMPLR BOARD VENDOR
• D CODE CODE CD BEGIN END PCT PCT FIXED
  SHR SHARE SHARE SHARE
• J DESC DESC GRS NET AMOUNT
  PCT
• ? OTNN AAA D 053106 999999 .00
  .00 .00 .00
• ODS TRD DENT EMP ONLY COMM
  TRANS DATE 052106
• ACH ACCT ACCT CD
• ? OTNN 901 D 053106 999999 .00
  .00 .00 .00
• ODS TRD DENT EE YTD/AGCY COMM
  TRANS DATE 052106
• ACH ACCT ACCT CD
• ? RGNN AAA H 053106 999999 .00
  .00 .00 .00
• REGENCE PPO EMP ONLY COMM
  TRANS DATE 052106
• ACH ACCT ACCT CD

48
P070 Fields

• ADJ
• Blank continuing
• Aone-time, operator calculated
• Reference Manual, Screen Descriptions, P070
• DED CODE DESC deduction code
• Reference Manual, Appendix C
• Deduction Code tables PTD1 PTD2

49
P070 Fields Cont'd

• PLAN CODE DESC
• Alphapre-tax, numericafter tax
• PTD2 deduction code
• Not all deduction codes have plan codes
• DATE BEGIN MMDDYY
• Last day of pay period when begins
• Defaults to MMDDYY used to retrieve record

50
P070 Fields Cont'd

• DATE END MMDDYY
• Last day of pay period when ends
• If ADJ on-going, defaults to 999999
• If ADJ one-time, defaults to DATE BEGIN, MMDDYY

51
P070 Fields Cont'd

• EMPLOYEE SHARE
• PCT GRS -- Percent of gross pay for deferred
  compensation
• PCT NET Percent of net pay, used for net pay
  direct deposits (100)
• FIXED AMOUNT Exact amount deducted

52
Oregon Savings Growth Plan (OSGP)

• 457 Deferred Compensation Plan
• Administered by a third-party administrator for
  PERS currently ING
• Resources
• PERS web site, includes forms (http//oregon.gov/P
  ERS/OSGP/index.shtml )
• Reference Manual, Interfaces, OSGP

53
OSGP Cont'd

• Employee signs up
• http//www.oregon.gov/PERS/OSGP/index.shtml
• OSGP interfaces deductions to OSPA for
  preliminary run 2
• Generally, a month or two delay between
  signing-up / changes and first deduction
• Generally, only make P070 entries if OSGP tells
  you to do so

54
OSGP Loan Program

• Two borrowing options
• General Purpose paid back in 5 yrs
• Residential paid back in 15 yrs
• Repaid through payroll deduction
• Deduction code LONN
• Start post-tax when OSGP notifies
• More information http//www.oregon.gov/PERS/OSGP
  /docs/LoanProgram.pdf

55
Parking / Mass Transit

• Includes
• Bus passes for Portland, Salem, Eugene, Oregon
  Coachways
• Private parking in various cities
• State-owned parking in Portland, Salem, Eugene
• Forms, Employee Forms, Parking Forms

56
Parking Deduction Codes

• Taxes
• Default is pre-tax
• If employee wants deduction for state parking
  post-tax, needs to sign waiver (Parking forms)
• Some are limited to specific agencies (Restrict
  to Agency on the PTD1)
• Timing
• Private is generally in advance
• State-owned is in arrears

57
State Owned Parking

• Employee submits form to DAS Facilities Parking
• Parking faxes form to payroll with applicable
  deduction / plan code
• Categories for DAS Parking http//oregon.gov/DAS
  /FAC/Parking/rates.shtml

58
Union Dues / Fair Share

• Determined by employees REPR / BENEFIT PKG CD on
  the P030 (Appendix H)
• Represented employee may
• Join union
• Exercise right of non-association (ORS 243.66)
• Default to fair share

59
Union Dues / Fair Share Cont'd

• Employee submits form to union, which notifies
  payroll
• If not notified of membership by first full month
  of employment, enter fair share deduction
• Some bargaining units have additional issues
  deduction

60
Union Dues Non-Association

• Employee may exercise right of non-association
  because of religious tenet or church teaching
• Upon approval of union, pays amount equivalent to
  monthly union dues to a nonreligious charity
• ORS 243.666

61
Direct Deposit

• Direct Deposit / U.S. Bank AccelaPay Visa Card
  Authorization Form (Forms, Employee Forms)
• Reference Manual, Entry Guides, Direct Deposit
• OSPS Web Site Direct Deposit, Payroll or
  mypay.oregon.gov

62
Direct Deposit Cont'd

• XDNN, plan codes 111, 120, 130, 140, 150, 222,
  333, 444, or 555
• EMPLOYEE SHARE
• PCT NET -- Percent net for electronic deposit
  (XDNN 555) -- 100
• FIXED AMOUNT Exact amount deducted
• ACH ACCT routing / transit and account
• ACCT CD C (checking), S (savings)

63
Direct Deposit Cont'd

• Enter new deduction in the current pay period
• After run 2 final of the prior pay period
• Before run 1 preliminary of the current pay
  period
• DO NOT back date
• Run 1 of first month pre-note (0.0 deposited)

