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BPM Name :

Opt Calc Process

Department :

Organization :

H701

IBM US Payroll

Process Owner (Manager ):

Edward Perkins/Endicott/I

Process Administrator :

Alan C Jones/Endicott/IBM

Reviewer :

John Sperduti/US/IBM

Mission Statement

Verify overpayment amounts made to inactive/terminated employees and set up records to facilitate
the tracking of timely collection efforts and eventual recovery of those overpayments. This is
accomplished through both internal means (CEDAR) or the utilization of an external collection
agency. Recovery efforts continue until the debt is satisfied or the overpayment is deemed
uncollectible after exhausting all collection activities as defined by the procedural documents.
Description of Process

Procedure:
AP2 PERFORM OVERPAYMENT CALCULATION
Please note the following tasks should be completed and in the folder when you receive it.
Overpayment request/source
Print out of the 10I screen
Print out of batches deleted
CEDAR checked
NPC97 ran
Salary analysis output
Sep Form (ecform)
Always double check 10I screen and batch deletes for changes
Activity 1: Acquire and audit each potential overpaid employee folder
The overpayment folders are located in the o/p calc cabinet (files also found on k drive).
1. Check for oldest folder Manila uses excel Tracker file
2. Current serial assignments by location (first digit):
Endicott - 0,1,2,3,7,8,9,L, Manila 4,5,6
Activity 2: Ensure employee is inactive (Not being paid on NPS)

Check the 10I screen in NPS for any changes that may have taken place since the file was created.
Example - employee now active
Ensure that the overpayment analyst has provided the following:
Ran the check query.
Activity 3: Notify appropriate parties
If returned from LOA send note to Paysep1 copying the CERIS rep. stating that the
employee is now active. The CEDAR record is CLOSED.
Employee status found by use of the 10I screen
Activity 4: Acquire appropriate payment history
Use the 10I Screen on NPS to verify salary, separation dates etc. There may be changes that
occur around the period of separation that needs to be taken into account since they may effect the
overpayment. For example, a salary increase may occur mid period.
This is the 10I screen where information on the employee is changed or updated.

PRINT SCREEN (If not already included in the folder)

The Overpayment Documentation Check list;


* Serial Number - Employees serial number
* Last Name - Employees last name as seen on NPS
* Initials - Employees first initials as seen on NPS
* Processor Initials - overpayment processor initials
* Date Calc Complete - Date of Calculation was completed
* Dept. - Department Number found on the 101 screen in NPS..
* Division - Division number found on the 101 screen in NPS.
* Hire Date
* Separation or LOA Date This is the FIRST day that the employee
should not be paid
* Departure Type (Sep (Separated), LOA (Leave of Absence), DE
(Death), RET (Retirement)
* LOA Return Date (Optional)
* Total Salary which is either monthly or hourly rate. This is the $
amount shown on the 101 Screen on NPS.

The 201 screen is divided into 3 sections:


This screen can be used if any questions on employee salary or separation date.
The following is information on the 201 screen
a. Stat Section: Shows Emp. status to see if F/T Regular, Part time or Supplemental and the date
they separated or went on LOA, keeping in mind when they were hired or when the last gap in
employment occurred. The 201 screen can be used to find the create date of the separation and to
assist in an explanation as to why the employee was overpaid.
b. Comp Section: Shows the salary and vacation information and includes an ADJ field to
determine monthly or hourly Salary and an ADJ Amount field to determine the amount upon which
to base vacation.
c. Pos. Section: Shows the Department and Division) ORG4 field for Department and ORG1 field
for Division.
* PF 2 to page forward to the next screen and PF3 to page backward .
This is an example of the 201 Screen.

