Payroll User GroupJune 2, 2010

Welcome

Kevin McHugh

Payroll Bureau Director

Comptroller of the Commonwealth

Martin Benison

MSECU - Raffle

Ed Connors

Internal Controls & Fraud Prevention

Peter Scavotto

Quality Assurance Bureau

– Over 550 people already trained– Fraud will be a regular monthly offering: June 15th and 22nd July 27th August 31st September 28th

– Risk Management / Internal Controls Training offered Quarterly: September 21st

Contact our office for group training requests– Comptroller.Info@State.MA.US

Fraud Awareness and PreventionFraud Awareness and Prevention

SMART Plan Agenda

Presented by Matt O’Brien, Sr. Account Executive

SMART Plan and HR/CMS – Upgrade – 50+ Contributions – Hardship end dates – Special Catch-up

OBRA Termination Procedures

SMART Plan Deductions

Amount entered in the Savings Plan page of HR/CMS

OBRA-B and OBRA-L amounts entered in the Pensions Plan page of HR/CMS

Age 50+Maximum contribution=$22,000(2010) If “Y” is displayed, verify the Age 50-Extend

Limit exists on the Savings Management Page: Limit Exceptions

Hardship End Date

Six-month deferral suspension period after an unforeseeable emergency withdrawal

Great-West file will report a Hardship End Date; entered in the End Date field of HR/CMS

Do not change deferral amount unless instructed to do so

Special Catch-Up

When a participant elects the Special Catch-Up provision, a “Catch-Up” indicator is displayed

Enter amount and number of eligible years in the Savings Management Panel

Special Catch-Up

Deferral End Date – Insert Calendar Year row for each year that applies – For example, end date of 12/31/2012 requires a Row

for Calendar Year 2010, 2011 and 2012

Amount – Combined allowable deferral amount is listed on the

file – You will need to calculate the Adjustment Amount

and enter the amount in the Savings Management Panel

Special Catch-Up

9

8

OBRA Reminder

Termination Procedure

– Re-hired employees must

complete new enrollment form

– No termination if anticipate a contract renewal

Questions?

Thank you

HR/CMS V9 Update

Kevin McHugh

Savings Bond Refund Processing

V9 Automated Process– Trigger is the USBOND code in General

Deduction– Automatically loads SAV code in Additional Pay– Will charge TRE account in MMARS– See new Resource Document on Knowledge

Center

Deduction End (Trigger)

Additional Pay

Qualified Transportation

Phase 1 Update – Some early transition issues were addressed, second Month reportedly much smoother

Phase 2 Rollout – Parking Benefit deduction starts June 9 for July Parking Benefit

QT – Parking

Existing Transit participants need to elect a monthly amount (submit form to Benefit Strategies)– Use Code QTPARK– No Change to Fee (QTPER1)

New Participants need to elect a monthly Amount– Use Code QTPARK– Use Code QTPER2 for Fee

Parking New Users

Debit Card may not be delivered by July 1, so may need to use online reimbursement requests (the method used for cash reimbursements)

Must file the Certification form for Participation

HR/CMS V9 Upgrade

Questions?

HIRD/Connector Updates

Kevin McHugh, CTR

Connector

Plan Year – July to June (same as Fiscal Year)

Open Enrollment – May 1 to June 30

New Rates – Not Yet Final– will change and may require make-up deductions

Make Up - Deduction Code “CCAMU” can be used to makeup shortfalls from earlier pay periods

HIRD

HIRD Forms are valid from July 1 to June 30 New Forms should be collected by June 30 HIBO and HMBEN021 are retired in V9 Keep records on File at your location– Files are subject to audit

and penalties for non-compliance

Payroll Reminders

Kevin McHugh, CTR

Reminder: Retirement 2000

Per DOR, the first $2000 in combined Retirement Deductions and Medicare Tax is excluded from MA Tax Gross Wages.

From Jan up until this $2000 threshold is met employees will pay less MA tax.

Employees will see a gradual increase as they meet the $2000 threshold.

Reminder: Payroll Receipt Vouchers

Must continue to send Paper Voucher to the State Retirement Board.

All Vouchers for any Pay Periods prior to May 22 are due at RET before Friday June 4.

Vouchers for Pay Periods June 6 and after should be submitted ASAP.

Cash Cutoff is July 1 for PRRVs.

Payroll Close / Open

Kevin McHugh, CTR

Payroll Close / Open Timeline

Departments should be familiar with the Close/Open Instructions.

Use the Payroll Checklist that is located at the end of Section 9.

By Today You should Have:

Identified any FY11 COA changes, e.g., program codes or appropriation changes

Planned for any Position transfers, LCM distributions for FY2011

Started entering PH documents for AP

HR/CMS Account Code Roll

New for V9HMMMARS3 Report identifies:

– all positions assigned to invalid accounts – if incumbent exist then EMPLID and Recd# is shown

Agencies must take corrective action before 7/1Run on 5/28 (now available)Run again 6/11 and 6/25See new Resource Document on Knowledge Center –

it has recommended steps and info on Mass Position Transfer (KC> Payroll > Financial Data Management)

Reminder: PRLDE & PRLIF Clean- Up

State Finance Law Requires that Accounts be Funded before Expenditures are Made.

