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Info

If errors are discovered, check employees that had exception processing during the quarter such as voided checks, error adjustments, or manual changes made through Core/Adjustments. The Audit Report (Reports/Report Manager/SSDT Audit Trail can be useful in identifying these problems.

  • Format-Choose format from drop down
  • Page Size-Choose from drop down.
  • Orientation-Choose from drop down (landscape or portrait)
  • Name- Default is Audit Report can be changed if desired.
  • Summary Report-If you only want a summary report click the box
  • Start Date- Enter a start date you wish to begin your audit from.        
  • End Date- Enter an end date you wish to process the report through.
  • Click Generate Report


Info

Please reference the section in the W2 Report and Submission chapter for common errors and solutions.


  •  Run W2 Report for Balancing Purposes
    • Go to Reports/ W2Report and Submission 
    • Output type - Report
    • Format - PDF
    • Report Title - defaults to W2 Report
    • Federal ID Number - defaults to IRN on Organization record
    • State ID Number - defaults to ID on the Organization record
    • Sort Options - choose from drop down
    • Report for Year - defaults to the current calendar year
    • Include Fringe Benefits in Box 14 - if want to include, check the box
    • Report Employees with errors only- leave unchecked
    • Select Payroll Items to print in box 14 (maximum of 3 selected will print in box 14, leave empty to not include specific payroll items in box 14) - enter payroll item and click Add
    • Select Pay Groups - Highlight all pay groups and click right arrow
      •  Balance the Payroll Item totals (taxes and annuities) on the W2Report with the totals from the Payables Reports from the quarter.
      •  Balance the gross amounts on the W2Report with Pay Reports for the quarter.

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  •  Check for any cities using either the Regional Income Tax Agency (RITA) or the Central Collection Agency (CCA) to report city tax information, verify the Tax Entity Code , and the appropriate RITA and/or CCA three digit code. Contact RITA or CCA to obtain the entity codes.
    • Go to Core/Payroll Item Configuration

Contact NWOCA with any other cities that require electronic reporting.

Keep in mind in order for the employee to be reported to RITA/CCA correctly, the city payroll item 'Deduction Type' field must be set to Employment or Residence.

  •  Check OSDI codes on Ohio School District Income payroll items
    • Go to  Core/Payroll Item Configuration

      Info

      The four digit OSDI code is required to be printed on the W2. Verify the four digit OSDI code appears first, followed by the school name (if there is space).


  •  Add any special W2 Reporting Situations.
    1. Dependent Care:  If an employee has reportable dependent care information that needs to appear in Box 10 of the W2 form, there are two ways of reporting:

Option #1:

  • Go to Core/Adjustments
  • Click Create
  • Find the Employee by typing in a few characters of the first or last name or id
  • Under Payroll Item from the drop down , choose Federal Tax, Code: 001
  • Under Type Choose Dependent Care
  • Enter or choose a Transaction Date from the calendar
  • Enter in the Amount for Dependent Care
  • A Description can be added if desired
  • Click Create

    Option #2:  If the DPCARE Payroll Item has been used during normal payroll processing no further action is necessary.

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  • Verify Health Savings Account type is set to 'Other" - even if no employee amounts are being withheld.  
Info

These amounts will appear on the W2 in Box 12 with a code of W.


  •  Depedent Care: If not using the Dependent Care Payroll Item type, enter the amount for Dependent Care benefits. This amount will be added to the total and taxable gross fields by any amount above the maximum ($5,000.00 if filing married or $2,500.00 if married filing separately) for any Payroll Item that taxes Dependent Care (Federal, Ohio, and City (if applicable).  This amount would only be entered under the 001 Federal payroll item. 

Option #1:

  • Go to Core/Adjustments
  • Click Create
  • Find the Employee
  • Choose the Payroll Item from the drop down 
  • Choose the Type-Total Gross
  • Enter or choose a Transaction Date
  • Enter in the Amount of the third party Pay
  • A Description can be added (optional)
  • Click Save
  • Follow the same steps as above for the Applicable (taxable) Gross
Warning
These adjustments will need to be made on the 001, 002, city if honored, OSDI and Medicare records accordingly.  See Third Party Sick Pay document.
Note
If Medicare tax was not withheld by the Third Party vendor then an Adjustments journal entry for Medicare-Amount Withheld will need to be processed. The board will pay the employee and employer amount and can ask the employee for reimbursement if desired.

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  • employee by name or id
  • Under payroll item, choose Federal Tax, Code: 001
  • Set type to Dependent Care
  • Enter a transaction date within the current posting period
  • Enter the amount of dependent care
  • Description can be added if desired
  • Click Create

Option #2:  If the Dependent Care Payroll Item has been used during normal payroll processing no further action is necessary.


