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Transcript of trash me
Pam Ramacciato, VP Payroll Services
Payroll related changes (direct, on-going deductions)
Tax related changes (tax mail, W4 changes, SUTA rate changes)
Government-issued items (child support orders, garnishment orders, income verifications)
New Client Coordinator
Payroll set up
Run first payroll
Human Resources and employee relations items
Implementation of BWC Programs (DFWP, PDP)
Creation of company handbook and job descriptions
Help clients maintain safe and compliant workplace.
*Once you run payroll your A.M will contact you
When you first join GMS, we are given a list of contacts for payroll with your company.
These are the people that we are authorized to speak with regarding payroll and/or payroll changes.
*Please do not give out your GMS payroll processor's contact information directly to your employees as they will be referred back to you.
1, 2, 3 Step Process
1. Payroll Submission
You will be trained on how to submit payroll through GMS' payroll web system. The deadline for this is always 3:00pm, three business banking days prior to your pay date.
Payrolls submitted after 3PM three business days before the pay date will have the date date bumped forward 1 bank business day.
3. Payroll Approval
After previewing your reports you have two options:
1. You may approve your payroll as it is for processing OR
2. You can postpone your payroll and enter your changes in the comments box before it is processed.
2. Payroll Review
You are notified via email when your payroll is available on the web for review. You will learn how to utilize the payroll review tab during your web training.
-Each pay period, GMS will sweep your payroll account for the total invoice amount 2 business banking days prior to your pay date.
-Payrolls submitted after 3pm on your run date will have the pay date bumped forward 1 bank business day unless other arrangements have been made with your processor.
-Should the full invoice amount not be available, your Account Manager will contact you with instructions to wire the funds for payroll.
-Our bank charges GMS for each returned item; a 3% charge will be added to your next invoice to cover these costs.
Funds Must Be Available By:
*You will see the full invoice amount during the payroll review process prior to the sweep of your account. At this time, if you need help in understanding your invoice, please contact your New Client Coordinator to walk through this with you.
GMS strongly encourages all clients to utilize the payroll web system when making employee, payroll, or HR related changes.
Utilizing the Payroll Web System
You will receive a 1.5 hour training during your setup, highlighting the following tasks that you can complete using our system:
Please feel free to log onto our demo website to preview what is in store for your web training:
in the top right corner click on "employer login"
GMS will only accept direct deposit information from a new client on GMS direct deposit or Global Cash Card forms.
Pre-printed checks (please do not use starter checks or deposit slips. Write the word VOID on the check.) Another options is a written letter signed by your bank with account and routing numbers.
Bank direct deposit form or a written letter signed by your bank with account and routing numbers.
*The payroll department uses account and routing numbers to electronically transfer payroll funds directly to your account.
- Failure to verify accuracy of account information with your financial institution will cause delays or improper transfer. If a deposit is returned to GMS due to incorrect information or a closed account, we will deduct a $3 bank fee to your next pay.
- If you are a Paperless client and you do not have this information to your New Client Coordinator by the first payroll run, you will have to pay $20 shipping fee for each payroll run until we do receive the proper direct deposit information.
Garnishments, Child Support Orders, and Income Verifications
GMS Payroll will handle the administration of employee garnishment and child support orders. For each garnishment/order, the employee will have an additional deduction of $2.00 for administration as allowed by state law.
Should you receive new or updated garnishments or child support orders please fax them directly to your payroll processor's attention. With our co-employment relationship, we will periodically receive these orders directly and send copies for your records.
GMS Payroll will also handle the completion of various income verification paperwork frequently sent by City, State, and County agencies. Please fax any of these forms directly to your payroll processor for completion.
Understanding Your Payroll Taxes with GMS
If you join GMS any time other than January 1st of a given year, you need to understand what the transition will be for each type of tax.
The liability to file taxes
switches from your Federal ID number to GMS's Federal ID
number commencing the first check date with GMS. GMS assumes responsibly to file all Federal, State, and Local withholding taxes from that day forward.
