HR/Payroll Conference Call

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HR/Payroll Conference Call

• September 16, 2014

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Agenda

• PY Updates
• Processing Employee Tax Withholding
• HR Updates
• Telephone Number Updates in IT0105
• Revised Dual Employment Timesheet
• LI Reminders
• BOBJ Announcement
• Time Updates
• SB744 Bonus Leave
• Adverse Weather Liabilities
• Benefits Updates
• Annual Enrollment
• Tricare Supplement Plan
• Notice of Creditable Coverage

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Processing Employee Tax Withholding

• General Information
• Transactions are keyed using PA30 and Infotype
  0210 (Withholding Info W4/W5 US)
• Employees should use ESS to key withholding
  elections except where
• Employee does not have ESS access
• Employee is claiming Exempt from Tax
  Withholding status (ESS will not process
  exemptions)
• Forms used to process tax withholding on behalf
  of employees
• Form W-4 Used for federal tax withholding
• Form NC-4EZ Used for state tax withholding
• Form NC-4 Also used for state tax withholding
  but does not provide the option to claim exempt
  status

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Processing Employee Tax Withholding(continued)

• General Information (continued)
• Withholding entries should begin with the
  following start dates
• Monthly employees Begin on the 1st day of the
  month
• Biweekly employees Begin on the 1st day of the
  pay period
• Exceptions include newly hired or reinstated
  employees

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Processing Employee Tax Withholding(continued)

• Withholding Form Requirements
• Withholding forms are subject to audit by the IRS
  and NCDOR, and penalties may be assessed for
  missing documents. To remain compliant with
  state federal laws
• NEVER accept a form that is NOT CURRENT. (W-4
  forms have the calendar year in the top left
  corner of the form.)
• NEVER process a form that is NOT SIGNED or DATED.
• NEVER accept an email authorization in lieu of an
  official form.
• NEVER process withholdings based on a phone call
  or other verbal authorization.
• ALWAYS obtain a current and properly executed
  form PRIOR to keying any withholding elections
  for an employee.
• Retain all processed forms for at least four (4)
  years beyond the employees separation date.

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Processing Employee Tax Withholding(continued)

• Claiming a Status of Exempt from Tax Withholding
• An employee may elect to claim a status of exempt
  from tax withholding.
• Employees cannot key a status of exempt from tax
  withholding through ESS, so all exemptions must
  be processed by the agency HR/Payroll offices.
• HR/Payroll offices MUST have the following
  properly executed forms from employees prior to
  keying an exemption
• Form W-4 for federal tax exemptions
• Form NC-4EZ for state tax exemptions
• Exemptions may be submitted for any range of pay
  periods within a year (e.g., exemption for a
  single month.)
• All exemptions expire after February 15 of the
  next calendar year and employees must submit new
  forms to renew the exemption. (Ignore the system
  prompt to make the end date February 17.)

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Processing Employee Tax Withholding(continued)

• Military Spouse Exemption from North Carolina Tax
  Withholding
• The documentation required to process an
  employees exemption based on the Military
  Spouses Residency Relief Act of 2009 is more
  extensive. To claim a military spouse exemption
  from NC tax withholding, an employee MUST submit
  the following documentation
• Form NC-4EZ Employees Withholding Allowance
  Certificate (Line 4 of the form must be
  completed.)
• Copy of the spousal military identification card
• Copy of the service members most recent leave
  and earnings statement
• The certificate expires effective February 15 of
  the next calendar year.

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Processing Employee Tax Withholding(continued)

• Processing Exemptions from Tax Withholding
• To avoid errors in processing exemptions, agency
  HR/Payroll staff should adhere to the following
• Use the COPY function to generate a new record,
  NOT the create option.
• Keeps dates consecutive with no gaps (Pay periods
  with gaps will result in withholding at the
  higher rate of Single with No Allowances.)
• Programmatically generates a future dated
  transaction by replicating the previous
  non-exempt tax record
• Allows HR/Payroll staff to modify the record
  without rekeying other data
• NEVER key an End Date that is later than
  February 15 of the next calendar year. (DO NOT
  key 12/31/9999 as the end date!)
• Key the Tax Exempt Indicator as R Exempt,
  reportable.
• NEVER select Y Exempt, not reportable. This
  option excludes the employees wages from their
  W-2 and will require correction at year end by
  BEST Shared Services.

