Document was added or contains edits (highlighted in yellow) made since the initial release of the Q4 QE Packet
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First Dayforce year-end? Start with these sections.
QE Packet - Q1Ceridian Dayforce
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February
06 Wed B) Review latest quarterly tax statement
08 Fri C) Make funds available for state-ment balance due, if applicable
17 Mon A) Holiday - Federal Reserve closed
March
13 Fri
D) Forward SUI rate notices, agen-cy preprinted returns, and agency credit memos
E) Forward requests to inactivate jurisdictions to CTS
F) Resolve tax code fallouts
G) Forward valid tax ID numbers and/or registration forms
H) Review your customer snap-shot and tax code profile on STO
I) Resolve all processing and wage and tax audit messages
16 Mon J) Last day to submit mid- quarter data
24 Mon L) Commit payrolls with a pay date of March 27-29
25 TueL) Commit payrolls with a pay date of March 30
26 WedL) Commit payrolls with a pay date of March 31
27 FriK) TPSP: Input data into Dayforce
N) Finalize current quarter
April09 Tue O) Last day to resolve QE variances
20 Mon A) Holiday - Ceridian closed
Quarter-end checklist
Q1 target datesThis calendar can guide you to a successful quarter-end processing.
A) Holiday: Federal Reserve and/or Ceridian closed. Fund tax liabilities/pro-cess payroll earlier as needed. See payroll holidays.
B) Review latest quarterly tax statement for debit/credit balances. For a debit balance, fund your account in two days. For a credit balance, complete the ‘Re-fund Request Form’ sent with your quarterly tax statement.
C) Make funds available for the quarterly tax statement balance draft, if applica-ble. Your quarterly tax statement contains the date when funds should be available.
D) Forward SUI rate notices to CTS. Include agency preprinted returns, credit memos, and frequency changes. See agency pre-printed forms and notices.
E) Forward requests to inactivate jurisdictions to CTS by this date to process this quarter.
F) Resolve tax code fallouts. CTS sends notifications of tax data received for jurisdictions that are not setup or are inactive. Collected taxes are not deposit-ed until we receive verification. Return the completed fallout notification with supporting documentation to CTS. See tax code fallout process.
G) Forward valid tax ID numbers and/or registration forms for any ‘applied-for IDs’. Agencies may only process deposits/returns with a valid tax ID. Review CTS fax/emails to ensure you have requested an ID from the agency. Send completed fallout notifications with documentation to CTS. See applied-for ID chart.
H) Review your customer snapshot and tax code profile in STO. Regularly review this snapshot of your jurisdictional profile. Check if rates, tax IDs, deposit frequencies, and other data are correct.
I) Resolve all processing and wage and tax audit messages in Dayforce. Resolv-ing these prior to QE will ensure accurate agency filings and prevent amendments.
J) Last day to submit mid-quarter data - Did you join our service after the cur-rent quarter’s first pay date? CTS must have complete tax reporting data for the current quarter on file to ensure the accurate and timely filing. Fees, penalties, and interest are your responsibility. See looking for missing data.
L) Commit payrolls with a pay date of March 26-31. Commit all payrolls three business days before the pay date. Late commits result in untimely tax deposits and accrue agency penalty and interest.
K) TPSP: Input data into Dayforce. Request quarterly TPSP reconciliation forms from your provider.
N) Finalize current quarter. Commit all pay runs by March 27 by 1:00 p.m. local time. Commits after this deadline will not be included in the quarterly totals sent to CTS and will result in amendments. Contact CTS if you need to commit a payroll after this deadline to discuss available options.
O) Last day to resolve QE variances. CTS will advise you of variances between pe-riodic and quarterly data. Promptly authorize CTS to debit funds for additional taxes due.
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Payroll holidaysThe table below contains a list of the holidays observed by Ceridian and/or the Federal Reserve. Your bank’s and courier’s schedules may vary. Use this table to determine if your commit dates and/or pay dates need to change. As always, Ceridian must receive your payroll by 1:00 p.m. local time to guarantee next day delivery. After 1:00, checks/deposit advices sent via courier or USPS may ship on Ceridian’s next business day.
• For pay dates on a bank holiday:o Change your commit date and pay date to pay employees either before or after the holidayo If you do not make pay date changes then payments will post on the first business day after the bank
holiday.
• For each pay date within three banking days of a holiday, commit your payroll and fund your tax deposits one day earlier than usual to avoid late fees
• If your normal commit date falls on a bank holiday:o And Ceridian is closed, then commit your payroll/fund your tax deposits one business day
earlier to avoid late feeso And Ceridian is open, then no change is needed
Make changes to your payroll-processing schedule by navigating to Pay Setup > Pay Group > Pay Calendars. For ques-tions or assistance, contact your Payroll Support team.
Holiday Day Date Ceridian Fed. Reserve
New Year’s Day Wednesday 01/01/20 Closed Closed
Martin Luther King Jr Day Monday 01/20/20 Closed Closed
Washington's Birthday Monday 02/17/20 Open ClosedGood Friday Friday 04/10/20 Closed Open
Memorial Day Monday 05/25/20 Closed Closed
Independence Day (observed) Friday 07/03/20 Closed Open
Independence Day * Saturday 07/04/20 Closed Closed
Martin Luther King Jr Day Monday 01/18/21 Closed Closed
We hope all of your holidays are both safe and enjoyable!
*For holidays falling on Saturday, the Federal Reserve will be open the preceding Friday. Federal Reserve holidays never occur for two consecutive business days. Branch schedules may vary.
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January S M T W T F S 29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25 26 27 28 29 30 31 1
U.S. annual schedule at a glance 2020
Record your pay period numbers in the space provided to the left of each week as a reminder of your next payroll processing.
Ceridian and Federal Reserve are closed Federal Reserve is closed/Ceridian is open Ceridian is closed/Federal Reserve is open
June S M T W T F S 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
28 29 30 1 2 3 4
July S M T W T F S 28 29 30 1 2 3 4* 5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1
August S M T W T F S 26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29 30 31 1 2 3 4 5
September S M T W T F S 30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3
October S M T W T F S 27 28 29 30 1 2 3 4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
November S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5
December S M T W T F S 29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 24 25 26 23
27 28 29 31 1 2 30
*For holidays falling on Saturday, the Federal Reserve will be open the preceding Friday. Federal Reserve holidays never occur for two consecutive business days. Branch schedules may vary.
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ACA configurationReview the following benefit plan setups in preparation for generation of Forms 1095-C.
Performing the Auto-Fill taskThe Auto-Fill task generates Forms 1095-C for employees who had an active status during the reporting year. Dayforce will ask questions during the process to ensure your tax forms have the correct coding.
Path: PPACA > Year End Process > select 2020 > click Open Year > click Auto-Fill
Select Task: After clicking Auto-Fill on the Overview screen, you must select either Generate PPACA Year End data or Generate for new Employees only. The first time you run the Auto-Fill task, you should select Generate PPACA Year End data. Next, you must select the Offered Coverage Method.
Offered Coverage Method: Once you click on the Select an Option drop down, determine which method to use for reporting the proper coding.
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Qualifying Offer: Code Series 1 will populate Line 14 of the tax form.
Apply code 1A:
• If minimum essential coverage, providing minimum value, was offered to full-time employees, their spouses, and their dependents.
• If this coverage was affordable so that the Employee Required Contribution (employee contribution of self-on-ly coverage) equal to or less than 9.5% (as adjusted) of mainland single federal poverty line
Apply codes 1B, 1C, 1D, or 1E to employees who were offered coverage. Selecting this option requires ACA re-portable data for the entire year to accurately determine offered coverage code.
Apply code 1J or 1K if Spouse Coverage Offer is conditional (for example, an offer to cover an employee’s spouse only if the spouse is ineligible for coverage under Medicare or a plan sponsored by another employer).
Once you have made your selections you will then click Start Task to begin the process.
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Verify Health Plan Properties prior to Auto-Fill task• Self Insured. Checking this box populates Part III of the Form 1095-C with covered individuals, including the
employee and dependents. If this box is checked after the initial Auto-Fill task has run, you must run the Au-to-Fill task again to populate covered individuals.
• Subject to ACA Reporting. For Dayforce to generate proper coding, this box must be checked prior to provid-ing the OE for the year. It must remain checked throughout the year. Checking this box later in the year might not generate the coding as expected.
Path: Benefits Setup – Plans and Options > Health > select Plan > General panel
Verify Waive Medical checklist prior to Auto-Fill task• Waived Option. For Dayforce to generate proper coding, this box needed to have been checked prior to
providing the OE for the year. It must remain checked throughout the year. Checking this box later in the year might not generate the coding as expected.
• PPACA Waived Option. Applicable for 1A reporting only. For Dayforce to generate proper coding, this box must be checked prior to providing the OE for the year. It must remain checked throughout the year. Checking this box later in the year might not generate the coding as expected.
Path: Benefits Setup – Plans and Options > Health > select plan and plan option > General tab
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Benefits training Open enrollment is coming! Begin your company’s benefit year on the right track and leverage the capabilities of Dayforce.
Prior to beginning the open enrollment process, your open enrollment administrator should have completed the rec-ommended benefits training and reviewed the available resource materials.
Benefit training is available to all Dayforce Live members.
• If you have a Dayforce Live membership, but have forgotten your login credentials, email [email protected]• If you do not have a Dayforce Live membership, contact your AE or CRE to discuss signing up • A Dayforce Live membership can only be registered to one person at a time and cannot be shared
Here’s how Dayforce Live members can get started with their training:
Step 1: Complete benefits trainingPrerequisites: Understanding How an Employee uses Dayforce Benefits, Administering Employee Benefits, Setting up Self-Service Workflows and Managing Forms, and Setting Up Benefit Plans
Once logged into your Dayforce Live account on the Ceridian Education Center, register for the Creating Benefit En-rollments and Automated Processes video.
This is a two-hour course that will provide the foundational knowledge to understand the key features discussed in open enrollment training. Work through a series of hands-on activities to learn how to create the necessary enroll-ments, associate forms with work flows, set up the work flows that are needed to process the forms, and much more.
Step 2: Attend open enrollment (OE) trainingPrerequisite: Understanding How an Employee Uses Dayforce Benefits, Administering Employee Benefits, Creating Benefit Enrollments and Automated Processes, and Setting Up Benefit Plans
Once logged into your Live Membership account, register for a Maintaining Your Benefits Setup for Open Enrollment virtual training session.
This is a 5.5-hour hands-on class. Work through hands-on activities to learn how to prepare your Dayforce environ-ment for OE. Training topics will cover:
• Preparing for OE. Introduces a suggested time line with key milestone tasks to be completed to prepare for an OE.• Reviewing and updating benefits setup. Describes the tasks required to implement OE. Where to configure
changes to plans, options, eligibility, and enrollments.• Finalizing OE. Covers the three tasks necessary for wrapping up OE – testing, recalculating benefit plans, and
improving the strategy for next yearNote: A recorded video for Maintaining Your Benefits Setup for Open Enrollment will be available in October 2019 for those who simply need a refresher. The video is a demo and does not include any interactive hands-on activities.
Resources and supportOn the Ceridian Support Portal, navigate to Knowledge Base > Reference Materials > Admin and User Guides > Release XX Admin Guides to access a variety of supporting guides, such as:
Compliance chartsPower of Attorney (POA) guidelines with Third Party Administrator (TPA) designation for U.S. state agenciesBelow is a list of agency POA requirements:
• Agency POA. Special handling of their POA forms.• Standard POA. Generic Ceridian POA (No state name or state ID) is used for these agencies.
The Ceridian POA is imaged and the state name and customer’s ID for that state is added before it is printed from the image system.
• TPA Designation. If an agency requires TPA, authorize/designate Ceridian as your third-party administrator.State Agency Form Comments
Alabama SIT Standard POA Online registration only.
SUI Agency POA Notarized. Copies will be accepted.Alaska SIT N/A
SUI Agency POA
Arizona SIT Agency POASUI Agency POA
Arkansas SIT Standard POASUI Standard POA
California SIT No POA RequiredSUI No POA Required
Colorado SIT Standard POASUI Agency POA Notarized original signature
Connecticut SIT Agency POA
SUI Agency POA
Delaware SIT Standard POASUI Form 8655
District of Columbia SIT Agency POASUI Agency POA POA to be uploaded via ESSP system by the employer to establish agent rela-
tionship with Ceridian. TPA tax code 0804; Ceridian TPA#DC8Z3ZFlorida SIT N/A
SUI Agency POA 10/11 revision date. TPA tax code 1004; Ceridian TPA# A0000496Georgia SIT Agency POA Copies will be accepted. Form RD-1061.
SUI Standard POAGuam SIT Standard POA
SUI N/AHawaii SIT Agency POA Copies will be accepted
SUI Standard POAIdaho SIT Agency POA
SUI Standard POAIllinois SIT Agency POA
SUI Standard POAIndiana SIT Agency POA Copies will be accepted.
SUI No POA Required Designate Ceridian as reporting agent on agency website. TPA tax code: 1604; Ceridian TPA#: 100135
Iowa SIT Agency POA Copies will be accepted
SUI Agency POA Designate Ceridian as reporting agent on agency website. Agent number R2403825 is required on POA form. TPA tax code: 1304; Ceridian TPA #: R2403825
SUI Agency POA Copy of registration or on line confirmation required.
