Year end procedures for 1995.
December 20, 1995
Dear Client,
As part of our continuing commitment to our clients we are enclosing this memo
reviewing the 1995 end of calendar year procedures.
W2 Changes and Year End Payroll Procedures
__________________________________________
These procedures are outlined in Appendix A attached to this letter and must
be completed before 1996 payroll information can be entered.
F
RHS will contact you after you complete the 1995 payroll as per the dates that
were given to client services this month. All facilities that are equipped
with modems should leave their modems on starting from the dates that they
gave to RHS. All facilities with modems will be handled via telephone.
Payroll Accruals Carryover
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Clients using our payroll accrual software should follow the steps outlined in
Appendix B.
These procedures can be completed either before the Payroll year end
procedures are done or at a later point in time.
F1996 Co-Insurance Rate
______________________
Please update the Co-Insurance Table for 1996 adding an entry with a Main Key
- 96 and a Secondary Key - 1996 [TF, 1, 8, 7]. The Co-Insurance rate for 1996
is $92.00.
Medicare Rugs III Demonstration Project
_______________________________________
For those clients participating in the Medicare Rugs III Demonstration project
additional instructions and software updates will be mailed in early January
1996.
UNIX Systems
____________
For UNIX system only - an annual backup of your entire system MUST be made.
____
Instructions are enclosed.
For additional assistance please feel free to call our client services
department. Thank you.
Reliable Health Systems, Inc.
Doc. 0229w
APPENDIX A
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Payroll Year End Procedure (Year End 1995)
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Step 1: VERIFY W2 INFORMATION
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Check Earning/Deduction Table File to Ensure that:
a) All items have the correct tax status.
"Y" = include this entry when calculating this tax.
Standard Table File entries are:
Earnings - All Taxes
Deductions - No Taxes
Qualified Plan - All Taxes except FICA
b) Code 61 exists for 3rd Party Pay
Check with your accountant if any fringe benefits or deferred compensation
amounts are applicable to your facility. If they are - then make sure that an
entry for this item exists in the Earning/Deduction Table File so that the
W2's are correct. These amounts should be entered in the 1995 payroll prior
to printing the W2's and Quarterly reports.
If your Facility has any of the following pension plans then you must check
the Earning/Deduction Payroll Table Files to ensure that:
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1) A "Y" has been entered for Deferred Compensation
2) The correct code was entered in the field Box 17 for w2
Code Pension Plan
____ ____________
04 401(k)
05 403(b)
06 408(k)
07 section 457 plan
08 501(c)(18)(D)
12 other non qualified plan
3) SUTA/FUTA N N
4) Tax Status Y N Y Y Y Y
See Appendix C for a detailed screen.
Check Employee Master File for Correct:
a) Social Security number (no blanks or all zeroes)
b) Marital Status
c) Number of exemptions
You can printout these items by running the Employee Master Report Generator
(GM,10,9,4) requesting fields:
8 (Soc-Sec-No)
10 (Martial Status)
58 (Fed exempt)
59 (State exempt)
60 (City exempt)
BACKUP and REORGANIZE
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Create a backup after all Payroll entries for the year have been
completed, including voids, prepaids and 3rd party checks. This backup
__
should be stored away and taken out of the backup rotation.
1995 checks may be voided in 1996, prior to printing the W2's, if the complete
__________________________
1995 payroll is on-line.
F
Call RHS for assistance in doing Steps 2 through 6.:
Instructions for Steps 2 through 6 are for Wang VS Systems ONLY.
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Step 2:
Facilities with limited disk space should make space by
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a) deleting 1994-and-prior payroll data (After backing up data)
b) run "UPDTFL" to delete free extents
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c) run "VOLORG" to compress files, changing all from ranges from 1 to 0
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Step 3: CREATING A LOGON
________________
This step allows access to the prior year payroll
From any CHARTS menu
Enter "TF" (RETURN)
__
Type "1" (ADDTABLE), "18" (SYSTEM), "1" (CLIENT). _ __ _
Main KEY: ("95TESTDA" if original name is "TESTDATA") 2nd Key: "95" (RETURN)
Enter the Library name and Volume of the 95 payroll.
Step 4: SEPARATING CURRENT PAYROLL
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The following steps should be done for every payroll facility
Log off CHARTS by pressing HELP and PF16
Press PF1, type "COPYMANY" for Program name and press RETURN
________
INLIB: Payroll library (Press HELP, PF5, use INPUT library and Volume) to
find the names of the Payroll library
INVOL: Payroll volume, OUTLIB & OUTVOL - from step 3
Facilities with payroll spanning 2 years for accruals or facilities with
__
limited disk capacity should place an "X" by TXFILE and NHHRF. All other
_
facilities with sufficient disk space should put an "X" by SPFILE, DEFILE,
_
EMFILE, TXFILE, TFFILE (or TABLES) and NHHRF. Press PF1.
