Payroll and Fringe Benefits Presentation Overview
PAYROLL & FRINGE BENEFITS
ISHA GUERRERO & JOEL LEVENSON
Presentation on 04/12/2016
Payroll Agenda
•
Tax Documents
•
Payroll Processing
•
Best Practices
•
Security
•
Future Projects
•
FAQs
•
Payroll Team Update
Tax Documents
549 1042-S forms for 2015
•
What is a 1042-S?
•
Mailed 03/10/2016, postmark deadline 03/15
•
535 individuals
•
14 companies
Tax Documents
15,214 W-2s for 2015
ELECTRONIC – 10,144
•
Released on 01/13
•
One time sign up and
done for all future years
(can print duplicate
copies)
PAPER – 5,070
•
Postmarked on
01/30/16
•
Duplicate requests
honored after 02/15
Employee Self Service > Payroll and Compensation > W-2/W-2c Consent
HR Assessment
•
Increase Electronic W-2 usage
•
Survey to non-consenters
•
Ideas to increase participation:
–
Use survey results
–
Targeting new hires
–
Emailing terminated individuals
–
Ask for HR Liaison assistance
Payroll Processing
•
Payroll Schedules and
Calendars
•
HR website
•
Click on A-Z Index
•
Scroll down to P
Payroll Processing
Best Practices….
1. Use a personal holiday
before comp time, and
comp time before annual
leave.
2. Distribute LAPERs to all
employees AND get them
returned (or at least an
email).
3. Communicate with
supervisors.
Security
•
Bad hackers!!
•
Tips
–
NID and password kept
secure
–
Personal email address
type
–
Periodically check
Employee Self Service
Information
–
Strong Password updates
Future Projects
•
Employee Self Service Timesheets
–
what happened?
•
Dual Compensation Workflow….coming soon
•
FLSA Changes….AGHHH!!
•
HR Salary Supplement Form…later
Recent FAQs
•
Staff Council Attendance – leave or work
time?
•
What is Pretax Assessment (aka FICA Savings)?
–
Account code 711551 and 711552
Who To Contact
•
Contact HR Team button
–
http://hr.ucf.edu/
•
payroll@ucf.edu
•
407.823.2771 phone
•
407.823.0582 fax
Questions…
What is Taxable
Overview of Fringe Benefits
Common Fringe Benefits Provided by Universities
De minimis, working condition
Educational assistance
Case Studies
Starts with Internal Revenue Code (IRC) §61.
“Except as otherwise provided in this subtitle, gross
income means all income from whatever source
derived…” Goes on further to specifically include fringe
benefits in income.
Regulations further state, “income realized in any form,
whether in money, property or services.”
Supreme court defines income as, “undeniable
accessions to wealth, clearly realized, and over which
the taxpayer has complete dominion.”
What about Gifts?
§102 excludes gifts from the definition of gross income,
but goes on further to state that any amount transferred
by or for an employer to, or for the benefit of an
employee is not excludable.
Fringe benefits may be taxable or not.
Examples of taxable benefits:
▪
Employer provided automobile, use of employer provided
aircraft, employer provided vacation, etc.
Examples of non-taxable benefits:
▪
Qualified tuition discounts, de minimis benefits, working
condition benefits, etc.
Some of the taxable benefits may be determined to be
non-taxable, depending on the facts & circumstances.
§132 contains a listing of non-taxable fringe
benefits including, but not limited to:
No-additional-cost service;
Qualified employee discount;
Working condition fringe;
De minimis fringe;
Qualified transportation fringe;
Qualified moving expense reimbursement, etc.
No-additional-cost service
Any service provided by an employer to an employee if
such service is offered for sale to customers in the
ordinary course of the line of business in which the
employee is performing services, and the employer
incurs no substantial additional cost (including forgone
revenue) in providing such service.
Example:
▪
Janitor for CFE Arena receives a ticket to an event, when the
event is not sold-out.
