Photo by Karl Steinbrenner Benefits Processing and Reconciliation Training October 2014

Photo by Karl Steinbrenner

Benefits Processing and Reconciliation Training

October 2014

October 2014 Payroll 2

Overview

Seminar Objectives:

• Systems of Authority Overview• PMIS to CIPPS Interfaces and

Reconciliation – (includes preview of upcoming New Hire interface)

• Healthcare Benefits and Reconciliation

• Deferred Comp Processing and Limits

• VRS Benefits and Reconciliation


Overview

Flight Crew Jump Rope

http://www.youtube.com/watch?v=epYsM9RzKwM




Overview

VRSDOA

DHRMICMA


System of Authority:• System used for initial entry of a

specific item• System owner has the authority to

validate the information and make changes

• System owner is accountable for maintaining and reporting the information

System of Authority


System of Authority

What is the System of Authority for Overtime Eligibility?

PMIS (or other Human Resource System for Non-PMIS agency)


System of Authority

What is the System of Authority for Health Insurance Elections?

BES (Benefits Eligibility System)


System of Authority

What is the System of Authority for the employee’s service record used for leave purposes?

PMIS (Next Anniversary Leave Date)


System of Authority

What is the System of Authority for the employee’s service record for retirement?

VNAV (myVRS Navigator)


System of Authority

For salaried employees, what is the System of Authority for Annual Salary amount?

PMIS (or other Human Resource System non-pmis agency)


System of Authority

What is the System of Authority for retirement plan eligibility?



System of Authority

What is the System of Authority for Employee Identification Number?

PMIS


System of Authority

What is the System of Authority for VSDP Eligibility?

VNAV – My VRS Navigator


System of Authority

What is the System of Authority for tax withholding information?

CIPPS


System of Authority

What is the System of Authority for retirement plan eligibility?



System of Authority

What is the System of Authority for purchase of prior service

information?



PMIS to CIPPS Interface

Timing:• Day one the information is keyed in

PMIS.• That data is captured overnight and

passed to CIPPS the night of Day 2. • Day 3 successful updates will have

been made to CIPPS.



Field Name Field Screen Field ScreenName Name PSE305 Name H0BIDAddress Addr2 PSE311 P O Box/Apt/Suite H0BID Addr1 PSE311 Street Address H0BID City PSE311 City H0BID State PSE311 State H0BID Zip PSE311 Zip H0BIDAgency Begin Date Agy-Bg PSE305 Ag Emp Start H0BUOAlien Code Nation PSE305 Alien Cd H0BUOAnnual Salary State Sal + Non-St Sal+ Spec Rate PSE305 Annual Salary H0BIDBusiness Phone Telephone PSE305 Business Phone H0BIDBirth Date Birth PSE305 Birth Date H0BID

Contract LengthEmployment Months (rounded to

nearest whole number) PSE305 Contract Length H0BUOFIPS code Location code PSE305 FIPS Code H0BUOGender Sx/Rc PSE305 Sex H0BIDHome Phone Phone PSE311 Home Phone H0BIDLast Salary Change Date Sal-Chg PSE305 Date Last Pay Chg H0BIDNumber of Pays Pay Sch PSE305 Number of Pays H0BUOOT Eligibility Code Overtime (codes C, N, Y) PSP999 Overtime Status & Factors H0BBNPay Band Band PSE305 Pay Band H0BIDPay Period Salary (State Sal + Non-St Sal+ PSE305 Salary or Rate H0BID

Spec Rate ) ∙∕∙ Pay Sch PSE305Percent Employed Percent PSE305 Percent Employment * HPIUSRole Code Role/PA/S PSE305 Role Code H0BUO

Standard Hours 1((173.33XCT Length)/Pay Sch) X

(Percent/100) PSE305 Standard Hours 1 H0BIDState Begin Date St-Bg PSE305 Employment Date H0BIDWorkers' Compensation Code Wrkr Cmp PSP999 Worker's Comp Code H0BUO

