1 / 27

HR/Payroll Accounting

HR/Payroll Accounting. VPF Learning Series April 16 th , 2010 . Presentation Outline. Who are we? What do we do? Pay people and post salary/wage expenses Collect and remit taxes Collect and remit/distribute deductions Provide tax reports Employees Institute Reconciliations.

colum
Download Presentation

HR/Payroll Accounting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HR/Payroll Accounting VPF Learning Series April 16th, 2010

  2. Presentation Outline • Who are we? • What do we do? • Pay people and post salary/wage expenses • Collect and remit taxes • Collect and remit/distribute deductions • Provide tax reports • Employees • Institute • Reconciliations

  3. Organization Chart

  4. What We Do • Pay people • Issue Tax Forms (i.e. W-2s) • Customer Service – Ticket Queue and phone • Off-Cycle Check Processing & Posting • Timesheet Corrections • Vacation Processing & Research • Benefits Support • Payroll Processing • Pension Payroll • Salary Distribution & Issues Resolution • Salary Overpayment Claims Processing • Long Term Disability/ SSDI overpayment Claims • Remittance (Tax, Garnishments, Dues, 401(k), Home/Auto, etc) • Sick Buy-Back Processing • Jury duty Pay Processing • Military Differential Processing • Swiss Francs Pay • Tax Inquiries • Year End Reconciliation • Reporting & Documentation • Garnishment and Levy Setup • Tax Filing • Late Distribution Change Processing • Taxable Travel Processing • Workers’ Comp Setup • Account Reconciliation

  5. What We Do

  6. Salary and Wages

  7. Salary and Wages - Statistics Active Employees • $1.08 billion/year • 4,000 weekly paid employees • 12,500 monthly paid employees • 357 different pay categories • Direct deposit – 97% Pensioners • $104 million/year • 5,600 pensioners • Direct deposit – 91%

  8. Salary and Wages - Posting Payroll Runs (and posting) • Weekly paid employees - 52 times a year • Monthly paid employees - 12 times a year • Off-cycle payroll runs – 1,800/year • Late Paperwork • Terminations • Awards What this means • 1,864 payroll postings/year • ~155 posting/month • ~7 posting/day • Off-Cycle Issues • Unstable posting • Manual process

  9. Salary and Wages - Distribution Distribute to 4,600 accounts Weekly – post weekly • Paid – Posted/Distributed Monthly and Supplements – post at month end • Paid-Posted-Distributed (via -Cost Distribution Utility/CDU) Paid (Payroll Results in P/R Module) Posted to GL (CC 1134400) Distributed

  10. Salary and Wages – Suspense Accts • 110 suspense account • DLCs • Central • Temporary holding place for salary and wage expenses • Invalid cost object, closed cost object, no cost object • Total accounts with balances - 72 • Balance in suspense accounts March 2010 –$2.5 million

  11. Salary and Wages - DACCAs • Salary and Wage Distribution Reports (created by CDU) • Tie to SAP FI Postings • Redistribution • Electronic Salary Distribution System (eSDS) • Late Salary Change Process

  12. Taxes - Withholdings

  13. Taxes - Withholdings Total employee tax withheld CY 2009 - $250 million !!! • Fed Tax withheld - 59.12% • TX EE Social Security Tax - 17.38% • TX EE Medicare Tax -5.13% • Fed Tax NRA - 0.38% • MA State tax - 17.90% • VA state tax - 0.05% • CA state tax - 0.04% • AL state tax - 0.02% • NM state tax - 0.01% • DC state tax - 0.01% • NY state tax - 0.01% • CO state tax - <0.01% • MD state tax <0.01% • OH state tax - <0.01% • Kwaj tax for US citizen - <0.01%

  14. Taxes - Remittance Required by law to withhold taxes and remit • Federal • One-day rule • Income tax, EE FICA, and ER FICA (each week and EOM) – active and pension payroll • Income tax on long term disability (EOM) • Income tax on non-resident aliens (EOM) • Massachusetts State Income Tax • 4 payments/month • Other States Income Tax (withhold in 10 states) • Monthly • Unemployment (excluding MA) • Quarterly

  15. Taxes – Why On Time? Penalties • Federal – 2% penalty if 1 to 5 days late • Weekly – $880K x 2% = $17,600 • Monthly - $18M x 2% = $360,000 Levies • Withhold other payments (refunds, scholarships, partnership payments) if we do not remit • Levy our accounts and related accounts (i.e. alumni clubs…anyone using MIT’s EIN)

  16. Deductions

  17. Deductions - Statistics • 340 deduction types in SAP • Used 63 types CY2009 • $160 million in deductions in CY2009 • Deductions taken based on priority settings in SAP • Group A - I.R.S. Tax Levy, Summons, State Tax Levy, Child Support,Student Loan) • Group S and T – TechCash, Alumni Fund, 457(b) Plan

  18. Deductions - Statistics Retirement Plan 39.7% • Retirement Plan Catch Up 4.3% • Credit Union 16.8% • Network Blue New England 9.0% • M.I.T. Trad Health Plan 6.8% • Delta Dental Plan 2.3% • Life Insurance Plan 2.3% • Tufts Assoc Health Plan 2.2% • Medical Expenses 2.2% • 457(b) Standard Plan 2.0% • Athletic Card 1.9% • Dependent Care 1.3% • Parking Fee – Annual 1.2% • BlCross-BlShld PPO 0.9% • M.I.T. Flex Health Plan 0.8% • MBTA Pass – PreTax 0.8% • Educational Loans 0.8% • Long Term Care Insurance 0.6% • Child Support 0.4% • Union dues 0.4%

  19. Deductions -Remit/Distribute External (Remit) • Fidelity • Credit Union • Garnishments (Child Support, Levies, Summons, etc) Internal (Distribution) • Health Plan – Delta, Vision, Network Blue • Parking • Tech Cash Reconcile

  20. Deductions - Arrears When an employee’s gross is less than the sum of all taxes and deductions • Leave without pay • Low gross (reduced effort, reduced hours) • Prior period payroll overpayment claim taken from current pay General guide – direct bill when >3 months

  21. Tax Filings

  22. Tax Filings - Institute Monthly • Other States (PIT, State Disability, State Training) Quarterly • Form 941 – Federal Income & FICA Tax • Form M941D – MA State Income Tax • Unemployment • MA (WR1 and 1700-HI) • Other States Annual • Fed • W-3 (with W-2s) • Form 945 Pension & LTD • Form 1042 • MA – File Fed Form 945 Pension & LTD • Other States annual reconciliation

  23. Tax Filings - Individual W2s – Regular Employees • 22,000 1042S – Non- resident Aliens • 1,600 1099R • 5600 pensioners • 150 LTDs

  24. Reconciliation - Types Accounts • Approximately 170 accounts (Active & Pension) • Types of accounts • Liability • Suspense • Claim Receivable • Clearing Filings • W-2s to 941s • 945s to 1009Rs • 1042 to 1042S

  25. Reconciliation - Pentagram Payroll Results (Reconciliation Report) Warehouse (Gross to Net - Brio) General Ledger (Summary Statement) Filing Remittance

  26. Contact Information Email – payroll@mit.edu • Linked to the REQUEST TRACKER • Assigned to individual by moderator • 2009 – 12,350 total tickets (approx. 47/day) Phone - 3-3337

More Related