Financial

Services
Workshop
Payroll Breakout
May16, 2014

Introductions
Payroll Director

Letty J. Lalu

3284245

Payroll Accountant

Marci Copeland 3280445

copelandm@ecu.ed
u

International Tax
Specialist

Barbara Wells

7374792

hanlonb@ecu.edu

Lead Payroll Technician

Tia Freeman

3284161

freemand@ecu.edu

Payroll Specialist

Cynthia
Andrews

3285462

andrewsc@ecu.edu

Payroll Specialist

Cynthia Price

3285461

pricecy@ecu.edu

Payroll Clerk

Brenda Reese

3286954

reeseb@ecu.edu

March 12, 2014

lalul@ecu.edu

Primary Areas of Responsibility

Letty

Employee overpayments and collection, taxes, W-2s,

system integration and reporting, semi-monthly (SM)
payroll processing

Marci

Manual payroll cycles and adjustments, International tax

reporting-1042s, audit, Kronos implementation

Barbara

International/non-resident employee and student tax

Tia

Temp and Student (TS) payroll processing, Web-time, Mass

time Entry (MTE) and Kronos support

Cynthia A. LOA and termination calculations, pay adjustment

calculations, Core Banking, tax payments (EFTPS) and
wires
Cynthia P.

Web-time, Mass time Entry (MTE) and Kronos support, Dual

employment, Holiday pay verification, overpayment
administration

Brenda

Excess wage verification, Direct deposit processing, webtime support

Rosie

March 12,
2014 office support, W-2 mailing
W-4 and NC-4 processing,
front

Whats New?
NC

House Bill 998

Effective 1-1-2014 every ECU employee required to complete a NEW

NC-4 State Employees Withholding Allowance Certificate
Reduces NC income tax to flat 5.8% rate
Increases standard deduction
Eliminates personal exemptions
Eliminates many other deductions and tax credits
Self

Service Banner:

Employees can now view, submit and update

W-4 - Federal Employees Withholding Allowance Certificate
NC-4 - State Employees Withholding Allowance Certificate

NC

House Bill 4:

Requires ECU to fund a reserve account with the NC Division of

Employment Security to fund future unemployment claims
1% of wages assessment Q3,Q4-2013 and Q1,Q2-2014
March 12, 2014

Whats new?
W-2

Reissue Request

Available

under Forms on ECU Payroll web

site
Paper

checks are only available for

pickup on the payroll date from 8:00
to 1:00 p.m.

Mailed

on pay date afternoon mail

New

Template: Request to Reduce Pay

Updated Payroll Web page with
instruction documents, FAQ
March 12, 2014

Whats new?
120 Reade Street
Building 133
Financial Services
Greenville, NC 27858

Southwest

corner of Reade and 2nd

Street
No change to:
Mail Stop: 226
Phone: 252-328-6955
Fax:
252-328-0910

March 12, 2014

Whats new?
payrolltax@ecu.edu

Questions on W-4, NC-4, W-2

Questions regarding payroll tax
withholding Federal, State, Social
Security
internationaltax@ecu.edu

Questions regarding temporary visa

holders, green card holders, 1042s

March 12, 2014

What Payroll does

Review

and input W-4, NC-4 and Direct

deposit forms
Upload time and wages submitted through
Web-time, MTE and Kronos into Banner
Upload deductions through automated
interfaces
Manually key adjustments submitted from
timekeepers/departments
Calculate and key exceptions for
terminations, LOA, returns from LOA, job
changes and other non-standard pay
situations
March 12, 2014

What Payroll does

Calculate

and key payroll

reductions for overpayments
Work exception reports generated
throughout payroll process
FOAP
Wages recorded in Kronos, Webtime,
MTE not loading to Banner
Variances this semi to last
Excess wages verification
Tax compliance review
March 12, 2014

What Payroll does

Reconcile

tax liability accounts

Ensure timely and accurate
submission of Federal and State
taxes and reports
Issue annual W2-Employee Wage and
Tax Statements and 1042-Foreign
Persons U.S. Source Income
Manage failed Direct Deposits
Collection efforts for employees
overpaid through payroll
March 12, 2014

