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OSPA USER’S FORUM

OSPA USER’S FORUM. Year-End User’s Forum November 16, 2007. Agenda. Introductions – Katherine Bremser Year End Dates – Allison Absher Overpayments – Kathyron Parsons /Pauline Lewis Check Reversals – Maria Stalik Fringe Benefits – Sharon McKeehan / Katherine Bremser

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OSPA USER’S FORUM

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  1. OSPA USER’S FORUM Year-End User’s Forum November 16, 2007

  2. Agenda • Introductions – Katherine Bremser • Year End Dates – Allison Absher • Overpayments – Kathyron Parsons /Pauline Lewis • Check Reversals – Maria Stalik • Fringe Benefits – Sharon McKeehan / Katherine Bremser • Year-end Timeline – Cheryll Luth

  3. It’s All About the Date! At Year End,

  4. I went to this charming restaurant with a guy last night …. • Oh wait, not that kind of date!

  5. Constructive Receipt P010 Dates Three Kinds of Dates: • P370 Check Dates

  6. Constructive Receipt • What is It? • Simply put, Constructive Receipt is the day the employee will have monies available to her. • This can mean a physical check that was mailed, ACH deposit that was sent, or fringe benefit that was received.

  7. Here’s another way to look at it: Check the calendar – when should the employee receive her pay?

  8. If you answered “2007” to any of the above, then Constructive Receipt is in 2007.If you answered “2008” to any of the above, then Constructive Receipt is in 2008. • If a deposit was sent ACH, will the settlement date be in 2007 or 2008? (Hint: December’s ACH settlement date is 1/2/08) • If a physical check is mailed or delivered, is it reasonably expected to reach the employee in 2007 or in 2008? • If the employee received a fringe benefit such as meals, clothing allowance, etc. – did they have the use of that benefit in 2007 or in 2008?

  9. Constructive Receipt Summary • Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of 2007. • Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of 2008.

  10. The Great Date Mate Or, P010 Final Check Dates – Why They Matter, When to Set Them, and When to Leave Them Alone.

  11. Remember how to figure out Constructive Receipt? Now how do you make sure OSPA dates the employee’s check to reflect that Constructive Receipt date?

  12. The Great Date Mate, of course! Also known as P010 Final Dates

  13. So what makes the Great Date Mate so special? • The Great Date Mate holds enormous power over managing Constructive Receipt at year end. • This tool tells OSPA what date to print on paychecks – • But only if you tell it to.

  14. This means, “What date do you want OSPA to print on the check?” This means, “For the check date above, which pay period are you using?” Before we get into year-end specifics, let’s review how the Great Date Mate works.

  15. Let’s take a quick look at a sample. • In October, Taylor Smith will be terminating employment on 10/12/07. • Final cutoff for Sept Run 2 is 10/9/07; normal check date is 10/15/07. • Final cutoff for October Run 1 is 10/26/07; normal check date is 11/1/07. • You know about this on 10/4/07 so you go ahead and process the final payroll entries that day.

  16. If you do nothing to the Great Date Mate, what date will print on October’s final system check? 11/1/07

  17. Set the Great Date Mate to date the check 10/12/07: And tell OSPA which pay period you’re using: Now then, if you want the final system check to be dated 10/12/07: FINAL CHECK ISSUED: 101207 FINAL CHECK PERIOD ENDING: 103107 Easy, right?

  18. Uh Oh . . . What if this employee has a timesheet correction from September that still needs to be paid? It needs to have the same check date.

  19. You already set the Great Date Mate to date the final check 10/12/07 Will these entries: give you a September system check dated 10/12/07? FINAL CHECK ISSUED: 101207 FINAL CHECK PERIOD ENDING: 103107 Why or Why not?

  20. The Answer: NO

  21. You’ve told the Great Date Mate that you want OSPA to date the final check 10/12/07 but you’ve specified that the check will be coming from the 10/31/07 pay period So how do you get the 9/30/07 pay period check to print with the 10/12/07 check date? FINAL CHECK ISSUED: 101207 FINAL CHECK PERIOD ENDING: 103107 Change the date to 093007. FINAL CHECK PERIOD ENDING

  22. Now what happens when October runs for this employee? • Will October have a 10/12/07 check date? • Not if you leave the date at 093007. FINAL CHECK PERIOD ENDING • You’ll need to change it back to 103107 after September Run 2 has completed. • NOTE: You probably requested a manual check for this way back on 10/4. Setting the October P010 dates simply matches the system date to the manual check date.