Other Updates Resulting from PMIS Transactions CIPPS Field Screen

Employee Termination Timecard Status H0BIDEmployee Transfer Out Timecard Status H0BIDVDSP Absence Timecard Status H0BIDLWOP Status Timecard Status H0BIDSalary Change/Employee Months Change/Number of Pays Change Imp Life Rate/Amt H10ASSalary Change/Employee Months Change/Number of Pays Change

SP 99 Contbase Amt H10ASTemporary Pay Activation Temp Pay Rate/Amt H10ASTemporary Pay Deactivation Freq H10ASMilitary Pay Activation Mil Supp Rate/Amt H10ASMilitary Pay Deactivation Freq H10AS

Review Reports U080, U082, U084, U180 and U181 for items that need manual action or correction. * Percent Employment - due to timing issues - notify leave coordinator and manually update HPIUS and accrual rates.

Amt from PMIS00

Non-AutoNon-Auto

(State Sal + Non-St Sal+ Spec Rate ) ÷ (Employee Months times "2" if the

Number of Pays are Greater Than 12 or "1" if Number of Pays are Less Than 12)

PMIS Temp Pay / Pay Sch

Non-AutoNon-Auto

Annual Salary rounded to 1,000 X 2 ÷ 100 Factor Applied for Number of Pays - See

CAPP Topic 50310 for Calc Method

PMIS

Value

PMIS to CIPPS Automated Update Process Crosswalk of CIPPS and PMIS Fields as of 8/13/2012

CIPPS

00


PMIS to CIPPS Interfaces



The U082 Report, PMIS/CIPPS UPDATE LISTING, reflects the old and new PMIS values of the fields that are being updated. An indicator of ‘Y’ in the ‘out of suspense’ column indicates transactions released from the suspense file. This report sorts and page breaks by PMIS transaction effective date. For transactions with an effective date prior to the current pay period, the heading indicates that they are retroactive transactions and manual action or pay adjustments may be needed.



The U080 Report, PMIS/CIPPS TRANSACTION ERROR LISTING, identifies transactions not processed that need to be entered manually into CIPPS. This occurs for records for an employee who has already been terminated, a non-salaried employee, or for a company/employee number combination that is not found in CIPPS.



The U084 Report, PMIS RECORDS WRITTEN TO CIPPS SUSPENSE, lists future dated PMIS transactions that have gone into the CIPPS suspense file. It will list only the employee name and number. The detail will be reported when they are released from the suspense file, according to the PMIS effective date, on the U082, with an indicator of ‘Y’ in the ‘out of suspense’ column.



Report U181 “Special Pay 99 Contributions Base Transactions Pending” records the transactions that will update SP 099 at a later date.



Report U180 “Special Pay 99 Contributions Base Transactions Released” has been created to identify transactions as they are released from suspense to update SP 099 in CIPPS. It should be noted that the initial PMIS event that generated the transaction to update SP 099 may have been edited or superseded by another transaction in PMIS. If so, it is possible that the transaction released is no longer correct or necessary. Review and make manual adjustments as necessary in CIPPS.



Reports U053/U077:

PMIS/CIPPS Data Discrepancies

• Can be requested by individual agency at any time. Send email request to [email protected].

• Reports are run weekly on Friday night for any agency that requested it during the week.

mailto:[email protected]



Challenges:• Timing – coordination between HR/Payroll

essential. • We interface Overtime Eligibility – not

FLSA• HR needs to be careful when keying the

effective date for a separation. This should be the day after the employee’s last day.

• HR also needs to be careful when keying Employee Months and Pay Schedule

• Address1 in PMIS has 35 Char. CIPPS has 30.