Maryland SIT Standard POASUI Standard POA
Massachusetts SIT Agency Form Online POA is required to be submitted by Ceridian with client signatureSUI Agency Form Designate Ceridian as reporting agent on agency website. TPA tax code:
2004; Ceridian TPA #: 100288
Michigan SIT Agency POA Form 3683 SUI Agency POA Form 1488
Minnesota SIT Standard POASUI Standard POA TPA tax code: 2404; Ceridian TPA #: CERID
Mississippi SIT Standard POA
SUI Agency POAMissouri SIT Agency POA Copies will be accepted
SUI Agency POA Copies will be acceptedMontana SIT Standard POA
SUI Standard POANebraska SIT Agency POA
SUI Standard POANevada SIT N/A
SUI Agency POA POA must be completed on-line. TPA tax code: 3404; Select Ceridian Tax Service
New Hampshire SIT N/ASUI Form 8655 Form revised August 2014
New Jersey SIT Standard POA
SUI Standard POANew Mexico SIT Agency POA
SUI Standard POA Designate Ceridian as Third Party Administrator (TPA) on agency website. TPA tax code: 3304; Ceridian TPA #: 500000269
New York SIT Agency POASUI Agency POA Notarized. Agency requires original signed POA, no photocopies accepted.
North Carolina SIT Standard POASUI Standard POA
North Dakota SIT Agency POA EFT registration requiredSUI Standard POA
State Agency Form CommentsPennsylvania SIT Standard POA
SUI Standard POA TPA tax code: 3904; Ceridian TPA #: 6070515522Puerto Rico SIT Agency POA
SUI Standard POARhode Island SIT Standard POA
SUI Standard POASouth Carolina SIT Agency POA Form WH-8655
SUI Agency POA Form UCE-1010South Dakota SIT N/A
SUI Standard POATennessee SIT N/A
SUI Agency FormTexas SIT N/A
SUI Agency POA Original signature required.Utah SIT Standard POA
SUI Standard POA No paper returns.Vermont SIT Agency POA
SUI Agency POA Notarized signature.Virgin Islands SIT Standard POA
SUI Standard POAVirginia SIT Standard POA
SUI Standard POAWashington SIT N/A
SUI Standard POAWest Virginia SIT Standard POA
SUI Standard POAWisconsin SIT Agency POA
SUI Standard POAWyoming SIT N/A
SUI Standard POA
State and local agencies with special ‘applied-for ID’ filing requirementsSome state and local agencies accept deposits and returns using an ‘applied-for ID’ with a copy of the employer’s reg-istration form attached. These agencies use the registration form to match the data to the new application on file and correctly apply deposits to the correct taxpayer account. As more agencies require EFTs and returns, it becomes more critical that clear identification of the taxpayer is known. Without a copy of the registration form, deposits and returns may have to be manually processed. This increases processing time as well as the margin for error. Some agencies will only accept deposits and returns with a valid ID.CTS must have permanent ID numbers or proof of registration on file for all taxpayers with obligations to any of these agencies before adding these taxes to your Client Master File (CMF). Forward your permanent ID, a copy of your registration form, or original registration form (if noted below), to your CTS Rep by the due date indicated in target dates. This allows us to file your current quarter returns in these jurisdictions. If we are unable to file on your behalf, any funds collected for this tax will be refunded via your quarterly tax state-ment. You are responsible for completing the filing as well as:
• Making any required agency deposits• Requesting a late filing via our amended returns process (see requesting an amended return) once the ID
number is received.Penalty and interest will accrue from the due date until the agency receives your current quarter return.
Financial controlsLegal disclosuresThe purpose of this communication is to apprise you of relevant banking regulation changes issued by the Federal Reserve Bank or the National Automated Clearing House Association (NACHA).The latest NACHA rules include “Rights and Responsibilities of ODFIs, Their Originators and Third-Party Senders” (Article Two, subsections 2.2.2.1) that apply to CTS’ continued delivery and your continued use of services that include the trans-fer of your funds. The significance to you is:
1. All funding agreements are deemed to authorize CTS to originate entries on your behalf to the Receiver’s accounts.2. You must comply with all U.S. laws, rules and regulations and agree to use the Ceridian products and services sub-
scribed to for their stated purpose.3. You must comply with your obligations as an originator of ACH entries into the banking system and with all U.S.
laws and regulations regarding the USA Patriot Act, the Unlawful Internet Gambling Enforcement Act, the Bank Secrecy Act and related Anti Money Laundering Laws, where applicable.
4. You agree to be bound to NACHA rules, which includes Ceridian’s right to terminate, suspend or alter funding methods for breach of NACHA rules.
5. You agree that Ceridian, or its ACH origination bank, reserve the right to audit the Originator for ACH compliance with the NACHA Operating Rules.
In addition, NACHA Operating Rules, Article Two, subsection 2.3.3.2 requires Ceridian to provide notice of the follow-ing disclaimer for credit entries subject to Article 4A of the Uniform Commercial Code:The entry may be transmitted through the ACH.The rights and obligations of the Receiver concerning the entry are governed by and construed in accordance with the laws of the State of New York, unless the receiver and Ceridian have agreed that the laws of another jurisdiction govern their rights and obligations.Credit given by the receiving bank to the Receiver for the entry is provisional until the receiving bank has received final settle-ment through a Federal Reserve Bank or otherwise has received payment as provided for in Section 4A-403(a) of Article 4A.If the receiving bank does not receive such payment for the entry, the receiving bank is entitled to refund from the Receiver in the amount of the credit to the Receiver’s account, and the Client will not be considered to have been paid the amount of the credit entry to the Receiver. More information can be found at: www.nacha.org
Ceridian update > financial controlsATTENTION: ALL CUSTOMERS FUNDING VIA ACH DEBIT
In accordance with federal anti-money laundering regulations found in the USA PATRIOT and Bank Secrecy Acts, Ceridian has implemented enhanced payroll monitoring capabilities. All incoming payrolls are screened and com-pared to your historical payroll transactions. Payrolls that materially exceed historical norms will generate an Exces-sive Liability Monitoring alert and you will be contacted to confirm if the payroll amount is valid. In some cases, you may be required to fund the payroll in question via wire transfer. (Note: This requirement also applies to bonus runs and stock options.)
Action required:1. Ensure that your company has the internal processes needed to initiate a wire transfer, if requested.2. You will be provided wire instructions to be used by your financial institution to wire transfer funds to Ceridian.
(Contact will be made within one business day of Ceridian receiving your payroll transmission.)3. Initiate a wire transfer for your payroll on your regularly scheduled funding date4. Provide the fedwire confirmation number to your CTS Rep. (CTS will process a stop draft in order to prevent a du-
plicate ACH debit to your account.)5. Ensure back-up personnel are available if the primary contact is out of the office.
International ACH Transactions - has your organization’s IAT status changed?
NACHA has enacted a new format surrounding crossborder ACH transactions known as “International ACH Transac-tions”, or simply “IAT”. This was enacted to allow better alignment with U.S. Anti-Money Laundering laws.NACHA defines IAT as an ACH entry that is part of a payment transaction involving a financial agency’s office that is not located in the territorial jurisdiction of the U.S. The new format also requires seven additional pieces of identifying infor-mation on both the originator and recipient of the funds to be included with the ACH payment file.This new format may impact companies who receive cross-border funds transfers, such as wire or other funds trans-fers from a foreign parent, that are eventually used to make domestic payments through the ACH payment network. Additionally, employers who have knowledge of employees who have instructions with their banks to move their direct deposits outside of the US banking system may also be impacted.Consult your treasury staff or bank professionals to determine if IAT applies to your organization. You may also consult the following websites for more IAT information:• www.nacha.org; • https://www.frbservices.org/index.htmlIf you feel that IAT applies to your company, notify our IAT email address immediately at [email protected].
Form 1095-C servicesPPACA Forms 1095-C and 1094-CNote: Services are only available to customers with contracts for ACA Management.
Time lineIdeally, you should only have to maintain ACA employee status changes throughout the busiest time of the payroll year. Keeping to these dates will ensure we stay on track for a successful ACA Filing.
2019 due date Description
September 30 New ACA contract. Considering Ceridian’s ACA Management Services? The contract must be sent by this date. If you used this service last year, you do not need a new contract.
October 15
Complete the Auto-Fill task. This is the first critical step (and the easiest) to create your ACA tax forms and must be executed to load employee data. • The Auto-Fill task will display employee errors for your review and correction• Indicates how much work is needed to file your ACA tax forms so that you can plan accordingly
November 8 PS cutoff for ACA projects. Request projects for ACA Module or Year-End Request by this date through the Ceridian Support Portal.
January 10
Ceridian ACA adjustment deadline. All employee-level errors must be resolved. Lock all forms and mark as ‘Ready to Send.’ All files will be sent to CTS for filing, as well as to the print queue, on January 10 at 11:00 p.m. local time without exception. Miss this deadline and Ceridi-an will be unable to file ACA data on your behalf. This will result in a ‘failure to file’ with the IRS.
January 11 - February 14
• CTS reviews and scrubs ACA data. • Ceridian sends Forms 1095-C to the print queue. Forms ship within 1-3 business days
after printing.
January 31 Deliver Forms 1095-C to employees. Forms 1095-B and 1095-C due to employees (to be post-marked if mailed, or sent via email if applicable conditions are met).
February 15CTS starts filing ACA data. This ensures IRS file rejects are managed by the March 31 employ-er filing deadline. Note: The IRS requires filings to be sent in batches. This may cause minor delays for some clients.
February 16 - March 31
IRS rejected files are processed. As the IRS responds, Ceridian will open a case for clients with IRS rejected files. These issues should be resolved and refiled by March 31.
February 16 - early April
The IRS sends filing status to Ceridian. Once Ceridian has received the filing status for all clients, cases will be opened for clients with ’Accepted with Errors’ filing status.
February 28 IRS paper filing deadline. Forms 1094-B, 1095-B, 1094-C and 1095-C due.March 31 IRS electronic filing deadline. Forms 1094-B, 1095-B, 1094-C, and 1095-C due. *
No later than April 16
• CTS sends 1094-C statements to clients. These statements will include a filing status. • Make more corrections in the PPACA Year End module. The CEC video, ‘Processing Year-End
Corrections for PPACA,’ explains how to correct common errors as well as how to prepare the corrected filing. Once you have finished your corrections, submit a case to the ACA Support team. Multiple correction filings can be made.
• All IRS filing status of ‘Rejected Files’ should be resolved by March 31.*Any employer filing 250 or more information returns during the calendar year must file these returns electronically. For employers with fewer than 250 returns, electronic filing is voluntary.
Your responsibilities• Enroll in Dayforce Year End Process Training
Note: You must be a Dayforce Live Member. Contact your Account Executive to purchase a membership.• Determine required tax codes• Gather or create data needed to populate Form 1095-C and Form 1094-C• Confirm data accuracy• Use a January 1 Benefit Start Date for ACA filing to avoid errors/manual updates
Steps to ACA success1) In Dayforce, start the PPACA year-end process
Navigate to: PPACA > Year End Process then click the Auto-Fill button on the Overview screen2) For each Form 1095-C:
a. Review each form, even those without errorsb. Resolve all errors
Did you know you can enter updates for multiple employees at one time? For instructions, from the Ceridian Support Portal, search the Knowledge Base for the Benefits Guide. Search the guide for “Group Edit Records”
c. Lock and mark as Complete3) For each Form 1094-C:
a. Review each form, even those without errorsb. Update as needed and resolve all errorsc. Lock and mark as Complete
4) Mark as “Ready to Send” by the January 10 deadline (deadline has passed)
Form 1095-C previewPreview Employee Forms 1095-C for accuracy and make updates:
1. Click PPACA > Year End Process 2. Select Year-End Period from the list and select Open Year3. If the Auto-Fill task has not run, then run it4. Click the Manage Offered Coverage tab5. Choose employee(s) and click View/Edit6. From the View/Edit Details screen, click View 1095-C Form tab
Form 1094-C previewPreview each Legal Entity’s 1094-C Form for accuracy during the PPACA Year-End with these steps:
1. Click PPACA > Year End Process 2. Select Year-end period from the list and select Open Year3. If the Auto-Fill task has not run, then run the Auto-Fill task4. Select a legal entity from the 1094-C Forms section of the Overview page5. From the View/Edit Details page, click the View 1094-C Form tab
PPACA year-end filing approval deadline You must lock all PPACA year-end filings and mark as ‘Ready to Send’ no later than 11:00 p.m. local time on January 10 (deadline has passed). This data will be sent to CTS for the electronic submission of the 1095-C Form to the IRS on January 11 without exception (deadline has passed). Reprints after this date are available for an additional charges.
Ceridian’s ACA deadlines are earlier than the IRS’ published due dates. Did you know that Ceridian printed and filed two million 2018 Forms 1095-C? Like Forms W-2, Ceridian requires enough time to review, print, package, and ship employee Forms 1095-C in time for you to meet the IRS deadline to furnish statements to employees. To electronically file Forms 1094-C and 1095-C, Ceridian also needs time to scrub data, generate outbound files, and resolve IRS rejected data.
Form 1095-C printing and delivery 1. On the morning of January 11 (deadline has passed), all Forms 1095-C marked as ‘Ready to Send’ will be sent to
Ceridian Print Center.2. All Forms 1095-C printed and shipped by January 27.
• Forms 1095-C shipped using the package setup under Payroll Setup > Report Output > Delivery Pack-age > Tax Forms.