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What Payroll doesnt do

Change

names or SS#s in Banner-HR

Input or change deductions-other than
taxes-HR
Manage liens, garnishments-HR
Manage or view leave records-Dept
Determine best way for processing
payment for unusual pay circumstanceIPS
Validate dates on EPAFs- IPS/Departments
Act as approver on EPAFs FYI only
March 12, 2014

11

What Payroll doesnt do

Unemployment

claims- Employee

Relations
Reconcile or submit payment to other
vendors (e.g. Insurance, wage
garnishments, retirement programs)-IPS
Reconcile payroll expense to the ledger
Review or reconcile Payroll History reports
Review payroll or labor suspense
accounts
Review POSMAN reports
March 12, 2014

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What Payroll doesnt do

Employment Verfication
To Obtain Proof of Employment Only the Verifier should follow these 3 steps:
1) Please login to www.verifyjobhistory.com to register.
2) You will need the following information:
a. ECU Employer Code: 1252
b. The persons Employee ID & Last Name OR the persons First Name, Middle Initial, Last Name &
Date of Birth.

3) Pay for the transaction by credit card.

To Obtain Proof of Employment and Income:
1) In addition to the steps 1, 2 & 3 above, the employee needs to provide an authorization
code to access their information. (Employees generate an authorization code by visiting
www.verifyjobhistory.com or calling 1-800-281-5260).
Special Instructions for Social Service Agencies
1) Please login to www.verifyjobhistory.com to register.
2) Once we qualify your agency, you may begin to receive results online or by fax.
For additional questions or more information regarding the benefits of membership, please
call:
JobTrax Client Service Center
Monday Friday; 8:00 am 5:00 pm (EST)
1-800-281-5260 or 1-440-247-1600

March 12, 2014

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Web and Mass Time Entry

Note: This is
APPROVERS
deadlineNOT
students!
March 12, 2014

14

Payroll Exception/Adjustments
Cut-off

March 18th, but realize on March

21st there is a changenow what?

Contact Payroll office

Request Adjustment form
Complete with signatures
Return to Payroll BY DUE DATE for manual
keying
Follow up to ensure hours/pay was included
in employees pay
Do NOT re-submit hours/pay in subsequent
payroll through MTE
March 12, 2014

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Payroll Exception/Adjustments
Payroll

typically has 5-6 days after

WTE/MTE closes to finalize payroll.
Holidays occasionally reduce timeline to just 3
days

Payroll

must be finalized 3 working days

prior to Pay Date
Some changes can be made between
WebTime, MTE deadlines and Payroll
finalization dates.
Late notice terminations/separations
Late notice LOA
Data entry correction on MTE
March 12, 2014

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Manual checks
Cannot

be issued if there is no active job

for the employee
Should only be requested if waiting for next
semi-monthly pay causes the employee a
financial hardship
Requires payroll to run the entire payroll
process-isnt as simple as writing a check
Payroll may deny request for manual check.
Cannot be issued as a direct deposit
Will be available for pick up from 10 a.m. to
1:00 p.m. exactly one week following the
regular semi-monthly pay day
March 12, 2014

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Manual checks
Contact

payroll office
Request Manual check form
Complete with signatures
Return to Payroll by DUE DATE
Do NOT include hours in next
semis MTE.

March 12, 2014

18

Self Service Banner

Employees

can view history, current

status and # of allowances claimed
and can now MAKE CHANGES TO:
NC-4 effective December 9, 2013
Still have approximately 2,000 employees
who have not submitted new form or verified
changes

W-4 effective January 9, 2014

If claiming EXEMPT must complete
paper form
Using SSB at new employee orientation
March 12, 2014

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Paper Form-W-4

March 12, 2014

20

Paper Form NC-4

If an employee is claiming EXEMPT,

Line 1 should be left blank.
Otherwise, Line 1 MUST be completed.
March 12, 2014

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Claiming EXEMPT
Must

meet BOTH conditions

1) Last year had a right to refund
ALL federal income tax withheld
because I had NO tax liability
AND 2) This year I expect a refund of
ALL federal income tax withheld
because I expect to have NO tax
liability.
Must be renewed annually and
resubmitted by 15 February
March 12, 2014

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Paper Forms
Default

is S0-Highest tax rate

Encourage employees to utilize the
worksheet and keep copy for their records
Dont provide advice on number of
allowances or status
Must use 2014 forms
Payroll will reject paper forms that are not
completed correctly or have conflicting
information
Status remains at Single Zero (or last W-4,NC-4
form on file)until corrected form is submitted to
Payroll office
March 12, 2014