PMIS to CIPPS InterfaceDHRM Definition for Overtime Eligibility Field:• Code indicating overtime payment or compensatory leave

approval for compensation at straight time, or no overtime at all, or payment at time and one-half for all hours over forty worked in a seven day period. By default, the employee's assigned role determines the approval status for all employees of a given role, but the code can be overridden for a given position and incumbent(s) by agency request. The Role Overtime Eligibility Code below is the default role-based code determining the approval status for all employees of a given role. If it differs from this code, then the code here is a position-based override initiated by agency request, otherwise, the code here will equal the Role Overtime Eligibility Code. “C” - Straight Time Overtime Is Pre-Approved“N” - Overtime Is Not Pre-Approved“Y” - Time and 1/2 Overtime Is Pre-Approved


New Hire Interface

Effective October 14, 2014 we will begin a New Hire Interface for salaried employees.

• New Hire records will be placed into frequency 89.

• New Hire records will be Non-Auto• New Hire records will be Pay Type “3”• Agencies will have to “activate” the

record by changing those three things and adding tax information, direct deposit, etc.



Report U179

• Shows the key information for the new hire record that was established.

• Messages on the right denote whether the record was rehired, or if the effective date is retroactive or mid-pay period.

• There is a Report U178 – but agencies won’t have them often



Challenges:• Care should be taken with Pay Schedule

and Social Security Number• Name in PMIS should match Social

Security card to avoid W-2 penalties• If HR enters a new hire and makes a

change in the same day – the change will kick on U080 error listing

• If BES election is also keyed the same day the election will kick on the U130 error listing



Reconciling:

If PMIS Salaried Base Pay is reconciled to Salaried Regular pay at the time of certification – you will know that the CIPPS/PMIS interfaces updated correctly.



Questions?


BES to CIPPS Interface

• Premium Conversion – Deduction #24• Healthcare Reward – Deduction #25• Agency Health Insurance – Deduction #26• Dependent Care – Deduction #21• Medical Spending Account – Deduction

#22• Flex Fee – Deduction #23





U131 BES/CIPPS Update Listing

• Successful updates to CIPPS. Be sure to look at the BES transaction effective date. Some items may require retroactively collecting premiums. (Be careful if from previous FY)

• Prior adjustments should be collected immediately.

• How to handle retroactive adjustments for Healthcare Reward



U130 BES/CIPPS Error Listing

• Care must be taken when entering these missed updates manually.

• Codes are entered on HMCU1, then Healthcare Reward must be entered on H0ZDC. The amount of Deduction #24 needs to be manually reduced for the reward.

• Note: utility field is no longer required to make this a pre-tax deduction – all zeros

• Enter 06/30/20XX in the “End Date” for deductions #21, #22, and #23



Terminations:• These are monthly deductions. If

someone terminates in the first half of the month, you will need to remember to double collect the premiums

• Coordination of information is critical from HR. Particularly for employees transferring to another agency after the first pay period. Payroll needs the information ASAP, so they can double collect premiums



Reconciliation:



Reconciliation:Amounts will be compared to the BES employee record and

variances reported on a DHRM report - PREMIUM REWARD DISCREPANCIES. The primary purpose of this report is to ensure the amount covered by the HIF matches that which has been approved. This report will be placed in each agency’s folder in DHRM’s repository within the first couple of work days of each month.

As part of the monthly Health Care Reconciliation procedure this report must be printed, reviewed, signed by the Fiscal Officer, and submitted along with the monthly Health Care Reconciliation certification. Absence of this report or the Fiscal Officer’s signature will constitute an incomplete submission.



Report U075 – Flexible Reimbursement Accounts Error Report

• Available the day before payday• Errors need to be reviewed and corrected

manually in CIPPS



According to IRS guidelines (Revenue Ruling 2003-43, 2006-69), all Card transactions must be validated. The TPA is permitted, under the IRS guidelines, to automatically validate (auto-adjudicate) certain transactions. In the event that the TPA cannot auto-adjudicate card transactions, the TPA requests supporting documentation from the employee. If documentation is not received, then the outstanding transaction amounts must be reported to the Internal Revenue Service (IRS) as income on the employee’s W-2 form, and are subject to all applicable employment taxes (including federal and state income tax withholding and FICA).



Questions?


