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USPS-R Calendar Year End Preparation - Life Insurance Premiums Over $50,000 (NC1 Reporting)

Life Insurance Premium (Formerly-NC1) The Life Insurance Premium pay type is used when processing the taxable amount of life insurance premiums on W2's for coverage in excess of $50,000.  Any Life insurance amounts are taxed by Medicare and Social Security, as applicable. No Federal, state, or OSDI tax is deducted from this amount during the payroll process.  The USPS-R software provides the ability to withhold city tax on non-cash earnings. This can be activated by checking the "Tax Non-Cash Earn" box on the city tax record in the Core>Payroll Item Configuration option.  *Note:  Please verify with your specific municipalities for their requirements.

Click here for the IRS link for reporting Group-Term Life Insurance.  In “Publication 15-B”, click on the Group-Term  Life Insurance Coverage section.  You will find the tables for rates on Page 14 of this documentation.

USPS-R gives you options on how you can report Taxable Amounts of Life Insurance Premiums over $50,000 for the calendar year.  The best option is reporting these amounts before the final payment for the employee for the calendar year or at time of termination of employment through the Payroll-Current or Payroll-Future area using the Pay Type of “Life Insurance Premium”.

If the Life Insurance Premium Pay Type was NOT USED prior to the last pay of the calendar year, you may use the Core>Adjustments area to add the Life insurance Premium amount for W2 reporting purposes.  Under  Core>Adjustments, click Create, find the Employee, choose the Payroll Item- 001 Federal Tax, choose the Type of “Life Insurance”, enter in the Transaction Date and enter the Amount to show correctly on the W2 form and to ensure that the Quarter balances.  When the record is saved, this amount will automatically adjust the Federal, State, OSDI, City and Medicare total and taxable gross amounts for W2 reporting purposes.  No manual adjustments are needed for the Gross and Taxable Gross amounts.  Medicare withholding on this amount MUST be paid.  If the Medicare withholding is paid by the employee, employer or employee and employer, adjustments will be made using Core>Adjustments/Type-692/693 Medicare Tax to the Amount Withheld and also the Board Amount of Payroll Item. If Medicare is fully board paid (Pickup), then the total Adjustment should be made to the Board Amount of Payroll Item.  *Note: The city is only adjusted when the Payroll Item Configuration setup for the city payroll item is checked to Tax Non-Cash Earnings. 

Five Year Forecast

Five-Year Forecast reporting period is open through November 30th in EMIS-R.  Five Year Forecast extracts and reports are available in USAS-R. 

Extracts:

The user-friendly Five-Year Forecast extracts can be found under Periodic>Five Year Forecast .  The grid displays the Forecast Line number, the three years actual revenues and expenditures, the average percentage of change and in the last column the current fiscal year estimates. 

• When selecting the CSV format type, the grid will be pulled into an EXCEL spreadsheet for district use.  This option is similar to the CSV file generated in Classic's USASFF program and can be used as is or uploaded into another forecast software.
• When selecting the Excel format type, it automatically uploads the forecast data into SSDT's Five Year Forecast spreadsheet.  There are several tabs in SSDT's forecast spreadsheet, 
  • The Parameters tab will appear when opening the spreadsheet and will pre-fill the district info and Fiscal year.   
  • Click on the Data to view the data (amounts) pulled from USAS-R.   
  • The Forecast tab (displayed below) will pull the amounts from the data tab into an easy-to-read spreadsheet allowing you to enter the forecasted amount. Once complete, you can save the Forecast tab in CSV format and upload it into EMISFFE.
  • The SSDT Forecast spreadsheet also include a tabs with Instructions on how to use it as well as additional features under the Extras, Summary View, Percentage View and Charts tabs.

Reports

The SSDT Financial Report by Forecast Line Number is similar to the USASFF report from Classic can be found under Reports>Report Manager or the Home page. 

Formatting and Submitting Forecast to ODE

• Forecasts must be in CSV format and uploaded into EMISFFE using the 'five year forecast spreadsheet import' option.  Once uploaded successfully, you will then export the data, selecting the appropriate year and period (P).  The exported data will be in the correct format to be successfully imported into EMIS-R.  Collect, prepare and preview the forecast data.  When ready to certify/submit, upload forecast notes at that time.  
• You may review your posted forecast on ODE's website. 
• ODE has provided a 'Helpful Links for Treasurers - Five Year Forecast Development and the Submission Process' page on their website.