Press PF16 to exit.
Logon to CHARTS.
Facilities without payroll spanning 2 years for accruals
Enter from any CHARTS menu "PMOVEFIL" and press RETURN
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From file: "EHFILE", To library: from step 3.
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Log off and log back on.
Step 5: CHANGING FILE NAMES
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From any CHARTS menu enter the MAIN KEY from step 3 and press
RETURN. Type "NHBASIC" and press RETURN. Change any of the last 17
_______
positions in the facility's name to reflect 95 (i.e. TESTSNF -
95)
If in step 4 TFFILE was copied, change the library and volume for TF to the
OUTLIB and OUTVOL in step 3 and press RETURN
From any menu type in "NHPR" and press RETURN. The copied and moved files
____
from step 4 should have their libraries and volumes changed here then Press
RETURN.
Step 6: INITIALIZING EMPLOYEE WORK FILE
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Facilities using 2 years for accruals go to step 7
From any CHARTS menu enter the INLIB of step 2 (to change facilities) (RETURN)
Type in "RUN" (RETURN)
___
Program: "INITFILE" (RETURN) Leave the N to the question INIT THE NHHRF
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Facilities with sufficient disk space, on line 11 for No. of Recds enter the
number of employees multiplied by the number of Payrolls. Other facilities
use 5 times the number of employees
Press PF11. Enter "I" (to initialize) (RETURN)
_
Some facilities will be prompted to press PF3
When only the I appears - press PF16 to exit.
Step 7: SETTING PAYROLL PERIODS FOR 1996
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From any CHARTS Menu enter "SETPR" and press RETURN. Enter the
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first period of the new year. Set beginning Month, Quarter, Year to "B".
_
Step 8: CHANGING TAX TABLE
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From any CHARTS menu enter "FEDTAX" and press RETURN. Change the
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TAX table as shown: (For wages paid after Dec'95)
7
________________________________________________________________________
(IRS CIR E ANNUAL) FEDERAL TAX INFORMATION
Single Married
Rate Cutoff Rate Cutoff
level - 1 15 2625.00 15.00 6425.00
- 2 28 25450.00 28 44250.00
- 3 31 53725.00 31 89675.00
- 4 36 122750.00 36 151850.00
- 5 39.60 265200.00 39.60 267900.00
- 6
- 7
Annual Exemption 2550.00 2550.00
-- Earned Income Credit --
Level - 1 6330 20.40 3165 20.40
- 2 11610 1291.00 5805 646.00
- 3 .00 .00 .00 .00
Min/Max Rates .00 9.59 .00 9.59
Fica Employer: 7.65 62700.00 Employee: 7.65 62700.00
Level 2 : 1.45 999999.00 Level 2 : 1.45 999999.00
Please note changes in FICA limits
APPENDIX B
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Payroll Accruals Year End - Part A
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Notes: On running carryovers when 1995 data is still live.
__________________________________________________
BEFORE STARTING
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A) A BACKUP MUST BE DONE AND STORED AWAY.
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B) A BENEFITS REPORT MUST BE RUN FOR 1995, AND THE RESULTS SHOULD BE REVIEWED.
___________________________________________________________________________
Step 1. Change User Parameter PR Screen - Type NHPR (CR)
Enter in the Percentage allowed to be carried over for Sick and
Vacation.
Sick Vacation
____ ________
On the % Payout/Carryover line type xxxxx 100.00 xxxxxx 100.00
_____ ______ ______ ______
Press RETURN
Step 2. Running the Accrual Update Program
Run Update Vac/Sick/Hol Info (GM,18,4,1,7)
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Fill in the screen:
Processing Order: D
From Department: 0000.0000 to 9999.9999
From Date: MM/DD/YY (beg of year) to MM/DD/YY (end of year)
Vacation: (enter "Y" if you are carrying over vacation)
_
Sick : (enter "Y" if you are carrying over sick)
_
Holiday : (enter "Y" if you are carrying over holiday)
_
Detail/Summary/Both: "X" (This Must Be Entered.)
_
Print Terminated Employees: "Y"
_
Print Option: Spool or Printer default
_
The remaining questions on the screen can be left as prompted.
Press RETURN.
The processing can take up to 1 to 2 hours, depending on the CPU type
and the amount of employee history records on file.
Step 3. Run an Accrued Benefits Report to verify that the information is
correct.