Info

These amounts will appear on the W2 in Box 10.


  •  Third Party Sick Pay:  There are two types - taxable and non taxable.  Please see the document called Third Party Sick Pay for further information.        

Taxable Sick Pay:

  • Go to Core/Adjustments
  • Find the Employeeemployee name or ID
  • Choose the Payroll Item payroll item from the drop down 
  • Choose the Type-Third Party Paytype-Total Gross
  • Enter or chose choose a Transaction Datetransaction date
  • Enter in the Amount amount of the non taxable Third third party Paypay
  • A Description description can be added (optional)
  • Click Save
Info
This information will go on the W2 in Box 12 as a Code J.

3.  Life Insurance :  Process life insurance costs over $50,000 if not processed before the employee's last pay of the current calendar year.

  • Follow the same steps as above for the Applicable (taxable) Gross
Warning
These adjustments will need to be made on the 001, 002, city if honored, OSDI and Medicare records accordingly.  


Note
If Medicare tax was not withheld by the Third Party vendor then an Adjustments journal entry for Medicare-Amount Withheld will need to be processed. The board will pay the employee and employer amount and can ask the employee for reimbursement if desired.

Non-Taxable Sick Pay:

  • Go to Core/Adjustments
  • Enter the employee name or ID
  • Choose the payroll item from the drop down 
  • Choose the type-Third Party Pay
  • Enter a transaction date within the current posting period
  • Enter in the amount of the non taxable third party pay
  • A description can be added (optional)
  • Click Save
Info
This information will be placed on the W2 in Box 12 as a Code J.
  •  Life Insurance (known in Classic as NC1) :  If the Life Insurance Premium Pay Type was NOT USED prior to the last pay of the calendar year, the Life Insurance payment amount must be entered as an adjustment on the 001 payroll item.  W2 Report will automatically adjust the Federal, State, OSDI, City (If applicable) and Medicare, total and taxable gross amounts.  No manual adjustments are needed for the Gross and Taxable Gross amounts.  If the Medicare withholding was paid by the employee, employer or employee/employer, adjustments must be made to the Amount Withheld and Board Amount of Payroll Item. If Medicare is fully board paid (Pickup) then the total Adjustment should be made to the Board Amount of Payroll Item.
Note

The city is only adjusted when the city payroll item configuration Tax Non Cash Earnings box is checked. In Classic, the Taxable and Total gross must be manually adjusted.


  • Go to Core/Adjustments
  • Click Create
  • Enter the employee name or ID
  • Under the payroll item drop down and choose the 001 record
  • Under type choose Life Insurance Premium
  • Enter in a transaction date
  • Enter the amount of the life insurance 
  • Description can be entered (optional)
  • Click Save
  • Use Core/Adjustments to manually add the Medicare Amount Paid-(board will need to pay for both Employee and Employer portion of Medicare and employee can reimburse the district if board desires.)
  • Go to Core/Adjustments click Create
      • Enter the employee name of ID
      • Under the payroll item drop down, choose Medicare Tax 692
      • Under type choose Amount Withheld
      • Enter in a transaction date within the current posting period
      • Enter in the amount owed for employee and employer Medicare for the Life Insurance Premium. (board will need to pay both employee and employer share and employee can reimburse the district if the board desired.)
      • A description can be entered (optional)
      • Click Save
Warning
Medicare withholding will be updated on the W2 Report.
  •  Fringe Benefits (known in Classic as NC3):  If the Non-Cash Taxable Benefit Pay Type was NOT USED prior to the last pay of the calendar year, the taxable benefits payment amount must be entered as an adjustment under in order for the non-cash taxable benefit amount to show correctly on the W2 form and to insure that the Quarter balances.  This amount would only be entered under the 001 Federal Payroll Item. The W2 Report will automatically adjust the Federal and State total and taxable gross amounts. 
    • Go to Core/Adjustments
    • Click Create
    • Enter the employee name or ID
    • Under the payroll item drop down and choose the 001 record
    • Under type choose Taxable Benefits
    • Enter in a transaction date within the current posting period 
    • Enter the amount of the taxable benefit 
    • Description can be entered (optional)
    • Click Save
  •   Moving Expenses : Reimbursements, including payments made directly to a third party, for ACTIVE MILITARY employees only, be entered in the Moving Expense field. The amount in this field is treated as an excludable fringe benefit.
    • Go to Core/Adjustments
    • Click Create
    • Enter the employee name or ID
    • Under the payroll item drop down and choose the 001 record
    • Under type choose Moving Expenses
    • Enter in a transaction date within the current posting period 
    • Enter the amount of the moving expenses 
    • Description can be entered (optional)
    • Click Save
  •  Company Vehicle:  The Vehicle Lease option adds to the total and taxable gross fields on the Federal and Ohio totals. This amount would only be entered under the 001 Federal Payroll Item. 
    • Go to Core/Adjustments
    • Click Create
    • Enter the employee name or ID
    • Under the payroll item drop down and choose the 001 record
    • Under type choose Vehicle Lease
    • Enter in a transaction date within the current posting period 
    • Enter the amount of the vehicle lease
    • Description can be entered (optional)
    • Click Save
Info

This information will be placed on the W2 in Box 14.