  23. So how does the Great Date Mate apply at year end?

  24. Remember that Constructive Receipt exercise? • Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of 2007. • Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of 2008.

  25. How do you make sure the paycheck you give your employee has the right date on it so it corresponds with the date of Constructive Receipt? Yep, the Great Date Mate.

  26. If your employee will have constructive receipt of her paycheck in 2007, the Great Date Mate should reflect that. • Namely, the field would show a 2007 check date, • and the field will tell OSPA to use either November or December to do it. FINAL CHECK ISSUED FINAL CHECK PERIOD ENDING • Let’s take a look at a quick sample.

  27. Taylor Smith is retiring at the end of December, and you’re lucky enough to know about it before December Run 1 final. • If you leave the Great Date Mate alone, it looks like this: and will date the final check with the other check dates on 1/1/2008. • Since the employee’s last day is December 31, putting Constructive Receipt into 2007, that’s not what you want to happen.

  28. Instead, you’ll need the Great Date Mate to show this: Now you’ve told OSPA to date the check that comes for December as 12/31/07. That’s more like it! • Now let’s add another wrinkle.

  29. This retiring employee has timesheet corrections from September, October, and November. Why do you think you cannot simply set a corrective for those months?

  30. If you did set the corrective, and the Great Date Mate is set up to date December’s check 12/31/07: What date do you think will print on the corrected checks from September, October and November?

  31. Did you tell OSPA to put a different date on the checks for PPE 093007, 103107, or 113007? • Nope: FINAL CHECK PERIOD ENDING: 123107 • So since you didn’t tell it to date those pay periods differently, what check date gets used? • That’s right, the regular check date – which in this case would be 1/1/2008. • Uh oh – constructive receipt is in 2007 (12/31/07 to be exact). • Okay, but so what?

  32. Having the corrective checks dated 1/1/2008 does what? • Calculates September, October, and November wages into 2008 • Double-pays the employee • Gives you a headache when you try to fix it

  33. So how do you get those timesheet corrections to calculate into 2007? • You can’t set the final check period ending date to anything other than December, because then December will calculate into 2008. • Make P050 and related P070 adjustments on the December screens so it all comes on one check.

  34. Okay, one more thing to consider about the Great Date Mate when it comes to timesheet corrections in prior pay periods.

  35. If your employee is NOT terminating in December and will have constructive receipt of their money in 2007, you have the option of setting the Great Date Mate to look at November and date the resulting check (even if it isn’t a final check) in 2007.  Any guesses how? 

  36. Now, why would you use 113007 in the field? • Because OSPA does not allow agencies to add, change, or delete December dates on this screen at any time. • Side note: This screen must contain November dates in order to set the November corrective on the P190 screen. FINAL CHECK ISSUED

  37. One More Thing P190 will show months other than November. However, the only month that is open for correction is November.

  38. There are two reasons that only November can have a corrective set • The Great Date Mate can look at only one pay period at a time • Once November Run 2 has closed, OSPA has to be programmed for the upcoming year with period end dates, pay dates, and cutoff dates. This overrides 2007 for 2008 info. You should put any adjustments for other months on the November screens for a continuing employee, or on December screens for a terminating employee.

  39. At Year End, P370 Check Dates can be Tricky Devils

  40. P370 Sample for 2007 P370 OR9999999,99900,123106,123107,O CALCULATION OF CURRENT PAYOFF 370 EMPLOYEE, JOSEPHINE INCOME TYPE RATE UNITS AMOUNT TAX /RET AMOUNT DEDUCTIONS AMOUNT TOTAL-R T 8766.66 168.00 8766.66 FIT 1331.09 AHNN001 LONG 55.23 AEXCESS O 24.08 SIT 685.00 KDNNAAA KAIS FICA 395.70 KMNNAAA KAIS MEDR 127.46 LCNN UN L 10.00 WCD 2.40 SLYJ001 JUDI STNN001 SHOR 52.60 U3NN020 EMP 1.20 GROSS 8766.66 TX/RT 2541.65 DED 119.03 NET/ACH 6105.98 / .00 CALC YTD? N PRINT CHECK? N CORRECTIVE? N SEPARATION CHECK? N CHECK FEE: _3.98 COMMENT: ________________________________________ ACCT: 105477 5 15010000850232 • When using a check date in 2007, the net pay is $6,105.98.

