Presented by: Katherine BremserDate: October 19, 2009
Year-end OverviewOSPS 2009 Year-end Mini-conference
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Year-end Process
• Closeout current benefit and tax year
• Prepare for new benefit and tax year
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Goals for Year-end
• Ensure that the employee receives:– Correct pay and benefits– Correct W-2
• Ensure that OSPS– Reports and pays the correct amount
to vendors and taxing / assessing entities
• Ensure that the state– Has few corrected W-2’s
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Several Processes
• 2009 Charitable Fund Drive
• 2010 PEBB Open Enrollment
• 2010 Governor’s Food Drive
• 2009 Taxes
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Charitable Fund Drive
• Before 10/26/09, OSPS will outdate 2008 on-going deductions, effective 11/30/09– E460-04-01 List of In/outdated
Deductions
• Set-up OSPA for 2009 fund drive– Outdate all codes but Q5NN– On 11/17/09 load file for new
deductions, effective 12/31/09
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PEBB Open Enrollment
• Outdates for 2009:– 10/01/09
• Dependent certification• Domestic Partners as Tax Dependents
– 12/31/09• All medical plans• FSA’s• Employee changes
– 01/01/10• Optional life age band changes
• 11/14/09 – OE file to OSPA
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DP’s as Tax Dependents
• PDB deleted Domestic Partner Certification for Dependent Tax Status prior to open enrollment
• Employee must give P/R a new certificate for 2010– Enter in PDB– PDB will interface alpha plan code
• PDB requestable report for IRS dependents
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DP Not Tax Dependent
• Prior to 10/26/09, OSPS will outdate the DPT/DPN entries on the P050– E820-1 Gross Pay Adjustments
Outdated– E820-2 Gross Pay Adjustments
Beginning after Outdate– E820-3 Duplicate Gross Pay
Adjustments
• PDB requestable report for DP’s and children with imputed value
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2010 Governor’s Food Drive
• Before 1/23/10, OSPS will outdate on-going 2009 Food Drive deductions effective 2/28/10– E560-04-01 List of
In/Outdated Deductions report
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Taxes
• W-2’s for employees who received pay in 2009
• 1099-MISC for beneficiaries of deceased employees
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Timing for Tax Years
• The employee’s taxable income includes anything received by December 31, 2009 (constructive receipt)
• November paid December 1 = last regular payroll run for 2009
• Use P010 FINAL CHECK dates to put payments made in December in 2009 tax year
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Timing for Tax Years
• 2009 Income includes– Final pay and leave pay-offs for
employees separating on or before 12/31/09
– Overpayments not repaid by 12/31/09– Fringe benefits received during the
year– December paychecks cashed prior to
1/1/10
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General Deadlines
• 12/9/09, November Run 2:– Last date for months prior to November
to:• Set P010 dates• Set correctives• Request check reversals
– Last date to make 2009 cash payments to employees without setting P010 final check dates
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General Deadlines Cont’d
• 12/31/09, last date for 2009 to:– Pay-off leave balances for employees
who separated in 2009– Accept repayments for 2009
overpayments– Request manual checks for employees
with net pay positive adjustments– ACH stops and reversals to process
normally
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General Deadlines Cont’d
• 01/11/10, December run 2, last date for 2009 to:– Request check reversals or
cancellations– Enter non-cash expense
reimbursements or fringe benefits– Correct negative YTD amounts
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General Deadlines Cont’d
• 01/11/10 Cont’d – Last date to:– Request P060 adjustments for
separated employees with net pay positive adjustments
– Record 2009 return of overpayment– Correct payments from the B850-01
Nov or Dec Pay Reported in Two Tax Years
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December Separations
• If paid by December 31, put in 2009 tax year with P010 Check Dates
• Watch for maximum amounts:– Social security - $106,800– OSGP - $16,500– FSA’s - $5,000– SVNN - $5,000 per primary owner
• Between 12/28 and 12/31/09 can reverse check or ACH and reissue
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Separations Before December
• Adjust / pay-off any remaining leave balances by 12/31/09– E492 Terminated Employees Having
Leave Balances
• Adjust / pay-off net pay positives– E357-030 Separated Employees with
Net Pay Positive Adj
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Transfers
• Do not set P010 dates for December transfers
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W-2’s
• Will use address from the PPDB– Remind employees to update HR
records
• Produced by 1/21/10– E381-20-2 W-2 Distribution List– If transfer does not receive W-2, check
with other agency
• Distributed by 1/31/10
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W-2’s Cont’d
• If XREF68N Employees with Negative Amounts Listed has YTD negative, employee will not receive W-2
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Deceased Employees
• 11/23/09 ANNLDEC Deceased Employees – Agency Summary Report– Make sure all 2009 deceased
employees are on the report– Make sure there are no employees
who should not be on the report
• IRS Form W-9 for estate and/or beneficiaries due by 1/4/10
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1099-MISC
• 01/31/10 = deadline to distribute 1099-MISC to payees of deceased employees’ final wages
• 1099-MISC if:– Payee receives ≥$600.00– Domestic partner insurance and
• ≥ 80 paid regular hours in final month• DPT ≥$600.00
– Back-up withholding (28%) for any payee, regardless of amount
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SSN / EIN Verification
• When we file the 1099-MISC report, SSA compares SSN or EIN reported to the name in their file
• If they do not match, they return the form to us– $50.00 penalty to specific agency for
each one that does not match– Payee cannot get back-up withholding
refunded without a match
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Foreign Nationals
• 01/04/10 = deadline for submitting:– OSPS Form 99.01– IRS Form 8233 or W-9 if exempt from
withholding
• Non-resident aliens have different withholding requirements
• The 99.01 will help ensure correct withholding and happy employees
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Forms for New Tax Year
• New W-5 due by 1/4/10
• New W-4 for tax exemption due 2/15/10
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What Questions do you have?