RUN A CHECK HISTORY QUERY You can also look at individual checks on A9I in order to
analyze if the employee is overpaid.
Run check query: NPSQMF.CHECK_INFO_CAL_P
Running the check query enables you to find and analyze the overpayment easier.
The overpayments processors have access to this query.
You must log on to the TSOW1 system to run the query:
1. On a HOD Session type tsow1 (enter)
2. Enter your tso ID(enter)
3. Enter Password (enter)
4. When X is gone - (enter)

5. Type DB2.2 (enter)


6. On the command line type: run NPSQMF.CHECK_INFO_CAL_P
Type Serial Number 123456 hit enter
Type Start date 2004-03-01 hit enter
Type End date 2004-05-01 hit enter
* This will display checks cut between 03/01/04 and 05/01/04
***

You will get a message and see the query press enter than PF#4 to print
You must type your user id for Vm or email to receive and print this file

Activity 5: Analyze Overpayment


Review the CHECK QUERY to see which checks were cut, also keeping in mind the salary rate,
separation date and any check reversals that were processed..
Go to the H1I Screen and research any OPEN or HELD batches.
You must check this to be sure all batches at the time of set up have been included in the folder. If
there are any batches still open or held, make note on front of the folder that batches must be deleted
when calculation has been completed. Coordinator will delete these when calculation is put onto
Cedar. If there are any new batches, have the coordinator do print screens and delete any batches
that need deleting.

Open or Held means the batch entry did not run or update the employees earnings
* There may be vacation, award moneys, unpaid absences, overtime, shift premiums
could be used in the calculation. These batches will be printed and
deleted before the overpayment is established.

etc. that

The batches are deleted because if we did not delete the batches they would stay on the
NPS system and generate E-messages each pay period. They are printed so we can determine if the
employee is entitled to any or none of the batch entries.
If you see there is in an active/held batch, the system is trying to cut the employee a check for less
than $5.00. Due to cost of business constraints, it wont happen. Thus put it and its related dollar
amount in the Excel spread sheet under money due to reduce the overpayment.
1) Type H1I PF8/ enter serial number of the employee/ enter
2.) Tab over to Detail Status and type an A to see if any batches are open.
H1I1

EMPLOYEE CYCLE FILE INDEX

EMPLOYEE #
PAY

NAME:
BATCH

SEQ MIXED? YR PER

BATCH

TRAN

DETAIL

ACT

ENTITY

NO

NO

STATUS

TYPE

STATUS

TRAN

A
01 SEMI2 Y97142A 0001
02

99 13

C CLOSED

Y4OVRIDE

A OPEN

G5I

Tab over to Detail Status again and put a H to see if any batches are Held.
EMPLOYEE CYCLE FILE INDEX

H1I1
EMPLOYEE # 0A0348
PAY
BATCH
ENTITY NO

NAME: SANJAY,S
SEQ MIXED? YR PER
NO

BATCH
STATUS

TRAN
TYPE

DETAIL
STATUS

ACT
TRAN

H
01 SEMI8 F529710 0001

99 13

C CLOSED

PERSBEN

H HELD

G5I

02 SEMI8 F579770 0001

99 13

C CLOSED

GLI

H HELD

G5I

NOTE: Review printed output of batch information that may be included (from the folder set-up)
verify if any should be incorporated within the calc.
Review any correspondence required to be added in the calc
* Review the CERIS report, notes, timecard overpay forms, E-Message, ECFORM
(received from the PAYSEP id.) If included in your folder, see if the separation date, salary amount
agree with your findings from the 10I screen. If not, resolve. See the CERIS team for information or
if they have changes look at this material to see if there are any notes or information you need to
analyze the overpayment.
See attachments: ECFORM, CERIS report, Notes, E-Reports
These forms are in the folder when you receive it.
* ECFORM you are looking to see if the employee is due
vacation or if over took/ also double check separation date.
*CERIS report will show separation leaves, emergency sep.,
no payment sent, regular sep. payment sent, review dup final check
LOA possible payment/review of duplicate payments.
* Notes from the manager or separation team concerning the employee
* E-Reports will show if any batches were open and did not run
or any checks paid after separation .