• If you designated to send Forms 1095-C directly to your employees, be aware that individual tracking is not available. All 1095-C forms were delivered by January 31, 2020.a) Remember, some employees may have opted out of receiving printed forms.b) Dayforce prints tax forms for all termed employees, even if they opted out of receiving a printed form.
Employee Self-ServiceEmployees are able to view/print their Form 1095-C from Employee Self-Service based on the settings chosen on the System Admin > Client Properties > Client Payroll Properties Tab. The field “Tax Form Print ESS offset days” indi-cates the number of days after the Form 1095-C print date that tax forms will become visible to employees.
Filing status and correctionsStep-by-step:
Rejected filings (mid-February through March) • IRS: Returns rejected filings to Ceridian. • Ceridian: Contacts customers to amend the rejected files. Amended files are sent to the IRS. • Customers: Fix errors before March 31 to avoid IRS penalty and interest.
Status (March through early April) • IRS: Classifies all filings (original or amended) as either accepted or accepted with errors. • Ceridian: Notifies customers of their status no later than April 16 via the CTS 1094-C statements. Creates
cases when filings are ‘Accepted with errors.’ • Customers: Be prepared to make corrections if a case is created for you. Research errors with your tax expert
or on IRS.gov. Corrections (mid-April through March 2023) • IRS: Will accept correction files after the final version of the filings are loaded into their system. • Ceridian: Makes Dayforce 1095-C correction functionality available. 2019 corrections are sent to the IRS
monthly, this year and all subsequent years. • Customer: Make corrections in Dayforce or directly to the IRS. When corrections are complete, submit a case
through the Ceridian Support Portal.
Again, the IRS only accepts corrections after they have processed the original filing submissions. Dayforce ACA correc-tion functionality becomes available in mid-April to ensure IRS compliance. After the IRS receives your original ACA filing from CTS they will return one of three status reports to Ceridian:
1. Accepted. The implication is that there are no obvious filing errors, however, you may find that you need to correct some employees. Clients will be notified of this status no later than April 16 via the CTS 1094-C state-ments. At this time, additional corrections can be made in the PPACA Year End module. The CEC video, ‘Pro-cessing Year-End Corrections for PPACA,’ explains how to correct common errors as well as how to prepare the corrected filing. Multiple correction filings can be made, if necessary.
2. Accepted with errors. Corrections may be needed and must be re-filed as soon as possible. Cases will be opened for clients with ’Accepted with Errors’ Filing Status in the February 16 - early April time frame.
3. Rejected. It could be due to an incorrect Form 1094-C or major errors on the Forms 1095-C. As the IRS re-sponds, Ceridian will open a case for clients with IRS Rejected Files. These issues should have been resolved and refiled by March 31.
An “ACA Amended Return” refers to the process of changing your original ACA filing after the Ceridian ACA deadline has passed (regardless of if you discovered an error or if the IRS requires corrections). This includes changes to either Form 1094-C or Form 1095-C – or a request to submit a new original 1095-C return. Multiple correction filings can be made, if necessary. Not correcting these errors may result in IRS notices. All corrections can be entered in Dayforce,
regardless of the number of forms. CTS will transmit the filing to the IRS for $250 per FEIN. If you have:
• Under 250 corrections. The IRS allows a total of 250 corrected paper returns for a single filing year (per FEIN). If you mail your paper Form 1095-C Returns with a Form 1094-C Return (Non-Authoritative) directly to the IRS, be sure to update Dayforce to prevent these same errors for subsequent filings.
• Over 250 corrections. The IRS requires over 250 returns to be made electronically. Once you’ve finished your corrections, submit a case to the Payroll Support team through the Ceridian Support Portal.
Remember, Ceridian will not reprint your modified forms. You have two options:
a) Print them and distribute them b) Instruct employees to view the electronic version in Dayforce
The IRS requires corrections to be filed and data to be completed within three years from the date of the original sub-mission. Ceridian, however, strongly encourages you to complete your 2019 submissions by December 31, 2020.
Contact your CTS Rep or call 1-866-301-6989 if you have questions about Ceridian’s ACA filing process with the IRS.
IRS noticesIf you utilize CTS, then at some point your company provided Ceridian with IRS Form 8655, Reporting Agent Authoriza-tion. This form authorizes Ceridian, as a third-party vendor, power of attorney (POA) to act on your company’s behalf on certain actions relating to your payroll’s income and payroll taxes. The IRS can also issue notices or disclose informa-tion directly to Ceridian.
Form 8655, however, does not include ACA for any third-party vendor (such as Ceridian) and the IRS has not published a comparable authorization for ACA. The IRS will send any questions or notices directly to your company and Ceridian will not be notified. Ceridian will only be notified of the initial filing status (noted above).
Ceridian referencesAs a reminder, you should be familiar with these ACA resources:
• Ceridian Support Portal:o Product News - search for ACAo Knowledge Base article: PPACA Year-End Troubleshooting Guide o Knowledge Base article: Benefits Guide. Search the guide for ‘PPACA’
• Training at Ceridian Education Center:o Login to your Dayforce Live Membership: Ceridian Education Center
Note: You must be a Dayforce Live Member to register. Contact your CRE to purchase a membership.o Navigate to the Year-End Benefits ACA tile and click ‘Register Now!’ o PPACA catalog is listed. o Select a session or recorded video and click ‘Enroll’ o Click Go To Course to either download the training guide or begin the recorded video course
Form 1099 services2019 Time lineKeeping your employees’ Forms 1099s refreshed each payroll will result in an easier year-end. These deadlines will also ensure a successful filing.
2019 date Description
December 26Last day to guarantee on-time tax deposits for check producing runs for a 2019 pay date• Commit by 1:00 p.m. local time for next day delivery• Runs must process 72 hours prior to pay date
December 27-30 Check-producing or adjustment runs committed are now subject to penalties and interest. Commit by 1:00 p.m. local time for next day delivery
December 31 Committed runs may only include 2019 manual checks and adjustments. 2019 on-site checks that were not committed must be recorded as a manual check.
January 3Final date for Forms 1099 adjustments• Commit by 11:00 p.m. local time• Adjustments are subject to penalties and interest
January 4
Year-End 2019 is CLOSED• Additional 2019 changes require a corrected 1099 and amendments. These changes
must be done manually• Ceridian sends Forms 1099 data to the print queue. They ship within 1-3 business
days after printing. Tax forms will be delivered by January 27• Ceridian sends Form 1099 data to D2X for filing preparation
January 31
Deliver Forms 1099 to employees/IRS and SSA filing deadline• Forms 1099 are due to employees (to be postmarked if mailed, or sent via e-mail if
applicable conditions are met)• This is also the IRS/SSA deadline for D2X to provide electronic Forms 1099
Getting startedTo request a setup of a 1099M or 1099R entity, go to the Ceridian Support Portal and submit a request. The 2019 dead-line for this was September 20 to ensure timely completion, however requests will still be accepted and every attempt made to complete before year-end. Supplying as much information when the request is submitted and promptly answering questions relating to your project will also help expedite the process.
Steps to successFollow these steps every pay period to increase the likelihood of a successful filing:
Step 1: Find and resolve wage and tax audit messages
• Where: In Dayforce go to Payroll > Reports > US Wage and Tax Report (select ‘Include only Employees with Validation Errors’)
• What to do: Watch the Auditing Your Payroll for Quarter End and Year End Success - US (Video) in the Ceridian Education Center
Step 2: Correct all Tax Form Validation Errors. Each error must be investigated and corrected before employee tax statements can be processed
• Where: Year End > USA Year End > Click arrow in upper right hand corner > Export problems• What to do: Go to Year End > USA Year End > Process job > Generate Preview to refresh error and warning mes-
Step 3: Use the Payroll configuration (within this QE Packet)
• Do a thorough review of your Forms 1099 setup• Keep in mind that deadlines are in EARLY January
Employee Form 1099 preview Follow these steps to preview Form 1099s for accuracy any time during the year:
1. Navigate to Year End2. Choose USA Year End3. Select a Legal Entity4. Click Process Job and select Generate Preview Data5. From right hand side, open the slide out6. Choose an Employee Name, a Pay Group, or a Legal Entity and click Apply Filter
Year-end adjustment run deadline All payroll adjustment runs that impact Form 1099 wages or taxes must be completed before 11:00 p.m. January 3, 2020 (deadline has passed). Adjustments after the file is created require corrections outside of Dayforce.
Form 1099 printing and shipping Form 1099s were shipped using the package setup under the Payroll Setup > Report Output > Delivery Package > Tax Forms. All Form 1099s were shipped and delivered before January 27.
Form 1099 printing status is found under Year End > USA Year End > Overview Tab. Package tracking numbers are found under Year End > Package Tracking.
Employer copy of the Form 1099The employer copy of the Form 1099 will be generated in a PDF format for each customer on January 4, 2020. This report can be viewed from the Archived Reports under Year End tab. Ceridian recommends that the report be saved to a CD-ROM for permanent storage.
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Form 1099 available in employee Self-Service Employees can view/print their Form 1099 from Employee Self-Service based on the settings chosen on the System Admin > Client Properties > Client Payroll Properties tab. The field “Tax Form Print ESS offset days” indicates the number of days after the Form 1099 print date that tax forms will become visible to employees.
CorrectionsDayforce does not have any functionality to create a corrected 1099-M or 1099-R. All 1099 corrections need to be com-
pleted outside of the Dayforce application. Visit IRS.gov for instructions.
IRS references• 1099M Instructions and corrections: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf• Form 1099M: https://www.irs.gov/pub/irs-pdf/f1099msc.pdf• Form 1099R Instructions and corrections: https://www.irs.gov/pub/irs-pdf/i1099r.pdf• Form 1099R: https://www.irs.gov/pub/irs-pdf/f1099r.pdf
Contact your payroll department immediately to make changes to names, addresses, or Social Security numbers
to avoid errors on your 2018 Forms W-2.
Form W-2 Boxes Box 1 WAGES, TIPS, OTHER COMPENSATION Box 2 FEDERAL INCOME TAX WITHHELD Box 3 SOCIAL SECURITY WAGES Box 4 SOCIAL SECURITY TAX WITHHELD Box 5 MEDICARE WAGES AND TIPS Box 6 MEDICARE TAX WITHHELD Box 7 SOCIAL SECURITY TIPS Box 8 ALLOCATED TIPS Box 9 Box 10 DEPENDENT CARE BENEFITS Box 11 NONQUALIFIED PLANS Box 12 Refer to the Box 12 tab for box 12 codes Box 13 Status check boxes Box 14 OTHER Box 15 STATE Box 15 EMPLOYER’S STATE ID NUMBER Box 16 STATE WAGES, TIPS, ETC. Box 17 STATE INCOME TAX Box 18 LOCAL WAGES, TIPS, ETC. Box 19 LOCAL INCOME TAX Box 20 LOCALITY NAME Box A EMPLOYEE’S SOCIAL SECURITY NUMBER Box B EMPLOYER’S IDENTIFICATION NUMBER (EIN) Box C EMPLOYER’S NAME, ADDRESS AND ZIP CODE Box D CONTROL NUMBER Box E EMPLOYEE’S NAME Box F EMPLOYEE’S ADDRESS AND ZIP CODE
Box 13 If “Retirement Plan” is checked, special limits may apply to the amount of traditional IRA contributions that you may deduct. Also, the elective deferrals in box 12 (codes D, E, F, and S) and designated Roth contributions (codes AA and BB) for all employees, and for all such plans that you belong to, are generally limited to $19,000.
Box 12 continued V Income from exercise of non-statutory stock option(s) W Employer contributions to health savings account (HSA) Y Deferrals under a section 409A nonqualified deferred
compensation plan Z Income under a nonqualified deferred compensation
plan that fails to satisfy section 409A AA Designated Roth contributions to a section 401(k) plan BB Designated Roth contributions under a section
403(b) plan DD Cost of employer-sponsored health coverage. The
amount reported with code DD is not taxable EE Designated Roth contributions under a governmental
section 457(b) plan FF Permitted benefits under a qualified small employer
health reimbursement arrangement. GG Income from qualified equity grants under section 83(i) HH Aggregate deferrals under section 83(i) elections as of
the close of the calendar year
Box 12 A Uncollected Social Security or RRTA tax on tips B Uncollected Medicare tax on tips C Taxable cost of group-term life insurance over $50,000 D Elective deferrals to a section 401(k) cash or deferred arrangement including a 401(k) SIMPLE E Elective deferrals to a section 403(b) salary reduction agree-
ment F Elective deferrals to a section 408(k)(6) salary reduction SEP G Elective and non-elective deferrals and employer contributions
to a section 457(b) deferred compensation plan H Elective deferrals to a section 501(c)(18)(D) tax-exempt
organization plan J Non-taxable sick pay (not included in boxes 1, 3, or 5) K 20 percent excise tax on excess golden parachute payments L Substantiated employee business expense reimbursement
(non-taxable) M Uncollected social security or RRTA tax on taxable cost of
group-term life insurance over $50,000 N Uncollected Medicare tax on taxable cost of group-term life
insurance over $50,000 P Excludable moving expense reimbursement paid directly to
members of the U.S. Armed Forces Q Non-taxable combat pay (not supported by Ceridian) R Employer contributions to your Archer Medical Savings
Account (MSA) S Employee salary reduction contributions to
Section 408(p) (SIMPLE) T Adoption benefits (not included in box 1)
2019
2019
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Form W-2 services Contents
Time line .........................................................................................................................................................................................25Steps to success ...........................................................................................................................................................................26Employee Form W-2 preview ..................................................................................................................................................26Year-end adjustment run deadline .......................................................................................................................................26Form W-2 printing and delivery .............................................................................................................................................27Employer Copy of the W-2 Report.............................................................................................................................................27Form W-2 available in employee Self-Service ...................................................................................................................27Corrections .....................................................................................................................................................................................27Puerto Rico Forms W-2 (Forms W-2PR) ................................................................................................................................28Ceridian references .....................................................................................................................................................................29IRS references ................................................................................................................................................................................29
Time lineKeeping your employees’ Forms W-2 refreshed each payroll will result in an easier year-end. These deadlines will also ensure a successful filing.
