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This procedure outlines the steps to be taken to close the USPSR calendar year-end.

Each ITC is encouraged to configure the checklist to their own specifications.

Process any Life Insurance payments

Be sure to process the Life Insurance pay type for life insurance premiums over $50,000 before your last payroll of the calendar year.
  • 1. Create Life Insurance records in Payroll/Future 
    • Go to Payroll//Future
      • Click Create
      • Choose Life Insurance Premium from Pay Type drop down 
      • Populate remaining fields and click Save
See the chapter called Life Insurance Premium in the USPS Manual.
    • If the Life Insurance Premium pay type was not used on or before last pay of the year, this can be handled through Core/Adjustments to update total and taxable fields on all necessary records.
      • Go to Core/Adjustments click Create
      • Find the Employee
      • Under the Payroll Item drop down choose the 001 record
      • Under Type choose Life Insurance Premium
      • Enter in a Transaction Date
      • Enter in the Amount of the Life Insurance Premium
      • A Description can be entered (optional)
      • Click Save
This will update the Federal, State, City, OSDI and Medicare total and taxable gross figures for W2 reporting purposes.
    • Use Core/Adjustments to manually add the Medicare Amount Paid-(board will need to pay for both Employee and Employer portion of Medicare and employee can reimburse the district if board desires.)
      • Go to Core/Adjustments click Create
      • Find the Employee
      • Under the Payroll Item drop down choose Medicare Tax 692
      • Under Type choose Amount Withheld
      • Enter in a Transaction Date
      • Enter in the Amount owed for employee and employer Medicare for the Life Insurance Premium. (board will need to pay both employee and employer share and employee can reimburse the district if the board desired.)
      • A Description can be entered (optional)
      • Click Save
Medicare withholding will be updated on the W2 Report. Can run W2 Report and Submission to verify