NOTE: The following information to look for on the ECFORM for vacation.
* Greater of Excess/Accrued: This is the number of vacation days due the employee.
* Deferred: The number of deferred vacation days due the employee.
* Taken: The number of vacation days the employee has taken in the current year.
* Paid: This is the number of days the employee is either due or overpaid. This total comes from

adding the Greater of Excess/Accrued to the Deferred and subtract the number of vacation days
taken.
** Note Executives vacation is paid on total compensation. A special sheet will be in the folder
telling you the total compensation. to get daily rate.
Total compensation X 12 divided by 52.00 X 5.
Determine if overpaid / not overpaid
Determine if alternate work schedule (AWS) / unpaid absence is included in history payment

Activity 6: Notify overpayment analyst of any non overpaid folders


Send note to the paysep1 id
Request closure of overpayment record
Give the folder back to the overpayments coordinator
Activity 7: Acquire appropriate time card data for alternate work schedule calcs

Log on to Totals for detail


Print the employees last two time card totals
Lay out employees work schedule on a calendar.
Mark the last day worked
count the number of hours the employee worked
count the number of hours the employee did not work
Divide the number of hours the employee worked by the total number
Of hours the employee should have worked and multiply by the semi
Monthly salary this will give the amount the employee should be paid.
Subtract this amount from the semimonthly this will give you the
amount the employee was overpaid.
EX: 24/84X756.00 =216.00
Activity 8: Calculation of Overpayment
Using EXCEL access Calc Sheet.xls
1. Go to Excel and call up Calc Sheet.xls
2. Input all employee data - name, S/N, and date on the top of
overpayments calc sheet
3. Page down to Salary, Vacation input the employees total monthly salary
4. For AWS calcs change # of days to hrs for salary only
5. Add premiums if overpaid
Note: The Gross earnings are calculated as follows:

SALARY PAY: (General Rule)


Monthly salary (from the 101 screen) divided by 2 divided by the # of work days in the pay period
multiplied by the # of days overpaid (or due employee)
Put in the total gross salary in the section marked Total Salary also enter on the section marked Total
Vacation Salarythis will populate others fields for salary
Put the total monthly salary amount in the Middle section of the Excel spread sheet tab over to Days
-/+ input the number of days in the PP. Count the number of days in that pay period. Ex. (10, 11, 12)
Put in the number of days due or overpaid in the middle of the Excel spread sheet. This will put the
correct total due or overpaid in the correct cell of the spread sheet. The # of days in a pay period are
determined by how many working days (Monday through Friday) are between the dates of the First
of the Month and 15th of the Month, and days between the 16th of the Month and the Last Day of
the Month. This holds true for Regular employees. If the employee is on a FWLOA, AWS, or an
AWA program, look at totals for employees work schedule. This schedule is used to ensure that the
calculation of salary is done correctly.
See Examples below.
Example 1: A regular employees last day of work is May 11, 2004, the employee received a pay
check for the full pay period for May 15, 2004. The employee is overpaid 3 out of 10 working days
in that pay period
VACATION PAY: (General Rule)
Monthly salary multiplied by 12 divided by 52 divided by 5 multiplied by the # of days overpaid (or
due employee)
To calc Vacation put the cursor under the total vacation amount. Put in the total vacation salary
amount from the separation/overpayment form arrow over to ( times #Days -/+ Column) and put in
the number of Vacation due or overpaid. This will populate the correct cell in the Excel spreadsheet
with the correct Vacation amount due or overpaid.
SEPARATION PAY: (General Rule)
This is the manual way to calc: monthly salary multiplied by 12 divided by 52 multiplied by the # of
weeks overpaid (or due employee.
By entering the monthly salary in the correct fields on the Excel spread sheet, the spread
sheet will calc the correct amount due
These are the amounts the employee is overpaid. For Salary or Vacation
The employee could also be overpaid because of Batch entries.
1. unpaid absences,
2. Shift premiums

Calculation of Overpayment Amounts


How an MA calc is done on the A9Z screen
Now that the gross figures are filled in on the Excel spread sheet go to the A9Z screen
on NPS and calculate the taxes and deductions associated with the figures.
The entire activity is to go from a gross overpayment to a net amount.
* Prepare system MA calc
1. Home A9Z PF8
2. Put in Serial Number (enter)
3. PF5
4. Type field put MA
5. PF 1 (enter)
6. Tab and Type in Pay Period and Year when separated. Ex: If separation.
1/14/04 this is PP 1 for a regular employee. Thus, put in 01 04.
7. Put in the LD field (the first day of the overpayment).
8. Check Field current date.