2019/2020 date Description
December 26Last day to guarantee on-time tax deposits for check producing runs for a 2019 pay date • Commit before 1:00 p.m. local time for next day delivery• Runs must process 72 hours prior to check date
December 27-30 Check-producing or adjustment runs committed with a 2019 pay date are now subject to penalties and interest. Verify that all 2019 on-site checks are committed.
December 31 Committed runs may only include 2019 manual checks and adjustments. 2019 on-site checks that were not committed must be recorded as a manual check.
January 3Final date for Forms W-2 adjustments• Commit before 11:00 p.m. local time• Adjustments are subject to penalties and interest
January 4
Year-End 2019 is CLOSED.• Additional 2019 changes require Forms W-2c and amendments. These changes
should NOT be made on this date• Ceridian sends tax data to the print queue. Employee tax statements will ship within
1-3 business days after printing. Tax forms will be delivered by January 27, 2020• Ceridian sends tax data to CTS for filing preparation
January 5 Additional 2019 adjustments can be committed (Forms W-2c and amendments) January 8 Form W-2c functionality becomes available in Dayforce
January 20 Forms W-2c can be committed and printed
January 31
Deliver Forms W-2 to employees/IRS & SSA filing deadline• Forms W-2 are due to employees (to be postmarked if mailed, or sent via e-mail if
applicable conditions are met)• This is also the IRS/SSA deadline for CTS to provide electronic Forms W-2
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Steps to successFollow these steps every pay period to increase the likelihood of a successful filing:
Step 1: Find and resolve wage and tax audit messages.
• Where: In Dayforce go to Payroll > Reports > US Wage and Tax Report (select ‘Include only Employees with Validation Errors’)
• What to do: Take the Auditing Your Payroll for QE and YE Success course in the Ceridian Education Center
Step 2: Correct each tax form validation error. Each error must be investigated and corrected before tax forms can be processed.
• Where: Year End Tab > USA Year End > Click arrow in upper right hand corner > Export problems• What to do: Reconcile any warnings and resolve any errors. Go to Year End > USA Year End > Process job >
Generate Preview Data to refresh error and warning messages
Step 3: Use Payroll configuration (within this QE Packet).
• Do a thorough review of your Forms W-2 setup• Keep in mind that deadlines are in EARLY January
Employee Form W-2 preview Follow these steps to preview Forms W-2 for accuracy any time during the year:
1. Click the Year End Tab2. Choose USA Year End from the drop-down list 3. Select a Legal Entity4. Click Process Job and select Generate Preview Data5. From right hand side, select left pointing arrow6. Choose an Employee Name, a Pay Group, or a Legal Entity and click Apply Filter
Year-end adjustment run deadlineAll payroll adjustment runs that impact Form W-2 wages or taxes must be completed before 11:00 p.m. January 3, 2020 (deadline has passed). Adjustments after the file is created require W-2cs.
Date 2019 adjustmentsDecember 26 Last date to commit and avoid penalties and interest
January 3 Last date to commit and avoid Forms W-2c and amendmentsJanuary 4 Do not commit 2019 adjustments on this date January 5 First date for the creation of 2019 Forms W-2c and amendments
January 20 Forms W-2c can be committed and printed
Form W-2 printing and delivery Note: Puerto Rico Forms W-2 follow a different process. Skip to this section for more details.
1) On January 4, 2020 (deadline has passed), all Forms W-2 were automatically submitted for print. 2) In 2019, Ceridian printed five million Forms W-2 in addition to normal payroll runs and other tax forms. To sup-
port this volume, early deadlines ensure that all US/GU/VI Forms W-2 printed and shipped by January 27, 2020.3) Ceridian ships Forms W-2 using the package setup under Payroll Setup > Report Output > Delivery Packages.
a) If you have designated to have Forms W-2 sent to your office for distribution, package tracking num-bers are available under Year End > USA Year End > Overview tab > Package Tracking.
b) If you have designated to send Forms W-2 directly to employees, individual tracking is unavailable. c) Remember, some employees may have opted out of receiving printed forms.d) Dayforce prints tax forms for all termed employees, even if they opted out of receiving a printed form.
4) View the Year End Delivery Package Report for employee tax statement delivery details. The report is available from Year End > USA Year End > Reports.
Please note that GU/VI Forms W-2 cannot be mailed directly to employee addresses from our facility. They will therefore be shipped to the address provided in the appropriate courier delivery package setup.
Employer Copy of the W-2 ReportThe Employer Copy of the W-2 Report generated a PDF on January 4, 2020. View this report in the Archived Reports under Year End > USA Year End. It contains four Forms W-2 per page and the last page is a summary page with totals. Ceridian recommends that the report be saved to a CD-ROM for permanent storage.
Form W-2 available in Employee Self-Service Employees are able to view/print their Form W-2 from Employee Self-Service based on the settings chosen on the Sys-tem Admin > Client Properties > Client Payroll Properties Tab. The field “Tax form Print ESS offset days” indicates the number of days after the Form W-2 print date that tax forms will become visible to employees.
Dayforce does not currently support an interface to Turbo Tax®. To add/remove the Self Services advertisements for employees (including the one for Turbo Tax®) uncheck the box under System Admin > Client Properties > General Properties tab > Show Affiliate Promotions.
Note: Self-Service does not display electronic Puerto Rico Forms W-2 to employees.
CorrectionsRemember, the information your employees file with their tax returns must match what CTS files with the IRS. Contact your tax advisor or visit IRS.gov to verify if an adjustment requires a Form W-2c. A training video, “Generating W-2Cs” is available in the Ceridian Education Center.
Form W-2c functionality became available on January 5, 2020 in Dayforce. Forms W-2c commit and print func-tionality became available on January 20, 2020.
The Form W-2c feature must be enabled for the appropriate user role(s). Note: Only users with System Administra-tion rights can make this change.
1. Navigate to System Admin and choose Roles2. Click the role name that will be changed 3. Click Features4. Scroll down to Year End > USA Year End5. Click on W-2c and click Save
Once you have enabled the W-2c feature, follow these easy steps to create Form W-2cs:
1. Enter and commit wage and/or tax changes in a 2019 prior period runa) It should be an off-cycle run b) The pay date should be the last calendar day in the amended quarter
2. Enter address changes, Retirement Plan indicators, and SSN changes in People (My HR)3. Navigate to Year End > USA Year End > W-2c tab. Add a new W-2c request running by employee, Legal Entity or
Pay Group4. Generate Forms W-2c and review for accuracy5. Commit then print Forms W-2c (this step became available on January 20)
To request a tax filing amendment through CTS (required whenever a Form W-2 changes):
1. From Year End > USA Year End, run the Employer Copy of W-2c Report. For the W-2c Request, choose the ap-propriate run date associated with the commit period. If you do not have this report in your Year End Tab, contact your company’s client administrator
2. Save the Employer Copy of the W-2c Report in the PDF to your hard drive3. Contact your CTS Rep to request the Amendment Request Worksheet4. Complete the first tab with your company information and indicate the reason for the amendment request.
This is the only tab you need to complete5. Send the completed Amendment Request Worksheet to your assigned CTS Rep
Note: To identify your assigned CTS Rep visit Source Tax Online
Ceridian will not print Forms W-2c. You have two options:
a) Print them and distribute them b) Instruct employees to view the electronic version in Dayforce
Contact your CTS Rep or call 1-866-301-6989 if you have questions about Ceridian’s filing processes.
Puerto Rico Forms W-2 (Forms W-2PR)Puerto Rico Forms W-2 (499R-2/W-2PR) require a control number and a confirmation number to be printed on all forms before distribution to employees. These numbers confirm that the employer forms have been filed and validat-ed. This special process creates a significant delay in printing Forms W-2PR.
Ceridian handles this process behind the scenes on your behalf.
1. Once Forms W-2PR are created in January, a bulk file will be sent electronically to Puerto Rico2. Puerto Rico immediately returns the file with a confirmation number for each FEIN. Rejections may take sever-
al days to resolve3. Ceridian enters the confirmation numbers into Dayforce4. Forms W-2PR are printed and shipped
Note that Forms W-2PR are printed separately from the rest of your Forms W-2. They are also shipped later than other Forms W-2 (while we wait for the confirmation number to be returned from Puerto Rico). Forms W-2PR cannot be mailed directly to employee addresses from our facility. They will therefore be shipped to the address provided in the delivery package setup.
Forms W-2PR will automatically be sent to the print queue when the confirmation number is received. They will be shipped (within one to three days) to your company’s default business address as noted in Payroll Setup > Report Out-put > USA Default package before January 27, 2020.
The forms will be printed on an 8.5”x11” non-sealed form. The approved Puerto Rico Form W-2 is not self-sealing. This is due to the need for printing on both sides of a self-sealing document. Until the Hacienda approves a new form, clients will need to fold, stuff, and distribute Form W-2PR.
Note: These tax forms will not display correctly in U.S. Form W-2 envelopes. Contact your office supply vendor for assistance with purchasing the correct PR Tax Form envelopes. Self-Service does not display electronic Forms W-2PR to employees.
Ceridian referencesAs a reminder, you should be familiar with these resources:
• Ceridian Support Portal:o Product Newso Knowledge Base > Year End > US Year Endo On the Ceridian Support Portal, navigate to Knowledge Base > Reference Materials > Admin and User
Guides > Release XX Admin Guides o A training video, “Generating W-2Cs” is available in the Ceridian Education Center.
• Training courses on the Ceridian Education Center:o Auditing Your Payroll for Quarter-End and Y-End Successo Processing Year-End Tasks for Payroll
IRS references• IRS Form W-2: https://www.irs.gov/pub/irs-pdf/fw2.pdf• IRS Form W-2GU: https://www.irs.gov/pub/irs-pdf/fw2gu.pdf• IRS Form W-2VI: https://www.irs.gov/pub/irs-pdf/fw2vi.pdf• IRS Form W-2c: https://www.irs.gov/pub/irs-pdf/fw2c.pdf• IRS W-2, W-2c Instructions: https://www.irs.gov/pub/irs-pdf/iw2w3.pdf• IRS Publication 15: https://www.irs.gov/pub/irs-pdf/p15.pdf
Payroll configurationOverviewA thorough review of your payroll setup will help you find changes needed for correct Forms W-2 and other important year-end and year-begin activities. Planning now gives you confidence that your payroll and year-end will run accu-rately and smoothly.
Reviewing your Dayforce payroll configuration early enables you to make timely changes. After reviewing this check-list, if changes are needed, contact your Payroll Support team at least 48 hours prior to the payroll commit date when you want the changes to be effective.
It is imperative to review all sections of this document. Do not disregard a section because it does not affect your pay-roll – all sections are important. If you don’t know how to answer one or more of these questions, contact your Payroll Support team for clarification.
Useful reportsThe following payroll reports are useful to help you complete this checklist. For more details on each report, search the Fixed Format Reporting Guide (download it from the Ceridian Support Portal’s Knowledge Base) for the report name as it is listed. This guide has instructions for running the fixed format reports that are available in some feature screens of the application. It also has information about the configuration of report parameters.
• US Wage and Tax Report. Includes audit messages for questionable wage/tax situations. Review it every payroll.
• Employee Pay Run History Report. Includes all payments/adjustments for an employee over a date range to inves-tigate issues.
• Payroll Audit Report. Includes audit messages for questionable payroll situations.
• W-2/1099-M/1099-R Management Report, W-2 Exception Management Report. Includes data that will be printed on the Form W-2/1099 and exceptions that may cause issues with the printing of these forms. Audit each quarter.
• Payroll Summary Report. Includes tax ID numbers for taxing authorities setup in Dayforce. All tax ID numbers should be assigned and no taxing authorities should have an ‘Applied-For’ status. This report also displays unem-ployment rates. See compliance charts for more info.
• US Earning and Deduction Matrix Validation Report. Lists each configured earning and deduction with the tax form display box number. Audit in September.
• Year End Delivery Package Report. Gives information for each configured delivery package and the employee tax statements included in each delivery package.
Forms W-2 payroll configuration checklistThe following pages include a checklist of the payroll configuration items you should review and verify in preparation for year-end and generation of Forms W-2.
Verify employer name and address for display – Box CYour company name and address display on the inside and outside of the Form W-2. Verify the accuracy of the following information in Dayforce:
• Legal Entity Name as registered with the Federal Government• Address• City • State• Zip code
Verify employer tax ID for form display – Box B and 15The employer tax identification numbers display on the Form W-2. Verify the accuracy of the following information in Dayforce:
• Legal entity name as registered with the Federal Government
Forms W-2 will not print if any of these fields are blank. To make changes to tax IDs or FEIN information, contact your CTS Rep. These fields are populated via a daily data feed from CTS.