Qualified Employee Discount
Any employee discount with respect to qualified property or
services to the extent that the discount does not exceed:
▪
In the case of property, the gross profit %.
▪
In the case of services, 20% of the arms-length price.
Qualified property or services are those offered for sale to
customers in the line of business in which the employee is
performing services.
Example:
▪
Dell computers sells a PC to an employee salesman for a 20%
discount. The gross profit % of this PC is 30%.
Working Condition
Any property or services provided to an employee of the
employer to the extent that, if the employee paid for
such property or services, such payment would be a
trade or business expense.
Example:
▪
On-call computer tech is provided a cell phone.
De Minimis
Any property or service the value of which is so small as
to make accounting for it unreasonable or
administratively impracticable.
Frequency must be considered.
$100.00 is not de minimis.
Example:
▪
Coffee & doughnuts is provided to the office the Friday before a
holiday.
Qualified Transportation Fringe
Any of the following provided by an employer to an
employee:
▪
Transportation in a commuter highway vehicle, if such
transportation is between the employee’s residence and work
(think van pooling)
▪
Any transit pass
▪
Qualified Parking
▪
Qualified bicycle commuting reimbursement
Example:
▪
Employee works in downtown Orlando. Parking is $200 per
month in the garage. Employer pays for parking.
Qualified Moving Expense Reimbursement
Any amount received by an individual from an employer
as a payment for or reimbursement of expenses that
would be deductible as moving expenses.
Example:
▪
New hire employee is moving to Orlando from Tennessee.
Employer reimburses the cost of new hire’s qualified moving
expenses.
Qualified Tuition Reduction
The amount of any reduction in below graduate level
tuition provided to an employee of an educational
organization.
▪
Graduate teaching and research assistantships are eligible for
graduate level tuition reductions.
Example:
▪
Employee of UCF decides to enroll in undergraduate classes.
Educational Assistance Programs
Up to $5,250 of amounts paid or expenses incurred for
the educational assistance by an employer for an
employee.
▪
Educational assistance includes tuition, fees, books, supplies,
equipment.
▪
Does not include tools or supplies retained by the employee
after completion of a course, meals or lodging.
▪
Does not apply to courses or other education in sports, games
or hobbies.
Example:
▪
Employee of UCF decides to enroll in graduate classes.
Meals & Lodging
Must be furnished for the convenience of the employer,
furnished on the business premises of the employer and
in the case of lodging, be required of the employee to
accept the lodging.
▪
The convenience of the employer requirement is where most
reviews take place.
Example:
▪
Resident Assistant lives on-campus and is provided with a meal
plan.
Employee works in the recreation & wellness
center. An upcoming concert is not sold out and
the industry forecast predicts that the concert will
not sell out. A week prior to the concert, employee
is given a ticket to the concert for free. Ticket sells
for $150.
Taxable?
Employee resident assistant works on-campus and
is provided a polo to wear. Polo is black, has the
UCF insignia on it and states “Housing and
Residence Life” on the polo. Polo costs $45.
Taxable?
Prior slide – Working condition because it’s a
uniform?
In order for clothing / uniforms to be deductible
they must meet two criteria:
Specifically required as a condition of employment; and
Not adaptable to general usage as ordinary clothing.
Examples:
Uniforms of police officers, firemen, letter carriers,
nurses, bus drivers and railway men.
Supervisor gives $50.00 gift card to student
employee for their extraordinary performance over
a semester.
Taxable?
University administrator and spouse fly to Alabama
for a university football game. Round trip airfare is
$1,600 for both administrator and spouse.
Taxable?
Non-Cash Fringe Benefits Form
http://hr.ucf.edu/files/Non_Cash_Fringe_Benefits.pdf
Request to Record Non-Cash Items
http://hr.ucf.edu/files/RequestRecordNon-Cash-Item.pdf
IRS Pub. 15-B; Employer’s Guide to Fringe Benefits
http://www.irs.gov/pub/irs-pdf/p15b.pdf
Contacts:
UCF Tax – A division of Finance & Accounting
Joel Levenson 2-0235
Meghan McCollum 2-1013
Good morning.
