BEACON Update
HR/Payroll Conference Call December 18th, 2012
Agenda • Payroll Changes for 2013 • Fiscal Cliff items • Employee FICA • Tax brackets • Medicare tax on high earners • Medical costs on W-2 • End of Year reminders • Enhancements to BI reports on Org Units • HR Updates
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Payroll and Time Updates Fiscal Cliff – payroll impacts • The following changes will impact 2013 payrolls unless the federal government passes new legislation. – Employee FICA rate moving from 4.2% to 6.2%. – Federal income tax rates are increasing. • 2012 rates are 10%, 15%, 25%, 28%, 33%, 35% • 2013 rates revert to 15%, 28%, 31%, 36%, 39.6%
– “Marriage penalty” is back. Married Filing Jointly income range is 167% of Single instead of 200%.
• Will impact BW pay for Jan 4. unless changes are passed and BEACON is able to implement this week.
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Payroll and Time Updates Other Payroll Changes for 2013 • FICA wage base moving from $110,100 to $113,700. • Medicare tax rate remains 1.45% for all wages. – Wages paid in excess of $200,000 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
• 2012 W-2’s will include medical premium costs in Box 12, code DD. – For information only. Not reported on tax return. – Employee and Employer premium for coverage in 2012 even if premium is in arrears. – Includes premiums for PPO plan, NCFlex Critical Illness, NCFlex Cancer. 4
Payroll and Time Updates End of Year Reminders • December Payroll Deadlines. – Pay day is December 21 for both Monthly and Biweekly. – Next Biweekly payroll starts Thursday, December 27 and finalizes Monday, December 31 for the January 3 payday.
• 2012 related claim repayments must be received by BEST no later than noon on Jan. 4 to be repaid at the net amount. • Employees claiming “exempt” for federal and/or state withholding in 2012 must submit a new form for 2013. – 2013 IRS form is not available. OK to use 2012 version until new form is released.
• Keep updating addresses for W-2’s.
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BI Report Enhancement Inserting Org Path Information into a report: Agency, Division, Section and Branch
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BI Report Enhancement
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BI Report Enhancement
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BI Report Enhancement
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BI Report Enhancement
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HR Updates • OSC technical staff will be completing hardware refreshes on the BEST Fax server on Tuesday, December 18, 2012 from 4:00pm to 9:00pm – barring any issues arising. During this time BEST will not be able to receive any faxes. • Biweekly to Monthly – IT007 • Ticket updates
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Agenda • Payroll Changes for 2013 • Fiscal Cliff items • Employee FICA • Tax brackets • Medicare tax on high earners • Medical costs on W-2 • End of Year reminders • Enhancements to BI reports on Org Units • HR Updates
2
Payroll and Time Updates Fiscal Cliff – payroll impacts • The following changes will impact 2013 payrolls unless the federal government passes new legislation. – Employee FICA rate moving from 4.2% to 6.2%. – Federal income tax rates are increasing. • 2012 rates are 10%, 15%, 25%, 28%, 33%, 35% • 2013 rates revert to 15%, 28%, 31%, 36%, 39.6%
– “Marriage penalty” is back. Married Filing Jointly income range is 167% of Single instead of 200%.
• Will impact BW pay for Jan 4. unless changes are passed and BEACON is able to implement this week.
3
Payroll and Time Updates Other Payroll Changes for 2013 • FICA wage base moving from $110,100 to $113,700. • Medicare tax rate remains 1.45% for all wages. – Wages paid in excess of $200,000 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
• 2012 W-2’s will include medical premium costs in Box 12, code DD. – For information only. Not reported on tax return. – Employee and Employer premium for coverage in 2012 even if premium is in arrears. – Includes premiums for PPO plan, NCFlex Critical Illness, NCFlex Cancer. 4
Payroll and Time Updates End of Year Reminders • December Payroll Deadlines. – Pay day is December 21 for both Monthly and Biweekly. – Next Biweekly payroll starts Thursday, December 27 and finalizes Monday, December 31 for the January 3 payday.
• 2012 related claim repayments must be received by BEST no later than noon on Jan. 4 to be repaid at the net amount. • Employees claiming “exempt” for federal and/or state withholding in 2012 must submit a new form for 2013. – 2013 IRS form is not available. OK to use 2012 version until new form is released.
• Keep updating addresses for W-2’s.
5
BI Report Enhancement Inserting Org Path Information into a report: Agency, Division, Section and Branch
6
BI Report Enhancement
7
BI Report Enhancement
8
BI Report Enhancement
9
BI Report Enhancement
10
HR Updates • OSC technical staff will be completing hardware refreshes on the BEST Fax server on Tuesday, December 18, 2012 from 4:00pm to 9:00pm – barring any issues arising. During this time BEST will not be able to receive any faxes. • Biweekly to Monthly – IT007 • Ticket updates
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