Datatech’s HRM Software has just made it a little easier to check the deductions being calculated when a Health Benefit Record is added or edited. For those who want to see what calculation the software is making to come up with the amount it will deduct for the employee, a new Tool Tip will pop up when the “Amount” box (to the right of the “Employee Cost” field) is clicked with your mouse pointer. Once you have updated your software to version 7.73.0.437 (or newer), you can make use of this new feature.
To begin using the feature, first go to the Employee Entry window and select an employee number. Then click on the Health Benefits tab. You can click the New button to add a new record, or, if an entry already exists that you want to view or edit, highlight that record and click the edit button, or simply double-click that record.
Next click the “Select Plan” button and select (or re-select) the correct Medical Plan from your menu. The deduction amount recorded in your Medical Plan should automatically populate into the “Employee Cost” field. However, suppose your deduction amount is a weekly amount and the employee gets paid monthly or semimonthly? Or suppose the amount is a monthly amount and your employee is paid weekly? How do you know the exact amount the software will deduct from each check?
The new Tool Tip now shows you what calculations are being made and what the actual deduction amount on the pay check will be. Clicking your mouse pointer in the “Amount” box to the right of the “Employee Cost” field will popup the Tool Tip, showing you the basic deduction information. Now hold the Shift key and click the Save button. This saves the entry without closing the Record you have open. Clicking your mouse pointer again over the “Amount” box now shows you any conversion factors being applied as well as the final amount that will be deducted from of each paycheck. Note the screen shot below for an example of what you might see. In this example, the Pay Cycle is “S” for Semimonthly and the Medical Plan indicates the Employee Share is $20.00 per week. A conversion factor is therefore applied to multiply the weekly amount times 52 weeks to determine the annual amount, then divide the annual amount by 24 paychecks to reach the correct semimonthly amount of $43.33 per check.
The ACA Correction Report allows you to see what information will be included in a correction file. Three separate sections are printed to show what information has changed on each part of the form. In some cases, information may only change in one part of the form, while in others, information in all three parts might change.
Regardless of what information has changed, the entire form is reported in the correction file. The program automatically references the original form that was reported by using the Receipt ID of the original file
The program looks for specific changes in each part of the 1095-C form. For instance, in Part I, a change to an employee’s first, middle, or last name or the S.S. #, will result in a corrected 1095-C for that employee being included in the correction file if the IRS reported a TIN Validation Error for that form. (Other changes to information on Part I of the form, such as your company information, will not trigger the form to be included in the correction file.) Here is an except of some changes from the Part I section:
In this example, the original reported information for each employee is printed on the first line. The second line shows the current (corrected) information. Information that changed is printed in bold letters. In this example, the middle name and last name have changed for the first employee; the last name has changed for the second employee; the middle name has changed for the third employee; and the first name has changed for the last employee.
The next except shows changes that have been made to the codes reported on Part II:
For this section, the report lists the account number and the line # (14/15/16) for the information that has changed. As with the part I section, codes for line 14/16 or amounts for line 15 that have changed since the original electronic file was generated will be printed in bold. In this except, the first seven employee has one or more codes on line 16 that have changed. The last employee has code that changed on both lines 14 and 16.
The final except is for corrections to Part III of the 1095-C:
Since there may be multiple individuals that are enrolled in coverage for Part III, the report will print the original individuals reported, draw a line across the page, then list the current Part III enrollee information.
For the Part III information, there may be changes to the individuals that are enrolled as well as the months that they were enrolled in coverage. For instance, the first employee (19) listed no longer has the month of April checked for being enrolled in coverage. Employee 148 originally reported only one enrolled individual; now there is a second enrolled individual listed on the form. Employee 168 originally had two enrolled individuals; now there is only the employee listed as being enrolled.
As with the other two sections, when there are differences between the original and current information, a bold font is used. So for instance on employee 246, the first two individuals have different months checked and are printed in bold. But the last two enrollees do not have any differences between the original and current information, so they are not printed in bold.
Many customers have been waiting to generate correction files. The latest update to the Human Resources Management program includes this feature. You can use the Tools->Check For Updates option to install the latest version of HRM (7.72.0.436.) For your reference, we will provide an overview of both the Replacement and the Correction processes here, and step-by-step instructions will be posted later on the Datatech Support/Training page on our Website.
The online help file for the HRM program has also been updated with detailed information on creating replacement and correction files, as well as printing corrected forms in cases where this is needed.
Last year we added an option to generate a replacement file. The correction file is a new option. To start with, this post will explain the purpose for each type of file and in what situations they should be used.