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Processing Employee Tax Withholding(continued)

• Resources - More Information is available for the
  following at the listed website addresses
• 2014 Federal Form W-4
• http//www.irs.gov/pub/irs-pdf/fw4.pdf
• 2014 North Carolina Form NC-4EZ
• http//www.dornc.com/downloads/nc4ez.pdf
• 2014 North Carolina Form NC-4
• http//www.dornc.com/downloads/nc4.pdf
• Frequently Asked Questions on the Military
  Spouses Residency Relief Act of 2009
• http//www.dornc.com/taxes/wh_tax/faq.htmlspouses
  
• Instructions for processing tax exempt
  withholding transactions
• http//www.osc.nc.gov/training/osctd/help/Payroll/
  Job20Aids/ProcessingTaxExemptWithholding.pdf

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IT0105 Work Telephone Number Update

• Work Telephone Number formatting was cleaned up
  in IT0105 last month
• Acceptable format 919-707-0707
• A First Telephone Number at Work Bulletin has
  been added to the BEACON Training Help website in
  the Personnel Administration gt Bulletins folder
• Purpose
• To show how the infotype validates telephone
  numbers entered in the system
• Displays an error message if the telephone number
  is not entered in the correct format

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IT0105 Work Telephone Number Update(continued)
919.707.0587
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IT0105 Work Telephone Number Update(continued)

• Infotype 0105 is what is used to compile the
  State Employee Directory
• Inaccurate numbers can be corrected at the Agency
  level using
• PA30 / Infotype 105 Subtype 0020
• A form is also available for mass work telephone
  number updates on the BEACON/BEST website link
  http//www.osc.nc.gov/BEST/support/forms_pa.html

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Revised Dual Employment Timesheet

• The Dual Employment Timesheet has been revised to
  allow time entries for up to four weeks instead
  of two. The additional weeks will eliminate the
  need for agencies to send in multiple timesheets
  for the same employee(s) each month. Reducing the
  number of timesheets also makes the dual
  employment process between BEST OM/PA and BEST
  Payroll more efficient. The new timesheet has
  been loaded to our website
• http//www.osc.nc.gov/BEST/support/forms_pa.html
• All timesheets must be received by the close of
  business on the 15th of each month to ensure
  payment in that months payroll. If timesheets
  are received after the 15th, BEST cannot
  guarantee compensation for the current month.
• Refer to the March 19, 2013 BEST HR/Payroll
  Conference Call for any Dual Employment
  Processing Questions
• https//www.youtube.com/watch?vlratGTkegQo

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LI Reminders

• All action deletions related to the 2014
  Legislative Increase must continue to be routed
  to OSHR for approval via spreadsheet before
  submitting a ticket to BEST. Once you receive
  OSHR approval, forward the approval email and
  spreadsheet of actions to BEST (only one ticket
  per spreadsheet, this is an exception to normal
  procedures). BEST will notify you when the OSHR
  approved actions are deleted. Any LI related
  deletion requests not on the spreadsheet must be
  sent to OSHR for approval before BEST will
  delete.
• Per the memo from Pam Bowling/OSHR sent on August
  25, 2014, agencies may process the new
  retroactive replacement actions previously
  approved via the spreadsheet without routing the
  PCR(s) to OSHR for approval. This blanket
  approval is valid for September payroll only, and
  is not valid after September payroll
  finalization. Comments on these actions must
  indicate on the PCR and IT0000 that the action is
  being processed retroactively based on a blanket
  approval from OSHR to process the (deleted
  action) effective (date) due to LI.
• After September payroll finalization, the normal
  BEACON/OSHR processing agreement will resume.

15
SAP Business Objects Announcement

• BEACON introduced a new Enterprise Reporting
  System for HR/Payroll data to HR Directors on
  9/15/14 SAP Business Objects (BOBJ)
• The system will provide improvements to the
  current reporting architecture resulting in a
  more efficient means of providing knowledge
  oversight to HR/Payroll processes
• This new reporting system will eventually replace
  the existing Business Intelligence system (BI
  Reports)
• The system will be introduced in phases

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SAP Business Objects Announcement(continued)

• Phase 1 expected to begin 12/8/14
• Pilot will feature a small selection of highly
  used BI reports
• Agency HR Directors will be asked to provide 2
  pilot participants familiar with BI reporting to
  be trained on the new system provide feedback
• Phase 2 Go-Live expected to begin 2nd quarter
  of 2015
• The system will be made available to all existing
  BI users
• The initial number of reports will be limited to
  focus on getting everyone trained on the new
  system capabilities
• Final Phase Migration of all existing reports
  development of new products

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SB744 - Bonus Leave

• Accrual of Bonus Leave granted by SB744 has been
  implemented in BEACON.
• All employees eligible for the leave as of
  9/1/2014 should now have the entitlement in the
  Bonus Leave quota (Q50).
• The leave was added to the current Bonus Leave
  quota bucket for employees with balances
  remaining from the prior Bonus Leave awards in
  2002, 2003, and 2005.
• For all other employees, the new Bonus Leave
  quota was generated with a validity date of
  9/1/2014.
• The Bonus Leave is part of the Approved Leave
  hierarchy.
• This leave does not expire and can be paid upon
  separation.
• Maintenance of the Bonus Leave quota (Q50) via
  IT2013 is now only available through BEST.