Welcome to the session on Payroll and Fringe Benefits. We’re glad you decided to join us today. My name is Isha Guerrero. I’ve been working at UCF, in Human Resources, for almost 17 years in various capacities. My current role is Assistant Director of Payroll Services. Joel, would you introduce yourself?
If you learn nothing from our presentation today, please be sure that you remember this important piece of information. Joel and I work closely together on several different matters that cross both of our offices – in particular, when it comes to whether a payment is a stipend or wages, or independent contractor or employee – he and I are like your mom and dad – a united front.
This presentation on Payroll and Fringe Benefits covers various topics such as tax documents, payroll processing best practices, security measures, future projects, HR assessment, and more. It includes details on tax forms, W-2s, electronic filing, HR assessments, payroll schedules, best practices, security tips, and upcoming projects related to employee self-service and compensation. The content emphasizes the importance of proper payroll management and compliance with regulations.
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Presentation Transcript
Presentation on 04/12/2016 PAYROLL & FRINGE BENEFITS ISHA GUERRERO & JOEL LEVENSON
Payroll Agenda Tax Documents Payroll Processing Best Practices Security Future Projects FAQs Payroll Team Update
Tax Documents 549 1042-S forms for 2015 What is a 1042-S? Mailed 03/10/2016, postmark deadline 03/15 535 individuals 14 companies
Tax Documents 15,214 W-2s for 2015 ELECTRONIC 10,144 Released on 01/13 One time sign up and done for all future years (can print duplicate copies) PAPER 5,070 Postmarked on 01/30/16 Duplicate requests honored after 02/15 Employee Self Service > Payroll and Compensation > W-2/W-2c Consent
HR Assessment Increase Electronic W-2 usage Survey to non-consenters Ideas to increase participation: Use survey results Targeting new hires Emailing terminated individuals Ask for HR Liaison assistance
Payroll Processing Payroll Schedules and Calendars HR website Click on A-Z Index Scroll down to P
Best Practices. 1. Use a personal holiday before comp time, and comp time before annual leave. 2. Distribute LAPERs to all employees AND get them returned (or at least an email). 3. Communicate with supervisors.
Security Tips NID and password kept secure Personal email address type Periodically check Employee Self Service Information Strong Password updates Bad hackers!!
Future Projects Employee Self Service Timesheets what happened? Dual Compensation Workflow .coming soon FLSA Changes .AGHHH!! HR Salary Supplement Form later
Recent FAQs Staff Council Attendance leave or work time? What is Pretax Assessment (aka FICA Savings)? Account code 711551 and 711552
Who To Contact Contact HR Team button http://hr.ucf.edu/ payroll@ucf.edu email 407.823.2771 phone 407.823.0582 fax
What is Taxable Overview of Fringe Benefits Common Fringe Benefits Provided by Universities De minimis, working condition Educational assistance Case Studies
Starts with Internal Revenue Code (IRC) 61. Except as otherwise provided in this subtitle, gross income means all income from whatever source derived Goes on further to specifically include fringe benefits in income. Regulations further state, income realized in any form, whether in money, property or services. Supreme court defines income as, undeniable accessions to wealth, clearly realized, and over which the taxpayer has complete dominion.
What about Gifts? 102 excludes gifts from the definition of gross income, but goes on further to state that any amount transferred by or for an employer to, or for the benefit of an employee is not excludable.
Fringe benefits may be taxable or not. Examples of taxable benefits: Employer provided automobile, use of employer provided aircraft, employer provided vacation, etc. Examples of non-taxable benefits: Qualified tuition discounts, de minimis benefits, working condition benefits, etc. Some of the taxable benefits may be determined to be non-taxable, depending on the facts & circumstances.
132 contains a listing of non-taxable fringe benefits including, but not limited to: No-additional-cost service; Qualified employee discount; Working condition fringe; De minimis fringe; Qualified transportation fringe; Qualified moving expense reimbursement, etc.
