WHY WE ARE HERE Agenda Provide a basic

WHY WE ARE HERE Agenda • Provide a basic overview of Win. Cap & ACA • Review the W 2 process in Win. Cap PR • Review the 1099 process in Win. Cap Accounting • Share Information & Best Practices with each other. • Network with other Win. Cap customers

Win. Cap - Affordable Care Act Reporting 3

Win. Cap - Affordable Care Act Reporting Win. Cap is continuously being enhanced to provide the data necessary for our clients to be in compliance with ACA Reporting. Currently, Win. Cap provides the following: IRS Form 1095 -C Employee Statement of Employer Provided Health Insurance Offer and Coverage IRS Form 1094 -C Employer Transmittal of Employer Provided Health Insurance Offer and Coverage The programming complies with the reporting requirements for the following: • Employer-Sponsored Self-Insured Plans • Employer-Sponsored Group Insurance Plans • Both Employer-Sponsored Self-Insured and Group Insurance Plans 4

5 Win. Cap - Affordable Care Act Reporting Employers & Health Coverage Providers 2017 Due Date This chart applies only for reporting in 2017 for coverage in 2016 (IRS December 8, 2016) Action 2017 Reporting Due Dates for… Applicable Large Employers – Including Self-insured Employers That Are Not Those That Are Self-Insured Applicable Large Employers Provide 1095 -B to responsible individuals Coverage Providers – other than Self. Insured Applicable Large Employers* Not Applicable** Mar. 2 Not Applicable** Paper: Feb. 28 E-file: Mar. 31* Mar. 2 Not Applicable Paper: Feb. 28 E-file: Mar. 31* Not Applicable File 1094 -B and 1095 -B with the IRS Provide 1095 -C to full-time employees File 1095 -C and 1094 -C with the IRS

Win. Cap - Affordable Care Act Reporting 6

Win. Cap - Affordable Care Act Reporting Win. Cap offers four different methods of updating the system for ACA Reporting. 1. Benefits Module – Active/On Payroll – Off Payroll/ Dependents 2. Import – Employee Healthcare Cost – Employee Dependent Health Coverage 3. Post from prior year and monthly 1095 -C values 4. Update the Employee IRS Form 1095 -C manually Note: Harris strongly suggests the same process is utilized for the entire calendar year to avoid confusion and the reporting of any inaccurate health care information. 7

Win. Cap - Affordable Care Act Reporting Win. Cap Data – Win. Cap Benefits Module Active/On Payroll 8

Win. Cap - Affordable Care Act Reporting Win. Cap Data – Win. Cap Benefits Module Active/On Payroll - Enrollment Changes 9

Win. Cap - Affordable Care Act Reporting Win. Cap Data – Win. Cap Benefits Module Active/On Payroll – Declinations 10

Win. Cap - Affordable Care Act Reporting Win. Cap Data – Win. Cap Benefits Module Active/On Payroll – Not Eligible 11

Win. Cap - Affordable Care Act Reporting Win. Cap Employee Benefit Record 12

Win. Cap - Affordable Care Act Reporting Employee Dependent Coverage Self-Insured Districts Only The Employee/Self and Dependent coverage data can be imported to record the coverage status of the enrolled individuals for the calendar year and specific months covered. The Mass Update Employee Dependent Health Care Costs routine on the Employee Benefit/IRS Form 1095 Tab can be used to update the dependent monthly enrollment status as needed. 13

Win. Cap - Affordable Care Act Reporting Health Care Cost Templates Examples of Monthly Detail Health Care data extracted from other data sources, the Emp. Hlth. xls import template. 14

Win. Cap - Affordable Care Act Reporting Health Care Cost Templates Individual import template data required for the IRS Form W-2 Box 12 Code DD—Cost of employer-sponsored health coverage. 15

Win. Cap - Affordable Care Act Reporting Employee IRS Form 1095 -C An Employee Benefit IRS Form 1095 -C is found on the Employee Maintenance Benefits tab. This record is available for all clients to populate or edit manually. 16