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SB744 - Bonus Leave

• Maintenance of the Bonus Leave quota (Q50) via
  IT2013 is now only available through BEST.
• Similar to the Special Leave award last year, all
  active permanent EEs were granted 40 hours of
  Bonus Leave or the appropriate proration on
  9/1/2014. If an EE is on LWOP as of 9/1/2014,
  the EE should not be exhausting any leave and can
  only use the awarded amount once reinstated.
  Just as before the recent award of Bonus Leave,
  reports are available to help agencies monitor
  EEs that are on LWOP.
• BI Report B0185 LOA Action with Absence
• PT_BAL00 to monitor T50U/T50R for EEs that
  should not be using leave

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Adverse Weather Liabilities

• Looking ahead to 2015, there are thousands of AW
  liabilities that will expire. Please be
  proactive and run B0210 to see which EEs have
  liabilities in the next 12 months
• January 2015 4,155 EEs totaling 41,891 hours
• February 2015 6,565 EEs totaling 80,550 hours
• March 2015 3,247 EEs totaling 19,459 hours
• Link to Job Aid
• http//www.osc.nc.gov/training/osctd/help/Time20M
  anagement/Job20Aids/RecoveringAdverseWeatherOwed.
  pdf

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2014 Annual Enrollment 2015 Plan Year

• Annual Enrollment will be held Oct 1 Oct 31,
  2014 for
• State Health Plan
• NC Flex Plans
• Enrollment choices for benefits will be
  effective
• 1/1/15 12/31/15
• Employees can
• Switch between Plans
• Add or Remove Dependents
• Cancel Plans

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2014 Annual Enrollment 2015 Plan YearState
Health Plan

• If employees are satisfied with their current
  plan, they do not need to re-enroll
• HOWEVER, if enrolled in the 80/20 plan or CDHP
  employees wish to maintain or lower their
  premium, employees will need to complete the
  wellness premium credits as required below
• Employees do NOT have to re-indicate a PCP if one
  has already been chosen
• Employees WILL BE REQUIRED to complete the
  Tobacco Attestation again
• Employees WILL BE REQUIRED to complete the Health
  Assessment again, IF completed prior to 11/1/13

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2014 Annual Enrollment 2015 Plan YearNC Flex

• If employees are satisfied with their current
  plans, they do not need to re-enroll most plans
  will automatically renew
• EXCEPTIONS
• Employees MUST RE-ENROLL in the Flexible Spending
  Accounts each year
• Health Care FSA
• Dependent Day Care FSA
• Be sure employees indicate an annual/yearly
  amount
• Employees wishing to cancel an NC Flex plan, MUST
  log on during annual enrollment to cancel and
  remove the plan

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Annual Enrollment Process

• State Health Plan or NC Flex enrollments must be
  completed online through BEACONS Employee Self
  Service (ESS) portal at https//mybeacon.nc.gov
• For instructions to guide you through the
  electronic enrollment process, click the Read
  before Beginning Online Enrollment link
• BEST Shared Services Center will help employees
  with ESS enrollments, but will NOT provide
  benefit counseling
• Employees will be referred back to the Agency HBR
  for benefit counseling

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Annual Enrollment Phone Enrollments

• Only for non-ESS employee users
• Need to call Active Health to complete the Health
  Assessment (Ph 800-817-7044)
• Must have PCP information available
• Must know Spouses SSN
• Must know what plans they want to enroll in.
  Benefit counseling will not be provided to the
  employee
• Calls are recorded to validate enrollment
  information
• BEST will provide HBR a list of phone enrollees
  so benefit statements can be printed

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New Hire Enrollments

• Employee must be in the BEACON system
• New Hires on or after October 1st
• Employee will complete two (2) enrollments
• Complete the New Hire Enrollment FIRST -The New
  Hire link is for enrollments as a new hire
  through the end of the current 2014 year
  (12/31/14) this online enrollment needs to be
  completed within 30 days of the date of hire.
• After the new hire enrollment is completed, the
  Annual Enrollment link will generate the
  following Monday the employee will need to
  complete the 2015 enrollment