GO TO ACTIVITY 12 for any prior year earnings adjustments (there may be a


need for both current year and prior year calc
Note: 401k - The 401k account must be open in order for it to be recouped and thus
the calc. If closed, all amounts must be calculated without it.

used in

Note: E440-DCSA, E442-HCSA, E441-Health Care, E443-LTD, E564-GLI : Only use in calc if
overpaid for full pay period or if they are due money in a partial pay period.
rd

NOTE: The overpayment processor MUST always check with the 3 party processor to see if the
rd
DCSA/HCSA account is open and has enough funds to recover the overpayment. The 3 party
rd
processor will contact the provider to see if the funds are there for recovery. Send a note to the 3
party processor with the following information:
* Employee Serial Number
* Employee Name
* Dollar amount of the DCSA/HCSA that needs to be recovered.
* Pay Period of the overpayment from which DCSA/HCSA is to be
recovered.
rd

The 3 party processor will respond back to the note for the employee stating that the account is
rd
open or closed. If the account is open, the 3 party processor will let you know there are enough
funds in the account to cover the DCSA/HCSA figure sent for recovery. If the account is closed or
only a portion can be recovered, the overpayment processor must recalculate the overpayment using
the appropriate DCSA/HCSA.

Below are the deductions that cannot be reversed after 3rd party has run.
External 3rd party:
070
080
100 thru 119
200 thru 219
320 thru 329
900 thru 909

GUL (KVI Term Insurance)


LTC (Long Term Care Insurance)
U.S. Savings Bonds
Charitable Contributions
TDSP Loan
Credit Union Deduction

Internal 3rd party (External Vendor):


440
442
445
446
447
448
449
855
856
857
858
859

Depend Care Spend Account (*)


HRA (Health Reimbursement Account) (*)
HSA Employee Contrib - AET/AET
HSA Employee Contrib - Cigna/JPM
HSA Employee Contrib - Empire/Mellon
HSA Employee Contrib - MVP/Mellon
HSA Employee Contrib - UHC/Exante
HSA Employer Contrb AET/AET
HSA Employer Contrb Cigna/JPM
HSA Employer Contrb Empire/Mellon
HSA Employer Contrb MVP/Mellon
HSA Employer Contrb UHC/Exante

Go to the body of the check and input under the ETV, ETV # and amount columns the appropriate
items relating to your calculation. (enter).
NOTE: All amounts, whether over or underpaid are inputted as positive figures so as to
enable taxes to come out more correctly.
Ex: E 001 and tab over to the amount column and insert the amount overpaid.
NOTE: E511 (vacation) and E510 (separation pay) must be entered as E514 in the MA. In addition,
E075 (unpaid absence) must be entered as E001, if there is NO E001 in the calc. (These will need to
be changed to their proper ETV # before the CC is posted.) All calc must be done as positive
amounts in order for federal and state taxes to come out accurately, whether over or underpaid.
*
*
*
*

PF 10 to calc
Print each Screen in the calc.
Delete MA by putting ** in Prt/Del field (enter)
Federal and State taxes are prorated only on salary overpayments

*FIT: $$002 Federal Tax - This needs to be prorated for partial pay period.
PRORATING TAXES: on the Excel spread sheet under the column
marked Fed/tax input the $$002 amount from a prior check enter a / then
the base of that check enter a * then the base amount of the overpayment,

enter. The spreadsheet will calc the correct prorated taxes. This is only
done on salary.
- Change MA print screen to show new taxes.
*STATE: XX State Tax - This needs to be prorated for partial pay period.
PRORATING TAXES: on the Excel spread sheet under the column
marked State/tax input the XX amount from a prior check enter a / then
the base of that check enter a * then the base amount of the overpayment,
enter. The spreadsheet will calc the correct prorated taxes. This is only
done on salary.