Month-End Closing

  • 2. SERS Per Pay Report
    • Go to Reports/SERS Per Pay Report
      • Pay Title- SERS Per Pay Report-Can be changed if desired
      • Sort By- Choose from drop down option
      • Begin Each Employee on New Page-Check if desired
      • Show Detail on report-Default as checked.
      • Show informational Messages on Report-Defaulted as checked.
      • Pay Date- Enter or choose Pay Date from calendar
      •  Under eSERS Pay Cycles enter
        • Pay Cycle
        • Pay Cycle Code
        • Begin Date
        • End Date
    • Click Generate Report
      • Review the report and verify employee earnings, days and hours.
      • Review the report and if needed clean up any possible errors.
      • Verify that the total contribution amounts listed on the report equal the total Payroll Item checks for SERS withholdings plus any USAS checks written for pick-up on pick-up.
      • Verify that contributions by employee equal earnings times the applicable retirement percentage. Allow for rounding (within a few cents).
    • Once satisfied that the data is correct, run the SERS Per Pay Report program again
    • Generate Submission File for Adjustments only-Check if needed
      • Set Employees Within Submission File As Reported to SERS- Defaulted as check.
      • Pay Cycle, Pay Code, Begin Date and End Date should be defaulted from report run
      • Click Generate Submission File
    • Save the file to your desktop or a folder of your choosing
    • Click the Link to eSERS option and upload your file to eSERS
  • 3. Complete and submit the SERS monthly payments as required.
  • 4. Verify that all "new" SERS employees have been reported as new hires. Reports/SERS New Hire Report could be used
  • 5.  STRS Report
    • Go to Reports/STRS Report
      • Report Title- STRS Report-Can be changed if desired
      • Sort By-Choose sort option from drop down
      • Payment Method-Check is default can be changed using drop down
      • Check or Transaction Number-Populate if applicable
      • Report Format-Choose from drop down format type
      • Check the box next to the Historical Payroll date you will be creating the report for
      • Click Generate Report
        • Review the report and verify employee earnings, days and hours.
        • Review the report and if needed clean up any possible errors
        • Verify that the total contribution amounts listed on the report equal the total Payroll Item checks for STRS withholdings plus any USAS checks written for pick-up on pick-up.
        • Verify that contributions by employee equal earnings times the applicable retirement percentage. Allow for rounding (within a few cents).
    • Once satisfied that the data is correct, run the STRS Report again
      • To Create and submit STRS file to STRS click
                    OR
      • Click the option
        • Save the file to your desktop or a folder of your choosing
        • Click the button
        • Click the button to send the file to STRS
  • 6. Verify that all "new" STRS employees have been reported as new hires. Reports/STRS New Hire Report could be used
  • 7. Balancing the payroll account (when statement is received from bank).
    • Reconcile checks 
      • To Auto-reconcile checks with a file from the bank:
        • Go to Payments/Check Register and click on Auto-Reconcile tab. 
          •  Enter Reconciliation Date for reconciliation.
          •  Be sure Pay Rec Format is correct (will stay after entering first time)
          •  Choose file and Click UPLOAD
      • To reconcile checks manually:
        • Go to Payments/Check Register
          • Use Grid to Filter to get just status of “Paid”
          • Click the box next to the checks you want to reconcile
          • Click on Reconcile Tab
  • 8. Generate an Outstanding Checks Report
    • Go to Reports/SSDT Outstanding Checks Report and click the Generate option
      • Format-Choose the format from the drop down
      • Page Size-Choose from drop down
      • Orientation-Choose from drop down
      • Name-Default is Outstanding Checks. Can be changed f desired
      • Start Date-Enter in a Start Date
      • End Date-Enter in an End Date
      •  Click
                             OR
  • Go to Reports/Payment Transaction Status Report
      • Sort Options-Select from the drop down
      • Payment Transaction Type Options-Select from drop down
      • Payment Transaction Status-Select from drop down
      • Bank Account-Select from drop down
      • Starting Check Number-enter a specific check number or leave blank for all outstanding
      • Ending Check Number-enter a specific check number or leave blank for all outstanding
      • Issue Start Date-enter a specific issue start date
      • Issue Stop Date-enter a specific issue stop date
      • Reconciled Start Date-enter a specific reconcile start date or leave blank for all outstanding
      • Reconciled Stop date-enter a specific reconcile stop date or leave blank for all outstanding
      • Void Start Date-enter a specific void start date or leave blank for all outstanding
      • Void Stop Date-enter specific void stop date or leave blank for all outstanding
      •  Click
  • 9. IF APPLICABLE Go to Processing/Benefit Update and Projection
    • Accrual Tab
      • Report Title-Defaulted to Benefit Accrual Report-Can be changed if desired
      • Accrual or Projection-Accrual Projection Report is defaulted in the drop down (suggested to run initially)
      • Benefit Accrual Options-Choose from drop down
      • Specific Accrual Date-Enter date MM/DD/YY format or choose date from calendar
      • Include Ineligible Positions-Check box if desired
      • Sort Options-Choose from drop down
      • Select by Pay Groups-Move available pay groups to Selected
Double click on pay group or to select all click first pay group record, scroll to bottom hit the shift key and click on the last pay group- All records will be highlighted and click the
      • Select Employees-Move desired employees to Selected.
Double click on employee name or to select all click first employee record, scroll to bottom hit the shift key and click on the last employee record All records will be highlighted and click the
      • Click
      • View the Benefit Accrual Report. If satisfied with results.
      • Change Accrual or Projection field to Accrual Report using the drop down
      • Click

Quarter-End Closing

  • 10. Run Quarter Report-Go to Reports/Quarter Report
    • Year-Default is the current year. Can be changed is desired using drop down
    • Quarter-Current quarter should be defaulted. Can be changed if desired using drop down
    • Sort By-Default is Employee Name. Can be changed if desired using drop down
    • Click

In the "Totals" section of Quarter Report, the gross and adjusted gross should balance using a manual calculation

Gross

- Annuities

Calculated Adjusted Gross

The Adjusted gross calculated should equal the Calculated Adjusted Gross amount from Quarter Report. This should be true for all adjusted gross figures in the "Totals" section.

  • 11. All Payroll Items for the quarter should equal the total Payroll Items showing on Quarter Report.

Be sure to verify the electronic transfers of Federal and Medicare payments as well. This should be true for every Payroll Item code

  • 12. The total gross showing on Quarter Report should equal the total of all payroll clearance checks created during Payroll Posts for the quarter.
    • Once balanced if a hard copy of the report is desired print the  Quarter Report
  • 13. It is recommended that you balance the W2 Report quarterly to minimize problems at calendar year-end.
    • Go to Reports/W2 Report and Submission
      • Output Format-Choose Report
      • Format-Choose from drop down
      • Report Title-Default is W2 Report-can be changed if desired
      • Federal ID Number-Defaults from Organization
      • State ID Number-Defaults from Organization
      •  Kind of Employer-Choose from drop down
      • Report Year-Defaults to current calendar year
      • Click
    • View W2 Report check for any errors on the report. If errors are discovered, check employees that had exception processing during the quarter such as voided checks, error adjustments, or manual changes in Core/Adjustments. 