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When to file a new W-4

REQUIRED:

Name change (after receiving SS card)

Divorce, spouse takes a job,
dependent moves out of house
Realize you are no longer EXEMPT.
OPTIONAL:

Birth of child or adoption, spouse quits

their job
Realize you are EXEMPT.
March 12, 2014

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Federal Tax Table-2014

Standard

exemption allowance
for 2014 is $164.60 times
number of allowances
Banner uses this annualized tax
table

March 12, 2014

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Supplemental Pay-2014
IRS

supplemental tax rate is 25% regardless

of filing status or allowances selected on W-4
NC-4 supplemental tax rate is 5.8%
Supplemental Wages

Dual Employment
Bonus and Incentives
Settlement Agreements
Awards
Vacation Payout
Severance
Longevity
Supplemental Taxable Benefits
March 12, 2014

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NC State Tax Table-2014

March 12, 2014

27

Social Security Tax-2014

FIC-FICA

OASDI

Old-Age, Survivors, and Disability Insurance

Employee: 6.2% Employer: 6.2%
Maximum taxable earnings for 2014 is
$117,000.
FIM-FICA

Medicare

Medicare hospital insurance part of Social

Security
Employee:1.45%
Employer: 1.45%
March 12, 2014

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Social Security Tax-2014

FIH-Additional

Medicare

Tax
New in 2013-continued in
2014
Employee: .09% of wages
in excess of $200,000/yr.
Employer: none
March 12, 2014

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Fed and State Pre-Tax Deductions

All

deductions that say Pre-Tax

401K, 403b (not Roth) and 457
contributions
Flex dependent care spending,
Flex medical care spending
Health insurance premiums
TSERS state retirement, Fidelity,
Lincoln, TIAA and VALIC and
undecided Employee
contributions
March 12, 2014

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Social Security :Pre-Tax Deductions

All

deductions that say Pre-Tax

Flex dependent care spending,
Flex medical care spending
Health insurance premiums

March 12, 2014

31

Student FIC/FIM/FIH Exemption

Students

working and enrolled at

ECU may be temporarily exempt
from SS taxes.
Based on # of hours enrolled
Evaluated each pay period
Enrollment
Status

Minimum # of
hours

Graduate

Medical

Undergraduate

Dental

10
March 12, 2014

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International Employees
Employees

on a temporary visa are required to visit

the payroll office annually to do a tax assessment to
determine taxation and potential eligibility for tax
treaty benefits.

Employees

who do not meet the substantial

presence test for resident alien, can only claim one
allowance for federal and zero allowance for state
withholding, and will be taxed at the higher
nonresident alien rate (some exceptions apply for
Canada, Mexico, Korea, and India).

Green

card holders and resident aliens for tax

purposes are taxed the same as US citizen.
March 12, 2014

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International Employees
Individuals

on temporary visa being taxed

as a nonresident alien may be exempt from
FICA tax depending on the visa type (F-1, J1, M-1, Q-1) used to enter the United States
and compliance with the terms of that visa.

Individuals

on temporary visa taxed as a

resident alien may be exempt from FICA
only if they meet the student FICA
exemption which is the same for a US
citizen that is based on enrollment/thesis.
March 12, 2014

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Kronos update
Who?

Every ECU employee who earns or is granted leave and/or

tracks time
What?

Time, attendance and leave tracking system

Eliminates paper/excel leave records
When?

Steering committee formed

Rebuild implementation team
Upgrade to and train on most recent version
Developing phasing and implementation plan

Why?

Improve policy and FLSA compliance

Improve productivity and manual timekeeping
Eliminate paper leave records
March 12, 2014

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Why 86.67 hours?