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Verify retirement plan indicator – Box 13Does your company offer a qualified retirement plan? An X must print in the W-2 RETIREMENT PLAN box 13 for each participant covered by a retirement plan through employee or employer contributions at any time during the plan year. This chart outlines the effect of specific legal entity and employee retirement plan settings on Box 13.
Legal entity retirement plan indicator
Employee retirement plan indicator
Retirement plan check box
Blank No, None UncheckedBlank Yes CheckedBlank Blank Unchecked if YTD
Deferred Comp deduction is $0
Blank Blank Checked if YTD Deferred Comp deduction is greater than $0
Yes No UncheckedYes Blank, Yes, None CheckedNo Blank, No, None UncheckedNo Yes CheckedNone Blank, No, None UncheckedNone Yes Checked
Path: People (My HR) > Payroll > Tax Definitions > Quarterly/Annual Reporting Parameters > Select Federal
The system does not look at the deferred compensation deduction YTD to decide if Box 13 should be checked unless legal entity and employee retirement plan indicator are both blank.
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Verify earning taxability/Form W-2 mapping – Boxes 12 & 14Taxability and W-2 Report Mapping are defined for each earning individually to configure the display on the Form W-2 in a specific box or with a specific code. Verify this information is correct for all earnings to ensure accurate display on the Form W-2. Look up each code individually or run the U.S. Earning and Deduction Matrix Validation Report to verify all earnings.
Path: Payroll Setup > Earning Definition > Tax & Compliance > United States > Tax Form/Report Mapping
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The following list contains standard earnings with Form W-2 mappings. Your configuration could include additional earnings that should also be reviewed for the accuracy of Form W-2 mappings.
Earnings description Earnings taxability type Form W-2 box
Grp Term Life Group Term Life GT 50,000 – E048 Box 12 – code C
Grp Term Life Group Term Life GT 50,000 – EC03 Box 12 – code C
ER Health Coverage -Self Only No taxability – memo Box 12 – code DD
ER Health Coverage - Family Only No taxability – memo Box 12 – code DD
457B Employer Match No taxability – memo Box 12 – code G
Third Party Sick Pay Sick/Disability Pay - E037 Box 12 – code J
Golden Parachute Golden Parachute – E021 Box 12 – code K
Substantiated Emp Bus Exp Business Expenses - E007 Box 12 – code L
Vehicle Txbl Personal Use of Company Car - E019 Box 14 – code VEHICLE
When amounts are mapped to the correct Form W-2 box but aren’t populated for an employee, corrections may need to be included in a pay run via Quick Entry or Checks. If the amount missing is a memo code (for example: employer healthcare costs), amounts can be included on a pay run on the Adjustments sub-tab.
You can easily import your adjustment records into Dayforce. Search the Ceridian Support Portal Knowledge Base for ‘Employer Healthcare Imports’.
Verify deduction taxability/Form W-2 mapping – Boxes 12 & 14Tax type and Form W-2 report mapping are defined for each deduction to configure the display on the Form W-2 in a specific box or with a specific code. Verify this information is correct for all deductions to ensure accurate display on the Form W-2. Look up each code individually or run the U.S. Earning and Deduction Matrix Validation Report to verify all deductions.
Path: Payroll Setup > Deduction Definition > Tax & Compliance > United States > Tax Form Mapping
Click Override to change or remove a tax form/report mapping, change the Form Field mapping, and save. View these changes on the Form W-2 under Year End. Remember to Generate Preview Data to view updated data on the Form W-2.
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The following table has a list of standard deductions with Form W-2 mappings. Your configuration could include addi-tional earnings that should also be reviewed for the accuracy of Form W-2 mappings.
Deduction description Deduction taxability type Form W-2 box
Dependent Care Filing Sep (Sec 125) Section 125 Dep Care Single - P010 Box 10
Dependent Care Married (Sec 125) Section 125 Dep Care Married - P011 Box 10
401K Roth 401k Roth - P016 Box 12 – code AA
403B Roth 403b Roth - P017 Box 12 – code BB
XYZ401K 401k - P001 Box 12 – code D
401K Catch Up 401k Catch Up - P001 Box 12 – code D
HSA Family Sec 125 Section 125 HSA Family - P021 Box 12 – code W
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Verify third-party sick pay (TPSP) – Form W-2 Box 13Does your company report TPSP? If so, enter it at least quarterly in Dayforce to include TPSP in your tax deposits.
Step 1: Add your TPSP providers to Dayforce. Identify who is preparing the Form W-2.
Path: Payroll Setup > Third Party Sick Pay Providers
Step 2: Enter TPSP amounts for your employees if the TPSP W-2 is being prepared in Dayforce. Calculate taxes on the Third-Party Sick Pay Adjustment window. Save the record. Verify taxes that are calculated on the TPSP amount. Confirm the amounts match the third-party reported taxes. If the taxes should not be reported on the Form W-2, remove them prior to saving the adjustments sub-tab entry.
Path: Payroll > Pay Run Management > Adjustments sub-tab
If the provider withholds Social Security and Medicare from sick pay, you must record these deductions when you record the sick pay transaction. Dayforce has no way to “know” if the provider paid proper taxes or if taxes still need to be withheld. Failure to enter the provider’s deductions causes Dayforce to withhold additional taxes from the employ-ee on the next payroll run.
A Dayforce warning message will state that the user indicated the provider withholds taxes, but zero taxes have been recorded.
Contact your provider often with requests for early copies of the annual reconciliation. Early auditing is crucial to avoid costly amendments, unhappy employees, as well as potentially needing Forms W-2c related to missing or inaccurate TPSP.
For more information about this report, go to the Ceridian Support Portal > Knowledge Base and search for these articles:
• Payroll Administrator Guide. Search the guide for ‘Third Party Sick Pay.’• Setting Up and Maintaining Third Party Sick Pay
Define tax forms availability to employees in Self-Service Employees in self-service roles may be allowed to suppress the automatic hard copy printing of Employee Tax Forms (such as W2, and 1095C). Employees must consent to opt out from receiving tax forms. There is no default setting to opt out all employees at once since each employee must consent. After consenting to opting out of their tax forms employees can, at any time, revoke that consent (per IRS regulations).
To enable access to the opt-out option, assign the Year End Form Delivery child feature of the Profile & Settings > Pro-file role feature to the appropriate user roles.
Once this feature has been turned on then self service employees can opt of the printing of their Year End Tax Forms. They need to navigate to Profile & Settings > Profile > Year End Form Delivery > Edit.
Note: The opt-out option is disabled for terminated employees who are still able to log into the application. The appli-cation always prints terminated employees’ year end tax forms. The W-2 Puerto Rico, by law, must be printed and mailed; therefore, it is not listed as an option.
For more details, log into the Ceridian Support Portal and select Knowledge Base > Year-End > US Year-End > How Do I Allow Employees to Opt Out of Printed Tax Forms? (US)
For 2019:
• W-2s and 1099s were due for commit to print on January 4• Forms 1095-C were due for commit to print on January 11
Enter the number of calendar days after these dates that these tax forms should be available to employees in self-service.
Forms W-2 and the employer copy sort orderUse this option if employee tax statements are set up to be sent directly to your organization. To make it easier to distribute these forms, define the order in which they print.
Step 1: Specify the sort order for the printing of the employee copy printed Form W-2.
The default sort order for the employer copy of the Form-W-2 report cannot be changed. The archived report will be sorted by legal entity and employee number.
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Define the Forms W-2 mailing options U.S. Form W-2 (not including Territory Form W-2) can be mailed directly to each employee’s payroll mailing address. In the United States, these items are delivered via the United States Postal Service.
Use the Checks/Deposit Advices tab to identify who will be mailed their checks, if applicable. You can select individual employees or all employees within an organizational unit.
• Use the Tax Forms tab to identify who will be mailed their employee tax statements, if applicable. You can se-lect individual employees or all employees within an organization unit. Dayforce will follow the organizational unit’s check delivery package rules unless otherwise explicitly selected.
• Step 2: Assign the delivery package to a pay group.
Path: Pay Setup > Pay Group > Delivery Package
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Step 3: Identify the employee’s address to display on the employee tax statement.These options apply to Forms W-2 and 1099:
Payroll Mailing box No impact to the inside address
None for any address field None for any address field Primary residence address Primary residence address
Path: People > Personal > Contact Information > Addresses
For more information about this report, go to the Ceridian Support Portal and search the Knowledge Base for the Fixed Format Reporting Guide. Search this guide for ‘Delivery packages.’
Verify accuracy of information for terminated employeesRegularly reviewing terminated employees on the payroll register can reduce employee tax statement errors. Select the option to ‘include employees with YTD activity.’ The resulting report will display employees with YTD, but no current pay activity. They will appear in the pay group where they were last committed.Note: Dayforce always prints terminated employees’ year end tax forms, even if they opted for electronic forms.
Path: Payroll > Reports > Payroll Register Report
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Review and correct wage and tax audit messagesDo you have wage and tax audit messages? To help you review and correct these messages, run the Wage and Tax Report with just the audit messages.
Path: Payroll > Reports > US Wage and Tax Report (select Include only Employees with Validation Errors)
Best practice is to review and correct all processing messages and wage and tax audit messages each payroll cycle. These messages must be resolved prior to:
• Processing the last payroll of the year • Printing Forms W-2s
Ignoring audit messages can result in Forms W-2c, Form 940/941 amendments, penalties, interest, and additional fees.
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Review the Employee Pay Run History ReportThe Employee Pay Run History Report gives similar information to the Payroll Register but it can be run for a specific employee across multiple pay runs. It lists the earnings, deductions, and adjustments for the selected employee(s) and can include details for the current pay run, QTD, and YTD.
Path: Payroll > Reports > Employee Pay Run History Report
Use the Employee Pay Run History Report to investigate employees with wage and tax audit messages. For more information, from the Ceridian Support Portal, search the Knowledge Base for the Fixed Format Reporting Guide. Search this guide for ‘Employee Pay Run History Report.’
Review the W-2 and/or 1099 Management ReportThe W-2/1099 Management Reports provide a picture of each employee's Form W-2/1099 at the time the report is gener-ated. This report verifies the accuracy of your employee tax statements prior to printing them. It displays errors, such as missing Social Security numbers and negative YTD wage and/or tax amounts.
The W-2/1099 Management Reports create automatically with each pay run after March. You can also generate the report anytime from the Year End module (after you have Generated Preview Data).
Path: Year End > USA Year End > Click on Drop Down Arrow > Reports > W-2 Management Report
Use the W-2 Exception Management Report to audit only Forms W-2 encountering exception issues (for example: missing Social Security numbers, tax amounts without correspond-ing wage amounts, incorrect Retirement Plan Indicator based on deferred compensation amounts, and more).
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Generate and review Forms W-2 preview dataPreview Forms W-2 for each employee throughout the year to see if they are correct. You must generate the preview data for the Forms W-2 before you can view it.
Step 1: Generate preview data.
Path: Year End > USA Year End > Process Job > Generate Preview
Step 2: Review the preview data.
Path: Year End > USA Year End > Click on Arrow in Top Right Corner > Choose Legal En-tity > Choose Employee
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Review Forms W-2 data validation messagesEach time that you run the Generate Preview process job in Year End, validations are performed. Click on the row with the errors or warnings to export the validation messages to a CSV file.
Path: Year End > USA Year End
Click on the drop-down arrow in the upper right corner. The option to Export Problems appears
The errors and warnings must be resolved or reconciled before the printing of Forms W-2/1099.
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Configuration checklist for year-begin activitiesAlong with reviewing and changing settings in preparation for the generation of Forms W-2, there are other items to be prepared for the new year. The following pages comprise a checklist of activities to consider.
Define Pay Holidays for the new yearPay Holidays are holidays, which when worked, pay employees Holiday or Holiday Premium pay. Dayforce WFM has two types of Pay Holidays:
• System – Official bank holidays. Dayforce WFM automatically defines System Holidays.• Company – Variable holidays that differ from client to client. Each year, you must define company Pay Holidays
in Dayforce WFM.To be available for employee time sheets and payroll purposes, Pay Holidays must be attached to a Holiday Group. In turn, Holiday Groups are assigned to employees.
Adding holidays for a new year is a two-step process:
1. Define company Pay Holidays for the new year (if necessary)2. Attach Pay Holidays to a Holiday Group
Step 1: Define company Pay Holidays for the new yearCompany Pay Holidays must be defined every year.
Path: Pay Setup > Pay Holidays1. Click New2. Add the Name, Description, Date, and Reference Code fields for the company Pay Holiday3. Click the Is Bank Holiday check box, if applicable4. Click Save5. Repeat this process to define all company pay holidays for the calendar year
Always add new holiday dates. Do not edit or delete existing ones. Holiday dates for prior years are used for retro pay and historical reporting purposes.
System Holidays, populated automatically by Dayforce WFM, are bank holidays. Only System Holidays that are attached to a Holiday Group display on time sheets or apply Holiday Pre-mium Pay.
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Tips for defining a new company pay holiday:
• Name, Description. Use a naming convention that starts with the year of the holiday. The annual holidays will then display together. Names must be unique.
• Date. Enter the date when your company observes the holiday. In other words, the date when employees will be paid Holiday or Holiday Premium pay.
• Holiday Type. Defines different thresholds for Holiday Pay. For example, when employees are paid double-time for working on certain holidays but time and a half for others. Holiday Type is an optional field.