Error Message TS1761/TS245 from MA calc


Calc successful: Negative Tax Base/Amt Adjustment
Reason: In processing a refund, either the tax base or the tax amount refunded is greater than the
YTD accumulator amounts. To prevent the YTD fields from posting a negative amount, the refund
base or the amount, or both, was adjusted.
Action: Evaluate the employees records and determine if this is the desired result.
This is not over-rideable, since current year does not have any tax accumulators, the MA cannot
calculate a refund of an amount which does not exist. Therefore, each year MAs calculated in
January/February for the prior year are used for processing W2 corrections, so the overpayment
worksheet becomes the valid /accurate document for the W2C since the MA cannot calculate the tax
amounts correctly,.
Transfer Appropriate Totals from MA Calc to Excel File:
Go back to the Excel file, Calc Sheet.xls and transfer totals & tax figures to get your overpayment
total. Finish filling out the Excel spread sheet form with the total taxes.
*MED: $$00M Medical Tax
*S.S.
$$001 Social Security Tax
*CITY:
*LOCAL: Local taxes are not always included in calc.
1. Checking table 306 will tell you if it is an employer tax or not
2. If it is an employer tax it is not used in the calc
3. It is only used in the CC where it will not change the net amount
DISABILITY:
*H/C: E-441 Health Care
*LTD: E-443 Long Term Disability
*GLI: E-564 Group Life Insurance. (This appears in the gross and in the
deductions columns.)
*PBP: E-566 Personal Benefits
*DCSA: E-440 Dependent Care Spending Account.

*HCSA: E-442 Health Care Spending Account


*NET: The net amount of moneys due IBM. This is the result of taking the gross
amount and subtracting all the deductions and taxes.

Final step is to ensure all cells are added up.


Activity 9: Stop Payment Process For An Outstanding Check:
* Print screen done on NPC97 where serial number was found
* Send a note to the Stop Pay desk to check if the checks are outstanding.
If you receive a answer that the check is still outstanding from the Check Stop Desk
Go to Internet call up the IBM Stop payment form
Go to https://hrextam01/hrext207/s_dir/stoppay.nsf/submit?Openform
Hardcopy Check Stop Payment Request Form
This form is for requesting a stop payment of a hardcopy check issued by IBM Employee
Disbursements.
"Do not use for Electronic Funds Transfer System (EFTS / Direct Deposit)"
Please provide the following information (any missing or incorrect information
may result in processing delays).
(* indicates required information)
Payee Name: *
Requestor's Name (if requestor is not Payee):
Serial Number: *
Employment Status : *
Payee's Phone Number:
Type of Check (Salary, O/T, etc.): *
Check Date, enter the approximate date the check was issued (Week ending date, etc.): *
Note: Date format is mm/dd/yy i.e. 10/31/00
Approximate Dollar Amount (NET estimate): $ *
Special Handling:
(Replacement check(s) will be sent to your work location unless otherwise specified).
Brief Reason for Replacement (Lost through office internal mail, never received,
destroyed, etc.):
NOTES:
1. A replacement check should be received within 5 to 10 business days from the submission date
of the Stop Payment/Reissue Request Form. If you don't receive your replacement check within 5 to
10 business days and you have not been contacted by IBM Employee Disbursements, please check
with your manager and/or Check Distribution Office for your replacement check.