Win. Cap - Affordable Care Act Reporting Employee IRS Form 1095 -C Using the option button to populate all months – when in ‘Modify’ choose the options button. 17

Win. Cap - Affordable Care Act Reporting Employee IRS Form 1095 -C For Employee/Self -Dependents to appear in the lower portion of the Employee IRS Form 1095 C they first must be added in the Employee Benefits/ Off Payroll-Dependent Tab. ‘Modify’ 18

Win. Cap - Affordable Care Act Reporting Employee IRS Form 1095 -C To edit the Employee IRS Form 1095 -C, in ‘Modify’ select the health coverage field to be updated and enter value desired. Save record. 19

Win. Cap - Affordable Care Act Reporting Employee IRS Form 1095 -C To remove or delete an Employee IRS Form 1095 -C, in ‘Modify’ choose the options button and select ‘Delete 1095 -C Record’. This will remove all data associated with Employee 1095 -C. Save record. 20

Win. Cap - Affordable Care Act Reporting 21 Evaluating the Data Report Name Use Newly Hired Employees Report Review list against employee record to Reports/Employee Listings, Letters, Enter Hire date or First pay date in the validate benefit data. Labels / Newly Hired Employees Report calendar year date range. Employee Demographics Using Where Clause, finds all employee records with a hire date or inactive date in the calendar year. To be reviewed against the employee benefit data. Used to find employees meeting the criteria selected that have no benefit record or the benefit record inactive. Employees with Missing /Inactive Benefits Pathway Additional Information Reports/Employee Listings, Letters, Labels / Employee Demographics BETWEEN(Employee. HIREDATE, {01/01 /2016}, {12/31/2106}) OR BETWEEN(Employee. LAYOFFDATE, {01/ 01/2016}, {12/31/2016}) Reports/ Employee Benefits/ Data Validation Reports/ Employees with Missing or Inactive Benefits Criteria: Upper Benefit: Health, Position Tab: Primary , Benefits Date Range: Portion of fiscal year validating, Employee Beneft Type: On Payroll. Employee Additional Pay Items Report Used to find employee records where Reports/ Employee_HR / Employee Criteria will need to be entered based an API has been authorized for a Reports by Position / Employee on each client unique circumstances. payment in lieu of enrolling in health Additional Pay Items Report. insurance. Employee Position Report Used to find employee records where Reports/ Employee_HR / Employee Criteria will need to be entered based a position has been authorized for a Reports by Position / Employee Position on each client unique circumstances. payment in lieu of enrolling in health Report. insurance. Payroll Activity_Verification Report Used to find authorized payments Reports/ Payroll/Transaction Reports / Criteria will need to be entered based made to employees in lieu of enrolling Payroll Activity _ Verification Report on each client unique circumstances. in health insurance. ERM - Benefits Columnar Report Created to find missing ACA reporting Reports/ Employee Benefits/ Enhanced See Notes on the next page of this fields in the On Payroll Benefit Record Reporting/ Employee Benefit Columnar Power point. Report

Win. Cap - Affordable Care Act Reporting Evaluating the Data ACA Reporting fields can be located for editing via the following options: Employee Benefit records: • Mass Update On Payroll Employee Benefits • Mass update Off Payroll Employee Benefits Employee IRS Form 1095 -C: • Mass Update Employee Health Care cost • Mass Update Employee Dependents Health Coverage Note: These update the employee benefit record and is not used to not update the Employee IRS Form 1095 C related data. 22

