Tips and Tricks for Year-End Payroll Be Proactive, Not Reactive

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Tips and Tricks for Year-End Payroll

Be Proactive, Not Reactive

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About Symphony

• SAP Services Partner with an exclusive focus on SAP HCM consulting services

• Headquartered in Charlotte, North Carolina

• WBE Certified by the WBENC (Women’s Business Enterprise National Council)

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About Symphony’s Team

• Platinum level consultants with both business and SAP experience • Global Consulting Expertise strengthened by numerous

multi-country HCM roll outs • Industry Focus includes:

Public Sector (Local, State, Federal, K-12)

Manufacturing & Distribution Utilities/Oil and Gas/

Chemicals

Life Sciences

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In This Session ...

We will learn:

• How to get your system ready and perform configuration updates • Ways to approach YE processing to ensure success

• What tools are available to assist with YE closing • How to create an annual project plan and check list

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What We’ll Cover …

• Getting your system ready • Year-End Configuration • Processing

• Know Your Tools

• Year-End Processing Issues • 2010 Updates

• Setting up for 2011 • Planning

• Check List vs. Project List

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Getting your system ready

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Getting your system ready

System Status Check- Up • SAP

– Support Stacks – Transports

– YE Notes

• BSI

– TUBs

– Prepare for 9.0

Transports Resolution

Development Clients

Dev Client 100 Dev Client 101

Q (Pending Transports into Prod)

Client 200 Client 201

Transport Clean-Up

Review of pending Transports to Production Development Unreleased & RPI Pending Import

New Development Stops Sandbox System

Current Production Data and Config

Support Stacks Applied

Development Review Sandbox Test Sandbox QA Review QA Test QA Production

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Getting your system ready

• Preparation

– Forms

• ERP 6.0 is required to use SAP Print Forms by Adobe.

SAPscript forms are only available if it is necessary to reprint tax forms for 2006 or prior.

• Form changes for 6.0 higher – 1496314 – 10/14/10 • Note for SAP delivered 4-Up Form is175641

• Note for the Self Sealer Form is 556214 – Printers

• Configure/Set-up Printer

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Now What?

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What We’ll Cover …

• Know Your Tools

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Year-End Configuration

Form W-2

• W2 Boxes 11 – 14 • Define Format

• Communication to employees to update addresses • Use SAP guides “Tax Reporter Made Simple”, and

“User Guide for W-2 Post-Filing Run”.

• If needed use “W-2 Processing for Puerto Rico”

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Year-End Configuration

Form W-2

• W2 Boxes 11 – 14

– Configuration for box 12, like most boxes on the W-2 uses wage types from the payroll

results. In order to have amounts presented on the W-2, you must link your custom wage types to the tax form groups provided by SAP. Link wage types to tax form groups W23A, W23B, W23C, W23D, W23E, W23F, W23G, W23H, W23J, W23K, W23L, W23M, W23N, W23P, W23Q, W23R, W23S, W23T, and W23V.

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Year-End Configuration

Form W-2

• W2 Boxes 11 – 14

– Configuration for box 13 items are the checkboxes for Statutory Employee,

Retirement Plan and Third Party Sick Pay. Link your custom wage types to the tax form groups W25A, W25C, W25G and W25H.

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Year-End Configuration

Form W-2

• W2 Boxes 11 – 14

– Configuration for box 14, attach wage types to be reported for box 14 items to the appropriate tax form groups W24A -W24J

– To create the text that you want to display on W-2 that corresponds to the reported amounts, simply change the text of the tax form group (W24A-W24J) from "Box 14 amount 1" to the text that you want to print on the form i.e.

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What We’ll Cover …

• Know Your Tools

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Processing

• Sort Criteria

• Is specified from the main Tax Reporter screen under the Annual Tab > W-2 Wage and Tax Statement within the Employee Copy Selection.

• The default sort criteria for Employee W-2s are Tax Company and Personnel Number.

However, the available sort options for W-2s are Personal Area, Personal Sub-area, Tax Authority, Worksite, Personnel number, Social Security Number, First Name, Last Name, ZIP code, Organizational unit, Employee group, Employee

subgroup, Organizational key, Status (active/inactive), and Cost Center.

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Processing

• Report RPCTRDU0

• Used to view and delete records in the Tax Reporter cluster PCL4. Access the report from the Tax Reporter screen by selecting the menu path Utilities > Display Form Fields.

• Both simulation and production runs can be viewed/deleted. You must, at a minimum, specify the tax company and form number on the selection screen. This information for a

particular Tax Reporter run can be obtained in Tax Reporter Log Manager. The report can be used effectively to

periodically delete simulation runs, which can occupy extensive database space.

• You should be extremely cautious when using this program to delete productive Tax Reporter runs.

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Processing

• Tables T5UT1 and T5UT2

• These tables are used to manually adjust tax forms. • T5UT1 is used when it is necessary to adjust reporting

amounts calculated by Tax Reporter. This is simply a way to plug an amount on a tax form and does not permanently

adjust the employee’s payroll results. Therefore, beyond the table entries in table T5UT1, there is no permanent audit trail visible in the employee’s payroll results.