2. If the original check is received after submitting a Stop Payment/Reissue Request Form or for
assistance in completing this form, please contact the IBM Employee Services Center at
1-800-796-9876.
DO NOT CASH THE ORIGINAL CHECK unless you have verified that this check has not been
stopped & reissued.
* Ensure you state on the form to journal the money to the V096 account
If due money, overpayment desk recovers the money in the calculation and cuts a check to the
employee or a note is sent to Paysep1, copying the separation rep. stating the employee is due money
and to close the CEDAR record. The folder needs to be forwarded to the appropriate Separation
person to handle.
Activity 10: Process Overpayment Transaction on NPS
A CC is processed to correct the employees earnings
* Do a CC to update the employees earnings:
1. A9Z (Calc Screen)
2. Serial Number
3. PF5
4. Type CC
5. PF1 - enter - tab
6. Tab and Type in Pay Period and Year when separated. Ex: If separation.
1/14/04 this is PP 1 for a regular employee. Thus, put in 01 04.
7. Put in the LD field (the first day of the overpayment).
8. Check Field current date.
9. Put in total Gross from the separation/overpayment for (opposite signs
from whats on the sheet.) (A CC when posted, will reverse all signs). Delete extraneous zeros in
this field.
10. Enter down to under ETV
a. Type in E (for earnings). and the ETV # Tab to the Amount column and
enter the amount.
* NOTE: Key in opposite signs as written on separation/over payment
form for all Es
* Type the Dept. & Div. information for all Es only)
* The LD date will automatically be populated with the same date as the
headers LD date when you hit enter. Thus if the date you need is
different, you must enter it manually.
Ex: 01031904 for January 3, 1904.
* Only enter the E564 figure once, in the CC again using the opposite
sign as written in the left-hand column.

* NOTE: E511 (vacation) and E510 (separation pay) must be entered as


E514 in the CC. In addition, E075 (unpaid absence) must be entered as
E001, if there is NO E001 in the calc. (These will need to be
changed to their proper ETV # before the CC is posted.)
b. T - (for taxes) Key in the same way as above except key the signs as written
separation/overpayment form, along with their respective
amounts.
* The department and division doesnt need to be inputted.
c. V - in net (total overpayment) Key in opposite signs (enter)

on the

* Net Amount # 096


* Dept or Div. not needed, PF 10 to Calc
* The system must say calc. successful at the bottom of the page. If not
look for your error, delete the entire CC by typing ** in the Prt/Del
field, (enter) and
reenter the CC from scratch.
* If a tax incorrect message appears and the amount is more than $.02 the
Taxes may have to be adjusted. (See section on FICA maxing for instructions.)
If the system says calc successful tax off
Go to the B5I screen to enter $$00m and see gross and tax amounts
also check the $$001 gross and tax amounts. The employees FICA may be off.
$$$0M Medicare Surtax base does not fill in when calculating (F10). Youll receive a tax incorrect
error. Go back to the tax and fill in the base. It will be the same Base amount as $$00M.
If FICA is correct continue and have the calculation audited.
Home - A9U - PF8
* PF 5 enter
* PF 3 back to the appropriate page to change 514 to 511 or 001 to 075
enter
* PF 10 to Calc.
AP2a Perform Overpayment Calculation Audit
3. Request audit of calc/recalc by process owner.
a) If calc successful - continue
b) If calc successful, tax incorrect $xx.xx Must check Social Security
& Medicare Tax percentages- If correct continue, if incorrect-change and attempt to recalc.
c) If error-crossfoot error Must review figures and correct where
appropriate & attempt to recalc.
Overpayment Calculation Audit Checklist:
Identify the following items are included in the overpayment folder:
Folder documentation checklist
10i

Calc Sheet
Request for overpayment recovery / Reason for overpayment recovery
Check query identifying overpayment
Batch history
Separation form
NPC97 report & corresponding stop pay where applicable (If stop has been
completed, identify that it has been applied to Cedar)
Items to identify for accuracy on Overpayment Calculation Sheet:
Ensure that overpayment Gross matches requested overpayment recovery
amount
Determine if there are any Gross recoveries that should be applied to
overpayment recovery. If VH is applied, determine that accrued VH time is correct based on
employees VED in Ceris and accrual tables.
If the calculation is based off a AWS schedule, identify that timecard submission and AWS
calendar are calculated correctly and matches batch output
Identify the employees State of residence. If CA, determine if employee is due any PC days in
conjunction with any VH due
Review tax calculations against Payroll output (A9 and/or W2C)
Ensure Net overpayment on P.1 of calc sheet matches P.2 of calc sheet
Validate the serial number and sep/loa date match 10i
Ensure that ETV codes and amounts correspond correctly based on P.1 of calc sheet and reason for
overpayment
If prior year, audit W2C for accuracy based on overpayment calculation
If correct, initial under Audited by section and date
Identify the Overpayment Reason code based on the overpayment
Open Cedar record, Screen 8, Enter date of Quest, P/F result in Quest result and Overpay Reason
code