Deferred Comp Interface



How often?

• Interface updates once a month – usually two days after the first working day of the month

• Date is on our calendar



• Hybrid employees are not automatically enrolled

• Limited to an annual amount – 457 Plan• $17,500 for under 50 - $23,000 for 50 and

older• If Birthdate is corrected – check these

goals• 457 limit is applied to Deduction #38 and

Deduction #16 (Hybrid Voluntary Contributions) combined

• 457 goal amount maintained on H0BES screen

• All employee automatically have $17,500 goal – additional goal amounts keyed on H0ZDC



U062 – Deferred Comp/Cash Match Update Listing

• ICMA is responsible for reporting the amount to be collected

• If you see something “fishy” you can send email to [email protected]

• If employee expected something different, you can send email to [email protected]

• No cash match for Hybrid Employees not contributing full 4% Voluntary Contribution





U063 – Deferred Comp/Cash Match Error Listing

• Must be dealt with manually• Key amount shown on the report• Determine employee’s age at the end of

the current year and apply the appropriate goal

• Key the appropriate cash match for the employee using deduction #45. Hybrid not eligible unless contributing 4%. Wage employee not eligible



Cash Match• Updated this year. Cash match will not be

taken if Deduction #38 is not coming out.• No longer a need to cut off the cash

match for employees on LWOP. Leave the deduction on.

• The deduction is to be half of Deduction #38 to a maximum of $20 per pay period

• This deduction will automatically correct itself if the value keyed on H0ZDC does not reflect reduction for amounts less than $20



Leave Payout Deferrals:• Employees must be enrolled in Deferred

Comp at least one month prior to the deferral

• This does not make entire amount tax free• Use the Deferred Comp Maximum payout

spreadsheet to determine• If entire amount of deduction #38 cannot

be withheld after taxes, it will not process



Employees transferring to another agency• Transfer Form no longer exists• Employee will receive a letter from VRS

when the termination is received in VNAV saying that they must contact ICMA to start their deduction again at the new agency

• Employees who wish to make up deductions at a later date can do so with the “one time deferral” process, however, they cannot receive cash match for missed periods.



Wage Employees:• Must enroll via paper form with ICMA• Not eligible for cash match



Reconciliation:• Agencies can compare previous pay period to

current pay period deduction totals and validate that the updates were received by interface (U062), Error Report entry (U063 and U149), written authorization from VRS/ICMA. No other source is valid.

• VRS does reconcile amounts taken by agency and will contact us if the amount does not appear to be authorized

• Agencies can be responsible for 50% of the employee’s deduction and gains on those funds

• Report 906 is helpful during the edit process



Questions?


Misc Ins, Annuities Interface

Questions?



How Often?• Occurs twice a month• Check our calendar for the dates (labeled

TPA interface)



U147 – Misc Ins/Annuity/Fee Update Listing• FBMC is responsible for reporting the

amount to be collected• If you see something “fishy” you can send

email to [email protected]• If employee expected something different,

you can send email to [email protected]

• No cash match for Hybrid Employees not contributing full 4% Voluntary Contribution





U148 – Misc Ins/Annuity/Fee Error Listing

• Must be dealt with manually• Key amount shown on the report• 403(b) Funds – not limited to 457 maximums• Key the appropriate cash match for the employee

as deduction #46. Hybrid not eligible unless contributing 4%. Wage employee not eligible

• Employees with Deferred Comp and Annuity only one cash match is allowed


U149 Cash Match Discrepancy

U149 – Cash Match (Ded 45 and 46) Discrepancy

• Available two days after certification deadline

• Review and make corrections manually


Other Reconciliations

• PAT 1500 Hour Tracking – Affordable Care Act

• PAT EPR Reporting• New Hire Reporting – U094 – Out of State

Employees• Leave Anniversary Dates – PMIS vs.

CIPPS


Other Reconciliations

Questions?

Documents

Photo by Karl Steinbrenner Benefits Processing and Reconciliation Training October 2014