Now that the deadline for Paper Filing your ACA Information Returns (February 28, 2017) has come and gone, it is time to focus on making sure your Employee copies of the 1095-C forms have been furnished, either in person or postmarked, by Thursday, March 2, 2017.
And for those of you who must, or who have chosen to, file your returns electronically, you are in the final stretch of meeting your deadline to upload your files to IRS e-Services by March 31, 2017.
If you have missed the paper filing deadline, or if you haven’t already obtained your TCC from the IRS, you have the next 31 days to process your electronic submission. And since the IRS e-Services registration seems to still be an area of some confusion, we would like to remind you again that TWO responsible employees in your company must register for a user account on e-Services in order to properly process your ACA Application for TCC.
Also as a reminder, Datatech will NOT be filing any electronic information returns on behalf of our customers for 2016 reporting. We have been encouraging preparation for these deadlines in earnest since November 2016. We also have a much larger customer base using the HRM software this reporting year, and we do not have sufficient personnel to handle these kinds of requests. Additionally, the electronic file functions of your HRM Software are much better utilized if you process your own information returns.
For more information and step-by-step instructions to help you through the entire 1095-C and 1094-C process, please click on the Movie Clapboard icon in your Datatech programs to open our Support Videos training website. Once there, scroll down and click on the Annual Training link located underneath the Human Resource Management heading.
This opens the training page dedicated to the Webinar we held back in November 2016 regarding 1095-C and 1094-C Preparation. After the page opens, click on the large green button to Download a PDF of the Webinar pages. Note that there are seven sections to the training, including preparing TIN Validation Notices.
If you focus on sections two through six, and watch the associated videos for these sections, you should still be able to complete the process by the March 31, 2017 deadline. But the IRS e-Services Registration and subsequent ACA Application for TCC should be your first priorities, since these will take a few weeks to complete. After reviewing these training materials, please feel free to send specific questions to support@datatechag.com.
As we know that this problem has already affected some of our customers, please be aware that the IRS has issued the alert shown below. You may use the following link to go directly to the IRS site.
Some of our customers have reported issues with being able to find the IRS upload pages for either Test files or Production files. Here is a new link to open the IRS site where you can select which channel you want to use and then log in to upload your files, obtain your Receipt ID, and then check the status of your submission and (in the case of Production files) Download your Acknowledgement file.
After clicking on the link below an IRS web page will open. Scroll down on the far right-hand side under the header UI Channel Link, and then choose either the AIR UI Channel Login – AATS (Testing) for uploading Test files, or AIR UI Channel Login – Production for uploading your actual production files.
FRESNO, Calif. – Several scams out there, but these two are particularly scary. Security leaders at the IRS are warning payroll and HR departments about a W2 phishing scam that appears to come from executive management seeking sensitive employee data. And an alert from the Better Business Bureau warns individuals about a phone scam across the country where the caller on the line starts the call with, “Can you hear me?”
The insidious “Can you hear me?” scam will trap the victim by simply answering “yes.” Here’s what’s going on, the scammer behind the call may have recorded you to use your confirmation to sign you up for a product or service then demand payment. If you refuse the scammers will try threatening you with legal action and produce your recorded “yes” response as your confirmation.
These two phishing and phone scams have security leaders particularly worried
There is another variation of this scam where the scammer can charge your accounts as they may already have your personal information on hand through a prior data breach and that recording may be used to authorize charges. If you try and dispute them, they may also produce the recording as proof you agreed to charges.
The BBB Scam Tracker shows the scam popping in several places around the country including, but not limited to, California, Wisconsin, Colorado, Virginia, Florida, Pennsylvania and Montana. The victims so far have not lost any money, but should still stay cautious.
Here’s what the BBB recommends to protect yourself from being the latest victim of this scam.
If someone calls and asks “Can you hear me?” do NOT answer “yes” JUST HANG UP. The caller may even ask different questions designed for you to respond with “yes.” If they seem to be fishing for a “yes” or “no” answer do not respond and hang up immediately. The scammer can even be looking for you to say “ok” instead of “yes.”
Never give any personal information over the phone unless you initiated the phone call yourself and have verified the number beforehand.
If you are asked to press a button to be placed on the Do Not Call Registry just hang up the phone. Saying anything or pressing buttons when prompted may help the scam artists identify you have an active phone number.
If you believe you may have fallen for this scam contact your local authorities, your bank and credit card companies immediately. Also, check your account daily for any suspicious charges.
Remember that no Government agency will ever solicit you for the Do Not Call Registry, or harass you into paying them money.
IRS sounds a warning
Recently the Internal Revenue Service issued an alert to payroll and human resources professionals about an email scam, which first emerged last year, and is again working its way across the country. This scam is particularly dangerous say security experts.