If the calc is a result of a recalculation request, capture recalculated amount via Excel for
measurement purposes
Initial Overpayments Calc sheet
Sign W2C form (if required)
Return all documentation to O/P Calc Processor for completion - Activity 3 (A3)
Currently there is a 50% audit requirement on all calculations that are done daily. If the

calculation is correct, the folder is returned to the processor with the auditors initials and date.
Then the CC can be posted (Manila requests an audit from the US POC and will be approved to post

the CC entry if the audit passed)


AP3 UPDATE EARNINGS RECORD
Home - A9U - PF8
* PF 5 enter
* PF 10 to Calc
* PF 4 to Post
PRINT SCREEN ( 1 copy in folder)
CC is to establish sep receivable account for all overpayment greater then $50.
* NOTE: IF YOU MAKE A MISTAKE POSTING A CC CORRECT IT BY DOING A MC
REVERSING THE CC
If you find that a CC must be reversed after it is posted, re-key in the check and post the exact way
you did for the CC, only put MC in the type field. (The reason behind this is that all signs are
reversed when a CC is posted, but an MC remains the same.)
You can also process a CR (check reversal) to a CC if the two transactions are processed on the
same day.

DP1 - Data Input Errors Found?



YES Overpayment analyst is made aware of any input errors and corrects them
before any letters are generated
Mark P for passed audit in appropriate CEDAR section when information is accurate

AP4 FINALIZE RECORDS ON CEDAR


All employee folders are returned to the Overpayment Coordinator for calculation updating on
CEDAR.
Activity 11: Process tax adjustment on NPS

Process Overpayment Less Then $50 Net


* Current Year - Fit Adj (Federal Income Tax)
FIT ADJUSTMENT (T $$002):If when calculating an overpayment, the net over payment equals
$50.00 or less, an adjustment should be made to the fit in order to bring the net overpayment due
down to zero. Ex: Gross overpayment equals $100.00, deductions equals $80.00, thus net over
payment would equal $20.00. Since this is $50.00 or less, change the net to zero and increase the
amount being recouped from FIT by the $20.00.
NOTE: Check the B5I accumulator to make sure theres enough money in it to recover the additional
FIT ($$002).

The calc must calc successful before posting.


When the CC is done on the NPS to correct the employees earnings, the employees folder is
returned to the overpayments coordinator.
Activity 12: Prepare prior yr earnings adjustment (any/all prior year earnings)
Using the same earnings spread sheet only accounting for the Social Security and Medicare
figures calculate the overpayment net (taken from the MA calc created).
W2Cs are only processed after the overpayment has been recovered/written off.
You process a W2 correction if the overpayment occurred in a prior year.
You take the figures from the Excel spread sheet to fill out the W2 form.
Exhibit : W2overpay form

Fill in any appropriate lines that correspond to your Excel spread sheet amounts
The top part of the W2 form has to be filled out with the following information:
* Employee Name
* Serial Number (can be found on the 12I screen)
* Corp. Code (ex. 0A-13-0871985 for IBM
OI-13-3616592 for ISCC)
* The corporation can be found on either the 201 or 10I screen
* Account Code (leave blank)
* Office Charge (this is the dept. See 201 or 10I screens)
* Reason Code (use OPT for Over Payment)
Check JAT system to determine if a prior W2-C was processed.
Federal W2 Section:
* W2 Gross (FIT): Gross minus eligible pretax health care
* FIT Tax:
* SS Gross: Gross minus eligible pretax health care
* SS Tax: See if maxed. Gross times .062