These amounts may not balance due to the way W2 Report handles certain amounts (e.g. Medicare pickup)

    • Clean up errors and re-run W2 Report and Submission
    • Complete and balance the W2REPT Reconciliation Worksheet for the quarter following the directions on the Worksheet
    • Balance the Payroll Item totals (taxes and annuities) on the W2 Report report with the totals from the Outstanding Payables reports from the quarter
    • Balance the gross amounts on the W2 Report.TXT report with Pay Reports for the quarter 
  • 14. Go to Processing/Outstanding Payables and verify that there are no outstanding Payroll Item amounts

  • 15. The total of all board paid amounts (if tracked on the system) should equal the total of all warrant checks to the vendor or Payees.
  • 16. Complete and file any required quarter-end submission forms.
  • 17.  For city withholdings, take the total gross times the percentage to be sure the tax withheld and submitted are correct.
Mobile employees could cause discrepancies.
  • 18. Go to Reports/ODJFS Report
    • Year-Defaulted to current year
    • Quarter-Defaulted to current quarter
    • Sort By-choose sorting option from drop down
    • Click
  • 19. Check all totals (wages and weeks) carefully for accuracy. If necessary, adjustments can be made in Core/Adjustments
    • Go to Core/Adjustments
      • Click
      • Find the employee by typing in a few characters of first or last name or id
      • Under Type choose from the drop down ODJFS Weeks or ODJFS Total Gross
      • Enter or choose from the calendar a Transaction Date
      • Enter in the amount of weeks/Wages needed in the Amount field
      • A Description can be entered if desired
      • Click
  • 20. When all data is correct, run Report/ODJFS Report again and select
  • 21. Save the file to your desktop or a folder of your choosing 
  • 22. Securely email as an attachment to your ITC.

ITC appending instructions for ODJFS tape file:

Create a directory of your own to transfer these ODJFS.18QX files to.

Rename the ODJFS.18QX file from the district to something defining the district Ex. MAODJF.18QX (The MA defining the district)

When you append the district data be sure that you pull these files from your directory.

They should then be included in your ODJFS file that you submit for all of your districts.


If you are ready to complete W2 processing, proceed to step 23 W2 Processing. 

If you need to begin January Payroll processing before completing W2 processing, leave December reporting period Open and create your January reporting period through Core/Posting Period and make that Current. After your January pay has been completed you can then process W2s starting with Step 23.

W2 Processing

  • 23.  Check W2 abbreviations on all city Payroll Item Configuration records.
    • Go to Core/Payroll Item Configuration.
  • 24.  Check City Entity Codes for Electronic Filing (If you have any employees who have certain cities that require the tax information be filed electronically. Your ITC can submit this data on your behalf.)
    • Go to Core/Payroll Item Configuration
      •  Insure the Tax Entity Codes are on the respective Payroll Item Configuration city tax records.
The specific city information cannot be filed electronically unless the entity code is present.
  •  25. Check for any cities either using Regional Income Tax Agency (RITA) or the Central Collection Agency (CCA) to report city tax information, verify the Tax Entity Code, the appropriate RITA and/or CCA three digit code, and RITA and/or CCA description are entered on the city Payroll Item Configuration record. Contact RITA or CCA to obtain the entity codes.
    • Go to Core/Payroll Item Configuration
  • 26. Contact your ITC with any other cities that may require electronic reporting and are not setup as such.
  • 27. Check OSDI codes on Ohio School District Income payroll items. 
    • Go to Core/Payroll Item Configuration-

The four digit OSDI code is required to be printed on the W2. Verify the four digit OSDI code appears first, followed by the school name (if there is space).

  • 28. Using the Core/Adjustments option make any necessary changes to the YTD gross, YTD taxable gross, on the 001 Federal Payroll Items for the W2 forms. Sources of these changes may be fringe benefits, life insurance costs, adoption assistance, third party pay, or a leased vehicle.-See supporting documents for details.
  • 29. If an employee has reportable dependent care information that needs to appear in Box 10 of the W2 form, there are two ways of reporting:
    • Enter the Dependent Care amount by going to Core/Adjustments
      • Click
      • Find the Employee by typing in a few characters of the first or last name or id
      • Under Payroll Item from the drop down Choose Federal Tax, Code:001
      • Under Type Choose Dependent Care
      • Enter or choose a Transaction Date from the calendar
      • Enter in the Amount for Dependent Care
      • A Description can be added if desired
      • Click