State unemployment stays on your unemployment ID.
GMS is allowed to file a return on your behalf. The return must be filed with your unemployment number. You are responsible for reporting any rate changes received from ODJFS or any other state's unemployment agency to a GMS representative.
GMS does tax adjustments
in our system for what you have paid YTD for SUI, so you continue accumulating credit towards the tax threshold.
We cannot give credits for FUTA and FICA.
You will start over accumulating credit toward the thresholds due to the change in Federal ID.
If you or any of your employees make at or over the $117K threshold, GMS recommends that you remain on your own tax ID until the end of the year.
If you do remain on your own ID, you will receive returns on your ID through the end of the year that your started running payroll.
Additional Medicare Tax:
under a provision of the Patient Protection and Affordable Card Act, beginning in 2013, the employee-paid portion of the Medicare FICA tax became subject to the
Additional Medicare Tax. An employer must withhold the Additional Medicare Tax from the wages or compensation it pays to an employee in excess of $200,000 in a calendar year.
Federal Unemployment Tax Act
FUTA Credit Reductions for 2014
Employers in many states will be responsible for paying additional FUTA tax as their states were not able to pay off Title XII loans to the IRS. Title XII loans are essentially funds that a state may borrow from the US Government to fund insolvent unemployment accounts.
The states use the loaned money to continue to pay unemployed workers.
Each state has two years to pay off their loans. If the state forfeits on the loan, employers in that state are required to pay additional FUTA tax. The additional tax due the first year is .3% of FUTA taxable wages, maxing out at $21 per employee. Each year a state continues to maintain a balance, the rate increases by an additional .3%. According to the laws set forth by the IRS, we are billing our clients accordingly.
Ohio tax rates for 2014 have been increased by 1.2%
(4 years = .3%+.3%+.3%+.3%) to accommodate the additional FUTA tax. You will notice that
FUTA will be taxed at 1.8% when running payroll with GMS.
Lastly, since many companies are collecting FUTA at the federal rate of .6%,
we will invoice you for the amount of difference between this federal rate and the Ohio rate of 1.8%.
If the State of Ohio pays off their Title XII loans to the IRS by Nov. this amount will be credited back to you.
If all of the members of a multi-member limited liability company that has not elected to be treated as a corporation are individuals, the members shall be treated as partners. Services performed by a family member of any individual member of the limited liability company shall not constitute covered employment with the limited liability company if the relationship of each individual member of the limited liability company to the family member meets the requirements of division (B)(3)(f) of section 4141.01 of the revised code.
Please double check with your paid accounting service if you have any questions about this ruling.
They will receive one from GMS for the time frame that they joined us. This W2 will have GMS as the employer and include our Fed ID.
They will receive a W2 for the period prior to joining GMS. This W2 will have your company name and Federal ID.
Once processed, you may obtain copies of your employees’ W2s for any year processed with GMS through the website.
Your employees may receive two sets of W2s for the year. They will be mailed directly to the employee’s home.
You must contact your payroll manager if you need an alternate delivery method. W2’s will be made available to you at the same time we send them out to the employees. Check the GMS website in January for W2 availability.
You should notify GMS immediately if you receive a set of W2’s from your prior payroll processor. Duplicate filing may occur if we are not made aware.
Filing Your 941
If GMS is providing your 941 form for you, GMS will mark this form as final.
If GMS is NOT providing the 941 for you,
you should mark your last 941 as final in Part 3, number 16
. Enter the last check date with your prior payroll company.
You can also file a zero return while you are with GMS. This zero return should have box 4 checked and box 16 checked with a date in the next one. This will alleviate future notices from the IRS.
Contact your payroll processor for assistance in filling out these forms if you have questions.
GMS cannot sign your Federal tax returns or correspondence.
Filing Your 940
You should also mark your 940 as final.
You can also file a zero return while you are with GMS.
Follow the same suggestions as above.
If GMS is providing this form, than GMS will mark as final.
GMS cannot sign your Federal tax returns or correspondence.
