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Department :
Organization :
H701
IBM US Payroll
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.
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)
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
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 #
PAY
NAME:
BATCH
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
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
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
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.
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.
on the
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
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
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