OR

    • If the DPCARE Payroll Item has been used during normal payroll processing no further action is necessary.
Questions on whether the dependent care is reportable or not should be directed to your district legal adviser
  • 30.  If you are notified of a Third Party payment and it is taxable you will need to enter the appropriate Adjustments for Total Gross and Taxable gross.
    • Go to Core/Adjustments
      • Find the Employee
      • Choose the Payroll Item from the drop down
      • Choose the Type-Total Gross
      • Enter or choose a Transaction Date
      • Enter in the Amount of the Third party Pay
      • A Description can be added (optional)
      • Click Save
    • Follow the same steps as above for the Taxable Gross
These adjustments will need to be made on the 001, 002, city if honored, OSDI and Medicare records accordingly.-See Third Party Document


If Medicare tax was not withheld by the Third Party vendor then an Adjustments journal entry for Medicare-Amount Withheld will need to be processed. The board will pay the employee and employer amount and can ask the employee for reimbursement if desired.
  • 31. If Third Party payment is not taxable you will need to do the following:
    • Go to Core/Adjustments
      • Find the Employee
      • Choose the Payroll Item from the drop down
      • Choose the Type-Third Party Pay
      • Enter or chose a Transaction Date
      • Enter in the Amount of the non taxable Third party Pay
      • A Description can be added (optional)
      • Click Save
This information will go on the W2 in Box 12 as a Code J.
  • 32.  Creating W2 report
    • Go to Reports/W2 Report and Submission
      • Output Type-Report is defaulted
      • Format-Choose the format type you want from the drop down option
      • Report Title-W2 Report is the default. This can be changed if desired
      • Federal ID Number-Should be defaulted from data in Organization. Check for accuracy
      • State Id Number-Should be defaulted from data in Organization. Check for accuracy
      • Kind of Employer-S-State and Local Government Employer is default. Can be changed through drop down option
      • Sort Options-Choose from the drop down option how you wish to sort your report
      • Report for Year-Current calendar year is defaulted. Can be changed if desired
      • Include Fringe Benefits in Box 14?

        If you wish to have specific Payroll Item appear in Box 14 check this box and then type name or code of the Payroll Item code in this box, click on the Payroll Item, and then click
      •  Click

There is an option available to process the report for selected employees if desired:

You can type a few characters of employees first or last name or ID in the and then click on that employee and click

    • Print the W2 Report and verify the data. 
      • Make changes to the data, if necessary, and rerun W2 Report and Submission again. 

        This program can be ran as many times as needed until all data is correct.
When all W2 data has been verified and is accurate run W2 Report and Submission again this time choosing the Submission option
  • 33.  Creating W2 SSA Submission File 
    • Go to Reports/W2 Report and Submission
      • Output Type-Submission
      • Federal ID Number-Should be defaulted from data in Organization. Check for accuracy
      • Additional Federal ID Number-If additional Federal ID number is available enter here
      • State ID Number- Should be defaulted from data in Organization. Check for accuracy
      • Kind of Employer- S-State and Local Government Employer is default. Can be changed through drop down option 
      • Sort Options- Choose from the drop down option how you wish to sort your report
      • Report for Year- Current calendar year is defaulted. Can be changed if desired using drop down option
      • Employer Name- Should be defaulted from data in Organization. Check for accuracy
      • Employer Address first line -Should be defaulted from data in Organization. Check for accuracy
      • Employer Address second line- Should be defaulted from data in Organization. Check for accuracy
      • Employer City- Should be defaulted from data in Organization. Check for accuracy
      • Employer State- Should be defaulted from data in Organization. Check for accuracy
      • Employer Zip Code- Should be defaulted from data in Organization. Check for accuracy
      • Contact Name-Enter name of employee creating the tape file (required)
      • Contact Phone Number-Enter phone number of person creating tape file (required)
      • Contact Phone Extension-Enter extension of person creating tape file (optional)
      • Contact Fax Number-Enter fax number for person creating tape file (optional)
      • Contact Email Address-Enter email address of person creating tape file (required)
      • Click
This will produce a file called W2TAPE.SEQ
  • 34. Securely email the W2TAPE.SEQ file to your ITC for federal and state reporting.

ITC appending instructions for SSA File

Create a directory ex.-W2-R_18 of your own to transfer these W2TAPE.SEQ files to.

Rename the W2TAPE.SEQ file to something defining the district Ex. MAW2TAPE.SEQ (The MA defining the district)

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MAST.SEQ file that you submit for all of your districts.