All State Appropriated Accounts must be balanced before end of AP Period.

LCM Rules Roll:

Review the POAA Rules Roll (currently in draft since 6/1), and start requesting any new FY11 Rules– Departments must include full justification for rule

as a Comment– Review all other LCM Rules tables (DEACC,

PALT, PCREQ)

In June:

Finalize your PH activity for AP For PPE June 19 – last full payroll of 2010:

– June 18- Last day for HR or Garnishment transactions in HR/CMS

– June 21 Last Day for posting Time – June 22- Last day for making Labor distribution

changes in LCM

Key Dates- Split Year

June 30- Last day for entering PHLast Day for PRRV (Cash Cut off of 7/1) for FY10

July 2 – Last Day for HR transactions July 5 – Last Day for Time and Attendance

Entry in HR/CMS July 6 – Last Day for LCM changes

Split Year Proration

In General: Payroll will be prorated by business days of the pay period (Mon- Fri).

8 Business Days in FY10 and 2 Days in FY11. (Timesheet) Prior Pay Period postings will post to FY10. Additional Pay postings will split 80/20, even if based on PPA

earnings.The following will post to 6/30 and charge FY 2010: SBB, SBA, VIL, VLA All Reimbursements (B codes) All “Retro” and Settlement earning codes FCT – Furlough negative earnings Be aware of the Posting Dates (ex. SBB posts to 6/30) and establish

EPPA/DEPTE for the pay period if needed.

Split Year Proration

Job and LCM Actions will create a time slice that may affect the prorating.

If possible, delay Job and LCM actions until next pay period. Hire Effective Dates can change the # of business days used in

Timesheet and Additional Pay prorating. (see memo)

Split Year Funding

During Split Year, funding for 2010 charges are not from Payroll Holds.

PHs are only used for the Accounts Payable periods.

Accounts Payable

(new) Prior Period Adjustments for the 7/3 Split Year Payroll will likely post to FY11.

– Prior period Adjustment activity is now summarized by the full pay begin and pay end date

– If looking to post PPA to FY10, must use date 6/19 or earlier Accounts Payable earning codes will be available July 8 (after

Split Year payroll). Be aware of the Posting Dates (AP codes = 6/30) and establish

EPPA/DEPTE for the corresponding time slice. CTR Payroll can assist departments in advising how to create

PH documents. More details in CTR Memo

Payroll Holds

Payroll Holds must– Specify 2010 as the BFY and FY in the Header

and on each Accounting line After July 1st, if you leave the fields blank, value will

default to 2011 on submission – CTR will reject PH

– Specify a program for federal grants (4CN)– Specify a unit if departmental budgets are used– Be unique for the combination of Department /

Appropriation / Object Code

Payroll Holds

Payroll Holds are required for all charges – even negative and net $0 – during Accounts Payable.

Until June 30th, Executive departments need ANF approval for $25K+ increases.

After June 30th, all departments must include justification as a comment.

Make sure you have enough $$$ to cover FY2010 charges through Split Year payroll before you encumber the $$$ in a PH.

Payroll Holds

Organize your PH documents so you can find them Don’t create a mega PH with lots of lines See what PH lines will be referenced by LCM in the

PEREF table in LCM

Payroll Holds and Funds Availability

Type of Charge

PH Exists – Enough $$ PH Exists – Not Enough $$

PH Does Not Exist

Positive PREXP references the PH and reduces the PH $$$ by amount of charge

PRLIF references the PH – FA reports show Budget Tracking as Encum

PRLIF does not reference a PH (but must do so to be submitted) – FA reports show Budget Tracking as N/A

$0 PREXP references the PH N/A PRLIF is generated but can be submitted – FA reports show Budget Tracking as N/A

Negative PREXP does not reference a PH

N/A PRLIF is generated but can be submitted - FA reports show Budget Tracking as N/A

Ensure that PHs are in place for all AP charges– or checks will be held! PH can be for $0 if charges are net $0 or negative charges.

Deficiency Payroll

Request to CTR APB for approval (John Newell 617-973-2658)

Transfer $$ to CTR account Department processes HR/CMS Payroll using the

Deficiency Earnings Codes (D01 – D06) The cost distribution to CTR account will be handled

by CTR Payroll (if there are any issues contact Judy Cole Judy.Cole@state.ma.us )

Deficiency Payroll Codes

D01 Deficiency Regular

D02 Deficiency Travel Reimb (B02)

D03 Deficiency Other Pay(Rtrmnt)

D04 Deficiency Vacation in Lieu

D05 Deficiency Sick Buy Back

D06 Deficiency Overtime

PayInfo

Kevin McHugh, CTR

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Questions?