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Qualifying Events (QE)

• QE on or after October 1st
• For all qualifying events in October
• The QE enrollment change will delete the
  employees 2015 enrollment.
• After the QE enrollment is completed, the
  following Monday the employee will need to
  complete or recomplete their 2015 annual
  enrollment.
• NCFlex Only the plans that were changed during
  the QE enrollment will need to be recompleted.
• SHP For any SHP QE changes, the employee will
  need to recomplete the wellness initiatives to
  maintain or lower the premiums for the 80/20 or
  CDHP plans.
• For all qualifying events in November
• BEACON will reenroll the employee back in the
  Health Plan as of 1/1/2015.
• Note Return from Leave will follow this process.

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Employees on LOA during Annual Enrollment

• Employees on LOA with ESS access still need to go
  online to make enrollment changes
• Employees without ESS access can call BEST to
  process a phone enrollment
• Agencies need to monitor employees on LOA that
  are still eligible for state sponsored insurance
• LOA for Short Term Disability with gt 5 yrs of
  service
• LOA for Injury Leave Workers Comp
• LOA for Family Medical Leave
• These employees on 80/20 or CDHP will need to
  complete their Tobacco Attestation Health
  Assessments (done prior to 11/1/13) AGAIN to
  maintain the wellness initiative premium rates
• Agencies need to monitor employees separated for
  Pay Continuation that are still eligible for
  state sponsored insurance as outlined above

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ESS Enrollment Screens
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ESS Enrollment
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ESS Enrollment
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ESS Enrollment
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ESS Enrollment
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ESS Enrollment
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ESS Enrollment
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ESS Enrollment
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ESS Enrollment

• Last Steps
• Review Enrollment icon
• Save icon
• Encourage your employees to Print New Plan
  Selections for their Benefits Confirmation
  statement as proof of their enrollment changes.

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How to be proactive for Annual Enrollment!

• Employee Responsibilities
• Have employees log into their NCID to ensure
  access contact the NCID Administrator to reset
  if needed
• Have employees update/verify their address in ESS
• Have employees enter a personal email for
  benefits updates in their ESS Benefits Medical
  Information link
• Have employees complete the Health Assessment
  now, prior to 10/1/14
• Have employees select or update their PCP now
• Have employees update or verify dependent data

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How to be proactive for Annual Enrollment!

• Agency HBR Responsibilities
• Run Benefits BI Report B0011 Participating
  Employees
• Get a list of EEs enrolled in the FSAs to remind
  them to re-enroll
• Get a list of EEs enrolled in the 80/20 CDHP
  plans to remind them to re-complete the wellness
  initiatives
• Run PA BI Report in Employee Details Actions
  folder for B0080 Last Employee Action in Effect
  as of Selected Date
• Get a list of employees on LOA or Separated Pay
  Continuation
• Sort by Action Type Action Reason

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TriCare Supplement Plan

• TriCare Supplement Plan is a new NCFlex plan for
  eligible retired military state employees
• It was the goal to have this plan available for
  enrollment during this years Annual Enrollment
• OSHR is currently experiencing a challenge with
  vendor contracts on trying to implement the plan
  for a Jan 1st effective date
• OSHR Benefits Division should be distributing
  additional information regarding this plan soon

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FYI Notice of Creditable Coverage mailing

• The State Health Plan mailed Notice of
  Creditable Coverage letters to approximately
  47,000 employees
• Members currently enrolled in the Traditional
  Pharmacy plan with the State Health Plan
• Members that are 65 or older,
• Members that will be turning 65 at some point in
  2015
• This mailing is proof the enrolled employee has
  creditable prescription drug coverage under the
  State Health Plan
• This is important for employees becoming/or who
  are eligible for Medicare, if they are
  contemplating purchasing Medicare Part D
  prescription coverage

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FYI Notice of Creditable Coverage
mailing(continued)

• The State Health Plan encourages every member to
  evaluate his or her own coverage needs, but feels
  the State Health Plan prescription drug benefit
  is equal to or better than, a prescription
  benefit offered by a standard Medicare
  Prescription Drug Plan
• Questions concerning the mailing can be directed
  to
• State Health Plan at 1-855-859-0966
• Questions regarding Medicare prescription drug
  coverage can be directed to
• Medicare at 1-800-633-4227

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Questions

• Questions???