• Table T5UT2 serves a similar purpose. However, T5UT2 is for adjusting summary reporting amounts rather than those at the employee level.

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What We’ll Cover …

• Know Your Tools

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Know Your Tools

• Use the Reconciliation report to assist with

reconciliation of payroll results from specific payroll results and amounts that have been posted to FI.

• This is only a tool and is best used monthly to assist with monthly tax reporting so when quarterly and YE are due there are less issues to process.

• This report will provide you a high-level cross check of the accuracy of payroll results and the

reconciliation process should begin with an analysis of total amounts. Execute the report with the Totals View option selected.

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Know Your Tools

• Use the Payroll Configuration Checker

• This tool will enable you to ensure you have correctly configured your system to run Tax Reporter. The checker will review areas where common errors arise including:

TemSe file authorization Feature changes

Definition of number ranges Client-dependent HR forms

Consistency among tax form fields Assignment of correction forms to original forms Tax form group evaluation rules Assignment of tax authorities to tax form fields Function UCQRC (for cross-quarter retro) Conflicting record locations in Magnetic Media forms

Use of lower case in Magnetic Media forms Use of PostScript printer drivers, based on user feature and user default Wage type sign reversals Correction form field names

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Know Your Tools

• Tax Reporter Log

• This is an administrative tool designed to provide an overview of every reporting run that Tax Reporter performs and you should check the log after every run. Records from both production and test

(simulation) runs for every combination of Tax

Company and quarter or year end form that is being filed.

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What We’ll Cover …

• Know Your Tools

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YE Processing Issues

• Claims Processing – Best Practice

• Clear claims during the payroll cycle they happen in • Use reports to help you identify claims before exiting

payroll and avoid them early on

• Review business processes that create claims and be proactive to improvements to reduce YE processing time

• Use SAP Guide for Claims Processing “Clearing Claims From SAP Payroll

– http://service.sap.com/HRUSA

– Identify the Claims

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YE Processing Issues

• Adjustments

– Identify adjustment types • Manual Payments

• Fringe Benefits • Retrocalculations

– Identify correct method to process adjustments • Infotype 0221

• Adjustment Workbench • Process Off-cycle Run

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YE Processing Issues

• Adjustments – continued

– Infotype 0221 Should not be used for

• Changes where deductions for things such as, taxes, garnishments, accruals, arrears, or others must be calculated.

• Changes where a check or direct deposit must be created.

• Changes of an organization nature such as an Employee Grouping.

– Use the SAP user guide for “Adjustments” to understand the use of 0221 and the Adjustment Workbench Subtypes.

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What We’ll Cover …

• Know Your Tools

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2010 Updates

• Configuration

– Changes 2010

• Arizona July 1st

• FMLA absence link to request – Garnishment Publication 1494

• 2010 Changes applied Dec 2009 for tables T5UGE and T5UGF

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2010 Updates

• Forms / Reporting – CSV file format

– SUI Summary Forms

– Magnetic/Electronic File Layout changes Note 1497930 • Also MASS Note 1496314 for EFW2 file layout

– Form 941

• New version for 6.0 and above for 941-x 5.0 and below has been adjusted.

• Note 1497930 allows for override of /704 with any custom wage type.

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2010 Updates

• Forms / Reporting – continued – Note 1496314

• W-2 added “CC” code

• W-3 - New form for all releases to accommodate HIRE Act

• Puerto Rico W-2 and W-2c were updated • 1099R – Modified

• 1096 – Only 6.0 modified to reflect minor text changes – IRS still to release final form updates for 940 and 945

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What We’ll Cover …

• Know Your Tools

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Set-up for 2011

• Configuration

– HIRE Act impacts for 2011

– New 2011 W-2 Form – Draft has been released. • System Set-up

– Update new state unemployment insurance

– Update other tax rate changes as necessary for the new year

– Establish a holiday calendar for the new year

– Generate and review pay periods for new year (if needed) – Review Posting dates

– Review payment models

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What We’ll Cover …

• Know Your Tools

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Planning

• Approach – Wing It

• Attend class

• Deal with issues as they arise

– Silo

• Each team works independently

– Team

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What We’ll Cover …

• Know Your Tools

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Check List vs. Project Plan

– Check list will work best for • Independent task items

• When a team is less than 3 people

• When working to put together a project plan – Project plans work best for

• Managing larger teams

• Managing tasks that are dependent on other tasks • Managing both tasks and time

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Common Mistakes

• Poor planning

• System preparation not considered

• Development and configuration needs not considered • Being reactive instead of proactive

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Resources

• SAP Service Market Place

• http://service.sap.com/HRUSA

•

https://websmp210.sap-ag.de/~form/sapnet?_SHORTKEY=01100035870000733323 &

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Questions?

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How to contact me: Kathy Morris

Email: kmorris@symphony-consulting.com Facebook: www.facebook.com/symphonysaphcm

Twitter: www.twitter.com/symphonysaphcm Blog: www.symphonyhcmexperts.com

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