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Payroll Overview Payroll Overview

Payroll Overview - PowerPoint Presentation

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Uploaded On 2017-10-24

Payroll Overview - PPT Presentation

View this slide show with the Notes Page activated Then use the bar on the righthand side to scroll down to read more Commonwealth VernacularDefinitions Agencies DOA VRS DHRM ID: 598843

overview payroll pay agency payroll overview agency pay employees administration tax reporting benefits payments federal cont withholdings deductions state types required virginia

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Slide1

Payroll Overview

Slide2

View this slide show with the Notes Page activated. Then use the bar on the right-hand side to scroll down to read more.Slide3

Commonwealth Vernacular/Definitions:

Agencies: DOA, VRS, DHRM

Systems: BES, PMIS, VNAV, CARS, CIPPS, PAT

Payroll OverviewSlide4

Payroll Overview

Paying employeesProcessing court ordered withholdingsManagement

Review/Audit of payroll entries

Reconciliations

Adjustments

Preparation of regulatory informationSlide5

Payroll Overview

Importance of payroll to the agencyCost of Personal Services and Fringe Benefits as a percent of total agency expenditures

Employee morale is affected by payroll administration

Payroll controls and administration go beyond the

system – human interaction is requiredSlide6

Payroll Overview

Importance of Payroll Administration to Agency Fiscal ManagementHigh exposure area of responsibility

Opportunity for

fraud when internal controls are not applied

High risk function

Potential for

error or fraud

Safeguard of Commonwealth assetsSlide7

Payroll Overview

Agency Fiscal Management must be the controlling party to ensure the accuracy of payroll and payroll related expenditures.Management Review, Establishment of Policy, and Adherence to Procedures are integral controls outside of the system

Payroll Administration goes beyond payroll processing. Paying employees is only one facet of the responsibilities of Payroll AdministrationSlide8

Payroll Overview

Payroll Administration is comprised of several facets of responsibilitiesCompliance with Federal and State Tax laws and Regulatory

reporting

Compliance with Federal Labor Law for FLSA and Wage and Hour Laws

Administration of Benefits for

employees to include disbursement to the receiving entity

Accounting of Payroll and Benefit Expenditures in CARSSlide9

Payroll Overview

Agency Liability for Non-Compliance with Federal and State RegulationsPenalties for non-compliance

Amounts

for under-withholding of GarnishmentsSlide10

Payroll Overview

TYPES OF EMPLOYEESSalaried – Classified/Faculty

Automatic-no pay transaction is required to pay the employee

Paid a predetermined amount

Virginia Personnel Act

The Comptroller of Virginia establishes the pay dates for classified employees

...moreSlide11

Payroll Overview

TYPES OF EMPLOYEES cont.Hourly - Wage-Non AutomaticPay transaction is required to pay the employee.

Paid a predetermined hourly rate for hours worked;

Payment is for a prior pay period rather than current;

Not entitled to state funded benefits;

Limited to 1500 hours in an anniversary year, and

Automatically eligible for overtime.Slide12

Payroll Overview

TYPES OF PAYMENTS AND PAYROLL CALCULATIONSSalary payments

Wage payments

Overtime payments (FLSA impact)

Shift Differential payments

...moreSlide13

Payroll Overview

TYPES OF PAYMENTS AND PAYROLL CALCULATIONS cont.Special Pays for Supplemental Payments

Any additional money to be paid to an employee:

Moving/Relocation,

Workers Compensation,

Disability Benefits,

Leave Payouts, etc.Slide14

Payroll Overview

TYPES OF PAYMENTS AND PAYROLL CALCULATIONS cont.Special Pays for Fringe Benefits

Imputed Life - Considered a benefit by the Federal government if a “salaried” employee’s annual salary exceeds $25,000

Company Car

...moreSlide15

Payroll Overview

WITHHOLDINGS FROM PAYDeductions

Fixed Dollar Amounts

Percentages

Based on Net Pay

Based on Gross

PayBased on the value of a specific special pay or a combination of pays

...moreSlide16

Payroll Overview

WITHHOLDINGS FROM PAY cont.TaxesFederal Income Tax (FIT)

W-4 Form for withholding

W-4’s claiming exempt status

...moreSlide17

Payroll Overview

WITHHOLDINGS FROM PAY cont.TaxesState Income Tax (SIT) Virginia and other states

Reciprocal Taxing ( i.e. Maryland)

Local Income Tax Withholding

Slide18

Payroll

OverviewWITHHOLDINGS FROM PAY cont.TaxesFIT – Federal Income

FICA

(OASDI

plus

HI)

OASDI Rate/Limit - 6.2%, up to the established limit stated on the Social Security Administration website (SSA.GOV)HI – 1.45% with no limit

Slide19

Payroll

OverviewMANDATORY DEDUCTIONS

Retirement – for salaried

employees

Hybrid Plan: Deferred Compensation of 1%

Court Ordered Deductions

GarnishmentsTax Levies

Child/Spousal SupportBankruptcyGarnishment FeeSlide20

Payroll Overview

VOLUNTARY DEDUCTIONSBenefits/Voluntary DeductionsCombined Virginia Campaign

Deferred Compensation/Annuities –Alternative Retirement Contribution Plans

VPEP/VEST-Virginia College Savings Plans

Parking

Flexible Spending AccountsSlide21

Payroll Overview

Deferred Compensation and Annuities Limit on withholdings for an annual period

Applicable Tax Exclusion from FIT and SIT

Slide22

Payroll Overview

Healthcare Different providers available to State employees

Applicable Tax Exclusion

Rates are determined by DHRM

Direct Deposit- Required

Direct Deposit of a Fixed Amount or a

Percentage of Net PaySlide23

Payroll Overview

FRINGE BENEFITS CALCULATED AS AGENCY PAID DEDUCTIONSAgency paid

Health Care

Group

Life Insurance

Retiree Credit

Long term Disability Insurance Cash Match

Slide24

Payroll Overview

MONTHLY RECONCILIATIONS/REVIEWSTax Profile/Accumulator Reconciliation Healthcare Reconciliation

VRS Reconciliation

VEC New Hire Reporting Slide25

Payroll Overview

QUARTERLY RECONCILIATIONS/REVIEWSQuarterly Certification to DOA – Control Totals Database

IRS – Form 941 - Required Reporting Reconciliation

of Tax

Deposits of Wages

and Taxes

Unemployment Wage Reporting to VECSlide26

Payroll Overview

ANNUAL RECONCILIATIONS/REVIEWSAnnual Certification of taxable wages and taxes withheld for W-2 preparation

Reporting to Department of

Taxation

Reporting to Other StatesSlide27

Payroll Overview

DOA ResponsibilitiesSchedules the processing of all payrolls

Performs VA State

and Federal regulatory reporting

Establishes

and controls security to

CIPPS and PaylineEnsures all certified payrolls are processed by the due date

Ensures timely response to agency questions and concernsProvides training to agency personnel

Provides on-site assistance when justified

Develops and coordinates changes to CIPPS

Issues Payroll Bulletins and maintains the CAPP Manual

Slide28

Payroll Overview

Agency ResponsibilitiesProvides accurate and timely payments of employees

Timely

entry into PMIS,

BES, VNAV,

CIPPS

Collects and maintains payroll source documentsAuthorizes and certifies payroll data

Establishes internal controlsEnsures separation of dutiesSlide29

Payroll Overview

Education:Additional education opportunities are available through other organizations including: The American Payroll Association (APA)

http://www.americanpayroll.org/

Local APA chapters statewide

Certifications for FPC and CPP