  •  Adoption Assistance (known in Classic as NC2):  If the Adoption Assistance pay type was NOT USED prior to the last pay of the calendar year, the adoption assistance payment amount must be entered as an adjustment in order for the amount to show correctly on the W2 form and to insure that the quarter balances.  The W2 Report will automatically adjust the Medicare and City, if applicable, the total and taxable gross amounts.  
Note

The city is only adjusted when the city payroll item configuration Tax Non Cash Earnings box is checked. 

  • Go to Core/Adjustments
  • Click Create
  • Enter the employee name or ID
  • Under the Payroll Item drop down and choose the 001 record
  • Under Type choose Adoption Assistance
  • Enter in a Transaction Date within the current posting period
  • Enter in the amount of the adoption assistance
  • Description can be entered (optional)
  • Click Save
Info

This information will be placed on the W2 in Box 12 as a Code T.

  •  Taxable Benefits:  If the 'Non-cash Taxable Benefit' pay type was not used during payroll processing, an Adjustment entry is needed using the Taxable Benefits. This will update the total and taxable gross totals on the Federal and State records during W2 Report.  Please see document called Reimbursable Employee Expense Situations for further details.

Option #1: 

  • Go to Core/Adjustments
  • Click Create
  • Enter the employee name or ID
  • Under the Payroll Item drop down and choose the 001 record
  • Under Type choose Taxable Benefits
  • Enter in a Transaction Date within the current posting period
  • Enter in the amount of the taxable benefit
  • Description can be entered (optional)
  • Click Save

Option #2:

  • If the  'Non-cash Taxable Benefit' pay type in Payroll Payments Current or Future was used, this will represent the non-cash taxable benefits amount.  Nothing further needs to be processed.
Note

Questions on how information needs to appear on an employee's W2 should be directed to your district legal adviser.

  •  Verify employee sponsored health care costs.
    1. If all health care payroll item configuration screens have 'Employer Health Coverage' boxes checked and both employee and/or employer amount are tracked on the system, nothing further is required.
    2. If individuals need updated:
      • Go to Core/Adjustments
      • Click Create

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Warning
This will update the Federal, State, City, OSDI and Medicare total and taxable gross figures for W2 reporting purposes.

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      • Enter employee name or ID
      • Payroll Item = 001
      • Type = Health Insurance
      • Transaction Date = Any within current posting period 
      • Amount = total amount needing to report


Info

The Adjustment for Health Insurance does NOT OVERRIDE the amount, it + or - the total amount calculated. Only enter the amount NOT tracked in USPS system using the 001 Federal Tax Payroll Item.

3.  If needing to update multiple employees:

    • Create .CSV file
    • Use Utilities/Mass Load to upload the information.  
      • Browse to file .CSV file
      • Importable Entities= AdjustmentJournal
      • Click Load
Info

Information placed in box 12 with code DD.

  •  Enter health reimbursement arrangement information (if applicable).
    • Go to Core/Adjustments
  • click
    • Click Create
      • Find the Employee
      • Under the Payroll Item drop down and choose Medicare Tax 692
      • Under Type choose Amount Withheld
      • Enter in a Transaction Date
      • Enter in the Amount owed for employee and employer Medicare for the Life Insurance Premium. (board will need to pay both employee and employer share and employee can reimburse the district if the board desired.)
      • A Description can be entered (optional)
      • Click Save
Warning
Medicare withholding will be updated on the W2 Report. Can run W2 Report and Submission to verify information is reported correctly.
Note

Questions on how information needs to appear on an employee's W2 should be directed to your district legal adviser.

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    • Enter employee name or ID
    • Payroll Item = 001
    • Type = Health Reimbursement
    • Transaction Date = Any within current posting period 
    • Amount = total amount needing to report


Info

Information placed in box 12 with code FF.


2.  Generate and Balance W2 Report 

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Tip

W2 Report and Submission/Generate Report can be run as many times as necessary until all data on report is correct.  Please see document called Affects of Special Situations on W2 Processing for additional assistance with balancing.

3. Create the W2 Print File

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