Win. Cap - Affordable Care Act Reporting Discussion? 23

Win. Cap – W 2 Procedures and Preparation 24

Win. Cap – W-2 Procedures and Preparations Year End Reminders for Payroll 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Please refer to Year End Reminders for Payroll for further information. Run the Taxable Wages and Withholding Errors Report Add an Adjusting Pay Period Recalculate the Fiscal Year/Calendar Year Totals Verify W-2 Information using the W-2 Detail Report Finalize W-2 File Calculations for 20 XX Run W-2 Forms: 3 Up Employee Copies Corrections to Employee's W-2 before the SSA file is sent Run W-2 Disk for Electronic Submission Employer Copies (Copy D) W-2 Forms: 2 Up Employer Copies Corrections after the disk is sent to the SSA Final Closing of Adjusting Pay Period (Calendar-Year 20 XX Adjustments) 25

Win. Cap – W-2 Procedures and Preparations Payroll Period Message 26

Win. Cap – W-2 Procedures and Preparations Non-Wage Transactions • Non-Wage Transactions for items such as personal use of district vehicle, Group Term Life Insurance benefits exceeding $50, 000, and other Non-Wage Benefits, etc. must be processed during one of your December payrolls, preferably the first payroll, allowing for correction of errors should they occur. Non-Wage Transactions will generate tax withholdings for FICA and Medicare, so the employee must have a wage payment to cover these deductions. Only the Non-Wage item for Former Employees’ Group Term Life Insurance can be entered when there is no wage payment for that individual 27

Win. Cap – W-2 Procedures and Preparations Employer Health Care Cost Detailed information about each employee transaction that was added to the W-2 Health Insurance accumulator can be seen and verified by running Reports / Employee Benefits / Employee Health Care Costs Report Please refer to the Quick Start Guide for W 2 Reporting Health Coverage 28

Win. Cap – W-2 Procedures and Preparations Run the Taxable Wages and Withholding Errors Report This routine searches for abnormalities in taxable wages based on actual wages and deductions recorded in Win. Cap. It will address issues for a new site that cutover to Win. Cap in July to assure that all wage and tax data has been reconciled. It will also identify situations where taxes and or wages may have been incorrectly overridden within paycheck maintenance. 29

Win. Cap – W-2 Procedures and Preparations Add an Adjusting Payroll (Manage/Payroll/Pay Period Maintenance) Add an Adjusting Pay Period Add a pay period using the same date as the last payroll period in December. Payrolls creating negative tax liabilities may not be acceptable for certain tax reporting purposes. Utilizing the same date will combine the taxable payroll adjustments in positive amounts for reports. Choose a Pay Period Type of EOYADJ - End of Calendar Year Adjustments. This payroll should be opened and immediately posted prior to opening any payrolls in the new calendar year. It should not be closed. Posting the pay period immediately will prevent you from adding regular payroll transactions by mistake. It will allow you to process demand checks, voids, and refunds of overpayments. 30

Win. Cap – W-2 Procedures and Preparations Add an Adjusting Payroll Voided Payroll Checks All voided payroll checks should be processed as they occur. An adjusting payroll may be needed to process voided checks that must occur in the calendar year but have only been brought for voiding after the last scheduled payroll has been completed. Wage Repayments result when an employee repays the employer for wages paid in error. The employee issues a check (or cash) to cover the amount of the overpayment when the original payroll check was cashed (or direct deposit funds utilized). A repayment is often necessary if an employee is no longer employed and future wages are no longer due. Wage repayments should be processed before the end of the calendar year or in the adjusting payroll in the year in which they occur. A wage repayment made by an employee before December 31 st will be reflected on that calendar year’s W-2. 31

Win. Cap – W-2 Procedures and Preparations Recalculate Fiscal Year/Calendar Year Totals It serves to update Fiscal and Calendar Year totals with the latest numbers. Normally it stays in balance but there are issues when they have 2 FY’s open and post transactions to the previous FY. We are now strongly suggesting to run this routine at Calendar Year End and before any payroll in July/August after closing the Payroll Accrual Period. 32

