10/7/2010

EVOLUTIONAL CHANGES BRINGING FORTH REVOLUTIONARY IDEAS

Time waits on no one and growth is inevitable.

WELCOME TO OUR 2010 YEAR-END

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Agenda
Year-End Tools Year-End Overview 2010 2011 Preparation Available Features

Year-End Tools

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Client Communications

In October, ADP will provide the following information for your review: 2011 payroll and management report schedules p y g p Information on year-end documents available on ADP4ME, including: 2010 Response Recap Sheet General Ledger Schedule Form Supply Order Form Bonus Payroll Schedule Request Form

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Client Communications

In November, ADP will provide the following information for your review: Masterfile Analysis Letter (also known as Client y ( Error Report) Quarterly Tax Verification Letter Caf 125 Benefit Setup Verification Report Information on critical deadlines for adjustments Information on special payroll options

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Masterfile Analysis Letter

Processed two times in 4th quarter, typically in November and December Identifies conditions that may negatively impact quarter and annual tax reporting Please verify all warnings Enter corrections no later than the last scheduled payroll of the year

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Masterfile Analysis Example

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Quarterly Tax Verification Letter

Quarterly Tax Verification Letter (QTVL) verify g g py the following and return a signed copy to ADP: Federal and state tax identification numbers Tax options and tax filing responsibility Legal name and return address Qualified pension default Indicator for direct reporting for non-tax filing company codes

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QTVL Example

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Special Considerations
State jurisdictions that do not allow Applied For IDs for filing:
AL SIT/SUI AR SUI CO SUI DC SUI DE SUI FL SUI HI SUI IN SIT & locals MA SUI MN SIT/SUI MT SIT OH SIT PR SUI UT SIT/SUI WA SUI WI SUI

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Special Considerations
Sample listing of local jurisdictions that do not allow Applied For IDs for filing: Denver, CO/Aurora, CO Wilmington, DE Wil i t Kenton County, KY Kettering, OH Contact ADP for information on a specific local Jefferson, AL Springboro, OH S i b Scranton, OH

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Special Considerations

If any of the previous state or local jurisdictions are in an Applied For status, ADP must have a proof of the ID and a f f Supplemental Authorization Form before 01/12/11 Any SUI returns not filed will also affect the 940 annual return

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Special Considerations

In many states clients can register on-line at the states, on line agency website Visit www.adp.com for agency website information. Applied For IDs result in additional ADP filing fees of $25.00 per jurisdiction, per month, per company code

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Client Communications
Letter #1 is produced in December and it typically includes: Year-End Checklist Adjustment Processing Guidelines Information on the purge Time appropriate tax information Letter #2 is produced in late January and it typically includes: Time appropriate tax information

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Preview Forms W-2/Wage and Tax Register

ADP will provide preview W-2s on request The first copy will only incur shipping fees Additional requests will incur processing and shipping fees Requests for previews must be submitted in writing Last day to request a preview is 12/03/10 Previews are produced on CD-ROM or iReports only The CD will be delivered via your normal tax report delivery method Verify social security numbers

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Preview Request Form Example

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Wage and Tax Register

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A Wage and Tax Register is created for each of the following reasons: 1 day after last payroll of the year (by 12/30/10) 1 day after an out-of-sequence payroll Within 7 days after an AdjustMate payroll (for an amendment) With the Forms W-2 Shipped within 7 business days For faster viewing ability, reports are available with our iReports feature (available the following day)

Wage and Tax Register

Verify the following: Prior taxable entries for transferred employees Review special compensation options Employees with multiple tax jurisdictions Qualified pension indicator

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Wage and Tax Register

Review any credit employees: SUI credits will be automatically corrected by the tax center and a Form W-2 will print for the employee SIT or Y/E credit employees will not receive a Form W-2 until the error is corrected

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Wage and Tax Register Credit Example

Example of a credit employee:

Look for check marks.

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Special Indicators listed on the right side.

