Department of Accounts Payroll Bulletin Calendar Year 2014 May 27, 2014 Volume 2014-09 Cash Match System The Payroll Bulletin is published In This Issue of periodically to provide CIPPS agencies Enhancement the Payroll guidance regarding Commonwealth payroll Deferred Compensation operations. If you have any questions about Bulletin….... the bulletin, please call Cathy McGill at Processing Reminders (804) 371-7800 or Email at VRS Deduction Reminder – State Payroll Operations Less than 12 Employees Director Lora L. George Shift Pay System Assistant Director Cathy C. McGill Enhancement Cash System Enhancement Cash Match Previously deductions 045, DC and 046, AN MATCH, operated independently Synchronized from the corresponding employee contribution deductions. Manual audits were with Deferred required to ensure that the employer cash match was not paid without a coinciding Compensation contribution to an eligible deferral plan. Agencies stopped the employer cash match and Annuities for extended periods by changing the appropriate deduction frequency from to “09” This caused administrative difficulties because agencies had to remember to “00”. turn the frequency back to when it was time to resume the employer cash “09” match. Beginning May 27, deductions 045, DC MATCH, and 046, AN MATCH, have been enhanced to work in tandem with deduction 038, DEF COMP, and deduction 039, PRE TAX, respectively. Deduction 045, DC MATCH, has been programmed to take the lesser of one half of the amount withheld in deduction 038, DEF COMP, or the amount specified for deduction 045, DC MATCH. Deduction 046, AN MATCH, has been programmed to take the lesser of one half of the amount withheld in deduction 039, PRE TAX, or the amount specified for deduction 046, AN MATCH. As a result, deductions 045 and 046 will not process unless a corresponding amount is withheld in deduction 038 or 039, respectively. Please discontinue the practice of turning the frequency to for deductions 045 “00” and 046 to stop the processing of deductions unless the employee permanently loses eligibility for the employer cash match. (Examples: Salaried employee becomes a wage employee or Hybrid Retirement Plan employee ceases to contribute the max 4% voluntary contribution.) Deferred Compensation Processing Reminders
Department of Accounts Payroll Bulletin Calendar Year 2014 May 27, 2014 Volume 2014-09 In This Issue of the Payroll Bulletin….... Cash Match System Enhancement Deferred Compensation Processing Reminders VRS Deduction Reminder – Less than 12 Employees Shift Pay System Enhancement The Payroll Bulletin is published periodically to provide CIPPS agencies guidance regarding Commonwealth payroll operations. If you have any questions about the bulletin, please call Cathy McGill at (804) 371-7800 or Email at State Payroll Operations Director Lora L. George Assistant Director Cathy C. McGill Cash System Enhancement Cash Match Synchronized with Deferred Compensation and Annuities Previously deductions 045, DC and 046, AN MATCH, operated independently from the corresponding employee contribution deductions. Manual audits were required to ensure that the employer cash match was not paid without a coinciding contribution to an eligible deferral plan. Agencies stopped the employer cash match for extended periods by changing the appropriate deduction frequency from “09” to “00”. This caused administrative difficulties because agencies had to remember to turn the frequency back to “09” when it was time to resume the employer cash match. Beginning May 27, deductions 045, DC MATCH, and 046, AN MATCH, have been enhanced to work in tandem with deduction 038, DEF COMP, and deduction 039, PRE TAX, respectively. Deduction 045, DC MATCH, has been programmed to take the lesser of one half of the amount withheld in deduction 038, DEF COMP, or the amount specified for deduction 045, DC MATCH. Deduction 046, AN MATCH, has been programmed to take the lesser of one half of the amount withheld in deduction 039, PRE TAX, or the amount specified for deduction 046, AN MATCH. As a result, deductions 045 and 046 will not process unless a corresponding amount is withheld in deduction 038 or 039, respectively. Please discontinue the practice of turning the frequency to “00” for deductions 045 and 046 to stop the processing of deductions unless the employee permanently loses eligibility for the employer cash match. (Examples: Salaried employee becomes a wage employee or Hybrid Retirement Plan employee ceases to contribute the max 4% voluntary contribution.) Deferred Compensation Processing Reminders
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