BEACON Update
HR/Payroll Conference Call November 20th, 2012
Agenda • HR Processing Items • Military Leave and the LI • Social Security Number Errors • Savings Plans One Time Deferral • BEST Administrative Processing Issue • Benefits Updates • Payroll and Time Updates • Daylight Savings to Standard Time Review • End of Year Reminders • Garnishments - IRS Form 2159 2
Military LOA and the LI • Employees who are on a Military LOA should – Receive their longevity pay based on the new LI salary. – If receiving Deferential Pay then this should be calculated on the new LI salary. – If the employee doesn’t return, any payouts should be on the LI salary.
• Agencies can enter the LI Action as of 7/1/2012 for these employees
3
Social Security Number Errors • Still having agency hire employees with the wrong SSN. • Can eliminate most of these errors by using E-verify first. • State Personnel Manual Section 2, page 2. “In additional to the I-9 process, electronic verification using the internet based E-Verify Program is required for every newly hired employee who began work in an agency/university on or after January 1, 2007.”
• Please ensure you are also using the Cross Agency Verification Report before entering your actions.
4
One-Time Savings Plans Deferral • Limits are increasing to $17,500 in 2013 for 401(k), 403(b) and 457 savings plans 2013
5
2012
2011
2010
Annual employee $17,500 contribution limit for 401(k), 403(b) and 457 savings plans
$17,000
$16,500
$16,500
Annual catch-up contribution limit for 401(k), 403(b) or 457 savings plans if employee is age 50 or over
$5,500
$5,500
$5,500
$5,500
One-Time Savings Plans Deferral • 403(b) and 401(k) plans still coordinate – Meaning – The maximum combine contribution to both of these plans is $17,500 or $23,000 if over 50 years old.
• 457 savings plan stands on its own and does not coordinate with a 401(k) plan. – Meaning – Employees over 50 can contribute $23,000 in a 401(k)/403(b) plan and a separate $23,000 into a 457 plan.
6
One-Time Savings Plans Deferral • Other information – The 401(k) plan limits contribution to 80% of earnings per pay period – The 457 plan allows 100% of earnings. – Social Security tax, Medicare tax, and retirement contributions are still deducted from vacation payouts. – Some Federal and State taxes are deducted for the cash needed to pay these deductions.
7
One-Time Savings Plans Deferral • We prefer one-time deferral forms with dollar amounts and not percentages…why? – When the payouts are in the last months check then the system will take 100% of total earnings and not just the payout amount. – The system does not process payouts in separate payrolls. – You do not need to be exact with your dollar amount. – Be careful about longevity pay on separated employee • If the separation action is entered before payroll deadline, then the longevity pay will be in current month and payouts in the following month.
• Retirements for January 1st, 2013 – If the employee is near their 2012 limits, try to do the payouts in January 2013.
8
BEST Administrative Processing Issues • No need to request a ticket number and then fax us the employee’s forms. – Just fax us the forms and explain on the cover sheet; or, – Email us the forms as an attachment and explain in your email – Submit one fax or one email attachment per employee. Do not fax multiple forms at once or attach multiple forms to one email
9
BEST Administrative Processing Issues • Do Not submit a ticket for us to look at OM Workflow items – BEST HR reviews their workflow in-box everyday. – This is a waste of your time and BEST
• New OM updated worksheets available on our websites.
10
Benefits Updates • NCFlex Annual Enrollment review period has ended. – Contact OSP for any exceptions.
• SHP HBR Alert – http://www.shpnc.org/newsRoom/newsletters/hbr-update-alert.aspx – Enrollment Exceptions The State Health Plan is bound by the North Carolina General Statutes. This year, House Bill 1085 amended N.C.G.S. 135-48.42(a) to read as follows: Except as otherwise required by applicable federal law, new employees must be given the opportunity to enroll or decline enrollment for themselves and their dependents within 30 days from the date of employment or from first becoming eligible on a partially contributory basis. Coverage may become effective on the first day of the month following date of entry on payroll or on the first day of the following month. New employees age 19 and older not enrolling themselves and their dependents age 19 and older within 30 days, or not adding dependents when first eligible as provided herein may enroll during annual enrollment, but may be subject to a 12-month waiting period for preexisting health conditions, except for employees who elect to change their coverage in accordance with rules established by the State Treasurer f or optional or alternative plans available under the Plan.