Statements of Deposits and Filings

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Statement of Deposits and Filings (SODs) verify the f f following: Federal, state and local tax identification numbers SUI Rates Filing Responsibilities SODs may be used by most agents in place of actual returns

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Statements of Deposits and Filings

Mailing for 4th quarter 2010 SODs begins on 02/01/11 Mailing for annual SODs begins on 02/28/11 y g Allow 10 business days from mailing date before expecting receipt of SOD

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Online Statements of Deposits

Coming Soon :
New Tax Service Website
Statements of Deposits Agency Response Letters Amendments Copies

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SOD Example

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Year-End Overview 2010

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W-2 Display for Qualified Pension

W-2 box 13 label is Ret. plan If employee coding or company default is Yes, the employee will receive a W-2 even if they have no year-todate (YTD) earnings Changes to individual employees are done in the tax panels in the payroll product

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W-2 Display for Qualified Pension

If employee coding or company default is No, the employee indicator must be turned on manually t d ll If YTD 401(k) is greater than 0.00, ADP automatically places an X in the box regardless of the company default

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Masterfile Analysis Qualified Pension

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Qualified Pension Changes

Employee Maintenance ~ Maintain Employee ~ Tax Withholding ~ Special Federal Tax Info tab

Qualified Pension Changes

Enter changes to this field prior to your last scheduled payroll in 2010

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Example W-2

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4th Quarter Closeout

The 4th quarter 2010 closeout process will begin in the morning on 12/16/10

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Additional Payrolls
A form must be completed and returned to the Solution Center to schedule additional payrolls: Prior to last day of quarter For bonus payrolls p y For adjustment payrolls For special payrolls to update special compensation items These payrolls are billable at the normal per payroll rate

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Additional Payroll Request Form Example

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Out-Of-Sequence (OOS) Payrolls

This is a payroll processed after a quarter closes or after processing a payroll with a pay date in the next quarter

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Out-Of-Sequence (OOS) Payrolls

A form must be completed and returned to the Solution Center to schedule the OOS with ADP prior to transmission

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Out-Of-Sequence (OOS) Payrolls

A new Wage and Tax Register will be automatically produced when the OOS payroll is processed prior to 01/12/11 The employee masterfile will be updated The information is available on management reports, pay data files and/or general ledgers

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Out-Of-Sequence (OOS) Payrolls

Additional processing charges may apply There is also an additional charge for the tax filing reclose and new updated Wage and Tax Register j y processed as OOS p y payrolls until Adjustments may be p 01/31/11

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Out-Of-Sequence (OOS) Payrolls

OOS Processing Availability Up to 01/12/11 = tax filing reclose processed After 01/12/11 = tax filing amendments required

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Out-Of-Sequence (OOS) Payrolls

All OOS payrolls will require a signed Additional Payroll Request Form or an Absolution Letter, due to possibility late deposits Be sure to check the out-ofsequence box in PayForce Do not back date a period-end date For example, if your last periodend date was 12/18/10, entering a period-end date of 12/17/10 would be incorrect

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Out-Of-Sequence (OOS) Payrolls

The Period End Date must always be at least one day greater than the last period ending date used The OOS Period End Date may be the same as the last period ending date used

AdjustMate Payrolls

Please verify you are using the most current j ( ) version of AdjustMate (3.2.3) Version includes the IRS required fields i.e. ascertain date and reason codes New amendment procedures to follow Reduce time to complete New tracking tools

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AdjustMate Payrolls

All adjustments to prior quarters must be submitted via AdjustMate software Separate software installation is required AdjustMate updates the masterfile and quarter balances Does not update pay data files and/or traditional general ledgers Information available is for ADP GL

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AdjustMate Payrolls
All adjustments processed on or after 02/01/11 must be processed as an AdjustMate payroll Up to 3 days after the completion of your AdjustMate payroll, ADP will provide an updated Wage and Tax Register and send notification of the pending amendment d t The amendment will be finalized within 4-6 weeks after receiving your new Wage and Tax Register There is an additional charge for AdjustMate payrolls and amendment fees will apply

