presented by: katherine bremser date: october 19, 2009 year-end overview osps 2009 year-end...

Presented by: Katherine BremserDate: October 19, 2009

Year-end OverviewOSPS 2009 Year-end Mini-conference

2

Year-end Process

• Closeout current benefit and tax year

• Prepare for new benefit and tax year

3

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

4

Several Processes

• 2009 Charitable Fund Drive

• 2010 PEBB Open Enrollment

• 2010 Governor’s Food Drive

• 2009 Taxes

5

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• Before 10/26/09, OSPS will outdate 2008 on-going deductions, effective 11/30/09– E460-04-01 List of In/outdated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

6

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

7

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

8

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Outdated– E820-2 Gross Pay Adjustments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

9

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In/Outdated Deductions report

10

Taxes

• W-2’s for employees who received pay in 2009

• 1099-MISC for beneficiaries of deceased employees

11

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

12

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

13

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

14

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

15

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

16

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

17

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

18

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

19

Transfers

• Do not set P010 dates for December transfers

20

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

21

W-2’s Cont’d

• If XREF68N Employees with Negative Amounts Listed has YTD negative, employee will not receive W-2

22

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

23

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

24

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

25

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

26

Forms for New Tax Year

• New W-5 due by 1/4/10

• New W-4 for tax exemption due 2/15/10

27

What Questions do you have?