52

weeks X 40 hours week =

2080 hrs
2080 hrs / 24 pays equals =
86.67 hrs per pay
Pay periods range from 9 days to
12 days.
Wage adjustments calculated
based on # of days
worked/missed in pay period vs.
8 hours day times # of days
March 12, 2014

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Wage adjustment
calculation
John

Doe retired on 22 February

and earns $1250 per pay
Final salary calculated as 5/9 X
$1250

March 12, 2014

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Converting Minutes to Decimals

Banner

deals with minutes as a decimal

MTEs should be reported in decimals
# of minutes/60 = decimal
15/60 = .25

30/60 = .50

45/60 = .75

Examples:

6 hours & 30 minutes shown as 6:30 = 6.50 hrs

5 hours & 15 minutes shown as 5:15 = 5.25 hrs
4 hours & 10 minutes shown as 4:10 = 4.17 hrs

March 12, 2014

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Conversion Chart

March 12, 2014

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Leave Reporting
Payroll

does not have access to

leave records
If employees miss work and have
no leave on the books ,
timekeepers are RESPONSIBLE for
reporting hours missed to Payroll
so that pay can be adjusted
appropriately.

March 12, 2014

40

Request to Reduce Pay

REQUEST TO REDUCE PAY
This template should be used as an official request to the Payroll Office to reduce the salaried pay for an
employee who has been absent from work and has no accumulated leave to offset their absence. This
template may also be used for those employees who must have their pay reduced during the University
Winter Break because they have insufficient leave time to cover the absence or for those employees
who have the leave, but choose to have their pay reduced rather than take available leave.
This template is NOT a substitute for the Official Leave of Absence (LOA) Form available on the
HR/Benefits website which should be used for all Leave of Absences not covered by the examples
provided above. http://www.ecu.edu/cs-admin/HumanResources/Benefits.cfm
This template should be completed by the Leave Clerk.
Send an e-mail request to lalul@ecu.edu and andrewsc@ecu.edu with the subject line PAY
REDUCTION REQUEST:
EMPLOYEE NAME and BANNER ID#.
COMPLETED BY:
Please make the following adjustment to the semi-monthly employee per the request detailed below:
EMPLOYEE NAME:
BANNER ID#:
DATE
# of HOURS
(Detail each date and the # of hours to adjust per day separately. Insert more lines if necessary)

TOTAL # OF HOURS:

COMMENT:
(Provide any additional information you feel may be helpful).

DEDUCT FROM:
____PP24 (if for Winter Break)

____NEXT PAY

____ PP ____

(If you wish to deduct the pay over more than one pay period, please contact Payroll @ 252-328-4245)

LEAVE CLERK TELEPHONE #:

March 12, 2014

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FMLA and Leave-including Intermittent

leave or reduced work schedule
Must

submit FMLA application

and medical certification to the
Benefits Office 30 days-2 weeks
from start date of leave.
FMLA is UNPAID leavemust
use vacation, sick, bonus, comp
in order to remain in active pay
status.

March 12, 2014

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FMLA and Leave-including

Intermittent leave or reduced work
schedule
Employees

on FMLA who exhaust

leave or with no available leave
should be placed on Leave Without
Pay using a Leave of Absence form.
Must make arrangements with
Benefits Office regarding benefits
while on LWOP
Should be closely coordinated with
Payroll to ensure appropriate pay
and avoid overpayment.
March 12, 2014

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Wage and hour laws

Non-exempt

covered by Federal

FLSA.
Overtime for hours worked in
excess of 40 for single workweek.
Non-exempt SPA employees paid
salaried wages, but must be
compensated (comp time or pay
depending on departmental policy)
for hours worked over 40 in single
workweek
March 12, 2014

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Wage and hour laws

March 12, 2014

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Week 1

March 12, 2014

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Week 2

March 12, 2014

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Week 3

March 12, 2014

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Week 4
Assuming

no hours worked on Saturday

3/16/13

March 12, 2014

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Adverse Weather
If

Adverse Weather is usedmust use

vacation leave or must be made up
within 12 months of date taken
When making up AW employee cannot
work more than 40 hoursmust make
up during a week employee is out sick,
takes a vacation day, holiday-Must
repay using straight time hours
Must have system for keeping up with
the AW weather leave taken and made
up
March 12, 2014

50

University Closed
Employees

paid for this timecoded as

UC on leave cards/time sheets
If employee is asked to come in, they
will be paid for the hours they worked
and they will get hour for hour to be
used later
If an employee chooses to come to work,
they will not be paid and will not receive
hour for hour time off
Exception request must be approved by
HR
March 12, 2014

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How can we reduce overpayments?

Complete

Leave of Absence forms timelyWC, FMLA, etc.