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2010 Forms W-2

ADP provides a Wage and Tax Register for each company code to be verified before Forms W-2 are printed You must return a signed Forms W-2 Approval Letter to ADP for each company code (including inactive company codes) in order to have the Forms W-2 printed

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2010 Forms W-2

Deadline to request Forms W-2 to be printed by ADP is 01/12/11 The shipping timeframe is 5-7 business days after ADP receives a completed Forms W-2 approval An employee duplicate copy of the Forms W-2 will be provided on CD only

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2010 Forms W-2

Forms W-2 Copy D (employer copy) is available on paper by request only and at an additional charge Please check the box on the Forms W-2 Approval Letter if you would like this copy Mail distribution is available for the Forms W-2 distribution Indicate you would like this service on the Forms W-2 Approval Letter W-2s will be loaded to the iPayStatements site for viewing on Monday, for W-2s processed the previous Friday through Thursday

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2010 Forms W-2 Approval Letter Example

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HIRE Act

HIRE Act credits reduce employer Social Security taxes based on the qualifying employees tax liability Reduces current tax deposits for instant revenue Box 12 indicator on the W-2

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Health Care Reform

ADP is working to develop automated, integrated solutions that are consistent with the provisions of the health care reform legislation ADP's Eye on Washington legislative updates can be found at: www.adp.com/healthcare

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Payroll Schedules - 2010

Thanksgiving Thursday, 11/25/10 is an ADP, a banking, and a courier holiday Christmas Eve Friday, 12/24/10 is an ADP holiday Possible banking and courier holiday ADP recommends you transmit one day earlier when a holiday falls between transmission day and pay day

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2011 Preparation

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Payroll Schedules - 2011

New Years Friday, 12/31/10 is an ADP holiday Possible banking and courier holiday ADP recommends you transmit one day earlier when a holiday falls between transmission day and pay day Changes to 2011 payroll schedules must be returned to ADP by 12/03/10

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Management Reports & General Ledgers

Management report and general ledger changes must be returned to ADP by 12/03/10, including: Changes to 2011 management report schedules Any schedule changes, accrual changes or account changes for general ledgers

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Special Calculations

Determine the need for additional calculations or updates Verify vacation and holiday accrual calculation and 01/01/11 reset routines Employees with no reset year will not qualify for reset

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Hours/Earnings/Deductions/Accumulators
Determine need for changes and/or additions to: Hours/earnings/deductions/accumulators Internal changes for benefit programs A form must be filled out for additions/changes

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Hours/Earnings/Deductions/Accumulators

Goal limits do not automatically clear at year-end Flexible Spending Account (FSA), Health Savings Account (HSA) and charity deductions must be changed or deleted Verify hours, earnings, deductions and accumulators on AutoPay Master Control Company Options

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Additional Services Available

Mass load of rate changes, benefits base updates, supervisor ID, department number or any other field in the application Completing spin offs and mergers in your application Mass end date of benefit and/or general deductions Insert new benefit deductions EMPLID re-numbering Input of merit review ratings

Annual Employee Deletion Purge

Any employee who is logically deleted will be physically deleted from the masterfile Logically deleted as the result of: A quarterly purge spin-off An employee spin off to another company code or the merging of two (or more) company codes These employees would not have any 2010 dollars Last day to adjust 2009 via AdjustMate is 11/12/10

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Annual Employee Deletion Purge

After the physical purge, adjustments to 2009 must be completed by ADP and additional fees may apply The file numbers will no longer print on the totals page of the AutoPay Master Control as Archived Employees Available for Prior Year Adjustments Only If physically deleted employees are rehired, they must be passed to ADP as new hires

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Quarterly Purge Timeline

4th Quarter 2009 1st Quarter 2010 2nd Quarter 2010 3rd Quarter 2010 Employees Employees Employees Employees Logically Logically Logically Logically Deleted Deleted Deleted Deleted Mid-February Mid-May 2010 Mid-August Mid-November 2010 2010 2010

