Check Reversals,

Check Cancels & ACH Stops

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Check Reversals

• Agencies can do check reversals until November closes

– For those agencies that have check reversal authority

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Check Reversalsafter Nov Closed

• After November Run 2 (12/09/09) agencies cannot do check reversals

• Fill out Check Reversal form and send form and check to OSPS

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Check reversalsPrior to Nov Pay Period• After Nov Run 2, prior November pay

periods cannot be reversed– What if you need to cancel a prior pay

period check?• You can have this check canceled using an

Employee/Vendor Check Cancel form– Remember, this does not reverse what is on the

system, this only cancels the value of the check» Manual processing will be involved.» Steps for this process under cancel

employee check later in presentation

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Nov Pay Period Check Reversals

• If you are not rewriting check to employee no further action required

• If you will be rewriting check to employee, is employee a Dec Term?– If no, set November P190 Corrective

and verify Nov P010 dates set– If yes, move November P370

information into December using P050 screen (cannot set Nov corrective)

• Make sure you have Dec P010 dates set

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Dec Pay Period Check Reversals (after run 1)

• If you are not rewriting check to employee no further action

• If you will be rewriting check to employee will the issue date be before 12/31?– If no, then no further action required– If yes, set December P010 dates

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Check Reversalsafter Dec Closed

• If P190 for Dec has current tax year– Reverse check and set corrective

• Verify no Dec P010 dates set

• If P190 for Dec has prior tax year– Prior tax year checks cannot be reversed– If check needs canceled, fill out Cancel

Employee/Vendor check form• Refer to Cancel Employee/Vendor check

process– Remember this will be a manual process– This will not fix the system

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Cancel Employee Check

• Canceling checks are different from reversing checks– Reversing checks actually reverses

employees payroll in the system– Canceling checks only cancels the value

of the check with no impact/change to the system

• Manual processing will be needed

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Cancel Prior Nov Pay Period Employee Check

• If you need to cancel an employee check send Cancel Employee/Vendor Check form to OSPS with check– On the Cancel Check form indicate who

to make check payable to (can be split)• Why are you canceling check? Does

employee owe agency money? Is there already a net pay negative you are clearing by canceling check?

– If you need to make any system adjustments you will need to use the P050 in either Nov or Dec depending on if employee is terminated

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Cancel Employee CheckAfter Year Closed• What if you need to cancel an

employee check after 2009 is closed?– This is complicated and will involve

manual processing – Remember this will no longer be a system fix

• The actual amount of the check can only be canceled– Fill out Cancel Employee/Vendor check form and send

to OSPS with check.

» State how check is to be rewritten

– If you are increasing or decreasing an employees wage for 2009, you will need to do a corrected W-2

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Cancel Vendor Check

• Cancelling vendor checks will remain the same at year end

• Vendor checks do not involve the employee wage– Fill out Cancel Employee/Vendor

Check form and send form and check to OSPS

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ACH Stops after Nov closed

• After November Run 2 (12/9/09)– ACH can be stopped until ACH Stop

date (12/11/09) before 10:15 deadline• System procedure is the same as check

reversal

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ACH Stopsafter Dec Run 1

• After December Run 1 (12/28/09) – Stops can be done until ACH stop

date12/30/09 (10:15 deadline)– Is this 2009 or 2010 wages?

• Look at P190 to see if set is 09 or 10– If 2009 P010 dates cannot be removed

– If issuing a manual check make sure you have the correct issue date (year)

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ACH Stop after Dec Closed

• ACH stops can be done for new tax year only (10 December P190)– We cannot do anything to the system

after this date for 2009– Wages will be reported in correct

year as employee received funds in 2010

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Social Security Maximum

• When doing a reversal at year end watch for Social Security tax (SSEC)– The maximum dollar amount against

which Social Security is taxed for 2009 is $106,800

• Maximum amount withheld is $6621.60

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Social Security Maximum

• What if my employee has reached the maximum amount?

• If you will be issuing a manual check follow these steps – From the check or ACH to be reversed find the

SSEC amount originally processed– View the P370 screen and compare SSEC

amount to what the original amount was• If amounts are the same, no further action required• If amounts are different, subtract the difference from

the net check you will be requesting

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Social Security Maximum

• If you are not issuing a manual check there is no further action– System will process correctly

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What Questions Do You Have?