• Is Bank Holiday. Click this check box if the holiday is a day when banks will be closed and unable to process pay-roll transactions.
• Reference Code. Enter the code used to reference this holiday when exporting data from Dayforce WFM. • Copy. If the company Pay Holiday already exists for a prior year, use the Copy button to add a new record that can
be modified. The copied record displays with the word ‘Copy’ at the end of the name.
Step 2: Add the new Pay Holidays to a Holiday GroupPay Holidays must be attached to a Holiday Group before they will appear on employee time sheets. Holiday Groups are attached to employees on the People (My HR) screen.
Path: Pay Setup > Holiday Groups1. Select the Holiday Group you want to work with. In this example, we are working with the USA Holiday Group.
The Available column lists the Pay Holidays defined in Dayforce WFM. The Current column lists the Pay Holidays assigned to the selected Holiday Group.
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2. In the Available column, double-click each Pay Holiday to add to the Holiday Group. The Pay Holidays are moved to the Current column.
Holiday groups are assigned to employees in People (My HR).
Path: People (My HR) > Employment > Employment, Compensation, and Policy Settings
3. Click Save
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Verify balance rollovers for entitlementsIf Dayforce tracks your company’s benefit policies (such as vacation or sick), check the configuration of your balance rollover. This makes sure that the proper balance will be carried over to the new year, before the new year begins.
Path: Pay Setup > Entitlements > Entitlements
During Q4, review policies and special cases that might need manual intervention. This includes some attendance policies that reset at year-begin (for example: carry calendar-date resets or accumulated points for late-in/early-out punches).
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Update benefit plan rates Check your benefit plan rates. Benefit costs often change each year.
Path: Benefits Setup > Plans and Options > choose the appropriate plan type, plan, and plan option > Rates tab
Step 1: Verify the current benefit plan year Rate Basis
Step 2: Click Add on the Rates tab and enter the Start Date for the new benefit plan year
Step 3: Add the appropriate new rate, then click Save
Step 4: Verify that the previous rate’s end date is equal to the last day of the current benefit plan year
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Tax filing tipsThis section includes steps you must take under certain circumstances, how these actions affect your tax filing, and ways to minimize tax filing errors.
Critical, time-sensitive issue?Always call CTS instead of emailing if you have a critical, time-sensitive issue that requires immediate attention (for example, the need for a manual deposit to ensure timely payment of liabilities for late payroll data). Email does not guarantee the issue will receive our immediate attention. It is imperative to speak directly to the CTS team so that we make take immediate action.
Payments that CTS does not supportCTS supports payroll taxes only. Other types of taxes (for example: corporate, sales and use, or excise) are not in-cluded in this category. CTS does not process these more common payments/filings:
• New York SDI/NY Family Leave. This payment is forwarded to a private insurance company instead of a tax jurisdiction.
• Nevada Modified Business tax return. We do not capture the data required for this return. Possible manual filing is available.
• Washington SDI. WA Labor and Industries (L&I).• State Worker’s Compensation. The only agencies supported are those that are reported on a jurisdictional
filing: NM, OR, and WY. CTS does not process any other agencies.
Reasons we debit your accountThe following list contains some of the more common reasons we may debit your account:
• Periodic tax liabilities. Account activity reflected on your Payroll Summary Report as total taxes.• Deficit balance on the quarterly tax statement. Certain situations may cause an amount to be charged to your
quarterly tax statement. Typically, these are charged to your account 50 to 60 days after the close of the quarter.• Agency inquiries. Inquiries, also known as penalty and delinquency notices, inform you that a filing error,
problem, or discrepancy may have occurred in previously filed deposits or returns. Your company may owe an additional payment.
• Amendment processing. Depending on the type of notice or adjustment being made, amendments may result in your company owing additional taxes.
• QE variances. If the amount previously deposited to a tax agency and the amount due to a jurisdiction are different, your company may owe more taxes.
Tax code fallout processDefinition and process“Fallouts” are tax liabilities that the CTS system cannot process because the tax code is inactive, is invalid, or needs to be set up on your tax jurisdictional profile. Each time your payroll tax data is submitted, CTS compares the received tax data to your tax jurisdictional profile. Tax data that does not correspond to your profile is held in a suspense account and not deposited until we receive verification from you. A lapse in confirmation or resolution may generate agency notices, amendments, and penal-ty and interest.CTS is required to report all liabilities to the tax agencies by the actual check date when they occurred. Conse-quently, the longer it takes to resolve and pay these amounts to the agencies, the greater the potential for agency penalty and interest — for which you will be responsible.Note: Agency-assessed penalties (for which you will be responsible) may already be applicable when you receive the first fallout notification due to agency deposit requirements.
Fallout team Our Fallout team will assist you with the fallouts process. This team’s focus and priority is to work with you to en-sure resolution of fallouts and to minimize rework and penalty exposure.
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• Reply to correspondence about fallouts to this team (at [email protected]), rather than to your CTS Rep. • Outgoing correspondence from this team will include their contact information, email, phone, and fax number
where you can refer your updates. To assist you in resolving tax code fallouts, a fax or email will be auto-generated to notify you each time we receive a payroll tax transmission that includes data for a tax code that is either inactive or not set up on your Client Master File (CMF). The notification will list all “fallout” jurisdictions and indicate the liability date and tax amount for each. You must validate the status of each jurisdiction so we can take appropriate action. Notifications will continue to be sent on a per-payroll basis until the fallout condition is resolved for the jurisdiction(s) in question. These notifi-cations will only list the current liabilities; not previous “fallout” liabilities.
Tax code fallout notificationEach month, you will receive a “fallout aging report” notification that summarizes pending fallout activity for the current quarter.Use the tax code fallout notification to advise us of the status of each jurisdiction listed, as follows:• If the fallout is valid, your authorization is required for us to set up this jurisdiction on your tax profile. Juris-
dictional requirements may state that you first register with the jurisdiction and obtain an account number to update your tax profile. You will need to provide information and/or documentation for the jurisdiction, includ-ing your agency-assigned tax ID or a copy of the registration form submitted to the agency, and a completed Power of Attorney (POA). If you have multiple company IDs with the same jurisdictional fallout:o Notifications. Respond to these for each company ID so we can update accordingly o Supporting agency information. Forward one per each jurisdictional tax ID The validated jurisdiction will be created upon receipt of the required information. All liabilities received to-date will then be processed and deposited accordingly.
• If the fallout is invalid, you must reverse the liability via Dayforce adjustments and/or recode the employee. This will prevent additional fallouts from occurring, correct previously submitted data, and halt the notifica-tions for this jurisdiction.
• Ensure that all Local PA Act 32 coding is completed to address fallouts you have received. PA Act 32 applies to all employers with work locations in PA outside of Philadelphia. If you have missing or incorrect political subdi-visions (PSD) codes, fallouts may occur.
Customer actionResolve all outstanding fallouts by the due date indicated in target dates to ensure quarterly filings in all valid jurisdictions. Additionally, during the QE cycle, your CTS rep will advise you of any new or remaining fallouts. You will have a limited time to resolve these items prior to the quarterly filing.Contact your CTS Rep as soon as you are aware of a new jurisdiction requirement to avoid fallouts. Failure to re-solve your fallouts will result in inaccurate returns and create the potential for agencies to apply monetary penal-ties and interest to your account, for which you will be responsible.
Manual depositsDayforce must receive data three business days prior to the check date to ensure timely deposit. Contact CTS if you:
• Will be processing adjustments within this time frame (this may accelerate deposits)• Must process a payroll that does not meet this time frame
If you process bonus payments fewer than three business days prior to the check date, but at least two busi-ness days before the deposit due date, a manual transaction* will be necessary. You must:
1. Notify CTS at least two days prior to the deposit due date. CTS will provide wire instructions.2. Wire funds for the tax amount no later than 9:00 a.m. PST the day prior to the deposit date. 3. Provide the wire transfer’s federal confirmation number to CTS. CTS will only make the deposit after the receipt of
your funds is confirmed.4. Send a breakdown of the tax liability (by tax type) to CTS via a case. Include the Payroll Summary Report.
*There will be a fee per jurisdiction associated with any manual transactions.We will make every effort to ensure a timely deposit. You will be responsible for penalty and interest generated due to a manual transaction. In addition, we will make every effort to ensure that your tax funds are not debited from your account when these liabilities are processed through Dayforce. Note: This is a manual process and “double drafts” occasionally occur. CTS does not accept responsibility for bank charges or interest fees assessed resulting from double drafts in these manual deposit situations.
Looking for missing dataCTS must have complete tax reporting data for the current quarter on file to ensure an accurate and timely filing.Did you join our service after the current quarter’s first check date? If so, to avoid fees, within two weeks of your first Ceridian check date, provide all current quarter tax liability and deposit information.The data that CTS has the day after the due date indicated in target dates is what will be used to file your quarterly return. Amendments may be required to correct missing or late information. You will be responsible for any fees, penalty, and interest incurred as a result of incorrect filings.
Customer actionComplete the Current Quarter Tax Liability and Deposit Information Forms included in the Welcome Package or contact CTS for the required form. The form must be completed with the following information for each check date prior to starting our service:
• Employer tax liabilities• Employee tax liabilities• Tax deposit amounts• Tax deposit dates• Deposit frequency information
This information must be supplied two weeks from your first check date with Ceridian to avoid the late fee.
Amendment proceduresCTS prepares and files amendments on your behalf for tax periods that CTS originally processed. Once the amend-ment is completed, CTS provides the amended return and supporting documentation to the agency. We also mail a copy of the amended return for your records.
Which situations require an amendment?You may need to make adjustments to payroll tax returns and deposits reported in a prior quarter or year. Amend-ments may be necessary for various reasons, including:
• Reporting an employee’s earnings to the wrong state• Reporting non-taxable wages as taxable• Failing to report earnings• Negative wages• Forms W-2c• Third-party sick pay• Adjustments made after the published deadlines• Reporting corrections requiring the use of YTD adjustments to modify information for a prior quarter within
the current year
Requesting an amended return:1. Contact your CTS Rep to discuss the need for amendments and to identify required reports/documentation.
Your CTS Rep can also discuss the associated fees.Provide the information/documentation needed to complete the amended returns, which may include:• All wage and tax types affected• The portion of each adjustment to be applied to each quarter• Copies of your payroll reports reflecting the adjustments and/or negative wages• Prior quarter adjustment reports, applicable U.S. Wage and Tax Reports and/or Employer’s Quarterly State
Report of Wages Paid• Additional requested information, including:
2. Additional taxes may be owed, depending on the type of adjustment. When this happens, you will receive an Authorization to Debit within three days of the request.
ReorganizationIs your company going through a reorganization? If so, it is imperative that you contact your Payroll Support team as soon as you are aware of the situation. This ensures a smoother transition plus allows CTS the time needed to take proactive steps with the tax agencies.
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What is a reorganization?A company reorganization occurs when the company restructures its business:• Moving its state of incorporation (reincorporation)• Merging or consolidating with another corporation (merger or consolidation)• Assuming the operations of another company (predecessor/successor)
IRS regulations and tax filing implicationsThe IRS recognizes reincorporations, mergers, consolidations, and predecessor/successor relationships as federally qualified reorganizations. Under IRS regulations, the reorganizing employer must follow specific federal regulations with regard to payroll tax reporting requirements. The FEIN that an employer uses following a corporate reorganiza-tion dictates how tax returns and W-2s will be filed and who will file these returns. How the employer chooses to use the FEIN in the reorganization will determine if the employees are released, retained, or if the new corporation rehires them.For purposes of determining employee taxable wage limits, wages may carry over to the new organization or may end with the reorganization. Thus, there are many factors that may affect your quarter and year-end tax filings. Notify CTS in a timely fashion and we can help to ensure that your payrolls and payroll taxes are processed and reported accurately and on time.
Note: Your Payroll Support team can assist you in ensuring that we have the proper information to set up your new account on our system. Ceridian does not, however, provide legal information or advice regarding reorganizations. For questions about what type of reorganization best suits your company’s needs, or the legal ramifications, contact your CPA or attorney.
Business being dissolved?Should your business become dissolved, provide CTS with an on-going company contact person. We need the con-tact name, address, phone number, and email address. This person should be able to address any problems or provide additional funding, if necessary. In addition, review IRS guidelines regarding accelerated W-2 filing. Open a case with Ceridian to request accelerated filings services, if needed.
Taxpayer responsibilities when engaging a third-party providerPer the IRS, be aware of your continued responsibility as a taxpayer.
You are responsible for the timely filing of employment tax returns and the timely payment of employment taxes for your employees - even if you have authorized a third-party (such as Ceridian) to file the returns and make the payments.
The IRS recommends that you enroll in the U.S. Treasury Department’s Electronic Federal Tax Payment System (EFTPS), at no charge, to monitor your account and ensure that timely tax payments are being made. Enroll in EFTPS on-line at www.eftps.gov or call (800) 555-4477 for an enrollment form.
State tax authorities generally offer similar means to verify tax payments. Contact the appropriate state offices directly for details.
If you have Maine employeesTo verify payments have been made and properly credited, you can contact the state of Maine as follows:
Maine Revenue Services• 207-262-8475• www.maine.gov/revenueMaine Department of Labor (for SUI)• 207-621-5120• www.state.me.us./labor/for_employers/index.html
Correspondence tipsContact your CTS Rep when sending documents such as agency notices, tax code fallouts, rate changes, deposit frequency changes, etc. Your CTS Rep can also assist with questions about funding, billing, adding a tax code, and can provide copies of tax returns.