Accrual Memo - Year End 1995 - Part B
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Notes: On running carryovers when 1995 Data has been moved to a
_____________________________
different library.
For our Example we are assuming TESTDATA is the 1996 Library name
and 95TESTDA is the 1995 Library name.
BEFORE STARTING
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A) A BACKUP MUST BE DONE AND STORED AWAY.
_____________________________________
B) A BENEFITS REPORT MUST BE RUN FOR 1995, AND THE RESULTS SHOULD BE REVIEWED.
___________________________________________________________________________
Step 1. Logon to the 1995 Facility (containing las year information)
Step 2. Change User Parameter PR Screen - Type NHPR (CR)
Enter in the Percentage allowed to be carried over for Sick and
Vacation.
Sick Vacation
____ ________
On the % Payout/Carryover line type xxxxx 100.00 xxxxxx 100.00
_____ ______ ______ ______
Change the pointer to the EMfile - EMFILE TESTDATA VOLXXX
Change the pointer to the DEfile - DEFILE TESTDATA VOLXXX
Leave the remaining files pointing to 95TESTDA as before.
What we are doing is updating the current EM and DE files from the
1995 Employee History data.
Press RETURN
Step 3. Running the Accrual Update Program
Run Update Vac/Sick/Hol Info (GM,18,4,1,7)
___________
Fill in the screen:
Processing Order: D
From Department: 0000.0000 to 9999.9999
From Date: MM/DD/YY (beg of year) to MM/DD/YY (end of year)
Vacation: (enter "Y" if you are carrying over vacation)
_
Sick : (enter "Y" if you are carrying over sick)
_
Holiday : (enter "Y" if you are carrying over holiday)
_
Detail/Summary/Both: "X" (This Must Be Entered.)
_
Print Terminated Employees: "Y"
_
Print Option: Spool or Printer default
_
Defaults can be used for the remaining questions on the screen.
Press RETURN.
The processing can take up to 1 to 2 hours, depending on the CPU type
and the amount of employee history records on file.
Step 4. Change User Parameter PR Screen - Type NHPR (CR)
Change back the pointer for the EMfile to EMFILE 95TESTDA volxxx
Change back the pointer for the DEfile to DEFILE 95TESTDA volxxx
Leave the remaining files pointing to 95TESTDA as before.
What we are doing is updating the current EM and DE files from
the 1995 Employee History data.
Press RETURN
Step 5. Log Back on to TESTDATA - the 1996 live data.
Step 6. Run an Accrued Benefits Report to verify that the information is
OK.
APPENDIX C
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Setting Up Table File for a Tax Deductible Deduction
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M107B-.10,5.00,2.60,0,10
EARNINGS / DEDUCTIONS CODES TABLE
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Main Key: Secondary Key: 401K Description: 401K PENSION
Affects Shifts (Y/N): Hourly Rt/Amt: FED FICA ST CITY DIS EIC
Include:in Gross N FTE Work/paid Deduct tax: Y N Y Y Y (1)
-----------------------------------------------------------------------------
Additions/Deductions
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A-Addition, D-Deduction : D Code: 4K Based on tax frequency :
Combine all missed Deductions (Y/N): Max # Periods to Carry Over:
Limit Basis:Y-T-D or Total deducted: Y Based on Hours:
-----------------------------------------------------------------------------
Percent of Gross or an Amount(P/A): A Included in calculating (Y/N)
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% of Differential Rate (7-9): (Vac/Sick/Hol/Other) :
Type : W (E)arn(B)benefit(W)witholding Differential :
G/L Account #: Union Hrs/Pay/Over Base:
Natural No. : Report(A/B/C) Hours/Pay:
Wage Average Hours/Pay : Fringe Bnft/Deferred Comp: (2)
Pay at Overtime Rate : W2 code for box 17 : (3)
Enter (F) To File (I) To Ignore: F SUTA/FUTA : NN Min. Net: (4)
GROSS FED FICA ST CITY DIS
1M4H
Above is an example of a Table File entry for a deduction that only deducts
____
FICA.
Note SUTA/FUTA should be set to NN.
If this is a qualified 401K pension plan enter the following:
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(1) Enter tax status as shown above.
(2) Fringe bnft/Deferred Comp: NY.
(3) Enter 04 for W2 Code.
(4) Enter NN for SUTA/FUTA.
Setting up Table File for Tax Deductible Earning (addition)
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(1) Enter N to all Taxes except FICA
(4) Enter YY for SUTA/FUTA
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Note: the above examples define Tax Deductible as being exempt from
Fed./State/ City Tax but not exempt from FICA.
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Employees enrolled in the 401k should have the Master file field Pension
checked.