Employees Physically Deleted November 2010

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PayForce Purge Process

Payroll Maintenance ~ Process Payroll Results ~ Receive Files

The file name will be PRXXX.YEP (XXX = the pay group) and the file must be loaded

PayForce Purge Process

The load process would be done for each pay group by going through:
Payroll Maintenance ~ Process Payroll Results ~ Load Files

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Year-End ADP/APA Seminars

In-Person Seminars: Atlanta, Georgia November 3 and 17 Elk Grove Village, Illinois October 29 and November 12 Dallas, Texas November 17 Cerritos, Cerritos California November 4 Orlando, Florida October 29 Southbury, Connecticut November 3 King of Prussia, Pennsylvania November 10 Norwood, Massachusetts November 17 and 18 Parsippany, New Jersey November 5, 11 and 12 Pleasanton, California December 1

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Year-End ADP/APA Seminars

Virtual Seminars: November 19 Morning and afternoon sessions November 23 Morning session December 2, 7, 8, and 9 Morning and afternoon sessions December 3 Morning sessions

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Available Features

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Go GREEN! Ditch the paper and save a tree!

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Go GREEN! Utilizing ADPs paperless options saves:

Time Money The Environment

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Paperless Options

Secure Internet delivery and access to payroll reports, allowing for query, efficient storage and easy printing

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Paperless Options

Employee self-service access to historical and current electronic pay vouchers, W-2 statements and 1099 forms via the Internet

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W-2 Services

ADP offers a service for clients who do not want to use internal resources to reprint or mail replacement W-2s

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W-2 Services

Allows employees access to an interactive p ( ) y voice response (IVR) system Available in early February, an employee could dial a toll-free number to: Request a copy of their W-2 Report an error on their W-2 Request assistance with W-2 services website Request a change of address

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W-2 Only iPayStatements

Browser based application that enables employees of ADP clients to view, save, and print their W-2s from any computer with an Internet connection W-2s available for 3 years Employees register online using: Employee ID (file number) Company code Zip code Social security number Tax year

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ADP TotalPay

Full service payroll account management ADP Full Service Direct Deposit Provides funding of an employees direct deposit account through an ADP bank account ADPCheck Provides funding of payroll checks through an ADP bank account ADP TotalPay Card Visa debit card for delivery of regular pay, reissue or manual pay for regular or terminated employees

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ADP TotalPay iNET

What is TotalPay iNet? Secure, web-based application that allows ADPs clients to process their own stop pays/reversals Who is eligible for TotalPay iNet? Clients currently using ADPs TotalPay service

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ADP TotalPay iNET

Benefits of utilizing TotalPay iNet: Eliminate potential exposure of confidential information Request a copy of an ADPCheck q py View un-cashed items reports View the status of an ADPCheck Receive instant confirmation a stop pay/reversal has been processed and updated to the ADP system

No additional cost for using this feature!

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OneADP Service

OneADP Service is an easy to use, client facing, web-based solution that provides interoperability across ADP's Client Relationship Management systems, allowing clients the ability to open, update, inquire and query case activity 24/7

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ADP4ME

ADP4ME is a One Stop Shop to find tools and information about ADP National Accounts products https://ADP4ME.ADP.com

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ADP4ME

Update your SUI rate Verify your payroll processing Track your packages sent from ADP Job-aids Job aids for all ADP National Account payroll payroll, human resources, benefits and time/labor management products Information related to year-end, user group meetings, communications sent from ADP and forms Much more

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Next Steps

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Follow-Up Items
Meet with your Consultant Establish a follow-up meeting to discuss year-end topics Address any specific q y p questions y may have you y

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Follow-Up Items

Emails will be sent throughout year-end, to provide reminders, critical dates and deadlines, and helpful resources to ensure you have a successful year-end experience Emails will be sent from NCN2_YE_Communicator@adp.com Contact your Consultant to be added to the distribution list or to make a change

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Thank you for your continued business with ADP!

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