What You Wish Your Employees Knew About Payroll

Date: Thursday, September 15, 2016Time: 1:00 – 2:30 p.m. ET • 12:00 – 1:30 p.m. CT • 11:00 a.m. – 12:30 p.m. MT • 10:00 – 11:30 a.m. PT

Webinar Leader:Larry White, CPP, Director of Payroll Training

Upcoming Webinar: Local Income Tax Compliance – Segment 1 – Wednesday, September 21, 2016

For more information: www.americanpayroll.org/course-conf/webinars

Helpful Tips when participating in Webinars: • Be prompt. The program begins at 1:00 p.m. ET.• To avoid missing the beginning of the webinar we suggest you connect to the program at least 10 minutes prior to start

time. You are allowed to connect up to 30 minutes prior to the scheduled start time. • The audio portion of this webinar is streamed through your computer speakers or attached speaker. To ensure all

connections will work prior to the program, please click on the Test Your System link in your event notification email. We recommend you test the connection 24 hours prior to the program but no later than 30 minutes prior to the beginning of the program.

• If you are having trouble logging in, please double-check your login ID. This information is provided in your reminder message received. Still having trouble? Contact Membership Services at (210) 224-6406 to reset your login ID.

• Once you are logged in the session and having difficulty hearing the audio portion of the webinar, please click refresh your browser and close any applications that you have running in the background, such as your email, that may interfere with the audio streaming into your computer. In addition, you may want to contact your Internet Service Provider or IT department for further troubleshooting.

• There will be question and answer opportunities throughout the program. To ask a question, simply enter your question into the Question box at the bottom of your screen.

• An online Evaluation Survey will display immediately after the webinar ends. After completing a brief survey, you will be emailed the Certificate of Participation. If you do not complete the survey, you will not receive your Certificate of Participation.

If you have any questions following this webinar in regards to the subject matter presented, please contact APA’s Hotline at (210) 224-6406, or at www.americanpayroll.org and login with your member ID.

Continuing Education Units • The registered participant will receive 0.15 CEU and 1.5 RCHs for participation in this webinar. You must participate

for no less than 80 minutes of the 90-minute webinar.• You will receive your Certificate of Participation in an email. Please print and keep for your records.

Certified Public Accountants – If you need CPE credits for this webinar, please download the CPE form from the File window during the webinar, follow the directions on the form and submit the form to certification@americanpayoll.org. You will receive your certificate in approximately eight weeks. For a CPA to earn CPE credits for this webinar, you must answer all polls during the webinar and complete the CPE form found in the Handout Box.

Cancellations/Substitutions • Cancellations must be received in writing seven days prior to the webinar program for a full refund. A check will be

mailed to you for refunds. No refunds will be made directly to your credit card account. • Requests for substitutions must be made seven days prior to the webinar; a $45 fee will be charged.• Refunds or substitutions will not be honored within 48 hours of the webinar.

American Payroll Association Membership Services • 660 North Main Avenue, Suite 100San Antonio, TX 78205-1217 • Phone: (210) 224-6406, Monday – Friday 8 a.m. – 6 p.m. CT

© API Fund for Payroll Education, Inc.

1

What You Wish Your Employees Knew About Payroll How to read a pay statement

• Compare hours worked with hours paido Worked vs. nonworked hours

• Verify accurate deductions were made• Inform Payroll of any overpayments

How to compare the last pay statement of the year to Form W-2• What you won’t see on Form W-2

o Nontaxable payments and deductions• What’s in Box 12?

o Not so secret codes• What’s in Box 14?

2016 Last Paycheck YTD Reconciliation to W-2 Form

Federal Wages Social Security Wages Medicare WagesGross Pay on pay stub $130,000.00 $130,000.00 $130,000.00 Less Section 125 deductions $1,200.00 $1,200.00 $1,200.00 Less 401(k) deductions $1,800.00 Plus excess GTL $45.00 $45.00 $45.00