Win. Cap – W-2 Procedures and Preparations Verify W-2 Information using the W-2 Detail Report (ReportsPayrollFederal & State Tax ReportingW-2 Detail Report) This report is actually a routine that create the file that the W-2 s are printed from. Up until the W-2 file is finalized; when this report is run, the file is recalculated. As corrections are made to the YTD wage or tax data, or any additional transactions are processed since the W-2 Detail Report was last run, this report must be run again to make sure these changes are reflected in the W-2 file. Use these reports to tie out all data before finalizing the W-2 file. Once the Finalize routine has been run, this report may still be run but they will not recalculate the W-2 file, they will only display the current values. 33

Win. Cap – W-2 Procedures and Preparations Finalize W-2 File Calculations for 20 XX (ReportsPayrollFederal & State Tax ReportingFinalize W-2 File Calculations for 20 XX) After all verification has been completed, the W-2 file must be Finalized before W-2’s may be printed. The Finalize W-2 File Calculations for 20 XX routine locks out any further changes to the W-2 file, which prevents any additional transactions or paychecks from being added to the previous calendar year. While pay periods may still remain Posted or even Open in the previous year, such as the End of Year Adjusting Pay Period, nothing may be altered in those Pay Periods unless the W-2 file is re-opened. 34

Win. Cap – W-2 Procedures and Preparations Reopen W-2 File Calculations for 20 XX Reopening the W-2 file allows the W-2 Detail report to recalculate the file when printed so that it is useful for review and verification prior to Finalizing again. Once all adjustments have been added, Finalize the W-2 file again to print the W-2 s. NOTE: Changes may be made to employee demographics at any time, such as address, name changes or even social security number corrections. These changes will only impact the W-2 file and the W-2 if they are made prior to the Finalization routine. If the changes are made after the Finalization they will not be captured on the W-2 for the tax year in question. 35

Win. Cap – W-2 Procedures and Preparations Run W-2 Forms: 3 -Up Employee Copies 36

Win. Cap – W-2 Procedures and Preparations 37

Win. Cap – W-2 Procedures and Preparations W-2 Consent Screen- Legal Requirement for Electronic Submission The IRS regulations requires that an employee provides consent in order to receive their original W-2 electronically. Allowing the employee to consent to receive their W-2 electronically will update the employee’s record in Win. Cap to “do not print w-2. ” The change will be recorded in the “Employee Record Change Report” in Win. Cap in order to provide proof of consent. 38

Win. Cap – W-2 Procedures and Preparations W-2 Consent Screen- Legal Requirement for Electronic Submission The IRS regulations requires that an employee provides consent in order to receive their original W-2 electronically. Allowing the employee to consent to receive their W-2 electronically will update the employee’s record in Win. Cap to “do not print w-2. ” The change will be recorded in the “Employee Record Change Report” in Win. Cap in order to provide proof of consent. When consenting to receive a W-2 electronically, the user will receive confirmation that they have successfully consented to receive their W-2 electronically. From the confirmation screen the employee may check the W-2 availability for the current year. The W-2 s must be finalized in Win. Cap in order to be viewed and printed successfully in Employee Self Service. 39

Win. Cap – W-2 Procedures and Preparations “Do not print W 2 / Do not print 1095” 40

Win. Cap – W-2 Procedures and Preparations Discussion? 41

Win. Cap – 1099 42

Win. Cap – 1099 Procedures 1. 2. 3. 4. 5. Run Form 1099 Detailed Transactions Report Run Other Vendor Review List for 1099 Corrections to 1099 transaction data Printing 1099 Forms 1099 Electronic Filing Procedures 43

Win. Cap – 1099 Procedures Run Form 1099 Detailed Transaction Report 44

Win. Cap – 1099 Procedures Run Form 1099 Detailed Transaction Report The option “Eligibility-Potential” will provide a list by vendor for all payments that might be eligible for 1099 reporting, based on the following information in Win. Cap: a) Payment transactions that have already been flagged in Win. Cap as 1099 expenses. b) Transactions for vendors where the 1099 box in the Vendor Information tab of Vendor Maintenance (Manage/ Accounts Payable/ Vendor/Customer) has been checked, whether or not the transactions have been flagged as 1099 payments on the 1099 screen of Vendor Maintenance. c) G/L Accounts 522 and 600 expenses for object codes that have been designated as 1099 eligible expense categories. . 45