Complete Termination forms timely
Keep leave records up to date
Notify Payroll of short notice terminations
immediately
Even if leave records are not up to date and
require additional review/signature
Notify

Payroll of employees in negative

leave situations or work missed with no
leave on the books
March 12, 2014

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How can we reduce overpayments?

File

EPAFs timely to end jobs,

stipends, etc.
Ensure employees with jobs set
up in advance actually begin
assignments on target date
Ensure EPAF dates and pay
factors are correct
Notify payroll immediately of
death in service
March 12, 2014

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Collection Process

First

Notice: Employee notification of

overpayment

If current employee-payroll reduction

If terminated-begin collection process

30 days: Second Notice10% penalty

and 5%

annual interest

60 days: Final Notice

90 days: submission to NC Attorney Generals

office

90 days: submission to NC Setoff Debt

Collection Program (SODCA) -taxpayer income
tax refunds

120 days: submission to Collection agency

March 12, 2014

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Collection Process
If

collected in same year,

employee pays back net wages

If

collected in subsequent year,

employee pays back gross wages
Job FOAP credited when payment
is received. (May be closed FOAP)

March 12, 2014

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Resources: Payroll web

site
Staff

listing
Payroll Calendars
SSB Instructions
FAQs
Forms

March 12, 2014

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UNC-FIT-Payroll KPI-You can help!

#

of payroll adjustments (requests for manual

checks)
# of paper checks vs. direct deposit
DD is mandatorybut the # of paper check being
issued is on the rise!
#

of new or rehired employees not paid in

current month-late EPAFS
Dollar value of overpayments to employees
Over last three (3) quarters:
90 instances of administrative errors (e.g. late, terminations,
late LOAs, late EPAF and EPAF errors, etc) resulting in
overpayment of approximately $130K
155 instances of reduction of pay due to negative leave
resulting in overpayments of approximately $60K
March 12, 2014

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What can you do to help?

Encourage

employees who have a name

change to get a new SS card and
present to HR
Include cover sheet with submissions to
payroll letting us know sender and
contact information
Encourage use of SSB for:

W-2 consent
Address change
NC-4, W-4 review and changes
Paystub review
March 12, 2014

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What can you do to help?

Use

the Comment section of

EPAFS, termination forms and
LOA forms to add clarity.
Submit EPAFs timely and seek
clarification if you are unsure of
the dates to use.

March 12, 2014

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Discussion Questions
How

do you ensure that your payroll expense $$

are correct-additions/deletions from semimonthly payroll
Are there tools/reports that you think would be
beneficial to help you manage payroll
transactions? Who uses them?
What could payroll do to improve our customer
service?
Are there additional resources youd like to see
on the Payroll web site to help you with your
job?
Why does Payroll office receive W-4, NC-4 for
individuals who never have/get jobs?
March 12, 2014

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What can WE do to help?

March 12, 2014

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SUPPLEMENTAL

SLIDES

March 12, 2014

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International Employees

March 12, 2014

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International Employees

March 12, 2014

64

International Employees

March 12, 2014

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International Employees

March 12, 2014

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Mass Time Entry (MTE)

Used

to enter non-regular pay

Accessed through One-Stop
Employee Pool
Submitter/Approver/Proxy
Some restrictions to Earnings
codes

March 12, 2014

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Banner Security Access

for Webtime, MTE
Step 1:
One Stop > Tools > Employee >
Reporting Structure
Make certain your supervisor has
claimed you.
If

not, have supervisor go to

Reporting Structure and key in
your Banner ID
March 12, 2014

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Banner Security Access

for Webtime, MTE
Step 2: Accept your supervisor
One Stop > Tools > Employee >
Reporting Structure
Click on Approve

March 12, 2014

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Banner Security Access

for Webtime, MTE
Step 3
One Stop > Tools > Banner >
Banner Security Request >
Request Security > Human
Resources

March 12, 2014

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Banner Security Access

March 12, 2014

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Special Earnings
Paid

on First Semi:

Longevity
Extra pay for OT, Shift, Beeper and Longevity
SOM MTE
Paid

on Second Semi:

E/C 909-NCFlex Life Insurance Imputed Income,

calculated on coverage over $50K based on
employees age and amount of coverage.
Paid

on Both Semis:

Non-cash
Car/Phone Allowances
Taxable SFB Med Direct Bill
March 12, 2014

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Pay Information

March 12, 2014

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