Company payroll leaders should double check any executive-level or unusual requests for lists of Forms W-2 or Social Security numbers says the IRS
Says the CalChamber, “In this scam, cyber-criminals attempt to trick payroll and human resource officials into disclosing employee names, SSNs and income information. The thieves then use the stolen personal information and data to try to obtain money, including filing fraudulent tax returns for refunds.”
Security experts say the criminals send a fake e-mail pretending to be from the actual CEO or CFO of the company. In the email, the “CEO” requests a list of employees and information about the employees, including their SSNs, from company payroll officers or human resource employees.
Note some of the verbiage that may be contained in the emails: “Kindly send me the individual 2016 W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review.” or “Can you send me the updated list of employees with full details(Name, Social Security Number, Date of Birth, Home Address, Salary).” And, “I want you to send me the list of W-2 copy of employees wage and tax statement for 2016, I need them in PDF file type, you can send it as an attachment. Kindly prepare the lists and email them to me asap.”
The IRS warns that cyber-criminals are using more sophisticated tactics to try to steal even more data that will allow them to impersonate taxpayers. Employers can can visit the IRS website to get assistance with reporting phishing and other online scams.
Datatech serves payroll employers and HR professionals in the ag industry with state of the art payroll and cost accounting software. Our help guides are timely resources to help you navigate the challenges of ag payroll for farmers and labor contractors and the challenges for produce packers and shippers in tracking inventory and sales accounting. Go here and download our free help guides.
Some new features have been added to help track bad employee addresses. Use the Check for Updates option to download the current version that includes these changes. Note: This update includes a change that requires an update to the payroll check database table. This change may take some time to complete, so it may be best to schedule installation of this update before or after normal hours or during a time that it won’t disrupt normal operations.
A checkbox has been added to the employee file to indicate that an employee has a bad mailing address. You can check this box when you have a W-2 or other piece of mail returned as not deliverable.
If you obtain a new address for an employee that previously had a bad address, make sure to uncheck the Bad address box.
We have also added a checkbox to indicate a bad address on the employee entry window in the Human Resource Management program.
Last year we included a feature to skip printing W-2’s for employees that are missing an address. This feature has been extended to also skip printing W-2’s if the employee account has had their address flagged as bad. (Of course, if an employee with a bad address picks up their W-2 in person, you can always print the W-2 on demand.)
Of course, this option should only be used when printing the employee copy. If you submit W-2’s to the SSA on paper and not electronically, you will need to print all employees regardless of the status of their address.
A similar option is available when printing the 1095-C forms in the Human Resource Management program:
Since many customers have kept track of bad addresses when sending out AB 1513 notices and payments, the program can also update employee accounts with the bad address status that was recorded in the AB 1513 employee file. Keep in mind that the AB 1513 employee file is a separate database table. The Bad Address status is not automatically transferred to the main employee file. To flag accounts in the main employee file that have bad addresses recorded in the Safe Harbor Employee file, right click on the Bad checkbox and use the option on the popup menu to import the status from the 1513 employee file:
Finally, a selection has been added to the Employee List window to select employees to print based on their Bad Address status:
Update 12/6/2016: The DIR has released additional details on the following page: Instructions for Payments to the Unpaid Wage Fund. We are reviewing the Form 40 that the DIR is requesting employers to use and will publish an update when the program has been modified to generate a file in this layout. We will post more information when this update is ready to download.
The latest update available via the Check for Updates option includes a new report to use when forwarding Safe Harbor funds to the state for employees that you are unable to locate. The Returned Check Report will list all of the employees, their addresses, social security number, and net payment amounts (after taxes are deducted) for each employee that you were unable to locate.
When handling safe harbor payments that are returned to you as undeliverable, there are several specific things that you should do and several things you should not do.
Do:
When a check is returned, you should make further attempts to locate the employee, including using “people locator” services as per the law.
If you are unable to locate the employee, check the Check Returned box on the Safe Harbor Employee window. Do not check this box before you are sure that you cannot locate the employee. This checkbox determines whether or not the employee and the payment amount will appear on the Returned Check Report.
If you check this box and later the employee does receive the check (for instance, the employee shows up in person to collect the Safe Harbor payment), then you should make sure the Check Returned box is unchecked.
Do not:
Void the check using the Void Payroll Check option. Safe Harbor payments are wages that must be reported on the quarterly report and W-2, even if the employee has not received them. If you are unable to locate an employee, they are treated the same as uncollected wages (except there is a specific procedure for forwarding uncollected Safe Harbor wages to the state).
