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USPS Calendar Year-End Close Manual

USPS Calendar Year-End Close Manual – Splitting Files

Enter Remaining Payrolls Paid in CY Before File Split

Agencies can continue to process payrolls paid in CY using routine entry and maintenance procedures until the file splits. This includes the first December semimonthly, November supplementals and refunds and adjustments.

This year, for USPS agencies only, the direct deposit deadline for first-half, semimonthly payrolls is Tuesday, Dec. 11, 2018. The calendar year-end process will take place on Saturday, Dec. 15. This means that USPS will not be available at all on Dec. 15.

Any payroll generated after the split will have a payment date of Jan. 2, 2019, or later, and the earnings will be recorded in the NY accumulators. Also, procedures for entering CY reversals and adjustments will change after this date.

Note: System edits will prevent requests for a CY payroll on HSCU1 after the file split.

The first December semimonthly payroll, paid Dec. 17, 2018, will be included on the CY W‑2s. Any cancellations or reissues from this payroll should be processed as soon as possible, so that CY data is clean and in the proper period before the files are split.

Note: Run report 190 (Consolidated History) by Dec. 14 to produce a list of year-to-date totals. A summary version of Report 190 is also available (request on HNKPA). After the tax files are split, year-to-date totals will be from the current calendar year.

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Recouping Overpayments of Compensation

If the agency determines an overpayment of compensation occurred during the calendar year, the agency may follow the procedures for a reduction of the gross pay from a prior pay period by entering the transaction on the HUAU1 screen. This adjustment must be completed before processing the last CY payroll.

–OR–

After following the agency’s procedures for recouping overpayments, the agency may reduce the employee’s compensation for the net overpayment for the period in which the employee was overpaid by using Deduction 49. Using this deduction will reduce the employee’s pay and no personal payment is needed from the employee. During the batch process a payment is generated and posted to Fund 9015, which is the same fund used to process returned monies. The agency must then enter an HTMU1 transaction to correct the employee’s accumulators/taxables.

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Calendar Year-End File Split

After the file split, month-end reports (except for semimonthly agencies), quarter reports and clears run for any agency that has not yet completed reports and clears. USPS will close the CY files and set up the NY files. Once the files are split, the NY files open and all subsequent USPS payrolls will have payment dates of Jan. 2, 2019, or later.

As part of this process, BRP flags are reset and 457 catch up status is cleared.

Prior to the Calendar Year-End split, you may enter charitable contributions that employees designate on their CY SECC authorization form on the Charitable Contributions Detail (HNYU4) screen in the FUT AMT field. If you are adding a new charity to the employee’s record (i.e., new sub number), then enter only the sub number and the deduction amount in the FUT AMT field. Do not enter the frequency or start and end dates if you are inserting a new sub number prior to the file split. The file split program will clear current dated amounts and move future dated amounts into the current dated amount field. Also, a program will run prior to the file split to clear the inactive rows if:

  • Frequency (FRQ) = 0
  • Year to date (YTD) = 0
  • Future dated amount (Fut Amt) = 0

After the files split, agency accumulator totals will be:

Semimonthly

YTD = .00

MTD = 1st semimonthly payroll totals (payroll paid on Dec. 17, 2018)

QTD = .00

PQTD = 4th quarter CY accumulators

Monthly

YTD = .00

MTD = .00

QTD = .00

PQTD = 4th quarter CY accumulators

The files affected by the split are year-specific; CY data is kept separate from NY data. After the files are split, you cannot make changes to the CY files online. These files are:

Screen Description Screen ID
Agency Setup HØC
Employee Information HØB
Tax Tables HØA
Special Pays H1Ø
Deductions HØZ
Subdeductions HNY
Report Selection Dates HNK
Defined Contributions HNC

The following files are shared and are not year-specific; CY and NY processes will use the same files.

Shared Files

Screen Description Screen ID
Employee Identification HID
Employee Payment & Tax History HØH
Employee Taxable History HØN
Employee Special Pay/Deduction History HØM
Employee Leave Activity HM9
Employee Leave Balance HM8

Note: If you make a change to data that appears on form W‑2 (e.g., a change to an employee’s address in HIDU1), contact your USPS representative to request a rerun of report 83 to post the change to the W‑2 file.

Personnel Management Extract File Warning

Agencies that use the USPS Personnel Management Extract Files should note the daily extract file will be quite large for certain segments.