Note: The W2 will only show FICA wages up to the maximum amount each year. For 2014, the
max was $117,000 (expect an increase each year). So if the year-to-date line under the taxable gross
base column is more than that amount, an analysis needs to be done to see if that W2 needs a FICA
adjustment.
* For example: In 2014, if the B5i FICA Wages ($$001) shows $123,000 and the persons
FICA accumulator should be reduced by 3,000 an adjustment does not have to be made on the W2
since the 123,000 minus the 3,000 overpayment would still equal more than the max. If the persons
overpayment is $20,000 - then FICA has to be reduced since $123,000 minus $20,000 equals

$103,000. In this case because of the fact that the W2 max shows $117,000 and now his FICA
earnings are $103,000, his FICA has to be reduced by $14,000, written as (14,000.00). In addition,
the taxes have to be reduced accordingly and the net overpayment must be adjusted to balance.
* Medicare Gross: Gross minus eligible pretax health care
* Social Security Tax: Gross times .062 (6.2%)
* Medicare Tax: Gross times .0145 (1.45%)
* 401k: If deductions on Separation Form shows as a plus put it on the
W2 form as a minus.
* GLI : Same as 401k
* DCSA: Same as 401k

NOTE:
There is a page in the W2 Correction Education Package that has a chart that will
explain which ETV Codes affect any of the earnings that need to have a REM Adjustment. This
chart also gives details for the Incentive Adjustment and Exec. Deferred Comp.
Incentive Pay Amount section:
* See Chart for W2 Retirement Earnings
* If none put a line through the box
Exec Deferred Comp section:
* See Chart for W2 Retirement Earnings
* If none put a line through the box.
When a W2 is printed, all amounts are positive. Thus, if an overpayment is being written, any
reduction has to be written in brackets (i.e. as a negative) on the W2. The health care goes in the
border of the upper right corner. If the person received Moving & Living (M & L) during the year, a
Combined W2 Correction form must be filled out and given to the M&L desk owner. Check for
Moving & Living by looking at the B4I screen to see if the person has any E650 or E651 earnings
for the year in question. If an adjustment needs to be made to the Moving & Living, he will return
the form with an adjustment form and the W2 Correction will need to be adjusted. If no adjustment
is needed, the original will be returned and he will write No change on the form. Any boxed area
that doesnt have any figures written in it, must have drawn a line through it.
* Also, complete the date the W2 correction is done, sign your name, the appropriate account in the
CHECK LOG space (Ex. RA for the receivable account.) and the amount.
The form must have all appropriate signatures to be processed
Once the W2 form is filled out give it to the Overpayments Process Owner to audit and to get all
signatures. Once it has passed audit and been returned with signatures, the folder is given to the
coordinator to put on Cedar and submit the W2 Correction to the tax department.
Activity 13: Prepare / Send Memo to file if appropriate

Prior Year - Memo To File

If the amount for W2 correction is $50.00 or less you must do a memo to file. It is not cost effective
to process a W2 for less than $50.00.
1. Go to your Word and open The Memo:
2. Fill in the form where needed.
Print the memo and give to the Overpayment Process Owner for audit. Then give the folder to the
Coordinator to close on Cedar. When updating Cedar, be sure to enter a Y on the main collections
screen under write-off? Change the payroll measurements code to a 3.
Activity 14: Finalize overpayment folder for completeness
Fill out the Audit Sheet (overpayment Documentation Check List)
* Make sure all appropriate print screens are included in folder
* Serial Number of Overpaid Employee.
* Check on the list.
* Initial and date the form. Add this to the folder.
* Return overpayment folder to the overpayment coordinator
The overpayment processor will place the completed calculations in the Cedar Update Bin in the
overpayment coordinators cabinet to be updated by her on CEDAR.
Activity 15 : Prepare / Send Weekly / Monthly Measurements Manila runs several queries as
required to pull together the appropriate measures