Before issuing the check to the state:
Determine if any safe harbor checks are outstanding (have not cleared on a bank statement) and have not been returned to you. If you have any checks that have not been returned and have not cleared your bank account, you may need to leave these checks off of the returned checks report and handle them as regular uncollected wages if they end up being returned after the Dec 15th deadline.
(You may want to verify with the state whether or not they will accept undeliverable Safe Harbor payments that are returned to you after the Dec 15th deadline. Our current understanding is that the state will not accept Safe Harbor payments that you are unable to deliver after Dec 15th.)
How to issue the check to the state:
Review the instructions on the DIR’s FAQ for handling Safe Harbor payments. (See the second to the last question.)
Run the Returned Checks Report. This will list all of the employees that have the Check Returned box checked and provide a total for you to issue a check to the DIR.
Use the Returned Checks Report to generate an electronic copy. The DIR has not specified what electronic formats are acceptable. The program can generate a PDF, XLS or CSV file. (The DIR has also not specified what media you should use to submit the electronic copy.) Enter a filename for the type of electronic copy that you want to generate.
Post a journal entry to debit your cash in bank account for the amount of the returned checks. Offset this with a credit to a liability account or to the suspense account.
Issue a direct expense check payable to “INDUSTRIAL RELATIONS UNPAID WAGE FUND” posted to the liability or suspense account for the total amount of checks that were returned/undeliverable.
Determine the amount of the administrative fee. Issue a second direct expense check for this amount.
Send all of this (checks, printed and electronic copies of reports) to the DIR according to the directions provided on the FAQ.
The IRS has released Notice 2016-70, which extends the due dates for furnishing 1095-C’s to employees. Use the link to see the entire Notice, but we have copied below the verbiage pertaining to this extension:
“Following consultation with stakeholders, the Department of the Treasury (Treasury) and the Service have determined that a substantial number of employers, insurers, and other providers of minimum essential coverage need additional time beyond the January 31, 2017, due date to gather and analyze the information and prepare the 2016 Forms 1095-B and 1095-C to be furnished to individuals. Accordingly, this notice extends by 30 days the due date for furnishing the 2016 Form 1095-B and the 2016 Form 1095-C, from January 31, 2017, to March 2, 2017. In view of this automatic extension, the provisions under Treas. Reg. §§ 1.6055-1(g)(4)(i)(B)(1) and 301.6056-1(g)(1)(ii)(A) allowing the Service to grant extensions of time of up to 30 days to furnish Forms 1095-B and 1095-C will not apply to the extended due date. Notwithstanding the extensions provided in this notice, employers and other coverage providers are encouraged to furnish 2016 statements as soon as they are able. Treasury and the Service have determined that there is no similar need for additional time for employers, insurers, and other providers of minimum essential coverage to file with the Service the 2016 Forms 1094-B, 1095-B, 1094-C, and 1095-C. Therefore, this notice does not extend the due date for filing with the Service the 2016 Forms 1094-B, 1095-B, 1094-C, or 1095-C, which remains February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically. However, this notice does not affect the provisions regarding automatic extensions of time for filing information returns, which remain available under the normal rules by submitting a Form 8809. See Treas. Reg. § 1.6081-1; Temp. Treas. Reg. § 1.6081-8T. It also does not affect the provisions regarding additional extensions of time to file. Id. Employers or other coverage providers that do not comply with the due dates for furnishing Forms 1095-B and 1095-C (as extended under the rules described above) or for filing Forms 1094-B, 1095-B, 1094-C, or 1095-C are subject to penalties under section 6722 or 6721 for failure to timely furnish and file, respectively. However, employers and other coverage providers that do not meet the relevant due dates should still furnish and file. The Service will take such furnishing and filing into consideration when determining whether to abate penalties for reasonable cause. The extension of the due date provided by this notice applies only to section 6055 and 6056 information statements for calendar year 2016 furnished in 2017 and does not require the submission of any request or other documentation to the Service. Because the 30-day extension of the due date to furnish granted in this notice applies automatically and is as generous as the permissive 30-day extensions of time to furnish 2016 information statements under sections 6055 and 6056 that have already been requested by some reporting entities in submissions to the Service, the Service will not formally respond to such requests. Because of the extension granted under this notice, some individual taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2016 tax return. Taxpayers may rely on other information received from their employer or other coverage provider for purposes of filing their returns, including determining eligibility for the premium tax credit under section 36B and confirming that they had minimum essential coverage for purposes of sections 36B and 5000A. Taxpayers do not need to wait to receive Forms 1095-B and 1095-C before filing their returns. Individuals need not send the information relied upon to the Service when filing their returns but should keep it with their tax records.”
The Datatech GrapeVine 