Important CTS emails/faxesCTS will send reports to you when events occur that affect your payroll tax filing. The following are the most com-monly distributed reports and the actions you should take:
• Periodic Fallout Reports. Your payroll tax transmission included data for a jurisdiction that is either inactive or not set up at CTS (by TSID). The report will indicate the liability date and the tax amount for each jurisdiction. See tax code fallout process.Action: Inform CTS of each jurisdiction’s status so that we can take appropriate action.
• Authorization to Debit Form. Obtains authorization to draft funds for an agency notice or an amendment.Action: Complete and return the form to CTS within three business days.
• Information Request Form. Requests specific information to resolve inquiries or to file amended returns.Action: Complete and return this form to CTS within three business days.
• Tax Liability Summary. Summarizes your CTS-processed payroll tax and/or payment solutions data.Action: Report any differences between the Tax Liability Summary and your payroll records to CTS. Note: Contact your CTS Rep if you do not receive your payroll liability fax/email receipt. You may also request that CTS send transmission receipts via email instead of fax.
• Quarterly Tax Edit Analysis Report. Sometimes referred to as the W-2 Analysis Report or Balancing Report. CTS generates this report internally. It reconciles the periodic payroll totals against your QTD totals. It also recon-ciles your payroll YTD (W-2s) against the CTS cumulated YTD.Action: CTS will work closely with you to resolve variances that affect your quarterly filings. Your prompt re-sponse to issues on your Quarterly Tax Edit Analysis Report will expedite our balancing efforts. This helps ensure compliant quarterly filings. Early completion of needed QE adjustments allows more time for resolving out-of-balance situations.
Mail to CTSAgency pre-printed forms and noticesSend CTS all agency pre-printed forms, rate notices, deposit frequency notifications, and other tax-filing related updates. This will ensure compliant and accurate processing of your tax liabilities and returns.
• SUI rate notices. CTS participates in rate exchange programs with many state unemployment agencies. For-ward copies of your SUI rate notices to CTS to enable us to:
• Update rate information for states that do not participate in a rate exchange program (Alabama, Delaware, Idaho, Iowa, Puerto Rico, South Carolina, Virgin Islands, and Wyoming)
• Verify tax ID information• Confirm that all tax codes are set up
• Deposit frequency notices. Forward these to CTS as soon as possible. This will minimize, or even avoid, agen-cy-imposed penalty or interest assessments for late deposits. These notices specify the agency-assigned de-posit frequency for your company. Many agencies base an employer’s deposit frequency on the dollar amount of liabilities for a pre-determined “look-back” period.
• Pre-printed tax return forms. Forward these to CTS as soon as they are received. CTS uses these forms to update your company’s setup. Your returns are filed using these pre-printed forms when required.
• Refund checks or credit memos. Tax jurisdictions match payments received versus liabilities reported on a monthly, quarterly, or annual basis. If an overpayment is detected, the agency issues either a refund check or a credit memo. Action: If you receive refunds or credits, verify that they are valid. Forward a copy of the refund check or credit memo to CTS for our records. Contact CTS if you are unsure of the validity of the refund or credit. Cashing a check for an invalid refund will result in penalty and interest charges.
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Agency inquiries (notices): action stepsAn inquiry is a tax agency notice alerting an employer to a tax filing error, problem, or discrepancy in previously filed deposits or returns. Inquiries, also called “agency notices,” come in many formats, and may be sent to you for various reasons (for example, out-of-balance returns or a willful failure to pay taxes). These agency requests for additional funds, missing data, and other information, should be emailed to CTS immediately. CTS has a department with ana-lysts trained specifically on inquiry processing. These analysts determine the best course of action, and then provide the agency with the necessary information, payments, or documentation of deposits and returns.You will be sent a copy of jurisdiction correspondence. Although some agency inquiries request information only, oth-ers impose penalties for non-compliance. In addition, interest on any late tax deposits is often assessed to repeat — and sometimes even first-time — offenders. It is, therefore, important to respond in a timely manner to the agency’s or CTS’ request for information or funds.To expedite processing, email all agency notices that indicate a delinquency, penalty or interest, missing information, or a filing issue directly to our Tax Filing Operations department at [email protected]. You can still fax tax notic-es to CTS, however, email is the preferred method. All other informational mail, such as agency preprints, should be forwarded to your CTS Rep.Follow the submission guidelines to ensure receipt and processing of your agency notice. A tracking number notifica-tion will be sent to you within 48 hours. If you do not receive the notification, contact your CTS Rep.
Deposit frequency changesSend all tax deposit frequency notices to your CTS Rep immediately upon receipt. It is critical that deposit frequency changes be input in a timely manner to avoid penalty and interest for late deposits. When emailing notices, send a separate email for each FEIN. You may include multiple notices in the same email, but they must pertain to the same FEIN to avoid any update errors.
Rate changesSend all unemployment rate notices to your CTS Rep. When emailing notices, send a separate email for each FEIN. Mul-tiple notices pertaining to the same FEIN may be included in the same email.
After rate changes are updated, your next payroll processed will include a “retro” calculation. This will update the tax impounds back to the first day of the current quarter for that jurisdiction. Note: A few states traditionally update their rates in Q3: NH, NJ, TN, and VT.
FAQs:Q: Which documents can be forwarded to [email protected]?A: Only agency-generated tax inquiry notices (for example: agency delinquency notices) should be sent to this email address. Any documents you receive that are not tax inquiries (for example, SUI rate updates or frequency updates) should be forwarded to your CTS Rep for review/action via a case. Include only one notice/attachment per email. Back-up documents should be included. If sending multiple documents, ensure that each has a unique file name. The system will accept the first and ignore subsequent attachments with identical file names.
Q: Which types of attachments can CTS accept?A: Our system requires TIF formatted files. We can accept and convert PDF files. We do not accept the following for-mats: zip files, Excel, JPG, Web, and password-protected documents.
Q: Will I receive confirmation once my tax notice is received via email?A: Yes, we will send two notifications.The first is an automated confirmation email. The second is a confirmation indicating that the notice has been logged into STO and assigned a tracking number. If you do not receive this confirmation within 48 hours, or do not see the inquiry on STO, contact your CTS Rep.
Q: When using email, how do I identify the type of notice, jurisdiction, or the period the notice relates to?A: Add any identifying information in the subject line. The subject line of our reply email will restate the identifying information originally submitted. This is helpful for managing multiple jurisdiction notices.
Q: I sometimes add tax notice information in the body of my email. How is this handled? A: The body of the email will not be read or scanned along with notices. Imaging technicians will not call you to answer questions or clarify statements. This email address is only used for the receipt of tax notices. If you need to write a message, include it in the attachment with the notice.
Note: Some agencies take several weeks to process CTS responses. The agency may send you subsequent computer-generated notices during the interim period. Forward subsequent notices to CTS.Documents that should not be forwarded to CTSDocuments pertaining to the following items should not be forwarded to CTS:
CTS resources & linksResources and links are included in this section to ensure your information is up-to-date.
Source Tax Online (STO)Source Tax Online (STO) is our web-based tool – available for free to CTS clients. It provides a picture of your com-pany’s relationship with CTS including current jurisdictions and deposits filed. All you need to use STO is an email address, an Internet connection, and a browser. Access STO at this link: www.sourcetaxonline.com
FeaturesYou can view your data on-line, print it or download it to a Microsoft Excel® spreadsheet. This tool provides a re-al-time snapshot of your jurisdictional profile that you can check for accuracy and updates on a regular basis. With STO, you can view:
• Quarterly tax statements • Processing status • Funding reports and account history• Ledger reports and account history• Status of an agency inquiry (by viewing and monitoring its progress through the work flow process used to
resolve a tax inquiry)• Status of an amendment• Funding alerts on the Customer Snapshot page, when additional funds are required to resolve an agency inquiry• Jurisdictional profile (tax codes, account ID#s, and rates)• Other products and services are available
STO is optimized for viewing with Microsoft Internet Explorer®, version 10.0 or higher. It uses data encryption and unique user IDs and passwords to protect the privacy of critical business information and ensure safe and secure access via the Internet.
Source Tax Online Demo The STO demo is a preview of some of the main features. To access the demo:
1. Go to www.sourcetaxonline.com2. Enter ‘demo’ in both the user ID and password fields3. Click continue4. Explore the site. For date range options, use the year 2010 as the start range
RegistrationRegistering is quick and easy:
1. Go to www.sourcetaxonline.com2. Click ‘Create a New Account’3. Submit the simple on line form
A confirmation email with your login ID and password will be sent within five business days.
Supporting documentationThese user’s guides are available for additional information on this application:• Source Tax Online Website Login Instructions and Password Security Guide. Explains how to log in the Source
Tax Online website, change your password, and request a new password. • Source Tax Online User’s Guide. The purpose of this guide is to familiarize the customer with the Source Tax On-
line website and its on line functions.• Quarterly Tax Statements: Reference Guide. This guide describes the reports that a customer’s quarterly tax
statement may contain and includes samples.• Various release notes
Account assistanceContact the Help Desk for any STO account issues. This includes if your account is inactive or if there is a change to your STO profile (such as terminating access for a former employee or adding a new FEIN). The Help Desk is available Monday - Friday, 6:30 a.m. - 5:00 p.m. P.T. Reach them at 1-800-859-6236 or at [email protected]
Customer Support is available Monday through Friday from 7:00 a.m. to 9:00 p.m. ET. First-time users will be prompted to set up a user ID and PIN number.
Ceridian Support Portal: https://support.ceridian.com. Available 24/7.
Submit and track cases for both Dayforce and CTS Customer Support teams.
Request Professional Services projects such as having benefits or ACA set up, creating a new entity for 1099s, or requesting a new pay group.
Access Dayforce Product News, which includes hot compliance topics as well as the latest product updates.
Find answers to questions in the new Dayforce Knowledge Base (KB). This contains the job aids, release notes, payroll guides and other reference material.
This FREE web-based tool displays your payroll tax data in an easy-to-read format through your Internet browser. STO takes the guesswork out of agency requirements.
Submenu Options: For questions about your Payroll Card, press ............. 1
For all other Benefit Services products, press ..... 2
Submenu Options: For Payment Solutions or to stop payment on a check or EFT, press ........... 1
For Ceridian Tax Service (CTS) questions including tax wires, deposits, jurisdictional inquiries, or Source Tax Online support, press ......... 2
For questions about setting up or changing local tax codes or unemployment rates in Dayforce, press .................. 3
1 Dayforce
Option 2 Ceridian Tax Filing & Payment Solutions
Option 3 Recruiting Solutions
Option 4 Other Ceridian
Product Support
Option
Step 1: Dial 1-855-432-9367. Step 2: Press 1 for English then press 1 for U.S. Step 3: Select from the phone menu options below:
(To prompt menu to repeat, press *; to return to a previous menu, press #; to speak to an operator, press 0)
Phone menu
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Quarterly tax filing To ensure that you take the necessary actions to achieve successful payroll tax filings, the following information addresses vari-ous tax filing situations.
State unemployment ratesCTS works with many state unemployment agencies to receive updated SUI rates. Since many jurisdictions do not provide this information, it is necessary for you to forward any agency rate notices to CTS.Note: When a SUI rate changes in mid-quarter, the ensuing retroactive calculation of the taxes applies to the entire quarter. This will be noted as a line item on your Payroll Summary.
Customer actionRemember to use our on-line tool, Source Tax Online, to review your CMF. This is a real time snapshot of your juris-dictional profile and should be reviewed for accuracy/updates on a regular basis.
Dayforce adjustmentsMaintaining your company’s payroll may require you to adjust employee wages, taxes, or state designation. The ad-justment method you use will affect how the adjustment flows through to CTS.There are two basic rules governing the method, or transaction, used to make adjustments:1. All corrections or adjustments relating to the current quarter should be entered using void/manual transac-
tions or quick entry.2. All corrections or adjustments to prior quarters of the current year must be entered using prior quarter ad-
justments. Contact your CTS Rep to determine what options are available to report this YTD adjustment.
Void/manual transactionsVoid/manual transactions that adjust current quarter data are considered current data. The net effect will be auto-matically included in the Payroll Summary Report and transmitted to CTS.
Advantages:Void/manual transactions and quick entry:
• Affect all accumulations (current, QTD, YTD), and update customer reports• Affect tax filing and are included in the totals transmitted to CTS• Provide a better audit trail for the adjustments
Disadvantages:• Void/manual transactions and quick entry affect all accumulations equally. QTD amounts can be distorted if
the adjustment is from a previous quarter. Void checks or negative adjustments could result in negative QTD wage/tax amounts (see correcting negative wages).
• Current wage/tax amounts on reports/downloads will be distorted (current paychecks, only).• A void/manual transaction or quick entry made after the published deadline for QE recloses will not be includ-
ed in the quarterly totals sent to CTS. This will necessitate amended returns. The additional tax—or refund of tax—will be reflected on the amended returns, with the tax liability transmitted as a result of the void/manual transaction held and processed with the amended return(s). You will be responsible for any penalty or interest incurred as a result of this situation.
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Prior quarter adjustmentsThese adjustments, used to adjust or correct wage/tax data relating to a prior quarter, affect only YTD totals and do not affect current quarter accumulations. When you complete these adjustments, be sure to send the Prior Quarter Adjustment Report to your CTS Rep.Things to remember when adjusting prior quarter data:
1. Make prior quarter adjustment2. Contact CTS if an amendment is required
Advantages:• Prior quarter adjustments affect neither current quarter QTD totals nor periodic wage and tax amounts.