  41. P370 Sample for 2008 P370 OR9999999,99900,123106,010208,O CALCULATION OF CURRENT PAYOFF 370 EMPLOYEE, JOSEPHINE INCOME TYPE RATE UNITS AMOUNT TAX /RET AMOUNT DEDUCTIONS AMOUNT TOTAL-R T 8766.66 168.00 8766.66 FIT 1331.09 AHNN001 LONG 55.23 AEXCESS O 24.08 SIT 685.00 KDNNAAA KAIS FICA 545.03 KMNNAAA KAIS MEDR 127.47 LCNN UN L 10.00 WCD 2.40 SLYJ001 JUDI STNN001 SHOR 52.60 U3NN020 EMP 1.20 GROSS 8766.66 TX/RT 2690.99 DED 119.03 NET/ACH 5956.64 / .00 CALC YTD? N PRINT CHECK? N CORRECTIVE? N SEPARATION CHECK? N CHECK FEE: _3.98 COMMENT: ________________________________________ ACCT: 105477 5 15010000850232 • When using a check date in 2008, the net pay is $5,956.64. The difference here is the FICA subject wages. 2007 already reached the maximum, but 2008 has not.

  42. P370 Date Summary • Watch check dates. You may get different calculations depending on which year you use. • Manual check date should reflect Constructive Receipt date

  43. Constructive Receipt Summary • Money expected to be available to employee or fringe benefits used in 2007 have Constructive Receipt of 2007. • Money expected to be available to employee or fringe benefits used in 2008 have Constructive Receipt of 2008.

  44. The Great Date Mate Summary • overrides the default check date to this date • For this pay period only: • Can override only one pay period at a time • Allows you to control the Constructive Receipt date printed on a system check FINAL CHECK ISSUED FINAL CHECK PERIOD ENDING

  45. Questions?

  46. Overpayments

  47. When/Why Overpayment Occurs • Late reporting of LWOP • Run 1, employee paid with ‘forecast’ hours • Run 2, after ‘actual’ time worked is entered in the system. The employee’s pay is recomputed for the entire month to determine whether or not there is a difference between ‘forecasted’ and ‘actual’ pay. (Possibly a terminated employee or employee on LWOP.) • Delayed pay-related personnel actions. • Pay-related information (reduced wages, removed lead work, removed work-out-of class, etc.)not entered in the PPDB to meet payroll timelines. • Employee’s termination date not entered in the PPDB

  48. When/Why cont’d • Administrative error • Deductions not entered until after payroll runs. (optional insurances; garnishments, etc.) • Vendor deductions removed between Run 1 and Run 2 (Do not remove vendor amounts after Run 1 on the P070. If you still have possession of vendor check, request a check rewrite to the vendor/employee for correct amounts. If the check has already been released, work with vendor to send check back or repayment of the overpayment to them.

  49. Notification to Employee • An earnings statement that reflects overpayment is generated which serves as notice of the overpayment. (Check stub) • Agency may have standard letters. • OSPS web site: http://tinyurl.com/298s64, slides 63 & 64, gives suggested contents for notification.

  50. Collection of Overpayment • OAM 45.20.00.PO – “Overpayment returns are due and payable on discovery of the overpayment.” • Net pay negatives generally are collected from the following Run 1 payroll. • When they are not collected on the following Run 1, the Agency must reimburse the Joint Payroll Account. • Overpayment example: • The employee on Run1 ‘forecast’ was paid $1,200.00. On Run 2, ‘actual’ hours were entered. The employee’s pay is recomputed for the entire month to determine they had only earned $1,000.00. The Agency is credited with the overpayment of $200.00. • If the employee has or will repay an overpayment by the end of the year (December 31st) in which it occurred and this net pay negative is in November, OSPA will automatically reduce the employee’s December wages. You do not need to make any adjustments.

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