Local Tax Packet
During the conversion phase, you will be receiving an email from us that includes a letter for each local tax agency that you ran payroll in prior to running your first payroll with GMS. These letters will be used to inactivate your payroll withholding accounts with multiple tax agencies (if applicable).
Each letter must be signed and mailed to each agency by the date listed in the email from your New Client Coordinator to avoid potential tax notices, penalties and interest. You or your paid accounting firm are still responsible for any license or profit tax requirements
If you join Group Management Services any time other than January 1st, it is important that we receive a recap of your taxes for the time before GMS. This will allow us to accurately generate your returns.
We need all payroll taxes (both employee and employer taxes) that have been accrued so far this year.
We will also need to know what has been paid up to your first check date with GMS so that we can help you account for any unpaid liability as a result of your transition.
If you join GMS mid-year, we will need your taxes (employee and employer) broken down by payroll; this means the total liability amount for each payroll tax FOR EACH CHECK DATE run for the year.
We also need to know if any taxes will be refunded by your previous payroll company and what taxes you will need GMS to bill and pay on your behalf.
If no notification is received by GMS regarding refunded amounts, it is assumed that prior taxes have been paid in full.
You will be working with your New Client Coordinator to account for your prior payroll taxes.
provide GMS with a tax summary report,
you will be issued a certified letter notifying you that GMS will not be responsible for providing your returns for anything prior to your first check date with GMS.
Employees are subject to local tax for where they physically work and where they reside. Employers
withhold and remit tax for where the employee works, but has the option to collect local tax for where they live. Taxes are based upon gross wages minus Café 125 deductions. Reciprocity is a term that describes the taxing relationship between jurisdictions where an employee works and lives. Some residential jurisdictions will allow a credit if an employee pays tax to a jurisdiction in which he/she works.
1. An employee works in a local where he/she pays 2% of gross wages.
2. He/She also lives in a 2% local.
3. If the residential local offers a 50% max credit, the employee is required to pay 1% of gross wages to the city they live in.
If eligible, your Workers’ Compensation coverage with GMS begins on the
day of your first payroll run not on the day that you signed the contract. Anything before that first check date is your responsibility to pay.
GMS begins reporting payroll to the BWC as of the date of your first check run.
All other States
If you are on GMS’s Non-Ohio Policy we will collect your premium for your Workers’ Compensation coverage which begins on the day of your first payroll run. GMS begins reporting payroll to the BWC as of the date of your first check run. However, we do not manage any non-Ohio claims.
If you are on your own out of state policy GMS does not collect any premium and it does not manage any claims.
If you are Full to GMS then you are no longer considered an officer of the company and cannot take a cap. If you are fully on your own policy you can take a cap.
CAN TAKE A CAP
: Fully on your own policy or if you are under a manual class that stays under your policy (partial transfer).
CAN’T TAKE A CAP
: If you are fully on GMS’s policy or if you are under a manual class that is under GMS’s policy (partial transfers)
GMS can’t make payments on your behalf unless we are the agent of record for your healthcare plan. If you stay with your current health care agent from another company we will credit back the money that was deducted from your employee’s paychecks (if applicable) on your invoice each payroll. You will see this amount under the “Agency Credits” line. You will be responsible for making the payments each month. If you would like GMS to administer this then you can either give us the Agent of Record or sign up for GMS healthcare. If this is something that you are interested in please notify your NCC or Account Manager.
If you currently have any pretax benefits that are being deducted from your employee’s checks we will need a copy of your Section 125 plan (or the first 9-12 pages which is the adoption plan) in order to continue to deduct those as pretax.
If you do not provide this to us before your first payroll run, these deductions will be taken as post-tax until we can receive a copy of the plan
. If you want a plan from GMS we are able to create one for you/or update your current plan if it has not been updated in the last few years (updated with the new ACA rules).
The IRS and DOL require it in order to get the pre-tax benefit. Tax law requires a section 125 plan in order to receive the tax benefit. If the client is audited and no plan exists, then the agency will go back and assess the employees and employer for back taxes and penalties.