Win. Cap – 1099 Procedures Run Form 1099 Detailed Transaction Report The option “Eligibility – All Expense” shows all expenses paid to 1099 vendors rather than just those in categories defined for 1099 usage. The option “Actual flagged” shows all of the 1099’s that have actually been flagged to print. This means that the vendor is flagged as a 1099 vendor, as well as the object codes and payments made. The option “Actual flagged” shows all of the 1099’s that have actually been flagged to print. This means that the vendor is flagged as a 1099 vendor, as well as the object codes and payments made. The report has several options and includes a “where clause” field for more refined reporting. . 46

Win. Cap – 1099 Procedures Corrections to 1099 transaction data . 47

Win. Cap – 1099 Procedures Corrections to 1099 transaction data Within Vendor Maintenance, (Manage/Accounts Payable/Vendors/Customers), there are four vendor type options available: No Special Type, Attorney, Medical and Employee/ Former EE. New vendors are marked “No Special Type” as the default. If Medical or Attorney is selected, the system will automatically force the 1099 box to be checked. The type Medical will receive a 1099 for payments greater than $600 even if they are “Incorporated”. For Attorney type vendors, payments categorized as gross proceeds (category 14) will generate a 1099 for any amount. Also, note that payments made through Payroll to “The Estate of” a deceased employee will generate a 1099 for any amount and these payments will not have an associated Vendor file. Payments to “The Estate of” a deceased employee automatically appear on the Form 1099 Detailed Transactions Report with a “~” in front of the vendor number. . 48

Win. Cap – 1099 Procedures Corrections to 1099 transaction data 49

Win. Cap – 1099 Procedures Corrections to 1099 transaction data Within Object Maintenance (Manage/Budget Maintenance/Tables/Object) a designation must be made for all object codes to designate whether payments made within the code will be 1099 eligible. Similar to designating a vendor record as 1099 eligible; if an object code is designated with a 1099 reportable category after payments have been made, it will be necessary to designate each vendor’s payments as a 1099 payment within vendor maintenance. Any 1099 payment to a G/L account, which cannot be categorized by object code, including G/L Account 600 expenses that have not been assigned to a valid budget code, will be assigned to the non-employee compensation category on Form 1099. Payments can be redesignated within the vendor maintenance 1099 tab by changing the category as required for the payments. 50

Win. Cap – 1099 Procedures Printing 1099 Forms 51

Win. Cap – 1099 Procedures Printing 1099 Forms (Reports/ Accounts Payable/ Form 1099 Detailed Transaction) · Only those transactions with an actual 1099 amount to be reported. Errors with vendor information, if any still exist, are shown on this report; however, transaction-level messages are not, as only valid 1099 payments are listed. · Only those vendors which have the 1099 box checked on the Vendor Information screen. · Only vendors with valid 1099 data, whether or not they exceed the 1099 reporting threshold. When the actual Form 1099 is printed, only those vendors with an accumulated total of 1099 eligible transactions greater than or equal to the specified threshold will produce a form. 52

Win. Cap – 1099 Procedures Printing 1099 Forms (Reports/ Accounts Payable/ Form 1099 Detailed Transaction) When the actual 1099 forms are printed (Reports/ Accounts Payable/ 1099 Forms) a prompt will appear for the threshold amount to be used. It has been initially set for the IRS specifications ($600), but it may be set to a lower amount if desired. We recommend printing a copy of these forms on plain paper before printing them on the actual 1099 stock the first time, to make sure everything is printing properly. Do not print the Recipient Copy of the 1099 on the forms until confirming that the printed copy lines up with the forms. The printer driver that is used for Check Printing should be used to achieve the best alignment. 53

Win. Cap – 1099 Procedures Discussion? 54

Win. Cap Resources www. wincap. com Support Center/End User Support 55