64
Direct Deposit Cont'd

• When needed, request ACH stop from OSPS
  Accountant by deadline on Processing Calendar
• May also need to request manual check
• Treasury notifies OSPS of rejects
• Report may include correct routing/transit or
  account number
• OSPS will not re-issue the payment until bank
  returns funds

65
U.S. Bank AccelaPay Visa Card

• Stored value debit card
• Employee
• Applies for card on Direct Deposit Authorization
  Form
• May deposit net pay or fixed amount
• Additional card information for bank
• Exception to card limits

66
AccelaPay Card Contd

• Payroll
• Assigns routing/transit and account number
  contact OSPS Help Desk
• Enters on the P070 as a direct deposit (XDNN)
• Faxes the form to the OSPS Help Desk
• Help Desk sets-up card account between
  preliminary and final run 1
• Employee will receive card 3-5 business days
  after set-up

67
College Savings Plan

• Administered by Oregon 529 College Savings
  Network for State Treasurer http//www.oregon529ne
  twork.com/
• Employee
• Enrolls through Network
• Receives routing/transit and account number
• Payroll enters it as a fixed amount direct
  deposit using XDNN and any plan code

68
Savings Bonds

• Request for Purchase, US Savings Bonds Forms,
  Employee Forms
• Explanation Publications, Employee Fact Sheets,
  How Does the Savings Bond Program Work?
• Reference Manual, Interfaces, Savings Bonds
• Reference Manual, Screen Descriptions, P080 and
  P081

69
Savings Bond Entry P070

• DED CODE DESC SVNN
• EMPLOYEE SHARE FIXED AMOUNT total for all
  savings bond purchases
• Make entries between final run 2 and preliminary
  run 1
• For current pay period only
• Do not back date
• OSPA will make the deduction during run 1

70
Savings Bond Entry P080 Savings Bond Data

• May have multiple records
• Will pro-rate P070 deduction among
• Total of CONTRIBUTIONs P070 FIXED AMOUNT
• Federal Reserve will send paper bond to address
  on P080
• Brings in employees address from the PPDB --
  does not change if change in the PPDB
• If deduction not enough for purchase, accumulates
  in BALANCE

71
Savings Bond Process -- OSPS

• Locks P080 after preliminary run 2
• After final run 2 reconciles and sends electronic
  purchase request to Federal Reserve Bank in
  Kansas City
• Unlocks P080 after reconciliation (PMSG)
• BONDE010 Contribution Register

72
Recent Savings Bond Changes (U.S. Treasury)

• Effective 01/01/08
• Bond purchases limited to 5,000 per year per SSN
• If employee has multiple P080 records and each
  has a separate SSN as the primary owner, limit is
  5,000 for each
• When you receive a purchase request, make sure it
  will not exceed 5,000 limit

73
Savings Bond Alternatives

• TreasuryDirect bond through ACH payroll deduction
  or from your personal account
• https//www.treasurydirect.gov/indiv/products/prod
  _tdpayrollinfo.htm

74
PEBB Benefits
75
PEBB Benefits

• To qualify
• Be in a qualifying position that is at least .5
  FTE or job share
• Have a least 80 paid regular hours in the month
• Job share employees must have at least 1 hour of
  regular paid hours
• New hire does not need 80 hrs. in 1st month

76
Enrollment

• New employee enrolls or waives within 60 days of
  hire
• Enroll on-line or with paper forms
• Forms Resources, Employee Benefits, Public
  Employees Benefit Board, Forms
• Pebb?benefits Resources, Employee Benefits,
  pebb.benefits sign-on screen
• Coverage is effective the first of the following
  month

77
Required (CORE) PEBB Benefits

• Medical
• Dental
• Vision (if PPO medical plan)
• Basic life (unless YJ benefit package)
• Agency paid (SLNN), 5,000 pre-tax
• PEBB paid (SINN), 20,000 pre-tax
• Required unless waive or opt out

78
Voluntary (Optional) PEBB Benefits

• Optional life
• Long short-term disability
• Long-term care
• Accidental death dismemberment
• Flexible spending accounts

79
OSPA / pebb ? benefits Interface
PPDB interfaces new hire to pebb.benefits
Agency staff member reviews P070 for correct
deduction/plan codes
Nightly
Employee or agency staff member enters benefit
selection in pebb.benefits
Agency staff member makes entries on P050, P010,
if needed
Pebb.benefits interfaces benefit selections to
OSPA P070
OSPA interfaces actual hours worked P070
entries to pebb.benefits
Every 2 min.
After run 2
80
PEBB Benefits Contd

• The P070 entry generates the payment to the
  vendor
• If any of the required insurances is missing,
  OSPA will not generate the vendor payments
• If any of the PEBB benefits have been entered on
  the P070, the interface from PEBB?benefits will
  fail

81
Watch Reports

• XREF 51 Insurance Analysis Exceptions (run 2
  final)
• Payroll Exception (each preliminary and final run)

82
Exercise 4 (P070)
83
Exercise 5 (Summary)