Payroll Year-End Reminders from Business Services:

User Group Meeting 6/14/2016

I.  Reminders

  • With first payroll in July, send contract/documentation for Superintendent’s, CBO’s and Payroll Tech’s salary (email )

ü  Audit check for reasonableness and for any changes in salary

  • Payroll reports should be signed by either the immediate supervisor of the Payroll Tech or by an administrator
  • There are 3 Payrolls to process for June (See “Submitting June 30th Payroll” handout)

ü  June Regular

ü  July Prior Year

ü  August Prior Year

  • All districts should have a balance sheet outside of Escape for balancing payroll
  • Register to Verify Employees’ Social Security Number (see IRS Publication 15 handout)
  • New Hire Reporting to EDD is a requirement (see handout)
  • Allow 1 full week before requesting a stop payment (the speed of the US mail has slowed down)

ü  Always complete a Manual Payroll Request form when requesting a stop payment for a paycheck.

ü  Manual Payroll Form and Procedures on Escape’s Home Page, Forms tab

ü  Mark either “Cancel” (page 1) or “Reissue” (page 2) whichever applies

ü  When a Reissue, indicate whether district will pick up or send AV

ü  When employee picking up, employee must bring photo id

  • Manual Payrolls

ü  When creating manual payroll you may need to override the retirement dates in the Retirement section using the prior month’s Service Begin and Service End Dates

ü  The Contribution Code default is 03 Earnings Adjustment Prior Period (Manual Payroll is similar to Supplemental and is considered current month)

o  As appropriate change Contribution Code to either

§  1 Normal/Current

§  11 Normal/Current Tax Deferred or

§  0 Non-Member

  • Initiate Pay

ü  Before beginning payroll

ü  Again before submitting payroll

  • Always address and account for all errors on the Pay22a Payroll Errors report prior to submitting payroll

ü  Retirement Errors: contact Carol Mahan for STRS and Maria Aguayo for PERS

  • Before submitting payroll run the Retire01, 02 and 09 reports (STRS and PERS qualifying reports)

ü  If the employee qualifies in June:

o  For CalPERS - bring them into membership even if they won’t be paid again until August/September

o  For CalSTRS - do not bring them into membership, instead the monitoring of days and hours starts over July 1

  • Revised Permissive Membership form and Retirement System Election forms (Post on Escape’s Home Page)

ü  Permissive Election form (ES0350) – use any time an employee is performing creditable service, but is excluded from mandatory membership

ü  Retirement System Election form (ES0372) – use when employee is a member of one retirement system and is performing service that mandates membership in another retirement system and wants to elect to remain in their current retirement system.

o  Employee has 60 days from hire date in the new position to make this election

  • Notify CalSTRS Retirees of Earnings Limits and Retirement Incentive Restrictions (see CalSTRS Employer Directives 2016-03 and 2016-06 emailed to districts February 17 and April 18 respectively)

ü  STRS Retirement Earnings Max. for FY2016/2017: $41,732

ü  STRS Golden Handshakes retirees cannot return to work in any job capacity with the school district or COE that granted the Retirement Incentive within 5 years of the retirement date.

  • CalSTRS RWL Applications:

ü  Send to Carol Mahan ASAP

  • Email the helpdesk and cc Carol Mahan your FY2016/2017 certificated contract days with a list of addons that need updating
  • New Employee’s CalSTRS Retirement Verification and New Employee’s CalPERS Retirement Verification (see Escape’s Home Page, Forms tab)

ü  Steps to take prior to hiring retiree and prior to paying the employee

  • CalPERS – Salary Schedules (see CalPERS Circular Letters 200-056-11 and 200-050-12)

ü  CalPERS does not accept employment agreements in-lieu of salary schedules

ü  CCR 570.5 has specific requirements for a Publicly Available Pay Schedule that applies to all employers reporting compensation for CalPERS

  • PERS Change form for Separation when an employee ends employment for any reason (see CalPERS Circular Letter 200-015-16)
  • Sign up for CalPERS E-bulletins (see handout)
  • Run Pay31 W2 Errors Report after each payroll to address W2 errors now instead of later

ü  Can correct now Box 12 Out of Range Errors

ü  Can correct now Address Errors

ü  Monitor FIT, SIT, OASDI and Medicare Out of Range and Calculation Errors

o  Work with Erin Graves to determine if errors can be corrected now or if they can only be corrected at W2 calendar year end.