Totals reported on Form W-2 $127,045.00 $118,500.00* $128,845.00

*Maximum wages subject to Social Security tax in 2016

Box 12 Codes C Excess Group Term Life Insurance $45.00

D 401(k) $1,800.00

How to complete Form W-4• How to use the worksheets

o Three worksheets • What allowances are and how they affect taxes

o Allowances are not exemptions• The requirements for filing Exempt

o On Form W-4 and in its instructions

Company policies• Advances/early check release• Who may pick up checks?• Vacation or PTO leave

o Requesting o Accrued time offo Paid before earnedo Unused

2

• Overtime payo Allowed vs. not allowed

• Holiday pay requirementso Probationary periodo Payment for worked holidays

• Sick leaveo Sick dayso FMLA leaveo Disability income

• Jury duty payo Three possibilities

• Terminations or retirementso Unpaid sick, vacation payments

FMLA regulations• Knowing what constitutes FMLA leave• Employer’s communication requirements

o Notification policy

Overtime pay• FLSA regulations on overtime

o Over 40 hours workedo 1.5 times the regular rate of pay

• Regular rate of payo May be more than the base pay

• Federal vs. state law vs. company policyo Employee favorable state laws prevailo Employee favorable company policies prevail

Complex pay policies• Regular and overtime pay policies• Multiple pay rates• Base pay and commissions

What the Department of Labor’s Wage and Hour Division and State Wage and Hour Departments can and can’t do

• When to call the Wage and Hour Divisiono FLSA has been violated

▪ Unpaid overtime▪ Less than minimum wage

The Payroll department doesn’t hold back the first week’s pay• Pay frequency timing • FLSA and state requirements

o Must be paid for all time workedo State’s lag time requirements for payments

Compensable time issues• Meetings

o Four factors determine compensable meetings• Business travel

o FLSA requires payment during regular work hours

3

When to contact the Payroll department• When closing or changing a direct deposit bank account• When you have been underpaid• When you have been overpaid• When you change your residence• When you suspect an error has occurred

What the Payroll department does• Makes timely and accurate payments• Withholds taxes for you• Withholds deductions

o Voluntary and involuntary• Provides information you need

This material is distributed with the understanding that the publisher and author are not engaged in rendering legal, accounting, or other professional services. If legal advice or other professional assistance is required, the service of your attorney or certified public accountant should be sought. Readers are encouraged to consult with appropriate professional advisors for advice concerning specific matters before making decisions affecting their individual operations. The publisher disclaims any responsibility for positions taken by practitioners in their individual cases or for any misunderstanding on the part of readers.

©2016, API Fund for Payroll Education, Inc.All rights reserved. No portion of this text can be reproduced without prior written permission of the API Fund for Payroll Education, Inc.

This comprehensive text brings you the essentialinformation you need to keep your company incompliance with the latest legislative and regulatorychanges affecting health care reporting under theACA, third-party sick pay, taxation of benefits foremployees’ same-sex spouses, and much more.

The Payroll Source® is also a proven study tool to prepare for the Certified Payroll Professional exam.*

For more information and to order, visitoffers.americanpayroll.org/prswb

Compliance requires

competence!

The Payroll Source® includes the hardcover text, softcover appendix with answer key and federal forms, and CD with a CPP practice exam and other resources. A spring supplement brings you the latest updates since publication.

* For CPP and FPC exams administered September 19, 2015 through September 16, 2016, questions should be answered based on Federal laws and regulations in effect as of January 1, 2015.

The Payroll Source®

Get the competence you need from

A TEXT AND DESK REFERENCE

2016 Edition

Use Payroll Knowledge Assessments to:

• Determine the right courses for you

• Set a course of study for the CPP and FPC exams

• Evaluate employees or an entire department

Assessments are only $29.95 each!Volume discounts available.

Go to www.PayrollKAC.comto measure your payroll knowledge in minutes.

Pick the assessment that’s right for you.There are 5 levels of assessment:

• Concepts and Terms

• Fundamental Payroll Practices

• Compliance, Operations, and Administration

• Preparing for the Fundamental Payroll Certification Exam

• Preparing for the Certified Payroll Professional Exam

Prove yourself.Improve yourself.

APA’s web-based Payroll Knowledge Assessment is supported by all popular web browsers.

One hour is allotted for each 50-question assessment. Patent Pending.

Each assessment provides you with confidential results and training recommendations specifically targeted to your knowledge gaps.

Group AssessmentsUse group assessments to screen multiple job candidates, evaluate departmental performance, and plan sessions for a certification study group.

16 Misc Workbk Ad-KAC.indd 1 12/2/15 2:32 PM