– ZBNS012 Health Plan Not Yet Enrolled Letter http://www.osc.nc.gov/training/osctd/help/Benefits/BPPs/ZBNSO12HealthPlanNotYetEnroll edLetter.pdf 11
Payroll and Time Updates Return to Standard Time • “Fall Back” occurred Nov 4 at 2am • Maximum of 25 hours could be worked and/or on-call • SAP limit is 24 hours in one day • Payroll Admin can enter additional pay amount on IT2010 – 19TS Transition Adjustment – posts to salary/wage accounts in GL • Always include a text note
– 1714 On Call Daylight Savings – posts to callback account in GL • Maximum that can be entered is $10
12
Payroll and Time Updates End of Year Reminders • December Payroll Deadlines – Monthly corrections are Dec 12-17 – Biweekly corrections are Dec 14-17 • Get changes in this payroll to be included on W-2. • Do you have moving expenses not recorded in payroll yet? • Has an employee repaid a debt in full that you have not sent to BEST?
– Pay day is December 21 for both Monthly and Biweekly
• Claims letters resulting from the December payroll will not be sent until January. – Contact us if you have an employee that wants to repay a new December claim before the end of the 2012. 13
Payroll and Time Updates End of Year Reminders – con’t • Keep updating addresses for W-2’s • Employees claiming “exempt” for federal and/or state withholding in 2012 must submit a new form for 2013 – BEST to send notices to employees and list to payroll contacts – BEST will update the withholding values to Single with 0 allowances for employees that do not submit a new form by January 31, 2013.
IRS Negotiated Settlement • Voluntary payment agreement between employee and IRS • Employee receives letter from IRS and a 3-part form “Form 2159 Payroll Deduction Agreement” – BEST must have both the IRS letter and completed Form 2159 • The letter tells BEST where to send the garnishment payment. 14
• Upcoming QRG on completing the form
Agenda • HR Processing Items • Military Leave and the LI • Social Security Number Errors • Savings Plans One Time Deferral • BEST Administrative Processing Issue • Benefits Updates • Payroll and Time Updates • Daylight Savings to Standard Time Review • End of Year Reminders • Garnishments - IRS Form 2159 2
Military LOA and the LI • Employees who are on a Military LOA should – Receive their longevity pay based on the new LI salary. – If receiving Deferential Pay then this should be calculated on the new LI salary. – If the employee doesn’t return, any payouts should be on the LI salary.
• Agencies can enter the LI Action as of 7/1/2012 for these employees
3
Social Security Number Errors • Still having agency hire employees with the wrong SSN. • Can eliminate most of these errors by using E-verify first. • State Personnel Manual Section 2, page 2. “In additional to the I-9 process, electronic verification using the internet based E-Verify Program is required for every newly hired employee who began work in an agency/university on or after January 1, 2007.”
• Please ensure you are also using the Cross Agency Verification Report before entering your actions.
4
One-Time Savings Plans Deferral • Limits are increasing to $17,500 in 2013 for 401(k), 403(b) and 457 savings plans 2013
5
2012
2011
2010
Annual employee $17,500 contribution limit for 401(k), 403(b) and 457 savings plans
$17,000
$16,500
$16,500
Annual catch-up contribution limit for 401(k), 403(b) or 457 savings plans if employee is age 50 or over
$5,500
$5,500
$5,500
$5,500
One-Time Savings Plans Deferral • 403(b) and 401(k) plans still coordinate – Meaning – The maximum combine contribution to both of these plans is $17,500 or $23,000 if over 50 years old.
• 457 savings plan stands on its own and does not coordinate with a 401(k) plan. – Meaning – Employees over 50 can contribute $23,000 in a 401(k)/403(b) plan and a separate $23,000 into a 457 plan.