If you have selected HØB, HNY, HN1 and HØZ segments on the HNK11 screen, you will be receiving records for all employees as a result of the split. We will be resetting the BRP level indicator and clearing out all YTD accumulators.

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System Access After File Split

When your agency logs on, choose Option 6 from the USAS main menu. It will contain only NY data.

Use Option 14 on the USAS main menu to view (display only) CY data. After the file split, you can only change CY data through an LOA.

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CY Cancellations, Adjustments and Refunds Processed After the File Split

If you need to cancel, adjust or process a refund of a CY payment after the file split, you must do so online through the NY files. There are eight processes that can be performed in the NY files to update the CY files through batch processing. They are:

  • CY warrant cancellations
  • CY direct deposit callbacks
  • CY bank-returned money
  • CY employee-returned money
  • CY payments generated (Doc Type 5)
  • CY pretax deduction refunds
  • CY post-tax deduction refunds
  • CY regular adjustments (+/- with .00 net)

If you are processing a CY cancellation, callback, returned money or adjustment on an inactive employee (status 7), use the HØBUS screen to change the employee status to 3 in the NY files.

CY Warrant Cancellations

A warrant cancellation is necessary when the payroll officer determines that a system-generated payment is incorrect and must be reversed from USAS and USPS 2018 files.

Use the HPCAN screen to enter CY warrant cancellations. Based on a CY payment date, the system allows only a P in the YQ field. This action will result in the following:

  • Prior Quarter to Date accumulators on the NY files are reduced by the appropriate amount (no impact on the NY W‑2 or 941).
  • YTD accumulators on the CY files are reduced by the appropriate amount; the change is reflected on the CY W‑2.
  • PQTD accumulators on the CY files will be reduced by the appropriate amount; rerun fourth-quarter reports to reflect the change.

In addition, on the next final payroll:

  • The cancellation or reversal information is sent to USAS via the NY USPS/USAS Interface.
  • The Payment History (HØH) is updated.
  • The P in the YQ field is changed to a C during batch processing, and the CY YTD accumulators are updated.

CY Direct Deposit Callbacks

A direct deposit callback occurs when an agency contacts the Comptroller’s Fiscal Management Division to recall a direct deposit after the direct deposit deadline, but prior to the payment date. This may occur because of death, termination or retirement.

The direct deposit is returned to the Comptroller of Public Accounts, Treasury Operations Division. Fiscal Management then transfers the funds to the proper agency, using T-code 188, PCA 99914, comptroller object 3790 and agency fund 9014.

Before entering the callback in USPS, use the USAS 57 screen, agency fund 9014, to make sure the amount to be recovered is available — otherwise, your payroll will fail for funding.

Use the HPCAN screen, reason code CB1, to process callbacks/returned money in USPS.

Based on a CY payment date, the system allows only a P in the YQ field. This action results in the following:

  • PQTD accumulators on the NY files are reduced by the appropriate amount. This will not affect the NY W‑2 or 941.
  • YTD accumulators on the CY files are reduced by the appropriate amount; the CY W‑2 will reflect the change.
  • PQTD accumulators on the CY files are reduced by the appropriate amount. Rerun fourth-quarter reports to reflect the change.

In addition, on the next final payroll:

  • The funds are transferred from fund 9014, PCA 99914 and comptroller object 3790, using T-code 869R and the net posted to the agency operating fund, using T-code 863R.
  • The callback is updated in USAS via the USPS/USAS Interface.
  • The History (HØH) is updated.
  • T-codes 864R-868R will be generated to reverse deductions.

CY Bank-Returned Money

Bank-returned money occurs when the bank rejects a direct deposit because of an incorrect routing or account number, or because the account has been closed. On the HPCAN screen, bank-returned money can be reversed and reissued for the same amount on the same nightly cycle, without affecting accumulators.

The returned money is returned to the Comptroller of Public Accounts, Treasury Operations Division. The Fiscal Management Division then transfers the funds to the proper agency, using T-code 188, PCA 99914, comptroller object 3790 and agency fund 9014.

Before entering the bank-returned money in USPS, use the USAS 57 screen, agency fund 9014, to make sure the amount to be recovered is available. Otherwise, your payroll will fail for funding.