No-additional-cost service Any service provided by an employer to an employee if such service is offered for sale to customers in the ordinary course of the line of business in which the employee is performing services, and the employer incurs no substantial additional cost (including forgone revenue) in providing such service. Example: Janitor for CFE Arena receives a ticket to an event, when the event is not sold-out.
Qualified Employee Discount Any employee discount with respect to qualified property or services to the extent that the discount does not exceed: In the case of property, the gross profit %. In the case of services, 20% of the arms-length price. Qualified property or services are those offered for sale to customers in the line of business in which the employee is performing services. Example: Dell computers sells a PC to an employee salesman for a 20% discount. The gross profit % of this PC is 30%.
Working Condition Any property or services provided to an employee of the employer to the extent that, if the employee paid for such property or services, such payment would be a trade or business expense. Example: On-call computer tech is provided a cell phone.
De Minimis Any property or service the value of which is so small as to make accounting for it unreasonable or administratively impracticable. Frequency must be considered. $100.00 is not de minimis. Example: Coffee & doughnuts is provided to the office the Friday before a holiday.
Qualified Transportation Fringe Any of the following provided by an employer to an employee: Transportation in a commuter highway vehicle, if such transportation is between the employee s residence and work (think van pooling) Any transit pass Qualified Parking Qualified bicycle commuting reimbursement Example: Employee works in downtown Orlando. Parking is $200 per month in the garage. Employer pays for parking.
Qualified Moving Expense Reimbursement Any amount received by an individual from an employer as a payment for or reimbursement of expenses that would be deductible as moving expenses. Example: New hire employee is moving to Orlando from Tennessee. Employer reimburses the cost of new hire s qualified moving expenses.
Qualified Tuition Reduction The amount of any reduction in below graduate level tuition provided to an employee of an educational organization. Graduate teaching and research assistantships are eligible for graduate level tuition reductions. Example: Employee of UCF decides to enroll in undergraduate classes.
Educational Assistance Programs Up to $5,250 of amounts paid or expenses incurred for the educational assistance by an employer for an employee. Educational assistance includes tuition, fees, books, supplies, equipment. Does not include tools or supplies retained by the employee after completion of a course, meals or lodging. Does not apply to courses or other education in sports, games or hobbies. Example: Employee of UCF decides to enroll in graduate classes.
Meals & Lodging Must be furnished for the convenience of the employer, furnished on the business premises of the employer and in the case of lodging, be required of the employee to accept the lodging. The convenience of the employer requirement is where most reviews take place. Example: Resident Assistant lives on-campus and is provided with a meal plan.
Employee works in the recreation & wellness center. An upcoming concert is not sold out and the industry forecast predicts that the concert will not sell out. A week prior to the concert, employee is given a ticket to the concert for free. Ticket sells for $150. Taxable?
Employee resident assistant works on-campus and is provided a polo to wear. Polo is black, has the UCF insignia on it and states Housing and Residence Life on the polo. Polo costs $45. Taxable?
Prior slide Working condition because its a uniform? In order for clothing / uniforms to be deductible they must meet two criteria: Specifically required as a condition of employment; and Not adaptable to general usage as ordinary clothing. Examples: Uniforms of police officers, firemen, letter carriers, nurses, bus drivers and railway men.
Supervisor gives $50.00 gift card to student employee for their extraordinary performance over a semester. Taxable?
University administrator and spouse fly to Alabama for a university football game. Round trip airfare is $1,600 for both administrator and spouse. Taxable?
Non-Cash Fringe Benefits Form http://hr.ucf.edu/files/Non_Cash_Fringe_Benefits.pdf Request to Record Non-Cash Items http://hr.ucf.edu/files/RequestRecordNon-Cash-Item.pdf IRS Pub. 15-B; Employer s Guide to Fringe Benefits http://www.irs.gov/pub/irs-pdf/p15b.pdf
Contacts: UCF Tax A division of Finance & Accounting Joel Levenson 2-0235 Meghan McCollum 2-1013