6
One-Time Savings Plans Deferral • Other information – The 401(k) plan limits contribution to 80% of earnings per pay period – The 457 plan allows 100% of earnings. – Social Security tax, Medicare tax, and retirement contributions are still deducted from vacation payouts. – Some Federal and State taxes are deducted for the cash needed to pay these deductions.
7
One-Time Savings Plans Deferral • We prefer one-time deferral forms with dollar amounts and not percentages…why? – When the payouts are in the last months check then the system will take 100% of total earnings and not just the payout amount. – The system does not process payouts in separate payrolls. – You do not need to be exact with your dollar amount. – Be careful about longevity pay on separated employee • If the separation action is entered before payroll deadline, then the longevity pay will be in current month and payouts in the following month.
• Retirements for January 1st, 2013 – If the employee is near their 2012 limits, try to do the payouts in January 2013.
8
BEST Administrative Processing Issues • No need to request a ticket number and then fax us the employee’s forms. – Just fax us the forms and explain on the cover sheet; or, – Email us the forms as an attachment and explain in your email – Submit one fax or one email attachment per employee. Do not fax multiple forms at once or attach multiple forms to one email
9
BEST Administrative Processing Issues • Do Not submit a ticket for us to look at OM Workflow items – BEST HR reviews their workflow in-box everyday. – This is a waste of your time and BEST
• New OM updated worksheets available on our websites.
10
Benefits Updates • NCFlex Annual Enrollment review period has ended. – Contact OSP for any exceptions.
• SHP HBR Alert – http://www.shpnc.org/newsRoom/newsletters/hbr-update-alert.aspx – Enrollment Exceptions The State Health Plan is bound by the North Carolina General Statutes. This year, House Bill 1085 amended N.C.G.S. 135-48.42(a) to read as follows: Except as otherwise required by applicable federal law, new employees must be given the opportunity to enroll or decline enrollment for themselves and their dependents within 30 days from the date of employment or from first becoming eligible on a partially contributory basis. Coverage may become effective on the first day of the month following date of entry on payroll or on the first day of the following month. New employees age 19 and older not enrolling themselves and their dependents age 19 and older within 30 days, or not adding dependents when first eligible as provided herein may enroll during annual enrollment, but may be subject to a 12-month waiting period for preexisting health conditions, except for employees who elect to change their coverage in accordance with rules established by the State Treasurer f or optional or alternative plans available under the Plan.
– ZBNS012 Health Plan Not Yet Enrolled Letter http://www.osc.nc.gov/training/osctd/help/Benefits/BPPs/ZBNSO12HealthPlanNotYetEnroll edLetter.pdf 11
Payroll and Time Updates Return to Standard Time • “Fall Back” occurred Nov 4 at 2am • Maximum of 25 hours could be worked and/or on-call • SAP limit is 24 hours in one day • Payroll Admin can enter additional pay amount on IT2010 – 19TS Transition Adjustment – posts to salary/wage accounts in GL • Always include a text note
– 1714 On Call Daylight Savings – posts to callback account in GL • Maximum that can be entered is $10
12
Payroll and Time Updates End of Year Reminders • December Payroll Deadlines – Monthly corrections are Dec 12-17 – Biweekly corrections are Dec 14-17 • Get changes in this payroll to be included on W-2. • Do you have moving expenses not recorded in payroll yet? • Has an employee repaid a debt in full that you have not sent to BEST?
– Pay day is December 21 for both Monthly and Biweekly
• Claims letters resulting from the December payroll will not be sent until January. – Contact us if you have an employee that wants to repay a new December claim before the end of the 2012. 13
Payroll and Time Updates End of Year Reminders – con’t • Keep updating addresses for W-2’s • Employees claiming “exempt” for federal and/or state withholding in 2012 must submit a new form for 2013 – BEST to send notices to employees and list to payroll contacts – BEST will update the withholding values to Single with 0 allowances for employees that do not submit a new form by January 31, 2013.
IRS Negotiated Settlement • Voluntary payment agreement between employee and IRS • Employee receives letter from IRS and a 3-part form “Form 2159 Payroll Deduction Agreement” – BEST must have both the IRS letter and completed Form 2159 • The letter tells BEST where to send the garnishment payment. 14
• Upcoming QRG on completing the form