Disadvantages:• Prior quarter adjustments are not transmitted to CTS until QE or YE. This could result in penalties and interest
(for which you are solely responsible) if the adjustments were intended to offset current quarter liabilities.• Current amounts are not updated, and are not included in the periodic data sent to CTS.• Prior quarter wage adjustments that accumulate to a limit (for example: FICA, FUTA, or UC) may cause the
taxable wages-to-limit totals on the Quarterly Report to be out of balance against the total on the Payroll Summary Report. This can occur for each processing in the quarter.
• Prior quarter adjustments may cause the payroll YTD and the accumulated return totals on the tax filing system to be out of balance.
For more information, from the Ceridian Support Portal, search the Knowledge Base for the Dayforce Implementa-tion Guide. Search for ‘Prior Quarter Adjustment Report’.
Correcting negative wagesYou may have negative wages for employees at QE. Negative wages most commonly occur when either sys-tem-generated checks are voided or if QTD adjustments are made in the current quarter for an employee who terminated in the previous quarter.Although the employee’s YTD totals may now be correct, the employee’s QTD negative earnings may be unaccept-able to a state/local agency.CTS receives two types of wage and tax information at QE:
• Summary totals. Wage and tax totals per agency for your company• Employee detail. Wage and tax information is required for all state unemployment agencies, some state
income tax agencies, and many local jurisdictionsMost agencies will reject negative wage or tax totals on wage detail. They require an amendment to the actual period when the wages were over-reported. The negative wages must be removed from the wage listing before submitting it to the agency. CTS extracts the negative wages and re-totals the remaining, positive earnings on the wage detail. This new figure must equal the total amount of wages reported for your company, therefore, CTS automatically adjusts your company’s quarterly gross wages on the return to equal the new total of the employees’ positive wages.
Is an amendment required?Gross wage information reported per employee for prior quarters can only be adjusted with an amended return and wage listing. Otherwise, the total earnings reported for individual employees are overstated, compared to their actual earnings. CTS cannot make a true assessment of your amendment needs.
Customer actionConsider the following when assessing the need for an amended return:
1. As a general rule, state unemployment and local reporting will require an amendment due to employee-level detail2. The amount of negative wages for your employee may be a factor in determining the need for an amended return3. Does the agency require both summary total and employee-detail data? If yes, file an amended return
Quarter-end processing explainedQE is a critical time for both you and CTS since there is a short time frame to resolve quarterly filing issues. The process begins when Dayforce generates the internal Dayforce Quarterly File based on all adjustments completed by the deadline in the target dates calendar - similar to your Dayforce Wage and Tax Report. The Dayforce Quarterly File contains all QTD information required for your quarterly returns, including employee-level detail. This file also contains your payroll YTD information.A key task of our QE processing is reviewing our internal report called the CTS Quarterly Tax Edit Analysis Re-port. This report is CTS’ primary QE balancing tool. It compares your quarterly data to the periodic liabilities sent throughout the quarter, then flags significant variances. ‘Variances’ are differences between the total liabilities reported on a periodic basis and the QTD liabilities provided in your Dayforce Quarterly File. The purpose of this comparison is to identify over/under-depositing situations. The comparison is also necessary to verify the tax total that will be reported on the tax return.
Report information:QTD information
• Dayforce Quarterly File. This is an internal file showing the Dayforce QTD accumulation of your wages/taxes. CTS will balance and then file this quarterly amount. Keep in mind, for calculated taxes (such as FICA, FUTA, SUI, SDI), the CTS Quarterly Tax Edit Analysis Report multiplies the subject wages by the tax rate to calculate the quarterly liability. The vast majority of local tax returns are not calculated. They are instead filed based upon the withholding tax included on the Dayforce Quarterly File.
• Total tax return. This is the sum of the Dayforce Quarterly File plus any CTS adjustments, although it is usually the same amount as the Dayforce Quarterly File. These figures will be used for filing tax returns.
• Taxes impounded. This reflects all liabilities and adjustments received during periodic processing. It includes periodic liabilities, adjustments, and prior liabilities (incurred prior to starting on our service).
• Quarterly tax statement variance. This is the comparison between the total tax return data and the taxes impounded. It is the difference between quarterly and periodic transmissions.
• If the number is zero, the cumulative totals of the periodic liabilities equal the QTD totals• A negative variance indicates an understatement of wage or tax. Additional deposits may be required• A positive variance indicates an overstatement of wage or tax
YTD information• Dayforce Quarterly File. This is the Dayforce YTD accumulation of your wages/taxes. This total will reflect your
current Form W-2 totals for taxes/wages.• Tax return total. This is the calculated YTD figure of the Dayforce Quarterly File posted for each quarter. It is a
cumulative total of all Dayforce Quarterly File figures received to-date.• W-2 variance. This flags variances between the YTD accumulation from Dayforce and the accumulation of the
quarterly totals of wages/taxes that have been processed. CTS will make every effort to review these variances on a quarterly basis with you. Your assistance and input is needed to resolve significant YTD variances. The most common variances are YTD payroll adjustments completed or employee transfers.
We often need your assistance to resolve CTS Quarterly Tax Edit Analysis Report variances, and may forward it for your review. If a variance cannot be resolved, you will need to advise CTS which total is to be reported on the appli-cable tax return (otherwise, we typically use the data received in the Dayforce Quarterly File).Early completion of needed QE adjustments allows more time for resolving out of balance situations.
What causes variances?• Rate changes. If tax rate changes are made during the QE processing period, variances may result, since periodic
taxes were calculated using a different rate. This situation is most common during first quarter processing, due to the number of agency rate changes that occur at that time of year.
• Moving an employee. Correcting an employee’s jurisdiction coding can result in a tax variance in both the jurisdiction the employee was moved from and the jurisdiction where the employee was moved. Employee transfers from one company to another can also generate substantial variances.
• QTD adjustments. QTD adjustments are not recognized by the tax filing system until the quarter is closed and final payroll quarterly wage and tax figures appear on QE payroll reports. This will result in a variance during the Quarterly Tax Edit Analysis Report resolution since this adjustment will not reflect in your periodic liabilities.
• YTD adjustments. The tax filing system does not recognize YTD adjustments until the quarter is closed and fi-nal payroll quarterly wage and tax figures appear on QE payroll reports. This will result in a variance in the Quar-terly Tax Edit Analysis Report resolution since this adjustment will not reflect in your QTD or periodic liabilities.
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• Missing mid-quarter/mid-year data. If you started with CTS after the first payroll of the quarter or in the second, third or fourth quarter of the year, missing payroll data could cause variances.
• Improper payroll adjustments. Ensure any adjustments made in Dayforce are transmitted to the tax ser-vice. A duplicate payroll or adjustment can cause a variance.
Variance resolutionCTS will notify you of variances that require your assistance or verification. We will work with you to resolve variances affecting your quarterly filings. CTS will review the Quarterly Tax Edit Analysis Report and forward the edit to you, if necessary. Some steps to assist in your edit resolution are as follows:
• Maintain a file of all Prior Quarter Adjustment Reports and Wage and Tax Reports for each quarter. These re-ports are useful in determining the source of a QTD and/or YTD adjustment and when reviewing employee transfer activity. Compare the variances to your payroll reports to determine if all payroll adjustments are reflected on your QTD totals.
• Work with CTS, responding promptly to informational or funding requests. Requests typically include:• Confirmation that tax rates are valid• Confirmation of QTD/YTD adjustments completed• Written authorization for any modifications to your QTD/YTD data• A debit authorization request for additional tax funds
Your prompt response to issues on your Quarterly Tax Edit Analysis Report will expedite our balancing efforts and help ensure compliant quarterly filings on your behalf.
Third-party sick pay (TPSP)TPSP is defined as sick or temporary disability payments to employees from a third-party. Some examples include insurance companies, employee union plans, temporary disability plans, self-insured plans, or employee trusts. To ensure TPSP liabilities are included in your current quarter filings, they should be processed within Dayforce. The complexities of reporting TPSP benefits paid to your employees can easily cause important details to be overlooked. Here are a few helpful tips:
• Update your employees’ records to include benefit payments to all appropriate areas. On a federal level, TPSP is generally taxable for FIT, FICA/SS, FICA/MED, and FUTA
• Review your state’s SIT and SUI requirements to ensure your company is in compliance and your employ-ees’ records are accurate. TPSP benefits are taxable earnings in many states.
• Familiarize yourself with the IRS reporting requirements. The IRS provides details of these requirements in the following publications: Circular E, Employer’s Tax Guide, Publication 15, and Employer’s Supplemental Tax Guide, Publication 15-A. There are three common “types” of company categories, each with slightly different deposit and reporting requirements.
• Review your company’s contract from your third-party provider. The contract will spell out areas of deposit and reporting responsibilities, including depositing of FIT when withheld from the benefit payment.
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QE/YE expectationsA brief overview of the QE process
• Once the quarter is closed, CTS receives a file from Dayforce with your QTD and YTD payroll totals as well as employee-level wage detail (for those jurisdictions that require it).
• When you have unresolved tax code fallouts, your CTS Rep will contact you for assistance. Reply within 48 hours whenever possible. Because state unemployment tax does not accumulate in Dayforce unless there is an unemployment rate greater than 0%, this may be your first notification of state unemployment (SUI) fallouts.
• Your CTS Rep will review the Quarterly Tax Edit Analysis Report. You will be notified if there are significant discrepancies or errors. As QE has an accelerated time-frame, your immediate attention to any notification is necessary. Some common reasons for discrepancies are: • QTD or YTD adjustments made in Dayforce • Employee transfers between TSIDs or FEINs• Over or under withheld FICA• Negative wages - see correcting negative wages• PA Act 32 errors (for example: incorrect PSD codes or invalid addresses including p.o. boxes)• Changes in unemployment rates after you close the quarter in Dayforce• Missing mid-quarter information from a prior vendor (for new customers/TSIDs).• Third-party sick pay (notify us if you have sick pay to report).
• Depending on the reason for the discrepancy, we may ask for your authorization to make adjustments or changes to your QTD information. Some situations might require follow-up after the close of QE (for example: an amended return or corrections in Dayforce).
• Once your figures are finalized and we are ready to prepare your tax returns, you may be sent an Authorization to Debit Form, depending on the amount due. Your prompt approval and return of this notification is request-ed. Our deadline for finalizing any changes/adjustments as well as securing funding is typically around the 11th of the month following the close of the quarter.Note: Any amounts paid with the return are subject to penalty and interest.
Quarterly tax statementThe quarterly tax statement is generally available 45 days from the close of the quarter. Did you know you can access your quarterly tax statements within STO? Go to Documents > Document Images > Tax Statements. Next, enter the business period required as well as a business date. Note: Select a business date that is one quarter passed the business period.
Debits• Any tax due not collected during the QE time-frame will be indicated along with the date that we will debit
your account.
Quarterly tax statement refunds issued via ACH credit• If there is a refund reflected, return the quarterly tax statement’s “refund request form:”
• Clients funding via ACH or draw-down wire are eligible to receive refunds via ACH credit instead of receiv-ing a paper check. It will be deposited directly into your bank account on file with Ceridian. Refunds will process more quickly and securely.
• If your company utilizes other funding methods, you will receive a paper check.
• Retain the quarterly tax statement. It is your cash reconciliation as well as your record of all of the agency filings and tax deposits.
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IndexSymbols
1094-C/1095-C. See Form 1094-C/1095-C
1099. See Form 1099
A
ACH debit 15Adjustments 46, 55, 57, 64, 66, 68
importing 36prior quarter 64
Agencyinquiries 55, 59, 60notices 55, 60POA 9pre-printed forms 2, 59
Amendments 57, 59, 65procedures 57processing 55
Applied-for ID 2, 11, 31Authorization to Debit Form 57, 59,
68Auto-Fill task 18
B
Balance rollover 53Benefit plan rates 54Benefits
training 8Bonus runs 15, 56
C
Client Master File 11, 64CMF. See Client Master FileCompany address 32Credit memos 2, 59Current Quarter Tax Liability Form 57
D
Deduction taxability 37, 38Deposit frequency notices 59, 60Deposit information forms 57
E
Earning & Deduction Matrix Valida-tion Report. See U.S. Earning & Deduction Matrix Validation Report
Employee detail 65Employee Pay Run History Report 31,
Form W-2 31boxes 36, 38checklist 32configuration 32corrections 28deduction taxability 37, 38earning taxability 35Employee Self-Service 28Employer Copy of the W-2 Report
28employer name 32Employer Tax Identification Num-
bers 33Federal Identification Number 33local tax ID number 33mailing options 42mapping 35, 36, 38preview 27, 48print/delivery 42Puerto Rico 29retirement plan indicator 34Self-Service 40services 26sort order 41state tax ID number 33third-party sick pay 39time line 26
training 27Form W-2c 28, 39FUTA Credit Reduction 65, 66, 67
H
Holidays 3, 50, 51
I
Information Request Form 59
J
Jurisdictions 2
L
Legal entity name 32Local tax ID number 33
M
Manual deposits 55, 56Manual transactions 56, 64
N
NACHA. See National Automated Clearing House Association
National Automated Clearing House Association 15
Negative Wages 57, 65, 68Nevada Modified Business Tax Return