Use the HPCAN screen, reason code CB1, to enter CY bank-returned money on the NY files. For a reverse/reissue, the system allows only a blank in the YQ field, MC is Ø and TYP is RR. This action will result in the following:

  • CY accumulators will remain unchanged.
  • NY accumulators will remain unchanged.
  • Report 527 will show an out-of-balance between the HØA (tax master file) and the HØN (employee pay history) databases throughout NY. Corrections are not needed.

In addition, on the next final payroll:

  • The funds are transferred from fund 9014, PCA 99914 and comptroller object 3790, using T-code 869R and the net posted to the agency operating fund, using T-code 863R.
  • The return money is updated in USAS via the USPS/USAS Interface.
  • The History (HØH) is updated.
  • T-codes 864R-868R will be generated to reverse deductions.

CY Employee-Returned Money

Employee-returned money occurs when the employee reimburses your agency for an overpayment by making a personal check payable to your agency for the net amount overpaid.

The agency deposits the funds using T-code 188, PCA 99915, comptroller object 3790 and agency fund 9015.

Before entering the employee-returned money on the HTMU1 screen, use the USAS 57 screen, agency fund 9015, to make sure the amount to be recovered is available. Otherwise, your payroll will fail.

Employee-returned money is processed on the HTMU1-U2/ HTMMB screens on the NY files. You must use reason code (REAS) RM to indicate employee-returned money. For more information about how to process returned money, see Chapter 11 “Cancellations & Reversals/Adjustments/Pending File Maintenance” of the USPS Process Guide.

Based on a CY payment date, the system only allows a P in the YQ field. This action results in the following:

  • PQTD accumulators on the NY files are reduced by the appropriate amount. The change will not affect the NY W‑2 or 941.
  • YTD accumulators on the CY files are reduced by the appropriate amount. The CY W‑2 will reflect the change.
  • PQTD accumulators on the CY files are reduced by the appropriate amount. Rerun fourth-quarter reports to reflect the change.

In addition, on the next final payroll:

  • The employee-returned money is transferred from fund 9015, PCA 99915 and comptroller object 3790, using T-code 869R.
  • The net amount returned will post to the agency’s operating fund using T-code 863R.
  • The CY returned monies are updated in USAS via the 2018 USPS/USAS Interface.
  • The History (HØH) is updated.

CY Payments Generated Outside of USPS

Refer to these processes in the CY Warrants Issued Outside of USPS section of this manual.

CY Pretax Deduction Refunds

Enter CY pretax deduction refunds on the HUEUD screen. The result of batch processing is as follows:

  • NY MTD, QTD and YTD for all applicable tax and taxable accumulators will be increased by the appropriate amounts.
  • FIT, OASDI, and HI taxes will be withheld automatically.
  • NY MTD, QTD and YTD for the appropriate deduction will be decreased by the amount entered.
  • A NY warrant for the designated amount will be generated.
  • History (HØH) will be updated.

Note: The CY files will be unaffected by this activity.

CY Post-tax Deduction Refunds

You must enter CY post-tax deduction refunds on the HUEUD screen on the NY files. The result of batch processing is as follows:

  • NY MTD, QTD and YTD net will be increased and the appropriate deduction will be decreased by the corresponding amount.
  • A NY warrant for the designated amount will be generated.
  • History (HØH) will be updated.

Note: The NY files will be unaffected by this activity.

CY Regular Adjustments (+/- with .00 Net)

Adjustments with no net effect are necessary when the deduction amount was correct, but the type was incorrect.

CY regular adjustments using +/- with .00 net can be processed on the appropriate HTMU1-2 or HTOUA screen. Based on a CY payment date, the system will force a P in the YQ field. This action will result in the following:

  • PQTD accumulators on the NY files will be adjusted by the appropriate amount. The change will not affect the NY W‑2 or 941.
  • YTD accumulators on the CY files will be adjusted by the appropriate amount, and the change will be reflected on the employee’s form W‑2.
  • PQTD on the CY files will be adjusted. Rerun fourth-quarter reports to reflect the change.

With the next final payroll:

  • The CY adjustments will be updated in USAS via the USPS/USAS Interface.
  • The History (HØH) will be updated.
  • A Report 3011 will generate. See the Reconciling Report 3011 and Report 527 section of this manual.

Note: This process is only valid until the W‑2s are processed for your agency. Once your W‑2s have processed, adjustments can only be made by the Comptroller’s office. Usually this requires a 941x and a W‑2c.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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