  • 35. Creating a W2RITA submission file
    • Go to  Reports/W2 Report and Submission/Submission
      • Click
This will produce is a file called W2RITA.SEQ
  • 36. Securely email the W2RITA.SEQ file to your ITC for RITA reporting.

ITC appending instructions for RITA file

Create a directory ex. W2-R.18 or W2-R_RITA.18 of your own to transfer these W2RITA.SEQ files to.

Rename the W2RITA.SEQ file to something defining the district Ex. MAW2RITA.SEQ (The MA defining the district)

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MSTRITA.SEQ file that you submit for all of your districts.

  • 37. Creating a CCA submission file
    • Go to Reports/W2 report and Submission/Submission
      • Click
This will produce is a file called W2CCA.SEQ.
  • 38. Securely email the W2CCA.SEQ file to your ITC for CCA reporting

ITC appending instructions for CCA file

Create a directory ex. W2-R.18 or W2-R_CCA.18 of your own to transfer these W2CCA.SEQ files to.

Rename the W2CCA.SEQ file to something defining the district Ex. MAW2CCA.SEQ (The MA defining the district)

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MSTCCA.SEQ file that you submit for all of your districts.

  • 39.  Creating a City submission file
    • Go to Reports/W2Report and Submission/Submission
      • Click (City file is being worked on currently and will be available soon)
This will produce is a file called W2CITY.SEQ
  • 40. Securely email the W2CITY.SEQ to your ITC for specific city reporting

ITC appending instructions

Create a directory ex.-W2-R.18 or W2-R_CITY.18 of your own to transfer these W2CITY.SEQ files to.

Rename the W2CITY.SEQ file to something defining the district Ex. MAW2CITY.SEQ (The MA defining the district)

Follow Creating City record instructions document to create each districts city .SEQ file

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MAST.SEQ file for the specific city that you submit for all of your districts.

  • 41. Creating the XML file-- that will be used to print the actual W2's using EDGE software. 
    • Go to Reports/W2 Report/Submission 
      • Output Type-XML
      • XML Title-W2 Form Data is the default
      • Federal ID Number-Should be defaulted from data in Organization. Check for accuracy
      • State ID Number- Should be defaulted from data in Organization. Check for accuracy
      • Kind of Employer- S-State and Local Government Employer is default. Can be changed through drop down option
      • Report for Year- Current calendar year is defaulted. Can be changed if desired using drop down option
      • Employer Name- Should be defaulted from data in Organization. Check for accuracy
      • Employer Address first line -Should be defaulted from data in Organization. Check for accuracy
      • Employer Address second line- Should be defaulted from data in Organization. Check for accuracy
      • Employer City- Should be defaulted from data in Organization. Check for accuracy
      • Employer State- Should be defaulted from data in Organization. Check for accuracy
      • Employer Zip Code- Should be defaulted from data in Organization. Check for accuracy
      • Include Fringe Benefits in Box 14?

        If you wish to have specific Payroll Item appear in Box 14 check this box and then type name or code of the Payroll Item code in this box, click on the Payroll Item, and then click

A maximum of 3 selected items will print in box 14. Vehicle lease will always appear first in Box 14 and then 2 other items. Leave empty to not include specific payroll items in box 14.


There is an option available to process the report for selected employees if desired:

You can type a few characters of employees first or last name or ID in the and then click on that employee and click

      •  Click
This will produce is a file called W2Form Data.XML
  • 42. Securely email the W2Form Data.XML  to your ITC for W2 printing
If employees have more than two state, city, or OSDI tax records, the extra W-2 form necessary to accommodate this information will print on the W-2 immediately following the employee's primary W-2 .
  • 43. Inform your ITC with instructions on how to print the W-2 forms. 
    • Notification will be sent by your ITC personnel when the W2's have been printed.
  • 44. Mail the State IT-3 form and select city taxation form(s) (if applicable) to your ITC.

ITC instructions for printing W2 from EDGE using XML file

Create a W2-R.XX or W2-R_XML.18 directory of your own to transfer these W2 Form Data.XML files to.

Rename the W2 Form Data.XML file to something defining the district Ex. MAWDATA.XML (The MA defining the district)

Using EDGE, click on the Import/Export option then click Continue, select the "Get Payer Information from File" option. Click on W2 and hit Ok. Find your
W2-R_XX subdirectory. Find the .xml file of the district that you are importing.
You will then choose the Print option in the EDGE software. Click on Forms and find the district that you are processing, click on W2. Choose the copy version that you are going to print.


 
You have completed the USPS Calendar Year End Closing procedures


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